The City regularly reviews its Conflict-of-Interest Code to ensure it is updated to reflect changes in job positions/titles, job duties, the creation of new roles and decision-making authority.
The proposed Resolution (Attachment 1) would amend the Appendix of Designated Employees (Attachment 2) to reflect changes in job titles/duties and to add new positions since the City’s last update.
Proposed Updates
Title Updates:
• Remove “Communications Manager” (position eliminated) • Remove “Director of Financial and Technology Services” and add “Director of Finance” New Designated Positions (Category 2 Disclosure):
• Animal Shelter Manager
• Emergency Management Administrator
• Housing Program Manager
• Human Resources and Risk Manager
• Transit and Parking Manager
These updates ensure that City employees who make or participate in governmental decisions are appropriately designated and subject to the financial disclosure requirements of the Political Reform Act.
FINANCIAL ANALYSIS
The recommended action has no financial impact to the budget. The proposed amendments update administrative designations within the City’s Conflict of Interest Code and do not require additional City resources or budget appropriations.
ENVIRONMENTAL ANALYSIS
The proposed action is exempt from review under the California Environmental Quality Act ("CEQA") and the CEQA Guidelines because this is a continuing personnel-related action and, constitutes an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. Accordingly, this action does not constitute a "project" that requires environmental review (CEQA Guidelines § 15378(b)(2)&(5)).
ATTACHMENTS
1. Resolution (Pgs. 4-5)
2. Appendix of Designated Employees (Pgs. 6-8)
Submitted By: Ann Marie McKay Approved: .David A Kiff
Ann Marie McKay, City Clerk Dave Kiff, City Manager
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RESOLUTION AMENDING THE APPENDIX OF DESIGNATED EMPLOYEES WITH FILING
RESPONSIBILITIES UNDER THE CITY'S CONFLICT OF INTEREST CODE July 21, 2026
Report Prepared By: Coordinated With:
Ann Marie McKay, City Clerk Michelle Bannigan, Finance Director Patrick Donegan, Assistant City Attorney
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RESOLUTION NO. 26.XXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
LAGUNA BEACH, CALIFORNIA, AMENDING THE CONFLICT
OF INTEREST CODE APPENDIX OF DESIGNATED
EMPLOYEES AND FINDING THE SAME EXEMPT FROM THE
CALIFORNIA ENVIRONMENTAL QUALITY ACT
WHEREAS, the City Council of the City of Laguna Beach adopted Resolution No. 81.1 on January 6, 1981, thereby the provisions of California Code of Regulations, Title 2, section 18730, a regulation containing the terms of a standard model Conflict of Interest Code; and WHEREAS, the Conflict of Interest Code Appendix of Designated Employees must be periodically updated to reflect the current titles and positions of those employees designated as having filing responsibilities and their disclosure categories.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAGUNA BEACH DOES RESOLVE:
SECTION 1. The foregoing recitals are true and correct, and incorporated herein by this reference.
SECTION 2. The updated Conflict of Interest Code Appendix of Designated Employees, attached hereto as Exhibit “A” in which officials and employees are designated and disclosure categories is hereby adopted.
SECTION 3. This resolution is exempt from review under the California Environmental Quality Act ("CEQA") and the CEQA Guidelines because this is a continuing personnel-related action and, constitutes an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. Accordingly, this action does not constitute a "project" that requires environmental review (CEQA Guidelines § 15378(b)(2)&(5).
SECTION 4. If any action, subsection, sentence, clause, or phrase of this Resolution or the application thereof to any person or circumstance shall be held invalid or unconstitutional by a court Attachment 1
4 4 of 305
-2- Reso. #26.XXX
of competent jurisdiction, such invalidity shall not affect the validity of the remaining portions of this Resolution that can be given effect without the invalid provisions.
SECTION 5. This Resolution shall take effect immediately upon its adoption.
ADOPTED this 21st day of July, 2026.
Mark Orgill, Mayor
ATTEST:
Ann Marie McKay, City Clerk
I, Ann Marie McKay, City Clerk of the City of Laguna Beach, California, do hereby certify that the foregoing Resolution No. 26.XXX was duly adopted at a Regular Meeting of the City Council of said City held on July 21, 2026, by the following vote:
AYES: COUNCILMEMBER(S)
NOES: COUNCILMEMBER(S)
ABSENT: COUNCILMEMBER(S)
City Clerk, City of Laguna Beach, CA
5 5 of 305
EXHIBIT A
CITY OF LAGUNA BEACH CONFLICT OF INTEREST CODE
APPENDIX OF DESIGNATED EMPLOYEES
List of Designated Positions Assigned Disclosure Categories Accounting Manager 2
** Animal Shelter Manager 2
Arts Commission Members 2
Assistant City Attorney 2
Assistant City Engineer 2
Assistant City Manager 1
Assistant Director of Community Development 2
Assistant Director of Public Works 2
Assistant to the City Manager 2
Associate Civil Engineer 2
Investment Committee Members 2
Battalion Chief 2
Board of Adjustment/Design Review Board Members 2
Building Inspector 2
Building Official 2
Chief Building Inspector 2
Chief of Marine Safety 1
Chief of Police 1
*** City Attorney 1
City Clerk 1
*** City Council Members 1
City Engineer 2
*** City Manager 1
*** City Treasurer 1
Civilian Enforcement Officer 2
Civilian Fire Marshal 2
Civilian Services Administrator 2
Code Enforcement Officer 2
Code Enforcement Supervisor 2
** Communications Manager 1
* Consultants
Cultural Arts Manager 2
Deputy Building Official 2
Deputy City Attorney 2
*** Deputy City Treasurer 1
Deputy Director of Community Development 2
Deputy Director of Public Works 2
Deputy Fire Chief 1
Director of Community Development 1
** Director of Finance 1
** Director of Financial and Technology Services 1
Director of Human Resources/Risk Management 2
6 6 of 305
EXHIBIT A
Director of Public Works & Utilities 1
Director of Transit & Community Services 1
** Emergency Management Administrator 2
Executive Assistant to the City Manager 2
Finance Manager 2
Fire Battalion Chief 2
Fire Captain 2
Fire Chief 1
Heritage Committee Members 2
** Housing Program Manager 2
** Human Resources & Risk Manager 2
Information Technology Manager 2
Marine Safety Captain 2
Network Administrator 2
Planning Commission Members 2
Planning Manager 2
Police Captain 2
Police Lieutenant 2
Principal Human Resources Analyst 2
Procurement Officer 2
Project Director 2
Project Manager 2
Recreation Manager 2
Senior Building Inspector 2
Senior Building Inspector/Plan Checker 2
Senior Fleet Maintenance Supervisor 2
Senior Management Analyst 2
Senior Operations Supervisor 2
Senior Principal Planner 2
Supervisor of Support Services 2
** Transit and Parking Manager 2
View Restoration Committee Members 2
REPORTABLE INTERESTS DISCLOSURE CATEGORIES
Category 1: A designated employee in this category must report all investments, interests in real property, income, and business entities in which he or she is a director, officer, partner, trustee, and employee or holds any position of management.
Category 2: A designated employee in this category must report all investments, interests in real property and income associated with their job.
*Consultants shall be included in the list of designated employees and shall disclose pursuant to the broadest disclosure category in the code subject to the following limitation: The (executive director or executive officer) may determine in writing that a particular consultant, although a "designated 7 7 of 305
EXHIBIT A
position" is hired to perform a range of duties that is limited in scope and thus is not required to fully comply with the disclosure requirement described in this section. Such written determination shall include a description of the consultant's duties and, based upon that description, a statement of the extent of disclosure requirements. The (executive director's or executive officer's) determination is a public record and shall be retained for public inspection in the same manner and location as this conflict of interest code.
** Changes to the designated positions.
*** Government Code Section 87200: This article is applicable to elected state officers, judges, and commissioners of courts of the judicial branch of government, members of the Public Utilities Commission, members of the State Energy Resources Conservation and Development Commission, members of the Fair Political Practices Commission, members of the California Coastal Commission, members of the High-Speed Rail Authority, members of planning commissions, members of the board of supervisors, district attorneys, county counsels, county treasurers, and chief administrative officers of counties, mayors, city managers, city attorneys, city treasurers, chief administrative officers and members of city councils of cities, and other public officials who manage public investments, and to candidates for any of these offices at any election. 8 8 of 305
STAFF REPORT
Meeting Date:
July 21, 2026
CONSENT
12 SUBJECT: AUTHORIZATION TO ACCEPT AND EXECUTE A GRANT AGREEMENT WITH THE CALIFORNIA HIGHWAY PATROL FOR THE FISCAL YEAR 2026-2027
CANNABIS TAX FUND GRANT PROGRAM AND APPROPRIATION OF FUNDS RECOMMENDATION: It is recommended that the City Council:
1. Adopt the Resolution titled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
LAGUNA BEACH, CALIFORNIA, AUTHORIZING THE CITY MANAGER, OR DESIGNEE,
TO EXECUTE A GRANT AGREEMENT AND ALL RELATED DOCUMENTS WITH THE CALIFORNIA HIGHWAY PATROL FOR THE FISCAL YEAR 2026-2027 CANNABIS TAX FUND GRANT PROGRAM”, thereby satisfying the governing body authorization required by California Code of Regulations, Title 13, Division 2, Chapter 13, Section 1890.13(g);
2. Accept the California Highway Patrol Fiscal Year 2026-2027 Cannabis Tax Fund Grant Program award in the amount of $475,800;
3. Approve a budget adjustment to increase grant revenues and expenditures by $475,800 (1332102- 45100-G2701 and 1332102-79999-G2701), respectively; and
4. Authorize the City Manager, or designee, to execute any subsequent grant-related documents and amendments that do not increase the City's financial obligation or materially alter the approved scope of work.
SUMMARY OF THE MATTER
The California Highway Patrol (CHP) has conditionally awarded the Laguna Beach Police Department $475,800 through the Fiscal Year 2026-2027 Cannabis Tax Fund Grant Program (CTFGP). The grant will fund a comprehensive impaired-driving enforcement, education, prevention, and training program during the period of July 1, 2026, through June 30, 2027.
The CHP requires authorization from the City's governing body before the Grant Agreement may be executed. Approval of the attached Resolution will satisfy this requirement and authorize the City Manager, or designee, to execute the Grant Agreement and administer the grant on behalf of the City.
The grant is fully funded by the State of California and requires no local matching funds.
FUND ACCOUNT AMOUNT DESCRIPTION
OTHER GRANTS FUND
1332102-45100-
G2701 (475,800)
26 CHP CANNABIS TAX GRANT
REVENUE
OTHER GRANTS FUND
1332102-79999-
G2701 475,800
26 CHP CANNABIS TAX GRANT
EXPENDITURE
NET APPROPRIATION: -
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AUTHORIZATION TO ACCEPT AND EXECUTE A GRANT AGREEMENT WITH THE CALIFORNIA HIGHWAY PATROL FOR THE FISCAL YEAR 2026-2027 CANNABIS TAX
FUND GRANT PROGRAM AND APPROPRIATION OF FUNDS
July 21, 2026
BACKGROUND
The California Highway Patrol administers the Cannabis Tax Fund Grant Program pursuant to California Revenue and Taxation Code Section 34019. The program provides financial assistance to local law enforcement agencies for education, prevention, and enforcement activities designed to reduce impaired driving involving alcohol, cannabis, and other drugs.
The Laguna Beach Police Department submitted a competitive grant application requesting funding to expand DUI enforcement, increase community education, improve officer training, and purchase specialized traffic safety equipment.
On June 30, 2026, the California Highway Patrol notified the City that the Department had been conditionally awarded $475,800 in grant funding. As a condition of the award, the CHP requires documentation from the City's governing body authorizing execution of the Grant Agreement before the award may be finalized.
Laguna Beach continues to experience significant traffic safety challenges despite having fewer than 23,000 permanent residents. The City welcomes more than six million visitors annually, placing substantial demands on a roadway system constrained by narrow coastal streets and canyon roadways.
During 2025, Laguna Beach experienced:
• 609 traffic collisions;
• 171 speed-related collisions resulting in 79 injuries; • 63 DUI-related collisions resulting in 32 injuries;
• 166 injury collisions causing 226 injuries; and
• Two fatal traffic collisions.
These statistics demonstrate the continued need for enhanced impaired-driving enforcement and education efforts.
DISCUSSION
The proposed grant will significantly enhance the Police Department's ability to reduce impaired driving through a comprehensive strategy combining education, enforcement, prevention, officer training, and specialized equipment.
Grant-funded activities include:
• Six (6) DUI Checkpoints;
• Twenty-six (26) DUI Saturation Patrols;
• Twelve (12) "Know Your Limits" community education events; • Purchase of one commercial-grade DUI Operations Van to replace our current DUI trailer purchased in 2013 via OTS grant funds;
• Purchase of four radar/message boards capable of displaying impaired-driving messaging while collecting vehicle speed data; and
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AUTHORIZATION TO ACCEPT AND EXECUTE A GRANT AGREEMENT WITH THE CALIFORNIA HIGHWAY PATROL FOR THE FISCAL YEAR 2026-2027 CANNABIS TAX
FUND GRANT PROGRAM AND APPROPRIATION OF FUNDS
July 21, 2026
• Officer training to improve the detection and investigation of alcohol- and drug-impaired drivers.
These activities directly support the City's traffic safety goals and complement existing grant-funded enforcement efforts. The radar/message boards will serve as long-term traffic safety assets by collecting traffic data, displaying educational and enforcement messaging, and supporting future traffic calming initiatives. The commercial-grade DUI Operations Van will improve operational efficiency by securely transporting DUI checkpoint equipment and outreach materials while reducing deployment time and improving equipment accountability.
City Council approval of the attached Resolution constitutes the governing body authorization required by California Code of Regulations, Title 13, Division 2, Chapter 13, Section 1890.13(g), authorizing the City Manager, or designee, to execute the Grant Agreement and administer the Fiscal Year 2026-2027 California Highway Patrol Cannabis Tax Fund Grant Program on behalf of the City of Laguna Beach.
FINANCIAL ANALYSIS
The California Highway Patrol will reimburse the City up to $475,800 during Fiscal Year 2026-2027.
Category Amount
Personnel $281,600
Equipment $186,700
Other Direct Costs $7,500
Total Grant Award $475,800
The grant requires no local matching funds. A budget adjustment of $475,800 (offset by a budget adjustment for the same amount for state grant revenue) is requested in the Cities Other Grants Fund (#133) to appropriate the cost of the program as follows:
FUND ACCOUNT AMOUNT DESCRIPTION
OTHER GRANTS FUND
1332102-45100-
G2701 (475,800)
26 CHP CANNABIS TAX GRANT
REVENUE
OTHER GRANTS FUND
1332102-79999-
G2701 475,800
26 CHP CANNABIS TAX GRANT
EXPENDITURE
The City will be responsible only for future maintenance, operating expenses, and warranty costs associated with grant-funded equipment after the grant period, where applicable.
ENVIRONMENTAL ANALYSIS
The recommended action is not subject to the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15378 because it involves administrative procurement activities and does not constitute a “project” as defined by CEQA. The agreement authorizes the purchase of cabling and related 3 of 332
AUTHORIZATION TO ACCEPT AND EXECUTE A GRANT AGREEMENT WITH THE CALIFORNIA HIGHWAY PATROL FOR THE FISCAL YEAR 2026-2027 CANNABIS TAX
FUND GRANT PROGRAM AND APPROPRIATION OF FUNDS
July 21, 2026
equipment, and services and will not result in a direct or reasonably foreseeable indirect physical change in the environment. No further environmental review is required.
CONCLUSION
The California Highway Patrol has awarded the Laguna Beach Police Department $475,800 through the Fiscal Year 2026-2027 Cannabis Tax Fund Grant Program to enhance impaired-driving enforcement, education, prevention, officer training, and traffic safety equipment.
The grant requires no local matching funds and will provide long-term public safety benefits through investments in personnel, training, education, and equipment.
Staff recommends that the City Council adopt the attached Resolution, accept the grant award, and authorize execution of the Grant Agreement.
ATTACHMENTS
1. Resolution Authorizing Acceptance of the Fiscal Year 2026-2027 California Highway Patrol Cannabis Tax Fund Grant (Pgs. 5-7)
2. California Highway Patrol Intent to Award Letter (Pg. 8)
3. California Highway Patrol Grant Agreement No. 30864 (Pgs. 9-27) Submitted By:
. Approved: .David A Kiff
Jeff Calvert, Police Chief Dave Kiff, City Manager
Report Prepared By: Coordinated With:
Thomas Spratt, Sergeant Jesse Schmidt, Lieutenant
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RESOLUTION NO. 26.XXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
LAGUNA BEACH, CALIFORNIA, AUTHORIZING THE CITY
MANAGER, OR DESIGNEE, TO EXECUTE A GRANT
AGREEMENT AND ALL RELATED DOCUMENTS WITH THE
CALIFORNIA HIGHWAY PATROL FOR THE FISCAL YEAR
2026-2027 CANNABIS TAX FUND GRANT PROGRAM
WHEREAS, the California Highway Patrol administers the Cannabis Tax Fund Grant Program (CTFGP) pursuant to California Revenue and Taxation Code Section 34019 and applicable regulations to provide financial assistance to local law enforcement agencies for education, prevention, and enforcement activities related to impaired driving involving alcohol, cannabis, and other drugs; and
WHEREAS, the Laguna Beach Police Department submitted an application to the California Highway Patrol seeking grant funding to support impaired-driving enforcement, education, officer training, and specialized traffic safety equipment; and WHEREAS, on June 30, 2026, the California Highway Patrol notified the City of Laguna Beach that the Laguna Beach Police Department had been conditionally awarded funding in the amount of Four Hundred Seventy-Five Thousand Eight Hundred Dollars ($475,800) for the Fiscal Year 2026-2027 Cannabis Tax Fund Grant Program, subject to approval by the City's governing body; and
WHEREAS, the proposed Grant Agreement provides funding for the period of July 1, 2026, through June 30, 2027, to support impaired-driving enforcement, prevention, education, officer training, and the purchase of specialized equipment; and WHEREAS, acceptance of this grant will enhance public safety by expanding DUI enforcement, improving officer training, increasing community education, and acquiring Attachment 1
5 5 of 332
-2- Reso. #26.XXX
equipment that will continue serving the City beyond the grant period; and WHEREAS, the grant requires no local matching funds and will be administered in accordance with the terms and conditions established by the California Highway Patrol; and WHEREAS, California Code of Regulations, Title 13, Division 2, Chapter 13, Section 1890.13(g), requires authorization by the City's governing body before execution of the Grant Agreement.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAGUNA BEACH DOES RESOLVE:
SECTION 1. The City Council hereby accepts the Fiscal Year 2026-2027 California Highway Patrol Cannabis Tax Fund Grant Program award in the amount of Four Hundred SeventyFive Thousand Eight Hundred Dollars ($475,800).
SECTION 2. The City Council hereby authorizes the City Manager, or designee, to execute the Grant Agreement with the California Highway Patrol and any related certifications, assurances, reimbursement requests, grant amendments, and other documents necessary to administer the grant, provided such amendments do not materially increase the City's financial obligation or substantially alter the approved scope of work.
SECTION 3. The City Manager, or designee, is authorized to take all actions necessary to implement and administer the grant in accordance with the terms and conditions established by the California Highway Patrol.
SECTION 4. Grant funds received pursuant to this Resolution shall be used solely for the purposes authorized by the California Highway Patrol Cannabis Tax Fund Grant Program and in accordance with all applicable laws, regulations, and grant requirements. 6 6 of 332
-3- Reso. #26.XXX
SECTION 5. The City Clerk shall certify to the adoption of this Resolution.
ADOPTED this 21st day of July, 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 July 21, 2026, by the following vote:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
City Clerk, City of Laguna Beach, CA
7 7 of 332
State of California-Transportation Agency GAVIN NEWSOM, Governor
DEPARTMENT OF CALIFORNIA HIGHWAY PATROL
Safety, Service, and Security An Internationally Accredited Agency 601 North 7th Street
Sacramento, CA 95811
(916) 843-4360
(800) 735-2929 (TT/TDD)
(800) 735-2922 (Voice)
June 30, 2026
File No.: 060.17344.19741
Sergeant Thomas Spratt
Laguna Beach Police Department
505 Forest Avenue
Laguna Beach, CA 92651
Dear Sergeant Spratt:
On behalf of the California Highway Patrol (CHP), it is my pleasure to inform you, the Laguna Beach Police Department, is conditionally approved for Cannabis Tax Fund Grant Program (CTFGP) funding in the amount of $475,800.00. The purpose of this grant funding is to help your agency reduce and mitigate the impacts of impaired driving in your community.
All grant awards, including any adjustments to requested funding, were made by the Department based on the merits of the Grant Application, scale of operation, and in accordance with the Request for Application (RFA) requirements and associated regulations.
The official Grant Agreement for signature is forthcoming. In order to execute your Grant Agreement, please provide documentation from a local governing body, authorizing your organization to receive this grant funding, to the Cannabis Grants Unit, by email at [email protected], as soon as possible.
Refer to California Code of Regulations Title 13, Division 2, Chapter 13, Section 1890.13(g) for additional information.
The CHP looks forward to partnering with you and your agency on this project in an effort to make California’s roadways a safer place to travel. If you have any questions, please feel free to contact the Cannabis Grants Unit at (916) 843-4360.
Sincerely,
For/
M. W. HEADRICK, Chief
Enforcement and Planning Division
Attachment 2
8 8 of 332
State of California
DEPARTMENT OF CALIFORNIA HIGHWAY PATROL
GRANT AGREEMENT - Page 1
Award Number
30864 ________________________________________________________________
1. GRANT TITLE
FY26/27 CTFGP Law Enforcement - Laguna Beach Police Department
2. NAME OF ORGANIZATION/AGENCY
Laguna Beach Police Department
3. ORGANIZATION/AGENCY SECTION TO ADMINISTER GRANT
Laguna Beach Police Department/Traffic Bureau
4. PROJECT PERFORMANCE PERIOD
From: 07/01/2026 To: 06/30/2027
5. PURCHASE ORDER NUMBER
6. GRANT OPPORTUNITY INFORMATION DESCRIPTION
Law Enforcement grants provide financial assistance to allied agencies for the education, prevention, and the enforcement of laws related to driving under the influence of alcohol and other drugs, including cannabis and cannabis products.
The intent of the program is to educate the public regarding the dangers of impaired driving, enforce impaired driving laws on the roadway, and improve the Organization/Agency’s effectiveness through training and development of new strategies.
7. FUNDS ALLOCATED UNDER THIS GRANT AGREEMENT SHALL NOT EXCEED $475,800.00
8. TERMS AND CONDITIONS
The Grantee agrees to complete the Project, as described in the Project Description. The Grantee’s Grant Application, and the California Code of Regulations, Title 13, Division 2, Chapter 13, Sections 1890.00-1890.27, are hereby incorporated into this Grant Agreement by reference.
The parties hereto agree to comply with the Terms and Conditions of the following attachments:
• Schedule A – Project Description, Problem Statement, Goals and Objectives, and Method of Procedure • Schedule B – Detailed Budget Estimate
• Schedule B-1 – Budget Narrative
We, the officials named below, hereby swear, under penalty of perjury under the laws of the State of California, that we are duly authorized to legally bind the Grant recipient to the above-described Grant Terms and Conditions.
IN WITNESS WHEREOF, this Grant Agreement is executed by the parties hereto.
9. APPROVAL SIGNATURES
A. AUTHORIZED OFFICIAL OF ORGANIZATION/AGENCY
Name: Thomas Spratt
Title: Sergeant
Phone: (949) 422-1199
Address: 505 Forest Avenue
Laguna Beach, CA 92651
E-Mail: [email protected]
___________________________ _______________
(Signature) (Date)
B. AUTHORIZED OFFICIAL OF CHP
Name: Elliotte Johnson Phone: (916) 843-4360
Title: Captain Fax: (916) 322-3169
Address: 601 North 7th Street
Sacramento, CA 95811
E-Mail: [email protected]
___________________________ _______________
(Signature) (Date)
C. ACCOUNTING OFFICER OF CHP
Name: M. V. Fojas Phone: (916) 843-3531
Title: Commander Fax: (916) 322-3159
Address: 601 North 7th Street
Sacramento, CA 95811
E-Mail: [email protected]
___________________________ _______________
(Signature) (Date)
10. AUTHORIZED FINANCIAL CONTACT TO RECEIVE
REIMBURSEMENT PAYMENTS
Name: Shannon Espinoza
Title: Finance Manager
Phone: (949) 422-1199
Address: 505 Forest Avenue
Laguna Beach, CA 92651
Attachment 3
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TERMS AND CONDITIONS
Grantee shall comply with the California Code of Regulations, Title 13, Division 2, Chapter 13 Section 1890, et seq. and all other Terms and Conditions noted in this Grant Agreement. Failure by the Grantee to comply may result in the termination of this Grant Agreement by the California Highway Patrol (hereafter referred to as State). The State will have no obligation to reimburse the Grantee for any additional costs once the Grant Agreement has been terminated.
A. EXECUTION
1. The State (the California Highway Patrol) hereby awards, to the Grantee, the sum of money stated on page one of this Grant Agreement. This funding is awarded to the Grantee to carry out the Project set forth in the Project Description and the terms and conditions set forth in this Grant Agreement.
2. The funding for this Grant Agreement is allocated pursuant to California Revenue and Taxation Code Section 34019(f)(3)(B). The Grantee agrees that the State’s obligation to pay any sum under this Grant Agreement is contingent upon availability of funds disbursed from the California Cannabis Tax Fund to the State. If there is insufficient funding, the State shall have the option to either: 1) terminate this Grant Agreement; whereby, no party shall have any further obligations or liabilities under this Grant Agreement, or 2) negotiate a Grant Agreement Amendment to reduce the grant award and scope of work to be provided under this Grant Agreement.
3. The Grantee is not to commence or proceed with any work in advance of receiving notice that the Grant Agreement is approved. Any work performed by the Grantee in advance of the date of approval by the State shall be deemed volunteer work and will not be reimbursed by the State.
4. The Grantee agrees to provide any additional funding, beyond what the State has agreed to provide, pursuant to this Grant Agreement, and necessary to complete or carry out the Project, as described in this Grant Agreement. Any modification or alteration of this Grant Agreement, as set forth in the Grant Application submitted by the Grantee and on file with the State, must be submitted in writing thirty (30) calendar days in advance to the State for approval.
5. The Grantee agrees to complete the Project within the timeframe indicated in the Project Performance Period, which is on page one of this Grant Agreement.
B. PROJECT ADMINISTRATION
1. The Grantee shall submit all reimbursements, progress, performance, and/or other required reports concerning the status of work performed in furtherance of this Grant Agreement on a quarterly basis, or as requested by the State.
2. The Grantee shall provide the State with a final report showing all Project expenditures, which includes all State and any other Project funding expended, within sixty (60) calendar days after completion of this Grant Agreement.
3. The Grantee shall ensure all equipment which is purchased, maintained, operated, and/or developed is available for inspection by the State.
4. Equipment purchased through this Grant Agreement shall be used for the education, prevention, and enforcement of impaired driving laws, unless the Grantee is funding a portion of the purchased price not dedicated to impaired driving and that portion is not part of the Project costs.
Equipment purchased under this Grant Agreement must only be used for approved Projectrelated purposes, unless otherwise approved by the State in writing.
5. Prior to disposition of equipment acquired under this Grant Agreement, the Grantee shall notify the State via e-mail, and by telephone, by calling the California Highway Patrol, Impaired Driving Section, Cannabis Grants Unit at (916) 843-4360. 10 10 of 332
TERMS AND CONDITIONS
C. PROJECT TERMINATION
1. Grantee or the State may terminate this Grant Agreement at any time prior to the commencement of the Project. Once the Project has commenced, this Grant Agreement may only be terminated if the party withdrawing provides thirty (30) calendar days written notice of their intent to withdraw.
a. If by reason of force majeure the performance hereunder is delayed or prevented, then the term end date may be extended by mutual consent for the same amount of time of such delay or prevention. The term “force majeure” shall mean any fire, flood, earthquake, or public disaster, strike, labor dispute or unrest, embargo, riot, war, insurrection or civil unrest, any act of God, any act of legally constituted authority, or any other cause beyond the Grantee’s control which would excuse the Grantee’s performance as a matter of law. b. Grantee agrees to provide written notice of an event of force majeure under this Grant Agreement within ten (10) calendar days of the commencement of such event, and within ten (10) calendar days after the termination of such event, unless the force majeure prohibits Grantee from reasonably giving notice within this period. Grantee will give such notice at the earliest possible time following the event of force majeure.
2. Any violations of law committed by the Grantee, misrepresentations of Project information by the Grantee to the State, submission of falsified documents by the Grantee to the State, or failure to provide records by the Grantee to the State when requested for audit or site visit purposes may be cause for termination. If the Project is terminated for the reasons described in this paragraph, the State will have no obligation to reimburse the Grantee for any additional costs once the Grant Agreement has been terminated.
3. The State may terminate this Grant Agreement and be relieved of any payments should the Grantee fail to perform the requirements of this Grant Agreement at the time and in the manner herein provided. Furthermore, the Grantee, upon termination, shall return grant funds not expended by the Grantee as of the date of termination.
4. If this Grant Agreement is terminated, the State may choose to exclude the Grantee from future Grant Opportunities.
D. FINANCIAL RECORDS
1. The Grantee agrees the State, or their designated representative, shall have the right to review and to copy all records and supporting documentation pertaining to the performance of this Grant Agreement. Grantee agrees to maintain such records for possible audit for a minimum of five (5) years after final payment, unless a longer period of records retention is stipulated or required by law. Grantee agrees to allow the auditor(s) access to such records during normal business hours and to allow interviews of any employees who might reasonably have information related to such records. Furthermore, the Grantee agrees to include a similar right for the State to audit all records and interview staff in any subcontract related to performance of this Grant Agreement.
E. HOLD HARMLESS
1. The Grantee agrees to indemnify, defend, and save harmless the State, its officials, agents and employees from any and all claims and losses accruing or resulting to any and all Grantee’s staff, contractors, subcontractors, suppliers, and other person, firm or corporation furnishing or supplying work services, materials, or supplies in connection with the performance of this Grant Agreement, and from any and all claims and losses accruing or resulting to any person, agency, firm, corporation who may be injured or damaged by the Grantee in performance of this Grant Agreement.
