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one year and minor equipment with a useful life of more than one year including IT items such as computers and cell phones.
e. Maintenance Work or Maintenance Services: As defined in California Public Contract Code section 22002, the furnishing of labor, time or effort by a contractor, including but not limited to:
i. Routine recurring, and usual work for the preservation or protection of a publicly owned, or publicly operated facility for intended purposes. ii. Minor repainting.
iii. Resurfacing streets and highways at less than one inch. iv. Landscape maintenance, including mowing, watering, trimming, pruning, planting, replacement of plants, and servicing of irrigation and sprinkler systems; and
v. Work performed to keep, operate and maintain publicly owned water or waste disposal systems.
f. Materials: Basic ingredients in a relatively raw, unrefined, or unmanufactured state, that may be worked into a more finished form (e.g., sand, wood, asphalt). g. Professional Services: Services provided by a person, company, corporation, or firm engaged in a profession based on a generally recognized special knowledge, skill, license, and/or certification to perform the work including, but not limited to, the professions of accountant, auditor, attorney, architect, landscape architect, financial consultant, management consulting, investigative services, construction manager, engineer, environmental consultant, or land surveyor, and whose services are considered distinct and unique.
h. PublicWorks Projects: A public works construction project as defined inCalifornia Public Contract Code section 22002 – “Public works project” means any of the following:
i. Construction, reconstruction, erection, alteration, renovation, improvement, demolition and repair work involving any publicly owned, leased, or operated facility.
ii. Painting or repainting of any publicly owned, leased or operated facility. i. The definition of “public project” does not include maintenance work or maintenance services as defined in Public Contract Code section 22002(d) above. j. Prevailing Wage Requirement for Public Works Projects (Which Includes Maintenance) as Defined in the California Labor Code: Labor Code 1771 provides: “Except for public works projects of one thousand dollars ($1,000) or less, not less than the general prevailing rate of per diem wages for work of a similar character in the locality in which the public work is performed, and not less than the general prevailing rate of per diem 5 5 of 717
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wages for holiday and overtime work fixed as provided in this chapter, shall be paid to all workers employed on public works. This section is applicable only to work performed under contract and is not applicable to work carried out by a public agency with its own forces. This section is applicable to contracts for maintenance work.
The California Code of Regulations 16000 provides the definition of maintenance:
i. Routine, recurring and usual work for the preservation, protection and keeping of any publicly owned or publicly operated facility (plant, building, structure, ground facility, utility system or any real property) for its intended purposes in a safe and continually usable condition for which it has been designed, improved, constructed, altered or repaired.
ii. Carpentry, electrical, plumbing, glazing, [touchup painting,] and other craft work designed to preserve the publicly owned or publicly operated facility in a safe, efficient and continuously usable condition for which it was intended, including repairs, cleaning and other operations on machinery and other equipment permanently attached to the building or realty as fixtures.
a. Exception 1: Janitorial or custodial services of a routine, recurring or usual nature is excluded.
b. Exception 2: Protection of the sort provided by guards, watchmen, or other security forces is excluded.
c. Exception 3: Landscape maintenance. See Public Contract Code Section 21002.
k. Purchase Order (PO): An authorization for an order of goods or services which includes an agreed upon price and scope. A PO is generally issued for a one-time service or one time equipment purchase. A PO is also used to encumber funds for each Fiscal Year for approved, executed contracts. No vendor should begin work or deliver goods without a City-issued PO number.
l. Contract: A written and legally binding agreement between the City and a Contractor/Supplier for provision of services and/or commodities in which there is an offer and acceptance which includes mutual agreement for price, scope and terms and conditions. A contract includes an agreed-upon Scope/Statement of Work, Pricing/Cost, Payment Terms, Insurance/Bond Requirements and Terms and Conditions addressing obligations and liability. The city has approved standard templates that have been approved by the City Attorney’s Office. These templates should be used. Deviations from the standard contract templates must be approved by the City’s legal team.
m. Contract Requirements by Purchase Type: A written contract is required for all purchases over $10,000, with the following exception:
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• Goods and Commodities (supplies, materials, tools, minor equipment, off-theshelf, catalog, or stock items) a written contract is required for purchases over $30,000. For goods purchases at or below $30,000, a City-issued Purchase Order with the City's standard terms and conditions serves as the binding agreement.
For all other purchase types, the $10,000 contract threshold applies regardless of dollar amount:
• Services (general and professional) a written contract required at $10,000 and above.
• Software, SaaS, and technology a written contract or City Attorney-reviewed vendor agreement required at $10,000 and above.
• Public works and construction a written contract required at any dollar amount per CUPCCAA and California law.
In all cases, a Purchase Order is required before goods are delivered or services commence for purchases over $10,000. Vendor signature on the contract must be obtained before any City official signs.
n. Contract Term: Contract term/length should be stated in the contract. Generally multiyear contracts should not exceed five years and may be established for a 3-year initial term with two one-year optional renewal years. However, there may be instances when a contract may extend beyond five years.
o. Contract Contingency: Contract contingency is an allowance with required approvals, of a potential need to increase a contract. A Contract contingency may be requested at the same time as the initial contract approval and may range between 10-20% depending on the nature of the services/project. Utilizing an approved contract contingency requires an approved Requisition, a Purchase Change Order and a Contract Amendment to increase the contract not to exceed amount. p. Exceptions to Standard Terms and Conditions: Contractors on occasion may request to negotiate the City’s standard contract terms which would require the review/approval of the City’s legal team, Risk Management and/or City Council. q. Responsible Bidder: A bidder or proposer who has demonstrated capability, required resources, fitness, capacity, and experience to satisfactorily perform services and/or provide commodities that meet the scope of work and/or specifications. Before contract award, Departments will verify contractor’s references, check System of Award (SAM) https://sam.gov, for potential exclusions, and verify required licensing, ownership and business status.
r. Supplies: Goods utilized in the ordinary course of business for regular use or consumption normally within one year (e.g., pencils, light bulbs, street signs). s. Small Dollar Purchase: A small dollar purchase is a low risk, one-time service or 7 7 of 717
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commodity costing $10,000 or less. This does not include ongoing contractual services or capital projects and/or capital assets.
t. Small Dollar Purchase Procedure: One quote is required for purchases under $10,000.
Small Dollar Purchases may be purchased using Purchase Order (PO) but a PO is not required. P-Cards may be utilized for small dollar purchases which do not exceed the P-Card policy thresholds and meet the Policy criteria.
u. Informal Quote Procedure: The informal quote procedure provides a cost-effective process for canvassing the marketplace to identify contractors capable of providing appropriate goods or services at a reasonable price. Under the informal quote procedure, the requestor solicits written or emailed quotations from a minimum of three contractors. The goods or services are awarded to a vendor offering the lowest price and highest quality. Exceptions to policy require justification in the requisition and required approvals.
v. Formal Solicitation Procedures: The formal solicitation procedure is to be used primarily for large dollar Capital Asset/Equip and Services (over $100,000 and over $220,000 for Construction Projects) and requires the use of competitive solicitation whereby the requestor issues a public notice soliciting formal written bids or proposals. Under this procedure, bids shall be solicited through the issuance of an Invitation for Bid (IFB) or a Request for Proposals (RFP) through the City’s electronic public bidding platform.
1. An IFB is utilized when the service or commodity can be specifically defined and fixed rates/prices are obtained, evaluated and an award is granted to the lowest, responsible bidder.
2. An RFP is utilized when the service or commodity is not as specific yet there is a clear objective/goal allowing proposers to present new technologies, new products and innovative service solutions. RFP Proposals are evaluated by a panel using pre-determined criteria resulting in an award to the most qualified, responsible proposer.
3. Bid Protest. Bidders/Proposers have a right to protest a Bid or RFP. The protest may be related to the bid process or specifications, or it may be related to the bid award. The protester must submit a timely protest in compliance with the bid or RFP protest deadlines. Protests received after the deadline will not be considered. The protest must be in writing and must include the reason for the protest and the details. It should also include the protestors requested resolution. City staff will pause the solicitation, review the protest and respond to the protestor with either a denial or acceptance and an action to resolve. If the protest is deemed valid, it may result in issuance of an addendum or a rebid. For protests that cannot be resolved at a City staff level, Departments should consult City Attorneys for guidance.
w. Order Splitting: The intentional division of a single purchase into smaller increments to avoid competitive bidding requirements or approval thresholds. Order splitting is 8 8 of 717
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strictly prohibited. The threshold level is based on the total anticipated value over the full contract term.
x. Requisition: A formal internal request in the City's ERP system to initiate the procurement process. Requisitions must include supporting documentation (quotes, scope of work, specifications) and all required approvals before a PO is issued.
Section A: Purchasing Authority
1. Purchase requisitions must have advanced approvals before receiving goods or services. A requisition should be submitted for approvals in advance. Once approved, a requisition is converted to a PO in the ERP system.
2. Capital Asset Purchases (Equip/Vehicles exceeding $10,000)must be approved through the Budget process and assigned a Capital Asset Budget Sequence Number. Assets with an assigned Sequence Number may be procured in accordance with the Purchasing Policy solicitation requirements, not requiring additional City Council approvals.
3. Approval Levels: The approval levels and bid requirements for all purchasing of goods, materials, supplies, equipment, maintenance work, general services and professional services and construction (non-CUPCCAA) are as follows:
Level Amount Competition Contract / PO Required Approval Level 1 Under
$10,000
1 quote.
Document
vendor, date,
price.
PO not required. P-Card
OK.
Department
Director (DD)
Level 2 $10,000 –
$30,000
3 written
quotes.
Contract and PO are
required for all purchases
over $10,000.
Exception.
Goods and Commodities:
PO *acceptable.
Contract required for
Goods, Materials, and
Supplies over $30,000.
Department
Director (DD)
Level 3 $30,001 –
$100,000
3 quotes or
Formal
Solicitation
process
(IFB or RFP).
Contract and PO are
required for ALL
purchases at this level.
DD + City Manager
Exceptions: If entirely
reimbursable by a third
party (e.g. CEQA, Wireless
Application review) City
Manager may Authorize up
to $200,000. Written
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*The City Manager, City Attorney, or Procurement Officer may require a written contract at any dollar amount when deemed necessary based on the nature of the purchase, risk considerations, legal requirements, or the best interests of the City.
Determining the Correct Threshold: The threshold level is determined by the total anticipated value of the purchase over the full contract term — not the first-year or per-unit cost. Example: a service costing $20,000/year over a 2-year agreement = $40,000 total → Level 3 applies
Contract Amendment – Increases: Commodity contract increases may be approved by Department Director for no more than 20% over the life of the contract without resolicitation. Service contract increases may be approved by the Department Director by nomore than 10%. Contract increases require an approved requisition with justification for the requested increase and an executed contract amendment. Contract increases exceeding 20% (commodity) and 10% (service) over the life of the contract may require re-solicitation and/or re-approvals in accordance with Purchasing Policy threshold requirements.
Contract Amendment – Administrative Change An administrative non-material change may be made to contracts with the approval of the Department Director. Administrative amendments require an approved requisition and an executed contract amendment.
Contract Amendment – Scope of Work Change - A contract amendment which materially impacts the original scope of work may require formal solicitation or informal quotes. Material changes to a contract Scope of Work require an approved requisition, Department Director and City Manager approval as well as an executed contract amendment.
Section B: General Purchasing Procedures
1. Purchase Requisition (REQ). Except as otherwise permitted herein, a formal purchase requisition, approved by the requesting Department Head, Finance Manager, Procurement Officer and City Manager (if applicable) is required in advance for all purchases greater than
$10,000, and for regular and recurring goods and services, regardless of the dollar amount reimbursement agreement
must be on file.
Budgeted Public Works
Projects under $75,000 may
be authorized by DD.
Level 4 Over
$100,00
Formal IFB or
RFP via
eProcurement.
Contract and PO are
required for ALL purchase
types at before ordering.
DD + CM + City Council
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when a contractor asks for a purchase order to be issued. Additionally, a requisition is mandatory for Capital Asset/Capital Outlay purchases (equipment over $10,000), vehicle purchases, and software subscription purchases. Quotes or Bids, Scope of Work or Specifications must accompany the request.
2. Purchase Orders (PO). A purchase order is generated after the purchase requisition and contract (if applicable). Approval of a PO and/or Contract is required before ordering supplies and services. POs are issued via electronic workflow and can only be created by the Procurement Officer, Director of Finance or their designees. POs are also created to encumber funds against a Contract. POs (except Capital Improvement Projects (CIP) and Utility Undergrounding projects) are closed out at the end of each fiscal year.
3. Retroactive Purchase (Retro): Ordering goods or services without advance approval of either the Department Director (for purchases under $10,000) or without an approved Purchase Requisition (for purchases over $10,000), is considered a Retroactive Purchase and is a violation of the City’s Purchasing Ordinance and Purchasing Policy. Retroactive Purchases require a Purchase Requisition with a memo explaining the circumstances and the corrective action taken to avoid recurrence. (under $10,000 requires Department Director approval and over $10,000 requires City Manager approval).
4. Petty Cash Purchases. The purpose of a petty cash procedure and policy (Reference Petty Cash Policy) is to support “day-to-day” small immediate demands of departments that cannot be met through other established procedures for obtaining required materials. These demands are generated for items that are within the goals and objectives of the department and are provided for in the department’s operating budget.
Departments with a petty cash fund and should use it for minor purchases of up to $200.00 when buying from uncommon sources or vendors unwilling to establish a credit account with the City. Departments should submit their petty cash expenditures for reimbursement. The Finance
Department periodically audits each Department's petty cash fund. Petty Cash use must be in compliance with the Petty Cash Policy.
Section C: Solicitation Process
The City of Laguna Beach follows a decentralized purchasing system which gives authority to Departments to request quotes, conduct formal solicitations (IFB or RFP) and negotiate best value and pricing for the City. Quotes or solicitation documentation should be included in the Purchasing Requisition. The following is an outline of the solicitation process. Quotes or solicitation award documentation should be included in the Purchasing Requisition (ERP System).
1. Solicitation Documents
a. An Invitation for Bids (IFB) is utilized for procurement of Goods, Materials, Equipment and Services exceeding $100,000 that can be clearly defined in a detailed Scope of 11 11 of 717
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Work or Specification. Bids are evaluated and awarded to the lowest responsible bidder.
b. A Request for Proposal (RFP) is utilized when the service or commodity exceeding $100,000 is not as specific but instead, there is a clear objective/goal allowing proposers to present new technologies, new products and innovative service solutions. RFP Proposals are evaluated by an evaluation panel (3-5 subject matter experts which may include City staff) using pre-determined criteria and scoring resulting in an award to the most qualified, responsible proposer. c. Departments may achieve efficiency by soliciting for On Call Contracts and/or PreQualified provider contractors to include a variety of services for construction trades and consulting services. These contracts must be established through the required solicitation and approval processes and should not exceed 5 years without resolicitation. The terms, scope, pricing and not to exceed amount must be stated in the contract. Once in place, these can be used for ongoing service needs.
Departments shall obtain 3 quotes from On Call contractors and award to the lowest responsive, responsible proposer who can timely complete the work pursuant to the request for the quote. Departments must ensure compliance with scope and pricing throughout the term and use of the contract.
d. The Department shall prepare a Scope of Work and/or Bid Specifications and submit the Invitation for Bid (IFB) on the City’s electronic bidding platform. The Department must make efforts to notify all prospective bidders of the bid opportunity. e. Bids are received Electronically via the eProcurement platform and are not viewable until the bidding deadline has closed.
f. The person or department initiating the purchase shall keep a record of all such solicitations and the price quotes or proposals submitted in response thereto. g. If the person or department initiating the purchase is unable to obtain three price quotes or proposals from responsible bidders or proposers after making diligent efforts to do so, the purchase may be made without obtaining three price quotes or proposals, provided that the efforts made to obtain three quotes or proposals shall be documented in the contract file for the purchase and/or documented on the Procurement Cover Sheet.
h. Nothing herein shall preclude the City from requiring a Formal Solicitation if deemed to be in the best interest of the City.
2. Bid or Proposal Evaluation
a. The City may reject any or all bids or proposals in response to a city solicitation in its sole discretion. Justification of rejection should be recorded and communicated to the proposer as a professional courtesy and to maintain good vendor relationships
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b. If no bids or proposals are received, the city may make the purchase by any lawful reasonable and available means, notwithstanding the other requirements of this chapter.
c. If two or more bids or proposals received are for the same total amount or unit price, quality and service being equal, the contract may be awarded to either bidder or proposer.
3. Awarding Contracts
a. Invitation for Bids (IFBs) shall be awarded to the responsible proposer submitting the lowest responsive bid
b. Request for Proposals (RFPs) shall be awarded based on demonstrated competence and the professional qualifications necessary for the satisfactory performance of the service, offered at a fair and reasonable price. c. Contract Templates approved by the City Attorney’s Office must be used.
Exceptions to standard City Terms and Conditions must be approved by the City Attorney’s office.
d. Upon final approval of a contract, the following contract signature authorities apply:
i. Vendor signatures shall be obtained first. Departments must confirm the authorized signatures depending on the company’s organization. ii. Under $30,000 Department Head may sign/execute on behalf of City. iii. Over $30,000 CityManager will sign and if applicable (City Attorney reviewed/approved exceptions to terms), the City Attorney will also sign. iv. Contracts that have City Attorney approved exceptions to standard terms or insurance and Contracts that require City Council approvals, will be signed by the City Manager, City Attorney and City Clerk.
v. All executed contracts must be filed with the City Clerk’s Office to create a record and assign a contact/agreement number. Final executed contracts should be provided to the Purchasing Officer to enter into the ERP System.
4. Purchasing Approval Involving Personal Relationships No City employee shall approve, recommend, authorize, or otherwise participate in the selection, award, negotiation, or administration of any contract, purchase order, or agreement in which they have a personal relationship with any counterparty. For purposes of this prohibition, “personal relationship” means a person related by blood, adoption, current or former marriage, domestic partnership or cohabitation. Cohabitation means living with another person while in a romantic relationship without being married or in a domestic partnership 13 13 of 717
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If such a relationship exists, the City employee acting as the approving authority shall immediately disclose the relationship in writing and recuse themselves from all related discussions, decisions, and approvals and elevate the approval to the next level of approval authority.
Section D: Public Projects – Public Works Projects or “Construction Services” California Uniform Public Construction Cost Accounting Act. The City has adopted the Uniform Public Construction Cost Accounting Act (Pub. Cont. Code section 22000 et seq., as may be amended) (the “Act”) and all expenditures for Public Projects, as defined by Public Contract Code section 22002, by the City shall be made in accordance with the Act.
1. Solicitation Procedures. The Department initiating the purchase shall make a reasonable and good faith estimate of the anticipated cost of the project and utilize the appropriate solicitation procedure below. Purchases shall not be split or separated into smaller orders for the purpose of circumventing policy requirements. a. No Competitive Solicitation Required. Public Projects with an estimated cost of $75,000 or less (or as such limit may be amended from time to time) may be performed by City employees by force account or else may be awarded by negotiated contract or by purchase order without competitive bidding. b. Informal Bid Required. Public Projects over $75,000 but not more than $220,000, require either the informal bid procedures set forth herein or the formal solicitation procedures set forth herein.
c. Formal Bidding Required. Public Projects exceeding $220,000 require formal solicitation procedures set forth herein.
d. Informal Bid Procedures. A notice inviting bids shall be prepared, which describes the project in general terms, explains how to obtain more detailed information about the project, and states the time and place for the submission of bids. The notice shall be sent to all contractors for the category of work to be bid, as shown on the list developed in accordance with this section, and to all construction trade journals as specified by the California Uniform Public Construction Cost Accounting Commission ("Commission"), in accordance with Public Contract Code Section 22036, including any amendment thereto. Note: Informal Bidding Procedures do not require publication.
Notices sent to contractors on the contractors list shall be sent not less than ten (10) calendar days before bids are due and may be sent by mail, fax, or email.
Additional contractors and/or construction trade journals may be notified at the discretion of the department soliciting bids, provided, however:
i. If there is no list of qualified contractors maintained by the City for the particular category of work to be performed, the notice inviting bids shall 14 14 of 717
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be sent only to the construction trade journals specified by the Commission.
ii. If the product or service is proprietary in nature such that it can be obtained only from a certain contractor or contractors, the notice inviting informal bids may be sent exclusively to such contractor or contractors. e. Formal Bid Procedures. A notice inviting bids shall be prepared, which describes the project in general terms, explains how to obtain more detailed information about the project, and states the time and place for the submission of bids. The notice shall be published at least fourteen (14) calendar days before the date of opening the bids in a newspaper of general circulation, printed and published in the City; or, if there is no newspaper printed and published in the City, in a newspaper of general circulation which is circulated within the City; or, if there is no newspaper which is circulated within the City, publication shall be by posting the notice in at least three places within the City as have been designated by ordinance or regulation of the City as places for the posting of its notices.
The notice inviting formal bids shall also be sent electronically, if available, by either fax or email and mailed to all construction trade journals specified by the Commission pursuant to Public Contract Code Section 22036. The notice shall be sent at least fifteen
(15) calendar days before the date of opening the bids. In addition to notice required by this section, the City may give such other notice as it deems proper.
2. Contractors List. The City shall develop and maintain a list of contractors in accordance with the provisions of Public Contract Code Section 22034 and criteria promulgated from time to time by the Commission.
3. Bidder’s Security. All hard copy or electronic bids shall be presented under sealed cover accompanied by one of the following forms of bidder’s security: (a) cash; (b) cashier’s check made payable to the City; or (c) a bidder’s bond executed by an admitted surety insurer made payable to the City. Such security shall be an amount equal to at least ten percent (10%) of the bid amount. No bid shall be considered unless security in the form above set forth is enclosed with the bid.
4. Award of Contract. If a contract is awarded, it shall be awarded to the responsible bidder submitting the lowest responsive bid. If two or more bids are the same and the lowest, the contract may be awarded to either bidder.
a. If the project was bid using informal bidding procedures, and all bids received exceed two hundred twenty thousand dollars ($220,000), as such limit may be amended from time to time, the City Council may, by adoption of a resolution by a four-fifths vote, award the contract to the lowest responsive and responsible bidder if the amount of the contract does not exceed two hundred thirty five hundred dollars ($235,000), as such limit may be amended from time to time, and it determines the 15 15 of 717
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City’s cost estimate for the project was reasonable. Otherwise, the project shall be re-bid following the formal bidding procedures.
b. In its discretion, the City may reject any or all bids, and may do any of the following:
i. Abandon the project.
ii. Re-advertise for bids in the manner described herein. iii. By a four-fifths vote, the City Council may declare by resolution that the project can be performed more economically by City employees and may have the project done by force account without further complying with this chapter. Prior to rejecting all bids and declaring that the project can be more economically performed by City employees, the City shall furnish a written notice to an apparent low bidder, informing the bidder of the City's intention to reject the bid. Such written notice shall be mailed at least two (2) business days prior to the hearing at which the City intends to reject the bid.
5. If no bids are received through the formal or informal bidding procedure, the projectmay be performed by City employees by force account or by a negotiated contract without further complying with this Policy.
6. Contractor Name/Ownership Change: In the event of a contractor name and/or ownership change, a contract amendment will be required. Assignments (ownership change) must be reviewed by the City Attorney, and the new contractor/owner must be vetted by the City Department and verified to be in good standing and qualified to perform the contract services.
7. Public Works Projects or “Construction Services” approval levels that meet the definition of California Uniform Public Construction Cost Accounting Act (CUPCCAA) have the following approval levels:
Change Order and Amendments: Approval authority limits shall be based on the total contract amount inclusive of any change orders or amendments. If a contract increase Level Amount Competition Contract / PO Required
Level 1 –
CUPCCA
Under $75,000 No competitive bid
required. 1 quote +
contract required (always
required for public works).
Dept Director
Level 2 –
CUPCCA
$75,001 –
$220,000
Informal bid (3 quotes,
10-day notice) or formal
solicitation + contract
required.
Dept Director + City
Manager
Level 3 –
CUPCCA
Over $220,000 Formal solicitation (IFB or
RFP) + contract required.
Dept Director + CM + City
Council
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results in an aggregate contract amount which exceeds the authority level of the initial contract approval, the change order or amendment must be approved by the appropriate authority in accordance with the levels above.
Contract Contingency: Department Director may request City Council approval of a contract contingency at the time of contract approval. Contingency requests may range from 10-20%based on the type of service and/or project. Use of contingency amounts will require a Purchase Requisition and a Contract Change Order/Amendment but will not require reapproval from Council.
Section E: Exceptions to Competitive Purchasing Requirements The exceptions to competitive solicitation requirements are pursuant to ordinance 2.30.050, but approvals levels still apply. All exceptions require documented written justification in the requisition.
1. No Competitive Advantage. When the City Manager or City Council determine that no price advantage would be gained from a competitive solicitation process.
2. Commodities. On an annual basis, the City Council will approve a list of commodities that are not readily adaptable to the open-market bid, Request for Proposals, or competitive bid processes and should therefore be exempt from the competitive bidding requirements of these Guidelines. Examples may include, but are not limited to, fuel, sand, rocks, lumber, mulch, and trees. Any approved commodities will be eligible for purchase after procuring three (3) quotes upon the review and approval of the Procurement Officer, so long as purchases fall within the approved budgets in the Fiscal Year Operating Budget.
3. Miscellaneous expenditures. Specific services are excluded from the requirements in this policy, such as employee benefit payments, insurance policy premiums, the purchase or lease of real property, unilateral services such as postage, required licenses, utilities and/or required government fees and payments to other government agencies.
4. Pass -Through Agency. When the City receives Federal, State, or County grantmonies as a pass-through agency. This includes situations where the City is a fiscal agent, receiving funds on behalf of a separate entity.
5. Payments to Contract Instructors. When the City provides payment to a contract instructor for a recreation class where the payment is based on participant registration.
6. Sole Source. Sole Source purchases over $10,000 require City Manager or City Council approvals. This is appropriate when the Department Director determines that there is only one source that provides the needed services, supplies, or equipment or to ensure compatibility with other city products and equipment. The Department must provide 17 17 of 717
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justification and shall procure these items in the best interest of the city. The Purchase Requisition should provide justification for the Sole Source request. Instances when sole source procurement may be necessary:
a. The goods or service is available from only one vendor. b. To match existing products in use to ensure compatibility. c. In order that a field test or experiment may be made to determine a product’s suitability for future use.
d. Competition is deemed inadequate after soliciting a number of sources. e. Vendor holds a unique set of skills or expertise that makes it impossible/unlikely anyone else can do the work or the same quality of work.
f. Product or service is Proprietary, and vendors can provide Proprietary Affidavit.
Note: Cost, convenience, and vendor preference are NOT valid sole-source justifications.
