Laguna Hills City Council
June 27, 2023

• Miscellaneous Repairs: The roof leaks from the winter storms caused water to migrate into the lobby walls and the lobby wooden mural. Most of the variance in this line item was for repair work.
• Electricity: About half of the variance is due to the addition of the vehicle chargers at the rear of the Civic Center, which is being mostly recovered through revenue from use of the charging stations. The other half can be attributed to the inefficiencies of operating the old cooling tower as it was failing, before it was replaced.

Due to the variance of these line items from the original budget, these line items have been either increased in the FY 2023/2024 budget (e.g. HVAC maintenance, electricity) or will be addressed through future capital projects (e.g. roofing repairs).

FISCAL IMPACT:

The proposed FY 2023/2024 Civic Center Budget projects a net loss of $538,487 after proposed capital improvement expenses. This net loss is mostly due to proposed capital improvement expenses, which can be funded by CIP No. 505, Civic Center Improvements. At this time, City staff is not recommending any additional funds be transferred from General Fund reserves to CIP No. 505 or the Civic Center enterprise fund.

ATTACHMENTS:
• Proposed FY 2023/2024 Civic Center Budget

4.13 Packet Pg. 417
Reviewed and Approved: _________________________________________ Dated: _________________________________________
PREPARED BY:

Property Manager: Chris Johar
Accountant: Vasuki Sathialingum
2023-2024 BUDGET

THE CITY OF LAGUNA HILLS CIVIC CENTER
24031-24035 El Toro Road, Laguna Hills, CA
PREPARED FOR:

The City of Laguna Hills
6/7/2023
TITLE PG (2), NEW DRAFT LHC 2023-2024 Fiscal YR Budget.xlsx

4.13.a
Packet Pg. 418 Attachment: Proposed FY 2023/2024 Civic Center Budget (3199 : FY 2023/2024 Civic Center Budget) A. HISTORIC SUMMARY
B. DETAIL PROFORMA (MRI)
C. MONTHLY SUITE FORECAST (MRI)
D. REVENUE ASSUMPTION WORKSHEET
E. EXPENSE ASSUMPTION WORKSHEET
F. MONTHLY OCCUPANCY SUMMARY

TABLE OF CONTENTS
NEW DRAFT LHC 2023-2024 Fiscal YR Budget.xlsx
ESSEX REALTY MANAGEMENT, INC.
6/7/2023

4.13.a
Packet Pg. 419 Attachment: Proposed FY 2023/2024 Civic Center Budget (3199 : FY 2023/2024 Civic Center Budget)

THE CITY OF LAGUNA HILLS CIVIC CENTER
2023-2024 BUDGET

HISTORIC SUMMARY
Project Size 51,946
2020/2021 2021/2022 2022/2023 2023/2024
Actuals Actuals Annualized Fiscal Budget COMMENTS
REVENUES:

Rental Income 1,161,834 1,189,964 1,222,801 1,285,526
Deferred Revenue (5,174) 4,743 0 0
Contra Revenue (549,965) (549,965) (549,965) (549,965)
CAM Income 78,633 111,534 139,030 152,593
Contra CAM (83,523) (101,398) (121,893) (117,079)
CAM Rec. Rev. 16,672 16,507 22,835 0
Late Fee Revenue 0 1,628 2,043 0
NSF Revenue 75 0 0 0
Other Revenue 0 2,843 5,764 0
TOTAL REVENUES: 618,552 675,857 720,615 771,076
AVERAGE OCCUPANCY: 83% 83% 82% 95%
DIRECT OPERATING EXPENSES: psf/yr
Security 8,195 5,323 5,619 3,615 $0.07
Cleaning 109,883 112,173 122,444 133,093 $2.56
Management Fee 49,078 50,319 52,283 51,336 $0.99
HVAC 23,243 26,326 72,295 50,872 $0.98
Elevator 7,824 6,927 11,436 10,682 $0.21
Repairs & Maintenance 41,828 69,379 132,686 91,582 $1.76 Utilities 124,412 138,790 172,298 174,835 $3.37
Parking Lot 6,260 6,320 7,241 8,180 $0.16
Landscaping 34,897 39,328 35,724 37,515 $0.72
Insurance 116,013 142,293 156,999 125,000 $2.41
Landscaping services for 2022-2023 were budgeted at
$38,000; annualized at $35,724; cost less than anticipated.

Slight increase in FY 2023/2024 based previous year.

Liability, Property, and Earthquake with Admin fee
included; City will join Joint Powers Insurance Authority effective July 1, 2023, resulting in savings.

Increase in the budget year due to management anticipating leasing suite 310.

Increase in budget year due to increase of insurance. As per current yearly 2022 CAM charges.

Cost of palm tree décor lighting installaton and parking sweep has increased.

Increase in expense for budget year due to Title-19 due in February 2023, $975. Increase in parts and labor for
contingency on sprinkler deficiency repair.

Increase in expense for budget year due to due to a minimum wage increase.

Decrease in expense due to less anticipated HVAC repairs due to new cooling tower install, iVu upgrade, and coil cleaning condenser.

Increase in expense for budget year due to increase of
contract mid year and repair contingency budgeted.

Decrease in expense due to important items was addressed to water leaks; replaster the lobby, and multiple roof repairs, including the dome, skylights, and above mural. Added
drywall repair for the filing room, $1,850; plumbing repair for the filing room, $3,035. Roof repair contingency
increased to $9,000 quarterly; Plumbing contingency $750 per month due to sewer pipe leaks/blockages.
2023 based on 2022 expenses plus an estimated 3%
increase; excluding April 2023 water consumption bill,
$2,591 due to the old cooling tower. $2,591 has been added to annualized. Since the new cooling tower was replaced, there was a significant decrease in consumption, $36.04 for May.

NEW DRAFT LHC 2023-2024 Fiscal YR Budget.xlsx
ESSEX REALTY MANAGEMENT, INC.
6/9/2023

4.13.a
Packet Pg. 420
Attachment: Proposed FY 2023/2024 Civic Center Budget (3199 : FY 2023/2024 Civic Center Budget) Real Estate Taxes 12,728 9,793 8,583 8,754 $0.17
Non-Reimb Expense 0 552 510 0 $0.00
DIRECT OPERATING EXPENSES: 534,360 607,523 778,118 695,464 $13.39 Direct Expenses psf/year $10.29 $11.70 $14.98 $13.39
Direct Expenses psf/month $0.857 $0.975 $1.248 $1.116 -10.6% NET OPERATING INCOME: $84,192 $68,334 ($57,503) $75,612 INDIRECT OPERATING EXPENSES:

Advertising & Promotions 2,414 2,721 5,360 3,675
Legal Fees 0 1,330 167 600
Admin & Professional Expense 1,363 4,182 1,075 600
Environmental Expense 189 224 224 224
Vacant/Tenant Space Refurbishment 665 5,221 7,365 3,600 Repairs & Maint. Indirect 15,385 13,973 13,403 20,017
Interest Income (47) (46) (101) 0
Total Indirect Oper. Costs: 19,969 27,604 27,493 28,716 NET INCOME AFTER INTEREST: 64,223 40,730 (84,996) 46,896 Capital Expenses:

Capital Improvements
23,998 52,369 50,000 537,980
Tenant Improvements 0 0 15,296 22,958
Lease Commissions 0 25,038 10,318 24,445
Total Capital Expenses: 23,998 77,408 75,614 585,383
NET CASHFLOW AFTER CAPITAL: 40,225 (36,677) (160,610) (538,487) Other Adjustments 0 0 33,034 0
OWNER (CONTRIB.) 0 0 (100,000) 0
OWNER DISTRIB. 0 0 0 0
NET CASHFLOW: 40,225 (36,677) (93,644) (538,487)
Budget Yr for Roof replacement, $113,080; (2) WHSP unit replacement, $28,000; Termite fumigation, $107,400;
exterior half-wall repair and paint, $14,500; Slurry and stripe asphalt, $25,000; Build Out for Suite 205, $250,000.

See revenue assumptions
See revenue assumptions
Expense will include a space planning fee for vacant suites, credit check, and bank fees.

Repair and maintenance for the City's office. Increase in service, parts, and labor.
2023/2024 based on 2022/2023 expenses plus an estimated increase.

Decrease due to palm tree lighting décor installation was reclassed to 7305-0000, $4,213. Service includes interior holiday décor and treats.

Services in FY 2022-2023 include suite 250 (7) door
cylinder and key replacement, $2,777; carpet cleaning,
$1,456. Plus, Blind installation for Police, $500; carpet cleaning services for suite 304 due to water damage, $375.

Not anticipating services in FY 2023-2024.

Annual environmental calendar report
NEW DRAFT LHC 2023-2024 Fiscal YR Budget.xlsx
ESSEX REALTY MANAGEMENT, INC.
6/9/2023

4.13.a
Packet Pg. 421
Attachment: Proposed FY 2023/2024 Civic Center Budget (3199 : FY 2023/2024 Civic Center Budget) Database: Budgeting and Forecasting Detail Proforma Page: 1 Date:

Time:

Total
Report:

Base Currency:

ESSEXREALTY
6/9/2023
Essex Realty SaaS DB 1:32 PM
Accrual
1349
2023 - 742 - Fiscal
B&F Budget:

Budget amounts from 07/23 to 06/24
07/23 08/23 09/23 10/23 11/23 12/23 01/24 02/24 03/24 04/24 05/24 06/24 BF_PROFORMD Detailed & Summarized
Entity: CITY OF LAGUNA HILLS
INCOME
4100-0000 Rent 105,046 107,033 107,233 107,233 107,609 107,653 107,653 107,783 107,783 107,783 104,149 108,568 1,285,526 - ALAN & DOMARINA PACE (RNT) 742-250C 600 600 619 619 619 619 619 619 619 619 619 619 7,386 - ALAN PACE (RNT) 742-250E 800 800 823 823 823 823 823 823 823 823 823 823 9,834 - BANC OF CALIFORNIA (RNT) 742-130 5,588 5,588 5,588 5,588 5,755 5,755 5,755 5,755 5,755 5,755 5,755 5,755 68,392 - BERGER HARRISON APC (ABR) 742-200 0 0 0 0 0 0 0 0 0 0 -3,634 0 -3,634 - BERGER HARRISON APC (RNT) 742-200 3,634 3,634 3,634 3,634 3,634 3,634 3,634 3,634 3,634 3,634 3,634 3,743 43,715 - Berger Harrison Expansion (RNT) 742-310 0 1,987 1,987 1,987 1,987 1,987 1,987 1,987 1,987 1,987 1,987 1,987 21,854 - CARNO LAW GROUP (RNT) 742-260 7,631 7,631 7,631 7,631 7,631 7,631 7,631 7,631 7,631 7,631 7,631 7,859 91,796 - CAROLYN BEHRENS (RNT) 742-330 1,872 1,872 1,872 1,872 1,872 1,872 1,872 1,872 1,872 1,872 1,872 1,947 22,539 - CITY OF LAGUNA HILLS (RNT) 742-100 45,830 45,830 45,830 45,830 45,830 45,830 45,830 45,830 45,830 45,830 45,830 45,830 549,965 - DAYLE MCINTOSH CENTER (RNT) 742-320 3,014 3,014 3,135 3,135 3,135 3,135 3,135 3,135 3,135 3,135 3,135 3,135 37,376 - DR. KOOROSH HOSN DDS (RNT) 742-230 3,459 3,459 3,459 3,459 3,459 3,459 3,459 3,459 3,459 3,459 3,459 3,562 41,608 - FAY BLIX (RNT) 742-301 5,202 5,202 5,202 5,202 5,410 5,410 5,410 5,410 5,410 5,410 5,410 5,410 64,089 - FIRST AMERICAN ADVISORS INC (RNT) 742-304 1,446 1,446 1,446 1,446 1,446 1,489 1,489 1,489 1,489 1,489 1,489 1,489 17,657 - JAMES R. FERRARA (RNT) 742-250B 600 600 618 618 618 618 618 618 618 618 618 618 7,379 - JOHN A ROSENBAUM (RNT) 742-250D 700 700 720 720 720 720 720 720 720 720 720 720 8,600 - LEWELLEN ACCOUNTANCY CORP. (RNT) 742-220 4,341 4,341 4,341 4,341 4,341 4,341 4,341 4,471 4,471 4,471 4,471 4,471 52,740 - NYA LLC (RNT) 742-210 5,107 5,107 5,107 5,107 5,107 5,107 5,107 5,107 5,107 5,107 5,107 5,107 61,279 - PREMIER GROUP INTERNATIONAL (RNT) 742-203 3,291 3,291 3,291 3,291 3,291 3,291 3,291 3,291 3,291 3,291 3,291 3,291 39,492 - SENATE RULES COMMITTEE (RNT) 742-201 2,963 2,963 2,963 2,963 2,963 2,963 2,963 2,963 2,963 2,963 2,963 2,963 35,552 - THE COUNTY OF ORANGE (RNT) 742-150 8,970 8,970 8,970 8,970 8,970 8,970 8,970 8,970 8,970 8,970 8,970 9,239 107,909 4125-0000 Contra Revenue -45,830 -45,830 -45,830 -45,830 -45,830 -45,830 -45,830 -45,830 -45,830 -45,830 -45,830 -45,830 -549,965 - CITY OF LAGUNA HILLS (CON) 742-100 -45,830 -45,830 -45,830 -45,830 -45,830 -45,830 -45,830 -45,830 -45,830 -45,830 -45,830 -45,830 -549,965 4200-0000 CAM Revenue 12,716 12,716 12,716 12,716 12,716 12,716 12,716 12,716 12,716 12,716 12,716 12,716 152,593 - BANC OF CALIFORNIA (CAM) 742-130 472 472 472 472 472 472 472 472 472 472 472 472 5,664 - CARNO LAW GROUP (CAM) 742-260 604 604 604 604 604 604 604 604 604 604 604 604 7,253 - CAROLYN BEHRENS (CAM) 742-330 159 159 159 159 159 159 159 159 159 159 159 159 1,910 - CITY OF LAGUNA HILLS (CAM) 742-100 9,757 9,757 9,757 9,757 9,757 9,757 9,757 9,757 9,757 9,757 9,757 9,757 117,079 - DAYLE MCINTOSH CENTER (CAM) 742-320 272 272 272 272 272 272 272 272 272 272 272 272 3,261 - DR. KOOROSH HOSN DDS (CAM) 742-230 227 227 227 227 227 227 227 227 227 227 227 227 2,725 - FIRST AMERICAN ADVISORS INC (CAM) 742-304 122 122 122 122 122 122 122 122 122 122 122 122 1,466 - LEWELLEN ACCOUNTANCY CORP. (CAM) 742-220 431 431 431 431 431 431 431 431 431 431 431 431 5,175 - NYA LLC (CAM) 742-210 397 397 397 397 397 397 397 397 397 397 397 397 4,760 - PREMIER GROUP INTERNATIONAL (CAM) 742-203 275 275 275 275 275 275 275 275 275 275 275 275 3,299 4205-0000 Contra CAM -9,757 -9,757 -9,757 -9,757 -9,757 -9,757 -9,757 -9,757 -9,757 -9,757 -9,757 -9,757 -117,079 - CITY OF LAGUNA HILLS (CCA) 742-100 -9,757 -9,757 -9,757 -9,757 -9,757 -9,757 -9,757 -9,757 -9,757 -9,757 -9,757 -9,757 -117,079

4.13.a
Packet Pg. 422
Attachment: Proposed FY 2023/2024 Civic Center Budget (3199 : FY 2023/2024 Civic Center Budget) Database: Budgeting and Forecasting Detail Proforma Page:
2 Date:

Time:

Total
Report:

Base Currency:

ESSEXREALTY
6/9/2023
Essex Realty SaaS DB 1:32 PM
Accrual
1349
2023 - 742 - Fiscal
B&F Budget:

Budget amounts from 07/23 to 06/24
07/23 08/23 09/23 10/23 11/23 12/23 01/24 02/24 03/24 04/24 05/24 06/24 BF_PROFORMD Detailed & Summarized
Entity: CITY OF LAGUNA HILLS
TOTAL INCOME 62,175 64,162 64,363 64,363 64,738 64,782 64,782 64,912 64,912 64,912 61,278 65,698 771,075

DIRECT EXPENSES

BLDG OPERATING EXPENSE
TOTAL BLDG OPERATING EXPENSE0000000000000

SECURITY
5121-0000 Security-Fire Alarms 355 115 115 355 115 115 355 115 115 355 1,390 115 3,615 742 - Annual Fire Alarm Testing0000000000 1,2750 1,275
742 - Fire Alarm Monitoring Svc 24000 24000 24000 24000 960 742 - Portion SSD Security System Mont 115 115 115 115 115 115 115 115 115 115 115 115 1,380 TOTAL SECURITY 355 115 115 355 115 115 355 115 115 355 1,390 115 3,615

CLEANING
5130-0000 Cleaning Contract-Janitor 5,310 5,409 5,409 5,409 5,409 5,409 5,518 5,518 5,518 5,518 5,518 5,518 65,463 5150-0000 Add'l Cleaning-DayPorter 4,175 4,175 4,175 4,175 4,175 4,275 4,298 4,298 4,298 4,298 4,298 4,298 50,938 5160-0000 Cleaning Supplies 856 867 867 867 867 867 867 867 867 867 867 867 10,393 5180-0000 Window Cleaning0000 2,49800000 3,8010 6,299
742 - Exterior Window Cleaning Svc0000 2,49800000 2,4980 4,996 742 - Interior Window Cleaning Svc0000000000 1,3030 1,303 TOTAL CLEANING 10,341 10,451 10,451 10,451 12,949 10,551 10,683 10,683 10,683 10,683 14,484 10,683 133,093

MANAGEMENT FEES
5305-0000 Mgmt Fee-Agent 4,278 4,278 4,278 4,278 4,278 4,278 4,278 4,278 4,278 4,278 4,278 4,278 51,336 - BF Management Fees 4,278 4,278 4,278 4,278 4,278 4,278 4,278 4,278 4,278 4,278 4,278 4,278 51,336 TOTAL MANAGEMENT FEES 4,278 4,278 4,278 4,278 4,278 4,278 4,278 4,278 4,278 4,278 4,278 4,278 51,336 HVAC
5410-0000 HVAC Contract Services 95 3,528 95 95 3,528 95 95 3,528 95 95 95 3,528 14,872 742 - DSL for EMS 95 95 95 95 95 95 95 95 95 95 95 95 1,140 742 - HVAC Prevent Maintenance Services0 3,43300 3,43300 3,433000 3,433 13,732 5415-0000 HVAC Repair/Maint 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 36,000