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TERMS AND CONDITIONS
F. NONDISCRIMINATION
1. The Grantee agrees to comply with State and federal laws outlawing discrimination, including, but not limited to, those prohibiting discrimination because of sex, race, color, ancestry, religion, creed, national origin, physical disability (including HIV and AIDS), mental disability, medical condition (including cancer or genetic characteristics), sexual orientation, political affiliation, position in a labor dispute, age, marital status, and denial of statutorily-required employmentrelated leave. (GC 12990 [a-f] and CCR, Title 2, Section 8103.) G. AMERICANS WITH DISABILITIES ACT
1. The Grantee assures the State it complies with the Americans with Disabilities Act (ADA) of 1990, which prohibits discrimination on the basis of disability, as well as all applicable regulations and guidelines issued pursuant to the ADA. (42 U.S.C. 12101 et seq.) H. DRUG-FREE WORKPLACE
1. The Grantee shall comply with the requirements of the Drug-Free Workplace Act of 1990 and will provide a drug-free workplace by taking the following actions:
a. Publish a statement notifying employees that unlawful manufacture, distribution, dispensation, possession, or use of a controlled substance is prohibited and specifying actions to be taken against employees for violations.
b. Establish a Drug-Free Awareness Program to inform employees about:
i. The dangers of drug abuse in the workplace.
ii. The person's or Organization/Agency's policy of maintaining a drug-free workplace. iii. Any available counseling, rehabilitation, and employee assistance programs. iv. Penalties that may be imposed upon employees for drug abuse violations. c. Every employee who works on the Project will:
i. Receive a copy of the company's drug-free workplace policy statement. ii. Agree to abide by the terms of the company's statement as a condition of employment on the Grant Agreement.
2. Failure to comply with these requirements may result in suspension of payments under this Grant Agreement, or termination of this Grant Agreement, or both, and Grantee may be ineligible for award of any future Grant Agreements if the department determines that any of the following has occurred:
a. The Grantee has made false certification or violated the certification by failing to carry out the requirements, as noted above. (GC 8350 et seq.)
I. LAW ENFORCEMENT AGENCIES
1. All law enforcement Organization/Agency Grantees shall comply with California law regarding racial profiling. Specifically, law enforcement Organization/Agency Grantees shall not engage in the act of racial profiling, as defined in California Penal Code Section 13519.4. 12 12 of 332
TERMS AND CONDITIONS
J. LABOR CODE/WORKERS' COMPENSATION
1. The Grantee is advised and made aware of the provisions which require every employer to be insured against liability for Worker's Compensation or to undertake self-insurance in accordance with the provisions, and Grantee affirms to comply with such provisions before commencing the performance of the work of this Grant Agreement, (refer to Labor Code Section 3700).
K. GRANT APPLICATION INCORPORATION
1. The Grantee agrees the Grant Application and any subsequent changes or additions approved or required by the State is hereby incorporated into this Grant Agreement.
L. STATE LOBBYING
1. The Grantee is advised that none of the funds provided under this Grant Agreement may be used for any activity specifically designed to urge or influence a state or local legislator to favor or oppose the adoption of any specific legislative proposal pending before any state or local legislative body. Such activities include both direct and indirect (e.g., “grassroots”) lobbying activities, with one exception. This does not preclude a state official, whose salary is supported by this Grant Agreement, from engaging in direct communications with the state or local legislative officials, in accordance with customary state and/or local practice.
M. REPRESENTATION AND WARRANTIES
1. The Grantee represents and warrants that:
a. It is validly existing and in good standing under the laws of the State of California, has, or will have the requisite power, authority, licenses, permits, and the like necessary to carry on its business as it is now being conducted and as contemplated in this Grant Agreement, and will, at all times, lawfully conduct its business in compliance with all applicable federal, state, and local laws, regulations, and rules.
b. It is not a party to any Grant Agreement, written or oral, creating obligations that would prevent it from entering into this Grant Agreement or satisfying the terms herein. c. If the Grantee is a Nonprofit Organization/Agency, it will maintain its “Active” status with the California Secretary of State, maintain its “Current” status with the California Attorney General’s Registry of Charitable Trusts, and maintain its federal and State of California taxexempt status. If the Grantee subcontracts with a Nonprofit as part of this Grant Agreement, the Grantee shall ensure the Nonprofit will maintain its “Active” status with the California Secretary of State, maintain its “Current” status with the California Attorney General’s Registry of Charitable Trusts, and maintain its federal and State of California tax-exempt status.
d. All of the information in its Grant Application and all materials submitted are true and accurate.
N. AIR OR WATER POLLUTION VIOLATION
1. Under the state laws, the Grantee shall not be: (1) in violation of any order or resolution not subject to review promulgated by the State Air Resources Board or an air pollution control district; (2) subject to cease and desist order not subject to review issued pursuant to Section 13301 of the Water Code for violation of waste discharge requirements or discharge prohibitions; or (3) finally determined to be in violation of provisions of federal law relating to air or water pollution. 13 13 of 332
TERMS AND CONDITIONS
O. GRANTEE NAME CHANGE
1. Grantee agrees to immediately inform the State, in writing, of any changes to the name of the person within the Organization/Agency with delegated signing authority.
2. An Amendment is required to change the Grantee's name, as listed on this Grant Agreement. Upon receipt of legal documentation of the name change, the State will process the Amendment. Payment of invoices presented with a new name cannot be paid prior to approval of said Amendment.
P. RESOLUTION
1. A county, city, district, or other local public body shall provide the State with a copy of a resolution, order, motion, or ordinance of the local governing body, which by law, has authority to enter into a Grant Agreement, authorizing execution of the Grant Agreement.
Q. PAYEE DATA RECORD FORM STD. 204
1. This form shall be completed by all non-governmental Grantees.
R. FINANCIAL INFORMATION SYSTEM FOR CALIFORNIA GOVERNMENT AGENCY TAXPAYER ID FORM
1. This form shall be completed by all Grantees.
S. CONFLICT OF INTEREST
1. This section serves to make the Grantee aware of specific provisions related to current or former state employees. If Grantee has any questions regarding the status of any person rendering services or involved with the Grant Agreement, the Grantee shall contact the State (California Highway Patrol, Impaired Driving Section, Cannabis Grants Unit) immediately for clarification.
2. Current State Employees:
a. No officer or employee shall engage in any employment, activity, or enterprise, from which the officer or employee receives compensation or has a financial interest, and which is sponsored or funded by any state agency, unless the employment, activity, or enterprise is required, as a condition of regular state employment.
b. No officer or employee shall contract on their own behalf, as an independent Grantee, with any state agency to provide goods or services.
3. Former State Employees:
a. For the two-year period from the date they left state employment, no former state officer or employee may enter into a contract in which they engaged in any of the negotiations, transactions, planning, arrangements, or any part of the decision-making process relevant to this Grant Agreement while employed in any capacity by any state agency. b. For the 12-month period from the date they left state employment, no former state officer or employee may enter into a contract with any state agency if they were employed by that state agency in a policy-making position in the same general subject area as the proposed Grant Agreement within the 12-month period prior to their leaving state service.
4. The authorized representative of the Grantee Organization/Agency, named within this Grant Agreement, warrants their Organization/Agency and its employees have no personal or financial interest and no present or past employment or activity, which would be incompatible with 14 14 of 332
TERMS AND CONDITIONS
participating in any activity related to this Grant Agreement. For the duration of this Grant Agreement, the Organization/Agency and its employees will not accept any gift, benefit, gratuity or consideration, or begin a personal or financial interest in a party who is associated with this Grant Agreement.
5. The Grantee Organization/Agency and its employees shall not disclose any financial, statistical, personal, technical, media-related, and/or other information or data derived from this Grant Agreement, made available for use by the State, for the purposes of providing services to the State, in conjunction with this Grant Agreement, except as otherwise required by law or explicitly permitted by the State in writing. The Grantee shall immediately advise the State of any person(s) who has access to confidential Project information and intends to disclose that information in violation of this Grant Agreement.
6. The Grantee will not enter into any Grant Agreement or discussions with third parties concerning materials described in paragraph five (5) prior to receiving written confirmation from the State that such third party has a Grant Agreement with the State, similar in nature to this one.
7. The Grantee warrants that only those employees who are authorized and required to use the materials described in paragraph 5 will have access to them.
8. If the Grantee violates any provisions in the above paragraphs, such action by the Grantee shall render this Grant Agreement void.
T. EQUIPMENT-USE TERMS
1. The Grantee agrees any equipment purchased under this Grant Agreement shall be used for impaired driving efforts.
2. Law Enforcement Projects:
a. Oral Fluid Drug Screening Devices and Cannabis/Marijuana Breath Testing Equipment - The Grantee agrees to ensure all personnel using road-side drug testing equipment, including oral fluid drug testing devices and/or cannabis/marijuana breath testing devices, purchased with grant funds from this Grant Agreement, are trained to recognize alcohol and drug impairment.
At a minimum, personnel using these devices should receive Standardized Field Sobriety Testing training. These personnel are also encouraged to attend Advanced Roadside Impaired Driving Enforcement and Drug Recognition Evaluator training. Prior to using these devices, the Grantee agrees to obtain permission from their local prosecutor’s office, establish a policy ensuring appropriate use, and require the staff using these devices to receive appropriate training, which may include training from the manufacturer. This will help ensure the equipment is used appropriately. The Grantee shall advise the State (California Highway Patrol, Impaired Driving Section, Cannabis Grants Unit) of any legal challenges or other items of significance that may affect the use or legal acceptance of these devices.
Additionally, the State may request additional information about the performance of these devices, including information about their use, accuracy, and feedback from personnel using the devices.
b. Law Enforcement Vehicles – The Grantee agrees any law enforcement vehicles purchased with Grant funds, from this Grant Agreement, will be primarily used for the enforcement of driving under the influence laws and/or providing public education, related to the dangers of driving under the influence. Additionally, any vehicle purchased using funds from this Grant Agreement shall comply with all California Vehicle Code and California Code of Regulation requirements. The State may require the Grantee to mark these vehicles with a decal and/or emblem, indicating the vehicle is used for driving under the influence enforcement. 15 15 of 332
Schedule A
Laguna Beach Police Department
The Grantor determined awards and adjustments based on the Project’s merit, operational scale, compliance with the Request for Application (RFA), and program regulations. Certain activities or budget items proposed in Schedule A may have been deemed ineligible for funding. The final, binding list of authorized activities and expenses is set forth in Schedule B - Detailed Budget Estimate.
Project Description
The Laguna Beach Police Department (LBPD) proposes a comprehensive impaired-driving enforcement, prevention, and education project aligned with the goals of the California Highway Patrol Cannabis Tax Fund Grant Program, aimed at reducing DUI/DUID crashes and improving roadway safety within the community.
Grant funds will support the deployment of six DUI checkpoints, twenty-six bi-weekly DUI patrols, and twelve “Know Your Limits” education and outreach events, along with targeted training to enhance officer effectiveness in detecting and deterring impaired driving involving alcohol and drugs, including cannabis. To efficiently implement these activities, LBPD seeks to purchase a commercial-grade, heavy-duty van outfitted with standard police equipment to transport and securely store checkpoint and event materials, as well as four multifunction radar/message boards to increase visibility, collect speed data, and display DUI-prevention messaging—addressing the documented speed nexus in local DUI collisions. Additional funding is requested for essential direct costs such as preliminary alcohol screening devices, checkpoint supplies, generator fuel, educational materials, and canopies. Collectively, these coordinated enforcement, education, and equipment investments will augment existing efforts, strengthen data-driven deterrence, and advance the shared goal of reducing impaired driving and enhancing public safety in Laguna Beach.
Problem Statement
1. Jurisdiction Impacted
The proposed project will directly impact the Laguna Beach, a compact coastal city located in southern California. Laguna Beach encompasses approximately nine square miles of beachfront, hillside, and canyon terrain with a constrained roadway network characterized by narrow streets, steep grades, limited sight distance, and heavy multimodal use. Although the City has fewer than 23,000 permanent residents, it experiences more than six million visitors annually due to its beaches, arts community, special events, and tourism-driven economy. This disproportionate visitor volume significantly increases vehicle, pedestrian, and bicycle traffic throughout the year, placing sustained pressure on roadways not designed to accommodate high traffic demand. As a result, Laguna Beach faces traffic safety challenges that exceed those of similarly sized jurisdictions. Grant-funded enforcement and education efforts will directly benefit residents, commuters, and visitors who rely on the City’s roadway system.
2. Description of the Problem Supported by Data
Laguna Beach continues to experience a serious and escalating traffic safety problem driven by unsafe speed, impaired driving, high visitor volume, and limited roadway infrastructure. In the most recent calendar year (2025), the City recorded 609 total traffic crashes, including 2 fatal crashes resulting in 2 deaths and 166 injury crashes causing 226 injuries. For a community of fewer than 23,000 residents, this level of collision frequency and severity represents a significant and unacceptable public safety concern.
Analysis of 2025 crash data highlights unsafe speed and driving under the influence as the leading contributors to serious injury crashes. Of the 609 total crashes:
• 171 crashes were speed-related, resulting in 79 injuries • 63 crashes were DUI-related, resulting in 32 injuries Speed-related collisions accounted for more than one-quarter of all crashes, while DUI-related crashes continued to produce a disproportionate number of injuries, reinforcing the strong nexus between speed, impairment, and crash severity in Laguna Beach.
Multi-year trends further underscore the urgency of the problem. Injury crashes increased sharply to 166 in 2025, compared to 61 in 2024 and 102 in 2023, while injury victims rose to 226 in 2025, up from 127 in 2024 and 144 in 2023. Fatal crashes have remained persistent, with two fatalities occurring in both 2023 and 2025, indicating that severe and deadly outcomes continue despite ongoing enforcement efforts. 16 16 of 332
Schedule A
Vulnerable road users are especially impacted. In 2025, pedestrian-involved crashes resulted in 1 fatality and 24 injuries, a notable increase from the prior year. Older pedestrians (age 65 and over) accounted for 1 fatal and 4 injury crashes, demonstrating heightened vulnerability. Bicyclists were also significantly affected, with 10 injury crashes resulting in 12 injured bicyclists, including three under the age of 15.
The Laguna Beach Police Department actively enforces traffic laws citywide. In 2025, officers issued 8,945 traffic citations, including 1,818 speed-related citations, reflecting both the prevalence of unsafe speed and the Department’s commitment to traffic safety. However, with only four dedicated traffic officers and increasing demands on patrol resources, staffing limitations restrict the Department’s ability to conduct sustained, high-visibility DUI and speed enforcement at the level necessary to reverse current trends.
3. Target Population and Impact
The primary target population for this grant includes all roadway users in Laguna Beach, including residents, commuters, and the more than six million annual visitors who travel through the city. Since 2022, Laguna Beach has experienced seven traffic-related fatalities, underscoring the persistent risk faced by all who use the City’s roadways.
Motorists are directly impacted by unsafe speed and impaired driving, as evidenced by 171 speed-related crashes and 63 DUI-related crashes in 2025 alone, resulting in 111 combined injuries. These collisions increase the risk of serious injury or death, strain emergency response resources, and negatively affect community quality of life.
The grant also prioritizes at-risk and vulnerable populations, including:
• Pedestrians, who face elevated risk due to dense foot traffic in beach areas, the downtown corridor, and residential neighborhoods. Pedestrian crashes resulted in 1 fatality and 24 injuries in 2025, contributing to the City’s multi-year fatality total.
• Older adults (65+), who are disproportionately impacted due to increased injury severity, accounting for 1 fatality and 4 injuries in pedestrian crashes during 2025. • Bicyclists, including youth riders, who are exposed to heightened risk on narrow, winding roadways with limited separation from vehicle traffic. In 2025, 12 bicyclists were injured, including three under age 15.
• Youth, who are impacted as pedestrians and bicyclists, particularly during peak tourism seasons and special events when traffic congestion and impaired driving risks increase.
Grant funding will enable focused, data-driven, and high-visibility enforcement and education strategies targeting the primary causes of serious and fatal crashes—unsafe speed and impaired driving. These efforts will help offset staffing limitations, reduce collisions and injuries, protect vulnerable road users, and improve overall traffic safety outcomes throughout the City of Laguna Beach.
Performance Measures/Scope of Work (Proposed Solution)
Performance Measures / Project Goals and Objectives
1. Six (6) DUI Checkpoints
Timeline:
• Q1 = 1
• Q2 = 2
• Q3 = 2
• Q4 = 1
Goal / Objective:
Conduct six high-visibility DUI checkpoints throughout the project performance period to deter and detect impaired drivers, reduce DUI/DUID-related crashes, and increase public awareness of impaired driving enforcement.
Quantitative Measurements:
• Conduct 6 DUI checkpoints within the City of Laguna Beach • Aim to achieve a 10–15% reduction in DUI/DUID-related crashes and injuries during enforcement periods compared to prior-year data
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Schedule A
• Track number of vehicles screened, DUI arrests, PAS uses, citations issued, and public contacts Resources / Budget Line Items & Justification:
• Personnel Costs: Overtime for officers conducting checkpoints • Equipment: Use of radar/message boards to notify motorists of checkpoints • Other Direct Costs: Checkpoint supplies (cones, canopies, lighting, generators, PAS devices, fuel, and educational handouts)
These resources support sustained, visible enforcement proven to deter impaired driving and reduce serious and fatal crashes.
2. Twenty-Six (26) Bi-Weekly DUI Saturation Patrols
Timeline:
• Q1 = 6
• Q2 = 7
• Q3 = 7
• Q4 = 6
Goal / Objective:
Deploy targeted DUI saturation patrols during peak risk periods (weekends, holidays, special events, and peak tourism seasons) to proactively identify and remove impaired drivers from the roadway.
Quantitative Measurements:
• Conduct 26 DUI patrols citywide
• Aim to reduce DUI/DUID crashes by at least 10% over the project year • Measure number of DUI arrests, citations, vehicle stops, and field sobriety tests conducted Resources / Budget Line Items & Justification:
• Personnel Costs: Overtime for patrol officers assigned to DUI enforcement • Equipment: Radar/message boards for speed feedback and DUI messaging during patrol operations These patrols address the documented nexus between speed, impairment, and serious injury crashes in Laguna Beach.
3. Twelve (12) “Know Your Limits” Education and Outreach Events Timeline:
• Q1 = 3
• Q2 = 3
• Q3 = 3
• Q4 = 3
Goal / Objective:
Conduct twelve community-based education and outreach events to increase public awareness of the dangers and legal consequences of driving under the influence of alcohol and drugs, including cannabis.
Quantitative Measurements:
• Conduct 12 Know Your Limits events
• Reach an estimated 300–500 community members over the project period • Distribute educational materials and collect engagement metrics (attendance, materials distributed, public interactions)
Resources / Budget Line Items & Justification:
• Personnel Costs: Staff time to support education events • Equipment: Use of radar/message boards to attract attention and display DUI prevention messaging • Other Direct Costs: Educational materials, canopies, tables, and event supplies 18 18 of 332
Schedule A
These events support prevention through education and complement enforcement activities by shifting public attitudes and behaviors related to impaired driving.
4. Purchase and Deployment of One (1) Commercial-Grade DUI Operations Van Timeline:
• Q1 = Purchase and outfit vehicle
• Q2–Q4 = Utilize vehicle for checkpoints, patrols, and education events Goal / Objective:
Acquire and deploy a dedicated commercial-grade van to safely and efficiently transport DUI checkpoint and education equipment, improving operational readiness and consistency of enforcement activities.
Quantitative Measurements:
• Vehicle utilized for 100% of DUI checkpoints and Know Your Limits events • Reduced setup and breakdown time for checkpoints and outreach events • Improved equipment security and deployment efficiency Resources / Budget Line Items & Justification:
• Equipment: Commercial-grade van outfitted with standard police equipment (radio, light bar, siren, equipment racks)
This vehicle directly supports all enforcement and education activities by ensuring reliable, safe, and efficient transport of essential materials.
5. Purchase and Deployment of Four (4) Radar/Message Boards Timeline:
• Q1 = Purchase
• Q2 = Receive and deploy
• Q2–Q4 = Use during enforcement and education activities Goal / Objective:
Use radar/message boards to enhance deterrence, collect speed data, and deliver DUI prevention messaging during checkpoints, patrols, and community events.
Quantitative Measurements:
• Deploy message boards at all DUI checkpoints and patrol operations • Collect vehicle speed data to support enforcement and evaluation • Display DUI prevention messaging during 12 Know Your Limits events Resources / Budget Line Items & Justification:
• Equipment: Four radar/message boards with data collection capability These boards address Laguna Beach’s speed-related crash problem while reinforcing DUI prevention messaging and increasing public compliance.
6. Training to Enhance DUI/DUID Detection and Enforcement Timeline:
• Q1–Q4 = As training opportunities arise
Goal / Objective:
Provide targeted training to officers to improve detection, investigation, and enforcement of DUI/DUID offenses, including cannabis impairment.
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Schedule A
Quantitative Measurements:
• Train designated officers during the project period
• Increase quality and effectiveness of DUI investigations and arrests Resources / Budget Line Items & Justification:
• Personnel Costs: Backfill or overtime for officers attending training • Travel Costs: Registration and approved travel expenses, if applicable Training ensures enforcement efforts are effective, legally sound, and aligned with best practices.
Project Alignment Summary
All listed activities are directly tied to the Project goals, are achievable within the one-year performance period, and align with eligible CTFGP budget categories. Together, these enforcement, education, equipment, and training efforts form a coordinated, data-driven strategy to reduce DUI/DUID crashes, improve traffic safety, and protect vulnerable road users in Laguna Beach.
Project Performance Evaluation
The Laguna Beach Police Department will utilize a comprehensive, data-driven evaluation process to measure Project effectiveness and demonstrate positive impacts on traffic safety within the City of Laguna Beach. Evaluation strategies will focus on both quantitative and qualitative data to assess progress toward Project goals, inform adjustments during implementation, and support transparent reporting to stakeholders.
Quantitative Data Collection and Analysis
Project effectiveness will be evaluated through the systematic collection and analysis of enforcement, crash, and activity data throughout the Project Performance Period. Key quantitative metrics will include:
• Crash Data Analysis:
Comparison of DUI/DUID-related crashes, speed-related crashes, injury crashes, and fatal crashes during the Project Performance Period to the prior three-year average. Specific emphasis will be placed on changes in crash frequency and severity involving impaired driving and unsafe speed. • Enforcement Activity Measures:
Tracking the number of DUI checkpoints conducted, DUI saturation patrols completed, and enforcement hours worked. Additional measures will include vehicles screened, DUI arrests, field sobriety tests administered, PAS uses, citations issued (speed, DUI-related, and other moving violations), and warnings issued.
• Speed Data Collection:
Vehicle speed data collected through radar/message boards deployed during checkpoints, patrols, and education events will be analyzed to evaluate changes in driver behavior and compliance in targeted locations.
• Education and Outreach Metrics:
Measurement of the number of “Know Your Limits” events conducted, total attendance, number of educational materials distributed, and public contacts made during outreach activities. • Training Outcomes:
Tracking the number of officers trained, training hours completed, and improvements in DUI/DUID detection and arrest outcomes following training.
All quantitative data will be reviewed on a quarterly basis to monitor trends, evaluate progress toward performance targets, and ensure alignment with Project objectives.
Qualitative Data and Community Impact Assessment
Qualitative data will be used to supplement quantitative findings and provide insight into community 20 20 of 332
Schedule A
perception and operational effectiveness. This will include:
• Officer feedback regarding the effectiveness of equipment, training, and deployment strategies • Observational assessments of driver behavior during checkpoints and patrols • Community feedback gathered during “Know Your Limits” events, including public questions, concerns, and reported changes in awareness
• Stakeholder observations regarding visibility, deterrence, and perceived traffic safety improvements These qualitative measures will help contextualize statistical trends and identify opportunities for continuous improvement.
Monitoring and Reporting
The Laguna Beach Police Department will monitor Project performance through regular internal reviews and required reporting within the California Highway Patrol Grant Management System (GMS). The Department will submit:
• Quarterly progress reports documenting completed activities, performance measures, and preliminary outcomes
• Quarterly financial expenditure reports supported by required documentation • Any additional data or documentation requested by the CHP Cannabis Grants Unit Data will be reviewed internally by command staff and Project coordinators to ensure activities remain on schedule, resources are used appropriately, and adjustments are made as necessary to maximize effectiveness.
Communication Plan
Project results and impacts will be shared with both internal and external stakeholders through a structured communication strategy:
Internal Communication:
• Regular briefings to Department command staff and City leadership summarizing enforcement outcomes, crash trends, and progress toward Project goals • Dissemination of performance data to patrol and traffic officers to reinforce effective strategies and encourage data-informed enforcement
External Communication:
• Public information releases highlighting DUI checkpoints, enforcement efforts, and traffic safety outcomes, in coordination with City communication channels • Use of Department social media platforms and City websites to share DUI prevention messaging, enforcement statistics, and safety improvements
• Community engagement during “Know Your Limits” events to share Project goals, preliminary results, and educational information
• Participation in required press releases or public announcements associated with grant awards or milestones
This evaluation and communication framework ensures transparency, accountability, and continuous improvement, while demonstrating the Project’s measurable contribution to reducing impaired driving, improving roadway safety, and protecting residents, visitors, and vulnerable road users in the City of Laguna Beach.
Program Sustainability
The Laguna Beach Police Department (LBPD) will sustain the traffic safety, DUI enforcement, and education efforts initiated through this project by leveraging long-term equipment investments and integrating effective strategies into routine operations. Grant-funded assets, including the DUI operations van, radar/message boards, and checkpoint equipment, will remain Department-owned and continue to support DUI checkpoints, saturation patrols, speed enforcement, and education activities beyond the Project Performance Period without recurring equipment costs.
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Schedule A
During the grant period, LBPD will evaluate results to identify the most effective enforcement and education strategies. Proven approaches, such as targeted DUI patrols during high-risk periods and the use of radar/message boards for speed deterrence and impaired-driving messaging, will be incorporated into standard patrol operations as grant funding is reduced or unavailable.
Grant-supported training will strengthen in-house expertise and reduce reliance on future external training.
Public education efforts will be integrated into existing community outreach programs using reusable materials developed during the Project.
Timeframe:
0–12 months post-grant: Reduced enforcement using grant-funded equipment. 1–3 years: Full integration into routine operations.
3+ years: Sustain efforts as part of LBPD’s core mission.
Administrative Support
The Laguna Beach Police Department possesses the administrative capacity, personnel expertise, and physical resources necessary to successfully implement and manage this Project within the designated Project Performance Period. The Department has extensive experience administering state and federal traffic safety grants, including programs focused on DUI enforcement, speed reduction, and public education. LBPD is familiar with grant compliance requirements, performance reporting, fiscal accountability, and reimbursement-based funding processes, ensuring timely and accurate submission of progress reports and financial documentation through the Grant Management System (GMS).
Project oversight will be provided by sworn command staff with experience in traffic safety operations and grant administration. Dedicated personnel will coordinate Project planning, scheduling, data collection, and reporting, while patrol and traffic officers will conduct grant-funded DUI checkpoints, saturation patrols, and education activities. Although the Department maintains a small traffic unit, the entire patrol division supports traffic enforcement, allowing LBPD to efficiently deploy personnel and maximize grant-funded activities despite staffing constraints.
LBPD’s officers possess the training and experience required to carry out impaired-driving enforcement, including standardized field sobriety testing and DUI investigations. Grant-funded training will further enhance officer capabilities during the Project Performance Period.
The Department has the physical resources needed to support Project activities, including patrol vehicles, communication systems, traffic enforcement equipment, and secure facilities for equipment storage. Grantfunded assets, such as the DUI operations van, radar/message boards, and checkpoint supplies, will be integrated into existing infrastructure to ensure efficient deployment and oversight. Collectively, LBPD’s administrative experience, skilled personnel, and established physical resources provide a strong foundation for successful Project implementation and compliance with all CHP CTFGP requirements. 22 22 of 332
Schedule B
Detailed Budget Estimate
Award Number Organization/Agency Total Amount
30864 Laguna Beach Police Department $475,800.00
Cost Category Line Item Name Total Cost to Grant
Other Direct Costs
DUI Checkpoint Materials & Supplies $5,000.00
PAS Devices $2,500.00
Category Sub-Total $7,500.00
Personnel
Education/Outreach $57,600.00
DUI Saturation Patrol $104,000.00
DUI Checkpoint $120,000.00
Category Sub-Total $281,600.00
Equipment
DUI Message Board $84,000.00
DUI Equipment Van $102,700.00
Category Sub-Total $186,700.00
Grant Total $475,800.00
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Schedule B-1
Budget Narrative
Laguna Beach Police Department
Prior to engaging in grant-funded Saturation Patrols, DUI Checkpoints, or other enforcement activities in areas where the grantee does not have primary traffic jurisdiction, the grantee should consult with the agency having primary traffic jurisdiction.
Other Direct Costs
DUI Checkpoint Materials & Supplies
$5,000.00
DUI Checkpoint and Education Event Equipment & Supplies Description:
Non-expendable and durable equipment necessary to safely and effectively conduct DUI checkpoints and education events.
Quantity: Lump Sum
Unit Cost: N/A
Outfitting Cost: N/A
Total Cost: $5,000
Equipment Includes:
One commercial-grade Honda portable generator @ $1,500
Two commercial-grade pop-up canopies, 2 @ $500 ea = $1,000 Fatigue mats, 4 @ $125 = $500
High-visibility ANSI Class 3 safety vests, 20 @$75, $1,500 Duty-grade flashlights/headlamps: 10 @$100 = $1,000
Road safety and DUI checkpoint signage: Estimated lump sum = $3,000 Correlating CTFGP Activities:
6 DUI Checkpoints
12 “Know Your Limits” Education Events
These items are required to ensure officer safety, visibility, and operational effectiveness during grant-funded activities.
DUI Checkpoint & Event Supplies – $5,000
Grant funds are requested for materials and supplies necessary to safely and effectively conduct DUI checkpoints and education events. These items will be used throughout the Project Performance Period and include:
One commercial-grade Honda portable generator to provide power for checkpoint operations Two commercial-grade pop-up canopies to provide shelter for officers and equipment Fatigue mats to reduce officer fatigue during extended operations High-visibility ANSI Class 3 safety vests for officer safety Duty-grade flashlights/headlamps for nighttime operations Road safety and DUI checkpoint signage for advance warning and traffic control All items are directly related to approved project activities and are necessary to ensure safety, visibility, and operational effectiveness.
ANY ADDITIONAL PURCHASES NOT LISTED MUST BE APPROVED BY CGU PRIOR TO PURCHASE.
PAS Devices
$2,500.00
Preliminary Alcohol Screening (PAS) Devices
Description:
Hand-held Preliminary Alcohol Screening devices used to assist officers in detecting alcohol impairment during DUI enforcement operations.
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Schedule B-1
Budget Narrative
Laguna Beach Police Department
Prior to engaging in grant-funded Saturation Patrols, DUI Checkpoints, or other enforcement activities in areas where the grantee does not have primary traffic jurisdiction, the grantee should consult with the agency having primary traffic jurisdiction.
Quantity: 2
Unit Cost: $1,250
Outfitting Cost: N/A
Total Cost: $2,500
Correlating CTFGP Activities:
6 DUI Checkpoints
26 DUI Saturation Patrols
PAS devices are essential tools for DUI enforcement and will be used exclusively during grant-funded enforcement activities.