7. Cooperative Contracting: Departments may save time and money by utilizing (piggybacking) on contracts that have been solicited by other Public Agencies or Procurement Cooperative Partners (Omnia, NASPO, Sourcewell, etc.) if the solicitation methods meet the City’s solicitation requirements. Department Directors, City Procurement Officer and the City Legal Counsel will review Cooperative Agreements to verify pricing is competitive, purchasing policy requirements have been met and terms and conditions are agreeable. Cooperative Contracts require approvals in accordance with dollar thresholds listed in this Policy. Cooperative Agreements much adhere to the following requirements:
a. The competitive bidding source contract must still be in effect. b. The source contract must not preclude the City fromusing it as an agreement for cooperative purchasing.
c. The awarding jurisdiction for the source contract must be either the federal government, a State within the United States of America, or a county or city within the United States of America. ▪ Examples of nationally recognized purchasing cooperatives include, but are not limited to, California Multiple Award Schedule (CMAS); National Association of State Procurement Officers (NASPO) ValuePoint; the Department of General Services (DGS); OMNIA Partners (formerly U.S.
Communities Cooperative Purchasing); Sourcewell (formerly National Joint Powers Alliance); and federal General Services Agency (GSA) procurements. d. The prospective vendor making a proposal to the City must be the same vendor 18 18 of 717
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that was awarded the source contract. It is insufficient for the prospective vendor to be a partner supplier or authorized re-seller under the source contract vendor. e. The scope of work and/or goods delivered in the source contract must be the same as (or substantially similar to) the scope of work and/or goods requested by the City.
f. The prospective vendor must extend to the City the same terms and conditions as (or terms more favorable to the City than) those in the initial contract. g. City Attorney must approve agreements related to the Cooperative purchase.
8. Emergency. Where an emergency situation exists, or where a disaster has been declared by the City Council, State or Federal government, such that the life, health or safety of employees or the general public is at risk, or when significant harm may occur to city property or operating systems and goods and/or services must be procured immediately to prevent loss or substantial disruption of city services or functions; provided that competitive bidding is not required by a state or federal reimbursing agency and is otherwise consistent with State law.
9. Mandated Expenditures. When expenditures are mandated by law or regulation, such as county booking fees, utilities, postage, waste disposal fees or other non-negotiable permit, use or application fees.
10. Non-Traditional Procurements. Certain goods and services are acquired in a specific manner (through methods and/or from sources) that may meet the “best quality and value” standards outside of the open, competitive market. Examples of such nontraditional procurements include goods purchased through public auction, closeout sale, bankruptcy sale, or other similar sale, where the purchase at any such auction or sale is made at a cost below the market cost.; goods obtained as part of an exchange that is not a sale or auction. goods produced by the California Prison Industry (CALPIA).
11. Best Interest of City. When the City Manager determines that bidding would be impractical, inefficient, or otherwise not in the best interest of the city, provided that contract file contains sufficient documentation to justify bid impracticality.
Section F: General Purchasing Guidelines
1. Record Keeping. The Finance Department is responsible for maintenance of purchasing records.
2. Receiving Goods/Equipment
a. Inspection and Testing. All goods procured by the City shall be subject to inspection and/or testing upon receipt or completion by the Department receiving the product to ensure conformance with the specifications set forth in the order. If 19 19 of 717
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a product fails to meet specifications, it shall be identified as "on hold pending rejection," and a notification shall be forwarded to the Finance Department. If a product is determined to be unusable, it shall be rejected and returned to the vendor as the vendor directs, and at their expense, for credit or replacement. Items found not to specifications, but of limited usability, may be conditionally accepted but only after renegotiation of the original contract.
b. Acceptance. When goods have been received or a project has been completed to the satisfaction of the ordering Department and the specifications, the packing slip and/or other completion documentation shall be signed off by the receiver/inspector. Information to be noted in the documents must include, as a minimum, the acceptor’s signature and a legible rendering of their name and the date of receipt/completion. Any deviation from the exact ordering specifications must be noted on the receiving/acceptance documents.
3. Contractor Performance Departments are responsible for monitoring contractor performance and immediately address deficiencies or deviations from the Scope of Work or Pricing. If after formal notice, deficiencies are not resolved, Departments should involve the Procurement Officer to determine if a formal Notice to Cure is necessary. If a Notice to Cure is unsuccessful in resolving deficiencies, the Procurement Officer and Legal Team will review and determine if a breach of contract exists and if termination of the contract is necessary. All performance efficiencies should be documented by the Department.
Section G: State or Federally Funded Projects and Procurements. State or federally funded purchase requests must follow the funding agencies Purchasing Policy and in certain cases, specific Contract Terms must be added to the contract. Due diligence must be followed to ensure the funding agency purchasing policy is applied. For purchases funded in whole or in part by federal grants, the following additional requirements apply under 2 CFR Part 200 (Uniform Guidance):
• Full and open competition is required. The micro-purchase threshold is $10,000; simplified acquisition threshold is $250,000 (subject to annual OMB adjustment). • For sole-source or single-bid situations under federal grants, a written cost or price analysis is required in the procurement file.
• Departments must verify the vendor is not on the SAM.gov exclusion list before awarding any federally funded contract.
• Buy American and Davis-Bacon Act requirements apply to federally funded construction projects.
Section H: Exemptions from Purchasing Policy.
The following expenditure types are exempt from the competitive bidding, Purchase Order, and contract requirements of this policy and may be processed directly for payment upon receipt of a 20 20 of 717
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proper invoice with Department Director approval, provided funds are available in the approved departmental budget:
• Memberships and professional dues (e.g., League of California Cities, MMASC, and other professional or governmental associations)
• Legal fees and outside counsel authorized by the City Attorney • Employee benefit payments (health, dental, vision, life insurance, and retirement contributions) • Utilities (electric, gas, water, sewer, telecommunications) • City insurance premiums and risk pool contributions
• Postage and postal meter replenishment
• Required permits, licenses, and fees mandated by law or regulation at a set, non-negotiable rate payable to a governmental or regulatory agency
Exemption from purchasing procedures does not exempt these expenditures from the City's standard invoice approval and accounts payable processes. When in doubt whether an expenditure qualifies for this exemption, departments should contact the Procurement Officer prior to processing payment.
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Last Rev. 06-2026
PURCHASING POLICY AND PROCEDURES
PURPOSE: This document defines the policies and procedures for the purchase of supplies, equipment and services for the City of Laguna Beach, and is in conformance with the requirements of Federal and State law, Laguna Beach Municipal Code (“LBMC”) Chapter 2.30. In the event of any conflict between this Purchasing Policy and the LBMC or Federal and State law, the LBMC and Federal and State law shall govern. The City’s purchasing philosophy is to ensure fiscal stability and efficiency in governance through the procurement of goods, services, and public projects at the best quality and value in an open and competitive market. The City strongly encourages broad participation in the procurement process.
This policy applies to all City departments, officers, and employees involved in any procurement activity, including purchases made using grants or federal/state financial assistance. When federal or state funding agency requirements are more restrictive than this policy, the more restrictive requirement governs.
GENERAL POLICY:
Responsibilities:
The Departments are responsible for following proper policies and procedures as laid out in this Purchasing Policy. The Director of Finance shall be responsible for recommending additions, deletions and amendments to the City of Laguna Beach Purchasing Policy.
Definitions:
The following definitions apply throughout this policy. a. Emergency: A sudden, unexpected occurrence that poses a clear and imminent danger, requiring immediate action to prevent or mitigate the loss or impairment of life, health, property, or essential public services.
b. General Services: Furnishing of labor, time, or effort by a contractor for services as the city may, from time to time, find necessary and proper for the functioning of the City. Examples include, but are not limited to, janitorial, uniform cleaning and other services which do not require any unique skill, special background or training. c. Capital Asset: Equipment, Machinery, and/or Vehicles costing more than $10,000 with a useful life greater than one year which require reporting, tagging and tracking as well as calculating and recording depreciation
d. Commodities: Supplies, materials tools and minor equipment typically consumed within one year and minor equipment with a useful life of more than one year including IT items such as Attachment 2
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computers and cell phones.
e. Maintenance Work or Maintenance Services: As defined in California Public Contract Code section 22002, the furnishing of labor, time or effort by a contractor, including but not limited to::
i. Routine recurring, and usual work for the preservation or protection of a publicly owned, or publicly operated facility for intended purposes. ii. Minor repainting.
i.iii. Resurfacing streets and highways at less than one inch. ii.iv.Landscape maintenance, including mowing, watering, trimming, pruning, planting, replacement of plants, and servicing of irrigation and sprinkler systems; and
iii.v.Work performed to keep, operate and maintain publicly owned water or waste disposal systems.
f. Materials: Basic ingredients in a relatively raw, unrefined, or unmanufactured state, that may be worked into a more finished form (e.g., sand, wood, asphalt). g. Professional Services: Services provided by a person, company, corporation, or firm engaged in a profession based on a generally recognized special knowledge, skill, license, and/or certification to perform the work including, but not limited to, the professions of accountant, auditor, attorney, architect, landscape architect, financial consultant, management consulting, investigative services, construction manager, engineer, environmental consultant, or land surveyor, and whose services are considered distinct and unique.
h. Public Works Projects: A public works construction project as defined in California Public Contract Code section 22002 – “Public works project” means any of the following:
i. Construction, reconstruction, erection, alteration, renovation, improvement, demolition and repair work involving any publicly owned, leased, or operated facility.
ii. Painting or repainting of any publicly owned, leased or operated facility. j.i. The definition of “public project” does not include maintenance work or maintenance services as defined in Public Contract Code section 22002(d) above. k.j. Prevailing Wage Requirement for Public Works Projects (Which Includes Maintenance) as Defined in the California Labor Code: Labor Code 1771 provides: “Except for public works projects of one thousand dollars ($1,000) or less, not less than the general prevailing rate of per diem wages for work of a similar character in the locality in which the public work is performed, and not less than the general prevailing rate of per diem wages for holiday and overtime work fixed as provided in this chapter, shall be paid to all workers employed on public 23 23 of 717
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works. This section is applicable only to work performed under contract and is not applicable to work carried out by a public agency with its own forces. This section is applicable to contracts for maintenance work.
The California Code of Regulations 16000 provides the definition of maintenance:
i. Routine, recurring and usual work for the preservation, protection and keeping of any publicly owned or publicly operated facility (plant, building, structure, ground facility, utility system or any real property) for its intended purposes in a safe and continually usable condition for which it has been designed, improved, constructed, altered or repaired.
ii. Carpentry, electrical, plumbing, glazing, [touchup painting,] and other craft work designed to preserve the publicly owned or publicly operated facility in a safe, efficient and continuously usable condition for which it was intended, including repairs, cleaning and other operations on machinery and other equipment permanently attached to the building or realty as fixtures. a. Exception 1: Janitorial or custodial services of a routine, recurring or usual nature is excluded.
b. Exception 2: Protection of the sort provided by guards, watchmen, or other security forces is excluded.
c. Exception 3: Landscape maintenance. See Public Contract Code Section 21002.
k. Purchase Order (PO): An authorization for an order of goods or services which includes an agreed upon price and scope. A PO is generally issued for a one-time service or one time equipment purchase. A PO is also used to encumber funds for each Fiscal Year for approved, executed contracts. No vendor should begin work or deliver goods without a Cityissued PO number. l.
l. Contract: A written and legally binding agreement between the City and a Contractor/Supplier for provision of services and/or commodities in which there is an offer and acceptance which includes mutual agreement for price, scope and terms and conditions.
A contract includes an agreed-upon Scope/Statement of Work, Pricing/Cost, Payment Terms, Insurance/Bond Requirements and Terms and Conditions addressing obligations and liability. The city has approved standard templates that have been approved by the City Attorney’s Office. These templates should be used. Deviations from the standard contract templates must be approved by the City’s legal team. All purchases in excess of $10,000 require a contract.
m. Contract Requirements by Purchase Type: A written contract is required for all purchases over $10,000, with the following exception:
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Goods and Commodities (supplies, materials, tools, minor equipment, off-the-shelf, catalog, or stock items) a written contract is required for purchases over $30,000. For goods purchases at or below $30,000, a City-issued Purchase Order with the City's standard terms and conditions serves as the binding agreement.
For all other purchase types, the $10,000 contract threshold applies regardless of dollar amount: Services (general and professional) a written contract required at $10,000 and above. Software, SaaS, and technology a written contract or City Attorney-reviewed vendor agreement required at $10,000 and above. Public works and construction a written contract required at any dollar amount per CUPCCAA and California law.
m. In all cases, a Purchase Order is required before goods are delivered or services commence for purchases over $10,000. Vendor signature on the contract must be obtained before any City official signs.
n. Contract Term: Contract term/length should be stated in the contract. Generally multi-year contracts should not exceed five years and may be established for a 3-year initial 25 25 of 717
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n. term with two one-year optional renewal years. However, there may be instances when a contract may extend beyond five years.
o. Contract Contingency: Contract contingency is an allowance with required approvals, of a potential need to increase a contract. A Contract contingency may be requested at the same time as the initial contract approval and may range between 10-20% depending on the nature of the services/project. Utilizing an approved contract contingency requires an approved Requisition, a Purchase Change Order and a Contract Amendment to increase the contract not to exceed amount.
p. Exceptions to Standard Terms and Conditions: Contractors on occasion may request to negotiate the City’s standard contract terms which would require the review/approval of the City’s legal team, Risk Management and/or City Council. q. Responsible Bidder: A bidder or proposer who has demonstrated capability, required resources, fitness, capacity, and experience to satisfactorily perform services and/or provide commodities that meet the scope of work and/or specifications. Before contract award, Departments will verify contractor’s references, check System of Award (SAM) https://sam.gov, for potential exclusions, and verify required licensing, ownership and business status.
r. Supplies: Goods utilized in the ordinary course of business for regular use or consumption normally within one year (e.g., pencils, light bulbs, street signs). s. Small Dollar Purchase: A small dollar purchase is a low risk, one-time service or commodity costing $10,000 or less. This does not include ongoing contractual services or capital projects and/or capital assets.
t. Small Dollar Purchase Procedure: One quote is required for purchases under $10,000. Small Dollar Purchases may be purchased using Purchase Order (PO) but a PO is not required.
P-Cards may be utilized for small dollar purchases which do not exceed the P-Card policy thresholds and meet the Policy criteria.
u. Informal Quote Procedure: The informal quote procedure provides a cost-effective process for canvassing the marketplace to identify contractors capable of providing appropriate goods or services at a reasonable price. Under the informal quote procedure, the requestor solicits written or emailed quotations from a minimum of three contractors. The goods or services are awarded to a vendor offering the lowest price and highest quality. Exceptions to policy require justification in the requisition and required approvals. v. Formal Solicitation Procedures: The formal solicitation procedure is to be used primarily for Commented [EP1]: PW Request: The draft states that awards go to a responsible vendor with the lowest price. Public Works recommends revising this language to better align with the Municipal Code, which references both the lowest price and highest quality of goods and services available. Award decisions should allow consideration of relevant factors beyond cost, including quality, qualifications, responsiveness, experience, service level, availability, and overall value to the City.
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large dollar Capital Asset/Equip and Services (over $100,000 and over $220,000 for Construction Projects) and requires the use of competitive solicitation 27 27 of 717
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v. whereby the requestor issues a public notice soliciting formal written bids or proposals.
Under this procedure, bids shall be solicited through the issuance of an Invitation for Bid (IFB) or a Request for Proposals (RFP) through the City’s electronic public bidding platform.
1. An IFB is utilized when the service or commodity can be specifically defined and fixed rates/prices are obtained, evaluated and an award is granted to the lowest, responsible bidder.
2. An RFP is utilized when the service or commodity is not as specific yet there is a clear objective/goal allowing proposers to present new technologies, new products and innovative service solutions. RFP Proposals are evaluated by a panel using pre-determined criteria resulting in an award to the most qualified, responsible proposer.
3. Bid Protest. Bidders/Proposers have a right to protest a Bid or RFP. The protest may be related to the bid process or specifications, or it may be related to the bid award. The protester must submit a timely protest in compliance with the bid or RFP protest deadlines. Protests received after the deadline will not be considered. The protest must be in writing and must include the reason for the protest and the details. It should also include the protestors requested resolution. City staff will pause the solicitation, review the protest and respond to the protestor with either a denial or acceptance and an action to resolve. If the protest is deemed valid, it may result in issuance of an addendum or a rebid. For protests that cannot be resolved at a City staff level, Departments should consult City Attorneys for guidance.
w. Order Splitting: The intentional division of a single purchase into smaller increments to avoid competitive bidding requirements or approval thresholds. Order splitting is strictly prohibited. The threshold level is based on the total anticipated value over the full contract term.
x. Requisition: A formal internal request in the City's ERP system to initiate the procurement process. Requisitions must include supporting documentation (quotes, scope of work, specifications) and all required approvals before a PO is issued.
3. Section A: Purchasing Authority
1. Purchase requisitions must have advanced approvals before receiving goods or services. A requisition should be submitted for approvals in advance. Once approved, a requisition is converted to a PO in the ERP system.
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2. Capital Asset Purchases (Equip/Vehicles exceeding $10,000) must be approved through the Budget process and assigned a Capital Asset Budget Sequence Number. Assets with an assigned Sequence Number may be procured in accordance with the Purchasing Policy solicitation requirements, not requiring additional City Council approvals.
3. Approval Levels: The approval levels and bid requirements for all purchasing of goods, materials, supplies, equipment, maintenance work, general services and professional services and construction (non-CUPCCAA) are as follows:
3. *The City Manager, City Attorney, or Procurement Officer may require a written contract at Level Amount Competition Contract / PO Required Approval Level 1 Under
$10,000
1 quote.
Document
vendor, date,
price.
PO not required. P-Card
OK.
Department
Director (DD)
Level 2 $10,000 –
$30,000
3 written
quotes.
Contract and PO are
required for all purchases
over $10,000.
Exception.
Goods and Commodities:
PO *acceptable.
Contract required for
Goods, Materials, and
Supplies over $30,000.
Department
Director (DD)
Level 3 $30,001 –
$100,000
3 quotes or
Formal
Solicitation
process
(IFB or RFP).
Contract and PO are
required for ALL
purchases at this level.
DD + City Manager
Exceptions: If entirely
reimbursable by a third
party (e.g. CEQA, Wireless
Application review) City
Manager may Authorize up
to $200,000. Written
reimbursement agreement
must be on file.
Budgeted Public Works
Projects under $75,000 may
be authorized by DD.
Level 4 Over
$100,00
Formal IFB or
RFP via
eProcurement.
Contract and PO are
required for ALL purchase
types at before ordering.
DD + CM + City Council
Commented [EP2]: PW Request: Consider delegating
approval authority for Public Works projects under $75,000 to the Public Works Director, or their designee, particularly for budgeted work. The current draft appears to require both City Manager and Public Works Director approval. Allowing delegated authority at this threshold could improve responsiveness, streamline project delivery, and reduce administrative delays for routine or previously budgeted work.
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any dollar amount when deemed necessary based on the nature of the purchase, risk considerations, legal requirements, or the best interests of the City.
Determining the Correct Threshold: The threshold level is determined by the total anticipated value of the purchase over the full contract term — not the first-year or per-unit cost. Example: a service costing $20,000/year over a 2-year agreement = $40,000 total → Level 3 applies
LEVEL 1 – Purchase requests below $10,000.00 require obtaining a minimum of one quote and approval by Department Director (DD) or Designee. A formal Purchase Order (PO) is not required. A P-Card may be utilized in accordance with P-Card Policies
LEVEL 2 – Purchase requests more than $10,000 but not more than $30,000.00, require an approved Purchase Requisition including 3 quotes (Informal Quote Procedure), a Contract and approval by Department Director (DD) or Designee.
1. LEVEL 3 – Purchase requests more than $30,000.00 but not more than $100,000.00, require an approved Purchase Requisition including 3 quotes (Informal Quote Procedure) or a Formal Solicitation (IFB or RFP) depending on the complexity of the purchase. Level 3 requires a Contract as well as Department Director (DD) or Designee and City Manager (CM) approval. In the event purchases are entirely reimbursable by third parties pursuant to an application (i.e., CEQA for private development projects, wireless application review, etc.), the city manager may authorize the purchase up to $200,000.
LEVEL 4 – All other purchase requests for more than $100,000.00 require an approved Purchase Requisition, Formal Solicitation (IFB or RFP), and a Contract. Commodity and Supply purchase requests may utilize Informal Quote or Formal Bid Procedure depending on the complexity. Level 4 requires a Contract as well as Department Director, City Manager and City Council approvals.
Contract Amendment – Increases: Commodity contract increases may be approved by Department Director for no more than 20% over the life of the contract without resolicitation. Service contract increases may be approved by the Department Director by no more than 10%. Contract increases require an approved requisition with justification for the requested increase and an executed contract amendment. Contract increases exceeding 20% (commodity) and 10% (service) over the life of the contract may require re-solicitation and/or re-approvals in accordance with Purchasing Policy threshold requirements.
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Contract Amendment – Administrative Change An administrative non-material change may be made to contracts with the approval of the Department Director. Administrative amendments require an approved requisition and an executed contract amendment.
Contract Amendment – Scope of Work Change - A contract amendment which materially impacts the original scope of work may require formal solicitation or informal quotes. Material changes to a contract Scope of Work require an approved requisition, Department Director and City Manager approval as well as an executed contract amendment.
Section B: General Purchasing Procedures
1. Purchase Requisition (REQ). Except as otherwise permitted herein, a formal purchase requisition, approved by the requesting Department Head, Finance Manager, Procurement Officer and City Manager (if applicable) is required in advance for all purchases greater than
$10,000, and for regular and recurring goods and services, regardless of the dollar amount when a contractor asks for a purchase order to be issued. Additionally, a requisition is mandatory for Capital Asset/Capital Outlay purchases (equipment over $10,000), vehicle purchases, and software subscription purchases. Quotes or Bids, Scope of Work or Specifications must accompany the request.
2. Purchase Orders (PO). A purchase order is generated after the purchase requisition and contract (if applicable). Approval of a PO and/or Contract is required before ordering supplies and services. POs are issued via electronic workflow and can only be created by the Procurement Officer, Director of Finance or their designees. POs are also created to encumber funds against a Contract. POs (except Capital Improvement Projects (CIP) and Utility Undergrounding projects) are closed out at the end of each fiscal year.
3. Retroactive Purchase (Retro): Ordering goods or services without advance approval of either the Department Director (for purchases under $10,000) or without an approved Purchase Requisition (for purchases over $10,000), is considered a Retroactive Purchase and is a violation of the City’s Purchasing Ordinance and Purchasing Policy. Retroactive Purchases require a Purchase Requisition with a memo explaining the circumstances and the corrective action taken to avoid recurrence. (under $10,000 requires Department Director approval and over $10,000 requires City Manager approval).
4. Blanket Purchase Order (BPO). Blanket purchase orders may be issued for multi-year contracts. POs are closed out at the end of each fiscal year. Exceptions made for Construction Projects (CIP).
5.4.Petty Cash Purchases. The purpose of a petty cash procedure and policy (Reference Petty Cash Policy) is to support “day-to-day” small immediate demands of departments that cannot be met through other established procedures for obtaining required materials. These demands are generated for items that are within the goals and objectives of the department and are provided for in the department’s operating budget.
Commented [EP3]: PW Request: Section B.2 regarding
Purchase Orders states that “POs, except Construction Projects (CIP), are closed out at the end of each fiscal year.” Public Works recommends revising this to include Utility Undergrounding projects as an additional exception.
Suggested language:
“Purchase Orders, except for Capital Improvement Projects (CIP) and Utility Undergrounding projects, are closed out at the end of each fiscal year.”
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Departments with a petty cash fund and should use it for minor purchases of up to $200.00 when buying from uncommon sources or vendors unwilling to establish a credit account with the City. Departments should submit their petty cash expenditures for reimbursement. The Finance
Department periodically audits each Department's petty cash fund. Petty Cash use must be in compliance with the Petty Cash Policy.
Section C: Solicitation Process
The City of Laguna Beach follows a decentralized purchasing system which gives authority to Departments to request quotes, conduct formal solicitations (IFB or RFP) and negotiate best value and pricing for the City. Quotes or solicitation documentation should be included in the Purchasing Requisition. The following is an outline of the solicitation process. Quotes or solicitation award documentation should be included in the Purchasing Requisition (ERP System).
1. Solicitation Documents
a. An Invitation for Bids (IFB) is utilized for procurement of Goods, Materials, Equipment and Services exceeding $100,000 that can be clearly defined in a detailed Scope of Work or Specification. Bids are evaluated and awarded to the lowest responsible bidder.
b. A Request for Proposal (RFP) is utilized when the service or commodity exceeding $100,000 is not as specific but instead, there is a clear objective/goal allowing proposers to present new technologies, new products and innovative service solutions. RFP Proposals are evaluated by an evaluation panel (3-5 subject matter experts which may include City staff) using pre-determined criteria and scoring resulting in an award to the most qualified, responsible proposer. c. Departments may achieve efficiency by soliciting for On Call Contracts and/or PreQualified provider contractors to include a variety of services for construction trades and consulting services. These contracts must be established through the required solicitation and approval processes and should not exceed 5 years without resolicitation. The terms, scope, pricing and not to exceed amount must be stated in the contract. Once in place, these can be used for ongoing service needs.
Departments shall obtain 3 quotes from On Call contractors and award to the lowest responsive, responsible proposer who can timely complete the work pursuant to the request for the quote. Departments must ensure compliance with scope and pricing throughout the term and use of the contract.
d. The Department shall prepare a Scope of Work and/or Bid Specifications and submit the Invitation for Bid (IFB) on the City’s electronic bidding platform. The Department must make efforts to notify all prospective bidders of the bid opportunity. e. Bids are received Electronically via the eProcurement platform and are not viewable until the bidding deadline has closed.
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f. The person or department initiating the purchase shall keep a record of all such solicitations and the price quotes or proposals submitted in response thereto. g. If the person or department initiating the purchase is unable to obtain three price quotes or proposals from responsible bidders or proposers after making diligent efforts to do so, the purchase may be made without obtaining three price quotes or proposals, provided that the efforts made to obtain three quotes or proposals shall be documented in the contract file for the purchase and/or documented on the Procurement Cover Sheet.
h. Nothing herein shall preclude the City from requiring a Formal Solicitation if deemed to be in the best interest of the City.
2. Bid or Proposal Evaluation
a. The City may reject any or all bids or proposals in response to a city solicitation in its sole discretion. Justification of rejection should be recorded and communicated to the proposer as a professional courtesy and to maintain good vendor relationships
b. If no bids or proposals are received, the city may make the purchase by any lawful reasonable and available means, notwithstanding the other requirements of this chapter.
c. If two or more bids or proposals received are for the same total amount or unit price, quality and service being equal, the contract may be awarded to either bidder or proposer.
3. Awarding Contracts
a. Invitation for Bids (IFBs) shall be awarded to the responsible proposer submitting the lowest responsive bid
b. Request for Proposals (RFPs) shall be awarded based on demonstrated competence and the professional qualifications necessary for the satisfactory performance of the service, offered at a fair and reasonable price. c. Contract Templates approved by the City Attorney’s Office must be used.