4.13.a
Packet Pg. 423
Attachment: Proposed FY 2023/2024 Civic Center Budget (3199 : FY 2023/2024 Civic Center Budget) Database: Budgeting and Forecasting Detail Proforma Page:
3 Date:

Time:

Total
Report:

Base Currency:

ESSEXREALTY
6/9/2023
Essex Realty SaaS DB 1:32 PM
Accrual
1349
2023 - 742 - Fiscal
B&F Budget:

Budget amounts from 07/23 to 06/24
07/23 08/23 09/23 10/23 11/23 12/23 01/24 02/24 03/24 04/24 05/24 06/24 BF_PROFORMD Detailed & Summarized
Entity: CITY OF LAGUNA HILLS
TOTAL HVAC 3,095 6,528 3,095 3,095 6,528 3,095 3,095 6,528 3,095 3,095 3,095 6,528 50,872

ELEVATOR
5435-0000 Elevator Contract Service0 1,78800 1,78800 1,87800 1,878 250 7,582 742 - Annual Permit00000000000 250 250
742 - Quarterly Maintenenance Services0 1,78800 1,78800 1,87800 1,8780 7,332 5440-0000 Elevator Repair/Maint00 750000 1,6000 750000 3,100 742 - Annual testing000000 1,60000000 1,600
742 - Contingency for Repairs00 75000000 750000 1,500
TOTAL ELEVATOR0 1,788 7500 1,7880 1,600 1,878 7500 1,878 250 10,682

REPAIRS AND MAINTENANCE
5445-0000 Waterproofing & Roofing0000 2,495 3,000 3,000 3,0000000 11,495 742 - Annual Roof Gutter & cleaning services0000 2,4950000000 2,495 742 - Contingency Roof Repair00000 3,000 3,000 3,0000000 9,000 5448-0000 Fire, Life, Safety 2250 240 22500 225 3750 525 3,5000 5,315 742 - Annual Fire Extinguishers service00 240000000000 240 742 - Annual Sprinkler Test000000000 52500 525
742 - Contingency Deficiency Sprinkler Repair0000000000 3,5000 3,500 742 - Contingency fire extinguisher repair0000000 3750000 375 742 - Quarterly Fire Sprinkler inspection 22500 22500 22500000 675 5450-0000 Painting 15000 15000 15000 15000 600
5460-0000 Plumbing Repairs/Supplies 750 750 750 750 750 750 750 750 750 750 750 750 9,000 5465-0000 Electrical Repair/Maint 30000 30000 30000 30000 1,200 5475-0000 Doors & Locks 150 150 150 150 750 150 150 150 150 150 750 150 3,000 5480-0000 Sign Repair/Maint 5000 5000 5000 5000 200
5485-0000 Floor & Carpet Rpr/Maint 945 6,0000 94500 94500 94500 9,780 742 - Annual Stone Services0 6,0000000000000 6,000
742 - Carpet Cleaning 94500 94500 94500 94500 3,780
5490-0000 Pest Control 94 94 94 94 94 94 94 94 94 94 94 94 1,128 5491-0000 Misc Repair/Maint 500 2,985 500 500 2,985 500 500 2,985 500 500 2,985 500 15,940 742 - Contingency Repair 500 500 500 500 500 500 500 500 500 500 500 500 6,000 742 - Wood Maintenance Services0 2,48500 2,48500 2,48500 2,4850 9,940 5495-0000 Onsite Maint Personnel 2,725 2,725 2,725 2,861 2,861 2,861 2,861 2,861 2,861 2,861 2,861 2,861 33,924 TOTAL REPAIRS & MAINTENANCE 5,889 12,704 4,459 6,025 9,935 7,355 9,025 10,215 4,355 6,325 10,940 4,355 91,582

4.13.a
Packet Pg. 424
Attachment: Proposed FY 2023/2024 Civic Center Budget (3199 : FY 2023/2024 Civic Center Budget) Database: Budgeting and Forecasting Detail Proforma Page:
4 Date:

Time:

Total
Report:

Base Currency:

ESSEXREALTY
6/9/2023
Essex Realty SaaS DB 1:32 PM
Accrual
1349
2023 - 742 - Fiscal
B&F Budget:

Budget amounts from 07/23 to 06/24
07/23 08/23 09/23 10/23 11/23 12/23 01/24 02/24 03/24 04/24 05/24 06/24 BF_PROFORMD Detailed & Summarized
Entity: CITY OF LAGUNA HILLS

UTILITIES
5499-0000 Electricity-General 12,888 27,841 18,234 20,489 8,987 3,978 6,924 11,773 9,253 10,308 10,859 7,426 148,960 5500-0000 Gas 27 27 32 28 24 453 873 1,735 119 1,163 45 159 4,685 5502-0000 Water & Sewer 1,303 1,932 1,494 3,025 2,394 1,011 790 807 2,788 1,666 919 1,261 19,390 5504-0000 Property Telephone 150 150 150 150 150 150 150 150 150 150 150 150 1,800 TOTAL UTILITIES 14,368 29,950 19,910 23,692 11,555 5,592 8,737 14,465 12,310 13,287 11,973 8,996 174,835

PARKING LOT
5510-0000 Pkg Lot-Lighting 50 50 50 50 2,250 50 50 2,250 50 50 50 50 5,000 742 - Contingency Repair 50 50 50 50 50 50 50 50 50 50 50 50 600 742 - Palm Tree Lighting Installation0000 2,20000 2,2000000 4,400 5525-0000 Pkg Lot-Sweeping 265 265 265 265 265 265 265 265 265 265 265 265 3,180 TOTAL PARKING LOT 315 315 315 315 2,515 315 315 2,515 315 315 315 315 8,180

LANDSCAPING
5560-0000 Landscaping Contract 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 28,800 5562-0000 Landscaping-Interior 380 380 380 380 380 495 380 380 380 380 380 380 4,675 5565-0000 Fountain Maintenance 545 295 295 295 295 295 545 295 295 295 295 295 4,040 TOTAL LANDSCAPE 3,325 3,075 3,075 3,075 3,075 3,190 3,325 3,075 3,075 3,075 3,075 3,075 37,515

INSURANCE
5805-0000 Insurance 10,417 10,417 10,417 10,417 10,417 10,417 10,417 10,417 10,417 10,417 10,417 10,417 125,000 TOTAL INSURANCE 10,417 10,417 10,417 10,417 10,417 10,417 10,417 10,417 10,417 10,417 10,417 10,417 125,000

REAL ESTATE TAXES
6205-0000 Real Estate Taxes0000 4,659000 4,095000 8,754 TOTAL REAL ESTATE TAXES0000 4,659000 4,095000 8,754
TOTAL DIRECT EXPENSE 52,383 79,621 56,865 61,703 67,814 44,908 51,830 64,169 53,488 51,830 61,845 49,012 695,464

4.13.a
Packet Pg. 425
Attachment: Proposed FY 2023/2024 Civic Center Budget (3199 : FY 2023/2024 Civic Center Budget) Database: Budgeting and Forecasting Detail Proforma Page:
5 Date:

Time:

Total
Report:

Base Currency:

ESSEXREALTY
6/9/2023
Essex Realty SaaS DB 1:32 PM
Accrual
1349
2023 - 742 - Fiscal
B&F Budget:

Budget amounts from 07/23 to 06/24
07/23 08/23 09/23 10/23 11/23 12/23 01/24 02/24 03/24 04/24 05/24 06/24 BF_PROFORMD Detailed & Summarized
Entity: CITY OF LAGUNA HILLS
NET OPERATING INCOME 9,793 -15,459 7,498 2,660 -3,075 19,874 12,952 743 11,424 13,082 -567 16,686 75,611

INDIRECT EXPENSES / INCOME
7305-0000 Advertising & Promotion0000 2,100 1,575000000 3,675 742 - Interior Holiday Decor Install0000 2,1000000000 2,100 742 - Tenant Appreciation Services00000 1,575000000 1,575 7310-0000 Legal Fees 15000 15000 15000 15000 600
7320-0000 Admin & Professional Exp. 50 50 50 50 50 50 50 50 50 50 50 50 600 742 - 742 - Contingency Administrative Exp. 50 50 50 50 50 50 50 50 50 50 50 50 600 7326-0000 Environmental Expense0 2240000000000 224
7330-0000 Tenant Space Refurb 90000 90000 90000 90000 3,600 7333-0000 Repairs & Maint- Indirect 355 355 2,840 5,172 3,840 355 355 2,840 355 355 2,840 355 20,017 742 - Annual Camera Maintenance000 3,40000000000 3,400
742 - Generator bi-annual service & inspection000 1,41700000000 1,417 742 - Generator lad bank test0000 1,0000000000 1,000
742 - SSD Alarm monitoring & Maint 355 355 355 355 355 355 355 355 355 355 355 355 4,260 742 - Wood Restoration00 2,4850 2,48500 2,48500 2,4850 9,940 TOTAL INDIRECT EXPENSES / INCOME 1,455 629 2,890 6,272 5,990 1,980 1,455 2,890 405 1,455 2,890 405 28,716 NET INCOME 8,338 -16,088 4,608 -3,612 -9,065 17,894 11,497 -2,147 11,019 11,627 -3,457 16,281 46,895

OTHER SOURCES AND USE OF CASH
1230-0000 Capital Improvements0 39,5000 14,000 107,40000 264,0000 113,08000 537,980 742 - (2) WHSP Unit Replacement000 14,000000 14,0000000 28,000 742 - Asphalt Seal Coat and Stripe0 25,0000000000000 25,000 742 - Build Out of Suite 2050000000 250,0000000 250,000 742 - Exterior Half Wall Paint & Repair0 14,5000000000000 14,500 742 - Roof Replacement000000000 113,08000 113,080
742 - Termite Treatment0000 107,4000000000 107,400
1240-0000 Tenant Improvements00 22,958000000000 22,958
742 - Berger Harrison Expansion - 31000 22,958000000000 22,958 1260-0000 Lease Commissions0 7,778 83400 1,3430 2,683000 11,808 24,446 742 - Alan & Domarina - Renewal - 250C00 186000000000 186 742 - Alan Pace - Renewal - 250E00 247000000000 247
742 - Berger Harrison Expansion - 3100 2,4340000000000 2,434

4.13.a
Packet Pg. 426
Attachment: Proposed FY 2023/2024 Civic Center Budget (3199 : FY 2023/2024 Civic Center Budget) Database: Budgeting and Forecasting Detail Proforma Page:
6 Date:

Time:

Total
Report:

Base Currency:

ESSEXREALTY
6/9/2023
Essex Realty SaaS DB 1:32 PM
Accrual
1349
2023 - 742 - Fiscal
B&F Budget:

Budget amounts from 07/23 to 06/24
07/23 08/23 09/23 10/23 11/23 12/23 01/24 02/24 03/24 04/24 05/24 06/24 BF_PROFORMD Detailed & Summarized
Entity: CITY OF LAGUNA HILLS
742 - Carno Law Group - 260 Renewal00000000000 7,074 7,074 742 - Dr. Koorosh Hosn DDS Renewal0 5,3440000000000 5,344 742 - First American Advisors - 304 Renewal00000 1,343000000 1,343 742 - James Ferrara - Renewal - 250B00 185000000000 185 742 - John A. Rosenbaum - Renewal - 250D00 216000000000 216 742 - Lewellen Accountant - 220 Renewal0000000 2,6830000 2,683 742 - NYA LLC - 210 Renewal00000000000 4,734 4,734
TOTAL OTHER SOURCES AND USE OF CASH0 47,278 23,792 14,000 107,400 1,3430 266,6830 113,0800 11,808 585,384 NET CASHFLOW 8,338 -63,366 -19,184 -17,612 -116,465 16,551 11,497 -268,830 11,019 -101,453 -3,457 4,473 -538,489

4.13.a
Packet Pg. 427
Attachment: Proposed FY 2023/2024 Civic Center Budget (3199 : FY 2023/2024 Civic Center Budget) Monthly Suite Forecast Page: 1
Date:

Time:

Rentable Sq. Ft. Projected
Total PSF
Avg.

Database:

Budget ID:

Basis:

Base Currency:

Bldg Suite Area Effective Rent Start Lease Expires
Calculation Type:

Area Type:

Entity:

ESSEXREALTY
6/7/2023
7:27 PM
07/23 08/23 09/23 10/23 11/23 12/23 01/24 02/24 03/24 04/24 05/24 06/24 2023 - 742 - Fiscal
Accrual
USD
742 - STD_Rev - 742
For Year 2023
Unit of Measure:

None
GLA

CITY OF LAGUNA HILLS
Square Feet
742 000 Available 552
742 100 CITY OF LAGUNA HILLS 7/1/2004 12/31/2099
Effective -7/1/2023 21,033
CAM Common Area Maintenance 9,756.62 9,756.62 9,756.62 9,756.62 9,756.62 9,756.62 9,756.62 9,756.62 9,756.62 9,756.62 9,756.62 9,756.62 117,079.44 0.000 CCA Contra CAM -9,756.62 -9,756.62 -9,756.62 -9,756.62 -9,756.62 -9,756.62 -9,756.62 -9,756.62 -9,756.62 -9,756.62 -9,756.62 -9,756.62 -117,079.44 0.000 CON Contra Revenue -45,830.40 -45,830.40 -45,830.40 -45,830.40 -45,830.40 -45,830.40 -45,830.40 -45,830.40 -45,830.40 -45,830.40 -45,830.40 -45,830.40 -549,964.80 0.000 RNT Base Rent 45,830.40 45,830.40 45,830.40 45,830.40 45,830.40 45,830.40 45,830.40 45,830.40 45,830.40 45,830.40 45,830.40 45,830.40 549,964.80 0.000 742 100A Available 0
742 100B Available 0
742 110 Available 0
742 130 BANC OF CALIFORNIA 11/1/2015 10/31/2025
Effective -7/1/2023 2,394
CAM Common Area Maintenance 472.03 472.03 472.03 472.03 472.03 472.03 472.03 472.03 472.03 472.03 472.03 472.03 5,664.36 0.000 RNT Base Rent 5,587.55 5,587.55 5,587.55 5,587.55 5,755.17 5,755.17 5,755.17 5,755.17 5,755.17 5,755.17 5,755.17 5,755.17 68,391.56 0.000 Total Rent For Lease 6,059.58 6,059.58 6,059.58 6,059.58 6,227.20 6,227.20 6,227.20 6,227.20 6,227.20 6,227.20 6,227.20 6,227.20 74,055.92 0.000 742 150 THE COUNTY OF ORANGE 2/1/2006 5/31/2032
Effective -7/1/2023 1,769
RNT Base Rent 8,969.96 8,969.96 8,969.96 8,969.96 8,969.96 8,969.96 8,969.96 8,969.96 8,969.96 8,969.96 8,969.96 9,239.06 107,908.62 0.000 Total Rent For Lease 8,969.96 8,969.96 8,969.96 8,969.96 8,969.96 8,969.96 8,969.96 8,969.96 8,969.96 8,969.96 8,969.96 9,239.06 107,908.62 0.000 742 200 BERGER HARRISON APC 6/1/2022 8/31/2027
Effective -7/1/2023 1,568
ABR Abated Rent 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -3,633.84 0.00 -3,633.84 0.000 RNT Base Rent 3,633.84 3,633.84 3,633.84 3,633.84 3,633.84 3,633.84 3,633.84 3,633.84 3,633.84 3,633.84 3,633.84 3,742.86 43,715.10 0.000 Total Rent For Lease 3,633.84 3,633.84 3,633.84 3,633.84 3,633.84 3,633.84 3,633.84 3,633.84 3,633.84 3,633.84 0.00 3,742.86 40,081.26 0.000 742 201 SENATE RULES COMMITTEE 5/16/2015 11/30/2018
Effective -7/1/2023 1,274
RNT Base Rent 2,962.64 2,962.64 2,962.64 2,962.64 2,962.64 2,962.64 2,962.64 2,962.64 2,962.64 2,962.64 2,962.64 2,962.64 35,551.68 0.000 Total Rent For Lease 2,962.64 2,962.64 2,962.64 2,962.64 2,962.64 2,962.64 2,962.64 2,962.64 2,962.64 2,962.64 2,962.64 2,962.64 35,551.68 0.000 742 203 PREMIER GROUP INTERNATIONAL 2/1/2019 4/30/2025
Effective -7/1/2023 1,377
CAM Common Area Maintenance 274.88 274.88 274.88 274.88 274.88 274.88 274.88 274.88 274.88 274.88 274.88 274.88 3,298.56 0.000 RNT Base Rent 3,291.03 3,291.03 3,291.03 3,291.03 3,291.03 3,291.03 3,291.03 3,291.03 3,291.03 3,291.03 3,291.03 3,291.03 39,492.36 0.000 Total Rent For Lease 3,565.91 3,565.91 3,565.91 3,565.91 3,565.91 3,565.91 3,565.91 3,565.91 3,565.91 3,565.91 3,565.91 3,565.91 42,790.92 0.000 742 205 Available 709
742 207 Available 1,634
742 210 NYA LLC 7/1/2019 6/30/2024
Effective -7/1/2023 1,987
CAM Common Area Maintenance 396.64 396.64 396.64 396.64 396.64 396.64 396.64 396.64 396.64 396.64 396.64 396.64 4,759.68 0.000 RNT 5,106.59 5,106.59 5,106.59 5,106.59 5,106.59 5,106.59 5,106.59 5,106.59 5,106.59 5,106.59 5,106.59 5,106.59 61,279.08 0.000
Base Rent

4.13.a
Packet Pg. 428
Attachment: Proposed FY 2023/2024 Civic Center Budget (3199 : FY 2023/2024 Civic Center Budget) Monthly Suite Forecast Page:
2 Date:

Time:

Rentable Sq. Ft. Projected
Total PSF
Avg.