Personnel
DUI Checkpoint
$120,000.00
Personnel Overtime – DUI Checkpoints
Project Activity: 6 DUI Checkpoints
Grant funds are requested to support personnel overtime costs associated with conducting six (6) DUI checkpoints during the Project Performance Period. Each checkpoint will be staffed by approximately 25 personnel for 8 hours per operation, resulting in a total of 1,200 overtime hours (6 checkpoints × 25 personnel × 8 hours).
Classifications Assigned:
Police Officers
Sergeants (supervisory and operational oversight)
Rate of Pay (Overtime, including benefits):
Officer overtime rate with benefits: $60–$80 per hour
Sergeant overtime rate with benefits: $80–$100 per hour For budgeting purposes, the highest combined overtime rate of $100 per hour is used to ensure full coverage of wages and benefits.
Total Hours:
1,200 total hours × $100/hour = $120,000
All personnel services will occur within the Project Performance Period. No full-salary positions are requested.
These checkpoints directly support grant-funded impaired-driving enforcement activities approved under the Project.
DUI Saturation Patrol
$104,000.00
Personnel Overtime – DUI Saturation Patrols
Project Activity: 26 DUI Saturation Patrols
Grant funds are requested to support personnel overtime costs for twenty-six (26) DUI saturation patrols conducted during high-risk periods. Each patrol will be staffed by four (4) officers working 10 hours per patrol, resulting in 1,040 total overtime hours (26 patrols × 4 officers × 10 hours). 25 25 of 332
Schedule B-1
Budget Narrative
Laguna Beach Police Department
Prior to engaging in grant-funded Saturation Patrols, DUI Checkpoints, or other enforcement activities in areas where the grantee does not have primary traffic jurisdiction, the grantee should consult with the agency having primary traffic jurisdiction.
Classifications Assigned:
Police Officers
Rate of Pay (Overtime, including benefits):
Officer overtime rate with benefits: $60–$80 per hour
For budgeting consistency and to cover wages and benefits, the highest overtime rate of $100 per hour is applied.
Total Hours:
1,040 total hours × $100/hour = $104,000
All saturation patrols will occur within the Project Performance Period and within the Department’s primary traffic jurisdiction. No full-salary positions are requested.
Education/Outreach
$57,600.00
Personnel Overtime – “Know Your Limits” Education Events Project Activity: 12 “Know Your Limits” Education Events Grant funds are requested to support personnel overtime costs for twelve (12) education and outreach events focused on impaired-driving prevention. Each event will be staffed by eight (8) officers working 6 hours per event, resulting in 576 total overtime hours (12 events × 8 officers × 6 hours).
Classifications Assigned:
Police Officers
Sergeants (as needed for supervision)
Rate of Pay (Overtime, including benefits):
Officer overtime rate with benefits: $60–$80 per hour
Sergeant overtime rate with benefits: $80–$100 per hour For budgeting purposes, the highest overtime rate of $100 per hour is used.
Total Hours:
576 total hours × $100/hour = $57,600
All personnel services will occur within the Project Performance Period. These events support grant-funded education and prevention objectives and do not replace routine duties. * 6 Allowable hours are to cover 5 hrs for the event and 1 hour for set-up/tear down
Equipment
DUI Equipment Van
$102,700.00
Commercial-Grade DUI Operations Vehicle (Cargo Van)
Description: One commercial-grade heavy-duty cargo van to support DUI checkpoints, DUI saturation patrols, and “Know Your Limits” education events. The vehicle will be used to transport, deploy, and securely store DUI checkpoint and outreach equipment.
The vehicle will be clearly marked with approved DUI enforcement messaging and/or decals identifying the vehicle as supporting impaired-driving enforcement and education efforts. Messaging may include statements such as “For DUI Enforcement — Always Designate a Sober Driver” or similar CHP-approved
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Schedule B-1
Budget Narrative
Laguna Beach Police Department
Prior to engaging in grant-funded Saturation Patrols, DUI Checkpoints, or other enforcement activities in areas where the grantee does not have primary traffic jurisdiction, the grantee should consult with the agency having primary traffic jurisdiction.
impaired-driving prevention messaging. All vehicle markings, messaging, and logos will be submitted to CHP for approval prior to installation.
Quantity:1
Unit Cost: $75,000
Outfitting Cost: $27,700 (standard police equipment only) Total Cost: $102,700
Outfitting Description:
The vehicle will be outfitted with standard police equipment consistent with the Department’s patrol fleet, including emergency light bar, siren, radio equipment, and rear cargo-area equipment racks. No non-standard or administrative equipment is included.
Correlating CTFGP Activities:
6 DUI Checkpoints
26 DUI Saturation Patrols
12 “Know Your Limits” Education Events
This vehicle is necessary to efficiently and safely conduct all grant-funded enforcement and education activities within the Department’s jurisdiction.
* NOTE: CGU WILL ONLY COVER 1 YEAR RADIO ESSENTIAL SERVICE- AGENCY IS RESPONSIBLE FOR
REMAINING WARRANTY COSTS
DUI Message Board
$84,000.00
Radar / Message Boards (Speed Display and Messaging Capability) Description:
Radar/message boards capable of displaying vehicle speed, collecting speed data, and displaying impaired-driving prevention messaging.
Quantity: 4
Unit Cost: $21,000
Outfitting Cost: N/A
Total Cost: $84,000
Correlating CTFGP Activities:
6 DUI Checkpoints
26 DUI Saturation Patrols
12 “Know Your Limits” Education Events
These units will be deployed during checkpoints and patrols to increase visibility, deter unsafe speed, and reinforce DUI/DUID prevention messaging. When not used for enforcement, the boards will support education and outreach activities.
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STAFF REPORT
Meeting Date:
July 21, 2026
BUSINESS
13 SUBJECT: STATUS UPDATE ON THE DOWNTOWN SPECIFIC PLAN PHASE II UPDATE,
TENANT MIX AND ECONOMIC DIVERSITY, AND LEGISLATIVE ADVOCACY RECOMMENDATION: It is recommended that the City Council:
1. Receive and file this status update on the Downtown Specific Plan Phase II Update, and direct staff to pause further processing of the Downtown Specific Plan Phase II Update pending the General Plan Update and Seventh Cycle Housing Element process;
2. Direct staff to work with the Ad Hoc Economic Development Committee to evaluate Downtown tenant mix and land use regulations and return with recommendations; and
3. Provide direction regarding legislative advocacy related to wildfire resilience, State housing policy, and grant opportunities.
SUMMARY OF THE MATTER
The Downtown Specific Plan (DSP) Phase II Update was initiated to implement the City's certified Sixth Cycle Housing Element and has progressed to a screen check version of the Program Environmental Impact Report.1 In light of recent changes to State housing law and California Environmental Quality Act (CEQA), staff recommends pausing further processing of the DSP Phase II project while preserving the work completed to date and reevaluating the appropriate path forward in conjunction with the upcoming General Plan Update and Seventh Cycle Housing Element. This report also seeks City Council direction regarding legislative advocacy and future evaluation of Downtown tenant mix and economic diversity.
DISCUSSION
The Downtown Specific Plan study and update has been underway for several years and represents one of the City's primary implementation programs for the certified 2021–2029 Housing Element. In 2019, the City Council directed that the comprehensive DSP update be completed in two phases. Phase I focused primarily on streamlining business permitting and updating commercial development standards and was ultimately adopted. Housing related issues, including residential density, building heights, parking standards, and other land use changes necessary to facilitate additional housing opportunities, were intentionally deferred to Phase II due to their complexity and the need for comprehensive environmental review. Specifically, the City's Sixth Cycle Housing Element includes Program 5.2-4 (Downtown Specific Plan Phase 2), which commits the City to pursue Phase II of the DSP update and identifies incentives that could be implemented to increase housing supply.
As part of staff’s efforts during the current Housing Element cycle, the City secured grant funding from the Southern California Association of Governments (SCAG) relating to the DSP II CEQA effort, retained an environmental consultant team, completed the technical studies necessary to support a Program Environmental Impact Report (Program EIR), and conducted extensive policy discussions with the City 1 A screen check version is essentially an internal administrative draft circulated to City staff and the project team for review and comment before a public draft is released. 1 of 21
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Council regarding the potential scope of Phase II amendments. Those discussions focused on balancing the City's obligation to implement its certified Housing Element while preserving the unique character and pedestrian oriented nature of Downtown Laguna Beach.
The project has now advanced to the point where the Program EIR is essentially at a screen check ready draft. Under normal circumstances, the next step would be to complete the administrative review, circulate the Draft EIR for public review, and continue processing the Downtown Specific Plan Phase II amendments.
Since work on the environmental document began, however, the State has enacted significant changes to CEQA. Most notably, Senate Bill 131 created a new statutory exemption for qualifying rezonings and zoning text amendments that implement commitments contained within a California Department of Housing and Community Development (HCD)-approved Housing Element. In May 2026, HCD issued formal implementation guidance confirming that the exemption extends beyond zoning map changes to include zoning text amendments such as increasing residential densities, modifying development standards, reducing parking requirements, allowing residential uses by right, and other zoning changes that directly implement Housing Element programs. The guidance also confirms that related General Plan amendments necessary to maintain consistency may likewise qualify for the exemption.
Because Program 5.2-4 (DSP Phase II) is part of the schedule of actions in the City's approved Housing Element, the rezoning actions that implement it — including zoning text amendments — qualify for the statutory CEQA exemption under Public Resources Code Section 21080.085 (SB 131), provided they are consistent with the Program. As HCD's May 2026 guidance confirms, the exemption reaches zoning text amendments, not just zoning map changes. The City may therefore adopt Phase II amendments in reliance on the SB 131 exemption and need not complete the Program EIR to do so.
Staff believes this new statutory framework warrants a strategic reassessment before additional resources are expended on completing the Program EIR.
First, the City has reached a point where continuing to invest significant time and financial resources in an environmental document may no longer be necessary if the underlying legislative actions qualify for a statutory CEQA exemption.
Second, although CEQA serves an important environmental purpose, environmental documents frequently become the subject of legal challenges that may extend well beyond environmental issues themselves. A statutory exemption provides substantially greater procedural certainty and reduces the potential for litigation over environmental review where the Legislature has expressly determined that CEQA does not apply.
Third, pausing the Program EIR does not place the City out of compliance with its Housing Element.
Program 5.2-4 commits the City to adopt Phase II amendments, not to prepare an EIR, and SB 131 now provides an exemption that satisfies CEQA for those amendments without one. The City therefore remains able to implement Program 5.2-4 on the timeline of the General Plan Update and looking towards the Seventh Cycle Housing Element, refining the appropriate densities and development standards through that process, and adopting the amendments when either of those efforts conclude. SB 131 also allows the City 2 of 21
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to take smaller DSP II implementation actions more immediately, if it desires, without improper piecemealing (so long as consistent with the Housing Element Program).
Finally, and perhaps most importantly, staff believes the timing presents an opportunity for a broader community conversation regarding housing policy. Throughout the Downtown Specific Plan process, many community members have expressed understandable concerns regarding adding significant residential density to the cherished downtown core, including second and third story residential development. Staff also recognizes that many residents may not be fully aware of how many of these discussions are driven by State Housing Element law and the Regional Housing Needs Assessment (RHNA).
As the City prepares to begin its comprehensive General Plan Update while simultaneously approaching the Seventh Cycle Housing Element, staff believes it would be beneficial to pause the Downtown Specific Plan Phase II project in its current state while preserving the substantial work completed to date. Doing so would allow the City to engage the community in a broader discussion regarding ways to protect the downtown areas, State housing mandates, the City's legal obligations to zone sufficient capacity for assigned housing needs, the distinction between zoning for housing and actually constructing housing, and the significant consequences, including the potential loss of local land use authority, that may result from failing to maintain compliance with State Housing Element law.
It is important to emphasize that pausing the Downtown Specific Plan Phase II Update project should not be misconstrued as a policy decision that some level of additional residential density will not ultimately be accommodated within the Downtown. Rather, staff believes the Downtown should be evaluated as one component of a comprehensive citywide strategy during preparation of the Seventh Cycle Housing Element and General Plan Update.
Before determining the appropriate amount of residential capacity in the Downtown, the City should first holistically evaluate all potential opportunity sites throughout the community, including consideration of the former St. Catherine’s site. That broader planning effort may conclude that the Downtown remains an appropriate location for a significant portion of future housing capacity, that a portion of the allocation can be more appropriately accommodated elsewhere, or that a combination of locations across the community provides the best overall solution.
By evaluating the community as a whole first, the community will be better positioned to consider a level of downtown residential units and density that is proportional to the City's overall housing strategy rather than making that determination in isolation.
Ultimately, the fundamental policy question facing the City is not whether housing obligations exist, but where those obligations should be accommodated. The City's developable land is finite, while the State assigns a prescribed number of housing units that must be planned for through zoning. In many respects, this is analogous to squeezing a balloon. As pressure is applied in one location, it simply shifts somewhere else. Likewise, the City must identify sufficient zoning capacity somewhere within its boundaries, and every potential opportunity site presents its own set of tradeoffs and constraints. 3 of 21
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Importantly, neither the City Council nor City staff seeks to fundamentally alter the character of Laguna Beach, especially of the Downtown. To the contrary, preserving the city's unique coastal character remains a core objective of all of our planning documents. The challenge before the City government is to determine where State mandated housing capacity can best be accommodated while minimizing impacts to neighborhood character, environmental resources, and quality of life.
Given the significance of these policy considerations and the new statutory CEQA framework, staff believes it is appropriate to pause further processing of the Downtown Specific Plan Phase II amendments, preserve the work product completed to date, and revisit the broader question of community-wide housing capacity as part of the upcoming General Plan Update and Seventh Cycle Housing Element process. This approach provides an opportunity to engage the community in a more comprehensive discussion regarding the City's long term land use vision while ensuring future zoning decisions are informed by evolving State law, community priorities, and a holistic evaluation of all potential housing opportunity sites.
Tenant Mix and Economic Diversity
At its June 23, 2026 meeting, the City Council expressed concern regarding the current tenant mix within the Downtown Specific Plan area and the City's ability to attract and retain a diverse mix of businesses that contribute to a vibrant, economically resilient downtown. During that discussion, the Council considered the concept of engaging a consultant to further evaluate the issue. While no formal direction was provided at that time, staff's understanding was that there was general interest from the Council in taking a more comprehensive look at the Downtown's land use regulations and whether they continue to reflect the community's economic development objectives.
Because this report recommends pausing the Downtown Specific Plan Phase II Update project, staff believes it is important that momentum on this separate policy issue not be lost. The question of tenant mix and economic diversity is largely independent of the broader housing and land use issues associated with the DSP Phase II update and could continue to be evaluated while the City undertakes the General Plan Update and prepares for the Seventh Cycle Housing Element.
Staff also believes there is heightened importance in evaluating this issue following the completion of the City's Promenade Project. The Promenade represents a significant public infrastructure investment intended to enhance the Downtown experience, improve walkability, and create a more inviting public realm. With that investment now complete, the City has a unique opportunity to thoughtfully evaluate whether the existing land use regulations continue to support the type and diversity of businesses that will best serve both the Downtown as a whole and the Promenade corridor specifically. Ensuring that the City's regulatory framework aligns with the community's economic development goals is an important next step in maximizing the long term public benefit of that investment.
Accordingly, staff recommends that the City Council provide direction for staff to work with the City Council's Ad Hoc Economic Development Committee, consisting of Council Member Sue Kempf and Mayor Mark Orgill, to evaluate the existing land use limitations contained within the Downtown Specific Plan and determine whether amendments should be considered to better promote a healthy and balanced mix of businesses.
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As one example discussed by the Council on June 23, the Downtown Specific Plan currently limits dessert type businesses, including ice cream parlors, to a maximum of 15 establishments within the Specific Plan area. There are currently seven such businesses operating within the Downtown. While this category was specifically discussed, it represents only one example of several business classifications and numerical limitations that could be evaluated to determine whether they continue to reflect current market conditions, community preferences, and the City's long term economic development goals.
If directed by the City Council, staff would work collaboratively with the Ad Hoc Economic Development Committee to review the existing land use limitations, engage with the business community and other stakeholders as appropriate, and return to the City Council with recommendations regarding potential amendments, including the process, environmental review, and public hearing requirements necessary to implement any proposed changes. This effort would allow the City to continue advancing economic vitality initiatives within the Downtown while the broader housing and land use policy questions are considered through the General Plan Update and Seventh Cycle Housing Element process.
Legislative Advocacy
Laguna Beach faces a unique set of challenges that distinguish it from nearly every other coastal community in California and should be considered as the City continues to implement State housing mandates.
Approximately 75 percent of the City's land area is designated as a Very High Fire Hazard Severity Zone (VHFHSZ). While several other coastal communities, including Malibu, Rancho Palos Verdes, and portions of Santa Barbara, share similar wildfire challenges, very few incorporated coastal cities have as large a proportion of their land area designated as VHFHSZ as Laguna Beach.
As a result, roughly three out of every four acres within the City are subject to enhanced wildfire building standards, defensible space requirements, and ongoing vegetation management obligations. Beyond wildfire exposure, the City's ability to accommodate future housing is further constrained by steep topography, environmentally sensitive lands, limited infrastructure, and significant evacuation challenges.
The community is served by only three primary evacuation routes consisting of northbound and southbound Pacific Coast Highway and Laguna Canyon Road, each of which can be compromised during, for example, a wildfire incident. These routes are fed by an extensive network of narrow, winding hillside residential streets that present additional challenges during emergency evacuations.
Given these unique circumstances, staff recommends that the City Council ask our legislative advocacy consultant (Townsend Public Affairs or “TPA”) to represent these specific City interests before the State Legislature. Many recently enacted State housing laws have been developed using a one size fits all approach that does not fully account for the extraordinary wildfire risk, evacuation constraints, and physical limitations facing communities such as Laguna Beach. As the State continues to assign Regional Housing Needs Assessment allocations, greater consideration should be given to communities where a substantial majority of the land area is already significantly constrained by wildfire hazards and public safety considerations.
The City is already investing substantial financial resources each year to reduce wildfire risk associated with existing residential development through vegetation management, fuel modification, emergency 5 of 21
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preparedness, and infrastructure improvements. As residential density increases, so too will the demands on evacuation planning, emergency response, infrastructure, and ongoing wildfire mitigation. These cumulative costs have the potential to create financial obligations that may exceed the City's long term ability to sustainably address while also creating unintended public safety consequences beyond those contemplated by well-intentioned State housing legislation.
In addition to advocating for greater legislative recognition of these unique circumstances, staff recommends that TPA also be directed to identify and pursue additional State and federal grant opportunities, funding programs, and technical resources to assist the City in reducing wildfire interface risks. Staff also recommends exploring partnerships with similarly situated jurisdictions facing comparable wildfire and housing challenges to collectively advocate for legislative reforms that better balance the State's housing objectives with public safety, wildfire resilience, and the realities confronting California's highest wildfire risk coastal communities.
FINANCIAL ANALYSIS
Suspending further processing of the Downtown Specific Plan Phase II Update is anticipated to avoid additional consultant costs associated with completion of the Program Environmental Impact Report and related environmental review beyond those already incurred. In addition, pausing the project will allow staff resources currently dedicated to the Downtown Specific Plan Phase II Update to be redirected toward other City priorities, including the upcoming General Plan Update and Seventh Cycle Housing Element.
The current contract with TPA includes both legislative advocacy and grant writing, so this section of the “ask” is covered within the current budgeted amount of $84,000 for these services.
ALIGNMENT WITH CITY COUNCIL GOALS AND PRIORITIES
This item supports the City Council's priorities related to long range planning, economic vitality, wildfire resilience, and organizational effectiveness by advancing implementation of State housing requirements, evaluating Downtown economic diversity, and exploring legislative advocacy opportunities that address Laguna Beach's unique planning constraints.
ENVIRONMENTAL ANALYSIS
The recommended action is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15306 (Class 6 – Information Collection) because the proposed action consists of research, planning, and evaluation activities that do not result in a serious or major disturbance to an environmental resource. The City Council's action is limited to receiving a status update, providing policy direction regarding the future processing of the Downtown Specific Plan Phase II Update, evaluating alternative implementation strategies in light of recent changes to State law, and providing direction regarding related legislative advocacy and tenant mix initiatives. No approval of amendments to the Downtown Specific Plan, General Plan, Zoning Code, or other land use entitlements is being considered at this time.
In addition, the recommended action is exempt pursuant to CEQA Guidelines Section 15061(b)(3), the Common Sense Exemption, because it can be seen with certainty that there is no possibility the action may 6 of 21
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have a significant effect on the environment. The recommended action does not approve any physical development, authorize any changes to land use or development standards, or commit the City to any future course of action that could result in a physical change to the environment. Any future legislative actions, including amendments to the Downtown Specific Plan or related land use regulations, will be evaluated for compliance with CEQA at the appropriate time.
ATTACHMENTS
1. May 19, 2026 HCD Memorandum – CEQA Reforms for Housing Element Rezoning (Pgs. 8-15)
2. Downtown Specific Plan Area Land Use Map and Table (Pgs. 16-18) Submitted By: Matthew Schneider Approved: Dave Kiff.
Matthew Schneider, Director of
Community Development
Dave Kiff, City Manager
Report Prepared By: Coordinated With:
Matthew Schneider, Director of Community
Development
Jane Abzug, Assistant City Attorney
Anthony Viera, Deputy Director of Community
Development
Kate Kazama, Senior Planner
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STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor
DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT
DIVISION OF HOUSING POLICY DEVELOPMENT
651 Bannon Street, Suite 400
Sacramento, CA 95811
(916) 263-2911 / FAX (916) 263-7453
www.hcd.ca.gov
May 19, 2026
MEMORANDUM FOR: Planning Directors and Interested Parties FROM: David Zisser, Deputy Director
Division of Housing Policy Development
SUBJECT: California Environmental Quality Act (CEQA) Reforms for Housing Element Rezoning (Public Resources Code Section 21080.085) Recent legislative changes enacted last year through Assembly Bill (AB) 130 and Senate Bill (SB) 131 made significant reforms to the California Environmental Quality Act (CEQA) to accelerate the development of housing, including housing affordable to lower-income households. These measures create and expand CEQA exemptions aimed at reducing delays and legal challenges that have historically impeded housing production, particularly in higher-need areas. This Memorandum is intended to guide local jurisdictions in understanding and utilizing these new authorities, in particular the housing element rezoning provisions of SB 131.
SB 131 (Chapter 24, Statutes of 2025) adds section 21080.085 to the Public Resources Code. This new section establishes a statutory exemption from CEQA for rezoning undertaken to implement the schedule of actions in a housing element that has been “approved” by the California Department of Housing and Community Development (HCD).
In other words, if HCD has found that the adopted housing element meets the statutory requirements of Housing Element Law (Gov. Code, § 65580 et seq.), the rezoning actions included in the housing element’s schedule of actions required under Government Code section 65583, subdivision (c), now qualify for CEQA exemption.
The exemption does not apply to rezoning that would allow construction of certain large warehouses (e.g., distribution centers) or oil and gas infrastructure, or development within areas defined as “natural and protected lands” under Public Resources Code section 21067.5. However, prime agricultural land may still be eligible if it is included in the housing element’s schedule of actions.
Attachment 1
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California Environmental Quality Act (CEQA) Reforms for Housing Element Rezoning
If a site includes both eligible land and areas classified as “natural and protected lands,” the exemption may still apply if the rezoning explicitly excludes the protected portions.
Any future rezoning of excluded natural and protected lands would not qualify for this exemption.
Rezoning plays a critical role in accelerating housing choices and affordability and advancing housing element implementation, including remaining on track to meet the regional housing needs allocation (RHNA) targets, affirmatively furthering fair housing, removing constraints on the development of affordable housing, and other statutory obligations.
Timely rezoning increases the supply of adequately zoned land for housing and related actions, which directly impacts a jurisdiction’s ability to demonstrate adequate capacity and compliance with Housing Element Law.
By exempting these qualifying rezoning actions from CEQA, SB 131 allows local governments to expedite relevant land use and zoning changes, thereby promoting housing production, reducing delays, and facilitating the timely implementation of local housing strategies.
For a full copy of the statute, please see Attachment B or refer to http://leginfo.legislature.ca.gov/.
If you have any questions, or would like additional information or technical assistance, please submit a request through the Housing Accountability Unit (HAU) Portal at https://www.hcd.ca.gov/hau/portal or email HCD at [email protected]. 9 9 of 21
ATTACHMENT A
Frequently Asked Questions
1. Can an “approved” housing element include an adopted element prior to the rezoning action?
Yes. An “approved” housing element includes one that has been reviewed and determined by HCD to either 1) be in substantial compliance with Housing Element Law or 2) meet the statutory requirements of Housing Element Law.
In some cases, a jurisdiction’s adopted housing element has been found to meet statutory requirements but is not yet in substantial compliance due to missing statutory rezone deadlines.1 In this case, for the CEQA exemption to apply, the jurisdiction must have formally adopted its housing element and received a determination from HCD that the element meets the statutory requirements of Housing Element Law, even if it cannot yet be substantially compliant. The exemption applies to subsequent qualifying rezoning actions undertaken to carry out the adopted plan.
2. Is the exemption limited to rezoning needed to accommodate the RHNA? No. The exemption is not limited to rezoning for RHNA compliance, such as rezoning to address a shortfall of sites or rezoning sites identified in a prior housing element cycle. It also applies to other zoning changes identified in the housing element, provided they are consistent with its implementation. This can include, but is not limited to, rezoning actions aimed at affirmatively further fair housing, reducing procedural barriers, increasing density, modifying development standards such as heights and parking requirements, or allowing for a broader range of housing types in single-family zones.
3. Can the exemption be used for a general plan amendment that is necessary to ensure consistency between the general plan and the rezoning? Yes. A general plan amendment that is related to the zoning action and necessary to maintain consistency with the rezoning is exempt from CEQA under SB 131.
General plan amendments may be to the land use map or text. Examples include but are not limited to increasing allowable densities, changing the land use map, modifying or adding land use designations, and revising or establishing land use policies. The general plan action may occur concurrently or before the zoning action. 1 Gov. Code, § 65583, subd. (c)(1)(A)(i).
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Attachment A
4. Is the exemption for “rezoning” limited to changing the zoning map? No. The CEQA exemption under SB 131 is not limited to changes to the zoning map.
The exemption also applies to amendments to the zoning code text, as long as those changes are consistent with the jurisdiction’s adopted housing element.
Rezoning actions often involve a combination of map and text changes. However, in some cases, a jurisdiction might only change either the zoning map or the zoning text. The rezoning exemption would apply to both cases. For example, a jurisdiction could use the CEQA exemption for only text amendments that include allowing residential uses by right, increasing allowable densities, adding affordability requirements, incorporating residential performance standards in non-residential zones, or other refinements that implement housing element commitments.
In short, the exemption can apply to changes to the zoning map, the zoning text, or both. For example, qualifying rezoning actions may include:
• Changing the zoning map within an existing district.
• Modifying a zoning district through a text amendment. • Applying a combining district to an existing district on the zoning map. • Making text-only changes, such as permitting residential uses by right.
5. Does the exemption apply to programs that require rezoning later in the planning period to maintain adequate sites?
Yes. If the housing element includes a program with a specific commitment and discrete timing to comply with No Net Loss Law (Gov. Code, § 65863), any rezoning necessary to maintain adequate sites pursuant to No Net Loss Law can qualify for the CEQA exemption.
6. Does the exemption apply to housing element programs with more general language, such as “consider,” “explore,” or “evaluate”? Yes. The exemption may apply if the housing element program includes general language, provided the program also contains a commitment to establish, adopt, complete, or undertake other specific deliverables by a defined timeframe. For example, many housing element programs include an action to “examine” or “explore” opportunities but also commit to adopt zoning by a specified date. In such cases, the exemption would apply to the resulting rezoning.
However, programs that do not have a specific commitment to a zoning-related deliverable would not be covered by the exemption. For example, if a jurisdiction pursues a rezoning based on a study that was the subject of a program, that rezoning would not be covered by the exemption because the program did not commit to complete a rezoning.
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Attachment A
As part of evaluating whether the exemption applies to programs with less specific language, a jurisdiction should also consider the background analysis in the housing element. For example, a program could commit to “evaluate and address an identified zoning constraint, if appropriate.” In this case, if the analysis portion of the housing element identifies a constraint, the commitment in the program is clearly intended to address the constraint. A rezone to address the identified constraint would therefore qualify for the CEQA exemption.
7. Does the rezoning exemption apply only to legislative actions initiated by the local government, or can it also apply to applicant-initiated projects on housing element sites that have not yet been rezoned (e.g., when a developer seeks entitlements before the city has completed the required rezoning and is asked to submit a rezoning application)?
The exemption is primarily intended for rezoning actions initiated by local governments to implement an approved housing element and meet RHNA obligations. While rare, the exemption could apply to an applicant-initiated rezoning if the project is consistent with program commitments (e.g., minimum densities, 20 percent affordability, residential performance standards).
8. Does the exemption apply to sites proposed for rezoning within the Coastal Zone?
Yes. The CEQA rezoning exemption may apply to sites within the Coastal Zone, except where those sites fall under the definition of “natural and protected lands,” which includes environmentally sensitive areas within the Coastal Zone pursuant to Public Resources Code section 21067.5. However, local governments are already exempt from CEQA compliance for all coastal rezonings and other Local Coastal Program activities and approvals pursuant to Public Resources Code section 21080.9.
Neither of the CEQA exemptions under AB 130 or SB 131 eliminate the requirement for local governments to submit coastal rezonings to the Coastal Commission for review and certification under the Coastal Act. The Coastal Commission itself, which is responsible for CEQA compliance for Local Coastal Program actions, may use the CEQA rezoning exemption for qualifying LCP rezoning actions that implement adopted housing element programs. However, the Coastal Commission has a CEQA equivalency process that it can use to satisfy its CEQA obligation. 12 12 of 21
Attachment A
9. Does the exemption require an environmental impact report (EIR) in prior discretionary actions such as housing element adoption? No. Jurisdictions can use various types of environmental review in discretionary actions that are related to the housing element. However, relying solely on the SB 131 exemption and not conducting the appropriate environmental review for discretionary actions such as housing element adoption may complicate the ability to streamline future housing projects. For example, some CEQA streamlining provisions such as SB 226 or CEQA Guidelines section 15183 require an existing Program EIR or General Plan EIR as a foundation. In addition, conducting a thorough environmental review early in the planning process (e.g., general plan, housing element) can support future CEQA tiering, allowing subsequent projects to rely on that analysis and avoid duplicative review, thereby significantly streamlining subsequent actions and projects. Jurisdictions could prepare an EIR during the housing element update or as part of a broader general plan update to better utilize future tiering and help preserve streamlining options.