Exceptions to standard City Terms and Conditions must be approved by the City Attorney’s office.
d. Upon final approval of a contract, the following contract signature authorities apply:
i. Vendor signatures shall be obtained first. Departments must confirm the authorized signatures depending on the company’s organization. ii. Under $30,000 Department Head may sign/execute on behalf of City. 33 33 of 717
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iii. Over $30,000 City Manager will sign and if applicable (City Attorney reviewed/approved exceptions to terms), the City Attorney will also sign. iv. Contracts that have City Attorney approved exceptions to standard terms or insurance and Contracts that require City Council approvals, will be signed by the City Manager, City Attorney and City Clerk.
v. All executed contracts must be filed with the City Clerk’s Office to create a record and assign a contact/agreement number. Final executed contracts should be provided to the Purchasing Officer to enter into the ERP System.
4. Purchasing Approval Involving Personal Relationships No City employee shall approve, recommend, authorize, or otherwise participate in the selection, award, negotiation, or administration of any contract, purchase order, or agreement in which they have a personal relationship with any counterparty. For purposes of this prohibition, “personal relationship” means a person related by blood, adoption, current or former marriage, domestic partnership or cohabitation. Cohabitation means living with another person while in a romantic relationship without being married or in a domestic partnership If such a relationship exists, the City employee acting as the approving authority shall immediately disclose the relationship in writing and recuse themselves from all related discussions, decisions, and approvals and elevate the approval to the next level of approval authority.
Section D: Public Projects – Public Works Projects or “Construction Services” California Uniform Public Construction Cost Accounting Act. The City has adopted the Uniform Public Construction Cost Accounting Act (Pub. Cont. Code section 22000 et seq., as may be amended) (the “Act”) and all expenditures for Public Projects, as defined by Public Contract Code section 22002, by the City shall be made in accordance with the Act.
1. Solicitation Procedures. The Department initiating the purchase shall make a reasonable and good faith estimate of the anticipated cost of the project and utilize the appropriate solicitation procedure below. Purchases shall not be split or separated into smaller orders for the purpose of circumventing policy requirements. a. No Competitive Solicitation Required. Public Projects with an estimated cost of $75,000 or less (or as such limit may be amended from time to time) may be performed by City employees by force account or else may be awarded by negotiated contract or by purchase order without competitive bidding. b. Informal Bid Required. Public Projects over $75,000 but not more than $220,000, require either the informal bid procedures set forth herein or the formal solicitation procedures set forth herein.
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solicitation procedures set forth herein.
d. Informal Bid Procedures. A notice inviting bids shall be prepared, which describes the project in general terms, explains how to obtain more detailed information about the project, and states the time and place for the submission of bids. The notice shall be sent to all contractors for the category of work to be bid, as shown on the list developed in accordance with this section, and to all construction trade journals as specified by the California Uniform Public Construction Cost Accounting Commission ("Commission"), in accordance with Public Contract Code Section 22036, including any amendment thereto. Note: Informal Bidding Procedures do not require publication.
Notices sent to contractors on the contractors list shall be sent not less than ten (10) calendar days before bids are due and may be sent by mail, fax, or email.
Additional contractors and/or construction trade journals may be notified at the discretion of the department soliciting bids, provided, however:
i. If there is no list of qualified contractors maintained by the City for the particular category of work to be performed, the notice inviting bids shall be sent only to the construction trade journals specified by the Commission.
ii. If the product or service is proprietary in nature such that it can be obtained only from a certain contractor or contractors, the notice inviting informal bids may be sent exclusively to such contractor or contractors. e. Formal Bid Procedures. A notice inviting bids shall be prepared, which describes the project in general terms, explains how to obtain more detailed information about the project, and states the time and place for the submission of bids. The notice shall be published at least fourteen (14) calendar days before the date of opening the bids in a newspaper of general circulation, printed and published in the City; or, if there is no newspaper printed and published in the City, in a newspaper of general circulation which is circulated within the City; or, if there is no newspaper which is circulated within the City, publication shall be by posting the notice in at least three places within the City as have been designated by ordinance or regulation of the City as places for the posting of its notices.
The notice inviting formal bids shall also be sent electronically, if available, by either fax or email and mailed to all construction trade journals specified by the Commission pursuant to Public Contract Code Section 22036. The notice shall be sent at least fifteen
(15) calendar days before the date of opening the bids. In addition to notice required by this section, the City may give such other notice as it deems proper.
2. Contractors List. The City shall develop and maintain a list of contractors in accordance with the provisions of Public Contract Code Section 22034 and criteria promulgated from 35 35 of 717
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time to time by the Commission.
3. Bidder’s Security. All hard copy or electronic bids shall be presented under sealed cover accompanied by one of the following forms of bidder’s security: (a) cash; (b) cashier’s check made payable to the City; or (c) a bidder’s bond executed by an admitted surety insurer made payable to the City. Such security shall be an amount equal to at least ten percent (10%) of the bid amount. No bid shall be considered unless security in the form above set forth is enclosed with the bid.
4. Award of Contract. If a contract is awarded, it shall be awarded to the responsible bidder submitting the lowest responsive bid. If two or more bids are the same and the lowest, the contract may be awarded to either bidder.
a. If the project was bid using informal bidding procedures, and all bids received exceed two hundred twenty thousand dollars ($220,000), as such limit may be amended from time to time, the City Council may, by adoption of a resolution by a four-fifths vote, award the contract to the lowest responsive and responsible bidder if the amount of the contract does not exceed two hundred thirty five hundred dollars ($235,000), as such limit may be amended from time to time, and it determines the City’s cost estimate for the project was reasonable. Otherwise, the project shall be re-bid following the formal bidding procedures.
b. In its discretion, the City may reject any or all bids, and may do any of the following:
i. Abandon the project.
ii. Re-advertise for bids in the manner described herein. iii. By a four-fifths vote, the City Council may declare by resolution that the project can be performed more economically by City employees and may have the project done by force account without further complying with this chapter. Prior to rejecting all bids and declaring that the project can be more economically performed by City employees, the City shall furnish a written notice to an apparent low bidder, informing the bidder of the City's intention to reject the bid. Such written notice shall be mailed at least two (2) business days prior to the hearing at which the City intends to reject the bid.
5. If no bids are received through the formal or informal bidding procedure, the project may be performed by City employees by force account or by a negotiated contract without further complying with this Policy.
6. Contractor Name/Ownership Change: In the event of a contractor name and/or ownership change, a contract amendment will be required. Assignments (ownership change) must be reviewed by the City Attorney, and the new contractor/owner must be vetted by the City Department and verified to be in good standing and qualified to perform the contract services.
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7. Public Works Projects or “Construction Services” approval levels that meet the definition of California Uniform Public Construction Cost Accounting Act (CUPCCAA) have the following approval levels:
7. LEVEL 1 – CUPCCAA: Projects below $75,000 require Department Head and City Manager approval. Formal Solicitation is not required (see No Competitive Bidding Required) under Public Projects below.
An approved Purchase Requisition, One Quote and a Contract is required
LEVEL 2 – CUPCCAA: Projects above $75,000 but below $220,000 require Department Head and City Manager or Designee approval.
The Informal Bid/Quote Procedure (3 quotes) or Formal Solicitation may be utilized depending on the complexity of the project. An approved Purchase Requisition and a City Contract is required LEVEL 3 – CUPCCAA: Projects exceeding $220,000 require
Department Head, City Manager and City Council approval and require Formal Solicitation Procedures (IFB or RFP). An approved Purchase Requisition, bid award and a City Contract is required.
Change Order and Amendments: Approval authority limits shall be based on the total contract amount inclusive of any change orders or amendments. If a contract increase results in an aggregate contract amount which exceeds the authority level of the initial contract approval, the change order or amendment must be approved by the appropriate authority in accordance with the levels above.
Contract Contingency: Department Director may request City Council approval of a contract contingency at the time of contract approval. Contingency requests may range from 10-20% based on the type of service and/or project. Use of contingency amounts will require a Purchase Requisition and a Contract Change Order/Amendment but will not require reapproval from Council.
Level Amount Competition Contract / PO Required
Level 1 –
CUPCCA
Under $75,000 No competitive bid
required. 1 quote +
contract required (always
required for public works).
Dept Director
Level 2 –
CUPCCA
$75,001 –
$220,000
Informal bid (3 quotes,
10-day notice) or formal
solicitation + contract
required.
Dept Director + City
Manager
Level 3 –
CUPCCA
Over $220,000 Formal solicitation (IFB or
RFP) + contract required.
Dept Director + CM + City
Council
Commented [EP4]: PW Request- Consider delegating
approval authority for Public Works projects under $75,000 to the Public Works Director, or their designee, particularly for budgeted work. The current draft appears to require both City Manager and Public Works Director approval. Allowing delegated authority at this threshold could improve responsiveness, streamline project delivery, and reduce administrative delays for routine or previously budgeted work.
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Section E: Exceptions to Competitive Purchasing Requirements The exceptions to competitive solicitation requirements are pursuant to ordinance 2.30.050, but approvals levels still apply. All exceptions require documented written justification in the requisition.
1. No Competitive Advantage. When the City Manager or City Council determine that no price advantage would be gained from a competitive solicitation process.
2. Commodities. On an annual basis, the City Council will approve a list of commodities that are not readily adaptable to the open-market bid, Request for Proposals, or competitive bid processes and should therefore be exempt from the competitive bidding requirements of these Guidelines. Examples may include, but are not limited to, fuel, sand, rocks, lumber, mulch, and trees. Any approved commodities will be eligible for purchase after procuring three (3) quotes upon the review and approval of the Procurement Officer, so long as purchases fall within the approved budgets in the Fiscal Year Operating Budget.
3. Miscellaneous expenditures. Specific services are excluded from the requirements in this policy, such as employee benefit payments, insurance policy premiums, the purchase or lease of real property, unilateral services such as postage, required licenses, utilities and/or required government fees and payments to other government agencies.
4. Pass -Through Agency. When the City receives Federal, State, or County grant monies as a pass-through agency. This includes situations where the City is a fiscal agent, receiving funds on behalf of a separate entity.
5. Payments to Contract Instructors. When the City provides payment to a contract instructor for a recreation class where the payment is based on participant registration.
6. Sole Source. Sole Source purchases over $10,000 require City Manager or City Council approvals. This is appropriate when the Department Director determines that there is only one source that provides the needed services, supplies, or equipment or to ensure compatibility with other city products and equipment. The Department must provide justification and shall procure these items in the best interest of the city. The Purchase Requisition should provide justification for the Sole Source request. Instances when sole source procurement may be necessary:
a. The goods or service is available from only one vendor. b. To match existing products in use to ensure compatibility. c. In order that a field test or experiment may be made to determine a product’s suitability for future use.
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d. Competition is deemed inadequate after soliciting a number of sources. e. Vendor holds a unique set of skills or expertise that makes it impossible/unlikely anyone else can do the work or the same quality of work.
f. Product or service is Proprietary, and vendors can provide Proprietary Affidavit.
Note: Cost, convenience, and vendor preference are NOT valid sole-source justifications.
7. Cooperative Contracting: Departments may save time and money by utilizing (piggybacking) on contracts that have been solicited by other Public Agencies or Procurement Cooperative Partners (Omnia, NASPO, Sourcewell, etc.) if the solicitation methods meet the City’s solicitation requirements. Department Directors, City Procurement Officer and the City Legal Counsel will review Cooperative Agreements to verify pricing is competitive, purchasing policy requirements have been met and terms and conditions are agreeable. Cooperative Contracts require approvals in accordance with dollar thresholds listed in this Policy. Cooperative Agreements much adhere to the following requirements:
a. The competitive bidding source contract must still be in effect. b. The source contract must not preclude the City from using it as an agreement for cooperative purchasing.
c. The awarding jurisdiction for the source contract must be either the federal government, a State within the United States of America, or a county or city within the United States of America. ▪ Examples of nationally recognized purchasing cooperatives include, but are not limited to, California Multiple Award Schedule (CMAS); National Association of State Procurement Officers (NASPO) ValuePoint; the Department of General Services (DGS); OMNIA Partners (formerly U.S.
Communities Cooperative Purchasing); Sourcewell (formerly National Joint Powers Alliance); and federal General Services Agency (GSA) procurements. d. The prospective vendor making a proposal to the City must be the same vendor that was awarded the source contract. It is insufficient for the prospective vendor to be a partner supplier or authorized re-seller under the source contract vendor. e. The scope of work and/or goods delivered in the source contract must be the same as (or substantially similar to) the scope of work and/or goods requested by the City.
f. The prospective vendor must extend to the City the same terms and conditions as (or terms more favorable to the City than) those in the initial contract. 39 39 of 717
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g. City Attorney must approve agreements related to the Cooperative purchase.
8. Emergency. Where an emergency situation exists, or where a disaster has been declared by the City Council, State or Federal government, such that the life, health or safety of employees or the general public is at risk, or when significant harm may occur to city property or operating systems and goods and/or services must be procured immediately to prevent loss or substantial disruption of city services or functions; provided that competitive bidding is not required by a state or federal reimbursing agency and is otherwise consistent with State law.
9. Mandated Expenditures. When expenditures are mandated by law or regulation, such as county booking fees, utilities, postage, waste disposal fees or other non-negotiable permit, use or application fees.
10. Non-Traditional Procurements. Certain goods and services are acquired in a specific manner (through methods and/or from sources) that may meet the “best quality and value” standards outside of the open, competitive market. Examples of such nontraditional procurements include goods purchased through public auction, closeout sale, bankruptcy sale, or other similar sale, where the purchase at any such auction or sale is made at a cost below the market cost.; goods obtained as part of an exchange that is not a sale or auction. goods produced by the California Prison Industry (CALPIA).
11. Best Interest of City. When the City Manager determines that bidding would be impractical, inefficient, or otherwise not in the best interest of the city, provided that contract file contains sufficient documentation to justify bid impracticality.
Section F: General Purchasing Guidelines
1. Record Keeping. The Finance Department is responsible for maintenance of purchasing records.
2. Receiving Goods/Equipment
a. Inspection and Testing. All goods procured by the City shall be subject to inspection and/or testing upon receipt or completion by the Department receiving the product to ensure conformance with the specifications set forth in the order. If a product fails to meet specifications, it shall be identified as "on hold pending rejection," and a notification shall be forwarded to the Finance Department. If a product is determined to be unusable, it shall be rejected and returned to the vendor as the vendor directs, and at their expense, for credit or replacement. Items found not to specifications, but of limited usability, may be conditionally accepted but only after renegotiation of the original contract.
b. Acceptance. When goods have been received or a project has been completed to the satisfaction of the ordering Department and the specifications, the packing slip and/or other completion documentation shall be signed off by the 40 40 of 717
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receiver/inspector. Information to be noted in the documents must include, as a minimum, the acceptor’s signature and a legible rendering of their name and the date of receipt/completion. Any deviation from the exact ordering specifications must be noted on the receiving/acceptance documents.
3. Contractor Performance Departments are responsible for monitoring contractor performance and immediately address deficiencies or deviations from the Scope of Work or Pricing. If after formal notice, deficiencies are not resolved, Departments should involve the Procurement Officer to determine if a formal Notice to Cure is necessary. If a Notice to Cure is unsuccessful in resolving deficiencies, the Procurement Officer and Legal Team will review and determine if a breach of contract exists and if termination of the contract is necessary. All performance efficiencies should be documented by the Department.
Section G: State or Federally Funded Projects and Procurements. State or federally funded purchase requests must follow the funding agencies Purchasing Policy and in certain cases, specific Contract Terms must be added to the contract. Due diligence must be followed to ensure the funding agency purchasing policy is applied. For purchases funded in whole or in part by federal grants, the following additional requirements apply under 2 CFR Part 200 (Uniform Guidance):
• Full and open competition is required. The micro-purchase threshold is $10,000; simplified acquisition threshold is $250,000 (subject to annual OMB adjustment). • For sole-source or single-bid situations under federal grants, a written cost or price analysis is required in the procurement file.
• Departments must verify the vendor is not on the SAM.gov exclusion list before awarding any federally funded contract.
• Buy American and Davis-Bacon Act requirements apply to federally funded construction projects.
Section H: Exemptions from Purchasing Policy.
The following expenditure types are exempt from the competitive bidding, Purchase Order, and contract requirements of this policy and may be processed directly for payment upon receipt of a proper invoice with Department Director approval, provided funds are available in the approved departmental budget:
Memberships and professional dues (e.g., League of California Cities, MMASC, and other professional or governmental associations)
Legal fees and outside counsel authorized by the City Attorney Employee benefit payments (health, dental, vision, life insurance, and retirement contributions) Utilities (electric, gas, water, sewer, telecommunications) 41 41 of 717
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City insurance premiums and risk pool contributions
Postage and postal meter replenishment
Required permits, licenses, and fees mandated by law or regulation at a set, non-negotiable rate payable to a governmental or regulatory agency
Exemption from purchasing procedures does not exempt these expenditures from the City's standard invoice approval and accounts payable processes. When in doubt whether an expenditure qualifies for this exemption, departments should contact the Procurement Officer prior to processing payment.
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Purchase Order and Contract Authority – Orange County Trends According to data compiled, most OC municipalities structure their guidelines within the following ranges:
• PO Thresholds (Up to $50,000): Most cities allow standard materials, supplies, and equipment up to this range to be procured via an informal quote process handled with a standard PO or departmental credit card (P-card). • Formal Contract Thresholds (over $50,000 to $100,000+): Once a threshold is crossed, cities require a standalone, written contract vetted by the City Attorney and approved by the City Council or City Manager.
Examples of Specific City Thresholds in OC, Current local policies:
City PO Required Contract Required
Anaheim $10,000+ (informal quotes;
Purchasing Division processes all
orders)
$50,000+ (formal competitive bid or
RFP; contract by Purchasing Agent or
Council)
Huntington Beach $30,000 or less (simplified
procedures, no formal bid
required)
$30,001+ (written contract for all
goods & services; formal competitive
bid or proposals)
Costa Mesa $25,000 or less (micro-purchase;
simplified procedures)
$50,001+ (formal bidding; City Council
award). Informal bid $25,001–$50,000.
Irvine $10,000–$50,000 (informal
quotes; PO issued)
$50,001+ (formal IFB or RFP required)
Los Alamitos $10,000 or less (open market, no
bid required)
$100,001+ (written contract; City
Council approval). City Manager
authorized up to $100,000.
City of Laguna Beach CURRENT Policy:
$10,000+ (Contract with a PO
required for all purchases over
$10K)
PROPOSED Policy:
$30,000+ Goods and Commodities
$10,000+ everything else
Important Exceptions to the Rule
1. Professional Services: Many OC cities maintain separate rules for professional services (like architects, engineers, legal counsel, or consultants). For instance, a city might allow a standard PO for $40,000 worth of computer hardware, but mandate a comprehensive written contract for a $15,000 consulting agreement to protect against liability. The City of Laguna Beach already reflects this best practice — professional services, software/technology, and public works contracts require a written contract over $10,000 per Policy 1-9.
2. Public Works Contracts (CUPCCAA): For construction or public repair projects, many cities subscribe to the Uniform Public Construction Cost Accounting Act (CUPCCAA). Under California state updates effective January 1, 2025, public projects of $75,000 or less can generally be done via a simplified negotiated contract or purchase order, while projects over $220,000 require a formal, legally protected bidding contract.
Attachment 3
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STAFF REPORT
Meeting Date:
June 23, 2026
CONSENT
17 SUBJECT: LAGUNA WOODS ANIMAL SERVICES AGREEMENT
RECOMMENDATION: It is recommended that the City Council:
1. Authorize the City Manager to enter into a one-year agreement with the City of Laguna Woods for the provision of animal control, licensing, and shelter services from July 1, 2026 to June 30, 2027; and
2. Find that the proposed action does not constitute a “project” for purposes of the California Environmental Quality Act.
SUMMARY OF THE MATTER
The report recommends that the City Council authorize the City Manager to enter into a one-year agreement with the City of Laguna Woods for the provision of animal control, licensing, and shelter services for the period of July 1, 2026, through June 30, 2027. Since 2000, the Laguna Beach Police Department has provided these services to the City of Laguna Woods, including animal control response, enforcement of animal welfare laws, pet licensing, shelter services, and community education.
Under the proposed agreement, the City of Laguna Woods will pay $129,060 for Fiscal Year 2026-27, which represents a 3.75 percent increase from the current agreement and covers the full cost of a dedicated Animal Services Officer position. The agreement continues a long-standing partnership that enhances service levels for both communities while allowing Laguna Beach to retain revenues generated from pet licenses, animal-related permits, and administrative citation fines.
DISCUSSION
Since October 1, 2000, the Police Department has provided animal control, licensing, and shelter services to the City of Laguna Woods. This includes responding to calls-for-service (CFS) related to animal matters, enforcement of city and state laws related to animal welfare and care, pet licensing, and animal related community education.
The arrangement has exceeded expectations and continues to be beneficial for both communities. For example, under the current arrangement, the City of Laguna Woods fully funds the total cost of a full-time Animal Services Officer (ASO). That position is available to both Laguna Woods and Laguna Beach, creating a higher level of service for both cities. Residents of Laguna Woods also obtain the same pet licenses and permits that residents of Laguna Beach obtain, and they pay the same fees.
The current cost of the agreement for FY 25-26 is $124,392. The new agreement specifies that the annual payment by Laguna Woods for FY 26-27 will be $129,060, an increase of 3.75%. Additionally, the agreement stipulates that all revenues from the sale of pet licenses, animal-related business permits, and administrative citation fines issued by ASO’s are retained by Laguna Beach. 1 of 730
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June 23, 2026
The annual payments cover the total cost of a full-time ASO, which includes the annual salary, PERS, unfunded liability, insurance, and Medicare. If the total cost of an ASO increases beyond the projected amounts, the agreement stipulates that the annual payment shall increase to match the actual total cost of a full-time ASO.
The City Attorney’s Office has reviewed the proposed agreement, and staff recommends that we continue this arrangement and renew the one-year agreement for a term of July 1, 2026 to June 30, 2027.
FINANCIAL ANALYSIS
The recommended action has no financial impact to the budget.
ENVIRONMENTAL ANALYSIS
The recommended action is not a “project” for purposes of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378 (b). Specifically, a “project” is defined as an action which may cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. Section 15378 (b) excludes from the definition of "project" continuing administrative or maintenance activities, such as purchases for supplies and services. The action proposed action to enter into a contract for animal care and control services, is an administrative activity, and therefore is not a "project" as defined by CEQA.
ATTACHMENTS
1) Agreement (Pgs. 3-13)
Submitted By:
. Approved: .David A Kiff
Jeff Calvert, Police Chief Dave Kiff, City Manager
Report Prepared By: Coordinated With:
Jim Beres, Police Civilian Services
Administrator
Patrick Donegan, Assistant City Attorney
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1 AGREEMENT FOR ANIMAL CONTROL AND SHELTER SERVICES
THIS AGREEMENT, entered into this 1st day of July 2026, which date is enumerated for purposes of reference only, by and between the CITY OF LAGUNA BEACH, a municipal corporation, hereinafter referred to as “LAGUNA BEACH,” and the CITY OF LAGUNA WOODS, a municipal corporation, hereinafter referred to as “LAGUNA WOODS.”
WITNESSETH:
LAGUNA WOODS desires to contract with LAGUNA BEACH for the performance of the hereinafter-described animal control and animal shelter services.
LAGUNA BEACH is willing and able to render such services on the terms and conditions hereinafter set forth.
NOW THEREFORE, IT IS MUTUALLY AGREED as follows:
1. TERM
A. This Agreement shall become effective on July 1, 2026 and continue in effect for a period of twelve months
ending on June 30, 2027 unless otherwise terminated as
described in paragraph 2.
2. TERMINATION
A. Either party may terminate this Agreement without cause by providing written notice of said termination to the other party. The written notice of termination must be given at least six (6) months in advance of the effective date of the termination.
3. SERVICES
A. LAGUNA BEACH agrees to provide animal control services within the corporate limits of LAGUNA WOODS. The level of animal control and shelter services to be provided under this Agreement are enumerated below. Services provided by
LAGUNA BEACH shall include the enforcement of State statutes and Municipal Code sections deemed applicable to LAGUNA WOODS by LAGUNA BEACH. LAGUNA BEACH will not be
obligated to enforce any ordinances adopted by LAGUNA
WOODS except those adopted in compliance with Paragraph 5 of this Agreement and ordinances pertaining to spay, neutering, and number of animals permitted. Services shall be provided in the following categories:
Attachment 1
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2 1) FIELD SERVICES: LAGUNA BEACH shall be responsible for and provide all animal control field services in LAGUNA WOODS. Field services shall generally be provided seven days a week, 365 days a year, between the hours of 6:00 a.m. and 4:00 p.m. and as late as 6:00 p.m. when overlapping staff are available. Calls for service will be dispatched and handled based first on priority and then as they were received. Field service activities shall include, but are not, at the discretion of the LAGUNA BEACH Animal Services staff, limited to: impounding and/or capture of stray dogs; impounding of unattended dogs or cats due to death or illness of the owner where a family member or other person is not available; pick up or disposal of injured raccoons, opossums, deer, bobcats, coyotes, mountain lions; transportation of all injured impounded animals to appropriate medical treatment; conduct cruelty investigations; bite investigations; chronic barking dog complaints; manage and conduct quarantine activities; enforcement of state laws and local ordinances and issuance of citations; impounding of dead animals for disposal; and public information and education services regarding barking dogs, wildlife or other animal concerns.
While LAGUNA BEACH intends to maintain routine coverage of two animal services officers each day in LAGUNA BEACH, LAGUNA WOODS accepts and understands that the animal services officers are limited in number, and as employees, routinely take leave in the form of vacation, sick, holidays, “Family Leave” as set forth in the Family Leave Act, and all other local, state and federally protected leave. During such periods of leave, the ability of LAGUNA BEACH to respond to calls in a timely manner may be significantly impacted. LAGUNA WOODS also accepts and understands that an animal services officer’s position may become vacant, which will also affect the ability of LAGUNA BEACH to respond to calls in a timely manner. In either event, calls for service will be dispatched and handled based first on priority and then as they were received.
2) TELEPHONIC SERVICES: LAGUNA BEACH staff will be available to receive calls for service seven days a week, twenty-four hours a day, 365 days a year. LAGUNA BEACH Animal Services staff will take or return calls during the hours when field staff is available to provide advice and/or referrals to members of the community of LAGUNA WOODS for the proper handling and/or disposal of feral cats, rats, mice, rabbits, gophers, squirrels, insects, spiders or other “vector” species.