Database:

Budget ID:

Basis:

Base Currency:

Bldg Suite Area Effective Rent Start Lease Expires
Calculation Type:

Area Type:

Entity:

ESSEXREALTY
6/7/2023
7:27 PM
07/23 08/23 09/23 10/23 11/23 12/23 01/24 02/24 03/24 04/24 05/24 06/24 2023 - 742 - Fiscal
Accrual
USD
742 - STD_Rev - 742
For Year 2023
Unit of Measure:

None
GLA

CITY OF LAGUNA HILLS
Square Feet
Total Rent For Lease 5,503.23 5,503.23 5,503.23 5,503.23 5,503.23 5,503.23 5,503.23 5,503.23 5,503.23 5,503.23 5,503.23 5,503.23 66,038.76 0.000 742 210A Available0
742 220 LEWELLEN ACCOUNTANCY CORP. 10/1/2013 1/31/2026
Effective -7/1/2023 1,855
CAM Common Area Maintenance 431.28 431.28 431.28 431.28 431.28 431.28 431.28 431.28 431.28 431.28 431.28 431.28 5,175.36 0.000 RNT Base Rent 4,340.70 4,340.70 4,340.70 4,340.70 4,340.70 4,340.70 4,340.70 4,470.92 4,470.92 4,470.92 4,470.92 4,470.92 52,739.50 0.000 Total Rent For Lease 4,771.98 4,771.98 4,771.98 4,771.98 4,771.98 4,771.98 4,771.98 4,902.20 4,902.20 4,902.20 4,902.20 4,902.20 57,914.86 0.000 742 230 DR. KOOROSH HOSN DDS 3/1/2000 5/31/2023
Effective -7/1/2023 1,098
CAM Common Area Maintenance 227.08 227.08 227.08 227.08 227.08 227.08 227.08 227.08 227.08 227.08 227.08 227.08 2,724.96 0.000 RNT Base Rent 3,458.70 3,458.70 3,458.70 3,458.70 3,458.70 3,458.70 3,458.70 3,458.70 3,458.70 3,458.70 3,458.70 3,562.46 41,608.16 0.000 Total Rent For Lease 3,685.78 3,685.78 3,685.78 3,685.78 3,685.78 3,685.78 3,685.78 3,685.78 3,685.78 3,685.78 3,685.78 3,789.54 44,333.12 0.000 742 24035 Available0
742 250 Available0
742 250A Available 205
742 250B JAMES R. FERRARA 9/1/2022 8/31/2024
Effective -7/1/2023 155
RNT Base Rent 600.00 600.00 617.85 617.85 617.85 617.85 617.85 617.85 617.85 617.85 617.85 617.85 7,378.50 0.000 Total Rent For Lease 600.00 600.00 617.85 617.85 617.85 617.85 617.85 617.85 617.85 617.85 617.85 617.85 7,378.50 0.000 742 250C ALAN & DOMARINA PACE 9/1/2022 8/31/2024
Effective -7/1/2023 140
RNT Base Rent 600.00 600.00 618.62 618.62 618.62 618.62 618.62 618.62 618.62 618.62 618.62 618.62 7,386.20 0.000 Total Rent For Lease 600.00 600.00 618.62 618.62 618.62 618.62 618.62 618.62 618.62 618.62 618.62 618.62 7,386.20 0.000 742 250D JOHN A ROSENBAUM 9/1/2022 8/31/2024
Effective -7/1/2023 205
RNT Base Rent 700.00 700.00 720.02 720.02 720.02 720.02 720.02 720.02 720.02 720.02 720.02 720.02 8,600.20 0.000 Total Rent For Lease 700.00 700.00 720.02 720.02 720.02 720.02 720.02 720.02 720.02 720.02 720.02 720.02 8,600.20 0.000 742 250E ALAN PACE 9/1/2022 8/31/2024
Effective -7/1/2023 295
RNT Base Rent 800.00 800.00 823.43 823.43 823.43 823.43 823.43 823.43 823.43 823.43 823.43 823.43 9,834.30 0.000 Total Rent For Lease 800.00 800.00 823.43 823.43 823.43 823.43 823.43 823.43 823.43 823.43 823.43 823.43 9,834.30 0.000 742 255 Available 566
742 260 CARNO LAW GROUP 3/1/2019 5/31/2027
Effective -7/1/2023 3,028
CAM Common Area Maintenance 604.45 604.45 604.45 604.45 604.45 604.45 604.45 604.45 604.45 604.45 604.45 604.45 7,253.40 0.000 RNT Base Rent 7,630.56 7,630.56 7,630.56 7,630.56 7,630.56 7,630.56 7,630.56 7,630.56 7,630.56 7,630.56 7,630.56 7,859.48 91,795.64 0.000 Total Rent For Lease 8,235.01 8,235.01 8,235.01 8,235.01 8,235.01 8,235.01 8,235.01 8,235.01 8,235.01 8,235.01 8,235.01 8,463.93 99,049.04 0.000 742 300 Available 672

4.13.a
Packet Pg. 429
Attachment: Proposed FY 2023/2024 Civic Center Budget (3199 : FY 2023/2024 Civic Center Budget) Monthly Suite Forecast Page: 3
Date:

Time:

Rentable Sq. Ft. Projected
Total PSF
Avg.

Database:

Budget ID:

Basis:

Base Currency:

Bldg Suite Area Effective Rent Start Lease Expires
Calculation Type:

Area Type:

Entity:

ESSEXREALTY
6/7/2023
7:27 PM
07/23 08/23 09/23 10/23 11/23 12/23 01/24 02/24 03/24 04/24 05/24 06/24 2023 - 742 - Fiscal
Accrual
USD
742 - STD_Rev - 742
For Year 2023
Unit of Measure:

None
GLA

CITY OF LAGUNA HILLS
Square Feet
742 301 FAY BLIX 9/1/2012 10/31/2024
Effective -7/1/2023 2,312
RNT Base Rent 5,202.00 5,202.00 5,202.00 5,202.00 5,410.08 5,410.08 5,410.08 5,410.08 5,410.08 5,410.08 5,410.08 5,410.08 64,088.64 0.000 Total Rent For Lease 5,202.00 5,202.00 5,202.00 5,202.00 5,410.08 5,410.08 5,410.08 5,410.08 5,410.08 5,410.08 5,410.08 5,410.08 64,088.64 0.000 742 304 FIRST AMERICAN ADVISORS INC 12/1/2017 11/30/2026 Effective -7/1/2023 614
CAM Common Area Maintenance 122.18 122.18 122.18 122.18 122.18 122.18 122.18 122.18 122.18 122.18 122.18 122.18 1,466.16 0.000 RNT Base Rent 1,446.09 1,446.09 1,446.09 1,446.09 1,446.09 1,489.47 1,489.47 1,489.47 1,489.47 1,489.47 1,489.47 1,489.47 17,656.74 0.000 Total Rent For Lease 1,568.27 1,568.27 1,568.27 1,568.27 1,568.27 1,611.65 1,611.65 1,611.65 1,611.65 1,611.65 1,611.65 1,611.65 19,122.90 0.000 742 310 Berger Harrison Expansion 8/1/2023 8/31/2027
Effective -7/1/2023 883
RNT Base Rent 0.00 1,986.75 1,986.75 1,986.75 1,986.75 1,986.75 1,986.75 1,986.75 1,986.75 1,986.75 1,986.75 1,986.75 21,854.25 0.000 Total Rent For Lease 0.00 1,986.75 1,986.75 1,986.75 1,986.75 1,986.75 1,986.75 1,986.75 1,986.75 1,986.75 1,986.75 1,986.75 21,854.25 0.000 742 320 DAYLE MCINTOSH CENTER 12/21/2014 8/31/2024
Effective -7/1/2023 1,218
CAM Common Area Maintenance 271.74 271.74 271.74 271.74 271.74 271.74 271.74 271.74 271.74 271.74 271.74 271.74 3,260.88 0.000 RNT Base Rent 3,014.19 3,014.19 3,134.75 3,134.75 3,134.75 3,134.75 3,134.75 3,134.75 3,134.75 3,134.75 3,134.75 3,134.75 37,375.88 0.000 Total Rent For Lease 3,285.93 3,285.93 3,406.49 3,406.49 3,406.49 3,406.49 3,406.49 3,406.49 3,406.49 3,406.49 3,406.49 3,406.49 40,636.76 0.000 742 320A Available 0
742 320B Available 0
742 320C Available 0
742 320D Available 0
742 330 CAROLYN BEHRENS 6/1/2017 5/31/2027
Effective -7/1/2023 800
CAM Common Area Maintenance 159.20 159.20 159.20 159.20 159.20 159.20 159.20 159.20 159.20 159.20 159.20 159.20 1,910.40 0.000 RNT Base Rent 1,872.00 1,872.00 1,872.00 1,872.00 1,872.00 1,872.00 1,872.00 1,872.00 1,872.00 1,872.00 1,872.00 1,946.88 22,538.88 0.000 Total Rent For Lease 2,031.20 2,031.20 2,031.20 2,031.20 2,031.20 2,031.20 2,031.20 2,031.20 2,031.20 2,031.20 2,031.20 2,106.08 24,449.28 0.000 742 ECA Available 905
Yearly Rent Recap
ABR Abated Rent 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -3,633.84 0.00 -3,633.84 CAM Common Area Maintenance 12,716.10 12,716.10 12,716.10 12,716.10 12,716.10 12,716.10 12,716.10 12,716.10 12,716.10 12,716.10 12,716.10 12,716.10 152,593.20 CCA Contra CAM -9,756.62 -9,756.62 -9,756.62 -9,756.62 -9,756.62 -9,756.62 -9,756.62 -9,756.62 -9,756.62 -9,756.62 -9,756.62 -9,756.62 -117,079.44 CON Contra Revenue -45,830.40 -45,830.40 -45,830.40 -45,830.40 -45,830.40 -45,830.40 -45,830.40 -45,830.40 -45,830.40 -45,830.40 -45,830.40 -45,830.40 -549,964.80 RNT Base Rent 105,046.25 107,033.00 107,233.48 107,233.48 107,609.18 107,652.56 107,652.56 107,782.78 107,782.78 107,782.78 107,782.78 108,568.46 1,289,160.09 Total Rent For Year 62,175.33 64,162.08 64,362.56 64,362.56 64,738.26 64,781.64 64,781.64 64,911.86 64,911.86 64,911.86 61,278.02 65,697.54 771,075.21

4.13.a
Packet Pg. 430
Attachment: Proposed FY 2023/2024 Civic Center Budget (3199 : FY 2023/2024 Civic Center Budget)

THE CITY OF LAGUNA HILLS CIVIC CENTER
2023-2024 BUDGET

REVENUE ASSUMPTIONS

TENANT NAME SUITE SQ FT
PREV.

MONTHLY
RENT
LEASE
TERM

LEASE START
DATE
LEASE
END
DATE

BASE RENT

MONTHLY
FIXED
CAM

MONTHLY

NEW RATE
PSF
EFF.

RATE PSF INC RATE PSF
MTHLY

INCREASE
AMOUNT T.I.'S PSF T.I. $$ COMM % COMM $$

RENEWALS/EXPIRATIONS - CURRENT YEAR COST CARRY OVERS
1 Dr. Koorosh Hosn DDS 230 1,098 $3,403.80 60 6/1/2023 5/31/2028 $3,458.70 $227.08 3.15 3.24 3% $3,562.46 $0.00 $0 2.5% $5,344 $0.00 0.00 0.00 0.00 $0.00 $0.00 $0 2.5% $0
TOTALS 1,098 $0 $5,344

TENANT NAME SUITE SQ FT LEASE TERM
LEASE
START
DATE
LEASE
END
DATE
FREE
RENT

BASE RENT

MONTHLY
FIXED
CAM

MONTHLY

NEW RATE
PSF
EFF.

RATE PSF
T.I.'S
PSF T.I. $$ COMM % COMM $$

VACANT LEASE-UP ASSUMPTIONS - BUDGET YEAR
1 Tenant 1 - Remains vacant 2023/2024 250A 205 $750.00 $0.00 $3.66 $10.00 $2,050 5.0% $0 2 Tenant 2 - Berger Harrison Expansion 310 883 49 8/1/2023 8/31/2027 2 mos $1,986.75 $0.00 $2.25 $2.25 $26.00 $22,958 2.5% $2,434 3 Tenant 3 - Remains vacant 2023/2024 205/207 2,343 $0.00 $0 5.0% $0 TOTALS 3,431 $22,958 $2,434

TENANT NAME SUITE SQ FT
PREV.

MONTHLY
RENT
LEASE
TERM

LEASE START
DATE
LEASE
END
DATE

BASE RENT

MONTHLY
FIXED
CAM

MONTHLY

NEW RATE
PSF
EFF.

RATE PSF
T.I.'S
PSF T.I. $$ COMM % COMM $$

TWO OR MORE YEAR RENEWALS/EXPIRATIONS - BUDGET YEAR
1 First American Advisors 304 614 $2.36 36 12/1/2023 11/30/2026 $1,449.04 $122.18 $2.43 $2.43 $0.00 $0 2.5% $1,343 1489.4727 2 Lewellen Accountant 220 1,855 $2.34 24 2/1/2024 1/31/2026 $4,340.70 $431.28 $2.41 $2.41 $0.00 $0 2.5% $2,683 $4,470.92 3 Carno Law Group 260 3,028 $2.52 36 6/1/2024 5/31/2027 $7,630.56 $604.45 $2.60 $2.60 $0.00 $0 2.5% $7,074 $7,859.48 4 NYA LLC 210 1,987 $2.57 36 7/1/2024 6/30/2027 $5,106.59 $396.64 $2.65 $2.65 $0.00 $0 2.5% $4,734 TOTALS 7,484 $0 $15,833

TENANT NAME SUITE SQ FT
PREV.

MONTHLY
RENT
LEASE
TERM

LEASE START
DATE
LEASE
END
DATE

BASE RENT

MONTHLY
FIXED
CAM

MONTHLY

NEW RATE
PSF
EFF.

RATE PSF
T.I.'S
PSF T.I. $$ COMM % COMM $$

ONE YEAR RENEWALS/EXPIRATIONS - BUDGET YEAR
1 James R. Ferrara 250B 155 $3.87 12 9/1/2023 8/31/2024 $600.00 $0.00 $3.99 $3.99 $0.00 $0 2.5% $185 $617.85 2 Alan & Domarina 250C 140 $4.29 12 9/1/2023 8/31/2024 $600.00 $0.00 $4.42 $4.42 $0.00 $0 2.5% $186 $618.62 3 John A. Rosenbaum 250D 205 $3.41 12 9/1/2023 8/31/2024 $700.00 $0.00 $3.51 $3.51 $0.00 $0 2.5% $216 $720.02 4 Alan Pace 250E 295 $2.71 12 9/1/2023 8/31/2024 $800.00 $0.00 $2.79 $2.79 $0.00 $0 2.5% $247 $823.43 TOTALS 795 $0 $834
ONE YEAR TI & LC TOTALS $0 $834
TWO OR MORE YEAR TI & LC TOTAL $22,958 $24,445 $25,279
NEW DRAFT LHC 2023-2024 Fiscal YR Budget.xlsx
ESSEX REALTY MANAGEMENT, INC.
6/7/2023

4.13.a
Packet Pg. 431 Attachment: Proposed FY 2023/2024 Civic Center Budget (3199 : FY 2023/2024 Civic Center Budget)

THE CITY OF LAGUNA HILLS CIVIC CENTER
2023-2024 BUDGET

EXPENSE ASSUMPTIONS
* Blue indicates areas where data is entered.

CURRENT

CATEGORY VENDOR COMMENTS RECURRING ANNUAL

SECURITY
5121 Security - Fire Alarms SSD/Fire Safety First 1) Fire Alarm Monitoring $240/billed quarterly (Jul/Oct/Jan/Apr).
2) Annual Fire Alarm testing $1,275/May.
3) Portion of the SSD Security system monitoring
and Maintenance Contract $115/Mo
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,615 Yr. $3,615 Total Security $3,615

CLEANING
$ /psf/mo Avg Occ
5130 Cleaning Contract Able July - December rate will be $0.1095 per occupied sf. New amount per minimum wage
increase in January - June will be $0.1117
$0.112 95.0% $65,463 Yr. $65,463
Hrly Rate Hrs/day Days/wk (52 weeks/12)
5150 Additional Cleaning Merchants 1) Contract amount for dayporter. Contract amount $4,175 per month from July-December
2023. Increase Jan-June 2024, $4,298.
2)Additional payment $100 in December.
$24.49 8.0 5.0 $50,938 Yr. $50,938
$ /psf/mo Avg Occ
5160 Cleaning Supply Able Contract to be billed based on usage. Estimate of $868/mo based on .0135 psf for budget purposes.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0.018 95.0% $10,393 Yr. $10,393 5180 Window Cleaning HSG 1) Annual Interior Window Cleaning $1,303/May 24'
2) Semi-Annual Exterior Window Cleaning w/
Boom Lift $2,498/November 23' and May 24'.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $6,299 Yr. $6,299 Total Cleaning $133,093

MANAGEMENT
Fee % Minimum
5305 Management Fee Essex Realty Mgmt 3.75% of gross rev. w/min. of $2,300/mo. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.75% 4,278 Yr. . . . . . . . . . . . . . . . . $51,336 Note: Fee calculated in Foresight ** $51,336
NEW DRAFT LHC 2023-2024 Fiscal YR Budget.xlsx
ESSEX REALTY MANAGEMENT, INC.
6/9/2023

4.13.a
Packet Pg. 432 Attachment: Proposed FY 2023/2024 Civic Center Budget (3199 : FY 2023/2024 Civic Center Budget)

THE CITY OF LAGUNA HILLS CIVIC CENTER
2023-2024 BUDGET

EXPENSE ASSUMPTIONS
* Blue indicates areas where data is entered.