10.If a rezoning action qualifies for the CEQA exemption under SB 131, is the agency still required to notify and consult with tribes under AB 52? Not explicitly. Tribal consultation is typically addressed at earlier stages of the planning hierarchy, including as part of the general plan amendment process and in accordance with SB 18 (Gov. Code, §§ 65352 and 65352.3), and should be conducted at those stages to inform subsequent actions. However, the SB 131 CEQA exemption for certain rezoning actions does not reference AB 52 (Chapter 532, Statutes of 2014) or include a separate consultation requirement. As a result, a rezoning action qualifying for the SB 131 exemption would not trigger AB 52 consultation. Please note that AB 130 infill exemptions, on the other hand, do include explicit requirements for tribal consultation.
That said, even when consultation is not required under SB 131, agencies are strongly encouraged to engage in early and meaningful communication with California Native American tribes as a matter of best practice.
11.Can the rezoning exemption apply to natural and protected lands? No, the exemption specifically does not apply to a rezone that contains natural and protected lands as defined in Public Resources Code section 21067.5. However, a jurisdiction could consider a split zoning on a parcel that excludes natural and protected portions to better integrate housing with natural and protected lands. For example, while a parcel may have natural and protected lands, these lands may not comprise the entire parcel and a rezoning could only be applied to a portion of a parcel that does not contain natural and protected lands. 13 13 of 21
ATTACHMENT B
Changes to Public Resources Code
SB 131 (Chapter 24, Statutes of 2025)
Public Resources Code Section 21080.085
SB 131 (Changes in underline) Statutory Language
21080.085. (a) This division does not apply to a rezoning that implements the schedule of actions contained in an approved housing element pursuant to subdivision (c) of Section 65583 of the Government Code.
(b) (1) Subdivision (a) does not apply to either of the following:
(A) A rezoning that would allow for the construction of a distribution center or for oil and gas infrastructure.
(B) A rezoning that would allow for construction to occur within the boundaries of any natural and protected lands as defined pursuant to Section 21067.5. (2) (A) (i) Subdivision (a) applies to a rezoning that contains within its boundaries any natural and protected lands as defined pursuant to Section 21067.5 if those natural and protected lands are excluded from the rezoning.
(ii) The definition of “natural and protected lands” described in clause (i) does not include the lands described in subdivision (p) of Section 21067.5. (B) The rezoning of any parcel or portions of a parcel that is excluded from a rezoning under this paragraph shall be a separate project that is subject to this division.
(Added by Stats. 2025, Ch. 24, Sec. 6. (SB 131) Effective June 30, 2025.) 14 14 of 21
ATTACHMENT C
Resources
Association of Bay Area Governments (ABAG) Technical Assistance: Assembly Bill (AB) 130 and Senate Bill (SB) 131
Governor’s Office of Land Use and Climate Innovation CEQA Resources and Technical Advisories
Department of Housing and Community Development (HCD) Housing Element Building Blocks
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Attachment 2
16 16 of 21
17 17 of 21
18 18 of 21
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STAFF REPORT
Meeting Date:
July 21, 2026
BUSINESS
14 SUBJECT: AWARD OF CONTRACT FOR MOBILE PARKING PAYMENT SYSTEM TO IPS GROUP, INC. AND RELATED ACTIONS
RECOMMENDATION: It is recommended that the City Council:
1. Award a contract to IPS Group, Inc. to provide the City with a new mobile parking payment system (MPPS) for a five-year term, with the option of five, one-year extensions upon mutual agreement of the parties, and implement a $.50 transaction fee to all parking transactions;
2. Cancel IPS Agreement Contract No. 24-35 for parking meter device and repair services;
3. Incorporate new and amended terms of Contract No. 24-35 with IPS for parking meter device and repair services, in an amount not to exceed $1,000,000 for a five-year term and authorize the City Manager or his designee to execute the agreement, in a form approved by the City Attorney;
4. Authorize the City Manager to execute the fourth amendment with Frog Parking, Inc., in a form approved by the City Attorney, to identify transaction cost in the amount of $0.25 per transaction in an amount estimated as $11,000.00 per month for six months from May 2026 through October 31, 2026; and
5. Find the action exempt under the California Environmental Quality Act under CEQA Guidelines Section 15061(b)(3).
SUMMARY OF THE MATTER
As part of the City’s Parking Management Plan (PMP), the City operates a mobile parking payment system, which collects electronic parking fees at the City’s parking lots and on street parking locations with both pay stations and parking meters. The mobile parking system operates through the Laguna Beach Parking App owned by the City. The current system was implemented in 2019, and it has been six years since the City has gone out to bid for a mobile parking system. Parking technology has changed significantly over those years, and an updated mobile parking system will enhance customer experience, provide additional revenue for the City, reduce vendor costs, provide enhanced technology, and in the future could provide more effective integration with software currently used by the Police Department for parking citations. The City issued a Request for Proposal (RFP) for a new vendor and based on the proposals staff is recommending the City Council award of the contract to IPS Group, Inc. (IPS).
Based on the existing contract with IPS for parking meter operations and transaction processing, it is recommended to combine Contract No. 24-35 into a new agreement to reflect new terms. The cost of repairs and maintenance of parking meters will not change during the term of this contract. In addition, due to the expiration of the contract with the current mobile parking payment system, Frog Parking, Inc. staff is requesting an amendment to the contract to include both the monthly fee and the per transaction fee during the IPS implementation process.
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DISCUSSION
The Mobile Parking Payment System (MPPS) is key to managing the City’s parking inventory. The MPPS provides the customer with payment options that include voice, website, SMS/texting, Apple and Google Pay and are compatible with iOS and Android operating systems. The system works with the City’s zone system, allows a number of license plates to be registered to one account, pay as a guest without downloading the app, provide customer messaging and identify parking availability, purchase of additional time, may in the future integrate with the Police Department License Plate Reader (LPR) technology, provide overall support for the system, and ensure the City is receiving the revenue it is due.
The City hired Dixon Resources Unlimited (Dixon) for parking consultancy services to provide staff with expert assistance with parking technologies to move forward with the project. A team of City staff worked with Dixon to ensure that the City receives the most integrated, cost-effective payment system available.
The City issued the Mobile Parking RFP on March 31, 2026, and received seven responses on May 8, 2026.
The bidders are identified below:
Bidder Location Responsive Bid
Arrive/ParkMobile, LLC Atlanta, GA Yes
Frogparking Irvine, CA Yes
FSH Technologies Philadelphia, PA No
IPS Group, Inc. San Diego, CA Yes
Passport Labs, Inc. Charlotte, NC Yes
PGS Unknown No
ZipBy Pompano Beach, FL No
Staff evaluated each of the proposals based on responsiveness, quality of the scope of services, applicability of references and experience and technical solutions. After the first review, staff then requested four vendors to participate in interviews with both Dixon and the City including staff from the Transit and Community Services Department and Police Department. Staff interviewed four firms and based on the responsiveness of the proposals and interviews conducted, staff recommend IPS Group, Inc. (IPS). Attachment 1 is the proposed professional services agreement with IPS for these services.
The ratings by staff are presented in the table below.
Evaluation Criteria
Max
Points
Per
Evaluator
Max
Points (6
evaluators
Arrive
Total
Frog Parking
Total
IPS Group
Total
Passport
Total
User Interface and Usability 5 30 25 20 27 26.5
Features and Functionality 5 30 26 19.5 28 27
Back-office Functionality 5 30 24 20 29 25
Integration Capability 5 30 24 22 27 25
Support and Help Desk 5 30 29 19 27 22
Experience and Project Management 5 30 29 21 28.5 28
Overall Requirements Compliance 10 60 42 39 54 45
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Overall Value 10 60 42 41 55 49
Grand Total 300 241 201.5 275.5 247.5
Based on the evaluation criteria described above, IPS Group, Inc. received the highest overall score of the four firms interviewed (275.5 out of 300 points), reflecting the strongest ratings for back-office functionality, integration capability, and overall value. IPS’s proposed transaction fee is also comparable to, or lower than, the fees proposed by the other responsive bidders, as shown in the comparison below.
Transaction Fee Comparison by Vendor (Per Transaction, Paid by End User) Transaction Type Arrive FrogParking IPS Passport
Mobile App Payment $0.65 $0.25* $0.50** $0.50
Voice Payment $0.65 N/A* $0.50** $0.50
Web Browser Payment $0.65 $0.25* $0.50** $0.50
SMS / Text Payment $0.65 N/A* $0.50** N/A
Extending Time $0.65 $0.25* $0.50** $0.50
Digital Wallet $0.25 $0.25* N/A $0.50
*FrogParking’s proposal excludes voice and SMS/text payment options. **IPS’s per-transaction fee is $0.35 plus a $0.15 merchant processing fee, shown here combined as $0.50.
In addition to being the highest-rated proposal, awarding the contract to IPS allows the City to consolidate its existing parking meter device and repair services agreement (Contract No. 24-35) into a single new agreement with IPS, rather than administering two separate contracts for related parking services.
Combining the agreements also allows the City to capture several added benefits at no additional cost, including:
• The extension of the parking meter repair and maintenance contract will not result in any additional costs to the City;
• A credit toward the buyback of up to 1,000 existing single-space meters, valued at $100,000 over the term of the contract;
• A 2-year extension of the warranty on future pay station purchases, valued at $79,000; and • Inclusion of the IPS Elevate parking-analytics platform at no cost, a service that would otherwise cost the City $260,000 annually.
In addition, because the new fee structure shifts the transaction and merchant processing fees to the end user rather than the City, and because the full parking fee revenue will now be remitted to the City, staff estimates the City will realize approximately $250,000 in annual savings while retaining 100% of parking fee revenue for the first time.
Cost Savings Summary
Cost Savings Category Detail Value
Reduced Meter Contract
Cost
No additional costs for parking meter repair and maintenance No additional costs Transaction Fee Shift to
End User
Estimated annual savings as the transaction fee structure changes so fees are paid by the end user rather than the City $250,000 estimated
annual savings
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Full Parking Fee
Remittance
Full parking fee revenue remitted to the City; the City will keep all of the parking revenue, which has not been the case in the past
100% of parking fee
revenue
Meter Buy-Back Credit IPS credit toward buyback of existing single-space meters, up to 1,000 meters, for an upgrade
$100 credit per meter /
$100,000 total value
Extended Pay Station
Warranty
2-year extension on future pay station purchases (3 years total), provided at no additional cost
$79,000 value
IPS Elevate Analytics
Platform
Software platform included at no additional cost to the City $260,000 value Cost Comparison of Fees FY24-25 Estimated Actual to FY26-27 Proposed Costs The table below is a comparison of costs associated with the current vendors and the proposed new contract.
Estimated 24-25 Costs Proposed Costs
Cost Savings Category IPS Frogparking IPS
Fees and Expenses $267,515 (6% of revenue) $346,515 (13.8% of revenue) $0 The proposed contract will provide for 100% of the parking revenue to go to the City with an estimated net gain of between $500,000 and $600,000.
IPS Group Inc.
Qualifications
IPS has been in business for more than 25 years, specializing in innovative technology, proven operational processes, and a high level of customer service. The company currently serves over 400 municipal, state, higher education, and private-sector clients. IPS is headquartered in San Diego, California, with notable local clients including the cities of San Diego, Santa Monica, Del Mar, and Pismo Beach.
The City of Laguna Beach has worked with IPS since 2013 for the management of parking meters and pay stations and most recently with Shopper’s Parking Permit payment portal. To date, the City has been very satisfied with its partnership with IPS, particularly with the company’s responsiveness to both parking system users and City staff. With the addition of a mobile parking payment system, the City will benefit from a more fully integrated parking management solution.
Mobile Parking Payment System Service
There will be a number of enhancements to the parking program including: multiple languages within the app, text to pay, more effective integration with police license plate readers, an intuitive customer experience including where to park, confirmation customer has entered the correct zone, high level of security and compliance with compliant payment processing, marketing (social media, website graphics, targeted outreach, material development) and changing of signage with City branding. (Attachment 1.) Additional features include flexible parking rates at pay stations, (parking meters are dependent on age of meter), pre-parking coupon codes for business, special events or resident uses as directed by the City Council.
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IPS will charge end users a transaction fee to end-user in an amount not to exceed $0.35 per transaction and a merchant processing fee to the end user in an amount not to exceed $0.15 per transaction. Consultant shall remit the entirety of the parking fees to the City. Consultant shall retain the transaction fee and merchant processing fee as compensation. This change in payment structure (i.e., charging the user directly) will result in savings of approximately $250,000 per year. IPS will also provide the City at no additional cost additional services, such as IPS Elevate, which will assist the City with understanding parking patterns. The cost of this additional service is usually $260,000 but the City will be getting it at no cost.
Should the City Council award the contract to IPS the transition is expected to take 13 weeks to implement, conduct public outreach, and fully launch the program.
As part of the program, IPS and City staff will meet at least quarterly to conduct a comprehensive “health check” of the mobile payment parking system. These regular reviews will allow the team to proactively evaluate system performance, quickly identify and resolve issues, and monitor patterns of under‑ or over‑utilization. By using detailed operational data and customer feedback, the team can ensure the system continues to function reliably and remains responsive to community needs. In addition, the quarterly meetings provide a structured opportunity to review emerging technologies and potential system enhancements, enabling the City to plan upgrades that improve efficiency, support long‑term system stability, and enhance the overall parking experience.
Parking Meter Device and Repair Services – Contract 24-35 In May of 2024, the City Council approved a five-year agreement with IPS for Parking Meter Operations and Transaction Processing. The contract term is from July 1, 2024, though June 30, 2029 in an amount not to exceed $1,490,000. The purpose of this agreement is to continue to provide maintenance, replacement parts, and data management for parking meters. From July 1, 2024, to June 30, 2026, the City expended approximately $500,000 on the services.
Based upon a review of the 2024 agreement with IPS and the new software agreement with IPS, discussed above, City staff has identified the ability to remove the following services from the parking meter contract with IPS: (1) single space ongoing fees (secure wireless gateway/ data fee and meter management system software license fee (per meter per month); (2) secure credit card gateway fee (per transaction); (3) multispace ongoing costs (secure wireless gateway/data fee and meter management system software license fee (per meter per month); and (4) PARK SMARTER mobile payment decals. These changes will reduce the cost of the parking meter agreement. IPS also provided a new quote for device and repair services that will reduce costs to the City. IPS offered and City staff agreed to combine the relevant parking meter agreement provisions in the new agreement with IPS. The relevant parking meter agreement provisions that are being combined in the new agreement with IPS are as follows:
• 2026 Customer Price List including cost for additional pay stations should the City request them • Single space parking meter buy back (up to 1,000 meters) provides a credit of $100 for each meter the City returns to IPS for an upgrade for a total of $100,000 over the term of the contract. • 2-year extended warranty for future pay stations valued at $79,000. 5 of 107
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City staff proposes for the do not exceed amount for the meter and repair services not to exceed $200,000.
Under the new agreement, the City would combine both the parking meter operations and the new Mobile Parking Payment System into one contract. The previous parking meter contract will be terminated.
Frog Parking
The City Council considered the third amendment to the agreement with Frog Parking in April to ensure a smooth transition in services while the City integrates services with its new vendor. The third amendment extended the term of the agreement through October 2026 and the monthly fee from Frog in the amount of $7,850 per month. City staff is bringing forward a fourth amendment to the City Council at this time to also memorialize the $0.25 transaction fee that Frog charges the City. Based on the number of transactions in FY 2024-25, it is estimated that the transactions for the next 6 months are approximately 65,500 (or $11,000 per month). City staff has prepared the fourth amendment with Frog to address that the six month period from April to October will cost the City $18,850 per month ($7,850 + $11,000(approx.)) in a total amount not to exceed $113,100.
FINANCIAL ANALYSIS
As part of this contract, the City will not incur operating costs for the mobile payment portion of the parking program. In the past, the City paid the merchant and processing fees along with rental costs from the City’s parking revenue. The new contract includes a transaction fee of $0.50 on each transaction. This includes $0.35 for credit card gateway fees and $0.15 for merchant processing which is paid for by the customer.
The full parking fee will be remitted to the City. The $.50 transaction fee will be collected by IPS and is their payment for services rendered. The City will keep all of the parking revenue, which has not been the case in the past. The City will continue to utilize IPS for all replacement parts for the parking meters and IPS pay stations.
It is estimated that the annual cost of the contract is $200,000 for repairs and maintenance.
ENVIRONMENTAL ANALYSIS
The proposed actions are not subject to the California Environmental Quality Act (CEQA) pursuant to State CEQA Guideline, as it is not a “project” and has no potential to result in a direct or reasonable foreseeable indirect physical change to the environment (14 Cal Code Regs. § 15061(b)(3).). Instead, the proposed actions are administrative in nature, given that they merely authorize the City Manager to the execute an agreement that implements a new mobile parking system and allows repairs and upgrades to parking systems.
ATTACHMENTS
1. Professional Services Agreement, IPS Group, Inc. (Pgs. 8-54)
2. Independent Contractor Agreement for Coin Credit Card Processing and Data Management Services between the City and Consultant dated June 20, 2024 (Pgs. 55-83)
3. Professional Services Agreement, Amendment 4, Frogparking, Inc. (Pgs. 84-86) 6 of 107
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Submitted By: Alexis Braun Approved: .David A Kiff
Alexis Braun, Acting Director of
Transit and Community Services
Dave Kiff, City Manager
Report Prepared By: Coordinated With:
Carol Jacobs, Transit and Community Services
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-1- PROFESSIONAL SERVICES AGREEMENT
UPDATED 2-2026
CITY OF LAGUNA BEACH
PROFESSIONAL SERVICES AGREEMENT
1. PARTIES AND DATE.
This Agreement #__________ is made and entered into this _____ day of ________, 20___, by and between the City of Laguna Beach, a municipal corporation organized under the laws of the State of California with its principal place of business at 505 Forest Avenue, Laguna Beach, California 92651 ("City") and IPS GROUP, INC., a California corporation, with its principal place of business at 7737 Kenamar Court, San Diego, CA 92121 ("Consultant"). City and Consultant are sometimes individually referred to herein as "Party" and collectively as "Parties."
2. RECITALS.
2.1 Consultant.
Consultant desires to perform and assume responsibility for the provision of certain professional services required by the City on the terms and conditions set forth in this Agreement.
Consultant represents that it is experienced in providing Mobile Parking Payment services to public clients, is licensed in the State of California, and is familiar with the plans of City.
2.2 Project.
City desires to engage Consultant to render such professional services for the Mobile Parking Payment System project ("Project") as set forth in this Agreement.
3. TERMS.
3.1 Termination of Prior Agreement. Upon full execution of this Agreement, City and Consultant hereby agree that the Independent Contractor Agreement for Coin Credit Card Processing and Data Management Services between the City and Consultant dated June 20, 2024 is hereby terminated and of no further force and effect, as the City and Consultant desire to engage in this Agreement in its place.
3.2 Scope of Services and Term.
3.2.1 General Scope of Services. Consultant promises and agrees to furnish to the City all labor, materials, tools, equipment, services, and incidental and customary work necessary to fully and adequately supply the professional citywide mobile parking payment system and services and goods necessary for the Project ("Services"). The Services are more particularly described in Exhibit "A" attached hereto and incorporated herein by reference. All Services shall be subject to, and performed in accordance with, this Agreement, the exhibits Attachment 1
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attached hereto and incorporated herein by reference, and all applicable local, state and federal laws, rules and regulations.
3.2.2 Term. The term of this Agreement shall be from July 1, 2026 through June 30, 2031, with the option to enter into five, one-year extensions upon mutual agreement of the parties, unless earlier terminated as provided herein. Consultant shall complete the Services within the term of this Agreement, and shall meet any other established schedules and deadlines.
The Parties may, by mutual, written consent, extend the term of this Agreement if necessary to complete the Services.
3.3 Compensation.
3.3.1 Compensation.
3.3.1.1 Parking Solution Services, as described in Exhibit A, shall be compensated as follows:
3.3.1.2 Compensation. Consultant shall charge and collect parking fees, in an amount designated by the City, from each end user, and shall charge a transaction fee to end-user in an amount not to exceed $0.35 per transaction and a merchant processing fee to the end user in an amount not to exceed $0.15 per transaction. Consultant shall remit the entirety of the parking fees to the City. Consultant shall retain the transaction fee and merchant processing fee as compensation for all Parking Solution Services, as described in Exhibit A, rendered under this Agreement at the rates set forth in Exhibit "C" attached hereto and incorporated herein by reference. The rate per transaction shall not exceed a transaction fee in the amount of $0.35 per transaction and a merchant processing fee in the amount of $0.15 per transaction without written approval of the City Council or City Manager, as applicable. Extra Work may be authorized, as described below, and if authorized, will be compensated at the rates and manner set forth in this Agreement.
3.3.1.3 Payment of Compensation. Consultant shall remit payment to City of one hundred percent of the parking fees on a monthly basis in accordance with Exhibit C.
At the same time as remitting payment of the City, Consultant shall submit a detailed monthly statement listing all charges to end users, in a form approved by City, to reconcile the charges, fees retained by Consultant, and fees remitted to City. The statement shall describe the amount of Services provided since the initial commencement date, or since the start of the subsequent billing periods, as appropriate, through the date of the statement. If the City disputes any of Consultant's fees, the City shall give written notice to Consultant within thirty (30) days of receipt of an statement of any disputed fees set forth therein. Acceptance of payment shall not constitute acceptance of any Services completed by Consultant. The acceptance of final payment shall not constitute a waiver of any claims by the City for any reason whatsoever. Failure to submit an statement within ninety (90) days of any service(s) or good(s) provided shall constitute an absolute waiver of any right to payment for such service(s) and/or good(s). 9 9 of 107
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3.3.2 Meter and Repair Services, as described in Exhibit A, shall be compensated as follows:
3.3.2.1 Compensation. Consultant shall receive compensation, including authorized reimbursements, for all Meter and Repair Services, as described in Exhibit A, rendered under this Agreement at the rates set forth in Exhibit "C" attached hereto and incorporated herein by reference. The total compensation shall not exceed $1,000,000 without written approval of the City Council or City Manager, as applicable. Extra Work may be authorized, as described below, and if authorized, will be compensated at the rates and manner set forth in this Agreement.
3.3.3 Payment of Compensation. Consultant shall submit to City a monthly invoice which indicates work completed and hours of Services rendered by Consultant. The invoice shall describe the amount of Services provided since the initial commencement date, or since the start of the subsequent billing periods, as appropriate, through the date of the invoice.
City shall, within 30 days of receiving such invoice, review the invoice and pay all non-disputed and approved charges. If the City disputes any of Consultant's fees, the City shall give written notice to Consultant within thirty (30) days of receipt of an invoice of any disputed fees set forth therein. Payment shall not constitute acceptance of any Services completed by Consultant. The making of final payment shall not constitute a waiver of any claims by the City for any reason whatsoever. Failure to submit an invoice within ninety (90) days of any service(s) or good(s) provided shall constitute an absolute waiver of any right to payment for such service(s) and/or good(s), and City shall have no obligation to review, process, or pay any invoice submitted after the expiration of the ninety (90) day period.
3.3.4 Reimbursement for Expenses. Consultant shall not be reimbursed for any expenses unless authorized in writing by City, or included in Exhibit "C" of this Agreement.
3.3.5 Extra Work. At any time during the term of this Agreement, City may request that Consultant perform Extra Work. As used herein, "Extra Work" means any work which is determined by City to be necessary for the proper completion of the Project, but which the Parties did not reasonably anticipate would be necessary at the execution of this Agreement.
Consultant shall not perform, nor be compensated for, Extra Work without written authorization from the City.
3.4 Responsibilities of Consultant.
3.4.1 Independent Contractor; Control and Payment of Subordinates. The Services shall be performed by Consultant or under its supervision. Consultant will determine the means, methods and details of performing the Services subject to the requirements of this Agreement. City retains Consultant on an independent contractor basis and not as an employee.
Any personnel performing the Services on behalf of Consultant shall not be employees of City and shall at all times be under Consultant's exclusive direction and control. Neither City, or any of its officials, officers, directors, employees or agents shall have control over the conduct of Consultant or any of Consultants officers, employees or agents, except as set forth in this Agreement. Consultant shall pay all wages, salaries, and other amounts due such personnel in 10 10 of 107
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connection with their performance of Services under this Agreement and as required by law.
Consultant shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: social security taxes, income tax withholding, unemployment insurance, disability insurance, and workers' compensation insurance.
3.4.2 Schedule of Services. Consultant shall perform the Services in a prompt and timely manner and in accordance with the Schedule of Services set forth in Exhibit "B" attached hereto and incorporated herein by reference. Consultant represents that it has the professional and technical personnel required to perform the Services expeditiously. Upon request of City, Consultant shall provide a more detailed schedule of anticipated performance to meet the Schedule of Services.
3.4.3 Conformance to Applicable Requirements. All work prepared by Consultant shall be subject to the approval of City.
3.4.4 Substitution of Key Personnel. Consultant has represented to City that certain key personnel will perform and coordinate the Services under this Agreement. Should one or more of such personnel become unavailable, Consultant may substitute other personnel of at least equal competence upon written approval of City. In the event that City and Consultant cannot agree as to the substitution of key personnel, City shall be entitled to terminate this Agreement for cause. The key personnel for performance of this Agreement are as follows:
Michael Chiodo, Executive Vice President, Malina Armstrong, Client Success, Nick McGuire, Account Executive, Enes Ceric, Project Manager
3.4.5 City's Representative. The City hereby designates Alexis Braun, Acting Director of Transit and Community Services, or his/her designee, to act as its representative in all matters pertaining to the administration and performance of this Agreement ("City's Representative"). City's Representative shall have the power to act on behalf of the City for review and approval of all products submitted by Consultant but not the authority to enlarge the Scope of Services or change the total compensation due to Consultant under this Agreement. The City Manager shall be authorized to act on City's behalf and to execute all necessary documents which enlarge the Scope of Services or change the Consultant's total compensation subject to the provisions contained in this Agreement. Consultant shall not accept direction or orders from any person other than the City Manager, City's Representative or his/her designee.
3.4.6 Consultant's Representative. Consultant hereby designates Enes Ceric, Project Manager or his/her designee, to act as its representative for the performance of this Agreement ("Consultant's Representative"). Consultant's Representative shall have full authority to represent and act on behalf of the Consultant for all purposes under this Agreement. The Consultant's Representative shall supervise and direct the Services, using his/her best skill and attention, and shall be responsible for all means, methods, techniques, sequences, and procedures and for the satisfactory coordination of all portions of the Services under this Agreement.
3.4.7 Coordination of Services. Consultant agrees to work closely with City staff in the performance of Services and shall be available to City's staff, consultants and other staff at all reasonable times.
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3.4.8 Standard of Care; Performance of Employees. Consultant shall perform all Services under this Agreement in a skillful and competent manner, consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California. Consultant represents and maintains that it is skilled in the professional calling necessary to perform the Services. Consultant warrants that all employees and subconsultants shall have sufficient skill and experience to perform the Services assigned to them. Consultant represents that it, its employees and subconsultants have all licenses, permits, qualifications and approvals of whatever nature that are legally required to perform the Services, and that such licenses and approvals shall be maintained throughout the term of this Agreement. Consultant shall perform, at its own cost and expense and without reimbursement from the City, any services necessary to correct errors or omissions which are caused by the Consultant's failure to comply with the standard of care provided for herein. Any employee of the Consultant or its subconsultants who is determined by the City to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project, a threat to the safety of persons or property, or any employee who fails or refuses to perform the Services in a manner acceptable to the City, shall be promptly removed from the Project by the Consultant and shall not be re-employed to perform any of the Services or to work on the Project.
3.4.9 Period of Performance.
3.4.9.1 Consultant shall perform and complete all Services under this Agreement within the term set forth in Section 3.1.2 above (“Performance Time”). Consultant shall also perform the Services in strict accordance with any completion schedule or Project milestones described in Exhibits “A” or “B” attached hereto, or which may be separately agreed upon in writing by the City and Consultant (“Performance Milestones”). Consultant agrees that if the Services are not completed within the aforementioned Performance Time and/or pursuant to any such Performance Milestones developed pursuant to provisions of this Agreement, it is understood, acknowledged and agreed that the City will suffer damage.
3.4.9.2 Neither City nor Consultant shall be considered in default of this Agreement for delays in performance caused by circumstances beyond the reasonable control of the non-performing Party. For purposes of this Agreement, such circumstances include a Force Majeure Event. A Force Majeure Event shall mean an event that materially affects a Party’s performance and is one or more of the following: (1) Acts of God or other natural disasters; (2) terrorism or other acts of a public enemy; (3) orders of governmental authorities (including, without limitation, unreasonable and unforeseeable delay in the issuance of permits or approvals by governmental authorities that are required for the services); (4) strikes and other organized labor action occurring at the site and the effects thereof on the services, only to the extent such strikes and other organized labor action are beyond the control of Consultant and its subcontractors, and to the extent the effects thereof cannot be avoided by use of replacement workers; and (5) pandemics, epidemics or quarantine restrictions. For purposes of this section, “orders of governmental authorities,” includes ordinances, emergency proclamations and orders, rules to protect the public health, welfare and safety, and other actions of a public agency applicable to the services and Agreement. Consultant is not responsible for any failure in the mobile parking payment system (MPPS) or credit card processing attributable to network failure or planned and noticed downtime.
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3.4.9.3 Should a Force Majeure Event occur, the non-performing Party shall, within a reasonable time of being prevented from performing, give written notice to the other Party describing the circumstances preventing continued performance and the efforts being made to resume performance of this Agreement. Force Majeure Events and/or delays, regardless of the Party responsible for the delay, shall not entitle Consultant to any additional compensation.
Notwithstanding the foregoing in this section, the City may still terminate this Agreement in accordance with the termination provisions of this Agreement.
3.4.10 Laws and Regulations; Employee/Labor Certification.
3.4.10.1 Compliance with Laws. Consultant shall keep itself fully informed of and in compliance with all local, state and federal laws, rules and regulations in any manner affecting the performance of the Project or the Services, including all Cal/OSHA requirements, and shall give all notices required by law. Consultant shall be liable for all violations of such laws and regulations in connection with the Services and this Agreement. All violations of such laws and regulations shall be grounds for the City to terminate the Agreement for cause.
3.4.10.2 Employment Eligibility; Consultant. Consultant certifies that it fully complies with all requirements and restrictions of state and federal law respecting the employment of undocumented aliens, including, but not limited to, the Immigration Reform and Control Act of 1986, as may be amended from time to time and shall require all subconsultants and sub-subconsultants to comply with the same. Consultant certifies that it has not committed a violation of any such law within the five (5) years immediately preceding the date of execution of this Agreement, and shall not violate any such law at any time during the term of the Agreement.
3.4.10.3 Equal Opportunity Employment. Consultant represents that it is an equal opportunity employer and it shall not discriminate against any subconsultant, employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex or age. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination. Consultant shall also comply with all relevant provisions of City's Minority Business Enterprise program, Affirmative Action Plan or other related programs or guidelines currently in effect or hereinafter enacted.