3) SPECIAL SERVICES: LAGUNA BEACH shall be responsible for and provide all pet licensing and license renewal, canvassing, and animal facility licensing and inspection in LAGUNA WOODS. New license applications shall be made available at Laguna Woods City Hall, the Laguna Beach Animal Shelter, and in the field through routine contact 4 4 of 730
3 with Animal Services Officers. Pet License renewals shall be processed and issued by mail through the existing renewal process, or in person at the Laguna Beach Animal Shelter. LAGUNA BEACH will process renewals and answer telephone and in-person questions regarding licensing requirements. LAGUNA BEACH shall periodically canvass LAGUNA WOODS residences, as appropriate, to locate and license unlicensed dogs.
Some animal-related businesses in LAGUNA WOODS will be inspected annually as required by law and in response to any complaints to assure that facilities meet required laws and standards. LAGUNA BEACH shall provide advance notification of such inspections to LAGUNA WOODS, and will advise LAGUNA WOODS of any violations and/or enforcement action taken.
A low-cost vaccination clinic will be coordinated and conducted once a year. The clinic will be located at the Laguna Beach Animal Shelter at 20612 Laguna Canyon Road, or at another appropriate location within the City of Laguna Woods
4) SHELTER SERVICES: LAGUNA BEACH shall be responsible for and provide animal shelter services to LAGUNA WOODS. Services shall be provided at the Laguna Beach Animal Shelter, 20612 Laguna Canyon Road, Laguna Beach. The shelter will be open to the public to locate lost pets or for pet adoption seven days per week, except holidays. Public hours may vary from day to day, but will generally be between 11 a.m. and 4 p.m.
A. LAGUNA BEACH agrees to maintain its animal shelter in a humane manner and keep said premises in a clean condition at all times in accordance with policies and the budget approved by LAGUNA BEACH for the shelter, and that all services furnished by it hereunder shall be in accordance with the laws of the State of California, and that it will give required notices and use humane methods of care and destruction of any animal coming under its jurisdiction pursuant to its policies.
After review by the Evaluation Committee, vicious or seriously sick or injured domestic animals may be euthanized by lethal injection.
B. LAGUNA WOODS understands that while the cost of the services provided were originally based on the salary and benefits of one full-time Animal Services Officer, LAGUNA BEACH is entering into the agreement with the expectation that the actual field services provided should not exceed 1250 hours annually. 5 5 of 730
4 LAGUNA WOODS understands that the expense of operating the entire Animal Services program also includes but is not limited to the operation of the Animal Shelter facility, medical treatment of animals, animal disposal, police communications, administration, management, supervision, report preparation, court testimony, ongoing training, and driving time between the two cities.
C. LAGUNA WOODS agrees to maintain all animal service-related fees and license fees equal to the fee schedule of LAGUNA BEACH.
D. LAGUNA WOODS understands that all revenues generated through licensing, fines, penalties, and fees generated through the activities and actions described in this agreement will not be reimbursed to LAGUNA WOODS. Such revenues will be used to offset the variable costs of setting up the licensing records of all licensed dogs, printing of related forms, notices, documents, tags, and care and feeding of impounded animals.
E. LAGUNA BEACH shall furnish and supply all necessary labor, supervision, equipment and supplies to provide the services described in this Agreement. In all instances wherein special supplies, stationery, notices, forms and the like are issued in the name of LAGUNA WOODS, the same shall be supplied by
LAGUNA WOODS at its own expense subject to approval by
LAGUNA WOODS.
F. The method by which services are provided, the standard of performance, any other matters incidental to the performance of such services, and the control of personnel so employed, shall be determined by LAGUNA BEACH. In the event of a dispute
between the parties as to the extent of the duties and functions to be provided hereunder, or the level and manner of such services, the parties shall meet in good faith to resolve their differences. In the event of an impasse, the decision of the City Manager of LAGUNA BEACH shall be final.
G. To facilitate the performance of services hereunder, LAGUNA BEACH shall have full cooperation and assistance from LAGUNA WOODS, its officers, agents and employees.
H. If agreeable to both parties, additional services may be rendered by LAGUNA BEACH and paid for by LAGUNA WOODS.
Additional services must be approved in writing by LAGUNA WOODS.
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5 I. The Laguna Beach Animal Shelter is under the direct supervision of the Laguna Beach Police Department. Complaints, concerns, and problems may be directed to the on-duty Police Department Watch Commander, Animal Shelter Manager, or Animal Services Manager (or other Police Department Supervisor or Management level employee.)
J. LAGUNA WOODS shall be responsible for negotiating, managing and paying for any contracts entered into with a private service provider to handle the abatement of coyotes, mountain lions, or any other non-domesticated animals that are deemed to be causing a nuisance.
5) TRAINING SERVICES. LAGUNA BEACH may provide periodic training and education services to the security staff of Village Management Services, Inc. related to animal control and coyote hazing at the sole discretion of LAGUNA BEACH. The schedule and substance of this training shall be determined by LAGUNA BEACH Animal Services staff and may be discontinued at any time and at the sole discretion of LAGUNA BEACH. Village Management Services, Incorporated, is a California based non-profit mutual benefit corporation located at 24351 El Toro Road, Laguna Woods, CA. 92637.
4. STATUS OF CONTRACTOR
Although the services herein described are municipal functions, all persons employed by LAGUNA BEACH to provide said services shall be LAGUNA BEACH employees; no person employed hereunder shall have the right to any LAGUNA WOODS pension or civil service status. When performing services under this Agreement and for the purpose of giving official status to the performance therefor where necessary, but not for the purpose of liability or indemnification, every LAGUNA BEACH officer or employee shall be deemed to be an officer or agent of LAGUNA WOODS.
5. CONFORMITY OF LAWS OR REGULATIONS
Notwithstanding anything to the contrary herein contained, this Agreement shall terminate at any time that LAGUNA WOODS fails to enact, and to maintain in full force and effect an ordinance substantially the same as the provisions of Title 6 of the LAGUNA BEACH Municipal Code, and other regulations presently adopted by the LAGUNA BEACH City Council concerning animal control, including those which relate to fees. This Agreement shall also terminate if LAGUNA WOODS does not enact the same amendments to its Municipal Code as those adopted by LAGUNA BEACH City Council regarding animal control within sixty (60) days after a request to do so by LAGUNA BEACH’S City Manager. The LAGUNA BEACH City Manager, acting on behalf of LAGUNA 7 7 of 730
6 BEACH, may use discretion and need not request LAGUNA WOODS to adopt amendments, which do not apply to LAGUNA WOODS.
6. PREPARATION OF ANNUAL BUDGET
LAGUNA BEACH assumes all responsibility for the preparation of the Animal Services budget for Fiscal Year 2026-2027.
7. PREPARATION OF STATISTICAL REPORTS
LAGUNA BEACH will prepare and provide statistical information to LAGUNA WOODS on a monthly basis containing information on all animal services related calls for service in LAGUNA WOODS received by the LAGUNA BEACH Police
Communications Center; and all Animal Shelter related services provided to LAGUNA WOODS (e.g. licensing, permitting, and numbers of animals, duration held, and disposition).
LAGUNA BEACH will assist and provide LAGUNA WOODS
with special requests for information either on specific calls, special statistical information, or other similar requests as is reasonably available through the Police Department computerized dispatching system and Animal Shelter records.
8. PAYMENTS
A. BASIS FOR PAYMENT
LAGUNA WOODS shall pay LAGUNA BEACH for the
actual costs of providing animal control, animal shelter services, and other services contemplated by this
Agreement to the area located within LAGUNA WOODS.
B. PAYMENT METHOD
(1) In consideration for the animal control, licensing, and shelter services provided by LAGUNA BEACH during the
term of the Agreement, LAGUNA WOODS shall make a
Fiscal Year 2026-2027 Payment to LAGUNA BEACH in
the amount of $129,060.00 (“Annual Payment”).
(2) The 2026-2027 Fiscal Year Payment shall be paid to
LAGUNA BEACH in monthly installments, each payment
equal to $10,755.00 or one-twelfth (1/12) of the total
Annual Payment for the 2026-2027 Fiscal Year. The first payment is due on July 30, 2026, and subsequent monthly 8 8 of 730
7 payments shall be due on the 30th of each calendar month thereafter, with the last payment due on June 30, 2027. (3) If a payment is not received by LAGUNA BEACH within thirty (30) days after the due date, LAGUNA BEACH may
cease providing any further service under this Agreement with LAGUNA WOODS and may satisfy the indebtedness
in any manner prescribed by law.
(4) LAGUNA WOODS shall not be called upon to assume any liability for (1) the direct payment of any salaries, wages or other compensation to any LAGUNA BEACH personnel
performing services pursuant to this Agreement, (2) any liability for any LAGUNA BEACH employee for injury or
sickness arising out of his or her employment while
performing services pursuant to this Agreement: provided, however, the costs of such liabilities described in this subparagraph shall be considered expenditures for the
Animal Services program and shall be allocated pursuant to the terms of Paragraph 8C of this Agreement.
C. DETERMINATION OF COST OF SERVICES
(1) LAGUNA BEACH shall use the salary and benefits of one full-time Animal Services Officer to determine the Actual Cost of the animal control and shelter services provided to LAGUNA WOODS for each fiscal year during the term of
this Agreement. This figure will be adjusted annually to reflect any changes in those salary or benefits such as a negotiated salary increase.
D. FEE REVENUE
(1) LAGUNA BEACH shall receive all cooperation possible from LAGUNA WOODS to enable efficient enforcement
of fee collection. LAGUNA BEACH shall retain all fees
and revenue derived from the enforcement of the
LAGUNA WOODS ordinances pertaining to the animal
control services provided by LAGUNA BEACH.
(2) LAGUNA BEACH agrees to keep and make available to
LAGUNA WOODS a record of all license revenue
collected from residents of LAGUNA WOODS, and all fee
revenue generated from animals received from LAGUNA
WOODS residents or impounded within the corporate
limits of LAGUNA WOODS.
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8 9. CONSULTATION
LAGUNA BEACH agrees to consult with LAGUNA WOODS during the consideration of, and prior to any final decision and/or implementation of the following:
A. Any proposed change in the level of service, staffing, days or hours of operation of field services, special services or shelter services.
B. Any proposal to offer or contract for the provision of animal control and shelter services to another public agency.
C. Any proposed change to LAGUNA BEACH ordinances,
regulations, and fees concerning animal control services that LAGUNA BEACH would propose be adopted by LAGUNA
WOODS.
10. RECORDS
All records created or received by LAGUNA BEACH in accordance with this Agreement shall be LAGUNA BEACH records. LAGUNA BEACH agrees to keep such books and records in such form and manner as specified in the Municipal Code. Said Books shall be open for examination by LAGUNA WOODS at all reasonable times.
11. ALTERATION OF TERMS
This Agreement fully expresses all understandings of LAGUNA BEACH and LAGUNA WOODS with respect to the subject matter of this Agreement, and shall constitute the total Agreement between the parties for these purposes. No addition to, or alteration of, the terms of this agreement shall be valid unless made in writing, formally approved and executed by duly authorized agents of both parties.
12. INDEMNIFICATION
LAGUNA WOODS agrees to and shall defend, indemnify and hold LAGUNA BEACH, its elected officials, officers, agents and employees harmless from any and all claims actions and judgments for injury, loss or damage arising out of or resulting from the performance of services by LAGUNA BEACH under this Agreement in or for the benefit of LAGUNA WOODS; provided however, this obligation shall not apply where the alleged injury, loss or damage arises out of or results from an 10 10 of 730
9 act or omission of LAGUNA BEACH personnel not within the scope of employment or an act or omission constituting actual fraud, corruption or actual malice. LAGUNA WOODS’ obligation to defend, indemnify, and hold harmless shall extend to any claims, judgments, or damages arising out of LAGUNA BEACH’s training and education services provided to the staff of Village Management Services, Inc., including, but not limited to, any third party claims resulting from the actions of Village Management Services, Inc. employees or its agents. Village Management Services, Incorporated, is a California based non-profit mutual benefit corporation located at 24351 El Toro Road, Laguna Woods, CA. 92637.
LAGUNA BEACH agrees to and shall defend, indemnify and hold LAGUNA WOODS, its elected officials, officers, agents and employees harmless from any and all claims actions and judgments for injury, loss or damage arising out of or resulting from the performance of services by LAGUNA BEACH under this Agreement in or for the benefit of LAGUNA WOODS; provided however, this obligation shall not apply where the alleged injury, loss or damage arises out of or results from the enactment and maintenance by LAGUNA WOODS of the ordinance and regulations required under Section 5 of this Agreement; and provided further, however, this obligation shall not apply where the alleged injury, loss or damage arises out of or results from an act or omission of LAGUNA WOODS personnel not within the scope of employment or an act or omission constituting actual fraud, corruption or actual malice.
13. BREACH OF AGREEMENT
If either LAGUNA BEACH or LAGUNA WOODS defaults in the
performance of the terms or conditions of the Agreement, it shall have thirty (30) days after service upon it of a written notice of default in which to cure the default by rendering satisfactory performance. In the event that a party fails to cure its default within such period of time, the other party shall have the right, notwithstanding any other provision of this Agreement, to terminate this Agreement without further notice and without prejudice to any other remedy to which it may be entitled at law, inequity, or under this Agreement. The failure of either party to object to any default in the performance of the terms and conditions of this Agreement shall not constitute a waiver of either the term or condition, or of any other term or condition of this Agreement.
14. ATTORNEYS’ FEES
If any legal proceeding, including an action for declaratory relief, is brought to enforce or interpret provisions of this Agreement, the 11 11 of 730
10 prevailing party will be entitled to reasonable attorneys’ fees, which may be set by the court in the same action or in a separate action brought for that purpose, in addition to any other relief to which the party may be entitled.
15. NOTICES
Unless the persons or addresses are otherwise identified by notice given in the manner specified by this paragraph, all notices authorized or required by this Agreement shall be deemed effective when reduced to writing and deposited in the United States mail, certified, and addressed as follows:
To LAGUNA BEACH: City Manager
City of Laguna Beach
505 Forest Avenue
Laguna Beach, CA 92651
To LAGUNA WOODS: City Manager
City of Laguna Woods
24264 El Toro Road
Laguna Woods, CA 92637
IN WITNESS WHEROF, the City of Laguna Beach by motion duly adopted by its City Council caused this Agreement to be signed by its City Manager and attested by its City Clerk, and the City of Laguna Woods, by motion duly adopted by its City Council caused this Agreement to be signed by its Mayor and attested by its City Clerk, to become effective on the day first above written.
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11 IN WITNESS WHEROF, the parties hereto have executed this Agreement.
DATED:_____________________ DATED:_____________________ By:__________________________ By:__________________________ ANNIE McCARY DAVE KIFF
Laguna Woods Mayor Laguna Beach City Manager
DATED:_____________________ DATED:_____________________ By:__________________________ By:__________________________
YOLIE TRIPPY ANN MARIE MCKAY
Laguna Woods City Clerk Laguna Beach City Clerk
DATED:_____________________ DATED:_____________________ By:__________________________ By:__________________________
ALISHA PATTERSON MEGAN GARIBALDI
Laguna Woods City Attorney Laguna Beach City Attorney
13 13 of 730
STAFF REPORT
Meeting Date:
June 23, 2026
CONSENT
18 SUBJECT: APPROVE AN AGREEMENT WITH DUNE DRIFTER LLC FOR CALTRANS
ENCROACHMENT PERMIT PROCESSING
RECOMMENDATION: It is recommended that the City Council:
1. Approve and authorize the City Manager to execute an Agreement with Dune Drifter LLC for Caltrans Encroachment Permit Processing; and
2. Find that the proposed actions are exempt under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines section 15061(b)(3) and 15308. Or in the alternative that the proposed action is not a “project” under CEQA pursuant to CEQA Guidelines section 15378.
SUMMARY OF THE MATTER
This report recommends that the City Council approve a Developer Indemnity, Reimbursement, and Agency Agreement with Dune Drifter LLC to facilitate processing of a required Caltrans Encroachment Permit associated with the Pacific Edge Hotel renovation project.
Because portions of the project affect Caltrans right-of-way along Coast Highway, Caltrans requires the City to serve as the permit applicant. The proposed agreement authorizes Dune Drifter LLC to act as the City's limited agent for the preparation and administration of the permit application while assigning responsibility for all project-related costs, permitting, construction, insurance, and regulatory compliance to Dune Drifter LLC.
The agreement includes reimbursement, insurance, and indemnification provisions to protect the City and does not obligate the City to fund, construct, own, operate, or maintain the project improvements. Approval of the agreement will facilitate permit processing while ensuring project-related responsibilities and risks remain with Dune Drifter LLC.
DISCUSSION
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APPROVE AN AGREEMENT WITH DUNE DRIFTER LLC FOR CALTRANS
ENCROACHMENT PERMIT PROCESSING
June 23, 2026
The proposed Developer Indemnity, Reimbursement, and Agency Agreement between the City of Laguna Beach and Dune Drifter LLC establishes the terms under which the City will serve as the applicant and permittee for a required Caltrans Encroachment Permit associated with the renovation of the Pacific Edge Hotel. The project includes construction activities within Caltrans’ Coast Highway right-of-way, including parking structure footings, shoring, excavation, traffic control, and related improvements.
Caltrans will not contract with a private entity. Therefore, the proposed agreement establishes the City as the applicant for the encroachment permit and related agreements with Caltrans and authorizes Dune Drifter LLC to act as the City's agent for preparation and administration of the Caltrans permit application. The agreement does not allow Dune Drifter LLC to bind the City to financial, maintenance, property, or other obligations without the City's prior written approval. Any future responsibilities required by the Caltrans encroachment permit will require a separate agreement between Dune Drifter LLC and the City to transfer said responsibilities to Dune Drifter or their successors. The City Engineer or his designee will work closely with Dune Drifter LLC and Caltrans to ensure permits and agreements are processed in a timely manner.
The proposed agreement assigns full responsibility for the design, construction, permitting, operation, and compliance of the project to Dune Drifter LLC and requires them to be responsible for all costs and to maintain required insurance coverage.
Approval of the agreement expedites the Caltrans permit process, which mutually benefits the City and Dune Drifter LLC; however, all project-related risks, costs, and responsibilities will remain with Dune Drifter LLC. The agreement does not obligate the City to fund, construct, own, operate, or maintain the project improvements and provides mechanisms for reimbursement, insurance, security, and enforcement should Dune Drifter LLC fail to meet its obligations. City staff believes this arrangement will best protect the City from a liability, financial and operational standpoint, while complying with Caltrans’ requirements and allowing the applicant the opportunity to prioritize and complete the required work.
FINANCIAL ANALYSIS
The proposed agreement does not require the expenditure of City funds. Dune Drifter LLC is responsible for all costs associated with preparation, permitting, construction, inspection, and administration of the project and is required to reimburse the City for costs incurred in connection with its role as applicant for the Caltrans Encroachment Permit. Accordingly, the recommended action has no anticipated net fiscal impact on the City's operating or capital budgets.
ALIGNMENT WITH CITY COUNCIL GOALS AND PRIORITIES
The proposed agreement supports the City Council's goals of maintaining effective intergovernmental coordination, protecting public infrastructure, and facilitating appropriate private investment while ensuring that project-related risks and costs remain the responsibility of the project applicant.
ENVIRONMENTAL ANALYSIS
The proposed actions are exempt under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines section 15061(b)(3) under the “common sense” exemption. An agreement allowing Dune Drifter LLC to be the City’s authorized agent for all things related to the Caltrans encroachment permit for a project that has already undergone environmental review is an action that can be seen with certainty that 2 of 744
APPROVE AN AGREEMENT WITH DUNE DRIFTER LLC FOR CALTRANS
ENCROACHMENT PERMIT PROCESSING
June 23, 2026
there is no possibility that the activity in question may have a significant effect on the environment. In the alternative that the proposed action is not a “project” under CEQA pursuant to CEQA Guidelines section 15378 (b)(5) as an organizations or administrative activity of the government that will not result in direct or indirect physical changes in the environment.
ATTACHMENTS
1. Dune Drifter LLC Agreement for Caltrans Encroachment Permit (Pgs. 3-12) Submitted By: Mark McAvoy Approved: .David A Kiff
Mark McAvoy, Director of Public
Works & Utilities
Dave Kiff, City Manager
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APPROVE AN AGREEMENT WITH DUNE DRIFTER LLC FOR CALTRANS
ENCROACHMENT PERMIT PROCESSING
June 23, 2026
Report Prepared By: Coordinated With:
Thomas Perez, City Engineer Patrick Donegan, Assistant City Attorney 4 of 744
1 Developer Indemnity and Reimbursement Agreement - Caltrans Permit
DEVELOPER INDEMNITY, REIMBURSEMENT, AND AGENCY AGREEMENT
FOR CALTRANS ENCROACHMENT PERMIT / CONSTRUCTION
AUTHORIZATION
This Developer Indemnity, Reimbursement, and Agency Agreement (“Agreement”) is entered into as of June ___, 2026 (“Effective Date”), by and between the City of Laguna Beach, a California municipal corporation (“City”), and Dune Drifter LLC, a Delaware Limited Liability Company (“Developer”). City and Developer are sometimes referred to individually as a “Party” and collectively as the “Parties.”
RECITALS
A. Developer proposes to design and construct certain improvements associated with the Pacific Edge Hotel parking structure project, including work within, under, adjacent to, or affecting State Route 1 / Coast Highway and related Caltrans facilities, easements, or right-of-way, as more particularly described in Exhibit A (the “Project” or “Work”).
B. The Work may include the construction, removal, replacement, protection, shoring, monitoring, repair, or modification of footings, retaining-wall support improvements, structural support elements, temporary works, traffic control, and other related work shown in plans reviewed or approved by City and to be approved by Caltrans.
C. Caltrans has required City to be the applicant, permittee, or local public agency sponsor for the Caltrans encroachment permit, permit rider, consent, or other construction authorization for the Work (collectively, the “Caltrans Permit”), while Developer or its engineer will be identified as City’s authorized agent, engineer, representative, contractor, or applicant contact for purposes of the Caltrans application and administration of the Caltrans Permit. However, nothing in this Agreement shall be construed to create an employer-employee relationship between Developer (or any of its employees, agents, engineers, etc.) and the City. Each Party's personnel shall at all times remain solely the employees or agents of that Party, and that Party shall retain exclusive responsibility for the supervision, direction, compensation, benefits, withholding of taxes, and all other obligations arising from such employment. Neither Party shall represent or hold out any employee, agent, or representative of the other Party as its own employee for any purpose whatsoever.
D. City is willing to allow its name to be used as applicant or permittee and to authorize Developer to act as City’s limited agent for the Caltrans Permit solely to facilitate the Project and only on the terms stated in this Agreement. City will not fund, design, or construct the Work. City will not own, operate, or maintain any Project improvements except to the extent expressly required by the Caltrans Permit or a City-signed document, and, as between City and Developer, Developer will assume the Project-related obligations allocated to Developer under this Agreement.
E. Developer is the party requesting and benefiting from the Work. Developer agrees to perform or cause the Work to be performed at its cost, to comply with the Caltrans Permit and applicable law, to reimburse City for the reasonable City costs described in this Agreement, and to defend and indemnify City to the extent provided in this Agreement and permitted by law.
F. This Agreement allocates responsibilities and risk between City and Developer. It is not intended to amend, release, relocate, or expand any recorded easement, right-of-way, Caltrans property right, City property right, or other real-property interest. Any such change must be made by a separate written instrument executed by the parties holding the affected property interests.
NOW, THEREFORE, for good and valuable consideration, the receipt and adequacy of which are acknowledged, the Parties agree as follows:
Attachment 1
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2 Developer Indemnity and Reimbursement Agreement - Caltrans Permit
1. Definitions.
1.1. “Caltrans” means the State of California, acting by and through the California Department of Transportation, and its directors, officers, officials, employees, agents, contractors, consultants, inspectors, and representatives.
1.2. “Caltrans Permit” means each Caltrans encroachment permit, permit application, permit rider, consent, authorization, condition, general provision, special provision, plan approval, field directive, notice, or other Caltrans document or requirement that applies to the Work.
1.3. “City Indemnitees” means City and its elected and appointed officials, officers, employees, agents, attorneys, consultants, engineers, inspectors, and representatives, but only while acting in their official capacities for City in connection with the Project, Work, Caltrans Permit, or this Agreement.
1.4. “Claims” means third-party claims, demands, causes of action, suits, proceedings, damages, losses, liabilities, judgments, penalties, fines, liens, stop-payment notices, assessments, and reasonable costs, fees, and expenses, including reasonable attorneys’ fees, consultant costs, and expert costs, to the extent arising out of or relating to the Project, Work, Caltrans Permit, or a breach of this Agreement. “Claims” also includes amounts Caltrans or another governmental agency requires City to pay because of the Work. “Claims” do not include City overhead or consequential damages except to the extent expressly reimbursable under this Agreement or asserted by a third party.
1.5. “Developer Parties” means Developer and Developer’s owners, members, managers, partners, officers, directors, employees, agents, representatives, consultants, engineers, design professionals, contractors, subcontractors, suppliers, successors, assigns, and other persons acting under Developer’s direction or control in connection with the Work or the Caltrans Permit.
2. Limited Agency and Caltrans Application.
2.1. City authorizes Developer and Developer’s designated engineer or representative to act as City’s limited agent solely for preparing, submitting, processing, revising, and administering the Caltrans Permit application and related technical submittals for the Work. Developer’s agency is limited to the Project and does not authorize Developer to bind City to any obligation, waiver, settlement, property conveyance, easement amendment, indemnity, maintenance obligation, or expenditure unless City has approved the obligation in writing.
2.2. Developer shall prepare the Caltrans application package, plans, calculations, reports, environmental materials, insurance certificates, bonds, letters, fees, and other submittals required by Caltrans or reasonably required by City for its role as applicant or permittee. City may reasonably review, approve, condition, reject, or require changes to application materials before submission to Caltrans.
2.3. Developer shall provide City with complete copies of all submittals to and correspondence with Caltrans, and shall promptly provide City with all Caltrans comments, notices, conditions, permits, field directives, invoices, inspection reports, notices of non-compliance, and notices of completion related to the Work.
2.4. City may revoke or suspend Developer’s agency authority upon written notice if Developer materially fails to comply with this Agreement, the Caltrans Permit, City requirements, or applicable law.
3. Developer Responsibility for the Work.
3.1. Developer shall perform, or cause to be performed, all Work at Developer’s sole cost and expense and in accordance with all approved plans, the Caltrans Permit, City approvals, applicable laws, professional standards, and the requirements of all agencies with jurisdiction. 4 6 of 744
3 Developer Indemnity and Reimbursement Agreement - Caltrans Permit
3.2. Developer shall not commence Work unless and until all required City approvals, Caltrans approvals, permits, insurance, bonds, traffic-control approvals, shoring approvals, utility clearances, and preconstruction meeting requirements have been obtained and satisfied.
3.3. Developer shall use licensed and insured contractors, subcontractors, design professionals, inspectors, and consultants. Developer shall ensure that each person or entity performing Work complies with the Caltrans Permit and this Agreement.