CURRENT

CATEGORY VENDOR COMMENTS RECURRING ANNUAL
HVAC
5410 HVAC Contract Services Air Control Systems/ Cox
Communications
1) Contract amount of $3,433/qtr
(August/Nov/Feb/June); including chemical
treatments and annual condenser coil cleaning.
2) DSL line for EMS systems $95/per mo
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $14,872 Yr $14,872 5415 HVAC Repairs & Maint. Air Control Systems 1) $3,000 budgeted monthly as a contingency for repairs and addl. Maintenance.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $36,000 Yr $36,000 Total HVAC . $50,872

ELEVATOR
5435 Elevator Contract Svcs. Amtech/AT&T 1) Contract amount of $1,788/qtr. for August, November. $1,878/qtr. for Feb, May
2) Permits $250 annually.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $7,582 Yr. $7,582 5440 Elevator Repair/Maint. Amtech Contingency for repairs $750/bi-annual. for any incidental overtime calls. Annual testing on
elevator state#134183, $1,600.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,100 Yr. $3,100 Total Elevator $10,682

REPAIR & MAINTENANCE
5445 Waterproofing & Roofing Gale Force Property Maint. | Ramon Total Roofing
1) Contract amount of $2,495/Ann'l (November)
for gutter & roof cleaning.
2) Contingency for roofing repairs. $9,000 (Dec.

Jan, and February).
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $11,495 Yr. $11,495 5448 Fire, Life, Safety - Fire
Extinguisher Service
Fire Safety First 1) Annual Fire extinguishers service $240 including (4) 6-year maintenance service in
September. 2) Contingency for the fire
extinguisher repair, $375. 3) quarterly Fire
Sprinkler Inspection ($225 July/October/Jan).

Plus, one annual ($525 April annual test). 4)
Contingency for Sprinkler Deficiency Repairs
$3,500 in May after the annual test (title 19 5-
year completed in 02.2023).
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $5,315 Yr. $5,315 5450 Painting - Maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . Contingency for touch-up painting $150/Quarterly.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $600 Yr. $600 5460 Plumbing Repairs/Supplies . . . . . . . . . . . . . . . . . . . . . . . . . . Contingency for repairs $750/Mo. Due to sewer pipe leaks/blockages.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $9,000 Yr. $9,000 5465 Electrical Repairs & Maint . . . . . . . . . . . . . . . . . . . . . . . . . . Contingency for electrical repairs $300/Qtr. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $300 Qtr $1,200 5475 Doors & Locks Vortex Doors 1) Bi-Ann'l ADA Compliance Maint $600/Bi Annlly
2)Contingency for repair $150/Mo.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,000 Yr. $3,000 NEW DRAFT LHC 2023-2024 Fiscal YR Budget.xlsx
ESSEX REALTY MANAGEMENT, INC.
6/9/2023

4.13.a
Packet Pg. 433 Attachment: Proposed FY 2023/2024 Civic Center Budget (3199 : FY 2023/2024 Civic Center Budget)

THE CITY OF LAGUNA HILLS CIVIC CENTER
2023-2024 BUDGET

EXPENSE ASSUMPTIONS
* Blue indicates areas where data is entered.

CURRENT

CATEGORY VENDOR COMMENTS RECURRING ANNUAL
5480 Signs Repair & Maint. . . . . . . . . . . . . . . . . . . . . . . . . . . Contingency for building/parking signage $50/Qtrly
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $200 Yr. $200 5485 Flooring Repairs & Maint. MasterCare 1) $6,000 Annual cleaning/sealing of stone flooring throughout the lobby, 1st-2nd FL, and
City Planning Dept. (6) restrooms including stair
polishing.
3) $945/4x's per year (Jul, Oct, Jan, Apr) for
corridor carpet cleaning.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $9,780 Yr. $9,780 5490 Pest Control Skyline Pest Monthly contract amount of $94/mo. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,128 Yr. $1,128 5491 Misc. Repairs & Maint. Stoddards Wood
Restoration
1) $2,485/qtr (Aug, Nov, Feb, May), for common
area wood maintenance and repair.
2) $500/month budgeted as contingency.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $15,940 Yr. $15,940 5495 Onsite Maint. Paragon Building Services Monthly contract amount of $49/hr; 5% increase in October 23, $51.21; mileage, uniform, and
cellular expense.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $33,924 Yr. $33,924 Total R & M $91,582

UTILITIES
5499 Electricity - General Southern California Edison Based on prior year averages. July - Oct $19,864, and Nov-June $8,688.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $148,960 Yr. $148,960 5500 Gas Southern Cal. Gas Co. $27/mo. July-Nov, and $650/mo Dec-Jun . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,685 Yr. $4,685 5502 Water & Sewer El Toro Water Dist. Budgeted decrease due to El Toro Water district adjusting our usage square footage.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $19,390 Yr. $19,390 5503 Refuse Removal N/A Building does not pay due to public entity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0 Mo $0 5504 Telephone AT&T/ ATT Corp 1) $150/mo for phone lines (458-7292, 458-7929).
(583-7765).
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $150 Mo. $1,800 Total Utilities $174,835

PARKING LOT
5510 Pkg Lot - Lighting Shine Illumination 1) Palm tree lighting in half in Nov. $2,200 and the other half in Feb. $2,200.
2) Contingency for repairs $50/Mo. (All LED)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $5,000 Yr. $5,000 5525 Pkg Lot - Sweeping TSCM Monthly contract amount of $265/mo. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,180 Mo. $3,180 Total Parking Lot $8,180
NEW DRAFT LHC 2023-2024 Fiscal YR Budget.xlsx
ESSEX REALTY MANAGEMENT, INC.
6/9/2023

4.13.a
Packet Pg. 434 Attachment: Proposed FY 2023/2024 Civic Center Budget (3199 : FY 2023/2024 Civic Center Budget)

THE CITY OF LAGUNA HILLS CIVIC CENTER
2023-2024 BUDGET

EXPENSE ASSUMPTIONS
* Blue indicates areas where data is entered.

CURRENT

CATEGORY VENDOR COMMENTS RECURRING ANNUAL

LANDSCAPING
5560 Landscaping - Exterior Nieves Landscaping Monthly contract amount of $2,400/Mo. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,400 Mo. $28,800 5561 Landscaping - Other Nieves Landscaping Included in Monthly contract . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0 Yr. $0 5562 Landscaping - Interior Living Interior 1) Monthly contract amount of $360 2) Poinsettias for Dec. $115
3) Contingency for replacements $20/Mo.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,675 Mo. $4,675 5565 Fountain Maintenance Aquatico 1) Monthly contract amount of $195/Mo. 2) Contingency for repairs $100/Mo.
3) Bi-Ann'l acid wash in July & January $250/BiAnn'l
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,040 Yr. $4,040 Total Landscaping $37,515

INSURANCE
5805 Insurance - Property ERMAC & Alliant Liability, Property, and Earthquake with Admin fee included; City will join Joint Powers
Insurance Authority effective July 1, 2023,
resulting in savings.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $125,000 Yr. $125,000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0 Yr. $0 Total Insurance $125,000
TAXES
Parcel number Address of Parcel
Assessed
Value Tax Rate
Numerous Parcel #s Broken down by each suite . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 0.00% $0 Bi -Ann. $0 Based on prior year. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 0.00% $0 Bi -Ann. $0 Based on 22/23 Actuals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 0.00% $8,754 Ann. $8,754 Began billing secured tax bills for each suite 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 0.00% $0 Bi -Ann. $0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 0.00% $0 Bi -Ann. $0 6205 Real Estate Taxes 0 0.00% $8,754 Ann. $8,754
Total Taxes $8,754
TOTAL OPERATING EXPENSES $695,464
Estimate only
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

NEW DRAFT LHC 2023-2024 Fiscal YR Budget.xlsx
ESSEX REALTY MANAGEMENT, INC.
6/9/2023

4.13.a
Packet Pg. 435 Attachment: Proposed FY 2023/2024 Civic Center Budget (3199 : FY 2023/2024 Civic Center Budget)

THE CITY OF LAGUNA HILLS CIVIC CENTER
2023-2024 BUDGET

EXPENSE ASSUMPTIONS
* Blue indicates areas where data is entered.

CURRENT

CATEGORY VENDOR COMMENTS RECURRING ANNUAL

INDIRECT OPERATING EXPENSES
7305 Advertising & Promotion . . . . . . . . . . . . . . . . . . . . . . . . . . 1) Holiday interior décor install in Nov. $2,100 2) Tenant appreciation in Dec. $1,575
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,675 Yr. $3,675 7310 Legal Fees . . . . . . . . . . . . . . . . . . . . . . . . . . Contingency for legal council review $150/Quarterly.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $50 Mo. $600 7320 Admin & Professional Exp . . . . . . . . . . . . . . . . . . . . . . . . . . 1) Contingency amount $50/Mo. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $600 Yr. $600 7326 Environmental Expense County of Orange Paid in August . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $224 Yr. $224 7330 Tenant Space Refurb . . . . . . . . . . . . . . . . . . . . . . . . . . Contingency for minor vacant suite repairs prior to new tenant leasing $900/Quaterly.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $900 Qtr. $3,600 7333 Repairs & Maint. Indirect Dixie Diesel
SSD Alarm
Millenium Alarm Systems
Stoddards
Contract for generator maintenance. The
generator only serves the City space.
1) Generator load bank test in Nov. $1,000
2) Generator bi-annual service & inspection billed
annually in Oct $1,416.58.
3) SSD Alarm monitoring & Maint $355/Mo.
4) Annual camera maintenance in Oct $3,400
5) Wood restoration, city offices in
(Sept/Nov/Feb/May) $2,485/Qtr.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $20,017 Yr. $20,017 TOTAL INDIRECT EXPENSES $28,716

CAPITAL
1230 Capital Improvements Item Comments Month
1 Roof Replacement Roof Replacement August $113,080 Yr. $113,080 2 (2) WHSP Unit Replacement 2.5 ton water heat source pump September | March $28,000 Yr. $28,000 3 Termite Treatment Termite Treatment November $107,400 Yr. $107,400 4 Asphalt Seal Coat and Stripe Asphalt Seal Coat and Stripe August $25,000 Yr. $25,000 5 Build Out Suite 250 Build Out of Suite 205 February $250,000 Yr. $250,000 6 Exterior Half Wall Paint and Repair Estimated Cost for Exterior half wall repair May $14,500 Yr. $14,500 Total Capital Improvements $537,980
1240 Tenant Improvements * Amounts from Revenue Assumption Worksheet * . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1260 Leasing Commissions * Amounts from Revenue Assumption Worksheet * . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $22,958.00
$24,444.59
NEW DRAFT LHC 2023-2024 Fiscal YR Budget.xlsx
ESSEX REALTY MANAGEMENT, INC.
6/9/2023

4.13.a
Packet Pg. 436
Attachment: Proposed FY 2023/2024 Civic Center Budget (3199 : FY 2023/2024 Civic Center Budget) Page: 1
Date:

Time:

Database:

Suite Lease Name
Square
Feet
ReportID:

Workbook:

Type:

Entity:
6/7/2023
7:26 PM

ESSEXREALTY

CITY OF LAGUNA HILLS
From 07/23 to 06/24
07/23 08/23 09/23 10/23 11/23 12/23 01/24 02/24 03/24 04/24 05/24 06/24 BF_OCCVAC
Rent Start End Date
Occupancy Vacancy Report
2702
742 - STD_Rev - 742

GROSS LEASEABLE AREA
Physical

CITY OF LAGUNA HILLS
000 Vacant 552 552 552 552 552 552 552 552 552 552 552 552 552 100 CITY OF LAGUNA HILLS 21,033 7/1/2004 12/31/2099 21,033 21,033 21,033 21,033 21,033 21,033 21,033 21,033 21,033 21,033 21,033 21,033 130 BANC OF CALIFORNIA 2,394 11/1/2015 10/31/2025 2,394 2,394 2,394 2,394 2,394 2,394 2,394 2,394 2,394 2,394 2,394 2,394 150 THE COUNTY OF ORANGE 1,769 2/1/2006 5/31/2032 1,769 1,769 1,769 1,769 1,769 1,769 1,769 1,769 1,769 1,769 1,769 1,769 160 THE COUNTY OF ORANGE 2,697 6/1/2022 5/31/2032 2,697 2,697 2,697 2,697 2,697 2,697 2,697 2,697 2,697 2,697 2,697 2,697 200 BERGER HARRISON APC 1,568 6/1/2022 8/31/2027 1,568 1,568 1,568 1,568 1,568 1,568 1,568 1,568 1,568 1,568 1,568 1,568 201 SENATE RULES COMMITTEE 1,274 5/16/2015 6/30/2024 1,274 1,274 1,274 1,274 1,274 1,274 1,274 1,274 1,274 1,274 1,274 1,274 203 PREMIER GROUP INTERNATIONAL1,377 2/1/2019 4/30/2025 1,377 1,377 1,377 1,377 1,377 1,377 1,377 1,377 1,377 1,377 1,377 1,377 205 Vacant 709 709 709 709 709 709 709 709 709 709 709 709 709 207 Vacant 1,634 1,634 1,634 1,634 1,634 1,634 1,634 1,634 1,634 1,634 1,634 1,634 1,634 210 NYA LLC 1,987 7/1/2019 6/30/2024 1,987 1,987 1,987 1,987 1,987 1,987 1,987 1,987 1,987 1,987 1,987 1,987 220 LEWELLEN ACCOUNTANCY CORP.1,855 10/1/2013 1/31/2026 1,855 1,855 1,855 1,855 1,855 1,855 1,855 1,855 1,855 1,855 1,855 1,855 230 DR. KOOROSH HOSN DDS 1,098 3/1/2000 6/30/2024 1,098 1,098 1,098 1,098 1,098 1,098 1,098 1,098 1,098 1,098 1,098 1,098 250A Vacant 205 205 205 205 205 205 205 205 205 205 205 205 205 250B JAMES R. FERRARA 155 9/1/2022 8/31/2024 155 155 155 155 155 155 155 155 155 155 155 155 250C ALAN & DOMARINA PACE 140 9/1/2022 8/31/2024 140 140 140 140 140 140 140 140 140 140 140 140 250D JOHN A ROSENBAUM 205 9/1/2022 8/31/2024 205 205 205 205 205 205 205 205 205 205 205 205 250E ALAN PACE 295 9/1/2022 8/31/2024 295 295 295 295 295 295 295 295 295 295 295 295 255 Vacant 566 566 566 566 566 566 566 566 566 566 566 566 566 260 CARNO LAW GROUP 3,028 3/1/2019 5/31/2027 3,028 3,028 3,028 3,028 3,028 3,028 3,028 3,028 3,028 3,028 3,028 3,028 300 Vacant 672 672 672 672 672 672 672 672 672 672 672 672 672 301 FAY BLIX 2,312 9/1/2012 10/31/2024 2,312 2,312 2,312 2,312 2,312 2,312 2,312 2,312 2,312 2,312 2,312 2,312 304 FIRST AMERICAN ADVISORS INC 614 12/1/2017 11/30/2026 614 614 614 614 614 614 614 614 614 614 614 614 310 Vacant 883 883 0 0 0 0 0 0 0 0 0 0 0
310 Berger Harrison Expansion 883 8/1/2023 8/31/2027 0 883 883 883 883 883 883 883 883 883 883 883 320 DAYLE MCINTOSH CENTER 1,218 12/21/2014 8/31/2024 1,218 1,218 1,218 1,218 1,218 1,218 1,218 1,218 1,218 1,218 1,218 1,218 330 CAROLYN BEHRENS 800 6/1/2017 5/31/2027 800 800 800 800 800 800 800 800 800 800 800 800 ECA Vacant 905 905 905 905 905 905 905 905 905 905 905 905 905 45,819 46,702 46,702 46,702 46,702 46,702 46,702 46,702 46,702 46,702 46,702 46,702

88.21% 89.91% 89.91% 89.91% 89.91% 89.91% 89.91% 89.91% 89.91% 89.91% 89.91% 89.91% Occupied SF
Occupancy %
Vacant 6,126 5,243 5,243 5,243 5,243 5,243 5,243 5,243 5,243 5,243 5,243 5,243 Total SF 51,945 51,945 51,945 51,945 51,945 51,945 51,945 51,945 51,945 51,945 51,945 51,945

4.13.a
Packet Pg. 437
Attachment: Proposed FY 2023/2024 Civic Center Budget (3199 : FY 2023/2024 Civic Center Budget) City of Laguna Hills
City Council/Planning Agency
Staff Report
DATE: June 27, 2023
TO: Mayor and Council Members
FROM: Jarad Hildenbrand
City Manager
ISSUE: Approval of Fiscal Year 2023/24 Law Enforcement Services Agreement with the County of Orange
RECOMMENDATION: That the City Council approve the fiscal year 2023/24 Law Enforcement Services Agreement between the County of Orange and the City of Laguna Hills and authorize the Mayor to execute the Agreement.

SUMMARY:

The proposed fiscal year 2023/24 Law Enforcement Services Agreement with the County of Orange maintains existing services levels and provides the City with a police services complement of 26.33 full-time equivalent employees, including shared staffing with the cities of Laguna Woods and Aliso Viejo. The total cost of the Agreement is $9,650,384, representing a reduction of $92,118, or 0.95 percent, from the previous fiscal year. Staff recommends the City Council approve the Agreement and authorize the Mayor to execute the Agreement.

At the June 13 and June 20 Budget Workshops, the City Council voted to enhance services levels by adding one Deputy, one Community Services Officer, and by converting one Deputy to a Motor and the Crime Prevention Specialist to an Emergency Management Program Coordinator. The County of Orange is preparing a First Amendment to the proposed Agreement, which will subsequently be brought back to the City Council for final approval.

4.14 Packet Pg. 438
Law Enforcement Services Agreement for FY 23/24
June 27, 2023

BACKGROUND:

The City of Laguna Hills requires the services of personnel equipped to provide public safety and general law enforcement within the City including patrol services, traffic and parking enforcement and criminal investigations. The Orange County Sheriff-Coroner Department has provided Law Enforcement Services to the City since incorporation. The City Council reviewed proposed service levels and associated costs for law enforcement services for fiscal year 2023/24 at the March 28, May 23, June 13, and June 20, 2023, Budget Workshops and explored options that provide the most appropriate service level while maintaining cost effectiveness. The agreement before you tonight maintains existing service levels from the prior fiscal year, but there are proposed changes in law enforcement services and staffing levels as directed by the City Council at the June 13 and June 20 Budget Workshops. The enhanced service level recommendations include the addition of one full-time Deputy Sheriff (DSII – Patrol) position and one full-time Community Services Officer (CSO) position as well as the conversions of one Crime Prevention Specialist (CPS) to one Emergency Management Program Coordinator and one Deputy Sheriff (Patrol) to one Deputy Sheriff (Motor). These service level enhancements will subsequently be made through a First Amendment.