3.4.10.4 Air Quality. To the extent applicable, Consultant must fully comply with all applicable laws, rules and regulations in furnishing or using equipment and/or providing services, including, but not limited to, emissions limits and permitting requirements imposed by the South Coast Air Quality Management District (SCAQMD) and/or California Air Resources Board (CARB). Consultant shall indemnify City against any fines or penalties imposed by SCAQMD, CARB, or any other governmental or regulatory agency for violations of applicable laws, rules and/or regulations by Consultant, its subconsultants, or others for whom Consultant is responsible under its indemnity obligations provided for in this Agreement.
3.4.10.5 Water Quality Management and Compliance. Consultant shall keep itself and all subcontractors, staff, and employees fully informed of and in compliance with all local, state and federal laws, rules and regulations that may impact, or be implicated by the performance of the Services including, without limitation, all applicable provisions of the City’s ordinances regulating water quality and storm water; the Federal Water Pollution Control Act (33 13 13 of 107
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U.S.C. § 1251, et seq.); the California Porter-Cologne Water Quality Control Act (Water Code § 13000 et seq.); and any and all regulations, policies, or permits issued pursuant to any such authority. Consultant must additionally comply with the lawful requirements of the City, and any other municipality, drainage district, or other local agency with jurisdiction over the location where the Services are to be conducted, regulating water quality and storm water discharges. City may seek damages from Consultant for delay in completing the Services caused by Consultant’s failure to comply with the laws, regulations and policies described in this Section, or any other relevant water quality law, regulation, or policy.
3.4.10.6 Safety. Consultant shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out its Services, the Consultant shall at all times be in compliance with all applicable local, state and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed.
3.4.11 Insurance.
3.4.11.1 Time for Compliance. Consultant shall not commence work under this Agreement until it has provided evidence satisfactory to the City that it has secured all insurance required under this section. In addition, Consultant shall not allow any subconsultant to commence work on any subcontract until it has provided evidence satisfactory to the City that the subconsultant has secured all insurance required under this section. Failure to provide and maintain all required insurance shall be grounds for the City to terminate this Agreement for cause.
3.4.11.2 Types of Insurance Required. As a condition precedent to the effectiveness of this Agreement for work to be performed hereunder, and without limiting the indemnity provisions of the Agreement, the Consultant, in partial performance of its obligations under such Agreement, shall procure and maintain in full force and effect during the term of the Agreement the following policies of insurance. If the existing policies do not meet the insurance requirements set forth herein, Consultant agrees to amend, supplement or endorse the policies to do so.
(A) Commercial General Liability: Commercial General Liability Insurance which affords coverage at least as broad as Insurance Services Office "occurrence" form CG 00 01, or the exact equivalent, with limits of not less than $2,000,000 per occurrence and no less than $4,000,000 in the general aggregate. Defense costs shall be paid in addition to the limits. The policy shall contain no endorsements or provisions (1) limiting coverage for contractual liability; (2) excluding coverage for claims or suits by one insured against another (cross-liability); (3) products/completed operations liability; or (4) containing any other exclusion(s) contrary to the terms or purposes of this Agreement. (B) Automobile Liability Insurance: Automobile Liability Insurance with coverage at least as broad as Insurance Services Office Form CA 00 01 covering "Any Auto" (Symbol 1), or the exact equivalent, covering bodily injury and property damage for all activities with limits of not less than $2,000,000 combined limit for each occurrence. 14 14 of 107
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(C) Workers' Compensation: Workers' Compensation
Insurance, as required by the State of California and Employer's Liability Insurance with a limit of not less than $1,000,000 per accident for bodily injury and disease. (D) Professional Liability (Errors & Omissions): Professional Liability insurance or Errors & Omissions insurance appropriate to Consultant’s profession with limits of not less than $2,000,000. Covered professional services shall specifically include all work to be performed under the Agreement and delete any exclusions that may potentially affect the work to be performed (for example, any exclusions relating to lead, asbestos, pollution, testing, underground storage tanks, laboratory analysis, soil work, etc.). If coverage is written on a claims-made basis, the retroactive date shall precede the effective date of the initial Agreement and continuous coverage will be maintained or an extended reporting period will be exercised for a period of at least five (5) years from termination or expiration of this Agreement.
3.4.11.3 Insurance Endorsements. Required insurance policies shall contain the following provisions, or Consultant shall provide endorsements on forms approved by the City to add the following provisions to the insurance policies:
(A) Commercial General Liability: (1) Additional Insured: The City, its officials, officers, employees, agents, and volunteers shall be additional insureds with regard to liability and defense of suits or claims arising out of the performance of the Agreement.
Additional Insured Endorsements shall not (1) be restricted to "ongoing operations"; (2) exclude "contractual liability"; (3) restrict coverage to "sole" liability of Consultant; or (4) contain any other exclusions contrary to the terms or purposes of this Agreement. For all policies of Commercial General Liability insurance, Consultant shall provide endorsements in the form of ISO CG 20 10 10 01 and 20 37 10 01 (or endorsements providing the exact same coverage) to effectuate this requirement. (2) Cancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City except ten (10) days shall be allowed for non-payment of premium. (B) Automobile Liability: (1) Additional Insured: The City, its directors, officials, officers, employees, agents, and volunteers shall be covered as additional insureds with respect to the ownership, operation, maintenance, use, loading or unloading of any auto owned, leased, hired or borrowed by the Vendor or for which the Vendor is responsible. (2) Cancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City except ten (10) days shall be allowed for non-payment of premium.
(C) Professional Liability (Errors & Omissions): (1) Cancellation:
Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City except ten (10) days shall be allowed for non-payment of premium. (2) This insurance shall be written on a policy form coverage specifically designed to protect against acts, errors or omissions of the Consultant. “Covered Professional Services” as designated in the policy must specifically include work performed under this Agreement. The policy must “pay on behalf of” the insured and include a provision establishing the insurer’s duty to defend.
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(D) Workers' Compensation: (1) Cancellation: Required
insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City except ten (10) days shall be allowed for non-payment of premium. (2) Waiver of Subrogation: A waiver of subrogation stating that the insurer waives all rights of subrogation against the City, its officials, officers, employees, agents, and volunteers.
3.4.11.4 Primary and Non-Contributing Insurance. All policies of Commercial General Liability and Automobile Liability insurance shall be primary and any other insurance, deductible, or self-insurance maintained by the City, its officials, officers, employees, agents, or volunteers shall not contribute with this primary insurance. Policies shall contain or be endorsed to contain such provisions.
3.4.11.5 Waiver of Subrogation. All required insurance coverages, except for the professional liability coverage, shall contain or be endorsed to waiver of subrogation in favor of the City, its officials, officers, employees, agents, and volunteers or shall specifically allow Consultant or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Consultant hereby waives its own right of recovery against City, and shall require similar written express waivers and insurance clauses from each of its subconsultants.
3.4.11.6 Deductibles and Self-Insured Retentions. Any deductible or selfinsured retention must be approved in writing by the City and shall protect the City, its officials, officers, employees, agents, and volunteers in the same manner and to the same extent as they would have been protected had the policy or policies not contained a deductible or self-insured retention.
3.4.11.7 Evidence of Insurance. The Consultant, concurrently with the execution of the Agreement, and as a condition precedent to the effectiveness thereof, shall deliver either certified copies of the required policies, or original certificates on forms approved by the City, together with all endorsements affecting each policy. Required insurance policies shall not be in compliance if they include any limiting provision or endorsement that has not been submitted to the City for approval. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf. At least fifteen (15 days) prior to the expiration of any such policy, evidence of insurance showing that such insurance coverage has been renewed or extended shall be filed with the City. If such coverage is cancelled or reduced and not replaced immediately so as to avoid a lapse in the required coverage, Consultant shall, within ten (10) days after receipt of written notice of such cancellation or reduction of coverage, file with the City evidence of insurance showing that the required insurance has been reinstated or has been provided through another insurance company or companies.
3.4.11.8 Acceptability of Insurers. Each such policy shall be from a company or companies with a current A.M. Best's rating of no less than A:VII and authorized to transact business of insurance in the State of California, or otherwise allowed to place insurance through surplus line brokers under applicable provisions of the California Insurance Code or any federal law.
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3.4.11.9 Enforcement of Agreement Provisions (non estoppel).
Consultant acknowledges and agrees that actual or alleged failure on the part of the City to inform Consultant of non-compliance with any requirement imposes no additional obligation on the City nor does it waive any rights hereunder.
3.4.11.10 Requirements Not Limiting. Requirement of specific coverage or minimum limits contained in this Section are not intended as a limitation on coverage, limits, or other requirement, or a waiver of any coverage normally provided by any insurance. The insurance obligations under this Agreement shall be: (1) all the insurance coverage and/or limits carried by or available to the Consultant; or (2) the minimum insurance coverage requirements and/or limits shown in this Agreement; whichever is greater. Any insurance proceeds in excess of or broader than the minimum required coverage and/or minimum required limits, which are applicable to a given loss, shall be available to the City. No representation is made that the minimum insurance requirements of this Agreement are sufficient to cover the obligations of the Consultant under this Agreement.
3.4.11.11 Additional Insurance Provisions
(A) If any Excess or Umbrella Liability policies are used to meet the limits of liability required by this Agreement, then said policies shall be “following form” of the underlying policy coverage, terms, conditions, and provisions and shall meet all of the insurance requirements stated in this Agreement, including, but not limited to, the additional insured and primary & non-contributory insurance requirements stated herein. No insurance policies maintained by the City, whether primary or excess, and which also apply to a loss covered hereunder, shall be called upon to contribute to a loss until the Consultant’s primary and excess liability policies are exhausted.
(B) The foregoing requirements as to the types and limits of insurance coverage to be maintained by Consultant, and any approval of said insurance by the City, is not intended to and shall not in any manner limit or qualify the liabilities and obligations otherwise assumed by the Consultant pursuant to this Agreement, including but not limited to, the provisions concerning indemnification.
(C) If at any time during the life of the Agreement, any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced, City has the right but not the duty to obtain the insurance it deems necessary and any premium paid by City will be promptly reimbursed by Consultant or City will withhold amounts sufficient to pay premium from Consultant payments. In the alternative, City may cancel this Agreement.
(D) The City may require the Consultant to provide complete copies of all insurance policies in effect for the duration of the Project. (E) Neither the City nor any of its officials, officers, employees, agents or volunteers shall be personally responsible for any liability arising under or by virtue of this Agreement.
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(F) The limits set forth herein shall apply separately to each insured against whom claims are made or suits are brought, except with respect to the limits of liability. Further the limits set forth herein shall not be construed to relieve the Consultant from liability in excess of such coverage, nor shall it limit the Consultant’s indemnification obligations to the City and shall not preclude the City from taking such other actions available to the City under other provisions of the Agreement or law.
(G) Consultant shall report to the City, in addition to Consultant’s insurer, any and all insurance claims submitted by Consultant in connection with the Services under this Agreement.
3.4.11.12 Insurance for Subconsultants. Consultant shall include all subconsultants engaged in any work for Consultant relating to this Agreement as additional insureds under the Consultant's policies, or the Consultant shall be responsible for causing subconsultants to purchase the appropriate insurance in compliance with the terms of these Insurance Requirements, including adding the City, its officials, officers, employees, agents, and volunteers as additional insureds to the subconsultant's policies. All policies of Commercial General Liability insurance provided by Consultant’s subconsultants performing work relating to this Agreement shall be endorsed to name the City, its officials, officers, employees, agents and volunteers as additional insureds using endorsement form ISO CG 20 38 04 13 or an endorsement providing equivalent coverage. Consultant shall not allow any subconsultant to commence work on any subcontract relating to this Agreement until it has received satisfactory evidence of subconsultant’s compliance with all insurance requirements under this Agreement, to the extent applicable. The Consultant shall provide satisfactory evidence of compliance with this section upon request of the City.
3.5 Labor Code Requirements.
3.5.1 Prevailing Wages. Consultant is aware of the requirements of California Labor Code Section 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Section 16000, et seq., ("Prevailing Wage Laws"), which require the payment of prevailing wage rates and the performance of other requirements on "public works" and "maintenance" projects. If the Services are being performed as part of an applicable "public works" or "maintenance" project, as defined by the Prevailing Wage Laws, and if the total compensation is $1,000 or more, Consultant agrees to fully comply with such Prevailing Wage Laws. City shall provide Consultant with a copy of the prevailing rates of per diem wages in effect at the commencement of this Agreement. Consultant shall make copies of the prevailing rates of per diem wages for each craft, classification or type of worker needed to execute the Services available to interested parties upon request, and shall post copies at the Consultant's principal place of business and at the project site. It is the intent of the parties to effectuate the requirements of sections 1771, 1774, 1775, 1776, 1777.5, 1813, and 1815 of the Labor Code within this Agreement, and Consultant shall therefore comply with such Labor Code sections to the fullest extent required by law. Consultant shall defend, indemnify and hold the City, its officials, officers, employees, agents, and volunteers free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws.
3.5.2 Registration/DIR Compliance. If the Services are being performed on a public works project of over $25,000 when the project is for construction, alteration, demolition, 18 18 of 107
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installation, or repair work, or a public works project of over $15,000 when the project is for maintenance work, in addition to the foregoing, then pursuant to Labor Code sections 1725.5 and 1771.1, the Consultant and all subconsultants must be registered with the Department of Industrial Relations (“DIR”). Consultant shall maintain registration for the duration of the Project and require the same of any subconsultants.
3.5.3 Compliance Monitoring. This Project may also be subject to compliance monitoring and enforcement by the DIR. It shall be Consultant’s sole responsibility to comply with all applicable registration and labor compliance requirements, including the submission of payroll records directly to the DIR. Any stop orders issued by the DIR against Consultant or any subconsultant that affect Consultant’s performance of services, including any delay, shall be Consultant’s sole responsibility. Any delay arising out of or resulting from such stop orders shall be considered Consultant caused delay and shall not be compensable by the City. Consultant shall defend, indemnify and hold the City, its officials, officers, employees and agents free and harmless from any claim or liability arising out of stop orders issued by the DIR against Consultant or any subconsultant.
3.5.4 Labor Certification. By its signature hereunder, Consultant certifies that it is aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for Worker's Compensation or to undertake self-insurance in accordance with the provisions of that Code, and agrees to comply with such provisions before commencing the performance of the Services.
3.6 Termination of Agreement.
3.5.1 Grounds for Termination. City may, by written notice to Consultant, terminate the whole or any part of this Agreement at any time and without cause by giving written notice to Consultant of such termination, and specifying the effective date thereof, at least seven (7) days before the effective date of such termination. Upon termination, Consultant shall be compensated only for those Services which have been adequately rendered to City, and Consultant shall be entitled to no further compensation. Consultant may not terminate this Agreement except for cause. The rights and remedies of the City provided in this section shall not be exclusive and are in addition to any other rights and remedies provided by law, equity or under this Agreement.
3.5.2 Effect of Termination. If this Agreement is terminated as provided herein, City may require Consultant to provide all finished or unfinished Documents and Data and other information of any kind prepared by Consultant in connection with the performance of Services under this Agreement. Consultant shall be required to provide such document and other information within fifteen (15) days of the request.
3.5.3 Additional Services. In the event this Agreement is terminated in whole or in part as provided herein, City may procure, upon such terms and in such manner as it may determine appropriate, services similar to those terminated.
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3.7 Indemnification.
3.7.1 To the fullest extent permitted by law, Consultant shall defend (with counsel of City’s choosing), indemnify and hold the City, its officials, officers, employees, volunteers, and agents free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury of any kind, in law or equity, to property or persons, including wrongful death, in any manner arising out of, pertaining to, or incident to any acts, errors or omissions, or willful misconduct of Consultant, its officials, officers, employees, subcontractors, consultants or agents in connection with the performance of the Consultant’s Services, the Project or this Agreement, including without limitation the payment of all damages, expert witness fees and attorney’s fees and other related costs and expenses except such loss or damage caused by the sole negligence or willful misconduct of the City. Consultant's obligation to indemnify shall survive expiration or termination of this Agreement and shall not be restricted to insurance proceeds, if any, received by Consultant, the City, its officials, officers, employees, agents, or volunteers.
3.7.2 If Consultant’s obligation to defend, indemnify, and/or hold harmless arises out of Consultant’s performance as a “design professional” (as that term is defined under Civil Code section 2782.8), then, and only to the extent required by Civil Code section 2782.8, which is fully incorporated herein, Consultant’s indemnification obligation shall be limited to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant, and, upon Consultant obtaining a final adjudication by a court of competent jurisdiction, Consultant’s liability for such claim, including the cost to defend, shall not exceed the Consultant’s proportionate percentage of fault.
3.8 General Provisions.
3.8.1 Accounting Records. Consultant shall maintain complete and accurate records with respect to all costs and expenses incurred under this Agreement. All such records shall be clearly identifiable. Consultant shall allow a representative of City during normal business hours to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement. Consultant shall allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period of three (3) years from the date of final payment under this Agreement.
3.8.2 Independent Contractors and Subcontracting.
3.8.2.1 Use of Consultants. Consultant is aware of statutory and case law regarding classification of workers as independent contractors, including California Labor Code Section 2750.3 and Dynamex Operations West, Inc. v. Superior Court, 4 Cal. 5th 903 (2018). To ensure that Consultant is in compliance with the California Labor Code, Consultant shall only utilize its employees to provide the Services. Consultant may not provide the services through any independent contractor, subcontractor or subconsultant (“Subcontractor(s)”) unless approved by the City as set forth in Section 3.7.2.2 below. Consultant represents and warrants that all personnel who perform the Services on Consultant’s behalf are Consultant’s employees, and that Consultant complies with all applicable laws, rules and regulations governing its employees, including, but not limited to, the California Labor Code, Unemployment Insurance Code and all applicable Industrial Welfare Commission Wage Orders. 20 20 of 107
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3.8.2.2 Prior Approval Required. Consultant shall not use any Subcontractor to provide the Services, or any portion of the work required by this Agreement, without prior written approval of City. In the event that City authorizes Consultant to use a Subcontractor, Consultant shall enter into a written agreement with the Subcontractor, which must include all provisions of the Agreement, including a restriction on the Subcontractor’s use of further independent contractors, subcontractors or subconsultants without the City’s prior written consent.
3.8.3 Delivery of Notices. All notices permitted or required under this Agreement shall be given to the respective parties at the following address, or at such other address as the respective parties may provide in writing for this purpose:
Consultant: IPS GROUP, INC.
7737 Kenamar Ct.
San Diego, CA 92121
ATTN: Michael Chiodo, Executive Vice President
City: City of Laguna Beach
505 Forest Avenue
Laguna Beach CA 92651
ATTN: Alexis Braun, Acting Director of Transit and
Community Services
Such notice shall be deemed made when personally delivered or when mailed, forty-eight (48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to the party at its applicable address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service.
3.8.4 Ownership of Materials and Confidentiality.
3.8.4.1 Documents & Data; Licensing of Intellectual Property. This Agreement creates a non-exclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, and other intellectual property embodied in plans, specifications, studies, drawings, estimates, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings or data magnetically or otherwise recorded on computer diskettes, which are prepared or caused to be prepared by Consultant under this Agreement ("Documents & Data"). Notwithstanding the foregoing, Consultant’s pre-existing intellectual property remains the sole property. All Documents & Data shall be and remain the property of City, and shall not be used in whole or in substantial part by Consultant on other projects without the City’s express written permission.
Within thirty (30) days following the completion, suspension, abandonment or termination of this Agreement, Consultant shall provide to City reproducible copies of all Documents & Data, in a form and amount required by City. City reserves the right to select the method of document reproduction and to establish where the reproduction will be accomplished. The reproduction expense shall be borne by City at the actual cost of duplication. In the event of a dispute regarding the amount of compensation to which the Consultant is entitled under the termination provisions 21 21 of 107
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of this Agreement, Consultant shall provide all Documents & Data to City upon payment of the undisputed amount. Consultant shall have no right to retain or fail to provide to City any such documents pending resolution of the dispute. In addition, Consultant shall retain copies of all Documents & Data on file for a minimum of fifteen (15) years following completion of the Project, and shall make copies available to City upon the payment of actual reasonable duplication costs.
Before destroying the Documents & Data following this retention period, Consultant shall make a reasonable effort to notify City and provide City with the opportunity to obtain the documents.
3.8.4.2 Subconsultants. Consultant shall require all subconsultants to agree in writing that City is granted a non-exclusive and perpetual license for any Documents & Data the subconsultant prepares under this Agreement. Consultant represents and warrants that Consultant has the legal right to license any and all Documents & Data. Consultant makes no such representation and warranty in regard to Documents & Data which were prepared by design professionals other than Consultant or its subconsultants, or those provided to Consultant by the City.
3.8.4.3 Right to Use. City shall not be limited in any way in its use or reuse of the Documents and Data or any part of them at any time for purposes of this Project or another project, provided that any such use not within the purposes intended by this Agreement or on a project other than this Project without employing the services of Consultant shall be at City’s sole risk. If City uses or reuses the Documents & Data on any project other than this Project, it shall remove the Consultant’s seal from the Documents & Data and indemnify and hold harmless Consultant and its officers, directors, agents and employees from claims arising out of the negligent use or re-use of the Documents & Data on such other project. Consultant shall be responsible and liable for its Documents & Data, pursuant to the terms of this Agreement, only with respect to the condition of the Documents & Data at the time they are provided to the City upon completion, suspension, abandonment or termination. Consultant shall not be responsible or liable for any revisions to the Documents & Data made by any party other than Consultant, a party for whom the Consultant is legally responsible or liable, or anyone approved by the Consultant.
3.8.4.4 Indemnification. Consultant shall defend, indemnify and hold the City, its directors, officials, officers, employees, volunteers and agents free and harmless, pursuant to the indemnification provisions of this Agreement, for any alleged infringement of any patent, copyright, trade secret, trade name, trademark, or any other proprietary right of any person or entity in consequence of the use on the Project by City of the Documents & Data, including any method, process, product, or concept specified or depicted.
3.8.4.5 Confidentiality. All ideas, memoranda, specifications, plans, procedures, drawings, descriptions, computer program data, input record data, written information, and other Documents & Data either created by or provided to Consultant in connection with the performance of this Agreement shall be held confidential by Consultant. Such materials shall not, without the prior written consent of City, be used by Consultant for any purposes other than the performance of the Services. Nor shall such materials be disclosed to any person or entity not connected with the performance of the Services or the Project. Nothing furnished to Consultant which is otherwise known to Consultant or is generally known, or has become known, to the related industry shall be deemed confidential. Consultant shall not use City's name or insignia, photographs of the Project, or any publicity pertaining to the Services or 22 22 of 107
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the Project in any magazine, trade paper, newspaper, television or radio production or other similar medium without the prior written consent of City.
3.8.4.6 Confidential Information. The City shall refrain from releasing Consultant’s proprietary information ("Proprietary Information") unless the City's legal counsel determines that the release of the Proprietary Information is required by the California Public Records Act or other applicable state or federal law, or order of a court of competent jurisdiction, in which case the City shall notify Consultant of its intention to release Proprietary Information.
Consultant shall have five (5) working days after receipt of the release notice to give City written notice of Consultant's objection to the City's release of Proprietary Information. Consultant shall indemnify, defend and hold harmless the City, and its officers, directors, employees, and agents from and against all liability, loss, cost or expense (including attorney’s fees) arising out of a legal action brought to compel the release of Proprietary Information. City shall not release the Proprietary Information after receipt of an objection notice unless either: (1) Consultant fails to fully indemnify, defend (with City's choice of legal counsel), and hold City harmless from any legal action brought to compel such release; and/or (2) a final and non-appealable order by a court of competent jurisdiction requires that City release such information.
3.8.5 Cooperation; Further Acts. The Parties shall fully cooperate with one another, and shall take any additional acts or sign any additional documents as may be necessary, appropriate or convenient to attain the purposes of this Agreement.
3.8.6 Entire Agreement. This Agreement contains the entire agreement of the Parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings or agreements.
3.8.7 Attorneys’ Fees. If either party commences an action against the other party, either legal, administrative or otherwise, arising out of or in connection with this Agreement, the prevailing party in such litigation shall be entitled to have and recover from the losing party reasonable attorneys’ fees and all costs of such action.
3.8.8 Governing Law. This Agreement shall be governed by the laws of the State of California. Venue shall be in Orange County. In addition to any and all contract requirements pertaining to notices of and requests for compensation or payment for extra work, disputed work, claims and/or changed conditions, Consultant must comply with the claim procedures set forth in Government Code sections 900 et seq. prior to filing any lawsuit against the City. Such Government Code claims and any subsequent lawsuit based upon the Government Code claims shall be limited to those matters that remain unresolved after all procedures pertaining to extra work, disputed work, claims, and/or changed conditions have been followed by Consultant. If no such Government Code claim is submitted, or if any prerequisite contractual requirements are not otherwise satisfied as specified herein, Consultant shall be barred from bringing and maintaining a valid lawsuit against the City.
3.8.9 Time of Essence. Time is of the essence for each and every provision of this Agreement.
3.8.10 City's Right to Employ Other Consultants. City reserves right to employ other consultants in connection with this Project.
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3.8.11 Successors and Assigns. This Agreement shall be binding on the successors and assigns of the parties.
3.8.12 Assignment or Transfer. Consultant shall not assign, sublet, or transfer this Agreement or any rights under or interest in this Agreement without the written consent of the City, which may be withheld for any reason. Any attempt to so assign or so transfer without such consent shall be void and without legal effect and shall constitute grounds for termination.
Consultant shall not subcontract any portion of the Services required by this Agreement, except as expressly stated herein, without prior written approval of City. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement.
3.8.13 Construction; References; Captions. Since the Parties or their agents have participated fully in the preparation of this Agreement, the language of this Agreement shall be construed simply, according to its fair meaning, and not strictly for or against any Party. Any term referencing time, days or period for performance shall be deemed calendar days and not work days. All references to Consultant include all personnel, employees, agents, and subconsultants of Consultant, except as otherwise specified in this Agreement. All references to City include its elected officials, officers, employees, agents, and volunteers except as otherwise specified in this Agreement. The captions of the various articles and paragraphs are for convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content, or intent of this Agreement.
3.8.14 Amendment; Modification. No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing and signed by both Parties.
3.8.15 Waiver. No waiver of any default shall constitute a waiver of any other default or breach, whether of the same or other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by a Party shall give the other Party any contractual rights by custom, estoppel, or otherwise.
3.8.16 No Third-Party Beneficiaries. There are no intended third party beneficiaries of any right or obligation assumed by the Parties.
3.8.17 Invalidity; Severability. If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.
3.8.18 Prohibited Interests. Consultant maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Consultant, to solicit or secure this Agreement. Consultant warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. Consultant further agrees to file, or shall cause its employees or subconsultants to file, a Statement of Economic Interest with the City’s Filing Officer as required under state law in the performance of the Services. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability. For the term of this Agreement, no member, officer or employee of 24 24 of 107
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City, during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.
3.8.19 Authority to Enter Agreement. Consultant has all requisite power and authority to conduct its business and to execute, deliver, and perform the Agreement. Each Party warrants that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and bind each respective Party.
3.8.20 Counterparts. This Agreement may be signed in counterparts, each of which shall constitute an original.
3.8.21 Survival. All rights and obligations hereunder that by their nature are to continue after any expiration or termination of this Agreement, including, but not limited to, the indemnification obligations, shall survive any such expiration or termination.
SIGNATURES ON NEXT PAGE
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SIGNATURE PAGE TO PROFESSIONAL SERVICES AGREEMENT
BETWEEN THE CITY OF LAGUNA BEACH AND
IPS GROUP, INC.
IN WITNESS WHEREOF, each of the Parties has caused this Agreement to be executed on the day and year first above written.
CITY OF LAGUNA BEACH [IPS GROUP, INC>
[If Corporation, TWO SIGNATURES,
President OR Vice President AND Secretary
OR Treasurer REQUIRED]
By:
Its:
Printed Name:
By:
Its:
Printed Name:
Approved By:
Dave Kiff
City Manager
Approved as to Form:
_____________________________________
City Attorney
Attested By:
City Clerk
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55852.00003\42823523.1
Exhibit “A”-1 PROFESSIONAL SERVICES AGREEMENT
EXHIBIT "A"
SCOPE OF SERVICES
I. PARKING SOFTWARE SOLUTION
Overview
IPS proposes a flexible, customer-focused parking solution that includes both PARK SMARTER™ and TEXT-TO-PAY™, providing multiple convenient ways for users to pay for parking based on their preferences.
PARK SMARTER offers a robust, feature-rich mobile app experience for users who prefer a fully integrated solution with account management, real-time alerts, and advanced tools like parking availability and session extensions. In parallel, TEXT-TO-PAY delivers a simple, frictionless option for users who prefer a quick, no-download, no-account-required experience using QR codes or SMS. Together, these complementary solutions ensure that all users—whether residents, visitors, or occasional parkers—can easily access and pay for parking in a way that suits them.
PARK SMARTER is a feature-rich mobile application available for iOS and Android that provides a comprehensive parking payment and management experience. Users receive real-time expiration alerts, can remotely extend parking sessions, manage multiple vehicles and payment methods, and locate available parking using the Parking Finder tool. The app integrates directly with enforcement systems, enabling efficient license plate-based validation without additional staff effort, while supporting contactless payments and streamlined account management. PARK SMARTER uses Bluetooth Low Energy (BLE) connectivity to put time directly on the meter and is fully integrated with the IPS Data Management System for unified visibility, reporting, and analytics.
TEXT-TO-PAY is a contactless, account-free parking payment solution that allows users to start and manage parking sessions without downloading an app or approaching a physical meter. Customers can initiate payment by either scanning a posted QR code with their smartphone or texting a zone number via SMS to receive a secure payment link. Users can then pay using major credit or debit cards through the web-based interface. The system provides real-time confirmations, digital receipts, and expiration reminders via SMS or email, with the ability to extend sessions remotely. TEXT-TO-PAY is built on a secure, PCI-compliant platform using encrypted, tokenized transactions and requires minimal infrastructure to deploy.