3.4. Developer shall be responsible for construction means and methods, site safety, traffic control, temporary support, shoring, excavation safety, protection of the highway, protection of the public, worker safety, utility protection, environmental compliance, stormwater compliance, hazardousmaterials compliance, and repair of damage to the extent caused by the Work or by a Developer Party.
Developer is not responsible under this Agreement for pre-existing conditions, City-furnished design defects, or the active negligence or willful misconduct of City or Caltrans, except to the extent Developer or a Developer Party exacerbates such condition or the obligation is expressly assumed by Developer under this Agreement.
3.5. City’s review, approval, signature, inspection, or acceptance of any application, plan, permit, certificate, work product, or completed Work shall not, by itself, make City responsible for the design, construction, means and methods, safety, legality, adequacy, or performance of the Work, and shall not reduce Developer’s obligations under this Agreement except to the extent caused by City’s active negligence, willful misconduct, or City-furnished defective design.
4. Assumption of Permit Obligations and Pass-Through of Caltrans Requirements.
4.1. As between City and Developer, Developer assumes the obligations, costs, liabilities, and responsibilities imposed on City as applicant, permittee, local public agency, or sponsor under the Caltrans Permit to the extent arising out of or relating to the Project, the Work, Developer’s requested use of City as applicant or permittee, or the acts or omissions of any Developer Party. Developer does not assume obligations to the extent they arise from City’s unrelated municipal activities, City-owned facilities not modified or affected by the Work, if any, City-furnished defective design, or City’s active negligence or willful misconduct.
4.2. Developer shall comply with, and shall cause the Developer Parties to comply with, all Caltrans Permit general provisions, special provisions, lane-closure requirements, insurance requirements, contractor authorization forms, quality-assurance requirements, testing requirements, field directives, and final acceptance requirements.
4.3. If Caltrans requires City to sign a contractor authorization form, letter of authorization, encroachment permit rider, maintenance undertaking, notice of completion, or similar document, Developer shall provide all supporting information reasonably requested by City and shall reimburse and indemnify City for Project-related obligations assumed by City to the extent provided in this Agreement. City shall provide Developer a reasonable opportunity to review any such document before signature if it imposes a material obligation on City or Developer, except when Caltrans requires immediate signature or the document is materially consistent with the approved Caltrans Permit and this Agreement.
4.4. Developer shall not represent to Caltrans or any third party that City has accepted responsibility for Developer’s construction, maintenance, repair, restoration, or funding obligations except as expressly stated in a City-signed document. Any Project-related City obligation arising solely because Caltrans requires City to be applicant or permittee shall be assumed and reimbursed by Developer under this Agreement, except to the extent prohibited by law or expressly excluded by this Agreement.
4.5. City shall reasonably cooperate with Developer in processing the Caltrans Permit and related approvals, including timely signing applications, letters, and permit documents that are consistent with 5 7 of 744
4 Developer Indemnity and Reimbursement Agreement - Caltrans Permit this Agreement and reasonably required by Caltrans. City may condition its cooperation on Developer’s compliance with this Agreement, but City shall not unreasonably withhold, condition, or delay signatures or approvals needed for the Project.
5. Reimbursement of City Costs.
5.1. Developer shall reimburse City for reasonable, documented costs incurred by City in connection with the Project, the Caltrans Permit, this Agreement, or any Claim, including staff time at City’s adopted or customary billing rates, City Attorney costs, special counsel costs, engineering review, inspection, consultants, risk-management review, permit fees, Caltrans charges, public-records responses, administrative costs, emergency response, enforcement, and amounts City is required to pay to Caltrans or another agency because of the Work. Reimbursable costs do not include City’s general overhead, unrelated municipal costs, or costs caused by City’s active negligence, willful misconduct, or breach of this Agreement.
6. Indemnity.
6.1. Developer shall defend, indemnify, and hold harmless the City Indemnitees from and against Claims to the extent arising out of, pertaining to, or relating to: (a) the Project or Work; (b) the Caltrans Permit or City’s role as applicant, permittee, local public agency, sponsor, or signatory for the Project; (c) Developer’s role as City’s authorized agent, engineer, representative, contractor, or application contact; (d) the design, engineering, construction, shoring, excavation, support, inspection, testing, monitoring, maintenance, repair, removal, replacement, existence, operation, condition, failure, or use of the Work; (e) any act, omission, negligence, willful misconduct, breach, violation, or default by any Developer Party; (f) bodily injury, death, property damage, economic loss, loss of use, interference with access, business interruption, traffic impacts, or damage to Caltrans, City, public, private, or utility property caused by the Work or a Developer Party; (g) environmental, hazardous-materials, stormwater, ADA, labor, employment, stop-payment notice, mechanic’s lien, prevailing-wage, or worker-safety matters related to the Work; (h) any failure by Developer or a Developer Party to comply with the Caltrans Permit, this Agreement, approved plans, applicable law, or agency requirements; (i) any claim by Caltrans or another governmental agency for indemnity, reimbursement, field work, inspection, repair, restoration, penalties, permit charges, or other costs related to the Work; (j) any claim or damage as a result of any claim, allegation or investigation regarding Developer’s employees, agents, engineers, etc. being employees of the City.
6.2. Developer’s duty to defend shall arise upon City’s written tender of a potentially covered Claim and City’s delivery of information reasonably available to City regarding the Claim. Developer may defend under a reservation of rights and may seek allocation or reimbursement for uncovered matters as provided in this Agreement and applicable law.
6.3. Developer shall not be required to defend or indemnify a City Indemnitee to the extent a Claim is caused by the active negligence, sole negligence, or willful misconduct of that City Indemnitee, by a design defect furnished by City, or by matters for which indemnity or defense is prohibited by Civil Code Section 2782 or other applicable law.
6.4. If a Claim includes both covered and uncovered matters, Developer shall defend the covered portions of the Claim and pay a reasonable allocated share of defense costs on an ongoing basis, subject to later adjustment after final resolution. City shall be responsible for defense costs allocated to uncovered matters, including matters caused by City’s active negligence, willful misconduct, or City-furnished 6 8 of 744
5 Developer Indemnity and Reimbursement Agreement - Caltrans Permit defective design. Developer shall not settle any Claim in a manner that imposes liability, admission, obligation, restriction, or payment on City without City’s prior written consent, not to be unreasonably withheld, conditioned, or delayed.
6.5. Developer may control the defense of a covered Claim with counsel reasonably acceptable to City.
City may participate with separate counsel at City’s expense. Developer shall pay for City’s separate counsel only to the extent reasonably necessary because of an actual conflict of interest, requested injunctive or mandamus relief against City, potential criminal or regulatory exposure of City, or a material uncovered exposure that makes joint defense inappropriate. City may control the defense of any Claim seeking non-monetary relief against City or involving City’s police powers, public records obligations, legislative discretion, or governmental immunities, but Developer shall be responsible only for reasonable defense costs to the extent the Claim is covered by this Agreement.
6.6. Developer’s indemnity and defense obligations are independent of, and shall not be limited by, insurance coverage, policy limits, bonds, security, deposits, workers’ compensation laws, or any approval, inspection, acceptance, or participation by City or Caltrans. The obligations in this Section survive expiration, completion, suspension, revocation, termination, final acceptance, and abandonment of the Project or Work for so long as Claims may be asserted under applicable law or the Caltrans Permit, but only as to matters covered by this Agreement.
7. Insurance.
7.1. Before City submits or signs the Caltrans Permit application and before any Work begins, Developer shall provide insurance certificates and endorsements reasonably acceptable to City and, where required, Caltrans. The required coverages shall be commercially reasonable for the Work and no less than the limits required by Caltrans and City’s standard risk-management requirements for comparable private development work in or near public right-of-way. Unless City approves different limits in writing, the coverages shall include: (a) commercial general liability, including contractual liability, products/completed operations, explosion/collapse/underground coverage, and broad-form property damage, with limits of not less than $__________ per occurrence and $__________ aggregate; (b) automobile liability of not less than $__________ per accident; (c) workers’ compensation as required by law and employer’s liability of not less than $__________; (d) professional liability for design professionals of not less than $__________; (e) contractors pollution liability of not less than $__________ if excavation, hazardous materials, contaminated soil, dewatering, or stormwater risk is present; and (f) umbrella or excess liability as needed to meet the required limits.
7.2. All liability policies, except workers’ compensation and professional liability, shall name the City Indemnitees as additional insureds for ongoing and completed operations on ISO forms CG 20 10 and CG 20 37, or equivalents reasonably acceptable to City. Policies shall be primary and noncontributory to any City insurance or self-insurance, include waiver of subrogation where commercially available, and provide that coverage shall not be cancelled or materially reduced without at least thirty (30) days’ prior written notice to City, to the extent commercially available.
7.3. Developer shall require each contractor, subcontractor, engineer, consultant, and supplier performing material on-site Work to maintain insurance appropriate to its scope. Developer shall require additional-insured coverage for the City Indemnitees and, where required, Caltrans and the State of California, to the extent applicable to the party’s insurance and commercially available. Developer shall provide copies of such insurance documents upon reasonable request.
7.4. Insurance coverage does not limit Developer’s liability or obligations under this Agreement. If any required insurance is unavailable on commercially reasonable terms, Developer shall notify City before starting Work, and the Parties shall meet and confer regarding commercially reasonable alternative risk controls. City may reasonably require additional security, revised limits, or other risk 7 9 of 744
6 Developer Indemnity and Reimbursement Agreement - Caltrans Permit controls as a condition to proceeding, but such requirements shall be proportionate to the unavailable coverage and Project risk.
8. Bonds, Security, Liens, and Stop-Payment Notices.
8.1. Developer shall provide any performance bond, payment bond, maintenance bond, letter of credit, cash deposit, or other security required by Caltrans and any additional security reasonably required by City based on the nature of the Work and City’s role as permittee. City-required security shall be commercially reasonable, proportionate to the Project risk, and not duplicative of security already provided to Caltrans or City. Unless City waives the requirement in writing, bonds shall be issued by a surety admitted in California and rated not less than A-VII by A.M. Best, in forms reasonably acceptable to City.
8.2. Developer shall keep City and City property free from mechanic’s liens, stop-payment notices, bond claims, and similar claims arising from the Work. Developer shall cause any such claim affecting City to be released, bonded around, otherwise discharged, or contested in good faith with security reasonably acceptable to City within thirty (30) days after notice from City, or within ten (10) days if the claim creates an immediate risk to City property, public safety, or the Caltrans Permit.
9. Repair, Restoration, Maintenance, and Latent Defects.
9.1. Developer shall promptly repair, restore, or replace, at Developer’s cost, City, Caltrans, public, private, or utility property to the extent damaged, disturbed, or adversely affected by the Work or a Developer Party, whether the damage is discovered before, during, or after completion.
9.2. Developer shall be responsible for latent defects, warranty obligations, maintenance obligations, monitoring obligations, and corrective work to the extent arising from the Work for the longer of: (a) the period required by the Caltrans Permit; (b) the period required by City approvals, if any; (c) any warranty period required by Developer’s construction contracts; or (d) the period provided by applicable law. Developer is not assuming general City maintenance obligations or obligations unrelated to the Work.
9.3. If Developer fails to perform required repair, restoration, maintenance, monitoring, or corrective work after written notice and a reasonable opportunity to cure, City may perform or cause the work to be performed and Developer shall reimburse City for reasonable costs on demand. The cure period shall be ten (10) business days unless a longer period is reasonably required and Developer commences and diligently pursues cure. In an emergency, or where public safety or highway operations are at risk, City may act without prior notice but shall notify Developer as soon as reasonably practicable.
10. Default and Remedies.
10.1.Developer is in default if Developer materially fails to comply with this Agreement, the Caltrans Permit, City approvals, applicable law, insurance requirements, security requirements, payment obligations, or indemnity obligations and fails to cure within ten (10) days after written notice for monetary defaults or within thirty (30) days after written notice for non-monetary defaults. If a nonmonetary default cannot reasonably be cured within thirty (30) days, Developer is not in default if it begins cure within that period and diligently pursues cure to completion.
10.2.Upon default after any applicable notice and cure period, City may exercise available remedies reasonably necessary to protect City, Caltrans, the public, or the Project, including suspension or revocation of agency authority, notice to Caltrans, withholding of City approvals related to the Work, use of deposits or security, demand for cure, performance of corrective work at Developer’s expense, specific performance, injunctive relief, and recovery of damages, attorneys’ fees, and costs. City shall not obtain a duplicative recovery.
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7 Developer Indemnity and Reimbursement Agreement - Caltrans Permit
11. Records, As-Builts, and Completion.
11.1.Developer shall maintain complete records of the Work, including plans, permits, correspondence, field changes, inspection records, testing reports, monitoring data, RFIs, submittals, daily reports, claims, notices, and as-built drawings.
11.2.Before final completion, Developer shall provide City and Caltrans with as-built plans, certifications, warranties, releases, notices of completion, lien releases, monitoring reports, maintenance manuals, and other closeout documents required by City or Caltrans.
12. Notices.
12.1.All notices under this Agreement shall be in writing and delivered personally, by overnight courier, by certified mail, or by email with confirmation of receipt, to the following addresses, or to any changed address provided by notice:
City Developer
Address: ____________________ Address: ____________________ Attn: ____________________ Attn: ____________________
Email: ____________________ Email: ____________________
13. Assignment; Successors. Developer shall not assign this Agreement, the Caltrans Permit, or its agency authority without City’s prior written consent, which shall not be unreasonably withheld, conditioned, or delayed and may be conditioned on assumption by the assignee, evidence of financial capacity, and replacement insurance and security. No City consent is required for an assignment to an affiliate or project successor that assumes this Agreement in writing and provides City with substantially equivalent financial capacity, insurance, and security; provided that the Caltrans Permit may not be assigned or transferred except as allowed by Caltrans. This Agreement binds Developer and its permitted successors and assigns.
14. Third-Party Beneficiaries. This Agreement is for the benefit of City and the City Indemnitees.
Caltrans and the State of California are intended third-party beneficiaries only to the limited extent required by the Caltrans Permit or to enforce provisions that expressly require Developer to insure, reimburse, defend, indemnify, or protect City from Caltrans or State claims or obligations arising from the Work. No provision is intended to expand Developer’s obligations to Caltrans or the State beyond the Caltrans Permit and this Agreement. No other third party has enforceable rights under this Agreement.
15. Governing Law; Venue; Attorneys’ Fees. This Agreement shall be governed by California law.
Venue for any action arising out of this Agreement shall be in the Superior Court of the County of Orange, unless exclusive jurisdiction lies elsewhere. In any action to enforce this Agreement, the prevailing Party shall recover its reasonable attorneys’ fees and costs, in addition to any other available relief.
16. Interpretation; Severability. This Agreement shall be interpreted as if drafted jointly by the Parties.
If any provision is held invalid or unenforceable, the remaining provisions shall remain in effect, and the invalid provision shall be reformed to the maximum extent permitted by law to effect the Parties’ intent.
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8 Developer Indemnity and Reimbursement Agreement - Caltrans Permit
17. Entire Agreement; Amendment; Counterparts. This Agreement contains the entire agreement between City and Developer concerning its subject matter and supersedes all prior understandings on that subject. This Agreement may be amended only by a written instrument signed by both Parties.
The Agreement may be executed in counterparts and by electronic signature, each of which shall be deemed an original.
18. Authority. Each person signing this Agreement represents that he or she has authority to execute the Agreement on behalf of the Party identified and to bind that Party to the Agreement.
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective Date.
CITY: CITY OF LAGUNA BEACH, a California municipal corporation By: ________________________________________________
Name: ________________________________________________
Title: ________________________________________________ Date: ________________________________________________
Approved as to
form:
________________________________________________
DEVELOPER: DUNE DRIFTER LLC, a Delaware Limited Liability Company By: ________________________________________________
Name: ________________________________________________
Title: ________________________________________________ Date: ________________________________________________
Approved as to
form:
________________________________________________
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9 Developer Indemnity and Reimbursement Agreement - Caltrans Permit
EXHIBIT A
PROJECT / WORK DESCRIPTION
Project Name: Pacific Edge Hotel Parking Structure.
Project Location: 647 South Coast Highway.
Caltrans Facility: State Route 1 / Coast Highway; Post Mile: ORA 8.993.
Caltrans Permit / CEPS Tracking No.: ____________________.
Summary of Work: Construction associated with parking-structure footings and related highway-support footing work, including temporary support, shoring, excavation, demolition, removal, replacement, restoration, monitoring, traffic control, and all related work shown on plans approved by City and Caltrans.
Plans and Technical Documents: The plans, calculations, geotechnical reports, shoring plans, traffic-control plans, and related documents for the Project.
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EXHIBIT B
FORM OF CITY AUTHORIZATION LETTER TO CALTRANS
__________, 2026
Caltrans District 12
Encroachment Permits Office
1750 East 4th Street, Suite #100
Santa Ana, CA 92705
Re: Authorization of Developer / Engineer as City Agent for Caltrans Permit Application - Pacific Edge Hotel Parking Structure Project
The City of Laguna Beach authorizes Dune Drifter LLC and its designated project manager, Danielle Foley, to act as City’s limited authorized agent for purposes of preparing, submitting, revising, and processing the Caltrans permit application package for the Pacific Edge Hotel Park Structure project, located at 647 South Coast Highway. This authorization is limited to the application and administration of the Caltrans permit for the project and does not authorize the agent to bind City to any property conveyance, easement amendment, maintenance obligation, funding obligation, waiver, settlement, indemnity, or other obligation unless separately approved and signed by City.
The City requests that Caltrans copy both City and the agent on all permit correspondence, invoices, conditions, permit riders, notices, and approvals. This authorization may be revoked by City upon written notice to Caltrans.
If you have any questions, please contact me at 949-464-6688 or [email protected].
Sincerely,
Thomas Perez
City Engineer
City of Laguna Beach
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STAFF REPORT
Meeting Date:
June 23, 2026
CONSENT
19 SUBJECT: APPOINTMENTS TO HOSPITAL TASK FORCE
RECOMMENDATION: It is recommended that the City Council:
1. The hospital ad hoc committee recommends that the City Council appoint the 16 individuals listed in the staff report.
SUMMARY OF THE MATTER
In response to the potential closure of the Emergency Room and other site plan changes at Mission Hospital Laguna Beach in South Laguna, the City Council, at its March 10, 2026, meeting, directed the hospital ad hoc committee to work with staff and the City Clerk on interviews and appointments to establish a community advisory committee, and also approved the proposed Hospital Action Plan Framework (Attachment 2). The City Clerk received nearly 30 applications for those interested in being appointed to the Hospital Task Force (Attachment 1).
On May 26, 2026, the City Council directed the hospital ad hoc committee to interview the applicants, and return to the City Council with its recommendations for appointments to the task force.
On June 2, 2026, the ad hoc committee, Councilmembers Alex Rounaghi and Bob Whalen, interviewed the applicants available on that date, and received written responses from those unable to make the interview date.
DISCUSSION
After carefully reviewing the applications and responses, the ad hoc committee recommends that the City Council appoint the following 16 individuals to the Hospital Task Force:
Balekian Alex Representing Medical Field Expertise
Casale David Representing admin / medical admin
Chadima Steve Representing community group
Dodge Christina Representing Medical Field Expertise
Geisman Ronald Representing Medical Field Expertise
Gibbs Thomas Planning Expertise / Background
Kelliher Matt Representing admin / medical admin
Nissanka Amila Representing Medical Field Expertise
Peluso Aaron Representing community group
Prietto Carlos Representing admin / medical admin
Rivera Mark Representing admin / medical admin
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APPOINTMENTS TO HOSPITAL TASK FORCE
June 23, 2026
Rubal Jorge Representing Medical Field Expertise
Siew Melissa Representing Medical Field Expertise
Talarico Aaron Planning Expertise / Background
Thomas John B. Representing community group
Triebwasser Harvey Representing Medical Field Expertise For those who applied and were not selected, we offer our sincere thanks for applying. For those interested, the Task Force sessions will be open to the public with notice provided in advance.
FINANCIAL ANALYSIS
The recommended action has no financial impact on the budget.
ENVIRONMENTAL ANALYSIS
The recommended action has no environmental impact.
ATTACHMENTS
1. Applications (Pgs. 3-90)
2. Hospital Action Plan Framework (Pgs. 91-92)
Submitted By: Ann Marie McKay Approved: .David A Kiff
Ann Marie McKay, City Clerk Dave Kiff, City Manager
Report Prepared By: Coordinated With:
Ann Marie McKay, City Clerk Alex Rounaghi, Council Member Bob Whalen, Council Member
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Attachment 1
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ALEX A. BALEKIAN, MD, MSHS
1146 N. Central Ave, #335
Glendale, CA 91202
EDUCATION
MD UC San Diego Sep 1999 – Jun 2003
MS UCLA School of Public Health Sep 2008 – Jun 2009
Health Services Research
BS UCLA Sep 1995 – Jun 1999
Physiological Sciences
POST-GRADUATE TRAINING
Res Internal Medicine: University of Texas, Southwestern Jul 2003-Jun 2006 Fell Pulmonary/Critical Care: UCLA Jul 2006-Jun 2009
LICENSURE AND BOARD CERTIFICATION
Medical Board of California, A96050 Current
Medical Board of Illinois, 036154174 Current
Medical Board of New York, 307042 Current
Medical Board of Texas, M0009 Current
ABIM: Internal Medicine Current
ABIM: Pulmonary Medicine Current
ABIM: Critical Care Medicine Current
HONORS AND AWARDS
UCLA Alumni Scholar 1995-1999
UCLA Regents Scholar 1995-1999
UT Southwestern, Outstanding Teacher 2004
UT Southwestern, John S. Miller Award for Outstanding Senior Resident 2006 American Thoracic Society, Early Career Achievement Award 2016 Keck School of Medicine, Year II Faculty Teaching Award 2016 American College of Chest Physicians, Distinguished CHEST Educator 2018
TEACHING AND RESEARCH EXPERIENCE
Keck School of Medicine of USC, Los Angeles, CA Oct 2009 – Jan 2019 Assistant Professor of Clinical Medicine, Division of Pulmonary/Critical Care • System Chair, USC Keck School of Medicine, Respiratory System • Discipline Coordinator, USC Keck School of Medicine, Evidence-Based Medicine • Associate Program Director, USC Pulmonary/Critical Care Fellowship • Assistant Director, Chest Clinic, LAC+USC Medical Center 5 5 of 836
SMALL BUSINESS EXPERIENCE
Clarkian Medical Corporation: Intensive Care Unit Staffing 2020 – Present Clarkian Hospitalist Corporation: Inpatient Hospitalist Staffing 2021 – Present Clarkian Pulmonary Corporation: Community Lung Clinic Coming in 2025
CLINICAL EXPERIENCE
Seton Medical Center, Daly City, CA Dec 2020 – Present
Director, Intensive Care Unit
Seton Medical Center, Daly City, CA Nov 2021 – Present
Director, Hospitalist Service
Providence Mission Hospital, Mission Viejo, CA Dec 2025 – May 2026 Pulmonary, Clinic Physician
Glendale Memorial Hospital, Glendale, CA Jul 2023 – Present Pulmonary, Attending Physician
Glendale Adventist Medical Center, Glendale, CA Jul 2023 – Present Pulmonary, Attending Physician
Glendale Memorial Hospital, Glendale, CA Jul 2023 – Present Pulmonary, Attending Physician
Health Alliance Hospital Mary’s Ave, Kingston, NY Apr 2023 – Dec 2025 Pulmonary, Attending Physician
St Francis Medical Center, Lynwood, CA Mar 2021 – Sep 2022 Critical Care, Attending Physician
Parkland Memorial Hospital, Dallas, TX Jul 2020 – Nov 2020 Critical Care, Attending Physician
Northridge Hospital Medical Center, Northridge, CA Jan 2019 – Jan 2024 Critical Care, Attending Physician
Garfield Medical Center, Monterey Park, CA Aug 2019 – Jun 2020 Director, Intensive Care Unit
Hollywood Presbyterian Medical Center, Hollywood, CA Mar 2019 – Jun 2019 Critical Care, Attending Physician
Keck School of Medicine of USC, Los Angeles, CA Oct 2009 – Jan 2019 Critical Care, Attending Physician
Pulmonary Medicine, Attending Physician
LAC+USC Medical Center, Los Angeles, CA Oct 2009 – Jan 2019 Critical Care, Attending Physician
Pulmonary Medicine, Attending Physician
Norris Cancer Hospital, Los Angeles, CA Oct 2009 – Jan 2019 Critical Care, Attending Physician
Pulmonary Medicine, Attending Physician
Kindred Hospital, Los Angeles, CA Mar 2008 – Feb 2010
Internal Medicine, Attending Physician
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Barlow Respiratory Hospital, Los Angeles, CA Mar 2007 – Sep 2007 Internal Medicine, Attending Physician
PUBLICATIONS
1. Balekian AA, Keeler E, Spiegel B. Cost-effectiveness of routine mediastinoscopy with endoscopic ultrasound versus positron-emission tomography for the staging of non-small cell lung cancer. Chest 2009 136:40S-h.
2. Susan R. Kahn MD, MSc, Wendy Lim MD, MSc, Andrew Dunn MD, Mary Cushman MD, Francesco, Dentali MD, Elie A. Akl, MD, MPH, PhD, Deborah J. Cook MD, MSc(Epi), Alex A.
Balekian, MD, MSHS, Russell C. Klein MD, Hoang Le, MD, FCCP, Mohammad Hassan Murad, MD, MPH: Prevention of Venous Thromboembolism in Non-Surgical Patients: An ACCP Evidence-Based Clinical Practice Guideline (9th Edition). Chest, Feb 2012, vol 141(2), suppl e195S – e226S.
3. Balekian AA, Gould MK. Predicting in-hospital mortality among critically ill patients with endstage liver disease. Journal of Critical Care, 2012 Dec:27(6):740 e1-7.
4. Balekian AA, Gould MK. AHRQ Spotlight: The Nodule that Wouldn’t Grow. December 2012, http://webmm.ahrq.gov/case.aspx?caseID=287
5. Howington J, Blum MG, Chang AC, Balekian AA, Murthy SC. Treatment of Stage I and II NonSmall Cell Lung Cancer. Diagnosis and Management of Lung Cancer, 3rd edition. American College of Chest Physicians Evidence-Based Clinical Practice Guideline. Chest 2013 May;143(5 Suppl):e278S-313S.
6. Ramnath M, Dilling TJ, Harris LJ, Kim AW, Michaud GS, Balekian AA, Diekemper R, Detterbeck FC, Arenberg DA. Treatment of Stage III Non-Small Cell Lung Cancer. Diagnosis and Management of Lung Cancer, 3rd edition. American College of Chest Physicians EvidenceBased Clinical Practice Guideline. Chest, 2013 May;143(5 Suppl):e314S-40S.
7. Balekian AA, Silvestri GA, Simkovich SM, Mestaz PJ, Sanders GD, Daniel J, Porcel J, Gould MK. Accuracy of clinicians and models for estimating the probability that a pulmonary nodule is malignant. Ann Am Thorac Soc. 2013 Dec;10(6):629-35.