The proposed agreement includes the below listed "Staffing Levels" positions with additional information and costs outlined on the fiscal year 2023/24 Law Enforcement Services Worksheet, included as Attachment A. The proposed agreement for law enforcement services for fiscal year 2023/24 is estimated at $9,650,384 (no salary and benefit increases included), with a decrease of $92,118 (-0.95%) from this year's original agreement of $9,742,502.

The proposed agreement for law enforcement services for fiscal year 2023/24 includes the Regional / Shared positions in the Traffic Bureau, Auto Theft Detail, Subpoena Specialist and Court Liaisons, as well as the direct purchase positions noted on the "Staffing Levels" table below. City staff, however, has included an additional estimated amount in the proposed fiscal year 2023/24 budget. This increase is an estimation of service level enhancements and potential salary and benefit increases from ongoing negotiations which are pending approval by the County Board of Supervisors with labor unions including, the Association of Orange County Deputy Sheriffs (AOCDS), the Association of County Law Enforcement Managers (ACLEM), the Orange County Managers Association (OCMA), and the Orange County Employees Association (OCEA).

4.14 Packet Pg. 439
Law Enforcement Services Agreement for FY 23/24
June 27, 2023

Staffing Levels
#
Existing Positions
(Proposed Agreement)
1 Captain (Chief of Police Services)
1 Administrative Sergeant

1.33 Patrol Sergeant
2 Investigator
16 Deputies
1 Deputy – Motor
1 Deputy – School Resource Officer
2 Community Services Officer
1 Crime Prevention Specialist

26.33 Total Staff
FISCAL IMPACT:

The fiscal year 2023/24 estimated Operating Budget is $11,281,109, which includes $9,650,384 for the law enforcement agreement with the County of Orange, an estimated amount for pending labor negotiations, and an estimated amount for service level enhancements as direct by the City Council on June 13 and June 20. Staff will bring forward the First Amendment to include the additional positions and conversions once it has been prepared and finalized by the County.

ATTACHMENTS:
• FY 2023/2024 Final Estimate Contract Detail
• Proposed Law Enforcement Services Agreement with OCSD for FY 2023/2024

4.14 Packet Pg. 440
Share: Four (4) Sergeants with AV, LW ( 1/3 AV, 1/3 LH, 1/3 LW)

DIRECT PURCHASE SERVICES & COUNTY
NO POSITIONS SALARY OVERTIME BENEFITS POST PAY SUPPLIES TRANSP. DEPT. OH DIV. OH TRAINING OH OTHER REVENUE TOTAL 1 Captain 201,059 0 182,992 0 6,750 0 9,240 25,430 4,525 3,760 0 0 433,756 1 Administrative Sergeant 151,382 0 141,490 13,984 6,750 0 9,240 29,170 4,525 3,092 0 0 359,633

1.33 Patrol Sergeant 201,338 0 188,181 18,599 8,978 0 12,289 38,796 6,018 4,112 0 0 478,311 2 Investigator 267,156 0 253,930 23,536 13,500 0 18,480 119,154 9,050 5,436 0 0 710,242 16 DS II Patrol 1,952,544 0 1,853,376 119,872 108,000 0 147,840 495,968 72,400 38,752 0 0 4,788,752 1 DS II Motorcycle 125,034 0 117,643 7,492 6,750 0 9,240 30,998 4,525 2,478 0 0 304,160 1 DS II - School Resource Officer 122,034 0 115,836 7,492 6,750 0 9,240 30,998 4,525 2,422 0 0 299,297

23.33 Subtotal Safety $3,020,547 $0 $2,853,448 $190,975 $157,478 $0 $215,569 $770,514 $105,568 $60,052 $0 $0 $7,374,151 2 Community Services Officer 114,816 0 81,284 0 13,500 0 18,480 58,340 0 2,148 0 0 288,568 1 Crime Prevention Specialist 59,176 0 38,377 0 6,750 0 9,240 2,005 0 1,107 0 0 116,655 0 3 Subtotal Professional $173,992 $0 $119,661 $0 $20,250 $0 $27,720 $60,345 $0 $3,255 $0 $0 $405,223

26.33 TOTAL STAFF $3,194,539 $0 $2,973,109 $190,975 $177,728 $0 $243,289 $830,859 $105,568 $63,307 $0 $0 $7,779,374

REGIONAL / SHARED STAFF

0.6 Traffic - Sergeant 8.60% 10,727 1,146 8,959 721 407 258 477 810 233 236 0 0 23,974 4 Traffic - Deputy Sheriff II 8.60% 49,149 8,119 44,059 2,576 2,712 8,095 3,177 5,402 1,556 1,119 0 0 125,964 2 Traffic - Investigative Assistant 8.60% 12,019 0 9,852 0 1,334 0 1,589 2,024 0 225 0 0 27,043 1 Traffic - Office Specialist 8.60% 4,849 34 3,082 0 667 0 794 1,012 0 91 0 0 10,529

0.3 Auto Theft - Sergeant 8.12% 5,067 541 4,232 341 168 122 225 382 110 111 0 0 11,299 2 Auto Theft - Investigator 8.12% 22,948 2,442 21,179 1,911 1,117 815 1,501 2,548 735 510 0 0 55,706 1 Auto Theft - Investigative Assistant 8.12% 5,601 229 4,674 0 548 0 750 954 0 109 0 0 12,865 1 Auto Theft - Office Specialist 8.12% 4,470 0 2,887 0 548 0 750 954 0 84 0 0 9,693 1 DET Sergeant 5.61% 8,738 1,841 8,122 784 343 0 518 2,726 254 207 0 0 23,533 1 DET Investigator 5.61% 7,812 1,978 7,344 660 343 0 518 2,726 254 190 0 0 21,825 2 Courts - Investigative Assistant 10.89% 15,192 483 12,578 0 1,470 0 2,012 437 0 293 0 0 32,465 1 Motorcycle Sergeant + MDC 3.77% 6,001 410 5,590 528 368 650 349 593 171 138 450 0 15,248

16.90 Subtotal $152,573 $17,223 $132,558 $7,521 $10,025 $9,940 $12,660 $20,568 $3,313 $3,313 $450 $0 $370,144

CITY OF LAGUNA HILLS
FISCAL YEAR 2023-24

SALARIES & EMPLOYEE BENEFITS INDIRECT COSTS
FINAL
May 25, 2023
Laguna Hills FY 2023-24 Spreadsheets/FINAL FY 23-24 Page 1 of 2

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Attachment: FY 2023/2024 Final Estimate Contract Detail (3197 : Law Enforcement Services Agreement Share: Four (4) Sergeants with AV, LW ( 1/3 AV, 1/3 LH, 1/3 LW)

CITY OF LAGUNA HILLS
FISCAL YEAR 2023-24

SALARIES & EMPLOYEE BENEFITS INDIRECT COSTS
FINAL
May 25, 2023

ADDITIONAL SERVICES & COUNTY
NO COSTS/REVENUE SALARY OVERTIME BENEFITS POST PAY SUPPLIES TRANSP. DEPT. OH DIV. OH TRAINING OH OTHER REVENUE TOTAL Overtime 623,741 45,534 11,664 680,939
Estimate: Vacancy Credit (301,003) (301,003)
Annual Leave (Pay Downs & Termination Pay) 118,229 118,229 AB109 (2011 Public Safety Realignment) (6,016) (6,016)
Body Worn Cameras (BWC) and In Car Video (ICV) Costs 169,879 169,879 Contract Administration 29,042 29,042
Data Line 5,766 5,766
E-Citation Acquisition 0
4 E-Citation 8,885 8,885
Enhanced Helicopter Response Services 21,926 21,926
Facility Lease 52,298 52,298
Holiday Pay: Comp & Straight Time 118,769 118,769
Integrated Law & Justice Agency of Orange County 2,972 2,972 Mobile Data Computers (MDC) - Acquisition 0

20.33 Mobile Data Computers (MDC) - Recurring Costs 68,943 68,943 Motorcycle Cost (BMW Road Version) 0
Patrol Training Cost Allocation (FTB) 109,626 109,626
Premium Pay 109,643 109,643
Retirement Rate Discount (Expenses for Interest and Issuance) 0 Retirement Rate Discount (Gross) 0
Revenue/False Alarms (13,527) (13,527)
Revenue/Training Reimbursement 0
Revenue/Restitution Reimbursement (1,524) (1,524)
Services & Supplies 50,431 50,431
Transportation - Vehicle Fuel, Mileage Interest and Maint., etc. 275,588 275,588 Subtotal $0 $623,741 $45,534 $0 $108,495 $297,514 $0 $0 $109,626 $11,664 $325,359 ($21,067) $1,500,866 $3,347,112 $640,964 $3,151,201 $198,496 $296,248 $307,454 $255,949 $851,427 $218,507 $78,284 $325,809 ($21,067) $9,650,384 FY 2022-23 - FINAL CONTRACT TOTAL $3,382,650 $650,274 $3,213,803 $221,740 $265,394 $286,325 $230,293 $804,849 $221,062 $85,093 $395,422 ($14,403) $9,742,502 -1.05% -1.43% -1.95% -10.48% 11.63% 7.38% 11.14% 5.79% -1.16% -8.00% -17.60% 46.27% -0.95% ($35,538) ($9,310) ($62,602) ($23,244) $30,854 $21,129 $25,656 $46,578 ($2,555) ($6,809) ($69,613) ($6,664) ($92,118) FY 2023-24 - FINAL CONTRACT TOTAL
Laguna Hills FY 2023-24 Spreadsheets/FINAL FY 23-24 Page 2 of 2

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Attachment: FY 2023/2024 Final Estimate Contract Detail (3197 : Law Enforcement Services Agreement

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31 AGREEMENT

BETWEEN THE

CITY OF LAGUNA HILLS

AND THE

COUNTY OF ORANGE
THIS AGREEMENT is entered into this First day of June 2023, which date is enumerated for purposes of reference only, by and between the CITY OF LAGUNA HILLS, hereinafter referred to as “CITY”, and the COUNTY OF ORANGE, a political subdivision of the State of California, hereinafter referred to as “COUNTY”.

WITNESSETH:

WHEREAS, CITY wishes to contract with COUNTY for law enforcement services; and
WHEREAS, COUNTY is agreeable to the rendering of such services, as authorized in Government Code Sections 51301 and 55632, on the terms and conditions hereinafter set forth,
NOW, THEREFORE, IT IS MUTUALLY AGREED AS FOLLOWS:
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Packet Pg. 443 Attachment: Proposed Law Enforcement Services Agreement with OCSD for FY 2023/2024 (3197 : Law Enforcement Services Agreement for FY

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31 TABLE OF CONTENTS

SECTION PAGE
A. TERM.……………………………………………………………………………3
B. OPTIONAL TERMINATION OR EXTENSION..........................................3 C. REGULAR SERVICES BY COUNTY. ......................................................3 D. ENHANCED AND SUPPLEMENTAL SERVICES BY COUNTY. .............6 E. BODY WORN CAMERA AND IN CAR VIDEO . .......................................9 F. LICENSING SERVICES BY CITY. .........................................................10 G. PAYMENT. .............................................................................................10 H. NOTICES................................................................................................14 I. STATUS OF COUNTY…........................................................................14 J. STATE AUDIT. .......................................................................................15 K. ALTERATION OF TERMS…. .................................................................15 L. INDEMNIFICATION................................................................................15 M. TRAFFIC VIOLATOR APPREHENSION PROGRAM.............................17 N. MOBILE DATA COMPUTERS…. ...........................................................20 O. E-CITATION UNITS…. ...........................................................................21 SIGNATURE PAGE………............................................................................23 Attachment A: Regular Services by County
Attachment B: City Ordinances
Attachment C: Payment
Attachment D: County Billing Policy
Attachment E: Forfeited and Seized Asset Policy
Attachment F: TVAP Resolution
Attachment G: TVAP Form
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Packet Pg. 444 Attachment: Proposed Law Enforcement Services Agreement with OCSD for FY 2023/2024 (3197 : Law Enforcement Services Agreement for FY

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31 A. TERM:

The term of this Agreement shall commence July 1, 2023 and terminate June 30, 2024 unless earlier terminated by either party or extended in the manner set forth herein.

B. OPTIONAL TERMINATION OR EXTENSION:

1. COUNTY or CITY may terminate this Agreement, without cause, upon one-hundred and eighty (180) days written notice to the other party.

2. If COUNTY and CITY have not entered into a written agreement by June 30, 2024 for COUNTY to provide to CITY, during all or part of the period between July 1, 2024 and June 30, 2025, law enforcement services similar to those specified herein, then SHERIFF, on behalf of COUNTY, and CITY’s Manager, on behalf of CITY, are authorized to execute a written amendment to this Agreement that provides as follows and does not materially alter other terms of the Agreement: SHERIFF shall continue to provide to CITY all or a designated part of the law enforcement services specified herein, for a specified time period between July 1, 2024 and August 31, 2024 and CITY shall pay COUNTY the full costs of providing such services. Such full costs may be greater than those listed herein for the period July 1, 2023 through June 30, 2024. SHERIFF and CITY Manager shall file copies of any such amendments to this Agreement with the Clerk of COUNTY’s Board of Supervisors and CITY’s Clerk.

C. REGULAR SERVICES BY COUNTY:

1. COUNTY, through its Sheriff-Coroner and deputies, officers and employees, hereinafter referred to as “SHERIFF”, shall render to CITY law enforcement services as hereinafter provided. Such services shall include the enforcement of lawful State statutes and lawful municipal ordinances of CITY other than licensing ordinances.
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Packet Pg. 445 Attachment: Proposed Law Enforcement Services Agreement with OCSD for FY 2023/2024 (3197 : Law Enforcement Services Agreement for FY

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31 C. REGULAR SERVICES BY COUNTY: (Continued)

2. The night, day and evening patrol and supervisory shifts will be established by SHERIFF. Personnel of each shift may work varying and different times and may be deployed to other shifts when, in the opinion of SHERIFF and CITY Manager, the need arises. Any long-term shift deployment change will be reported to CITY’s Council.

3. The level of service, other than for licensing, to be provided by the COUNTY for the period July 1, 2023 through June 30, 2024, is set forth in Attachment A.

4. For any service listed in Attachment A of this Agreement that is provided to CITY at less than 100% of a full-time SHERIFF position, COUNTY retains the option to terminate such service in the event the other city or cities that contract for the balance of the time of the employee providing the service no longer pay(s) for such service and CITY does not request the Agreement be amended to pay 100% of the cost of the employee providing such service.

The Maximum Obligation of CITY set forth in Subsection G-2 will be adjusted accordingly.

5. All services contracted for in this Agreement may not be operational on the precise date specified in this Agreement. In those instances, SHERIFF shall notify CITY Manager of the date or dates such service or services are to be implemented. COUNTY shall reduce the monthly charges to CITY, based on the actual date of implementation of the service or services.

Charges shall be reduced on the next monthly billing tendered in accordance with Subsection G-3 of this Agreement.
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Packet Pg. 446 Attachment: Proposed Law Enforcement Services Agreement with OCSD for FY 2023/2024 (3197 : Law Enforcement Services Agreement for FY

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31 C. REGULAR SERVICES BY COUNTY: (Continued)

6. During emergencies, such as mutual aid situations, SHERIFF will attempt to leave in CITY the Captain in charge of CITY Police Services. If SHERIFF determines that the Captain is needed elsewhere, SHERIFF will notify CITY’s Manager within four (4) hours. SHERIFF will return Captain to CITY as soon as possible once the emergency situation is under control.

7. With respect to the licensing ordinances of CITY listed in Attachment B, SHERIFF shall receive applications for CITY licenses pursuant to said ordinances and complete investigations relating to such applications. Said investigations shall be forwarded to CITY Manager. COUNTY shall not provide any advisory, administrative, hearing or litigation attorney support or services related to licensing. COUNTY shall not provide any administrative or investigatory services related to the licensing ordinances listed in Attachment B, except the investigations relating to initial applications for which this subsection provides.

8. With the limitations set forth below, SHERIFF, on behalf of COUNTY, and CITY Manager, on behalf of CITY, are authorized to execute written amendments to this Agreement to increase or decrease the level of service set forth in Attachment A, when SHERIFF and CITY Manager mutually agree that such increase or decrease in the level of service is appropriate.

Any such amendment to the Agreement shall concomitantly increase or decrease the cost of services payable by CITY set forth in Attachment C and the Maximum Obligation of CITY set forth in Subsection G-2, in accordance with the current year’s COUNTY law enforcement cost study.

SHERIFF and CITY Manager shall file copies of any such amendments to this Agreement with the Clerk of COUNTY’s Board of Supervisors and CITY’s Clerk. Except for costs related to Sections G-4a and G-4b, changes to this Agreement executed by SHERIFF and CITY Manager may not, in the

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Packet Pg. 447 Attachment: Proposed Law Enforcement Services Agreement with OCSD for FY 2023/2024 (3197 : Law Enforcement Services Agreement for FY

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31 C. REGULAR SERVICES BY COUNTY: (Continued)
aggregate, increase or decrease the cost of services payable by CITY by more than one percent (1%) of the total cost originally set forth in Attachment C and the Maximum Obligation originally set forth in Subsection G-2.

Except for changes under Sections G-4a and G-4b, prior approval by COUNTY’s Board of Supervisors and CITY’s Council is required before execution of any amendment that brings the aggregate total of changes in costs payable by CITY to more than one percent (1%) of the total cost originally set forth in Attachment C and the Maximum Obligation originally set forth in Subsection G-2 of this Agreement.

D. ENHANCED AND SUPPLEMENTAL SERVICES BY COUNTY:

1. Enhanced services for events on CITY property. At the request of CITY, through its City Manager, SHERIFF may provide enhanced law enforcement services for functions, such as community events, conducted on property that is owned, leased or operated by CITY. SHERIFF shall determine personnel and equipment needed for such enhanced services.