Both solutions are fully integrated and tracked within the IPS Data Management System, providing unified visibility, reporting, and analytics across all payment channels while delivering a seamless, contactless customer experience. a. Customer Capabilities
i. All refund requests, parking enforcement issues, and/or meter malfunction issues must go directly to the city for processing. Park Smarter Support can only assist with bugs or issues specifically related to the Park Smarter app itself. If users 27 27 of 107
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Exhibit “A”-2 PROFESSIONAL SERVICES AGREEMENT
experience issues with their parking transaction and require a refund, they can reach out to our email support team or call the dedicated support phone number (if the jurisdiction chooses to elect the phone service). We use help desk support software to document and track such inquiries and refund requests. ii. We minimize convenience and processing fees through several methods:
a. Preferred Card Processing Rates: We provide preferred pricing for smallticket mobile payment merchant processing, optimized for the low average transaction values typical in parking operations.
b. Flexible Fee Structure: We offer customizable convenience fee structures that can be configured to minimize costs while ensuring compliance with regulations like California's Hidden Fee Rule (SB 478). c. Direct Payment Processing: As the merchant of record, we can leverage our payment processing infrastructure to secure competitive rates and pass savings to customers.
iii. PARK SMARTER clearly displays the total price of the parking session to users before payment is completed. The system identifies all fees including transaction fees, SMS fees, credit card processing fees, and any additional fees applied by the City. The convenience fee is clearly identified at the time of transaction, regardless of payment type or option used. This approach ensures compliance with all regulations including the California Hidden Fee Rule (SB 478) by providing full fee transparency before users complete their payment. iv. Geo-Location and Zone Identification
a. PARK SMARTER uses the customer’s device GPS to identify nearby parking zones and present them in the app. Users are shown a list or map of nearby zones and are prompted to confirm the correct zone by matching it with the number displayed on meter decals or posted signage. b. Handling Nearby Zones and GPS Limitations
i. In areas where multiple zones are close together or GPS accuracy may be reduced, PARK SMARTER ensures accuracy through user confirmation. The app allows customers to easily search for or manually enter a zone number, ensuring they can always select the correct location regardless of signal conditions or proximity to other zones.
c. Customer Experience
i. The process is simple and intuitive:
1. The app suggests nearby zones based on location
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Exhibit “A”-3 PROFESSIONAL SERVICES AGREEMENT
2. Customers confirm the correct zone using posted signage
3. Users can manually search or enter a zone if needed
4. Customers select their parking duration and complete payment
5. The app provides reminders before expiration and allows extensions where permitted
ii. This approach balances convenience with accuracy, ensuring users can confidently select the correct parking location.
d. City Management and Enforcement
i. PARK SMARTER integrates fully with the City’s parking management systems:
1. All zone configurations and policies are centrally managed
2. Parking sessions are recorded in real time and available for enforcement
3. Enforcement staff can verify active sessions by zone or license plate
4. The City has access to reporting and analytics across meters and mobile payments
ii. This ensures consistent policy enforcement, accurate payment validation, and a seamless experience for both customers and enforcement personnel.
v. On peak days with high cellular demand, PARK SMARTER maintains reliable operation through a lightweight, API-driven architecture and optimized data access patterns. Core functions (e.g., meter lookup, session start, and pricing) are handled via stateless web services that can scale independently, with some endpoints (e.g., MeterList “short” queries) designed specifically to limit payload size and improve performance under load. Additionally, the system includes operational safeguards—such as maintenance mode and guidance to pay at the meter if connectivity is impaired—ensuring continuity of service even during degraded network conditions.
a. IPS Group ensures the MPPS is continuously tested, validated, and monitored to deliver real-time availability, reliability, and high performance across all service hours. This is achieved through a multi-layered Quality Assurance (QA) framework that spans hardware, firmware, and cloud services.
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b. All software releases move through robust CI/CD pipelines that include integration and regression testing, API and contract validation for platform services, UI/UX testing for customer-facing applications, and hardware-inthe-loop (HIL) validation for meters and kiosks. c. Security and compliance are embedded throughout the testing lifecycle to ensure system integrity and trust. IPS validates PCI-compliant payment processing, conducts regular vulnerability scanning and penetration testing, and enforces secure firmware and device authentication protocols.
Together, these practices—supported by mature Engineering Operations (EngOps) and Site Reliability Engineering (SRE) principles—ensure that MPPS maintains consistent performance, resilience, and security in realworld operating conditions. b. Signs and Sticker
i. We will provide all signage and decals/stickers necessary for ongoing public advertisements of PARK SMARTER and TEXT-TO-PAY. All signage designs will be submitted to City for approval before installation and will incorporate City’s branding and meet applicable design standards and specifications. Our signage will include zone numbers, mobile payment application information, contact numbers, website details, and all other pertinent information as specified by City. ii. PARK SMARTER decals can be printed with QR codes, which would be adhered to the meter/pay station. QR codes can be used to link to the PARK SMARTER application in the App Store for app download. Additionally, QR codes can prepopulate some meter information (space or zone) into the application. iii. We will collaborate with City throughout the approval and installation process to ensure full compliance with your policies and design guidelines. Specific quantities of signs and decals/stickers will be determined based on your requirements and the number of meters, spaces, and zones to be equipped with PARK SMARTER t no additional cost.
iv. IPS will design and provide signs and decals/stickers that incorporate the City's existing branding and are compatible with your current parking equipment providers (IPS MS3, VenTek APS Units, and IPS M5 meters). All signage will include zone numbers, mobile payment application information, contact numbers, website details, and other pertinent information as specified by the City. Signage designs will be submitted to the City for approval before production to ensure compliance with your design standards and specifications. We will manufacture durable materials designed for coastal environments and high-visibility placement at all parking locations.
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Exhibit “A”-5 PROFESSIONAL SERVICES AGREEMENT
v. IPS will work with the City to establish a more detailed outreach and awareness plan and timeline. Formulating the right messaging and raising public awareness are key elements for the successful deployment of new parking tools. IPS will provide custom marketing and public awareness materials tailored to the City’s specific needs. Generally, the key components of the recommended activities include:
a. Targeted Outreach List: IPS will work with the City to develop a list of targeted media outlets to share messaging and distribute materials. b. Collateral Materials Development: Working with the City, we will assist with developing collateral for public information. This includes but is not limited to flyers, web elements, Q&A documents, and how-to videos. c. Social Media: This will be a cost-effective way to reach a broad audience.
We will work with the City on messaging and tactics to utilize current networks and followers on social media accounts to provide our targeted audiences with key project information.
d. Website Graphics: To help the City introduce PARKSMARTER and TEXTTO-PAY to the parking public, IPS Group is offering custom-designed web elements to educate the public on how to use mobile payment options. e. Continued Support: Marketing and public relations support will continue throughout the life of the contract with the City.
vi. Our structured implementation timeline spans 13 weeks and includes phased installation, public launch coordination, hands-on training for city staff and enforcement personnel, and live monitoring to ensure smooth transition. We support zone and space numbering sequences as defined by the city ensuring consistency across all parking systems.
vii. Additional sample images of signage, decals, and implementation materials incorporating coastal-appropriate durability and high-visibility placement can be provided upon request.
c. Configuration Capabilities
i. There are no configuration limitations on the City's rate structure. Our system provides full rate structure configuration through the DMS, supporting different rates by zone, time of day, length of stay, and day of the week. The system can handle complex rate structures including dynamic and progressive rates for peak occupancy periods. City can adjust rates by zone and configure parking regulations including hours of operation, prepayment options, maximum time limits, minimum parking time, and lockout periods. All configurations can be managed centrally and pushed to all MPP System partners, with changes processed automatically in real time without system downtime.
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Exhibit “A”-6 PROFESSIONAL SERVICES AGREEMENT
ii. PARK SMARTER and TEXT-TO-PAY incorporate advanced “fuzzy logic” capabilities to account for common human errors and variations in license plate recognition. This includes tolerance for character misreads (e.g., “O” vs. “0,” “B” vs. “8”), transpositions, and partial plate entries. The system generates close-match suggestions based on configurable similarity thresholds, enabling enforcement personnel to quickly identify and confirm likely matches while minimizing false positives. These tools are integrated into the vetting workflow to improve accuracy, efficiency, and overall enforcement confidence.
iii. IPS has extensive experience integrating with citation enforcement technology through real-time, API-based connections. In addition to IPS enforcement tools, we have active enforcement integrations with IPS Enforcement, T2 Systems, Conduent, GTechna, Turbo Data, Tyler Technologies, Passport, Genetec LPR, Route 1 LPR, Indect LPR, and Tannery Creek LPR.
iv. Our system seamlessly integrates with third-party enforcement applications including handhelds and mobile LPR systems to transmit transactional data in real time using secure communication methods. We provide standardized data share APIs and documentation to facilitate integration with any vendor. v. For the City, we will provide real-time integration with your current citation management system (Data Ticket) and future LPR system at no additional cost. Our enforcement staffwillhave immediateaccess to proof-of-paymentdata in thefield for real-time verification of payment status.
vi. IPS has an existing integration with Data Ticket and utilizes it currently in our work for the City of Laguna Beach.
vii. IPS serves as the merchant of record and provides comprehensive merchant processing services.
viii. Processing Fees: We charge a secure credit card gateway/convenience fee of $0.35 per transaction, which is paid by the customer. Optional merchant processing fees are available and quoted based on your specific needs. We can provide preferred pricing for small-ticket mobile payment merchant processing upon request. ix. Invoicing and Payments: The City retains 100% of the parking rate, with all processing and transaction fees paid by the customer.We provide detailed monthly statements listing all per-transaction charges. Revenue is transferred to the City by the 15th day of the following month.
x. Reconciliation Process: We provide thorough and fully transparent auditing 32 32 of 107
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Exhibit “A”-7 PROFESSIONAL SERVICES AGREEMENT
capabilities for mobile payments. You will have access to daily and monthly credit card settlement reports to 100% reconcile with merchant account statements. We provide complete details on each transaction including summary by day, summary by card type, summarybybatch,chargebacks andreversals,adjustments,andfees.Payments are processed and posted within 24 hours, and we reconcile the account prior to disbursement of funds to you.
d. Use of Existing App and Data
i. IPS will transition the existing Laguna Beach Parking App through a coordinated implementation approach that preserves the City-owned domain and migrates current users to the updated PARK SMARTER platform. Our transition process includes:
a. System Configuration and Integration: IPS will configure our Data Management System (DMS) to adopt the City's existing paid parking zoning system, ensuring continuity in location identification and rate structures. The system will be set up to support the City's requirement for customer-paid convenience fees covering all MPPS processing expenses. b. Seamless User Migration: Current app users will be transitioned to the updated platform with minimal disruption. The existing Laguna Beach Parking App domain will be maintained and supported by IPS, preserving brand recognition for the 430,000+ existing downloads while delivering enhanced functionality through PARK SMARTER.
c. Payment Method Expansion: The updated system will maintain support for existing payment methods with planned expansion to additional payment options as needed. Apple Pay and Google Pay support is currently in development and expected to be available mid-2026.
d. Public Outreach and Education: IPS will partner with the City to execute a comprehensive outreach program beginning at least 14 days prior to launch, including customized messaging, signage, and user surveys to ensure smooth adoption and gather feedback on the transition experience. e. Phased Deployment: Implementation will follow a structured approach including project initiation, system configuration, equipment deployment, customer adoption support, go-live monitoring, and ongoing optimization to ensure operational continuity throughout the transition. ii. IPS will work with the City to migrate existing user data from the current Laguna Beach Parking App database into our system. We follow a strict data conversion protocol to ensure no downtime during the transition process. Our team has 33 33 of 107
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Exhibit “A”-8 PROFESSIONAL SERVICES AGREEMENT
successfully converted multiple clients from other mobile payment platforms, bringing that experience to this implementation.
iii. We will coordinate with the existing vendor to obtain the existing customer database in the appropriate format, including user accounts, registered license plates, and payment methods. This data will be securely imported into our system, allowing current users to retain their account information and continue using the Laguna Beach Parking App without needing to re-register. iv. Our implementation team will manage every aspect of the conversion process to ensure a smooth transition for your 430,000+ existing app users. d. MPPS Management System
Our DMS provides real-time verification of parking spaces' payment status including session start and end time for enforcement purposes. Enforcement staff can access current payment information through the secure, web-based back-office system, which includes real-time and historical payment transaction data with search and look-up capabilities. This enables officers to immediately verify whether a vehicle has paid for parking and view the active session details during field enforcement activities. e. Training
i. We provide a comprehensive training program for our mobile payment tools that delivers as much training (both on-site and web-based) as needed by City staff.
This includes the option for additional and customized sessions before, during, and after pay-by-cell app deployment. Training is designed to be comprehensive yet efficient, requiring as little as one hour to complete due to the platform's intuitive design. The training program covers essential topics including creating an account, single sign-on (SSO), transactions, and administration. Training is delivered remotely via webinar, making it accessible and convenient for operations staff. The program includes unlimited remote sessions for refresher training, ensuring staff can receive ongoing support as needed. ii. Additionally, manuals are provided for reference material, and as new features are deployed, additional training sessions can be established at mutually agreeable times to provide updates and ensure staff maintain proficiency with the system. iii. Types of Training Courses with Target Audience:
a. PARK SMARTER/TEXT-TO-PAY Training – Operations Staff b. Data Management System Usage – Operations Supervisors/Managers, Adjudication Staff, Project Managers, System Administrators 34 34 of 107
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Exhibit “A”-9 PROFESSIONAL SERVICES AGREEMENT
iv. Description of Courses:
a. PARK SMARTER/TEXT-TO-PAY: Creating an account, single signon (SSO), transactions, and administration b. Data Management System: Financial, technical, and administrative reporting capabilities; advanced training for system administrators on configurations v. Length of Course:
a. PARK SMARTER/TEXT-TO-PAY: 1 hour
b. Data Management System: 1-2 hours per session
vi. Method of Training:
a. On-site classroom sessions
b. Remote instructor-led sessions (webinar/video conference) c. Recorded video modules
d. Combination of classroom-style instruction with hands-on system use vii. No prerequisites required. Training is designed for staff at all levels and includes both basic and advanced sessions tailored to functional user groups. g. Warranty & Contract Support
i. IPS provides comprehensive support services on peak days, including holidays and weekends. Standard support is available Monday through Friday from 8:00 a.m. to 5:00 p.m., with extended hours (8:00 a.m. to 8:00 p.m., Monday through Saturday) available based on your requirements. This flexibility allows us to align support coverage with peak parking activity and seasonal demand. ii. General response times within 8 hours of contact during support hours. For critical system issues, we provide 24/7 monitoring and services for outages or issues that impact the entire system.
iii. For scheduled maintenance, we provide notification at least seven days in advance. Scheduled maintenance is coordinated to have minimal impact on your operations and is excluded from uptime calculations.
iv. Support requests that cannot be handled immediately are acknowledged within one business day and updated on a mutually agreed upon timeline. All support requests are tracked through a ticket tracking system to ensure proper resolution and accountability.
h. Additional Services
i. IPS offers several enhanced services and features currently available or in nearterm development. We are happy to discuss any of these products in greater detail upon request:
a. Mobile Payment Solutions: PARK SMARTER provides a feature-rich mobile app with real-time expiration alerts, remote session extensions, multivehicle management, and Parking Finder tool for locating available parking. 35 35 of 107
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Exhibit “A”-10 PROFESSIONAL SERVICES AGREEMENT
TEXT-TO-PAY offers a no-download option via QR code or text message for quick, contactless payments—ideal for visitors and occasional users. b. Unified Data Management: Elevate™ is a next-generation, web-based back-office solution that serves as a centralized platform for managing all aspects of the parking ecosystem, ingesting, normalizing, and displaying citation data alongside meter, mobile payment, and permit data. The platform enables staff to monitor and control pay stations, view real-time transaction data, manage mobile payments, analyze system performance, and generate detailed reports across multiple vendors and systems—all from a single, user-friendly dashboard. Tier 1, Tier 2, and Tier 3 are included.
c. AI-Powered Customer Support: IPS is developing IPSy, a custom AI Chatbot that will be integrated into the TEXT-TO-PAY interface to provide immediate support for common questions and issues.
d. Flexible Integration Capabilities:
i. IPS maintains open-architecture APIs that enable real-time integration with third-party systems including citation management, LPR, parking guidance, and municipal asset management systems.
We have existing integrations with Passport, Pay-by-Phone, ParkMobile, Conduent, Genetec, Gtechna, and various parking operators.
ii. These services integrate seamlessly through standardized APIs and unified data management, ensuring customers experience
consistent, convenient access across all payment channels while the City maintains centralized operational control and reporting. e. Multi-Space Pay Stations: IPS is pleased to have partnered with the City of Laguna Beach on an implementation of over 3,000 single-space parking meters. Multi-space solutions are also available. MS3™ Multi-Space Pay Stations and MSX™ Multi-Space Kiosks are solar-powered with battery backup and cloud-based parking payment solutions that support dynamic pricing models, free periods for holidays and Sundays, and allow control of time of day settings, parking duration, and hourly fees. The MSX™ is a cashless universal kiosk ideal for campuses and off-street parking, featuring contactless and mobile payment options, merchant coupons, multilanguage support, and a vibrant full-color touchscreen for an express checkout experience.
ii. PARK SMARTER supports discounts, passes, and special event parking programs. PARK SMARTER leverages the DMS for managing all policies, rates and restrictions. The DMS supports different special events and holidays, and can handle different rates by time of the day, user class, different meters, prepay for parking spaces, jump rates, flat rates, and progressive rates. Additionally, IPS offers a separate validation service that can be used in conjunction with PARK SMARTER to allow merchants to offer parking validation services, including unique discount codes.
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Exhibit “A”-11 PROFESSIONAL SERVICES AGREEMENT
a. Regarding costs and fees: PARK SMARTER is a service provided by IPS that comes at no additional cost to your organization. You only incur the credit card transaction fee—the same fee that is incurred on parking transactions made with a credit card. The system plainly displays the total price for parking sessions to be paid by end users before they make payment, including all related fees such as transaction fees, SMS fees, credit card processing fees, and any additional fees that your organization may apply to the user.
iii. We offer real-time payment display on single-space meters. When a customer pays using the mobile app, the meter interface displays the paid status and time immediately. This real-time data exchange ensures that enforcement practices are not impacted while providing customers with maximum payment flexibility. iv. Our MPPS solution is designed with API-based architecture that enables seamless integration with third-party systems and future municipal platforms. We provide standardized data share APIs and comprehensive documentation that allow the City to connect the mobile parking payment system with other municipal services within a unified application.
a. Our platform supports real-time data transmission and can integrate with any system by receiving the data format specification, transmission API, and frequency requirements. We have proven integration capabilities with multiple vendors and platforms, demonstrating our ability to work within complex, multi-system environments.
b. The solution's web-based management system consolidates all parking transaction data, enforcement information, and analytics in a centralized platform. This architecture allows the City to aggregate parking data alongside other municipal services, supporting your long-term vision of a unified City mobile application. All integrations can be implemented without additional cost throughout the contract term, ensuring flexibility as your unified platform evolves.
v. Quarterly Business Reviews. IPS shall conduct quarterly business review meetings with City stakeholders during the term of this Agreement. These meetings will be held remotely or in person, as mutually agreed upon by the parties. The purpose of each meeting is to review system performance, operational metrics, service activities, and any open issues, as well as to discuss the City's current and future parking program goals, priorities, and initiatives. The parties will collaborate to identify opportunities for process improvements, operational efficiencies, and product or service enhancements that support the City's goals. 37 37 of 107
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Exhibit “A”-12 PROFESSIONAL SERVICES AGREEMENT
II. METERS AND REPAIRS
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Exhibit “A”-13 PROFESSIONAL SERVICES AGREEMENT
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Exhibit “A”-14 PROFESSIONAL SERVICES AGREEMENT
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Exhibit “A”-15 PROFESSIONAL SERVICES AGREEMENT
*Buyback credits may only be applied toward the purchase of IPS Multi-Space Meters (MSPM). All MSPMs purchase during the program period will include a 24-month extended warranty at no additional cost.
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Exhibit “A”-16 PROFESSIONAL SERVICES AGREEMENT
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Exhibit “A”-17 PROFESSIONAL SERVICES AGREEMENT
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Exhibit “A”-18 PROFESSIONAL SERVICES AGREEMENT
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Exhibit “A-I-1” PROFESSIONAL SERVICES AGREEMENT
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Exhibit “B”-1 PROFESSIONAL SERVICES AGREEMENT
EXHIBIT "B"
SCHEDULE OF SERVICES
I. PARKING SOFTWARE SOLUTION
Upon full execution of this Agreement, the structured implementation, which includes public launch coordination, hands-on training for city staff and enforcement personnel, and live monitoring to ensure smooth transition, will be completed within 13 weeks.
II. METERS AND REPAIRS
Consultant shall provide meters and repairs as soon as reasonably practical upon request of City.
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Exhibit “C”-1 PROFESSIONAL SERVICES AGREEMENT
EXHIBIT "C"
COMPENSATION
I. PARKING SOFTWARE SOLUTION
i. Processing Fees: Consultant charges a secure credit card gateway/convenience fee of $0.35 per transaction, which is paid by the customer.
Consultant also charges a merchant processing fee of $0.15 per transaction:
ii. Invoicing and Payments: The City retains 100% of the parking rate, with all processing and transaction fees paid by the customer.We provide detailed monthly statements listing all per-transaction charges. Revenue is transferred to the City by the 15th day of the following month.
iii. Reconciliation Process: We provide thorough and fully transparent auditing capabilities for mobile payments. You will have access to daily and monthly credit card settlement reports to 100% reconcile with merchant account statements. We provide complete details on each transaction including summary by day, summary by card type, summarybybatch,chargebacks andreversals,adjustments,andfees.Payments are processed and posted within 24 hours, and we reconcile the account prior to disbursement of funds to you.
II. METERS AND REPAIRS
City shall pay Consultant in accordance with the prices identified below for any device or repair services ordered by City.
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(BB&K 2017) Exhibit “D”-2
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(BB&K 2017) Exhibit “D”-3
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(BB&K 2017) Exhibit “D”-4
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55852.00003\42823523.1
(BB&K 2017) Exhibit “D”-5
*Buyback credits may only be applied toward the purchase of IPS Multi-Space Meters (MSPM). All MSPMs purchase during the program period will include a 24-month extended warranty at no additional cost.
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55852.00003\42823523.1
(BB&K 2017) Exhibit “D”-6
52 52 of 107
55852.00003\42823523.1
(BB&K 2017) Exhibit “D”-7
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55852.00003\42823523.1
(BB&K 2017) Exhibit “D”-8
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AGENDA REPORT
Meeting Date
May 28, 2024
Consent
4 SUBJECT: AWARD SERVICE PROVIDER AGREEMENT FOR PARKING METER
OPERATIONS AND TRANSACTION PROCESSING AND FIND ACTION
EXEMPT FROM CALIFORNIA ENVIRONMENTAL QUALITY ACT
RECOMMENDATION: It is recommended that the City Council:
1. Authorize the City Manager to enter into a five- year service provider agreement with IPS Group, Inc. for a not -to -exceed amount of $1, 490, 000for parking meter operations and transaction processing, with the option to extend for an additional one- year period; and
2. Find this action exempt from the California Environmental Quality Act.
Appropriation: Fund Name:
Submitted By: Approved:
MichaellLitschi, Dic/* A-fTransit and
Community Services
DaveKLif% ty Manager
SUMMARY OF THE MATTER
The City of Laguna Beach operates approximately 1, 800 solar -powered on -street parking meters and 15 multi -space pay stations provided by IPS Group, Inc. (IPS), accepting coins and credit cards. Staff recommends entering into a five- year agreement with IPS for parking meter operations and transaction processing with a one- year option term. In 2023, IPS parking meters brought in more than $4. 5 million in revenue, and credit card payments represented approximately 88 percent of total revenue.
DISCUSSION
IPS has provided maintenance, replacement parts, and data management services for the City' s parking meters since 2008. The current agreement with IPS for parking meter operations and transaction processing will expire on June 30, 2024. Staff recommend entering into a five- year agreement with IPS (Attachment 1) for a not -to -exceed amount of $1, 490, 000 for parking meter transaction processing, with the option to extend for an additional one- year period. The first year of the agreement has a not -to -exceed amount of 295, 000, which is approximately 22 percent of overall transactions. Subsequently, there is an annual increase of approximately 0. 5percent due to contractual increases for data management and per transaction fees.
Per Section 2. 30. 050( b) ofthe City' s Municipal Code, this agreement meets the criteria for a Sole Source Service that is exempt from the bid requirements specified in Section 2. 30. 030 due to the unique nature of the services, which are exclusively available from IPS. IPS is the only vendor that can process credit card payments on IPS equipment and provide payment transaction data. Ifthe City purchases pay stations and/ or parking meters from a different vendor in the future, a new agreement for operations and transaction processing will be negotiated with that vendor.
In 2022, the City began to replace single- space IPS parking meters with multi -space IPS pay stations in certain areas of the City, including in front of City Hall and on CliffDrive near Diver' sCove. Eight multi - space pay stations were installed in front of the Sawdust Festival on Laguna Canyon Road and Frontage Attachment 2
55 55 of 107
INDEPENDENT CONTRACTOR AGREEMENT
FOR COIN/REDIT CARD PROCESSING AND DATA MANAGEMENT SERVICES THIS AGREEMENT is made and entered into this a. b' n' day of fu h e , 2024 Effective Date), by and between the City ofLaguna Beach, a Municipal Corporation, hereinafter referred to as the " CITY," and IPS Group, Inc., hereinafter referred to as " INDEPENDENT CONTRACTOR." CITY and INDEPENDENT CONTRACTOR are sometimes individually referred to herein as " Party" and collectively as " Parties."
RECITALS
WHEREAS, the CITY desires to engage INDEPENDENT CONTRACTOR to render coin and credit card processing and data management services for all the single space meters and IPS multi - space pay stations located within the City; and WHEREAS, since 2011 the City has purchased and installed over 1, 809 single- space meters and 15 multi -space pay stations; and
WHEREAS, on November 1, 2011, the CITY and INDEPENDENT CONTRACTOR entered into a Professional Service Agreement for Credit Card Parking Meters and Data Management Services (" Original Agreement"); and
WHEREAS, there have been a total of seven amendments to the Original Agreement with the Parties most recently executing Contract Amendment 7 of the Original Agreement on or around July 1, 2023. to extend the term of the Original Agreement and compensation for INDEPENDENT CONTRACTOR' Sservices; and
WHEREAS, the CITY has a need for the software provided by IPS to maintain the singlespace meters and multi -space pay stations in use and IPS is uniquely positioned to fulfill this requirement due to the specific need for its software services; and WHEREAS, INDEPENDENT CONTRACTOR is qualified and agreeable to render the services desired by the CITY.
NOW, THEREFORE, in consideration of the foregoing and of the mutual promises hereinafter expressed and intending to be bound hereby, the Parties hereto do mutually agree as follows:
PART I
FUNDAMENTAL TERMS
Article 1. Engagement of INDEPENDENT CONTRACTOR
The CITY hereby agrees to engage INDEPENDENT CONTRACTOR to perform the services as hereinafter set forth, and INDEPENDENT CONTRACTOR agrees to perform those services in accordance with the terms and conditions of this Agreement.
Agreement No. 24- 35
56 56 of 107
Article 2. Scope of Services
In compliance with all terms and conditions of this Agreement, INDEPENDENT CONTRACTOR shall perform all work necessary to complete, in a manner satisfactory to the CITY, any services, including parking meter operations and transaction processing, procurement of equipment, maintenance, and replacement parts. and data management services requested by the CITY, as further described in Appendix A, Scope of Services.
Appendix A includes INDEPENDENT CONTRACTOR' scurrent pricing for its services, equipment, maintenance, and replacement parts for the Agreement term. INDEPENDENT CONTRACTOR shall provide CITY with MST", IPS Credit Card -Enabled Single -Space Meter software services at a monthly data and management fee of $9. 00 per single- space parking meter and $ 0.7 per credit card transaction at single- space meters as further described in the table titled MST. Ongoing Fees" in Appendix A. Data and management fees for all multi - space stations currently installed and are installed in the future will be charged at a per multi -space station fee with no per transaction fees applied. INDEPENDENT CONTRACTOR shall further provide CITY with IPS MS3T" Multi -Space Pay Station software services at the current per pay station fee of $ 55. 00 per month, as further detailed hi table titled " Multi -Space Ongoing Costs" in Appendix A. The CITY shall only be billed for services, maintenance, equipment, and replacement parts that the CITY specifically requests or requires during the Term of the Agreement.
Article 3. Term and Time of Performance
The initial terns of this Agreement shall commence on July 1, 2024, and shall continue and remain in effect until June 30, 2029 (" Term"). Thereafter, the Agreement may be extended for a period of one- year at the sole option of the City. The services of INDEPENDENT CONTRACTOR are to commence within five (5) days after this Agreement has been approved by the CITY and the CITY has authorized work to start by the written issuance of a Notice to Proceed, Article 4. Payment and Limitation of Cost
The CITY shall compensate INDEPENDENT CONTRACTOR for actual services performed under Article 2 in accordance with the following schedule:
A. For the Term of this Agreement, CITY shall pay an amount not to exceed One Million Four Hundred Ninety Thousand Dollars ($ 1. 490, 00) for the services of INDEPENDENT CONTRACTOR.
In order to receive payments for the actual services performed, INDEPENDENT CONTRACTOR shall submit to the CITY a monthly invoice. The invoice will delineate the services performed with specificity, the amount invoiced to date, and such other documentation as may be necessary or requested by the CITY to demonstrate that appropriate progress has been made toward completion of the services, the specific services provided, and equipment procured.
Notwithstanding the foregoing, the amount allocated in Subsection A of this Article represents the maximum compensation the CITY is willing to pay for the services rendered during the term of this Agreement. In no event shall the total compensation exceed the amount specified in Subsection A without the prior written authorization of the City.
Agreement No. 24- 35
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Article 5. Attachments
The provision set forth in Part II, General Provisions, and Appendix A, "Scope of Services," are by reference incorporated herein and made a part hereof.
Article 6. Integration
This Agreement. including Appendix A, represents the entire understanding of the CITY and INDEPENDENT CONTRACTOR as to those matters contained herein. No prior oral or written understanding shall be of any force or effect with regard to those matters covered by this Agreement. This Agreement supersedes and cancels any and all previous negotiations, arrangements, agreements, and understandings, if any, between the Parties, and none shall be used to interpret this Agreement.
Agreement No. 24- 35
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IN WITNESS WHEREOF, the persons executing this Agreement warrant and represent that they are authorized to do the same on behalf of the Parties hereto and are authorized to bind those Parties to the terms and conditions of this Agreement.
CITY OF LAGUNA BEACH INDEPENDENT CONTRACTOR
Dave Kiff, City Manager
APPROVED AS TO FORM:
OP IAA. 4,K- AAA aDDt
egan Garibaldi, City Attorney
Date: June 13 2024
By Webber ( Jun 8. 2024 OS, Pon
Title General Counsel
Address 7737 Kenamar Ct.,
San Diego CA 92121
4- Agreement No. 24- 35
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PART II
GENERAL PROVISIONS
SECTION ONE: SERVICES OF INDEPENDENT CONTRACTOR
1. Scope of Services. In compliance with all terms and conditions of this Agreement, INDEPENDENT CONTRACTOR shall perform all work necessary covered by this Agreement in a manner satisfactory to the CITY. This Agreement includes the services described and set forth in Appendix A, Scope of Services, attached hereto and by reference incorporated herein and made a part hereof, which may be referred to as " services."