8. Balekian AA, Fisher JM, Gould MK. Brain Imaging for Staging of Patients with Clinical Stage IA Non-Small Cell Lung Cancer in the National Lung Screening Trial: Adherence with Recommendations From the Choosing Wisely Campaign. Chest. 2015 Sep 10.
9. Balekian AA, Tanner NT, Fisher JM, Silvestri GA, Gould MK. Factors Associated with a Positive Baseline Screening Exam Result in the National Lung Screening Trial. Ann Am Thorac Soc. 2016 Sep;13(9):1568-74.
10. Feller-Kopman DJ, Reddy CB, DeCamp MM, Diekemper RL, Gould MK, Henry T, Iyer NP, Lee YCG, Lewis SZ, Maskell NA, Rahman NM, Sterman DH, Wahidi MM, Balekian AA. Official American Thoracic Society / Society of Thoracic Surgeons / Society of Thoracic Radiology Clinical Practice Guideline, "Management of Malignant Pleural Effusions". American Journal of Resp and Critical Care Med. 2018 Oct 1; 198(7):839-849.
11. Iyer NP, Reddy CB, Wahidi MM, Lewis SZ, Diekemper RL, Feller-Kopman D, Gould MK, Balekian AA. Indwelling Pleural Catheter versus Pleurodesis for Malignant Pleural Effusions: A Systematic Review and Meta-Analysis. Annals Am Thorac Soc. 2019 Jan;16(1)124-131.
12. Balekian AA, Wisnivesky JP, Gould MK. Surgical Disparities among Stage I Lung Cancer Patients in the National Lung Screening Trial. Chest. 2019 Jan;155(1)44-52. 7 7 of 836
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PROFESSIONAL EXPERIENCE
Chairman and CEO for Strategic Sourcing Advisors, LLC | Laguna Beach, CA| 2025 – Present
Fractional Leadership: Provide executive-level strategic sourcing and supply chain consulting for small-to-mid-sized health systems. Margin Optimization: Develop customized cost-reduction roadmaps for nonlabor and purchased services, significantly enhancing institutional operating margins.
Advisory: Act as a Key Opinion Leader (KOL) on procedural analytics and innovative supplier relationship management.
Supplier Harmonization: creates coherent, resilient strategies, and an innovative supplier network that consistently supports your system's standard of care.
Director of Strategic Sourcing for the UC San Diego Health | San Diego, CA | 2021 – 2025
Executive Oversight: Directed a $1B annual budget across capital equipment, professional services, and medical supplies.
Transformation: Created the Strategic Sourcing Department and re-engineered the entire procurement lifecycle to balance clinical requirements with aggressive fiscal targets, resulting in $100M+ in savings.
Stakeholder Alignment: Collaborated with health system leadership to ensure sourcing strategies supported long-term patient care and operational goals.
Procurement Analyst V & IV for the UC San Diego Health | San Diego, CA | 2018 – 2021
Data-Driven Results: Implemented a strategic sourcing program utilizing advanced spend analytics and reengineered the RFP process that delivered $17M in annual cost reductions.
Contract Management: Managed complex professional services agreements, establishing best-in-class benchmarking and procurement practices.
Procurement Supervisor IV (Scientific & Medical) for the University of California, Riverside | Riverside, CA | 2014 – 2018
Specialized Procurement: Led campus-wide and UC-systemwide initiatives for highly technical commodities, achieving $1.7M+ in annual benefits. Project Leadership: Managed the end-to-end purchase of a $5.5M fMRI brainimaging center and the university’s first 3D metal printer. ESG Integration: Successfully balanced economic value with the university’s sustainability and social justice objectives.
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Procurement Specialist for the University of Pittsburgh | Pittsburgh, PA | 2005 – 2013 Liaison Excellence: Partnered with the CFO and 11 academic centers to streamline the B2P cycle.
EARLY CAREER HISTORY
Administrator / Midwest Unit Officer for Mercer Human Resource Consulting | Pittsburgh, PA. Operational Growth: Scaled revenue by $2.25M annually for the Retirement Practice; and Change Management: Led cross-practice international teams, introduced project management and marketing frameworks across 8 offices in 7 states. (2000 – 2005)
Manager of Special Projects for Reed Smith LLP. Developed econometric models for merger profitability and firm-wide P&L packages, introduced project management frameworks across 6 offices in 3 states. (1993 – 1999) Business/Commercial Manager for the Elliott Company. Authored 5-year business plans and product cost models for a high-output Small Business Unit. (1980 – 1993)
EDUCATION & CERTIFICATIONS
MBA, Finance/Operations | Cum Laude, Beta Gamma Sigma | Duquesne University
BS, Industrial Relations & BS, Economics | University of North Carolina at Chapel Hill
CPSM (Certified Professional in Supply Management) | CPM (Certified Purchasing Manager)
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-I am an MICN (Mobile Intensive Care Nurse) which answers paramedic calls and gives base hospital orders.
- STEMI and Stroke receiving center at Mission Viejo
-Level 2 trauma at Mission Viejo
- Member of Physician Collaboration Counsel
- Currently serve as a relief charge.
- Education for all staff at Laguna Beach Emergency Room on the implementation of the new Stroke protocol and administration of TNK to help break down clots during a stroke.
EDU CA TIO N
-University of Alabama Political Science major 1989-1991 -University Georgia at Darton bachelor’s degree in nursing 1997 -University of Georgia System bachelor's in psychology 1997 -Chamberlain University BSN in Nursing policy and procedure - 2014 - Capstone @University of Alabama Master's in nursing program - current-Current licensure in California
-Current Certified Pediatric Nurse National Certification -Current ENPC, TNCC and PALS.
-Hold national certification in ATLS/ATCN
-Certification in ACLS, PALS, BLS, NRP
SKILLS/RES PONS IB ILITIES
-Effective communicator with patients, staff and family. - Quick and effective critical thinker in all situations from minor to the most lifethreatening. - Productive problem solver
- Highly motivated
- Initial triage assessment and appropriate placement of patients. - Utilize basic and advanced standard nursing process: to provide patient care and enhance daily health care practices.
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- Demonstrate ongoing needs and education opportunities within my field and with coworkers to assist my team members with leadership and direction to reach optimal standards of patient care
- Experience with staff development and improvement by being a preceptor and on educational boards.
- Continually search out opportunities for my own professional development and improvement and bring what i have found by my team members to assist all in providing perfect care and education to patients and families.
- Collaborate with all team members on every level to identify patients' conditions, needs, and improve outcomes even after discharge.
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CITY OF LAGUNA BEACH
APPLICATION FOR APPOINTMENT TO:
2026/27 Hospital Task Force – Mission Hospital, Laguna Beach
PERSONAL INFORMATION
NAME:
Matt Kelliher
CURRENT / PERMANENT RESIDENCE ADDRESS:
Dana Point, CA
YEARS RESIDING IN LAGUNA BEACH¹
(if applicable):
20 Years in DP
PHONE NUMBER:
EMAIL ADDRESS:
OCCUPATION:
Retired
BACKGROUND & COMMUNITY INVOLVEMENT
CIVIC / COMMUNITY INVOLVEMENT:
Board Member of Monarch Bay Terrace HOA; Member of Heart and Vascular Institute Advisory Council Mission Hospital
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REASON FOR INTEREST IN THIS TASK FORCE:
I have much career experience in healthcare strategy, I am a user of Mission Hospital Laguna including the ER and various support services. My residence while in Dana Point, is in very close proximity to the hospital campus.
RELATED EXPERIENCE: Could include, but is not limited to: persons who have worked in hospital, EMS, or similar healthcare setting; persons with long-time knowledge of this hospital's role and history; personal experience with Mission Hospital / Laguna Beach, and more.
I have worked in healthcare at Harvard, UCSD regarding hospital expansion/downsizing and co-location of services. I am a systems engineer with 40 years senior leadership experience in medical centers and community health services in US and internationally.
As a user of the Laguna hospital emergency room, I have a direct knowledge of the situation. I have been briefed by Mission Hospital management on their view of the current circumstances.
TASK FORCE-SPECIFIC QUESTIONS
Personal experience with Mission Hospital, Laguna Beach, and direct connections to its current operations:
I have been a patient in both Laguna Hospital and “big” Mission. I have been appointed to the Mission Hospital Heart and Vascular Advisory Council and I am interacting with the Mission Quality Dept on various initiatives there.
Perspectives, interest, or experience in overall site visioning:
The Mission Hospital / Laguna Beach campus is a large site. Discussions may include health services, parking, housing, and more.
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I personally would like to find a path forward which aligns community interests with those of Mission Hospital. I believe we need continuity of services on the campus which enables the community to receive emergency care while supporting the re-engineering of services between various locations.
Schedule constraints (if any) for Task Force meetings beginning June 2026:
We envision this Task Force meeting fairly frequently, at least initially — possibly 2× a month for 3–4 months, in the early evening for approximately 90 minutes.
I will be on vacation the last 2 weeks of July. Otherwise I should be able participate as needed.
DECLARATION
I declare under penalty of perjury that the information contained in this application is true and correct, and I understand that any falsification or omission may be cause for disqualification. I understand and agree to the following: a) that any or all information on this form may be verified and b) that this document is a public record subject to disclosure under the Public Records Act.
SIGNATURE:
ME Kelliher. 4/17/26
DATE:
4/17/26
YOU ARE ENCOURAGED TO SUBMIT A RESUME WITH THIS APPLICATION AND/OR ATTACH A SEPARATE DOCUMENT IF MORE SPACE IS NEEDED.
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CITY OF LAGUNA BEACH
APPLICATION FOR APPOINTMENT TO:
2026/27 Hospital Task Force – Mission Hospital, Laguna Beach
PERSONAL INFORMATION
NAME:
CURRENT / PERMANENT RESIDENCE ADDRESS:
EMAIL ADDRESS:
OCCUPATION:
BACKGROUND & COMMUNITY INVOLVEMENT
CIVIC / COMMUNITY INVOLVEMENT:
REASON FOR INTEREST IN THIS TASK FORCE:
RELATED EXPERIENCE: Could include, but is not limited to: persons who have worked in hospital, EMS, or similar healthcare setting; persons with long-time knowledge of this hospital's role and history; personal experience with Mission Hospital / Laguna Beach, and more.
Amila Nissanka
YEARS RESIDING IN LAGUNA BEACH¹
(if applicable):
<1 year
PHONE NUMBER:
Physician; Medical Director & Owner, Laguna Urgent Care - Medical Director and Owner of Laguna Urgent Care, serving the Laguna Beach community with walkin medical care 7 days per week. - Provide care for residents, visitors, and local workforce, including acute care, occupational health, and public safety personnel.
- Established relationships with local organizations, including city departments for pre-employment and workers’ compensation services
As a frontline urgent care physician and owner of a medical clinic in Laguna Beach, I directly see the impact that reduced access to emergency and acute care services has on our community. The closure of the Mission Hospital Emergency Department has significant implications for patient safety, care delays, and strain on nearby healthcare systems. I am deeply invested in ensuring that Laguna Beach residents, and public safety personnel have timely access to appropriate levels of care. ¹ Residency in Laguna Beach may be advantageous for an appointment to this Task Force, but it is not required.
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TASK FORCE-SPECIFIC QUESTIONS
Personal experience with Mission Hospital, Laguna Beach, and direct connections to its current operations:
Perspectives, interest, or experience in overall site visioning:
The Mission Hospital / Laguna Beach campus is a large site. Discussions may include health services, parking, housing, and more.
Schedule constraints (if any) for Task Force meetings beginning June 2026:
We envision this Task Force meeting fairly frequently, at least initially — possibly 2× a month for 3–4 months, in the early evening for approximately 90 minutes.
DECLARATION
I declare under penalty of perjury that the information contained in this application is true and correct, and I understand that any falsification or omission may be cause for disqualification. I understand and agree to the following: a) that any or all information on this form may be verified and b) that this document is a public record subject to disclosure under the Public Records Act.
YOU ARE ENCOURAGED TO SUBMIT A RESUME WITH THIS APPLICATION AND/OR ATTACH A SEPARATE DOCUMENT IF MORE SPACE IS NEEDED.
EMAIL COMPLETED APPLICATION TO: [email protected] - Physician and Medical Director of Laguna Urgent Care, managing day-to-day operations and clinical care.
- Experience triaging and managing conditions that would traditionally present to an emergency department. Familiar with local patient population needs, including residents, tourists, and workforce. - Experience coordinating care transitions to higher levels of care, including hospital systems. - Understanding of healthcare systems, access challenges, and operational constraints In my role as an urgent care physician in Laguna Beach, I have frequently referred patients to Mission Hospital, Laguna Beach for higher levels of care when necessary. I am familiar with its role as a critical access point for emergency services in the community.
From a healthcare perspective, maintaining medical services on this campus should be a priority, given its strategic importance to the Laguna Beach community.
Potential considerations include:
• Emergency stabilization services
• Outpatient specialty and diagnostic services
• Integration with regional healthcare system
I work full-time at my clinic from 9:00 AM to 5:00 PM, Monday through Friday, seeing walk-in patients. I am generally available for evening meetings after work and can accommodate the proposed schedule of approximately twice monthly meetings.
SIGNATURE:
DATE: 04/17/2026
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Amila V. Nissanka, MD DABFM
Laguna Niguel, CA 92677
PROFESSIONAL SUMMARY
Board-certified physician with extensive experience in urgent care, telemedicine, disability assessments, and clinical leadership. Dedicated to advancing physician-led healthcare initiatives, fostering efficient and patient-centered environments, and contributing to the strategic success of medical organizations. Recognized for proven leadership in clinical practice and organizational collaboration, with a strong commitment to mentorship and innovative healthcare solutions.
EDUCATION
Doctor of Medicine (MD)
Windsor University School of Medicine, Cayon, St. Kitts (01/2011 – 05/2015) Bachelor of Science, Biology
York University, Bethune College, Toronto, Canada (09/1997 – 06/2002)
LICENSURE
• California Medical License: A 174462 (Expires: 08/31/2027) • Illinois Medical License: 036.157093 (Expires: 07/31/2026) • Illinois Controlled Substance License: 336.116280 (Expires: 07/31/2026) • Wisconsin Medical License: 74854-20 (Expires: 10/31/2027) • DEA Registration Number: FN0423892 (Expires: 10/31/2026)
CREDENTIALS & CERTIFICATIONS
• Board Certification: Family Medicine
• National Registry of Certified Medical Examiners (DOT) Certification: Certified Medical Examiner (Registry ID: 5865710056). Certified to perform physical qualification examinations for commercial motor vehicle drivers (Valid through 09/24/2034). • Advanced Cardiovascular Life Support (ACLS)
• Basic Life Support (BLS)
POSTGRADUATE TRAINING
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Family Medicine Residency Program
John H. Stroger, Jr. Hospital of Cook County, Chicago, IL (07/2018 – 06/2021) • Managed patients with diverse medical conditions in inpatient and outpatient settings. • Supervised junior residents and medical students, providing hands-on training and mentorship.
• Participated in M&M meetings, journal club, and resident didactic lectures.
Burn Fellowship
John H. Stroger, Jr. Hospital of Cook County, Chicago, IL (10/2017 – 06/2018) • Managed critically ill burn patients in inpatient settings, including resuscitation, operative care, and reconstructive operations.
• Conducted weekly outpatient follow-ups and supervised rotating medical students and residents.
PROFESSIONAL EXPERIENCE
Fellow
Cooperative of American Physicians, Inc. | Los Angeles, CA 06/2025 – Present
• Invited to partner with physician leaders to contribute to the continued success of the Cooperative for American Physicians organization and their members.
Owner & Lead Physician
Laguna Urgent Care | Laguna Beach, CA
02/2023 – Present
• Manage daily operations and clinical oversight of an urgent care clinic. • Provide care for patients of all ages, focusing on non-life-threatening conditions and preventative health.
• Offer a wide range of services, including X-rays, fracture care, laceration repairs, IV hydration, and medical weight loss programs.
• Ensure compliance with regulatory standards and maintain strong relationships with insurers and community partners.
Telemedicine Provider
Teladoc Health Medical Group | Remote
09/2021 – 09/2024
• Provide virtual primary care consultations to patients across multiple states using a secure telehealth platform.
• Perform comprehensive assessments, diagnose conditions, and prescribe treatments through audio and video interactions.
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Contract Physician
SLMG (Disability Assessments) | Various Locations
07/2022 – 02/2023
• Conducted detailed disability evaluations for Social Security and insurance claims. • Prepared comprehensive medical reports to assist in determining disability eligibility. • Ensured accurate documentation in compliance with federal and organizational standards.
Contract Primary Care Physician
Veterans Affairs | Oceanside Clinic, CA
09/2021 – 12/2021
• Delivered primary care and preventive health services to U.S. veterans in a multidisciplinary team environment.
• Managed chronic and acute medical conditions, ensuring adherence to evidence-based guidelines.
• Collaborated with nurse practitioners, RNs, and support staff to optimize care delivery and patient outcomes.
LEADERSHIP EXPERIENCE
Chief Resident
John H. Stroger, Jr. Hospital of Cook County (07/2020 – 06/2021) • Oversaw 36 residents, coordinated schedules, and led residency recruitment efforts. • Served as the primary liaison between residents and faculty to address challenges and enhance communication.
• Implemented strategic initiatives, including wellness programs and workflow optimization.
Communications Committee Leader
John H. Stroger, Jr. Hospital of Cook County (07/2020 – 06/2021) • Improved internal communication through newsletters and social media engagement. • Facilitated the residency's public presence and streamlined internal awareness of program updates.
GMEC Wellness & Business Committees Member
John H. Stroger, Jr. Hospital of Cook County (07/2020 – 06/2021) • Championed physician wellness initiatives and contributed to policy decisions impacting hospital operations.
• Planned and implemented programs aimed at minimizing physician burnout and promoting mental health support.
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Burn Fellowship Program Evaluation Committee Member
John H. Stroger, Jr. Hospital of Cook County (09/2017 – 06/2018) • Evaluated program structure, contributed to curriculum development, and represented the fellowship at national recertification panels.
SKILLS
• Practice management and team leadership
• Urgent care procedures: laceration repair, fracture care, and I&D • Proficient in telemedicine platforms
• Risk management and compliance expertise
• Excellent patient communication and empathy
COMMUNITY ENGAGEMENT
• Mentor to medical students and residents, providing clinical training and career guidance. • Active participant in health education initiatives within the Laguna Beach community. 42 42 of 836
A native Californian, Dr. Prietto attained a Bachelor of Arts as well as a Masters Degree in Education at Gonzaga University. He taught high school science and coached basketball for a short period before going on to medical school and graduating from the University of California, Irvine with Alpha Omega Alpha Honors. An internship at USC was followed by an orthopedic residency at University of California, Irvine and then a sports medicine fellowship at the Kerlan-Jobe Clinic.
Early in his orthopedic career, he helped establish a Neuro-Muscular basic science laboratory on the medical school campus at UCI, and participated in many basic science and clinical publications in the sports medicine world. He has lectured and taught arthroscopic procedures in a variety of settings both here and abroad. He was in the clinical practice of Orthopedics in Orange County from 1979 through 2019. He has served as the President and CEO of Hoag Orthopedic institute, Program Director for the Hoag Orthopedic Institute’s Sports Medicine Fellowship, and is presently the Executive Director of the Orthopedic Education and Research Institute (OERI) dba Hoag Orthopedics. He serves on the Boards of OERI, Bionutritional Research Group and the Mater Dei Foundation.
Dr. Prietto was the Head Team Physician at the University of Calif., Irvine and Mater Dei High School from 1979 through 2019. He has been a Clinical Professor of Orthopedics at UCI and is a member of the American Academy of Orthopedic Surgeons and the American Orthopedic Society for Sports Medicine.
He has also been recognized as a distinguished Alumnus of the University of California, Irvine Medical School. And he has been honored by his peers in Orange Coast Magazine on three occasions as one of the ‘Top Docs’ for his work as an Orthopedic surgeon in Orange County.
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A native Californian, Dr. Prietto attained a Bachelor of Arts as well as a Masters Degree in Education at Gonzaga University. He taught high school science and coached basketball for a short period before going on to medical school and graduating from the University of California, Irvine with Alpha Omega Alpha Honors. An internship at USC was followed by an orthopedic residency at University of California, Irvine and then a sports medicine fellowship at the Kerlan-Jobe Clinic.
Early in his orthopedic career, he helped establish a Neuro-Muscular basic science laboratory on the medical school campus at UCI, and participated in many basic science and clinical publications in the sports medicine world. He has lectured and taught arthroscopic procedures in a variety of settings both here and abroad. He was in the clinical practice of Orthopedics in Orange County from 1979 through 2019. He has served as the President and CEO of Hoag Orthopedic institute, Program Director for the Hoag Orthopedic Institute’s Sports Medicine Fellowship, and is presently the Executive Director of the Orthopedic Education and Research Institute (OERI) dba Hoag Orthopedics. He serves on the Boards of OERI, Bionutritional Research Group and the Mater Dei Foundation.
Dr. Prietto was the Head Team Physician at the University of Calif., Irvine and Mater Dei High School from 1979 through 2019. He has been a Clinical Professor of Orthopedics at UCI and is a member of the American Academy of Orthopedic Surgeons and the American Orthopedic Society for Sports Medicine.
He has also been recognized as a distinguished Alumnus of the University of California, Irvine Medical School. And he has been honored by his peers in Orange Coast Magazine on three occasions as one of the ‘Top Docs’ for his work as an Orthopedic surgeon in Orange County.
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Mark S. Rivera
___________________________________________________________________________________________________ PO Box 835 Corona del Mar, California 92625
1 RETIRED SENIOR-LEVEL MANAGED CARE EXECUTIVE
Recognized as a dynamic and innovative retired managed care veteran who optimized growth for an enterprising healthcare organization. Provider network specialist with 19+ years of experience who led professionals to achieve their strategic priorities. Brought success with providers, payers, and oversight entities throughout the United States. Strong people, and project management skills. Proficient in both English and Spanish.
AREAS OF EXPERTISE
• Complex Negotiations
• Strategic Thinking
• Performance
Improvement
• Persuasive
Communications
• State/Federal
Compliance
• Leadership/ Mentoring
• Financial Management
• Predictive Analytics
• Provider Relations
SELECT CAREER HIGHLIGHTS
➢ Completed health plan contracts including DOFR, language and capitated analysis and negotiations for bay area medical group for Medi-Cal, Medicare Advantage, and commercial products effective in 2022. ➢ Engaged by Molina Healthcare to negotiate complex managed care contracts over a two-year period. ➢ Recognized by HRSA as a national resource to FQHCs and federal staff on “value-based” configurations. ➢ Directed a department of 9 professionals at Loma Linda/ Adventist Health to analyze and negotiate reimbursements including capitation, fee-for-service, per diem, DRGs, value-based pricing, etc. ➢ Prepared financial projections and analysis to negotiate hundreds of contracts for a total of 7 Adventist Health hospitals delivering general acute care, tertiary, children’s and behavioral health inpatient services.
➢ Developed “bundled pricing” to secure 14 Center of Excellence contracts for solid organ and heart transplantation, and cardiovascular services generating millions in new revenue. Outstanding performance was rewarded with offer for a promotion to the position of Executive Director of the Transplant Institute. ➢ Used “pacesetter” approach with C-Suite executives to complete the ROI matrix tool (https://ybit.in/Jw8PF7) for the Michigan Primary Care Association. The tool is integral to a “value-based” managed care model.
➢ Improved clinical outcomes and STARS Rating at La Maestra CHC in San Diego by applying regression analysis to realize a 2.5% increase in patients with HeA1C < 7%. ➢ Delivered a two-part educational series on managed care concepts to over 200 HRSA officials located in 10 US HRSA Field offices. Engagement included curriculum/materials development, and 2-weeks of managed care contract training. The project was completed in 9 months with a 98% rating of "excellent." ➢ Led West-Coast team on a CMS-sponsored investigative research project in 4 major US markets to develop an early warning system for “steerage and discrimination” in Medicare Advantage marketing. ➢ Built and managed a premiere department of 14 healthcare professionals who served as the critical “link” to a countywide Medi-Cal provider network serving over 300,000 beneficiaries at CalOPTIMA. ➢ Developed and implemented a comprehensive Medi-Cal provider network and operations consisting of provider policies, education, database, credentialing, claims-support, and grievance system workflows while adhering to local, State, and Federal regulations. ➢ Completed a comprehensive rate, staff, and protocols analysis at California Department of Corrections and Rehabilitation that served as a precursor to receivership and a health system “makeover” in California. ➢ Consistently negotiated “double-digit” rate increases on behalf of Hoag Hospital and Loma Linda. ➢ Collaborated with the business office, legal, and finance departments to ensure contract compatibility.
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Mark S. Rivera
___________________________________________________________________________________________________ PO Box 835 Corona del Mar, California 92625
2 ➢ Developed and negotiated complex capitation fee structures and negotiated specialty OB/Gyn and Dermatology sub-capitation contracts capturing over $10 million in new revenue over an 18-month period. ➢ On behalf of Four Seasons Ambulatory Surgery Centers negotiated payer contracts and the recovered outstanding claims from totaling over $1.8 million during a 6-month engagement. ➢ Generated millions in new revenue through negotiations for Staff Builders Home Health Care during a 2- year engagement.
PROFESSIONAL EXPERIENCE
President, Managed Care Consulting, Inc. (mccfirm.com) Newport Beach, CA. (1996 - 2023) o Founded, developed, and sustained a managed care consulting firm with a national presence and a reputation for success.
o Engaged in 300+ healthcare projects to impact quality care/service, cost reduction, and efficiency.
OTHER PROFESSIONAL EXPERIENCE
➢ Director, Managed Care, Loma Linda University Medical Center (Adventist Health), Loma Linda, CA.
➢ Director, Contracts, Hoag Memorial Hospital Presbyterian, Newport Beach, CA. ➢ Manager/Director, Provider Network Development, Cal-OPTIMA, Orange, CA. ➢ Administrative Assistant, Kaiser Permanente, Orange County Outside Medical System, Anaheim, CA. ➢ Project Manager, CAPP Care, Inc. Fountain Valley, CA. ➢ Contracts Analyst/Negotiator, Diamond Benefits Group/Adventist Health, Diamond Bar, CA.
PROFESSIONAL AFFILIATIONS
❖ Healthcare Financial Management Association (HFMA), Southern California Chapter ❖ American Health Information Management Association (AHIMA) ❖ California Health Information Management Association (CHIA) IG Committee Member ❖ CSULB, Advisory Board Member, Health Care Administration Graduate Program ❖ Communities Joined in Action (CJA), Atlanta, Georgia
❖ Toastmasters International, Bronze Advanced Distinction, Newport Beach, California
PROFESSIONAL PRESENTATIONS
✓ Have delivered over 60 formal presentations to various professional audiences over the course of the past 24 years addressing a variety of healthcare topics.