To the extent the services provided at such events are at a level greater than that specified in Attachment A of this Agreement, CITY shall reimburse COUNTY for such additional services, at an amount computed by SHERIFF, based on the current year’s COUNTY law enforcement cost study. The cost of these enhanced services shall be in addition to the Maximum Obligation of CITY set forth in Subsection G-2 of this Agreement.

SHERIFF shall bill CITY immediately after each such event.

2. Supplemental services for occasional events operated by private individuals and entities on non-CITY property. At the request of CITY, through its City Manager, and within the limitations set forth in this Subsection D-2, SHERIFF may provide supplemental law enforcement services to preserve

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Packet Pg. 448 Attachment: Proposed Law Enforcement Services Agreement with OCSD for FY 2023/2024 (3197 : Law Enforcement Services Agreement for FY

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31 D. ENHANCED AND SUPPLEMENTAL SERVICES BY COUNTY: (Continued) the peace at special events or occurrences that occur on an occasional basis and are operated by private individuals or private entities on non-CITY property. SHERIFF shall determine personnel and equipment needed for such supplemental services, and will provide such supplemental services only if SHERIFF is able to do so without reducing the normal and regular ongoing services that SHERIFF otherwise would provide to CITY pursuant to this Agreement. Such supplemental services shall be provided only by regularly appointed full-time peace officers, at rates of pay governed by a Memorandum of Understanding between COUNTY and the bargaining unit representing the peace officers providing the services. Such supplemental services shall include only law enforcement duties and shall not include services authorized to be provided by a private patrol operator, as defined in Section 7582.1 of the Business and Professions Code. Law enforcement support functions, including, but not limited to, clerical functions and forensic science services, may be performed by non-peace officer personnel if the services do not involve patrol or keeping the peace and are incidental to the provision of law enforcement services. CITY shall reimburse COUNTY its full, actual costs of providing such supplemental services at an amount computed by SHERIFF, based on the current year’s COUNTY law enforcement cost study. The cost of these supplemental services shall be in addition to the Maximum Obligation of CITY set forth in Subsection G-2 of this Agreement. SHERIFF shall bill CITY immediately after each such event.

3. Supplemental services for events operated by public entities on non-CITY property. At the request of CITY, through its City Manager, and within the limitations set forth in this Subsection D-3, SHERIFF may provide supplemental law enforcement services to preserve the peace at special

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Packet Pg. 449 Attachment: Proposed Law Enforcement Services Agreement with OCSD for FY 2023/2024 (3197 : Law Enforcement Services Agreement for FY

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31 D. ENHANCED AND SUPPLEMENTAL SERVICES BY COUNTY: (Continued) events or occurrences that occur on an occasional basis and are operated by public entities on non-CITY property. SHERIFF shall determine personnel and equipment needed for such supplemental services, and will provide such supplemental services only if SHERIFF is able to do so without reducing services that SHERIFF otherwise would provide to CITY pursuant to this Agreement. CITY shall reimburse COUNTY its full, actual costs of providing such supplemental services at an amount computed by SHERIFF, based on the current year's COUNTY law enforcement cost study. The cost of these supplemental services shall be in addition to the Maximum Obligation of CITY set forth in Subsection G-2 of this Agreement. SHERIFF shall bill CITY immediately after each such event.

4. Notwithstanding the foregoing, CITY, through its permit process, may utilize the services of the Sheriff at events, for which CITY issues permits, that are operated by private individuals or entities or public entities. SHERIFF shall determine personnel and equipment needed for said events. If said events are in addition to the level of services listed in Attachment A of this Agreement, CITY shall reimburse COUNTY for such additional services at an amount computed by SHERIFF, based upon the current year’s COUNTY law enforcement cost study. The cost of these services shall be in addition to the Maximum Obligation of CITY set forth in Subsection G-2 of this Agreement. Sheriff shall bill City immediately after said services are rendered.

5. In accordance with Government Code Section 51350, COUNTY has adopted Board Resolution 89-1160 which identifies Countywide services, including but not limited to helicopter response. SHERIFF through this contract provides enhanced helicopter response services. The cost of enhanced helicopter response services is included in the cost of services

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31 D. ENHANCED AND SUPPLEMENTAL SERVICES BY COUNTY: (Continued) set forth in Attachment C and in the Maximum Obligation of CITY set forth in Subsection G-2. COUNTY shall not charge any additional amounts for enhanced helicopter services after the cost of services set forth in Attachment C and in the Maximum Obligation set forth in Subsection G-2 has been established without written notification to the CITY.

E. BODY WORN CAMERA AND IN CAR VIDEO:

1. As part of the law enforcement services to be provided to CITY, COUNTY has provided, or will provide, body worn cameras (hereinafter called “BWC”) that will be worn by SHERIFF’S personnel and In Car Video (hereinafter called “ICV”) that will be mounted in vehicles designated by SHERIFF for use within CITY service area.

2. SHERIFF has the exclusive right to use said BWC and ICV for law enforcement services related to this Agreement.

3. CITY shall pay COUNTY the full costs to COUNTY of a) the acquisition of BWC and the acquisition and installation of ICV , and b) recurring costs, as deemed necessary by COUNTY, including the costs of maintenance and contributions to a fund for replacement and upgrade of such BWC and ICV when they become functionally or technologically obsolete.

The costs to be paid by CITY for recurring costs, including maintenance and replacement/upgrade of BWC and ICV, are included in the costs set forth in Attachment C and the Maximum Obligation of CITY set forth in Subsection G-2 of this Agreement unless CITY has already paid such costs. .

4. If, following the initial acquisition of BWC and ICV referenced above, CITY requires BWC and ICV for additional SHERIFF’s personnel or vehicles designated for use in the CITY service area, COUNTY will purchase said additional BWC and ICV. Upon demand by COUNTY, CITY will pay to COUNTY a) the full costs of acquisition and of additional BWC and the full

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31 E. BODY WORN CAMERA AND IN CAR VIDEO: Continued)
cost of acquisition and installation of additional ICV, and b) the full recurring costs for said BWC and ICV, as deemed necessary by COUNTY, including the costs of maintenance, and contributions to a fund for replacement and upgrade of such BWC and ICV when they become functionally or technologically obsolete. Said costs related to additional BWC and ICV are not included in, and are in addition to, the costs set forth in Attachment C and the Maximum Obligation of CITY set forth in Subsection G-2 of this Agreement.

5. County will replace and/or upgrade BWC and ICV as needed. The costs of replacing/upgrading BWC and ICV shall be paid by COUNTY from the replacement/upgrade funds to be paid by CITY in accordance with the foregoing.

F. LICENSING SERVICES BY CITY:

Upon receipt from COUNTY of investigations of applications for licenses referred to in Subsection C-7 of this Agreement, CITY Manager shall determine whether to grant or deny the licenses and will issue the licenses or notify the applicants of denial. CITY shall provide all attorney services related to the granting, denial, revocation and administration of said licenses and the enforcement of CITY ordinances pertaining to said licenses.

G. PAYMENT:

1. Pursuant to Government Code Section 51350, CITY agrees to pay to COUNTY the full costs of performing the services mutually agreed upon in this Agreement. The costs of services include salaries, wages, benefits, mileage, services, supplies, equipment, and divisional, departmental and COUNTY General overhead.
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Packet Pg. 452 Attachment: Proposed Law Enforcement Services Agreement with OCSD for FY 2023/2024 (3197 : Law Enforcement Services Agreement for FY

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31 G. PAYMENT: (Continued)

2. Unless the level of service set forth in Attachment A is increased or decreased by mutual agreement of the parties, or CITY is required to pay for increases as set forth in Subsection G-4, the Maximum Obligation of CITY for services, other than Licensing Services, set forth in Attachment A of this Agreement, to be provided by the COUNTY for the period July 1, 2023 through June 30, 2024, shall be $9,650,384 as set forth in Attachment C.

The overtime costs included in the Agreement are only an estimate.

SHERIFF shall notify CITY of actual overtime worked during each fiscal year. If actual overtime worked is above or below budgeted amounts, billings will be adjusted accordingly at the end of the fiscal year. Actual overtime costs may exceed CITY’s Maximum Obligation.

3. COUNTY shall invoice CITY monthly. During the period July 1, 2023 through June 30, 2024, said invoices will require payment by CITY of onetwelfth (1/12) of the Maximum Obligation of CITY set forth in Subsection G-2 of this Agreement, as said Maximum Obligation may have been increased or decreased pursuant to mutual agreement of the parties. In addition, if a determination is made that increases described in Subsection G-4 must be paid, COUNTY thereafter shall include the pro-rata charges for such increases in its monthly invoices to CITY for the balance of the period between July 1, 2023 and June 30, 2024.
4a.At the time this Agreement is executed, there may be unresolved issues pertaining to potential changes in salaries and benefits for COUNTY employees. The costs of such potential changes are not included in the Fiscal Year 2023-24 cost set forth in Attachment C nor in the Fiscal Year 2023-24 Maximum Obligation of CITY set forth in Subsection G-2 of this Agreement. If the changes result in the COUNTY incurring or becoming

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31 G. PAYMENT: (Continued)
obligated to pay for increased costs for or on account of personnel whose costs are included in the calculations of costs charged to CITY hereunder, CITY shall pay COUNTY, in addition to the Maximum Obligation set forth in Subsection G-2 of this Agreement, the full costs of said increases to the extent such increases are attributable to work performed by such personnel after July 1, 2023, and CITY’s Maximum Obligation hereunder shall be deemed to have increased accordingly. CITY shall pay COUNTY in full for such increases on a pro-rata basis over the portion of the period between July 1, 2023 and June 30, 2024 remaining after COUNTY notifies CITY that increases are payable. If the changes result in the COUNTY incurring or becoming obligated to pay for decreased costs for or on account of personnel whose costs are included in the calculations of costs charged to CITY hereunder, COUNTY shall reduce the amount owed by the CITY to the extent such decreases are attributable to work performed by such personnel during the period July 1, 2023 through June 30, 2024, and CITY’s Maximum Obligation hereunder shall be deemed to have decreased accordingly. COUNTY shall reduce required payment by CITY in full for such decreases on a pro-rata basis over the portion of the period between July 1, 2023 and June 30, 2024 remaining after COUNTY notifies CITY that the Maximum Obligation has decreased.
4b.If CITY is required to pay for increases as set forth in Subsection G-4a above, COUNTY, at the request of CITY, will thereafter reduce the level of service to be provided to CITY as set forth in Attachment A of this Agreement to a level that will make the Maximum Obligation of CITY hereunder for the period July 1, 2023 through June 30, 2024 an amount specified by CITY that is equivalent to or higher or lower than the Maximum Obligation set forth in Subsection G-2 for said period at the time this

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Packet Pg. 454 Attachment: Proposed Law Enforcement Services Agreement with OCSD for FY 2023/2024 (3197 : Law Enforcement Services Agreement for FY

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31 G. PAYMENT: (Continued)
Agreement originally was executed. The purpose of such adjustment of service levels will be to give CITY the option of keeping its Maximum Obligation hereunder at the pre-increase level or at any other higher or lower level specified by CITY. In the event of such reduction in level of service and adjustment of costs, the parties shall execute an amendment to this Agreement so providing, pursuant to Subsection C-8. Decisions about how to reduce the level of service provided to CITY shall be made by SHERIFF with the approval of CITY.

5. CITY shall pay COUNTY in accordance with COUNTY Board of Supervisors’ approved County Billing Policy, Attachment D.

6. COUNTY shall charge CITY late payment penalties in accordance with County Billing Policy.

7. As payment for the Licensing Services described in Subsection C-7 of this Agreement, COUNTY shall retain all fees paid by applicants for licenses pursuant to CITY ordinances listed in Attachment B. Retention of said fees by COUNTY shall constitute payment in full to COUNTY for costs incurred by COUNTY in performing the functions related to licensing described in Subsection C-7; provided, however, that if any of said fees are waived or reduced by CITY, CITY shall pay to COUNTY the difference between the amount of fees retained by COUNTY and the fees that were set forth in the ordinances listed in Attachment B at the time this Agreement was executed.

If CITY increases the fee schedule for the licensing ordinances set forth in Attachment B, either party shall have the right to seek amendment of this Agreement with respect to the division of the increased fees between CITY and COUNTY.
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31 G. PAYMENT: (Continued)

8. Fees generated or collected by SHERIFF contract personnel for copying of documents related to the services provided in this Agreement will be at COUNTY-established rates and will be credited to CITY on an annual basis.

9. Narcotic asset forfeitures will be handled pursuant to Attachment E.

H. NOTICES:

1. Except for the notices provided for in Subsection 2 of this Section, all notices authorized or required by this Agreement shall be effective when written and deposited in the United States mail, first class postage prepaid and addressed as follows:

CITY: ATTN: CITY MANAGER
24035 EL TORO ROAD
LAGUNA HILLS, CA 92653
//
COUNTY: ATTN: LAW ENFORCEMENT CONTRACT MANAGER

SHERIFF-CORONER DEPARTMENT
320 NORTH FLOWER STREET, SUITE 108
SANTA ANA, CA 92703

2. Termination notices shall be effective when written and deposited in the United States mail, certified, return receipt requested and addressed as above.

I. STATUS OF COUNTY:

COUNTY is, and at all times shall be deemed to be, an independent contractor.

Nothing herein contained shall be construed as creating the relationship of employer and employee, or principal and agent, between CITY and COUNTY or any of COUNTY’s agents or employees. COUNTY and its SHERIFF shall retain all authority for rendition of services, standards of performance, control of personnel, and other matters incident to the performance of services by

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31 I. STATUS OF COUNTY: (Continued)
COUNTY pursuant to this Agreement. COUNTY, its agents and employees shall not be entitled to any rights or privileges of CITY employees and shall not be considered in any manner to be CITY employees.

J. STATE AUDIT:

Pursuant to Government Code Section 8546.7, CITY and COUNTY shall be subject to examination and audit by the State Auditor for a period of three (3) years after final payment by CITY to COUNTY under this Agreement. CITY and COUNTY shall retain all records relating to the performance of this Agreement for said three-year period, except that those records pertaining to any audit then in progress, or to any claims or litigation, shall be retained beyond said three-year period, until final resolution of said audit, claim or litigation.

K. ALTERATION OF TERMS:

This Agreement is comprised of this documents and Attachments A through G, which are attached hereto and incorporated herein by reference. This Agreement fully expresses all understanding of CITY and COUNTY with respect to the subject matter of this Agreement and shall constitute the total Agreement between the parties for these purposes. No addition to, or alteration of, the terms of this Agreement, unless expressly provided herein, shall be valid unless made in writing, formally approved and executed by duly authorized agents of both parties.

L. INDEMNIFICATION:

1. COUNTY, its officers, agents, employees, subcontractors and independent contractors shall not be deemed to have assumed any liability for the negligence or any other act or omission of CITY or any of its officers, agents, employees, subcontractors or independent contractors, or for any dangerous or defective condition of any public street, work, or property of

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31 L. INDEMNIFICATION: (Continued)
CITY, or for any illegality or unconstitutionality of CITY’s municipal ordinances. CITY shall indemnify and hold harmless COUNTY and its elected and appointed officials, officers, agents, employees, subcontractors and independent contractors from any claim, demand or liability whatsoever based or asserted upon the condition of any public street, work, or property of CITY, or upon the illegality or unconstitutionality of any municipal ordinance of CITY that SHERIFF has enforced, or upon any act or omission of CITY, or its elected and appointed officials, officers, agents, employees, subcontractors or independent contractors related to this Agreement, including, but not limited to, any act or omission related to the maintenance or condition of any vehicle or motorcycle that is owned or possessed by CITY and used by COUNTY personnel in the performance of this Agreement, for property damage, bodily injury or death or any other element of damage of any kind or nature, and CITY shall defend, at its expense including attorney fees, and with counsel approved in writing by COUNTY, COUNTY and its elected and appointed officials, officers, agents, employees, subcontractors and independent contractors in any legal action or claim of any kind based or asserted upon such condition of public street, work, or property, or illegality or unconstitutionality of a municipal ordinance, or alleged acts or omissions. If judgment is entered against CITY and COUNTY by a court of competent jurisdiction because of the concurrent active negligence of either party, CITY and COUNTY agree that liability will be apportioned as determined by the court. Neither party shall request a jury apportionment.

2. COUNTY shall indemnify and hold harmless CITY and its elected and appointed officials, officers, agents, employees, subcontractors and independent contractors from any claim, demand or liability whatsoever

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31 L. INDEMNIFICATION: (Continued)
based or asserted upon any act or omission of COUNTY or its elected and appointed officials, officers, agents, employees, subcontractors or independent contractors related to this Agreement, for property damage, bodily injury or death or any other element of damage of any kind or nature, and COUNTY shall defend, at its expense, including attorney fees, and with counsel approved in writing by CITY, CITY and its elected and appointed officials, officers, agents, employees, subcontractors and independent contractors in any legal action or claim of any kind based or asserted upon such alleged acts or omissions.

M. TRAFFIC VIOLATOR APPREHENSION PROGRAM:

1. COUNTY has established a Traffic Violator Apprehension Program [“the Program”], which is operated by SHERIFF, and is designed to reduce vehicle accidents caused by unlicensed drivers and drivers whose licenses are suspended and to educate the public about the requirements of the Vehicle Code and related safety issues with regard to driver licensing, vehicle registration, vehicle operation, and vehicle parking. The Program operates throughout the unincorporated areas of the COUNTY and in the cities that contract with COUNTY for SHERIFF’s law enforcement services, without regard to jurisdictional boundaries, because an area-wide approach to reduction of traffic accidents and driver education is most effective in preventing traffic accidents. In order for CITY to participate in the Program, CITY has adopted fees pursuant to Vehicle Code Section 22850.5, in the same amount as approved by COUNTY, as set forth in the resolution that is Attachment F [hereinafter referred to as a “TVAP resolution”], and has directed that the revenue from such fee be used for the Program. CITY’s participation in the Program may be terminated at any time by rescission or amendment of the TVAP resolution. In the event CITY 1) amends said

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31 M. TRAFFIC VIOLATOR APPREHENSION PROGRAM: (Continued) TVAP resolution, or rescinds said TVAP resolution and adopts a new TVAP resolution pertaining to the above-referenced fees and the Program, and 2) remains a participant in the Program thereafter, CITY’s Manager, on behalf of CITY, and SHERIFF, on behalf of COUNTY, have authority to execute an amendment of this Agreement to substitute CITY’s amended or new TVAP resolution for Attachment F to the Agreement, as long as said amendment to this Agreement does not materially change any other provision of this Agreement. As COUNTY updates its fees for the Program periodically, COUNTY will provide written notice to CITY of the updated fees. CITY’S participation in the Program will terminate if CITY determines not to adopt the updated fees for the Program.