1. 2 Changes and Additions to Scope of Services. The CITY shall have the right at any time during the performance of the services, without invalidating this Agreement, to order extra services beyond that specified in the Scope of Services or make changes by altering, adding to, or deducting from said services. No payment for extra services caused by a change in scope or complexity of work shall be made, unless and until such extra services and a price therefore have been authorized in writing and approved by the CITY. Such written approval shall set forth the changes of work, extension of time for preparation, and adjustment of the fee to be paid by the CITY to INDEPENDENT CONTRACTOR. No claim for said additional work shall be made unless such additional work has been specifically authorized in writing by the CITY.
1. 3 Specifications. All specifications, manuals, or standards, either attached to this Agreement or incorporated herein by reference, are deemed to be the version in effect as of the date of this Agreement and are binding as to the performance of the work in this Agreement unless they are changed by written amendment and this Agreement is modified in writing to incorporate such changes. Any changes to the specifications, manuals, or standards are subject to CITY approval.
1. 4 Standard of Performance. INDEPENDENT CONTRACTOR hereby represents and warrants that it has the experience necessary to undertake the services to be provided herein. In light of such status and experience. INDEPENDENT CONTRACTOR hereby covenants that it shall perform the services in a skillful and competent manner, consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California and all work in a manner reasonably satisfactory to the CITY. INDEPENDENT CONTRACTOR shall be responsible for ensuring that all work performed, including by its employees or subcontractors ifany, is performed to the standards set forth in this Agreement and that such work complies with the requirements of appropriate governmental agencies and applicable laws ordinances, codes and regulations of the federal, state and local governments in effect at the time such services are performed.
Notwithstanding any other provision herein, INDEPENDENT CONTRACTOR agrees to perform all work to the reasonable satisfaction of the CITY within the time specified and according to the agreed specification. If the CITY reasonably determines that the work is not satisfactory, the CITY shall have the right to take appropriate action, including but not limited to: (i) meeting with INDEPENDENT CONTRACTOR to review the quality of the work and resolve matters of concern; (ii) requiring INDEPENDENT CONTRACTOR to repeat unsatisfactory work at no 5- Agreement No. 24- 35
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additional charge until it is satisfactory; ( iii) suspending the delivery of work to INDEPENDENT CONTRACTOR for an indefinite time; (iv) withholding payment; and ( v) terminating this Agreement as hereinafter set forth.
1. 5 Licenses, Permits, Fees and Assessments. INDEPENDENT CONTRACTOR shall obtain at its sole cost and expense all licenses. permits, and approvals that may be required by law for the performance of the services required by this Agreement. INDEPENDENT CONTRACTOR shall have the sole obligation to pay any fees, assessments, and taxes, plus applicable penalties and interest, which may be imposed by law and arise from or are necessary for INDEPENDENT CONTRACTOR' s
performance of the services required by this Agreement, and shall indemnify, defend, and hold hamiless the CITY against any such fees, assessments, taxes, penalties, or interest levied, assessed, or imposed against the CITY thereunder.
1. 6 Personnel. INDEPENDENT CONTRACTOR represents that it employs, or will employ, at its own expense, personnel required in performing the services required under this Agreement. All of the services required hereunder will be performed by INDEPENDENT CONTRACTOR and all personnel engaged in the work shall be fully qualified and be authorized or permitted under state and local law to perform such services, This Agreement contemplates the personal services of INDEPENDENT CONTRACTOR and INDEPENDENT CONTRACTOR' s employees, and it is recognized by the Parties hereto that a substantial inducement to CITY for entering into this Agreement was. and is, the professional reputation and competence of INDEPENDENT CONTRACTOR and INDEPENDENT CONTRACTOR' Semployees. Neither this Agreement nor any interest therein may be assigned by INDEPENDENT CONTRACTOR, except upon written consent of CITY.
1. 7 Prohibition Against Subcontracting or Assignment. INDEPENDENT CONTRACTOR shall not subcontract with any other entity to perform in whole or in part the services required hereunder without the express written approval of the CITY, and excepting any services identified in Appendix A, Scope of Services, and excepting minor incidental services including, but not limited to couriers and reprographics services, In addition, neither the Agreement nor any interest herein may be transferred, assigned, conveyed, hypothecated, or encumbered voluntarily or by operation of law, whether for the benefit of creditors or otherwise, without the prior written approval of the CITY. In the event of any unapproved transfer, the CITY may void the Agreement at the CITY' s
option in its sole and absolute discretion.
1. 8 Wage Rate Requirements. INDEPENDENT CONTRACTOR is aware of the requirements of California Labor Code Section 1720, et seq.. and 1770, et seq., as well as California Code of Regulations. Title 8, Section 16000, et seq., (" Prevailing Wage Laws"), which require the payment ofprevailing wage rates and the performance of other requirements on certain public works" and " maintenance" projects. If the services are being performed as part of an applicable " public works" or " maintenance" project, as defined by the Prevailing Wage Laws, and if the total compensation is $ 1, 000 or more, INDEPENDENT CONTRACTOR agrees to fully comply with such Prevailing Wage Laws. INDEPENDENT CONTRACTOR shall defend, indemnify and hold the CITY, its officials, officers. employees and agents free and harmless from any claims, liabilities, costs, penalties or interest arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. To the extent applicable, it shall be mandatory upon the INDEPENDENT CONTRACTOR and any subcontractors to comply with all California Labor Code provisions, which include but are not limited to prevailing wages ( Labor Code Sections 1771, 6- Agreement No. 24- 35
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1774 and 1775), employment of apprentices ( Labor Code Section 1777. 5), certified payroll records Labor Code Sections 1771. 4and 1776), hours of labor ( Labor Code Sections 1813 and 1815) and debarment of contractors and subcontractors ( Labor Code Section 1777.). The requirement to submit certified payroll records directly to the Labor Commissioner under Labor Code section 1771. 4shall not apply to work performed on a public works project that is exempt pursuant to the small project exemption specified in Labor Code Section 1771. 4.
1. 8. This project may be subject to compliance monitoring and enforcement by the Department of Industrial Relations. It shall be INDEPENDENT CONTRACTOR' Ssole responsibility to comply with all applicable Department of Industrial Relations registration and labor compliance requirements. Notwithstanding the foregoing, the contractor registration requirements mandated by Labor Code Sections 1725. 5 and 1771. shall not apply to work performed on a public works project that is exempt pursuant to the small project exemption specified in Labor Code Sections 1725. 5 and 1771.. Any stop orders issued by the Department of Industrial Relations against INDEPENDENT CONTRACTOR or any subcontractor that affect INDEPENDENT CONTRACTOR' Sperformance of services, including any delay, shall be INDEPENDENT CONTRACTOR' Ssole responsibility. Any delay arising out of or resulting from such stop orders shall be considered INDEPENDENT CONTRACTOR caused delay and shall not be compensable by the CITY. INDEPENDENT CONTRACTOR shall defend, indemnify and hold the CITY, its officials, officers, employees and agents free and harmless from any claim or liability arising out of stop orders issued by the Department of Industrial Relations against INDEPENDENT CONTRACTOR or any subcontractor.
SECTION TWO: INSURANCE
2. 1 Insurance. Without limiting INDEPENDENT CONTRACTOR' sindemnification obligations, INDEPENDENT CONTRACTOR shall procure and maintain, at its sole cost and for the duration of this Agreement, insurance coverage as provided below, against all claims for injuries against persons or damages to property which may arise from or in connection with the performance of the work hereunder by INDEPENDENT CONTRACTOR, its agents, representatives, employees, and/ or subcontractors. In the event that INDEPENDENT CONTRACTOR subcontracts any portion of the work in compliance with this Agreement, the contract between the INDEPENDENT CONTRACTOR and such subcontractor shall require the subcontractor to maintain the same policies of insurance that the INDEPENDENT CONTRACTOR is required to maintain pursuant to this Section 2. 1. If the existing policies do not meet the insurance requirements set forth herein, INDEPENDENT CONTRACTOR agrees to amend, supplement or endorse the policies to do so.
2. 1. Insurance Coverage Required. The policies and amounts of insurance required hereunder shall be as follows:
1) General Liability Insurance. Commercial General Liability Insurance which affords coverage at least as broad as Insurance Services Office " occurrence" form CG 00 01 including completed operations, with limits ofliability of not less than $ 1, 000.00 per occurrence and S2, 000,00 annual aggregate for
performance of this Agreement. The limits
liability
shall
arising
be provided
out of INDEPENDENT
by either a single
CONTRACTOR' s
primary policy or
combination of policies. If limits are provided with excess and/ or umbrella coverage, then the 7- Agreement No. 24- 35
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limits combined with the primary will equal the minimum limits set forth above. If written with an aggregate, then the aggregate shall be double the each occurrence limit. 2) Automobile Liability Insurance. Automobile Liability Insurance with a limit of liability of not less than $ 1, 000.0 each occurrence and S1, 000,00 annual aggregate. The limits shall be provided by either a single primary policy or combination of policies. If limits are provided with excess and/ or umbrella coverage, then the limits combined with the primary will equal the minimum limits set above. Such insurance shall include coverage for all " owned," hired" and " non -owned" vehicles, or coverage for" any auto." 3) Workers' Compensation Insurance. Workers' Compensation Insurance, as required by the State of California and Employer' s Liability Insurance with a limit of not less than S1, 000,00each accident for bodily injury and $ 1, 000,00 each employee for bodily injury by disease. Said insurance shall cover all employees of the INDEPENDENT CONTRACTOR providing any service in the performance of this agreement. A statement on an insurance certificate will not be accepted in lieu of the actual endorsement unless INDEPENDENT CONTRACTOR' s insurance carrier is the State of California Insurance Fund ( SCIF) and the endorsement numbers 2570 and 2065 are referenced on the certificate of insurance.
Workers' Compensation is not required for sole proprietors or a partnership with no employees.
However, the INDEPENDENT CONTRACTOR must complete a " Workers' Compensation Declaration." This form may be obtained from CITY staff. 4) Professional Liability Insurance. Professional Liability Insurance with minimum limits of $ 1, 000,00 each claim. Covered professional services shall include all work performed under this Agreement and delete any exclusion that may potentially affect the work to be perfored.
Evidence of Insurance. The INDEPENDENT CONTRACTOR, concurrently with the execution of this Agreement, and as a condition precedent to the effectiveness thereof, shall deliver either certified copies of the required policies, or original certificates and endorsements on forms approved by the CITY. The certificates and endorsements for each insurance policy shall be signed by a
person authorized by that insurer to bind coverage on its behalf. At least fifteen ( 15 days) prior to the expiration of any such policy, evidence of insurance showing that such insurance coverage has been renewed or extended shall be filed with the CITY. If such coverage is cancelled or reduced, INDEPENDENT CONTRACTOR shall, within ten ( 10) days after receipt ofwritten notice of such cancellation or reduction of coverage, file with the CITY evidence of insurance showing that the required insurance has been reinstated or has been provided through another insurance company or companies.
Original, signed insurance certificates and endorsements must be sent via email from INDEPENDENT CONTRACTOR' sinsurance broker/ agent to the CITY.
The CITY project title or description MUST be included in the " Description of Operations" box on the certificate.
Certificate Holder:
Agreement No. 24- 35
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City of Laguna Beach, California
2. Endorsements.
Insurance policies shall not be in compliance if they include any limiting provision or endorsement that has not been submitted to the CITY for its written approval.
2.1 The insurance coverage required by Section 2. 1.() Commercial General Liability shall contain the following provisions or be endorsed to provide the following:
Additional Insured: The CITY, its elected officials, officers, employees, volunteers, boards, agents and representatives shall be additional insureds with regard to liability and defense of suits or claims arising out of the performance of the Agreement .
Additional Insured Endorsements shall not:
1. Exclude " Contractual Liability"
2. Restrict coverage to the " Sole" liability of the INDEPENDENT
CONTRACTOR
3. Exclude " Third -Party -Over -Actions"
4. Contain any other exclusions contrary to the Agreement.
Primary Insurance: This insurance shall be primary and any other insurance whether primary, excess, umbrella or contingent insurance, including deductible, or self- insurance available to the insureds added by endorsement shall be in excess of and shall not contribute with this insurance.
A statement on an insurance certificate will not be accepted in lieu ofthe actual endorsement.
2. The policy or policies of insurance required by Section 2. 1.(3) Workers' Compensation shall be endorsed as follows:
Waiver of Subrogation: A waiver of subrogation stating that the insurer waives all rights of subrogation against the indemnified parties.
2.3 Any deductible in excess of 550, 00 and/ or Self -Insured Retentions must be approved in writing by the CITY.
2.4 Acceptable Insurance. Each policy shall be from a
company with current A. M.
Best' s rating of A VII or higher and authorized to do business in the State of Califomia, or otherwise allowed to place insurance through surplus lines brokers under applicable provisions of the California Insurance Code or any federal law. Any other rating must be approved in writing by the CITY.
2.5 Insurance of Subcontractor. INDEPENDENT CONTRACTOR shall be responsible for causing its subcontractors to maintain the same types and limits of coverage in 9- Agreement No. 24- 35
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compliance with this Agreement, including naming the CITY, its elected officials, officers, employees, volunteers, boards, agents, and representatives as additional insured to the subcontractor' s
policies.
2. 3 Notice of Cancellation. Required insurance policies shall not be cancelled or the coverage reduced until a
thirty (30) day written notice of cancellation has been served upon the CITY; except ten ( 10) day written notice shall be allowed for non- payment of premium.
2. 4 Contractual Liability. Die coverage provided shall apply to the obligations assumed by INDEPENDENT CONTRACTOR under the indemnity provisions of this Agreement.
2. 5 Claims Made Policies " aka: Tail Coverage." If coverage is written on a claims - made basis, the retroactive date on such insurance and all subsequent insurance shall coincide or precede the effective date of the initial Agreement with the CITY and continuous coverage shall be maintained or an extended repotting period shall be exercisedfor a period of at least three (3) years from termination or expiration ofthis Agreement. Upon expiration or termination of coverage of required insurance, INDEPENDENT CONTRACTOR shall procure and submit to CITY evidence of" tail" coverage or an extended reporting coverage period endorsement for the period of at least three ( 3) years from the time that all work under this Agreement is completed.
2. 6 Waiver of Subrogation. Required insurance coverages shall not prohibit INDEPENDENT CONTRACTOR from waiving the right of subrogation prior to a loss. INDEPENDENT CONTRACTOR shall waive all rights of subrogation against the indemnified parties and policies required under this Agreement shall contain or be endorsed to contain such a provision.
2. 7 Failure to Maintain Coverage. INDEPENDENT CONTRACTOR agrees to suspend and cease all operations hereunder during such period of time as the required insurance coverage is not in effect and evidence of insurance has not been furnished to the CITY. The CITY shall have the right to withhold any payment due INDEPENDENT CONTRACTOR until INDEPENDENT CONTRACTOR has fully complied with the insurance provisions of this Agreement.
In the event that INDEPENDENT , CONTRACTOR' s
operations are suspended for failure to
maintain required insurance coverage, INDEPENDENT CONTRACTOR shall not be entitled to an extension of time for completion of the Work because of production lost during suspension.
SECTION THREE: INDEMNIFICATION
3. 1 Indemnification. To the greatest extent allowed by law, INDEPENDENT CONTRACTOR shall indemnify, defend with counsel of CITY' schoosing, and hold harmless the CITY and its officers, officials, employees, agents and volunteers (" Indemnitees") from and against any and all liability, loss, damage, causes of action, claims, suits, actions, arbitrations proceedings, administrative proceedings, regulatory proceedings, civil penalties and fines, expenses and costs ( including, without limitation, attorney' sfees and costs and fees of litigation, including expert witness fees) (collectively, " Liability") of every nature, whether actual, alleged or
performance
threatened.
ofthe
arising
services
out
provided
of or in
under
connection
this Agreement
with
or
INDEPENDENT
its failure to comply
CONTRACTOR' s
with any of its
obligations contained in this Agreement, except such Liability caused by the sole negligence or willful misconduct of the CITY. INDEPENDENT CONTRACTOR' sobligation to indemnify 10- Agreement No. 24- 35
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shall not be restricted to insurance proceeds, ifany, received by INDEPENDENT CONTRACTOR or the CITY or the Indemnitees.
3. 1. INDEPENDENT CONTRACTOR' sobligation to defend and indemnify shall not be excused because of INDEPENDENT CONTRACTOR' sinability to evaluate Liability or because INDEPENDENT CONTRACTOR evaluates Liability and determines that INDEPENDENT CONTRACTOR is not liable to the claimant. INDEPENDENT CONTRACTOR must respond within 30 days to the tender of any claim for defense and indemnity by the CITY, unless this time has been extended by the CITY. If INDEPENDENT CONTRACTOR fails to accept or reject a tender of defense and indemnity within 30 days, in addition to any other remedy authorized by law, so much of the money due INDEPENDENT CONTRACTOR under and by virtue of this Agreement as shall reasonably be considered necessary by the CITY, maybe retained by the CITY until disposition has been made of the claim or suit for damages, or until INDEPENDENT CONTRACTOR accepts or rejects the tender of defense, whichever occurs first.
3. 1. 2 With respect to third party claims against INDEPENDENT CONTRACTOR, INDEPENDENT CONTRACTOR waives any and all rights of any type to express or implied indemnity against the Indemnitees.
3. 1. If any term of portion of this Section 3 is held to be invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, said section shall be interpreted to allow the broadest indemnity permitted by law.
SECTION FOUR: LEGAL RELATIONS AND RESPONSIBILITIES
4. 1 Independent Contractor. It is expressly understood that in the performance ofthe services under the Agreement, INDEPENDENT CONTRACTOR shall be, and is, an " independent contractor" under applicable law, and is not an agent or employee of the CITY. The CITY shall not in any way or for any purpose become or be deemed to be a partner of INDEPENDENT CONTRACTOR in its business or otherwise, or a joint venturer, or a member of any joint enterprise with INDEPENDENT CONTRACTOR. INDEPENDENT CONTRACTOR shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of the CITY. The INDEPENDENT CONTRACTOR has and shall retain the right to exercise full control and supervision of the services, and full control over the employment, direction, compensation and discharge of all persons assisting INDEPENDENT CONTRACTOR in the performance of required services. INDEPENDENT CONTRACTOR shall be solely responsible and hold the CITY harmless for all matters relating to the payment of INDEPENDENT CONTRACTOR' s
employees, including compliance with Social Security withholdings and all other regulations governing such matters. Neither INDEPENDENT CONTRACTOR nor any of INDEPENDENT CONTRACTOR' s
employees shall, at any time, or in any way, be entitled to any sick leave, vacation, retirement or other fringe benefits from the CITY; and neither the CITY nor any of its employees shall be paid by the CITY time and one- half for working in excess of forty ( 40) hours in any one week. Neither INDEPENDENT CONTRACTOR nor any of INDEPENDENT CONTRACTOR' semployees shall be included in the competitive service, have 11- Agreement No. 24- 35
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any property right to any position, or any of the rights an employee may have in the event of termination of this Agreement.
4. 2 Non - Discrimination and Equal Employment Opportunity. During its performance under this Agreement, INDEPENDENT CONTRACTOR agrees as follows:
4. 2. 1 Equal Employment Opportunity. In connection with its performance under this Agreement. INDEPENDENT CONTRACTOR shall not discriminate against any employee or applicant for employment because of race, religion, color, sex, age, marital status, sexual orientation, AIDS or AIDS - related symptoms ( including HIV positive findings), physical disability, mental disability, mental condition, family care leave, sexual orientation, ancestry or national origin. Actions encompassed by this prohibition shall include, but not be limited to, the following: employment, upgrading, demotion or transfer; recruitment, or recruitment advertising; layoff or termination: rate of pay, or other forms of compensation; and selection for training, including apprenticeship.
4. 3 Proprietary Information. No reports, maps or other documents produced in whole or in part under this Agreement shall be the subject of an application for copyright by or on behalf of INDEPENDENT CONTRACTOR. All proprietary information developed specifically for the CITY by INDEPENDENT CONTRACTOR in connection with, or resulting from, this Agreement, including but not limited to inventions, discoveries, improvements, copyrights, patents, maps, reports, textual material or software programs, but not including INDEPENDENT CONTRACTOR' s
underlying materials, software, or know- hw, shall be the sole and exclusive property of the CITY, and are confidential and shall not be made available to any person or entity without the prior written approval of the CITY. INDEPENDENT CONTRACTOR agrees that the compensation to be paid pursuant to this Agreement includes adequate and sufficient compensation for any proprietary infomtation developed in connection with or resulting from the performance of INDEPENDENT CONTRACTOR' sservices under this Agreement.
INDEPENDENT CONTRACTOR further understands and agrees that full disclosure of all proprietary information developed in connection with, or resulting from, the performances of services by INDEPENDENT CONTRACTOR under this Agreement shall be made to the CITY, and that INDEPENDENT CONTRACTOR shall do all things necessary and proper to perfect and maintain ownership of such proprietary information by the CITY.
4. Use of Patented Materials. INDEPENDENT CONTRACTOR shall assume all costs arising from the use of patented or copyrighted materials, including but not limited to equipment, devices, processes, and software programs, used or incorporated in the services or work performed by INDEPENDENT CONTRACTOR under this Agreement. INDEPENDENT CONTRACTOR shall indemnify, defend, and save the CITY harmless from any and all suits, actions or proceedings of every nature for or on account of the use of any patented or copyrighted materials.
4. 5 Retention of Funds. INDEPENDENT CONTRACTOR hereby authorizes the CITY to deduct from any amount payable to INDEPENDENT CONTRACTOR ( where arising out of the Agreement or otherwise) any amounts the payment ofwhich may be in dispute hereunder or which are necessary to compensate the CITY for any losses, costs, liabilities or damages suffered by the CITY, and all amounts for which the CITY may be liable to third parties, by reason of INDEPENDENT CONTRACTOR' s negligent acts, errors, or omissions, or willful misconduct in 12- Agreement No. 24- 35
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perforating or failing to perform INDEPENDENT CONTRACTOR' s obligations under this Agreement. The CITY in its sole and absolute discretion, may withhold from any payment due to INDEPENDENT CONTRACTOR, without liability for interest, an amount sufficient to cover such claim or any lien. The failure of the CITY to exercise such right to deduct or withhold shall not act as a waiver of INDEPENDENT CONTRACTOR' s
obligation to pay the CITY any sums
INDEPENDENT CONTRACTOR owes the CITY.
4. 6 Termination for Convenience of the CITY. The CITY, in its sole discretion, may terminate this Agreement at any time, with or without cause, by giving sixty ( 60) days written notice of INDEPENDENT CONTRACTOR of such termination. In that event, all finished or unfinished documents and other materials shall, at the option of the CITY, become the CITY' s property. If this Agreement is terminated by the CITY as provided herein, then INDEPENDENT CONTRACTOR will be paid an amount which bean the same ratio to the total compensation as the services actually performed bear to the total services of the INDEPENDENT CONTRACTOR covered by this Agreement, less payments of compensation previously made.
4. 6. 1 In addition to its right to terminate pursuant to Section 4. 6, CITY may terminate this Agreement in the event of failure of INDEPENDENT CONTRACTOR to perform its obligations in accordance with the terms of this Agreement, provided that INDEPENDENT CONTRACTOR fails to cure such failure within ten ( 10) calendar days after receipt of such written notice or within a period that the parties agree to in writing.
4. 7 Termination of Agreement
4. 7. 1 In the event the CITY terminates this Agreement in whole or in part as provided in this Section, the CITY may procure, upon such terms and such manner as it may determine appropriate, services similar to those described in this Agreement.
4. 7.2 Except with respect to defaults of subcontractors, the INDEPENDENT CONTRACTOR shall not be liable for any excess costs if the failure to perform this Agreement arises out of causes beyond the control and without the fault or negligence of INDEPENDENT CONTRACTOR. Such causes may include, but are not restricted to, acts of God or of the public enemy, acts of the government in either its sovereign or contractual capacity, fires, floods, epidemics, quarantine restrictions, strikes and unusually severe weather; but in every case, the failure to perform must be beyond the control of. and without the fault or negligence of INDEPENDENT CONTRACTOR.
4. 7. 3 Upon receipt of notice oftermination from CITY, INDEPENDENT CONTRACTOR shall immediately stop its services, unless otherwise directed in writing by the CITY, and deliver to CITY all data, drawing, reports, estimates, summaries and such other information and materials as may have been accumulated by INDEPENDENT CONTRACTOR in the performance of this Agreement, whether completed or in process. Upon termination, INDEPENDENT CONTRACTOR shall be paid the value of the work performed, less payments of compensation previously made.
4. 8 Waiver. No delay or omission in the exercise of any right or remedy by a non - defaulting parry on any default shall impair such right or remedy or be construed as a waiver. A party' s consent to or approval of any act by the other party requiring the party' sconsent or approval shall 13- Agreement No. 2435
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not be deemed to waive or render unnecessary the other party' sconsent to or approval of any subsequent act. Any waiver by either party of any default must be in writing.
4. 9 Legal Actions. Legal actions concerning any dispute, claim or matter arising out of or in relation to this Agreement shall be instituted or maintained in the County of Orange. and INDEPENDENT CONTRACTOR agrees to submit to the personal jurisdiction of the court. If any claims related to the performance hereunder be asserted against either party hereto, then the party claimed against shall receive reasonable assistance from the other.
4. 10 Rights and Remedies are Cumulative. The rights and remedies of the Parties are cumulative and the exercise by either Party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any rights or remedies for the same default or any other default by the other Party.
4. 11 Attorneys' Fees. In any action between the Parties hereto seeking enforcement of any of the terms of provisions of this Agreement or in connection with the performance of the work hereunder, the party prevailing in the final judgment in such action or proceeding, in addition to any other relief which may be granted, shall be entitled to have and recover from the other Party its reasonable costs and expenses, including, but not limited to, reasonable attorneys' fees, expert witness fees and courts costs. If either Party to this Agreement is required to initiate or defend litigation with a third party because ofthe violation of any term or provision ofthis Agreement by the other Party, then the Party so litigating shall be entitled to its reasonable attorneys' fees and costs from the other Party to this Agreement.
4. 12 Jurisdiction. This Agreement shall be interpreted in accordance with the statutes and laws of the State of California, the City of Laguna Beach and any other government agency applicable to the subject of this Agreement and the performance hereunder.
4. 13 Non -liability of City Officers and Employees. No officer, official, employee, agent, representative, or volunteer of the CITY shall be personally liable to INDEPENDENT CONTRACTOR, or any successor in interest, in the event of any default or breach by the CITY, or for any amount which may become due to the CITY or its successor, or for breach of any obligation of terms of this Agreement.
4. 14 Extension of Time for Delay.
4. 14. Ifthe work is delayed at any time by reason of a suspension ordered by the CITY or because of any other act of the CITY, or because of neglect by the CITY without contributory fault or neglect on the part of INDEPENDENT CONTRACTOR, or if the work should be delayed at any time by reason of strikes, acts of God, the public enemy, acts of the CITY, fire, floods, epidemics, quarantine restrictions, freight embargoes, abnormal force, violence of the elements, or for any other unforeseen cause beyond the control and without the fault or negligence of INDEPENDENT CONTRACTOR, or for any other reason which in the opinion of INDEPENDENT CONTRACTOR is proper justification for such delay, then INDEPENDENT CONTRACTOR shall be entitled to an extension of time equivalent to the time actually lost by such delay.
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4. 14. 2 INDEPENDENT CONTRACTOR shall file a written request with the CITY for extension of time within ten ( 10) days following the beginning of such delay, and failure to do so shall constitute a waiver thereof, provided that in case of a continuing cause of delay, only one claim will be necessary. The CITY shall ascertain the facts and the extent of delay, and extend the time for performing the services for the period of the enforced delay when and if in the judgment of the CITY such delay is justified. The CITY' s detennination shall be in writing and be final and conclusive upon the parties to this Agreement.
4. 14. 3 A request for an extension of time or the granting of an extension of time shall not constitute a basis for any claim against the CITY for additional compensation. INDEPENDENT CONTRACTOR shall be deemed to have waived any claims for additional compensation and does hereby so waive any such claims unless he shall, at the time offiling a request for an extension of
time, likewise file a claim for additional compensation on account of such delay.
4. 15 Interests of Members of the CITY and Others. To the extent prohibited by applicable law, no officer, member or employee ofthe CITY and no member of its governing body nor other public official of the governing body of the locality or localities in which the work pursuant to this Agreement is being carried out, who exercises any functions or responsibilities in the review or approval of the undertaking or carrying out of the aforesaid work, shall ( 1) participate in any decision relating to this Agreement which affects his or her personal interest or the interest of any corporation, partnership, or association in which he or she has, directly or indirectly, any interest; or ( 2) have any interest, direct or indirect, in this Agreement or the proceeds thereof during his or her tenure or for one year thereafter.
4. 16 Interest ofINDEPENDENT CONTRACTOR. INDEPENDENT CONTRACTOR hereby covenants that it has, at the time of the execution of this Agreement, no interest, and that it shall not acquire any interest in the future, direct or indirect which would conflict in any manner or degree or be inconsistent with the performance of services required to be performed pursuant to this Agreement. INDEPENDENT CONTRACTOR further covenants that in the performance of this work no person having any such interest shall be employed.
4. 17 Covenant Against Contingent Fees. INDEPENDENT CONTRACTOR warrants that it has not employed or retained any company or person to solicit or secure this Agreement, and that it has not paid or agreed to pay any company or person any fee, commission, percentage, brokerage fee, gifts or any other consideration contingent upon or resulting from the making of this Agreement. In the event of a breach or violation of this warranty, the CITY shall have the right to annul this Agreement without liability or, in its discretion, to deduct from the compensation or consideration due INDEPENDENT CONTRACTOR, or otherwise recover, the full amount of such fee, commission, percentage, brokerage fee, gifts or contingent fee.
4. 18 Compliance with California Unemployment Insurance Code Section 1088. 8. If INDEPENDENT CONTRACTOR is a Sole Proprietor, then prior to signing the Agreement, INDEPENDENT CONTRACTOR shall provide to the CITY a completed and signed form W- 9, Request for Taxpayer Identification Number and Certification. INDEPENDENT CONTRACTOR understands that pursuant to California Unemployment Insurance Code Section 1088. 8, the CITY will report the information from Form W- 9 to the State of California Unemployment Development Department, and that the information may be used for the purposes of establishing, modifying, or 15- Agreement No. 24- 35
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enforcing child support obligations, including collections, or reported to the Franchise Tax Board for tax enforcement purposes.
SECTION FIVE: MISCELLANEOUS PROVISIONS
5. 1 Records and Audits. INDEPENDENT CONTRACTOR shall maintain complete and accurate records with respect to services performed ( including, but not limited to, the identity of the person doing the work a description by date and person of the work performed, and the amount of time expended on such work) and costs incurred under this Agreement. INDEPENDENT CONTRACTOR shall also maintain its records supporting its cost proposals used and relied on to enter into this Agreement. INDEPENDENT CONTRACTOR shall maintain records to show actual time and allowable costs with respect to each task set forth in the " Scopes of Services." All such records shall be maintained on a generally accepted accounting basis and shall be clearly identifiable. INDEPENDENT CONTRACTOR shall submit to the CITY such progress reports and final reports in the manner and time specified by the City. The final report and INDEPENDENT CONTRACTOR' s work product shall become the property of the CITY. A1I records required to be maintained hereunder shall be maintained by INDEPENDENT CONTRACTOR for a period of five ( 5) years.