EDUCATION
➢ Master of Public Health, University of Hawaii
➢ Bachelor of Science, Health Science, California State University, Long Beach ➢ Associate in Science, Physical Therapy, Cerritos College
TRAINING AND CERTIFICATIONS
• HRSA/ Management Solutions Consulting Group Certified Consultant • Predictive Analytics Program Two-year Certification, University of California, Irvine • AHIMA HIT Credential, AHIMA Commission on Certification, Cert: CHTS-2783 • HIT Pro Certification, Implementation Manager, Office of National Coordinator, Cert: 246754335 • Toastmasters International, Advanced Communicator Bronze Certificate
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Founded and directed a comprehensive treatment and training program for registered students.
Developed campus wide programs addressing: domestic violence; drug abuse; procrastination; smoking cessation.
1975--2002
1. Professor Human Development –Santa Ana College
2. Private Practice – Stephen Adams and Associates; Child Custody Evaluations Publications
Books Published
Schwartz, B, and Flowers, J. (2006). How to Fail as a Therapist, Atascadero, Ca: Impact Publishers Schwartz, B. and Flowers, J. (2008). Thoughts for Therapists, Atascadero, Ca: Impact Publishers Schwartz, B, and Wood, P. (1978). How to Get Your Children to Do What You Want Them To Do, Englewood Cliffs, NJ; Prentice-Hall.
Booraem, C. D., Flowers, J. V., & Schwartz, B. (1978). Help Your Child be Self-Confident. Englewood Cliffs, NJ: Prentice-Hall.
Flowers, J. V., Horsman, J. J., & Schwartz, B. (1981). Raising your gifted child. Englewood Cliffs, NJ:
Prentice-Hall.
Flowers, J. V., Schwartz, B., & Horsman, J. J. (1982). Raising your child to be a sexually health adult.
Englewood Cliffs, NJ: Prentice- Hall.
Flowers, J. V., & Schwartz, B. (1984). Newrosis: a humorous guide to new mental disorders. Englewood Cliffs, NJ: Prentice-Hall.
Chapters in Books
Flowers, J. V. & Schwartz, B. (1985). Behavioral group therapy with clients with homogeneous problems.
In D. Upper and S. M. Ross (Eds.) Handbook of Behavioral Group Therapy. New York: Plenum Press.
Selected Journal Articles
Booraem, C. D., Flowers, J. V., & Schwartz, B. (1993). Group therapy client outcome and satisfaction as a function of the counselor's use of rapid assessment instruments: as influenced by levels of computer assistance. Proceedings of the 1992 Western Psychological Association, 72, 135.
Flowers, J. V., Booraem, C. D., & Schwartz, B. (1992). Reliability and validity of a test for vocational 60 60 of 836
burnout, An invited article. Journal of Occupational Rehabilitation, 2, 1-7.
Flowers, J. V., Booraem, C. D., & Schwartz, B. (1993). The impact of computer scoring on the use of rapid assessment instruments by counselors, and subsequent impact on client outcome.
Proceedings of the 1992 Western Psychological Association. 72 135.
Flowers, J. V. , Booraem, C. D. & Schwartz, B. (1993). Group therapy client outcome and satisfaction as a function of the counselor's use of rapid assessment instruments: Influenced by levels of computer assistance. Small Group Research, 24, 116-126.
Flowers, J. V. , Booraem, C. D. & Schwartz, B. (1993). The impact of computer scoring on the use of rapid assessment instruments by counselors, and subsequent impact on client outcome. Computers in Human Service, 10, 9-15.
Presentations to Scientific Societies.
Numerous presentations to scientific societies from 1990-2004, citations available on request. 61 61 of 836
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GQR Healthcare - RN, Emergency Department - Kaiser SDMC San Diego, CA
04/2023 - 08/2023
Level III Trauma/ Stroke Receiving - 45 Beds
Providence Saint Joseph Medical Center - ER - RN, Emergency Department
Burbank
03/2020 - 01/2022
Non Trauma - 40 Beds
Gateways Hospital And Mental Health Center - Psychiatric Registered Nurse
Echo Park, CA
10/2020 - 11/2021
Providence Saint Joseph Medical Center - NeuroTele - Cardiac Monitor Technician
Burbank, CA
05/2019 - 03/2020
Impulse Ambulance - Emergency Medical Technician - B
North Hollywood, CA
09/2013 - 06/2019
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EMILY ANN SMITH
Laguna Beach, CA |
EDUC ATION
UNIVERSITY OF SOUTHERN CALIFORNIA, Los Angeles, CA August 2024 Master of Social Work
BOSTON UNIVERSITY, Boston, MA 2002
Bachelor of Science, Elementary Education
• Collegiate Athlete: Cross Country, Indoor/Outdoor Track | 4-year full athletic scholarship
PROFESSIONAL EXPERIENCE
EMANATE LOVE PODCAST, Laguna Beach, CA March 2026 – present • Solution focused mindset gathering that celebrates all humans. Shift your brain with experiential narrative
SPARKLE DIFFERENTLY NEWSLETTER Laguna Beach, CA September 2023 – 2024 MERCY HOUSE NEWSLETTER Santa Ana, CA
• Provide connection and community while recognizing and celebrating people that sparkle differently.
MERCY HOUSE INTERNSHIP, Santa Ana, CA August 2023 – 2024 Manager, Casa Querencia
• Managed OT Interns (occupational therapy) while creating and teaching culturally sensitive and trauma-informed psychoeducation and mindfulness groups to previously homeless individuals living with disabilities in public supported housing (PSH).
• Achieved over 50% club attendance with NO advertising. Created evidence-based curriculum: Love shark Program, “Doors to Success” program, power pancakes, Leader Ladder, “I am I can”, glitter yoga, Stress Alley, and M.A.P. It program.
• Engaged with clients doing case management, risk assessment, ethical decision-making skills, and professional code of ethics. Helped clients regulate with tactile mindfulness groups for all populations.
USC MSW USC and PRACTICUM May 2023 – August 2024
Research Presented International Trauma Conference with Bessel Van der Kolk May 2024 • Presented “You are 19-22% Short” U.S. Census Research at both the live poster session and online poster session. Gaps in data make research impossible for vulnerable groups. • Completed several community assessment reports and proposed policy in local communities in Orange County, California.
EMANATE LOVE ETCC | Newport Beach, CA 2018 – Present
Director
• Founded a nonprofit and began gold leaf experiential paint nights. Donated retreats and vacations.
PGA WEST (AirBNB/VRBO) | La Quinta, CA 2018 – 2020
Property Manager
• Achieved Superhost Status ($80k-$100k per year) by effectively managing client needs and providing exceptional vacation experience.
HARVARD BUSINESS SCHOOL (HBS) | Boston, MA 2000 – 2003
Project Manager (2002 – 2003); Intern (2000 – 2001)
• Oversaw content and logistics for multiple Executive Education programs for Harvard Business School. Worked on product development team at Harvard Business School Interactive (HBSi).
Coordinated with senior executives, HBS faculty, and staff to support e-learning CD platforms. • Sourced innovative product packaging materials for Leading Change and Organizational Renewal (LCOR) educational series.
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CAREGIVER AND ADVOCATE
Primary Caregiver and Advocate 2006 – 2015
• Partnered with Autism Partnership to identify, coordinate, and participate in intensive ABA therapy 22-30 hours per week for 6 years. Coordinated care with school districts, therapists, medical providers, and other specialized programs for neurodiverse children.
VOLUNTEER EXPERIENCE
Laguna Beach Tree Club 2025
• Free connection club dedicated to helping people in communities connect with themselves and each other in person through nature.
COURREGES ELEMENTARY SCHOOL | Fountain Valley, CA 2016 – 2019 Running Club Coach
• Founded elementary school running club. Trained 75+ PreK- 5th grade students twice weekly two seasons per year. Oversaw parent volunteers and ran time trial event at the end of each season. Drove increased participation through creative incentives (1000+ slurpees, weekly recognition). Used ABA tools to guide participants and incentivize them.
GIRL SCOUTS OF AMERICA | Fountain Valley, CA 2015 – 2017 Troop Leader
• Founded Brownie Troop #4645 for local group of 8 girls. Used ABA tools to guide activity.
CERTIFIC ATIONS AND ACHIEVEMENTS
Think:Kids (Massachusetts General Hospital) Collaborative Problem Solving Tier I Training 11/20/23 – 11/22/2023 La Mirada)
PESI: 34th Annual International Trauma Conference: Psychological Trauma: Neuroscience, Embodiment, and the Restoration of the Self Participant (5/17/23 – 5/20/2023 Live In-person) 6 Policy proposal for Americans with Disability (ADA) Compliance to the City Council in Laguna Beach (April 2023). Proposed ADA Policy (1990) to the City Council to become compliant.
Participant in 1st Settlement Agreement in the State of California between the Department of Managed Health Care (DMCH) and Anthem Blue Cross. (July 15, 2011). Enforcement Matter numbers 10-578, 11-347, 11-348, 11-349, 11-350, and 11-351. Insurance providers are finally mandated to cover Applied Behavior Analysis (ABA) Therapy for individuals with Autism. 71 71 of 836
City of Laguna Beach
Application for Appointment
2026/27 Hospital Task Force – Mission Hospital, Laguna Beach Personal Information
Name: Aaron Talarico
t/Permanent Residence Address:
Phone Number:
Occupation: Real Estate / Community Development. Founder and President, ParkTerra, Inc.
Civic / Community Involvement
• Parking, Traffic and Circulation Committee, City of Laguna Beach, Past Chair, 2012 to 2017
• Recreation Committee, City of Laguna Beach, Past Chair, 2010 to 2012 • CEQA Thresholds Task Force, City of Laguna Beach, 2016 • Laguna Canyon Task Force, City of Laguna Beach, 2014 to 2015 • Laguna Beach Chamber of Commerce, Director, 2012 to 2017 Reason for Interest in This Task Force
I have lived in Laguna Beach for forty years and have spent much of that time working on behalf of the city in some form, including past chair roles on the Parking, Traffic and Circulation Committee and the Recreation Committee, and service on the CEQA Thresholds and Laguna Canyon task forces. The Mission Hospital campus is one of the most consequential properties in the city, and what happens there will shape Laguna for generations. I would like to put my experience to work on this one.
The questions this Task Force will face (health services, parking, housing, and overall site visioning) sit at the intersection of community input and technical planning. That is the kind of work I have done both in my civic service and in my profession, and I think I can contribute on both fronts.
Related Experience
More than twenty years in California residential real estate, focused on entitlements and the repositioning of underutilized properties. I previously led the land company at Meritage Homes for eight years, where my team entitled and delivered more than thirty communities totaling roughly 2,500 residential units across Southern California. I now run ParkTerra, a development and investment platform backed by institutional capital, with day to day work in the frameworks most relevant to a site like Mission Hospital.
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BBA in Finance, University of Notre Dame.
My prior service in Laguna Beach gives me a working knowledge of how the city's commissions and committees engage with staff, council, and the public, and how to translate competing community priorities into recommendations that can actually move forward.
Personal Experience with Mission Hospital, Laguna Beach, and Direct Connections to Its Current Operations
I was born at Mission Hospital in 1980. My wife and I had planned to have our first child there in 2008, but the maternity ward had closed by then. The contraction of services on that campus over the years is part of why I care about what comes next.
More recently, I have used the Mission ER a number of times, taking my kids in for the things kids do, and bringing my parents in as well. Maintaining emergency services on this campus is critical, especially given how hard it can be to get yourself or a family member out of town to an ER during peak visitor season in Laguna, when traffic on Coast Highway and Laguna Canyon Road can come to a stop.
As a parent, the other piece that matters to me is Mission's integration with the CHOC system.
Knowing that if I ever had to bring one of my kids in for a serious issue they were already in CHOC's network (and would not need to be transferred cold) has been a meaningful comfort.
That kind of integrated care is exactly the capability we should be working to preserve on this campus.
Perspectives, Interest, or Experience in Overall Site Visioning The Mission Hospital site sits at a difficult intersection of competing priorities: preserving health services for an aging community, addressing housing pressure in a city where new supply is scarce, managing a parking and circulation footprint that already strains the surrounding street network, and respecting the character of a campus that has served the community for generations. Site visioning at this scale requires balancing those demands honestly rather than picking a winner upfront.
Professionally, I work on California land use and entitlement projects every week, on sites with layered considerations of zoning, infrastructure, parking, affordable housing requirements, and community integration. I have led the entitlement and repositioning of more than thirty residential communities across Southern California. As Past Chair of the city's Parking, Traffic and Circulation Committee, I also understand how parking and circulation decisions on a site like this ripple into the surrounding neighborhood.
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I declare under penalty of perjury that the information contained in this application is true and correct, and I understand that any falsification or omission may be cause for disqualification. I understand and agree to the following: a) that any or all information on this form may be verified and b) that this document is a p der the Public Records Act.
___________ _____________________
S Date
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CITY OF LAGUNA BEACH
HOSPITAL ACTION PLAN FRAMEWORK (DRAFT)
March 10, 2026
Objective: To work collaboratively with Providence Mission Hospital to: (i) understand, among other things, all legal requirements related to proposed changes at the Laguna Beach campus, local land use powers, State law, and the CA AG’s opinions/direction; (ii) develop a plan to retain an Emergency Room at the Laguna Beach campus and to unlock the potential for the site to provide additional medical, housing and other improvements beneficial to the residents of the City, and (iii) a financial return to Providence as the owner of the hospital site.
Determine Council and Community goals
Early Goals: Share knowledge, agree on data, communicate, preserve all community and City rights, preserve rapid access to a quality Emergency Room, even if stand-alone.
End Goal: Preserve rapid access to a quality Emergency Room, even if stand alone, at the hospital campus, provide effective re-use of the site that addresses City and community needs.
To Summarize key facts
• Want we know about the Providence merger and AG obligations • The law regarding closures, ERs
To Summarize Key Data
• ER and paramedic transport use patterns over the last four years, including time of day, day of week;
• Explanation of where ambulance transports go, what cases can be at ER vs. Urgent Care vs. some other outcome;
• Orange County EMS data, including the regional impact of a possible closure of the Providence Mission Hospital / Laguna Beach ER.
To Form Two Input Groups
• Form an internal Working Group comprised of Council Ad Hoc, City Manager, City Attorney, Community Development Director, Police Chief, Fire Chief, Marine Safety Chief
• Form external Advisory Group comprised of City Hospital Ad Hoc members and local residents.
To Bring on Consultant Assistance
Attachment 2
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• Issue an RFP for specialized assistance with hospital closure process, including rules relating to ERs.
• Issue an RFP for real estate consultant to help value the financial potential of the site.
To Provide Relevant Zoning Information
• Summary of the existing zoning
• If the City wanted to do a Specific Plan, what process would that involve. • Timing of any zoning changes.
• Understand & advise on Providence plan as to land use, zoning changes. • With consultant, understand the economics of possible land use alternatives To Provide Good Communications
• With community
• With Providence Mission Hospital
• With external advisory group
• With CA legislators (Sen Strickland, Sen Blakespear, Asm Dixon, Asm Petrie-Norris) • With Council
• Could include Webpage and FAQ, community meetings, include one or more Town Halls.
To Consider Asking for Legislation
• Legislation that could waive the pending 2030 seismic safety requirements (already attempted, but did not become law)
• Legislation that could authorize a stand-alone ER more broadly that current apparent carve-outs (which appear to be for rural areas)
To Evaluate All Options / Alternatives for Emergency Medical Care
1. Stand-alone ER (may require legislation)
2. Maintain ER with minimum number of acute care beds provided to allow continued operation.
3. If Mission is not interested in operating an ER, seek affiliation with someone else who is
4. What transport improvements can be made - faster ways out of town, less “wall time” at hospitals, more use of Alternative Destination choices for transport (such as to Urgent Care).
5. Robust and multi-hour urgent care at a new Providence campus.
6. Mobile Integrated Health (consider requesting some funding from Providence). A City of LB Medic paired with a Providence nurse practitioner who can respond to 911 calls (when warranted) to resolve patient issues at home.
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STAFF REPORT
Meeting Date:
June 23, 2026
CONSENT
20 SUBJECT: APPOINTMENT TO THE PARKING, TRAFFIC, AND CIRCULATION
COMMITTEE
RECOMMENDATION: It is recommended that the City Council:
1. Appoint Mark Lewis to the Parking, Traffic, and Circulation Committee, effective immediately, through March 31, 2028.
SUMMARY OF THE MATTER
The Parking, Traffic, and Circulation (PTC) Committee is a seven-member body that acts in an advisory capacity on matters related to parking, traffic, circulation, and traffic-related concerns. The Committee generally meets on the fourth Thursday of each month at 6:00 p.m. On February 10, 2026, the City Council appointed the two residents who applied for the Committee’s three openings.
DISCUSSION
On April 5, 2026, resident Mark Lewis submitted an application for the remaining vacant position on the PTC committee. No other applications have been received for the vacancy.
FINANCIAL ANALYSIS
There is no financial impact with the recommended action.
ENVIRONMENTAL ANALYSIS
There is no environmental impact with the recommended action.
ATTACHMENT
1. Application (Pg. 2)
Submitted By: Ann Marie McKay Approved: .David A Kiff
Ann Marie McKay, City Clerk Dave Kiff, City Manager
Report Prepared By: Coordinated With:
Ann Marie McKay, City Clerk Tran Tran, Assistant City Engineer 1 of 838
Attachment 1
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STAFF REPORT
Meeting Date:
June 23, 2026
CONSENT
21 SUBJECT: APPROVAL OF TENTATIVE AGREEMENT BETWEEN THE CITY OF LAGUNA
BEACH AND THE LAGUNA BEACH POLICE AND FIRE MANAGEMENT
ASSOCIATION (POLICE UNIT) FOR THE TERM JULY 1, 2026, THROUGH DECEMBER 31, 2026
RECOMMENDATIONS: 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 LAGUNA BEACH POLICE AND FIRE MANAGEMENT
ASSOCIATION (POLICE UNIT), AND FINDING SUCH ACTION EXEMPT FROM THE
CALIFORNIA ENVIRONMENTAL QUALITY CONTROL ACT UNDER STATE CEQA GUIDELINES SECTION 15378" approving the Agreement between the City of Laguna Beach and the Laguna Beach Police and Fire Management Association (Police Unit);
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 approving the Memorandum of Understanding (MOU) between the City and the Laguna Beach Police and Fire Management Association (Police Unit) for the term July 1, 2026, through December 31, 2026 (Attachment 1).
The Tentative Agreement was reached through the collective bargaining process and includes a 4.0% salary adjustment, modifications to vacation payout provisions upon separation from City service, clarifications to holiday provisions, and other administrative updates intended to improve consistency and alignment with current City practices.
The six-month term is intended to align future negotiations with the expiration of the Laguna Beach Police Employees' Association (LBPEA) MOU on September 30, 2026, thereby facilitating coordinated labor negotiations moving forward.
The estimated fiscal impact of the agreement is approximately $72,000 and is included in the Fiscal Year 2026-27 Proposed Budget. No additional appropriation is required.
DISCUSSION
The Laguna Beach Police and Fire Management Association (Police Unit) represents both sworn and professional (non-sworn) managers of the Police Department. The prior agreement is set to expire on June 1 of 869
APPROVAL OF TENTATIVE AGREEMENT BETWEEN THE CITY OF LAGUNA BEACH AND
THE LAGUNA BEACH POLICE AND FIRE MANAGEMENT ASSOCIATION (POLICE UNIT) FOR THE TERM JULY 1, 2026, THROUGH DECEMBER 31, 2026
June 23, 2026
30, 2026. Negotiations for a successor agreement commenced in March 2026 and concluded with a Tentative Agreement reached on June 8, 2026.
Notable terms of the new Memorandum of Understanding (MOU) include:
• Term: July 1, 2026, through December 31, 2026
• Salary Adjustment: 4.0% base salary increase
• Modified Payment of Vacation Upon Termination
• Clarifications of holiday provisions
• Administrative and technical language updates intended to improve consistency and interpretation The six-month term was negotiated to facilitate alignment of future bargaining cycles with the Laguna Beach Police Employees' Association. Aligning bargaining timelines is expected to improve administrative efficiency in conducting future labor negotiations. The Association ratified the Tentative Agreement on June 8, 2026, and staff recommends City Council adoption.
FINANCIAL ANALYSIS
The estimated cost associated with the Tentative Agreement for the term of July 1, 2026, through December 31, 2026, is approximately $72,000. These costs are included in the Fiscal Year 2026-27 Proposed Budget.
No additional appropriation is 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. 3-5)
2. Exhibit A – Memorandum of Understanding: July 1, 2026 – December 31, 2026 (Pgs. 6-31) Submitted By: .Michelle Bannigan Approved: .David A Kiff Michelle Bannigan, Director of
Administrative Services
Dave Kiff, City Manager
Report Prepared By:
Michelle Bannigan, Director of Administrative
Services
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RESOLUTION NO. 26.XXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
LAGUNA BEACH, CALIFORNIA, RATIFYING THE
MEMORANDUM OF UNDERSTANDING BETWEEN THE
LAGUNA BEACH POLICE AND FIRE MANAGEMENT
ASSOCIATON (POLICE UNIT), AND FINDING SUCH ACTION
EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL
QUALITY ACT UNDER STATE CEQA GUIDELINES SECTION
15378
WHEREAS, the Memorandum of Understanding between the City of Laguna Beach (“City”) and the Laguna Beach Police and Fire Management Association-Police Unit (LBPFMAPolice Unit), expires June 30, 2026; and WHEREAS, the City and the LBPFMA-Police Unit have met and conferred in accordance with the Meyers-Milias-Brown Act (Government Code §3500 et seq.); and WHEREAS, the City and the LBPFMA-Police Unit have memorialized their agreement in a Memorandum of Understanding for the period from July 1, 2026, through December 31, 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 LBPFMAPolice Unit (Exhibit A) is hereby ratified and the City Manager is authorized to execute the Memorandum of Understanding.
SECTION 3. The proposed action is not subject to the California Environmental Quality Act (“CEQA”) pursuant to the State CEQA Guidelines, as the action not a “project” and has no Attachment 1
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-2- Reso. #
potential to result in a direct or reasonably foreseeable indirect physical change to the environment. (14 Cal. Code Regs. § 15378(a).) A “project” specifically does not include continuing administrative or maintenance activities, such as general policy and procedure making. (14 Cal.
Code Regs. § 15378(b)(2).) Alternatively, the proposed actions are exempt from CEQA, as there is no possibility that such action would have a significant negative effect on the environment. (14 Cal. Code Regs. § 15061(b)(3).) Rather, the proposed actions are administrative in nature and merely set forth policies and procedures for the conduct of the City Council’s meetings, proceedings, business, and administration.
SECTION 4. This Resolution shall become effective immediately upon its adoption.
ADOPTED this 23rd day of June, 2026.
Mark Orgill, 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. 26.XXX was duly adopted at a regular meeting of the City Council of said City held on _____________, 2026, by the following vote:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
Ann Marie, City Clerk, City of Laguna Beach, CA
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EXHIBIT A
Memorandum of Understanding
Between the City of Laguna Beach and
the Laguna Beach Police and Fire Management Association Police Unit
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MEMORANDUM OF UNDERSTANDING
BETWEEN
THE CITY OF LAGUNA BEACH
AND
THE LAGUNA BEACH POLICE AND FIRE
MANAGEMENT ASSOCIATION
Police - Unit
July 1, 2026 – December 31, 2026
Attachment 2
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TABLE OF CONTENTS
Chapter 1 - Introduction..................................................................................................... 1
1.0 Preamble................................................................................................................. 1
2.0 Term & Reopener.................................................................................................... 1
3.0 Recognition ............................................................................................................. 1 Chapter 2- Compensation ................................................................................................. 1
4.0 Salary and Compensation ....................................................................................... 1
4.1 Pay Plan Structure......................................................................................... 1
4.2 Placement at the Salary Step ........................................................................ 1
4.3 Salary ............................................................................................................ 1
4.4 Direct Deposit................................................................................................ 2
5.0 Certification and Education Pay............................................................................... 2
6.0 Overtime for Lieutenants......................................................................................... 3
7.0 Deferred Compensation .......................................................................................... 3
8.0 City-Provided Take Home Automobile or Automobile Allowance ............................. 3
9.0 Exceptional Performance Pay ................................................................................. 3
10.0 Cell Phone Stipend & Internet Stipend.....................................................................4
11.0 Legal Defense Fund Contribution ............................................................................ 4 Chapter 3 - Benefits .......................................................................................................... 4
12.0 Retirement............................................................................................................... 4
13.0 Health Benefits ........................................................................................................ 6
13.1 Rates..........................................................................................................7
13.2 Selection of Carriers ...................................................................................7
13.3 City Contribution Maximum ........................................................................ 7
13.4 Medical Coverage for Domestic Partners ................................................... 7
13.5 Medical Insurance Waiver .......................................................................... 7
13.6 Flexible Spending Plan.............................................................................. 8
13.7 Medical Plan Coverage for Retirees .......................................................... 8
13.8 Retirement Health Savings Plan................................................................. 8
13.9 Reopener – Change in Medical Plan............................................................... 8
14.0 Light/Modified Duty.................................................................................................. 8
15.0 Educational and Professional Development Reimbursement Program....................9
15.1 Procedure.................................................................................................. 9
16.0 Physical Examination Reimbursement..................................................................... 9
17.0 Life Insurance .......................................................................................................... 9
18.0 Long Term Disability ..............................................................................................10
19.0 Shopper Parking Permits....................................................................................... 10
20.0 Work Schedule ..................................................................................................... 10
21.0 Uniforms............................................................................................................... 10 Chapter 4 – Leave of Absence ........................................................................................10
22.0 Vacation ............................................................................................................... 10
22.1 Vacation Accrual: .................................................................................... 10
22.2 Use of Vacation ...................................................................................... 11
22.3 Payment for Unused Vacation ................................................................ 11
23.0 Holidays ............................................................................................................... 13
23.1 Recognized Holidays.............................................................................. 13
23.2 Compensation For Holidays ................................................................... 13
23.3 Weekend Holidays.................................................................................. 14
24.0 Sick Leave............................................................................................................ 14 7 7 of 869
24.1 Sick Leave Accruals .............................................................................. 14
24.2 Sick Leave Banks .................................................................................. 14
24.3 Use of Sick Leave.................................................................................. 14
24.4 Evidence of Illness:................................................................................ 14
24.5 Sick Leave and Temporary Disability..................................................... 14
24.6 Sick Leave for Dependent Care............................................................. 14
24.7 Holidays During Sick Leave................................................................... 14
24.8 Payment for Unused Sick Leave ........................................................... 14
25.0 Bereavement Leave ............................................................................................. 14
26.0 Jury Duty Leave ................................................................................................... 16
27.0 Paid Administrative Leave.................................................................................... 16 Chapter 5 - Employer Employee Relations..................................................................... 16
28.0 Probationary Period.............................................................................................. 16
29.0 Discipline.............................................................................................................. 16
29.1 Policy: .................................................................................................... 16
29.2 Written Notice:....................................................................................... 16
29.3 Employee Review:................................................................................. 16
29.4 Employee Response: ............................................................................ 16
29.5 Temporary Leave with Pay:................................................................... 17
29.6 Representation: ..................................................................................... 17
29.7 Right of Appeal:..................................................................................... 17
30.0 Grievance Procedure ........................................................................................... 17
30.1 Matters Subject to Grievance Procedure: .............................................. 17
30.2 Grievance Procedure:............................................................................ 17
30.3 Appeal to the City Manager: .................................................................. 18
30.4 Extension of Time Limitations:............................................................... 18
31.0 Layoff ................................................................................................................... 18
31.1 Intent of Procedure:............................................................................... 18
31.2 Procedures: ........................................................................................... 18
32.0 Management Rights ............................................................................................. 20
33.0 The Confidentiality of Management Discussions and Working through the Chain of Command ............................................................................................................................. 21
34.0 Release Time ....................................................................................................... 21
35.0 Savings Clause .................................................................................................... 21
36.0 Full and Complete Understanding ........................................................................ 22 8 8 of 869
Chapter 1 - Introduction
1.0 Preamble
This Memorandum of Understanding ("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 and Fire Management Association (the Association) pursuant to the provisions of Government Code Section 3500, et. seq.