2. COUNTY will make available for review, at the request of CITY, all financial data related to the Program as may be requested by CITY.

3. Fee revenue generated by COUNTY and participating cities will be used to fund the following positions, which will be assigned to the Program:
 Ten one hundredths of one (0.10) Sergeant
(8 hours per two-week pay period)
 One (1) Staff Specialist
(80 hours per two-week pay period)
 One (1) Office Specialist
(80 hours per two-week pay period)

4. Fee revenue generated by CITY may be used to reimburse CITY for expenditures for equipment and/or supplies directly in support of the Program. In order for an expenditure for equipment and/or supplies to be eligible for reimbursement, CITY shall submit a request for and obtain preapproval of the expenditure by using the form as shown in Attachment G.

The request shall be submitted within the budget schedule established by

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31 M. TRAFFIC VIOLATOR APPREHENSION PROGRAM: (Continued) SHERIFF. SHERIFF shall approve the expenditure only if both of the following conditions are satisfied: 1) there are sufficient Program funds, attributable to revenue generated by CITY’s fee, to pay for the requested purchase, and 2) CITY will use the equipment and/or supplies, during their entire useful life, only for purposes authorized by its TVAP resolution in effect at the time of purchase.

In the event that CITY terminates its participation in the Program, CITY agrees that the equipment purchased by CITY and reimbursed by Program funds will continue to be used, during the remainder of its useful life, exclusively for the purposes authorized by CITY’s TVAP resolution in effect at the time of purchase.

5. In the event the fees adopted by COUNTY, CITY and other participating jurisdictions are not adequate to continue operation of the Program at the level at which it operated previously, COUNTY, at the option of CITY, will reduce the level of Program service to be provided to CITY or will continue to provide the existing level of Program services. COUNTY will charge CITY the cost of any Program operations that exceed the revenue generated by fees. Such charges shall be in addition to the Maximum Obligation of CITY set forth in Subsection G-2 of this Agreement. The amount of any revenue shortfall charged to CITY will be determined, at the time the revenue shortfall is experienced, according to CITY’s share of Program services rendered. In the event of a reduction in level of Program service, termination of Program service or adjustment of costs, the parties shall execute an amendment to this Agreement so providing. Decisions about how to reduce the level of Program service provided to CITY shall be made by SHERIFF with the approval of CITY.
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31 N. MOBILE DATA COMPUTERS:

1. As part of the law enforcement services to be provided to CITY, COUNTY has provided, or will provide, mobile data computers (hereinafter called “MDCs”) that are or will be mounted in patrol vehicles and motorcycles, designated by COUNTY for use within CITY limits.

2. SHERIFF has the exclusive right to use said MDCs for law enforcement services related to this Agreement.

3. CITY shall pay COUNTY the full costs to COUNTY of a) the acquisition and installation of MDCs that are or will be mounted in patrol vehicles and motorcycles assigned to CITY, and b) recurring costs, as deemed necessary by COUNTY, including the costs of maintenance and contributions to a fund for replacement and upgrade of such MDCs when they become functionally or technologically obsolete.

The costs to be paid by CITY for recurring costs, including maintenance and replacement/upgrade of MDCs, are included in the costs set forth in Attachment C and the Maximum Obligation of CITY set forth in Subsection G-2 of this Agreement unless CITY has already paid such costs.

4. If, following the initial acquisition of MDCs referenced above, CITY requires MDCs for additional patrol cars or motorcycles designated for use in the CITY, or for CITY Emergency Operations Center, COUNTY will purchase said additional MDCs. Upon demand by COUNTY, CITY will pay to COUNTY a) the full costs of acquisition and installation of said additional MDCs, and b) the full recurring costs for said MDCs, as deemed necessary by COUNTY, including the costs of maintenance, and contributions to a fund for replacement and upgrade of such MDCs when they become functionally or technologically obsolete. Said costs related to additional MDCs are not included in, and are in addition to, the costs set forth in Attachment C and the Maximum Obligation of CITY set forth in

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31 N. MOBILE DATA COMPUTERS (Continued)
Subsection G-2 of this Agreement.

5. COUNTY will replace and/or upgrade MDCs as needed. The costs of replacing/upgrading MDCs shall be paid by COUNTY from the replacement/upgrade funds to be paid by CITY in accordance with the foregoing.

O. E-CITATION UNITS:

1. As part of the law enforcement services to be provided to CITY, COUNTY has provided, or will provide, E-Citation units designated by COUNTY for use within CITY limits.

2. SHERIFF has the exclusive right to use said E-Citation units for law enforcement services related to this Agreement.

3. CITY shall pay COUNTY the full costs to COUNTY of a) the acquisition of E-Citation units that are assigned to CITY, and b) recurring costs, as deemed necessary by COUNTY, including the costs of maintenance and contributions to a fund for replacement and upgrade of such E-Citation units when they become functionally or technologically obsolete.

The costs to be paid by CITY for recurring costs, including maintenance and replacement/upgrade of E-Citation units, are included in the costs set forth in Attachment C and the Maximum Obligation of CITY set forth in Subsection G-2 of this Agreement unless CITY has already paid such costs.

4. If, following the initial acquisition of E-Citation units referenced above, CITY requires additional E-Citation units designated for use in CITY, COUNTY will purchase said additional E-Citation units. Upon demand by COUNTY, CITY will pay to COUNTY a) the full costs of acquisition of said additional E-Citation units, and b) the full recurring costs for said E-Citation units, as deemed necessary by COUNTY, including the costs of maintenance, and contributions to a fund for replacement and upgrade of such E-Citation units

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31 O. E-CITATION UNITS: (Continued)
when they become functionally or technologically obsolete. Said costs related to additional E-Citation units are not included in, and are in addition to, the costs set forth in Attachment C and the Maximum Obligation of CITY set forth in Subsection G-2 of this Agreement.

5. COUNTY will replace and/or upgrade E-Citation units as needed. The costs of replacing/upgrading E-Citation units shall be paid by COUNTY from the replacement/ upgrade funds to be paid by CITY in accordance with the foregoing.
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31 IN WITNESS WHEREOF, the parties have executed the AGREEMENT in the County of Orange, State of California.

DATED:_________________________

CITY OF LAGUNA HILLS
ATTEST:______________________
City Clerk
BY:_____________________________
Mayor
APPROVED AS TO FORM:

BY:_____________________________
City Attorney
---------------------------------------------------------------------------------------------------------------- DATED:________________________

COUNTY OF ORANGE
BY:__________________________________
Chairman of the Board of Supervisors
County of Orange, California

SIGNED AND CERTIFIED THAT A COPY OF THIS

AGREEMENT HAS BEEN DELIVERED TO THE CHAIR
OF THE BOARD PER G.C. Sec. 25103, Reso 79-1535
Attest:
____________________________
Robin Stieler
Clerk of the Board
County of Orange, California APPROVED AS TO FORM:

Office of the County Counsel
County of Orange, California
BY:__________________________
Deputy
DATED:______________________
5/26/23

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ATTACHMENT A
LEVEL OF SERVICE PROVIDED BY SHERIFF:

Title Detail Quantity Frequency
MANAGEMENT:

Captain 1.00
SUPERVISION:

Sergeant Patrol 1.00 80 hrs./ per two wk. pay period
Sergeant Patrol 0.33 26.40 hrs./per two wk. pay period
Sergeant Administrative 1.00 80 hrs./ per two wk. pay period INVESTIGATION SERVICES:

Investigator 2.00 each, 80 hrs./ per two wk. pay period PATROL AND TRAFFIC SERVICES*:

Deputy Sheriff II -Patrol Patrol 16.00 each, 80 hrs./ per two wk. pay period Deputy Sheriff II -Motor Traffic 1.00 80 hrs./ per two wk. pay period ADDITIONAL SERVICES*:

Deputy Sheriff II School Resource Officer 1.00 80 hrs./ per two wk. pay period Community Services Officer Parking Control 2.00 each, 80 hrs./ per two wk. pay period Crime Prevention Specialist Crime Prevention 1.00 80 hrs./ per two wk. pay period TOTAL 26.33
* Deployment to be determined by SHERIFF in cooperation with CITY Manager REGIONAL / SHARED STAFF:

Title Regional Team Quantity % Allocation
TRAFFIC:

Sergeant Traffic 0.60 8.60%
Deputy Sheriff II Traffic 4.00 8.60%
Investigative Assistant Traffic 2.00 8.60%
Office Specialist Traffic 1.00 8.60%
AUTO THEFT:

Sergeant Auto Theft 0.30 8.12%
Investigator Auto Theft 2.00 8.12%
Investigative Assistant Auto Theft 1.00 8.12%
Office Specialist Auto Theft 1.00 8.12%
DET:

Sergeant DET 1.00 5.61%
Investigator DET 1.00 5.61%
COURTS:

Investigative Assistant Courts 2.00 10.89%
MOTORCYCLE (shared Supervision):

Sergeant Motorcyle Supervision 1.00 3.77%
TOTAL 16.90
"REGULAR SERVICES BY COUNTY"
(Subsection C-3)

CITY OF LAGUNA HILLS

ORANGE COUNTY SHERIFF-CORONER
FY 2023-24 LAW ENFORCEMENT CONTRACT

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ATTACHMENT B
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CITY OF LAGUNA HILLS
ORDINANCE NO. 92-6

LICENSING

BINGO GAME

BINGO OFFICIAL

DANCE INSTRUCTOR (NUDE)

DANCE STUDIO (NUDE)
ESCORT

ESCORT BUREAU

FIGURE MODEL (NUDE)

FIGURE MODEL STUDIO (NUDE)

GUN DEALER

INTERLOCUTRIX (NUDE)

INTRODUCTORY SERVICE

JUNK COLLECTOR

JUNK DEALER
MASSAGE PARLOR (Includes FBI Fees)
MASSAGIST (Includes FBI Fees)

PEDDLER

POOL ROOM

PUBLIC DANCE

RAP SESSION (NUDE)
SECONDHAND DEALER (Pawnbroker)

TAXICAB STAND

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ATTACHMENT C
COST OF SERVICES PROVIDED BY SHERIFF (Subsection G-2):

Title Detail Quantity
Cost of Service
(each)
Cost of Service
Total
MANAGEMENT:

Captain 1.00 $ 433,756 $ 433,756
SUPERVISION:

Sergeant Patrol 1.00 $ 359,633 $ 359,633
Sergeant Patrol 0.33 $ 359,633 $ 118,678
Sergeant Administrative 1.00 $ 359,633 $ 359,633
INVESTIGATION SERVICES:

Investigator 2.00 $ 355,121 $ 710,242
PATROL AND TRAFFIC SERVICES:

Deputy Sheriff II -Patrol Patrol 16.00 $ 299,297 $ 4,788,752 Deputy Sheriff II -Motor Traffic 1.00 $ 304,160 $ 304,160 ADDITIONAL SERVICES:

Deputy Sheriff II School Resource Officer 1.00 $ 299,297 $ 299,297 Community Services Officer Parking Control 2.00 $ 144,284 $ 288,568 Crime Prevention Specialist Crime Prevention 1.00 $ 116,655 $ 116,655 TOTAL POSITIONS 26.33 $ 7,779,374
REGIONAL / SHARED STAFF:

Title Regional Team Quantity % Allocation Cost $
TRAFFIC:

Sergeant Traffic 0.60 8.60% $ 23,974
Deputy Sheriff II Traffic 4.00 8.60% $ 125,964
Investigative Assistant Traffic 2.00 8.60% $ 27,043
Office Specialist Traffic 1.00 8.60% $ 10,529
AUTO THEFT:

Sergeant Auto Theft 0.30 8.12% $ 11,299
Investigator Auto Theft 2.00 8.12% $ 55,706
Investigative Assistant Auto Theft 1.00 8.12% $ 12,865
Office Specialist Auto Theft 1.00 8.12% $ 9,693
DET:

Sergeant DET 1.00 5.61% $ 23,533
Investigator DET 1.00 5.61% $ 21,825
COURTS:

Investigative Assistant Courts 2.00 10.89% $ 32,465
MOTORCYCLE (shared Supervision):

Sergeant Motorcyle Supervision 1.00 3.77% $ 15,248
TOTAL REGIONAL/SHARED 16.90 $ 370,144
OTHER CHARGES AND CREDITS (Subsection G-2):

OTHER CHARGES:

CREDITS:

TOTAL OTHER CHARGES AND CREDITS $ 1,500,866
TOTAL COST OF SERVICES (Subsection G-2) $ 9,650,384

ORANGE COUNTY SHERIFF-CORONER
FY 2023-24 LAW ENFORCEMENT CONTRACT

CITY OF LAGUNA HILLS
"PAYMENT"
(Subsection G-2)
Credits include: AB109 (2011 Public Safety Realignment); estimated vacancy credits; false alarm fees; reimbursement for training and miscellaneous programs; reimbursement for restitution.

Other Charges include: Annual leave paydowns and apportionment of cost of leave balances paid at end of employment; Body Worn Camera (BWC) and In Car Video (ICV); contract administration; data line charges; enhanced helicopter response services; E-Citation recurring costs for four (4) units; facility lease; holiday pay; Integrated Law & Justice of Orange County fees; Mobile Data Computer (MDC) recurring cost for twenty and a third (20.33) units; overtime; patrol training cost allocation; premium pay for bilingual staff, on-call pay, education incentive pay; services and supplies; and transportation charges.

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ATTACHMENT D

COUNTY BILLING POLICY
APPROVED BY BOARD MINUTE ORDER DATED OCTOBER 27, 1992
I. POLICY
All County agencies/departments/districts (County) governed by the Board of Supervisors shall bill contracting entities for materials and/or services provided under contract in accordance with the following standardized billing and collection policy. Billing frequency is dependent on whether the contract is a fixed price or actual cost contract. Payment due date is designed to be both responsive to the County’s cash flow needs and reasonable enough as to not require special processing by the contracting entity. If payments are not received by the required due dates, a late payment fee shall be computed and billed to the contracting entity in accordance with the requirements of this procedure.

Nothing herein shall affect the liability, including pre-judgment interest, of the contracting party for services or materials in as much as this is a policy to enact standard billing practices.

II. DEFINITIONS
A. Contract for the purposes of this policy - A contract is a formal written agreement, a purchase order from the contracting entity, or any other acceptable mutual understanding between the contracting parties.

B. Received by the County - The phrase “received by the County”, as used in Section VI of this policy, refers to the date a payment is received by the County. It is defined as the date the payment is in the County’s possession. It is not the date the payment is posted or deposited by the County.

III. FIXED PRICE CONTRACTS
A. Fixed Price (One-Time/Non-Recurring Contracts) - Invoices that represent a billing for a one-time, non-recurring provision of materials and/or services shall be issued no later than five (5) working days after delivery by the County of the materials and/or services.

Examples of such one-time, non-recurring provision of materials and/or services might be a city contracting with the Sheriff for security service at a parade or sporting event; or, a city purchasing a computer listing containing certain city-requested data. Payment due date shall be invoice date plus 30 days.

B. Fixed Price (Ongoing/Recurring Contracts) - Invoices that represent a billing for an ongoing, recurring provision of materials and/or services shall be issued according to the following frequency:

1. Annual Billings that total $10,000 or less per 12-month period shall be billed via one (1) annual invoice. Annual invoices will be issued for each 12-month period of the contract, or portions thereof. Invoices shall be issued no later than five working days after the beginning of each 12-month period. Payment due date shall be invoice date plus 30 days.

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2. Quarterly Billings that are greater than $10,000 but not more than $200,000 per 12- month period, shall be billed in quarterly installments. Quarterly invoices will be issued representing the contract amount for each 12-month period of the contract, or portions thereof, prorated into four (4) installments. Invoices shall be issued no later than 30 days after the beginning of each quarter. Payment due date shall be 60 days after the beginning of each calendar quarter.

3. Monthly Billings that are greater than $200,000 per 12-month period shall be billed in monthly installments. Monthly invoices will be issued representing the contract amount for each 12-month period of the contract, or portions thereof, prorated into 12 installments. Invoices shall be issued on or before the first day of each service month. Payment due date shall be 30 days after the beginning of each service month.

An example of a fixed price contract for ongoing, recurring provision of materials and/or services might be a city contracting with the Sheriff for law enforcement services.

IV. ACTUAL COST CONTRACTS
A. Actual Cost (One-Time/Non-Recurring Contracts) - Invoices that represent a billing for a one-time, non-recurring provision of materials and/or services shall be issued after delivery by the County of the materials and/or services and no later than 15 days after actual cost data is available. Payment due date shall be invoice date plus 30 days.

B. Actual Cost (Ongoing/Recurring Contracts) - Invoices that represent a billing for an ongoing, recurring provision of materials and/or services shall be issued on a monthly basis and shall represent the cost of materials and/or services provided to the contracting entity during the previous calendar month. Such invoices shall be issued no later than 15 days after the close of the monthly billing period. If the County agency/department/district does not utilize a monthly billing cycle, the invoice shall be issued no later than 15 days after actual cost data is available. Payment due date shall be invoice date plus 30 days.

Examples of actual cost contracts for the ongoing, recurring provision of materials and/or services might be a city contracting with the County for communications equipment repair or waste disposal at a County landfill.

V. PAYMENT DUE DATES
Notwithstanding the provisions of Sections II and III above, payment due date shall be at least invoice date plus 30 days. If the County is late in issuing an invoice, the contracting entity would always have at least invoice date plus 30 days to pay. If the County is early in issuing an invoice, the contracting entity would still have a payment due date of either 60 days after the beginning of the quarter (quarterly invoices) or 30 days after the beginning of the service month (monthly invoices).
(EXAMPLES: An invoice for October service, dated and issued October 8 (late) would have a payment due date of November 7. An invoice for August service, dated and issued July 20 (early) would have a payment due date of August 30.)