5. 2 Access to Records. The CITY shall have access, upon reasonable notice, to the books and performance
records of INDEPENDENT
of this Agreement
CONTRACTOR
in the event
related
any audit
to INDEPENDENT
is required. The
CONTRACTOR' S
INDEPENDENT
CONTRACTOR shall allow inspection of all work data, documents, proceedings and activities related to the Agreement, and INDEPENDENT CONTRACTOR' s performance hereunder, for a period of one ( 1) year from the termination or expiration of this Agreement.
5. 3 Ownership of Records. All drawings, original documents, methodological explanations, computer programs, designs and reports and other materials prepared by INDEPENDENT CONTRACTOR in this performance of this Agreement, to the extent permitted by law, (i) shall be the property of the CITY and shall be delivered at no cost to the CITY upon request of the CITY or upon the termination ofthis Agreement in accordance with accepted standards relating to public contracts, and ( ii) are confidential and shall not be made available to any individual or entity without prior written approval of the CITY. Any additional copies will be the responsibility of the CITY.
5. 4 Notices. Unless otherwise provided herein, any notices required to be given under the Agreement shall be in writing with copies as directed herein and shall be personally delivered, or delivered by United States mail, prepaid, certified, return receipt requested, or by reputable document delivery service that provides a
receipt showing date and time of delivery. Notices
personally delivered or delivered by a nail document delivery service shall be effective upon receipt. Any notice given by mail shall be deemed to have been given when deposited in the United States mails certified and postage prepaid, addressed to the party to be served as follows:
To CITY: City of Laguna Beach
Attn: Director of Transit and Community Services
505 Forest Avenue
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Laguna Beach, CA 92651
Notices to INDEPENDENT CONTRACTOR shall be delivered to the address set forth below INDEPENDENT CONTRACTOR' ssignature on Part I ofthis Agreement. Changes in the address to be used for receipt of notices shall be effected in accordance with this Section 5. 4.
5. Severability. Each provision of this Agreement shall be severable from the whole. If any provision of this Agreement shall be found contrary to law, then the remainder of this Agreement shall continue in full force.
5. 6 Authors . The person( s) executing this Agreement on behalf ofthe Parties hereto warrant that ( i) such Party is duly organized and existing, ( ii) they are duly authorized to execute and deliver this Agreement on behalf of said Party, (iii) by so executing this Agreement, such Party is formally bound to the provisions of this Agreement, and ( iv) the entering into this Agreement does not violate any provision of any other Agreement to which said Party is bound.
5. 7 Construction and Amendment. The terms of this Agreement shalt be construed in accordance with the meaning ofthe language used and shall not be construed for or against either party by reason of the authorship of this Agreement or any other rule of construction which might otherwise apply. The headings of sections and paragraphs of this Agreement are for convenience or reference only, and shall not be construed to limit or extend the meaning of the terms, covenants and conditions of this Agreement. This Agreement may only be amended by the mutual consent of the Parties by an instrument in writing.
5. 8 Extent of Agreement. This Agreement represents the entire integrated agreement between the CITY and the INDEPENDENT CONTRACTOR and supersedes all prior negotiations, representations of agreements, either written or oral. This Agreement may not be modified or amended except by a writing signed by both the CITY and the INDEPENDENT CONTRACTOR.
5. 9 Precedence. In the event of any discrepancy between Part I ("Fundamental Terms") and Part II ("General Provisions"), Part II shall take precedence and prevail over Part I. 5, 10 Compliance with Laws, INDEPENDENT CONTRACTOR warrants and represents to CITY that it shall comply with all applicable statutes, standards, rules, and regulation required by Federal, State, and local agencies, including compliance with CAUOSHA requirements as may be applicable.
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APPENDIX A
SCOPE OF SERVICES
2024 STANDARD MUNICIPAL PRICE LIST
SINGLE- SPACE AND SENSORS
CAPITAL AND ONGOING COSTS
MS'" Capital Costs New
Factory
Certified'
M5'" IPS Credit Card - Enabled Single - Space Meter
12 - month warranty, NFC contactless, RFID tag) Quantity 0- 500 535. 00 395. 00
M5'" IPS Credit Card - Enabled Single - Space Meter
12 - month warranty, NFC contactless, RFID tag) Quantity 501- 1000 525. 00 375. 00
M5'" IPS Credit Card - Enabled Single - Space Meter
12 -month warranty, NFC contactless, RFID tag) Quantity 10000 515. 00 355. 00
Optional: Add BLE capability 65. 00 65. 00
Shipping ( Ex Works — to be quoted based on ship to zip code) TBQ TBQ Installation ( to be quoted based on scope) TBQ TBQ
Optional: Extended Warranty ( 12 - month period) 50. 00 60. 00 Optional: Extended Warranty ( 48 - month period) 170. 00 200. 00 M5'" Ongoing Fees Price
9. 00
Secure Wireless Gateway/ Data Fee and Meter Management System Software License Fee ( per meter per month)
Secure Credit Card Gateway Fee ( per transaction) 0.7
Optional: Merchant Processing Fees per transaction) To be quoted based on volume Optional: API or Data Integration Services
To be quoted based on the
need
VEHICLE DETECTION SENSORS CAPITAL AND ONGOING COSTS
Vehicle Detection Sensors Capital Costs
In -Ground Vehicle Detection Sensors ( includes 12 - month warranty) Price per unit
295. 00
Dome Mount Vehicle Detection Sensors ( includes 12 -month warranty) 295. 00 Shipping ( Ex Works — to be quoted based on ship to zip code) TBQ Installation ( to be quoted based on scope) TBQ
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Vehicle Detection Sensors Ongoing Costs Cost per space per month Management System/ Base Data Fee 3. 50
Optional: Real Time Reporting Fee 3. 00
SPARE PARTS
MS". Spare Part Pricing MS)"
Single Space Electronic Meter Mechanism. 535. 00
Card Entry Keypad Amy 65. 00
Hybrid Card Reader 75. 00
Coin Validator 95. 00
Complete Top Cover ( with Lexan insert) 85. 00
Lexan for Top Cover 25. 00
Coin Entry Slot 2. 00
M5 Battery Pack (63) 49. 00
M5 Battery Pack ( 65) (available on the 147/ 247 models only) 60. 00 Solar Panel / Communications Board 185. 00
Main Board 185. 00
Display Board 125. 00
Display Board with NFC 145. 00
BLE Beacon Upgrade 65. 00
RFID Tag 10. 00
MKS Batter Charger ( daisy chain charging unit) 125. 00 Card Reader Cleaning Card featuring Waffletechnology-' (40) per box 54. 00 Sensor Spare PartPing ^rte"
IPS vehicle detection sensor
Battery Replacement ( per D - cell)
In - Dome
295. 00
20. 00
Pole
295. 00
20. 00
NOTE: This pricing is FOB, IPS Group, San Diego, CA. Soles taxes and shipping charges will be added to the final invoice. IPS shall have the right to adjust Agreement pricing due to increases in Inflation as published by the US Bureau of Labor Statistics farAll Items Consumer Price Index for All Urban Consumers ( CPI -ill for the U. S City Average compounded annually.
Factory Certified meters are previously owned or trial meters but 100% inspected by IPS factory and carry standard 12 - month warranty.
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MULTI - SPACE METERS
Multi -Space Price Per Unit
IPS MS3'" Multi - Space Pay Station — Pay and Display, Pay - by -Space, or Pay -by - Plate ( Color Display, Card and Coin, Solar powered, Includes 12 - month warranty) Quantity 0- 50
6, 950. 0
IPS MS3'" Multi - Space Pay Station — Pay and Display, Pay - by -Space, or Pay -by - Plate ( Color Display, Card and Coin, Solar powered, Includes 12 -month warranty) Quantity 51- 125
6, 450. 0
IPS MS3`. Multi - Space Pay Station — Pay and Display, Pay -by -Space, or Pay -by - Plate ( Color Display, Card and Coin, Solar powered, Includes 12 - month warranty) Quantity 126+
5, 850. 0
IPS Upgrade Kit Pay Station — Pay and Display, Pay - by -Space, or Pay -by - Plate Solar powered, Includes 12 -month warranty)
2, 950. 0
Shipping and Installation ( per unit) — During normal business hours.
Ex Works — to be quoted based on ship to zip code and final scope of work.
Concrete work is not included)
TBQ
Optional: AC Power Upgrade Kit 150. 00
Optional: Contactless Card Reader ( NFC) 399. 00
Optional: Add for Bill Note Acceptor ( BNA) and 1 Stacker 1, 500. 0 Optional: Additional Coin Box 195. 00
Optional: Additional BNA Stacker 255. 00
Optional: MS1" Extended Parts Warranty ( per 12 - month period) 295. 00 Optional: MS3'" Extended Parts Warranty ( per 12 - month period) 395. 00 Multi - Space Ongoing Costs On -Street Off -Street
Secure Wireless Gateway/ Data Fee and Meter Management
System Software License Fee ( per meter per month)
55. 00
25. 00 /
55. 00
Secure Credit Card Gateway Fee
per transaction)
Included 0. 13/$ 0.7
Optional: Merchant Processing Fees ( per transaction) To be quoted based on volume Optional: API or Data Integration Services To be quoted based on need NOTE: This pricing is FOB, IPS Group, San Diego, CA. Sales taxes and shipping charge will be added to the final invoice. IPS shall hove the right to adjust Agreement pricing due to increases in inflation as published by the US Bureau of Labor Statistics for All Items Consumer Prire Index for All Urban Consumers ( CPI- Uf for the U. S. City Average compounded annually. 20- Agreement No. 24- 35
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SPARE PARTS
MST"' & MS3'" Spare Parts
Standard Card Reader Assembly
Price Per
Unit. 5/ 153""
149. 00
Coin Validator Assembly 99. 00
Solar Panel Replacement Kit 895. 00
Main Operating Board 995. 00
4G wireless modem assembly 270. 00
LCD Display only ( color) 1,00. 0
Armored Display Glass 135. 00
Thermal Printer 950. 00
6 -key Horizontal Keypad 85. 00
Pay -by -Space Keypad Assembly 195. 00
Pay -by -Plate Alphanumeric Keypad Assembly 275. 00
Coin Shutter 195. 00
Contactless Payment Reader ( NFC) 735. 00
Battery 72Ah (rechargeable) 485. 00
Additional Large Coin Canister 191. 00
Additional Small Coin Canister 105. 00
Standard Paper Rolls ( standard)
approx 2000 3" tickets (. 0045" thick)
32. 00
Sticky Back Paper Rolls
approx. 2400 2. 75" tickets (.004" thick)
35. 00
Bill Note Acceptor Assembly ( with 600 note stacker). 1, 500. 0 Additional 600 note stacker cartridge• 255. 00
NOTE: This pricing is FOB, IPS Group, Son Diego, CA. Sales taxes end shipping charges will be added to the final Invoice. IP shall have the right to adjust Agreement pricing due to increases in Inflation os published by the US Bureau of Labor Statistics for All Items Consumer Price Index for All Urban Consumers ( CPI -U0 far the U. S. City Average compounded annually. 21- Agreement No. 24- 35
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METER HOUSINGS & COLLECTION EQUIPMENT
METER HOUSINGS & ACCESSORIES
Product/ Service
IPS Zinc top over Iron Vault -M90 style ( large vault, std. IPS locks, black/ grey color) Price per unit
275. 00
IPS All Iron - M95 style ( large vault, std. IPS locks, black/ grey color) 275. 00 High Capacity Coin Can with IPS locks
holds approx. $65 - fits M90 or M95 style housings)
50. 00
Small Capacity Coin Can with IPS locks
holds approx. $ 45)
35. 00
Standard IPS Locks 25. 00
Standard IPS Keys 15. 00
Yoke Assembly ( Twin Mounting Adapter) std. black color ( add $ 15 if new mounting hardware is required
55. 00
Meter Poles ( Schedule 40 - 2" ID - Galvanized) 55. 00
Vintage Sleeve — std. black color 55. 00
Vintage Base- std. black color 65. 00
Collar for Vintage Sleeve — std. black color 35. 00
Medeco/ Abloy Mechanical Lock ( lock only) 55. 00
Medeco E - Lock ( lock only)
NOTE: additional Medeco a -lock accessories require separate quote) 195. 00
Shipping and Installation ( per unit) — During normal business hours.
Ex Works — to be quoted based on final scope of work.
TBO
COLLECTION SYSTEMS & ACCESSORIES
Product/ Service Price per unit
Collection Cart Only ( standard) 500. 00
Collection Cart Only ( with enhanced suspension) 795. 00 Standard Collection Head 500. 00
Coin Collection Canister - Steel or Aluminum 500. 00
NOTE: This pricing is FOB, IPS Group, San Diego, CA. Sales taxes and shipping charges will be added to the final Invoice. IPS shall hove the right to adjust Agreement pricing due to increases in Inflation as published by the US Bureau of Labor Statistics for All Items Consumer Price Index for All Urban Consumers ( CPI -U) for the U. S. City Average compounded annually.
MOBILE PAYMENTS
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PARK SMARTER'" MOBILE PAYMENT SOLUTION
Product/ Service Price per unit
PARK SMARTER'" mobile payment decals for SSPM 2. 00
PARK SMARTER'" mobile payment decals for MSM TBQ
Decal Shipping TBQ
On -site Setup and Installation see below
Additional signage or scope of work to be quoted upon request TBQ On - site setup: IPS shall provide the client with instructions on how to set up / install decals in support of the PARK SMARTER'" mobile payment application. However, IPS will send staff to provide installation and setup services. The costs for these services will be based on the costs of travel, rental car, hotel, and per diem expenses and will be added to the setup invoice at the completion of the service.
Per Transaction Fees
Secure Credit Card Gateway / Convenience Fee ( per transaction)` Fees
0. 35
Optional: Pushing Time to Meter 0. 10
Optional: Merchant Processing Fees ( per transaction) TBQ Per transaction fees: IPS shall charge a user convenience fee described above, which sha I be deposited with the client and invoiced monthly. Alternatively, IPS can quote a combination of fees plus merchant fees that can be paid directly from the merchant account.
Preferred Card Processing Rates: Using our own payment provider IPS can provide preferred pricing for small - ticket mobile payment merchant processing. Quotes for this service are available upon request.
IMPLEMENTATION WITH 3°p PARTIES
Product/ Service Price per unR
Implementation with 3' a party for enforcement TBQ
Customizations 200/ hr
Implementation: IPS shall integrate with 3rd party enforcement software or IPS can provide the client with IPS enforcement software at prices not included in this proposal. Any client designated 3rd party that charges IPS for integration services will be passed along to the client.
NOTE: This pricing is FOB, IPS Group, San Diego, CA. Soles taxes and shipping charges will be added to the final invoice. IPS shall Rave the right to adjust Agreement pricing due to increases In Inflation as published by the US Bureau of tabor Statistics for All Items Consumer Price Index for All Urban Consumers ( CPI -U) for the U. S. Oty Average compounded annually.
REPLACEMENT PARTS & REPAIR SERVICES
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IPS shall provide warranty and non - warranty repair services based out of our office in San Diego, CA. For repair services not able to be first achieved on - site by the Customer or by phone, these meters will be returned to IPS at 7737 Kenamar Court, San Diego, CA, 92121, for repair or rework, and IPS will endeavor to ship within 3-4 weeks of receipt, depending on the quantities received and work schedules. ALL RETURNS REQUIRE AN " RMA" NUMBER prior to shipment to IPS in order to avoid additional delays. An RMA may be requested by contacting the responsible IPS customer support manager, by contacting the IPS Help desk, phone ( 877) 630-638 or ( 858) 404- 0607) or email ( support@ipsgroupinc. com). All items returned to IPS must be securely packaged to avoid further damage in shipment and all shipments will be via Ground Freight Service unless expedited service and payment of associated fees are requested. Automated RMA tracking, including work performed to repair meters, can be viewed at any time using IPS meter management system.
Product/ Service Price per unit
125. 00+
shipping Single Space M3 Non - Warranty repair work ( includes parts/ lbor) Single Space M5T" Non -Warranty repair work ( includes parts/ lbor)
95. 00+
shipping
Multi - Space MS1'.
Non - Warranty repair work
To be
quoted
On - site technical services: shall be quoted to include labor, travel costs, accommodation, car rental, and per diem costs. Spare Parts shall be quoted and added to final costs based on the identified needs.
5950/ day+
parts
Shipping costs for any of the above shall be added to the final invoice NOTE: This pricing O FOB, IPS Group, San Diego, CA. Sales taxes and shipping charges will be added to the final invoice. IPSshall haw the right to adjust Agreement pricing due to increases in Inflation as published by the US Bureau of Labor Statistics for All Items Consumer Price Index for All Urban Consumers ( CPI - U) for the U. S. City Average compounded annually.
ON -SITE MAINTENANCE SERVICES
PS can offer on -site technician services either part- time or on a full- time basis. The costs of the services are outlined below:
Item
Part -Time IPS Technician
Units
Per day
Unit Price
950/ technician/ day
Full - Time IPS Technician Per month
TBQ is based on the scope of services. Would be
inclusive of technician and IPS vehicle.
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SAMPLE SCOPE OF SERVICES:
Cleaning of card readers and keypads
Inventory audit to confirm meter hardware assignments and geolocation.
Inspection of all meters to determine any need for repairs.
On -site meter training for the client staff
Shop Organization — help organize the shop inventory of all items and prepare recommended list of spare parts.
Preventative Maintenance— consisting of inspection of the meter interiors, greasing the validator connector/ s, lubricating the locks, checking the communications, checking the LCD' s, keypads, expiry indicator and diagnostically checking the REID reader.
ADDITIONAL SERVICES:
IPS can provide additional services in support of any items listed in these pricing tables and will be quoted separately upon request.
IPS can provide alternative pricing models to include rentals, lease, revenue share, and other models, and will be quoted separately upon request.
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IPS LIMITED WARRANTY - METER SOLUTION
IPS will provide a limited parts warranty for any new meter or sensor product manufactured and supplied by IPS for 12 months under normal use. The warranty protects against defects in materials and workmanship from the point of installation or 15 months from the date of delivery, whichever is sooner, and 90 days from the date of delivery received in the case of spare or repaired products. Software Services are provided " as - is" and IPS shall provide bug fixes at no cost during the contract term.
Additional Warranty Provisions: IPS must have the opportunity to assist in the initial deployment and system installation. Repair or replacement under warranty of any defective product ( including any meter or subcomponent) does not extend the warranty period for that product or subcomponent. IPS will either repair or replace products or subcomponents, at our discretion, that are found to be defective within the defined warranty period, with transportation costs prepaid by the customer. Returns for credit will only apply once IPS has received a defective product ( including any meter or subcomponent) and confirmed that defects were within the warranty period and are covered under the terms and conditions of the warranty provided. IPS strongly recommends that customers pre -purchase spare parts inventory for immediate access. Defective parts can be replaced immediately from customer stock and IPS shall replace such components upon receipt and determination of defect. On -site labor is explicitly not included in this limited warranty. Customer shall be sufficiently trained to perform all on - site work, including meter or subcomponent removal/ replacement. IPS can provide additional on -site services under a separate maintenance agreement or quoted on an as - needed basis. THE WARRANTIES CONTAINED IN THE AGREEMENT DOCUMENTS ARE IPS' S SOLE AND EXCLUSIVE WARRANTIES. THE EXTENT OF IPS' S LIABILITY FOR A
WARRANTY CLAIM IS LIMITED TO THE REPAIR OR REPLACEMENT OF THE DEFECTIVE EQUIPMENT OR DEFECTIVE SERVICE OR SOFTWARE AT THE SOLE OPTION OF IPS. IPS AFFIRMATIVELY EXCLUDES ANY AND
ALL OTHER WARRANTIES, CONDITIONS, OR REPRESENTATIONS ( EXPRESS OR IMPLIED, ORAL OR WRITTEN),
WITH RESPECT TO THE EQUIPMENT AND/ OR SERVICES OR SOFTWARE PROVIDED INCLUDING ANY AND ALL
IMPLIED WARRANTIES OR CONDITIONS OF TITLE, MERCHANTABILITY, OR FITNESS OR SUITABILITY FOR ANY
PURPOSE ( WHETHER OR NOT IPS KNOWS, HAS REASON TO KNOW, HAS BEEN ADVISED, OR IS OTHERWISE
IN FACT AWARE OF ANY SUCH PURPOSE) WHETHER ARISING BY LAW OR BY REASON OF CUSTOM OF THE TRADE.
Exclusions: Warranty voided with use of imitation or non - genuine IPS replacement parts, un- authorized alterations, abuse, vandalism, improper installation by customer, handling or general misuse to the equipment ( hardware or software), including attempted repairs that result in damage. The warranty specifically excludes any consumable items such as paper, batteries, etc. Software warranty is void if usernames and/ or passwords are shared with third parties, or allowance of third party access to IPS software without IPS written consent. Force Majeure: IPS shall not be liable for any warranty provisions where such product failure is as a result of Acts of Nature ( including fire, flood, earthquake, storm, hurricane or other natural disaster), war, invasion, act of foreign enemies, hostilities ( whether war is declared or not), civil war, rebellion, revolution, insurrection, military or usurped power or confiscation, terrorist activities, nationalization, government sanction, blockage, embargo, labor dispute, strike, lockout or interruption or failure of electricity, internet services or cellular telecommunication failures caused by any of the events or causes described above. IPS provides no warranty with respect to any third - party hardware or software, whether supplied in connection with this Agreement or otherwise. 26- Agreement No. 24- 35
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Preventative Maintenance: The primary operational elements will be a working battery, card reader, coin validator and printer ( if applicable). All product surfaces should be kept clean with mild soap and water. No harsh chemicals should be used on any plastic surfaces. The card reader heads should be cleaned with a cleaning card every 1- 2 months to ensure optimum performance. Cleaning cards maybe purchased from IPS. Batteries should be replaced when notified by the IPS Data Management System. At 6 - month increments, the coin validator shall be visually inspected for any damage or debris. Compressed air may be used to keep the card reader, coin acceptor or printer ( if applicable) clear of debris, every 6 months.
Additional preventative maintenance shall be administered by customer staff at such time as it is apparent to be necessary, even if it should occur on a more frequent basis than described herein. 27- Agreement No. 24- 35
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Laguna Beach - IPS Agreement
Final Audit Report 2024- 06- 18
Greeted: 2024- 06- 13
By. Mobile Guzman ( nguzman@lagunebeechcity. ne0
Status: Signed
Transaction ID: CBJCHBCAABAA2LSPR550RYMP- mT4DGK3WyZ4cblubYl Laguna Beach - IPS Agreement" History
rf. Document created by Nubile Guzman ( nguzman@lagunabeachcity. ne) 2024- 08- 13 - 11:6: 01 PM GMT
C., Document emailed to Brian Webber ( brian. webber@ipsgroupinc. com) for signature 2024- 08- 13 - 11:7:5 PM GMT
n Email viewed by Brian Webber ( brian. webber@ipsgroupinc. com) 2024- 08- 18 - 3: 44: 51 PM GMT
ho Document e -signed by Brian Webber ( brian. webber@ipsgroupinc. com) Signature Date: 2024- 06- 18 - 3: 47:3 PM GMT - Time Source: server Agreement completed.
2024- 08- 18 - 3: 47:3 PM GMT
Q Adobe Acrobat Sign
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Amendment No. 4
FOURTH AMENDMENT TO
INDEPENDENT CONTRACTOR AGREEMENT
FOR SMART PARKING GUIDANCE PROJECT
THIS FOURTH AMENDMENT TO INDEPENDENT CONTRACTOR AGREEMENT FOR SMART GUIDANCE PROJECT (“Fourth Amendment”) is made and entered into this ______ day of July, 2026, by and between the City of Laguna Beach, a Municipal Corporation, hereinafter referred to as the “CITY,” and FROGPARKING, INC., a Delaware stock corporation with its principal place of business at 9273 Research Drive, Irvine, CA 92618, hereinafter referred to as “INDEPENDENT CONTRACTOR.” CITY and INDEPENDENT CONTRACTOR are sometimes individually referred to herein as "Party" and collectively as "Parties." WHEREAS, the CITY and INDEPENDENT CONTRACTOR entered into an Independent Contractor Agreement for Smart Parking Guidance Project (“Agreement”) on April 25, 2019, and designated as City of Laguna Beach contract number 19-39 regarding software services addressing real-time parking availability for City parking lots and meter zones along with parking payment services; and
WHEREAS, the Parties entered into a First Amendment to extend the term of the Agreement for one (1) additional year from April 3, 2024, through April 2, 2025, and to adjust the compensation of INDEPENDENT CONTRACTOR for that extended term; and WHEREAS, the Parties entered into a Second Amendment to extend the term of the Agreement for one (1) additional year from April 3, 2025, through April 2, 2026, and to adjust the compensation of INDEPENDENT CONTRACTOR for that extended term; WHEREAS, the Parties entered into a Third Amendment to extend the term of the Agreement for six (6) additional months commencing on April 3, 2026, through October 2, 2026, and fix the compensation regarding the software subscription cost and maintenance fee during this extended term;
WHEREAS, the Parties now desire to enter into this Fourth Amendment to increase the not to exceed amount for the sixth month period of services from April 3, 2026 to October 2, 2026 to address the $0.25 transaction fee per transaction that INDEPENDENT CONTRACTOR charges City for the services under the Agreement.
NOW THEREFORE, in consideration of the foregoing and of the mutual promises hereinafter expressed and intending to be bound thereby, the CITY and INDEPENDENT CONTRACTOR mutually agree as follows:
1. The total compensation for INDEPENDENT CONTRACTOR’S services rendered under the Agreement for the six-month period from April 3, 2026, to October 2, 2026, shall be $7,840 per month and $0.25 per transaction in an amount estimated as $11,000.00 per month in a total amount not to exceed $112,040.00.
Attachment 3
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Amendment No. 4
2. Except as set forth in Sections 1 of this Fourth Amendment, and except as may be inconsistent or in conflict with Sections 1 above, all other provisions of the Agreement shall remain unchanged and in full force and effect. From and after the date of this Fourth Amendment, whenever the term “Agreement” appears in the Agreement, it shall mean the Agreement as amended by this Fourth Amendment.
3. The Parties stipulate and agree that they have each received adequate and independent consideration for the performance of the obligations they have undertaken pursuant to this Fourth Amendment. INDEPENDENT CONTRACTOR further accepts the terms and conditions of this Fourth Amendment as full and final resolution of any and all claims, asserted or otherwise, arising out of or related to the subject of this Fourth Amendment and acknowledges that the compensation and/or additional time, if any, set forth herein is adequate and comprises the total compensation and/or time due for the changes included in this Fourth Amendment.
4. This Fourth Amendment may be executed in duplicate originals, each of which is deemed to be an original, but when taken together shall constitute but one and the same instrument.
IN WITNESS WHEREOF, the CITY and CONSULTANT have executed this Fourth Amendment as of the date first set forth above, and the parties executing this Fourth Amendment warrant and represent that they are authorized to do the same on behalf of the Parties and are authorized to bind those Parties to the terms and conditions of this Fourth Amendment.
CITY OF LAGUNA BEACH
By
Dave Kiff, City Manager
ATTEST:
Ann Marie McKay, City Clerk
INDEPENDENT CONTRACTOR
FROGPARKING, INC.
By
Title
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Amendment No. 4
Address______________________________
____________________________________
____________________________________
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STAFF REPORT
Meeting Date:
July 21, 2026
NON APPEAL
15 SUBJECT: ADOPTION OF THE DESIGN REVIEW EFFICIENCY ORDINANCE,
EFFICIENCY ORDINANCE, AND RESOLUTION AMENDING THE DESIGN
REVIEW GUIDELINES AND PUBLIC HEARING AND ADOPTION OF AN
URGENCY ORDINANCE VERSION OF THE DESIGN REVIEW EFFICIENCY
ORDINANCE
RECOMMENDATION: It is recommended that the City Council:
1. Waive second full reading and adopt by title only an Ordinance titled, "AN ORDINANCE OF THE
CITY COUNCIL OF LAGUNA BEACH, CALIFORNIA, AMENDING ITS LOCAL COASTAL PROGRAM AND MUNICIPAL CODE TO MODIFY TITLE 25 (ZONING), TITLE 21 (SUBDIVISIONS), AND TITLE 22 (EXCAVATING, GRADING, AND FILLING) TO STREAMLINE THE DESIGN REVIEW AND OTHER PERMIT PROCESSES; AND FINDING
SAID ACTION EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT UNDER CEQA GUIDELINES SECTION 15301;
2. Waive second full reading and adopt by title only an Ordinance titled, "AN ORDINANCE OF THE
CITY COUNCIL OF THE CITY OF LAGUNA BEACH, CALIFORNIA, AMENDING ITS MUNICIPAL CODE TO MODIFY CHAPTER 7.25 (NOISE), 12.08 (PRESERVATION OF HERITAGE TREES), 12.16 (VIEW PRESERVATION AND RESTORATION), AND 17.50 (PRIVATE SEWER LATERALS) TO IMPROVE CONSISTENCY WITHIN THE CODE; AND
FINDING SAID ACTION EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT UNDER CEQA GUIDELINES SECTION 15301”;
3. Adopt a Resolution titled “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
LAGUNA BEACH, CALIFORNIA, AMENDING ITS LOCAL COASTAL PROGRAM TO MODIFY THE DESIGN GUIDELINES – A GUIDE TO RESIDENTIAL DEVELOPMENT, AND
FINDING SAID ACTION EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT UNDER CEQA GUIDELINES SECTION 15301”;
4. Conduct a public hearing, waive full reading and adopt by title only an Urgency Ordinance titled, “AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAGUNA BEACH,
CALIFORNIA, AMENDING ITS LOCAL COASTAL PROGRAM AND MUNICIPAL CODE TO MODIFY TITLE 25 (ZONING), TITLE 21 (SUBDIVISIONS), AND TITLE 22 (EXCAVATING, GRADING, AND FILLING) TO STREAMLINE THE DESIGN REVIEW AND OTHER PERMIT PROCESSES; AND FINDING SAID ACTION EXEMPT FROM THE
CALIFORNIA ENVIRONMENTAL QUALITY ACT UNDER CEQA GUIDELINES SECTION 15301”; and
5. Find that the recommended actions are exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15301 and in the alternative is statutorily exempt under CEQA Guidelines Section 15265.
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SECOND READING OF DESIGN REVIEW EFFICIENCY ORDINANCE AND EFFICIENCY ORDINANCE, AND AN INTERIM LAND USE ORDINANCE/URGENCY ORDINANCE NO. 2026-1339 STREAMLINING THE DESIGN REVIEW AND OTHER PERMIT PROCESSES July 21, 2026