2.0 Term & Reopener
This MOU shall remain in full force and effect from July 1, 2026, until December 31, 2026.
3.0 Recognition
The City recognizes the Laguna Beach Police and Fire Management Association as the Association that represents the bargaining unit of sworn public safety managers of the Police Department in the City of Laguna Beach as follows: All employees in the classifications of Police Captain and Police Lieutenant. The Association also represents the Civilian Services Administrator. All classifications in this unit are exempt employees as defined by the Fair Labor Standards Act.
Chapter 2- Compensation
4.0 Salary and Compensation
4.1 Pay Plan Structure: Compensation for employees in the unit is based on a salary range with a low and high point. Employees may receive increases in compensation by moving within the range. An employee may move within the range based on the discretion of the Police Chief’s assessment of their performance and approval of the City Manager. Such movement is not subject to challenge, including the filing of a grievance.
4.2 Placement at the Salary Step: Employees in the unit are placed at the salary step at the time they enter the unit or receive a promotion within the unit (i.e., from Police Lieutenant to Police Captain). An employee promoted into a position in the bargaining unit will receive a base salary increase of at least five percent (5%).
4.3 Salary:
Effective the pay period that includes July 1, 2026, all employees in the unit shall receive a four percent (4.0%) salary increase in their monthly base salary in effect at that time.
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The salary range for all classifications in the bargaining unit shall be twenty percent (20%).
4.4 Direct Deposit: All Association members shall participate in the City's Direct Deposit Program.
5.0 Certification and Education Pay
Police Captains and Police Lieutenants shall receive two- and one-half percent (2.5%) of base salary for possession of a bachelor’s degree.
The Civilian Services Administrator shall receive five percent (5.0%) of base salary for possession of a master’s degree. Police Captains and Police Lieutenants shall receive seven- and one-half percent (7.5%) of base salary for possession of a master’s degree.
These degrees enhance employees’ ability to perform their job. The degree must be obtained from a college or university accredited by the United States Department of Education, Council for Higher Education Accreditation, Western Association of Schools and Colleges, or a similar regional accrediting association.
The parties agree that to the extent permitted by law, the compensation above for educational degrees 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.
Police Captains and Police Lieutenants shall receive two percent (2.0%) of base salary for receipt of an Advanced POST Certificate, two percent (2.0%) of base salary for receipt of a Supervisory POST Certificate, and five percent (5.0%) of base salary for receipt of a Management POST certificate.
However, since the receipt of a Management POST certificate requires receipt of an Advanced POST Certificate, upon receipt of a Management POST certificate, the employee will no longer receive pay for the Advanced POST Certificate.
The degree must be obtained from a college or university accredited by the United States Department of Education, Council for Higher Education Accreditation, Western Association of Schools and Colleges, or a similar regional accrediting association.
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The parties agree that to the extent permitted by law, the compensation above for POST Certifications 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.
6.0 Overtime for Lieutenants
A Police Captain or Chief of Police shall approve overtime for Police Lieutenants for the circumstances set forth below:
Critical Incidents: Spontaneous protests, incidents involving barricaded suspects, officer-involved shootings, or when additional supervision is required for unforeseen long-term events that move into extended operational periods and requires the Lieutenant to respond while off-duty or to work beyond their regular scheduled hours.
Grant Funded Events/ Special Projects: This overtime is for the following where the City is reimbursed by a third party: Office of Traffic Safety (OTS) and Operation Stonegarden (OPSG) grant funded events, or any preplanned multiagency incidents where management oversight is needed, or any preplanned special project where the Lieutenant is needed to respond off-duty and work beyond their normal work hours.
7.0 Deferred Compensation
Employees in the unit shall receive a City contribution of two percent (2%) of base salary (which shall be provided per pay period) which shall be contributed to a City approved deferred compensation program (per IRS Code section 457(b)). Employees may make additional contributions per pay period to their deferred compensation account up the maximum permitted law.
8.0 City-Provided Take Home Automobile or Automobile Allowance Employees receive either a take-home automobile or an automobile allowance of two hundred dollars ($200) per month at the discretion of the City Manager. A City provided take home automobile can be used by an employee to commute to and from the City or for any other work-related or approved purpose.
9.0 Exceptional Performance Pay
Employees in the unit may be eligible to receive exceptional performance pay (i.e., an annual performance bonus or merit pay) of up to five percent (5%) of base salary. An employee may be eligible to receive an additional five percent (5%) for a year or longer at the discretion of the City Manager. The assessment for such pay will be based on employee performance per the employee's 11 11 of 869
performance evaluation and recommendation of the Police Chief. The final decision will be made by the City Manager. The employee is eligible to receive the exceptional performance pay until their next evaluation date. Exceptional performance pay is not subject to challenge, including the filing of a grievance.
10.0 Cell Phone & Internet Stipend
Employees shall receive an internet stipend of $50.00 per month, and either a monthly cell phone stipend of $80.00 or a City-issued phone.
11.0 Legal Defense Fund Contribution
All members shall be reimbursed for up to $250 per year for the yearly contributions made by them to the Legal Defense Fund for legal services.
Chapter 3 - Benefits
12.0 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 Employees
Police Lieutenants and Police Captains hired 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.
Police Lieutenants and Police Captains hired on or after April 2, 2012, and 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.
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. Miscellaneous (non-safety) Employees
Unit members (i.e., the Civilian Services Administrator) who 12 12 of 869
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. Employees subject to the 3%@50 and
3%@55 Formulas
These employees shall contribute the entire required
member contribution of nine percent (9%) of
compensation earnable.
In addition to the nine percent (9%) compensation
earnable employee-paid member contribution noted
above, these employees 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 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.
The City has adopted the CalPERS resolution in
accordance with and as permitted by IRS Code
section 414(h)(2) to ensure that the employees'
payment (i.e., "pick up" as that term is used in section 414(h)(2)) of their employee contribution is made on a
pre-tax basis.
b. 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 set forth on the CalPERS annual rate
sheet.
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2. Miscellaneous (non-safety) Employees
a. Non-safety 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. Non-safety 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
In addition to the retirement formulas provided above, the following optional benefits are in effect:
1. One Year Final Compensation, Government Code
section 20042.
i. 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 per Government Code
section 7522.32(a).
2. Service Credit for Unused Sick Leave. Government
Code section 20965.
3. The 1959 Survivors Benefit Level IV. Government
Code section 21574.
d) Special Compensation Provided In this MOU
For each form of special compensation provided in this MOU that is required to be reported to CalPERS per Title 2 California Code of Regulations section 571 for classic members of CalPERS and per Section 571.1 for “New Members” as defined by the Public Employees’ Pension Reform Act of 2013 (“PEPRA”), the City will report that pay as pensionable compensation. CalPERS does, however, make the final determination as to whether any form of special compensation is pensionable.
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13.0 Health Benefits
All employees in the unit are eligible for enrollment in the medical, vision and dental benefit plans as agreed to between the City and the Association.
13.1 Rates: The City will pay 100% of the cost of medical coverage for the employee, 90% of the cost for employee plus one dependent, and 90% of the cost of the employee plus two or more dependents, with the employee responsible for the remaining 10%. The preceding percentage of 90% for the cost of employee plus one or more dependents will sunset on the last date of the term of this MOU (and the previous percentage of 87.5% will be reinstated) unless the parties agree that it will continue beyond that date. 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 13.0 only.
Vision coverage is made available by the City at the employee's cost.
13.2 Selection of Carriers: Health Insurance carriers are annually selected in the City by a committee of representatives from each of the employee associations (medical task force) meeting with representatives of the City.
To ensure that this process does not prevent the City from moving forward with a decision to either keep the same carrier or change carriers, the parties agree that each year when health insurance carriers are evaluated, the Association will be permitted to have a representative on the medical task force subject to the following: The Association agrees that if an agreement cannot be reached at the task force that it will not object to the City to making modifications or no changes to the health insurance.
13.3 City Contribution Maximum: Employees of the City have a two-tier medical system that exists for purposes of determining the City's contribution to employee medical insurance. The City's contribution to any employee's medical insurance premium under the premium sharing formula in Section 13.1 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.
13.4 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.
13.5 Medical Insurance Waiver: Employees who are able to demonstrate to the City's satisfaction that they have minimum essential coverage as defined by the Affordable Care Act (through another source other than coverage in the individual market, whether or not obtained through Covered California), 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 15 15 of 869
employee's payroll check.
If at any time during the term of the MOU, any provision of Federal law or regulation would impose greater financial cost or penalties on the City above and beyond the City's agreed upon contribution to an employee's cafeteria health insurance, the parties agree to reopen negotiations. The negotiations will be for the limited purpose of making changes to the health insurance that would be needed to ensure that such additional cost or penalties are avoided.
13.6 Flexible Spending Plan: The City will make a flexible spending plan available to employees pursuant to relevant IRS Code Section 125 to allow an employee to contribute a portion of his or her income each year on a pre-tax basis into an account from which they may receive reimbursement for medical, dental and dependent care expenses.
13.7 Medical Plan Coverage for Retirees: Employees Hired Before July 1, 2013: 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 July 1, 2013: 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.
13.8 Retirement Health Savings Plan: All employees are required to participate in the City's Retirement Health Savings Plan (RHS). The City shall make a pre-tax contribution of two hundred dollars ($200.00) per month per employee to the RHS plan on the employee's behalf, paid at ninety-two dollars and thirty-one cents ($92.31) per pay period.
13.9 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 13.0 - 13.3 shall be reopened for negotiations.
14.0 Light/Modified Duty
When an employee who has suffered an industrial injury which has been accepted by the City is authorized by a physician to return to work with restrictions, the Police Chief may assign and schedule the employee on a temporary basis to perform departmental duties from which the employee has not been restricted, and which are consistent with the employee's work restrictions. These duties need not be duties which are required or included as part of the employee's normal assignment. Light duty is limited to twelve (12) weeks but may be extended up to an additional four (4) weeks if it appears to the satisfaction of the Police Chief that imminent return to work is likely. 16 16 of 869
If an employee who has been authorized to return to work with restrictions refuses to accept a light/modified duty assignment consistent with those restrictions, they will not be entitled to receive Labor Code section 4850 benefits.
In accordance with California Labor Code section 4850, no disability indemnity shall be paid to any employee concurrently with wages or salary payments.
15.0 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 which are to the direct benefit of the individual employee and the City. The approval of the request is subject to budgetary limitations.
15.1 Procedure:
The Police Chief and the City Manager will determine what types of courses will be allowed for reimbursement prior to commitment by the employee. Permitted use of funds includes tuition, books, laboratory and parking fee, certification maintenance and course fees. In addition, professional association memberships, seminars, conferences, including material fees, and travel costs are included. Courses considered by the Police Chief and the City Manager 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 Police Chief 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.
The City Manager or designee may authorize payment of additional educational and professional development reimbursement beyond the maximum payment for employees who are seeking formal degrees.
16.0 Physical Examination Reimbursement
The City will reimburse employees in the bargaining unit up to three hundred dollars ($300) per year for expenses incurred for a general examination to determine physical fitness. The first reimbursement shall not occur until at least two (2) years after the employee's pre-employment physical.
17.0 Life Insurance
All employees are covered by a fifty-thousand-dollar ($50,000) Life and Accidental Death and Dismemberment policy.
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18.0 Long Term Disability
All 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. If this City increases this benefit for the Fire unit of the Association, it will increase it to the same amount for the employees in this Police unit.
19.0 Shopper Parking Permits
Employees shall receive a Shopper Parking Permit from the City at no cost.
20.0 Work Schedule
All employees in the bargaining unit will work a 5/40, 9/80 or 4/10 regular work schedule based upon the needs of the Department. The Department may change work schedules by providing at least two weeks' notice. If an employee needs some additional time to adjust to the new schedule, the City will evaluate such a request.
21.0 Uniforms
Employees in the unit will receive City provided uniforms. In accordance with PERS regulations, the City will report the value of the uniform the current amount is $308.00 per year for Lieutenants and $450.00 per year for Captains as compensation earnable for each employee who is provided with a City uniform. The parties agree that to the extent permitted by law, this remuneration is special compensation and shall be reported as such pursuant to Title 2, CCR 571(a)(5) Statutory Items - Uniforms. "New members" as defined under the Public Employees' Pension Reform Act of 2013 will not have the value of the uniforms reported as special compensation.
Chapter 4 - Leaves of Absence
22.0 Vacation
22.1 Vacation Accrual: Each employee shall accrue vacation as follows:
Hours of Vacation Accrued
0 to completion of 9 years of service - 5.24 hours per pay period. 10 + years of service - 6.77 hours per pay period.
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 18 18 of 869
employed. “Public agency" means any city, county, district, other local authority or public body of or within this state. See Government Code section 20056. For current employees, this would start two pay periods after they submit a complete application, and the City verifies previous government service.
On June 23, 2013, all vacation accruals were placed in a bank entitled the "Original" Bank. Additional vacation accruals were (since June 23, 2013) and are (prospectively) not permitted to be deposited into the Original Bank. Vacation in the Original Bank may be used in accordance with Section 22.2 of this Article or cashed out in accordance with Section 22.3 of this Article at the employee's hourly rate as of June 23, 2013.
Effective June 24, 2013, a new vacation accrual bank entitled the "New Bank" was created. Effective in the pay period following City Council approval of this MOU, employees are permitted to accrue vacation up to 600 hours. In the first pay period in December of each year, employees will be paid for any vacation in the "New Bank" above 600 hours at their then-current hourly rate.
In accordance with Section 22.2, employees may still use their vacation (both banks). However, for each employee, once the Original Bank has been depleted, it will be closed.
22.2 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 Police Chief who shall consider the wishes of the employee and the needs of the City. Ultimately, however, the Police Chief has the discretion to grant or deny vacation based on the needs of the Department.
22.3 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 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 19 19 of 869
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/accumulated vacation time in either bank shall have the vacation deposited into their RHS account. As noted above, deposit into the RHS of vacation time in the Original Bank will be deposited into the RHS (as permitted by Labor Code section 227.3 with an agreement of the parties) at the employee's hourly rate as of June 23, 2013. If an employee made an irrevocable election (in the prior calendar year) to cash out earned vacation for the calendar year in which they retire, they shall be paid as taxable wages for the amount of vacation they have earned to date in the year that they irrevocably elected to cash out. The balance of their vacation shall be deposited into their RHS account. It shall not be necessary to carry such employee on the payroll for the vacation period that is deposited into their RHS 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.
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23.0 Holidays
23.1 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 - 3rd Monday in January
3. President's Day - 3rd Monday in February
4. Memorial Day - Last Monday in May
5. Juneteenth – June 19th
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
Notwithstanding that the above are the holidays for employees in the unit, if the Police Chief needs the employee to work on any of the above holidays, they will be required to do so.
23.2 Compensation For Holidays: Employees receive nine (9) hours of pay for each of the above holidays. If an employee in the unit is assigned to a work schedule of more than nine hours per day, they must use vacation or administrative leave for the hours between nine and their scheduled hours to be paid for the entire holiday. For any holiday on which a unit member is required to work, they can bank the nine (9) hours as holiday leave. Any holiday leave still banked on the last pay period of June each year will be cashed out to the employee.
Employees in the classifications of Police Lieutenant, Police Captain and Civilian Services Administrator shall be entitled to holiday in lieu pay of nine (9) 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):
This is because these employees work in classifications 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, 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.
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23.3 Weekend Holidays: 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 the preceding Friday is the holiday in lieu of the day observed.
For those employees who work an alternate work schedule, e.g., 9/80, when a holiday falls on a regularly scheduled day off, employees shall receive nine (9) hours added to their accrual bank.
24.0 Sick Leave
24.1 Sick Leave Accruals: Every employee shall accrue sick leave at the rate of 80 hours per year, 3.08 hours per pay period. Unused sick leave may be accumulated without limit.
24.2 Sick Leave Banks: The City shall maintain two sick leave banks. 1) The first bank is for sick leave earned between June 13,1988 and June 23, 2013; and 2) the second bank is for sick leave earned on or after June 24, 2013.
24.3 Use of Sick Leave: Sick leave use must be approved by the Police Chief.
Sick leave earned in the first bank (i.e., between June 13, 1988, and June 23, 2013) must be used before sick leave earned in the second bank.
24.4 Sick Leave and Temporary Disability: An employee who is entitled to temporary disability benefit payments may elect to take that number of hours or portions of hours of their accumulated sick leave, or the employee's accumulated vacation, as when added to the disability benefit payment will result in a payment to the employee of their full salary.
24.5 Sick Leave for Dependent Care: An employee shall be eligible to use accrued sick leave in accordance with Federal and State laws to care for an ill parent, spouse, registered domestic partner, child, sibling, grandparent, grandchild 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 - 40 hours per year.
24.6 Holidays During Sick Leave: Observed holidays occurring during sick leave shall not be counted as a day of sick leave.
24.7 Payment for Unused Sick Leave:
Payment for accrued sick leave will be available as follows:
a) Sick Leave Earned Commencing June 13, 1988, through June 23, 2013. This sick may only be converted into the City's Retirement Health Savings (RHS) Plan at the employee's base hourly rate of pay 22 22 of 869
as of June 23, 2013, upon death, retirement for disability or for service, resignation or layoff, but not if dismissed or terminated for cause
b) Sick leave earned on or after June 24, 2013 may be converted into the City's Retirement Health Savings (RHS) Plan at the rate of fifty percent (50%) of the employee's base hourly rate of pay of its value in October or May of each fiscal year, upon death, retirement for disability or service, resignation or layoff, but not if dismissed or terminated for cause to the extent that it is not used in each fiscal year. Cash into the RHS Plan may be made one additional time each year under extraordinary circumstances if approved by the appropriate Chief and the Director of Human Resources & Risk Management.
c) Accrued sick leave may also be converted to service credit under the "Credit for Unused Sick Leave" option of the Public Employees' Retirement System. Government Code section 20965.
25.0 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 24 hours absence with pay, as to each such instance of death or critical illness, up to a maximum of 48 hours per year. In instances involving extraordinary circumstances, an additional 48 hours may be granted, upon approval of the Police Chief, with the proviso that such time will be deducted from accumulated sick leave.
"Immediate family" of the employee, the employee's spouse or domestic partner shall be construed to mean: father, mother, stepparents, brother, sister, stepsiblings, wife, husband, child, stepchild, 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 three (3) 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 that is otherwise available to the employee for this purpose. 23 23 of 869
26.0 Jury Duty Leave
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 who must report to jury duty shall immediately notify the Police Chief in writing, including by email.
Employees in the unit are expected to make reasonable efforts to manage their areas of responsibility to the maximum extent possible while serving on jury duty.
This means responding to calls and emails in a timely manner and still attending other necessary meetings occurring on days in which they are on jury duty if it does not conflict with the time required in court.
27.0 Paid Administrative Leave
Employees may be granted up to 100 hours of paid administrative leave per fiscal year at the discretion of the City Manager. Paid Administrative leave does not accrue and carry over to another fiscal year.
Chapter 5- Employer Employee Relations
28.0 Probationary Period
Employees in the unit may be promoted into the unit or may be hired as new employees. For both newly hired employees and those promoted into the unit, their probationary period is one year. However, for employees on probation, cumulative leaves of absence in excess of fourteen (14) calendar days while on probation shall extend the probationary period by the length of leaves of absence in excess of 14 calendar days. Any employee who promotes into the unit who does not pass their probationary period shall have the right to be returned to a position in their previous classification in the City.
29.0 Discipline
29.1 Policy: Prior to the discharge, demotion or pay reduction for disciplinary purpose or suspension of any regular employee pursuant to provisions of the Personnel Rules, the following procedure shall be complied with:
29.2 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.
29.3 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.
29.4 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 24 24 of 869
appointing authority concerning the proposed action.
29.5 Temporary Leave with Pay: Notwithstanding the provisions of this section, the Director of Human Resources & Risk Management, Police Chief, or 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.
29.6 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.
29.7 Right of Appeal:
29.7.1 Police Lieutenant and Police Captain: These employees shall, within seven (7) days, have the right of appeal to the Personnel Board 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 Rules.
29.7.1.1 For discipline described as "punitive action" under the Public Safety Officers' Procedural Bill of Rights Act for which there is a right to an appeal pursuant to
Government Code section 3304(b) and 3304.5, and
which is not covered by Section 28.7.1 above, the
appeal shall be processed under the grievance
procedure in this MOU.
29.7.2 Civilian Services Administrator: Employees shall have the right of appeal to the Personnel Board 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 Rules.
30.0 Grievance Procedure
30.1 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 a bargaining unit member contending that the City has violated or misapplied an obligation expressed and written in the Personnel Rules or this MOU.
30.2 Grievance Procedure: The employee shall have the right to discuss the matter with the Police Chief. 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 25 25 of 869
occurrence.
When discussing the grievance with the Police Chief, the 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 the grievance. After receiving the grievance the Chief shall review it, render their decision and comments in writing and return them to the employee or Association within ten (10) regular workdays after receiving the grievance. If the employee or the Association does not agree with the decision reached, they may present an appeal in writing to the City Manager within ten (10) regular workdays. Failure of the employee or Association to take further action within ten (10) regular workdays after receipt of the decision of the Police Chief will constitute withdrawal of the grievance.
30.3 Appeal to the City Manager: Upon receipt of an appeal, the City Manager or their representative shall discuss the grievance with the employee or Association, the representative, if any, and other appropriate persons. The City Manager may designate a fact-finding committee, an individual not in the normal line of the employee's supervision, or the City Attorney to render advice concerning the appeal. Within fifteen (15) regular working days, the City Manager shall render a formal decision, in writing, to the employee or Association. Such decision shall be considered as final.
30.4 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 employee or Association and the City.
31.0 Layoff
31.1 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.
31.2 Procedures:
31.2.1Abolition 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 department head 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 appointing 26 26 of 869
authority 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.
31.2.2 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 may request, within the two (2) week notification period, demotion to a position in said lower classification or an equivalent class in order to avoid layoff if the employee makes such a request, a list of employees as prescribed in section 31.2.4 of this section shall be prepared and 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 appointing authority shall choose an employee to be laid off according to the provisions of section 31.2.4 of this section.
31.2.3 Severance Pay: An 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 for a minimum of ten (10) years will be eligible for three (3) weeks' salary upon layoff.
31.2.4 Reemployment Lists: The names of all 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.
In such an event, the appointing authority shall consider the former employee(s) from the layoff list prior to considering other candidates. However, the appointing authority shall retain the right not to appoint said former employee(s) and may request an examination to establish a new eligibility list.
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32.0 Management Rights
The scope of representation does not include consideration by the City of changes in the merits, necessity or organization of any service activities provided by law or executive order including the following:
1. The City shall retain, whether exercised or not, solely and exclusively, all express and inherent rights and authority pursuant to law with respect to determining the level of, and the manner in which, the City's activities are conducted, managed, and administered, and it is the exclusive right of the City to establish and maintain departmental rules and procedures for the administration of its departments.
2. The City has the exclusive right and authority to schedule work as required in the manner most advantageous to the City.
3. Every incidental duty connected with operations enumerated in job descriptions is not always specifically described; nevertheless, it is intended that all such duties shall be performed by employees in the unit.
4. The City reserves the right to direct employees, including the right to hire, promote, discipline or discharge employees.
5. The City reserves the right to lay off employees at any time.
6. The City shall determine assignments and establish methods and processes by which assignments are performed.
7. The City shall determine policy affecting the on-going training and certification of employees, as applicable.
8. The City shall have the right to establish and enforce employee performance standards.
9. The City shall have the right to introduce new, improved, or different methods and techniques of operation or a change in existing methods and techniques.
10. The City shall determine the amount of supervision necessary.
11. The City shall have the authority, without prior meeting and conferring, to effect reorganizations and reallocation of work of the City, including the determination of the size and organizational structure of departments and the determination of the job classification and ranks based upon assigned duties.
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12. The City has the right, without prior meeting and conferring, to contract for matters relating to municipal operations, including contracting out bargaining unit work. The right of contracting or subcontracting is vested exclusively in the City.
13. The inherent and express rights of the City, including those herein specifically referred to that are not expressly modified or restricted by a specific provision hereof, are not in any way, directly or indirectly, subject to meeting and conferring or the Grievance Procedure herein.
33.0 The Confidentiality of Management Discussions and Working through the Chain of Command
Employees in this bargaining unit are public safety managers in the Police Department. As such, these employees have access to confidential information in their respective departments which must be maintained with confidentiality and not used for labor relations purposes. If information is made or becomes public, drafts of documents, recording details of meetings, or other work product which were prepared by the Department, but which have not been made public cannot be used for labor relations purposes. The confidentiality of such documents shall be maintained.
Employees in this unit directly report to the Police Chief (Police Captain) or to the Police Captain (Police Lieutenant), or to either the Police Captain or Police Chief (Civilian Services Administrator). The parties agree that maintenance of the reporting relationships is critical to effectively operating thePolice Department while maintaining a labor relations relationship between the City and the Association.
34.0 Release Time
The Association (with its two bargaining units representing Fire and Police) may have up to two (2) on-duty representatives on release time and one (1) off-duty representative at the collective bargaining table for labor negotiations. In addition, the Association is entitled to release time for the purpose of processing a grievance. No more than one member may be released for a meeting for such a purpose. Additional time needed for planning for negotiations or any other labor relations purpose must take place during off duty hours.
35.0 Savings Clause
If any section, subsection, subdivision, sentence, clause, or phrase of this MOU is for any reason held to be illegal or unconstitutional, such decision shall not affect the validity of the remaining portion of this MOU. 29 29 of 869