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VI. LATE CHARGES
The late payment of any invoiced amount by a contracting entity will cause the County to incur costs not contemplated by the County/contracting entity agreement, the exact amount of such cost will be extremely difficult to ascertain. Such costs include, but are not limited to, costs such as administrative follow-up and processing of delinquent notices, increased accounting costs, etc.

Late charges will be assessed in the following situations:
 Over-the-counter payments will be assessed a late charge if any payment is not received by the County by the payment due date.
 Payments transmitted to the County via the U.S. Mail that have the payer’s postage meter mark will be assessed a late charge if any payment is not received by the County by the payment due date plus one day.
 Payments transmitted to the County via the U.S. Mail that have a U.S. Post Office postmark dated after the payment due date will be assessed a late charge.

The late charge assessed in each of these situations shall be three-quarters of one percent (0.75%) of the payment due and unpaid plus $100.00 for late payments made within 30 days of the payment due date. An additional charge of three-quarters of one percent (0.75%) of said payment shall be added for each additional 30-day period that the payment remains unpaid. Late charges shall be added to the payment and invoiced to the contracting entity in accordance with this policy.

VII. COLLECTIONS
Any invoice remaining unpaid 90 days after the invoice date shall be referred to the AuditorController for subsequent collection action, such as deduction from contracting entity moneys on deposit with the County Treasurer in accordance with Government Code Section 907 and any other applicable provision of law. Non-payment of invoices and applicable late charges will constitute a breach of contract for which the County retains all legal remedies including termination of the contract.

VIII. DISCOUNT FOR EARLY PAYMENT
Any payment received by the County from a contracting entity 20 days or more before the payment due date shall be entitled to a discount of one-quarter of one percent (0.25%). If the contracting entity takes a discount, and the payment is received by the County less than 20 days before the payment due date, County staff shall immediately notify the contracting entity by telephone that the discount should not have been taken and that the balance is due by the original payment due date.

If the balance is not received by the County in accordance with the dates as specified in Section VII, applicable late charges shall be calculated on the balance due.

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IX. DEFERRED REVENUE
At fiscal year end, any portion of revenue invoiced (not necessarily received) during the fiscal year being closed out that represents charges or prepayment for materials and/or services for the upcoming fiscal year shall be reclassified from a revenue account to a deferred revenue account (liability). In the new fiscal year the deferred revenue shall be reclassified to a revenue account. (EXAMPLE: On June 1, 19X1, a city is invoiced $48,000 which represents charges for the 12-month period June 1, 19X1 to May 31, 19X2. The amount to be reclassified to deferred revenue would be $44,000, representing 11/12ths of the total amount. In July 19X1, the $44,000 would be reclassified to revenue.) Reclassification entries shall be made by Auditor-Controller Agency Accounting units, or for those agencies/departments/districts without such a unit, the agency/department/district shall notify the Auditor-Controller of the amounts to be reclassified.

X. COST RECOVERY
All County agencies/department/districts shall include all costs of providing contracted services in contract rates. Including all direct costs, allocated indirect costs such as departmental and County (CWCAP) overhead, and cost of capital financing.

XI. EXISTING CONTRACTS
Billing terms and provisions contained in existing contracting entity agreements (existing as of the date this policy is approved by the Board of Supervisors) shall remain in effect for the life of the contract. However, when these existing contracts are renegotiated, they shall contain the billing provisions as set forth in this policy.

XII. DEVIATIONS FROM POLICY
Deviations from this policy shall be approved by the Board of Supervisors. Proposed deviations by agencies/departments/districts shall be submitted to the CEO for concurrence in advance of filing an Agenda Item Transmittal (AIT) with the Clerk of the Board. The CEO, or his/her designee, shall advise the agency/department/district of approval or disapproval of the proposed deviations. If a County agency/department/district submits a contract to the Board of Supervisors for approval, and the billing provisions in the contract deviate from this policy, the agency/department/district shall specifically advise the Board of Supervisors in the AIT of the deviation, the reason for the deviation, and of the CEO’s recommendation relative thereto.

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ATTACHMENT E

POLICY FOR DISTRIBUTION OF FORFEITED AND SEIZED ASSETS

BACKGROUND
The Orange County Sheriff’s Department provides contract law enforcement services to cities in Orange County. Because of the increased likelihood that contracted patrol or investigation personnel may become involved in significant narcotic seizures, which could affect law enforcement services provided by the Sheriff’s Department to contract cities, the following policy is in effect.

CONTRACTED PATROL AND INVESTIGATION OFFICERS
When assets (cash or property) are seized in CITY by contracted patrol or investigation personnel, and subsequently forfeited to COUNTY’s Sheriff Department, hereinafter referred to as “SHERIFF”, the forfeited assets shall be shared with CITY as set forth below, for the purpose of augmenting law enforcement services in CITY, subject to guidelines by the forfeiting agency of such sharing and use of forfeited assets. A portion of forfeited assets may be retained by SHERIFF, to pay for departmental expenses not recovered through law enforcement contracts.

In such cases, pursuant to the forfeiting agency’s guidelines, SHERIFF shall apply to the forfeiting agency for the return of a share of assets. In his application, SHERIFF shall specify the percentage of shared assets returned to SHERIFF that will be used to augment law enforcement services in CITY and the use of said assets by CITY.

In those cases in which assets are seized within CITY by personnel assigned to CITY pursuant to this Agreement, without the involvement of other law enforcement personnel, and in which the seizure is a result solely of activities self-initiated by SHERIFF personnel assigned to CITY or initiated by said personnel in response to calls for service within CITY, SHERIFF shall apply to have all of the assets used to augment CITY law enforcement services.

In those cases in which SHERIFF personnel assigned to CITY pursuant to this Agreement play an ancillary role in a seizure or in which other law enforcement personnel are involved in a seizure, SHERIFF shall determine the percentage of the total forfeited assets for which he will apply to augment CITY’s law enforcement services. This determination will be based on the circumstances of the seizure, including the pro-rata involvement of all personnel, including those assigned to CITY.

Each seizure will be evaluated on an individual and independent basis, and said evaluations will be available for review to CITY’s manager. Examples of those incidents which would be evaluated as set forth in this section include situations in which a contract patrol deputy provides uniformed backup at a SHERIFF’s Narcotic Bureau search warrant location or in which contract investigators participate in the service of a search warrant that was initiated by non-contract law enforcement personnel.

Assets (cash or property) that are returned to SHERIFF by the forfeiting agency with the understanding that they will be used to augment CITY law enforcement services shall be used by CITY and SHERIFF only for such purposes. If the forfeiting agency attaches additional or more specific conditions to the use of said assets, CITY and SHERIFF shall also abide by those conditions. SHERIFF and CITY’s manager shall determine the specific use of said assets within the conditions imposed by the forfeiting agency.

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BUDGET

USE ONLYR E Q U E S T C ER TI FI CA T IO N A P P R O V A L S

ORANGE COUNTY SHERIFF-CORONER

TRAFFIC VIOLATOR APPREHENSION PROGRAM

CONTRACT CITY
Participating City Request to Purchase From the TVA in FY Date

APPLICABILTY

QUANTITY ITEM DESCRIPTION TO TVA PROGRAM ESTIMATED COST

THE CITY CERTIFIES THAT THE EQUIPMENT PURCHASED BY CITY AND TO BE REIMBURSED BY PROGRAM FUNDS

WILL BE USED FOR ITS ENTIRE USEFUL LIFE EXCLUSIVELY FOR THE PURPOSES OF THE TRAFFIC VIOLATOR

APPREHENSION PROGRAM
CITY MANAGER REQUEST:

Printed Name
Signature: DATE
Recommended For Approval
CITY POLICE SERVICES CHIEF MANAGER – TVA PROGRAM

ORANGE COUNTY SHERIFF-CORONER DEPARTMENT

ATTACHMENT G

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Packet Pg. 488 Attachment: Proposed Law Enforcement Services Agreement with OCSD for FY 2023/2024 (3197 : Law City of Laguna Hills
City Council/Planning Agency
Staff Report
DATE: June 27, 2023
TO: Mayor and Council Members
FROM: Jarad Hildenbrand
City Manager
ISSUE: Consideration of Security Patrol Services Agreement with High Level Security Solutions, Inc.

RECOMMENDATION: That the City Council approve and authorize the Mayor to sign a Security Patrol Services Agreement with High Level Security Solutions, Inc. in the total maximum contract amount of $225,000.

BACKGROUND:

Last year, the City entered into an agreement with High Level Security Solutions, Inc. (HLSS) to provide properly trained and equipped, uniformed, security officers with marked patrol vehicles to patrol residential neighborhoods, shopping centers, and public facilities within the City on an as-needed basis in order to enhance public welfare and safety. HLSS patrols certain areas of the City at the direction of the City Manager.

Depending on the need, one or two guards patrol daily from 8:00 p.m. to 4:00 a.m.

The agreement is currently scheduled to expire on June 30, 2023, by operation of its own terms. At the June 13, 2023 Budget Workshop, the City Council directed staff to prepare a one-year extension to the agreement. The proposed agreement, Attachment A, expires on June 30, 2024, and allows for continued, uninterrupted citywide private security patrol services to City.

4.15 Packet Pg. 489
Patrol Services Agreement
June 27, 2023

FISCAL IMPACT:

HLSS has proposed a rate increase from $51.00 to $65.00 per hour due to the continued increasing operating costs. The FY 23/24 budget includes $200,000 for private security services, but staff has proposed a maximum contract amount of $225,000 to account for unanticipated service requests.

ATTACHMENTS:
• Proposed Security Patrol Services Agreement with High Level Security Solutions, Inc

4.15 Packet Pg. 490
1775903.1
1 SECURITY PATROL SERVICES AGREEMENT
High Level Security Solutions, Inc.
(Citywide Private Security Patrol Services)
THIS SECURITY PATROL SERVICES AGREEMENT (hereinafter “Agreement”) is made and entered into, to be effective the 1ST day of July 2023, by and between the CITY OF LAGUNA HILLS, a municipal corporation organized and existing under the laws of the State of California, (hereinafter referred to as “City”) and HIGH LEVEL SECURITY SOLUTIONS, INC., a California corporation (hereinafter referred to as “Consultant”). City and Consultant are sometimes hereinafter individually referred to as “Party” and are hereinafter collectively referred to as the “Parties.”

RECITALS
A. The City has determined that there is a need to retain the professional services of a qualified private security company to provide properly equipped, uniformed, security officers with marked patrol vehicles to patrol residential neighborhoods, shopping centers, and public facilities within the City on an as-needed basis in order to enhance public welfare and safety (the "Project").

B. Consultant has submitted to City a proposal, dated June 16, 2023, to provide professional security patrol services to City for the Project pursuant to the terms of this Agreement. Contracts for the procurement of other public safety services are exempt from the City's competitive bidding procurement regulations, pursuant to Laguna Hills Municipal Code Section 3-08.110(L)(4).

C. Consultant represents and maintains that it is uniquely qualified by virtue of its experience, training, education, equipment, reputation, and expertise to provide these professional security patrol services to City for the Project and has agreed to provide such services as provided herein on an expedited basis. City does not have the personnel, experience, equipment, or technical expertise able to perform the work and services contracted for herein.

D. City desires to retain Consultant to provide such professional security patrol services to City for the Project in order to enhance public safety.

NOW, THEREFORE, in consideration of the promises and mutual obligations, covenants, and conditions contained herein, and other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

AGREEMENT

1. SERVICES OF CONSULTANT

1.1 Scope of Services and Standard of Performance. In compliance with all terms and conditions of this Agreement, Consultant agrees to provide and perform professional security patrol services to City for the Project as set forth in the Proposal/Scope of Work, dated June 16, 2023, which is attached hereto as Exhibit “A” and is incorporated herein by reference

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Packet Pg. 491 Attachment: Proposed Security Patrol Services Agreement with High Level Security Solutions, Inc (3219 : Patrol Services Agreement) 1775903.1
2 (hereinafter referred to as the “Scope of Services,” the “Services” or “Work”). As a material inducement to the City entering into this Agreement, Consultant acknowledges and understands that the Services and Work contracted for under this Agreement require specialized skills and abilities and that, consistent with this understanding, Consultant’s Services and Work shall be performed in a skillful and competent manner and shall be held to a standard of quality and workmanship prevalent in the industry for such Services and Work and with the standards recognized as being employed by professionals in the same discipline in the State of California.

Consultant represents and warrants that it is skilled in the professional discipline necessary to perform the Services and Work and that it holds the necessary skills and abilities to satisfy the standard of work as set forth in this Agreement. Consultant represents and warrants that it and all of its employees, subconsultants and subcontractors providing any Work or Services under this Agreement shall have sufficient skill and experience to perform the Services and Work assigned to them. All Services and Work shall be completed to the reasonable satisfaction of the City.

1.2 Contract Documents. The Agreement between the Parties shall consist of the following: (1) this Agreement; and, (2) the Consultant’s signed, original Proposal/Scope of Work dated June 16, 2023 (“Consultant’s Proposal”) and submitted to City, which shall both be referred to collectively hereinafter as the “Contract Documents.” The Consultant’s Proposal is attached hereto as Exhibits “A” and is hereby incorporated by reference and made a part of this Agreement. All provisions of this Agreement and the Consultant’s Proposal shall be binding on the Parties. Should any conflict or inconsistency exist in the Contract Documents, the conflict or inconsistency shall be resolved by applying the provisions in the highest priority document, which shall be determined in the following order of priority: (1st) the terms and conditions of this Agreement; and, (2nd) the provisions of the Consultant’s Proposal (Exhibit “A”).

1.3 Compliance with Law. Consultant shall comply at all times during the term of this Agreement with all applicable federal, state, and local laws, statutes, and ordinances and all lawful orders, rules, and regulations promulgated thereunder, including without limitation all applicable fair labor standards and Cal/OSHA requirements. 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 Work and 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 performing the Work and Services. If Consultant performs any Work or Services in violation of such laws, rules, and regulations, Consultant shall be solely responsible for all penalties and costs arising therefrom. Consultant shall defend, indemnify, and hold 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 such laws, rules, or regulations.

1.4 Licenses, Permits, Fees, and Assessments. Prior to performing any Services or Work hereunder Consultant shall obtain all licenses, permits, qualifications, and approvals of whatever nature that are legally required to practice its profession and perform the Work and Services required by this Agreement. Consultant represents and warrants to City that Consultant shall, at its sole cost and expense, keep in effect at all times during the term of this Agreement and any extension, any license, permit, qualification, or approval that is legally required for Consultant to perform the Work and Services under this Agreement. Consultant shall have the

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Packet Pg. 492 Attachment: Proposed Security Patrol Services Agreement with High Level Security Solutions, Inc (3219 : Patrol Services Agreement) 1775903.1
3 sole obligation to pay for any fees, assessments, and taxes, plus applicable penalties and interest, which may be imposed by law and arise from or are necessary for the Consultant's performance of the Work and Services required by this Agreement, and shall defend, indemnify, and hold the City, its officials, officers, employees, agents and volunteers, free and harmless from and against any claim or liability arising out of any failure or alleged failure to obtain such license, permits, and approvals of whatever nature that are legally required to perform the Work or Services.

1.5 Familiarity with Work. By executing this Agreement, Consultant represents and warrants that it (a) has thoroughly investigated and considered the Scope of Work or Services to be performed, (b) has carefully considered how the Services should be performed and has carefully examined the location or locations at or with respect to where such Services or Work is to be performed, and (c) fully understands the facilities, difficulties, and restrictions attending performance of the Services under this Agreement. If the Services involve work upon any site, Consultant represents and maintains that Consultant has or will investigate the site and is or will be fully acquainted with the conditions there existing, prior to commencement of any Services hereunder. Should the Consultant discover any latent or unknown conditions that will materially affect the performance of the Services hereunder, Consultant shall immediately inform the City of such fact and shall not proceed except at Consultant's risk until written instructions are received from the City.

1.6 Care of Work. Consultant shall adopt reasonable methods during the term of the Agreement to furnish continuous protection to the Work and the equipment, materials, papers, documents, plans, studies, and/or other components thereof to prevent losses or damages, and shall be responsible for all such damages, to persons or property, until acceptance of the Work by the City, except such losses or damages as may be caused by City's own negligence.

1.7 Further Responsibilities of Parties. Both Parties agree to use reasonable care and diligence to perform their respective obligations under this Agreement. Both Parties agree to act in good faith to execute all instruments, prepare all documents, and take all actions as may be reasonably necessary to carry out the purposes of this Agreement.

1.8 Additional Services. City shall have the right at any time during the performance of the Services, without invalidating this Agreement, to order extra work beyond that specified in the Consultant's Proposal/Scope of Services (Exhibit “A”) or make changes by altering, adding to, or deducting from such Work. No such extra work may be undertaken unless a written order is first given by the City to the Consultant, incorporating therein any adjustment in (i) the Maximum Contract Amount, as defined below, and/or (ii) the time to perform this Agreement, which adjustments are subject to the written approval of the Consultant. It is expressly understood by Consultant that the provisions of this section shall not apply to the Work and Services specifically set forth in the Scope of Services or reasonably contemplated therein, regardless of whether the time or materials required to complete any Work or Service identified in the Scope of Services exceeds any time or material amounts or estimates provided therein.

1.9 Non-Exclusive Agreement. Consultant acknowledges that City may enter into agreements with other contractors, consultants, or vendors for services similar to the services that

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4 are the subject of this Agreement. Consultant further acknowledges that City may have its own employees perform services similar to the services that are the subject of this Agreement.

2. COMPENSATION

2.1 Maximum Contract Amount. For the Services and Work rendered pursuant to this Agreement, Consultant shall be compensated by City for the services performed, including authorized reimbursements, as set forth in the Schedule of Compensation/Hourly Rate/Fees, which is attached hereto as Exhibit “A” and is incorporated herein by reference, but not exceeding the total maximum contract amount of Two Hundred Twenty Five Thousand Dollars ($225,000.00) (hereinafter referred to as the "Maximum Contract Amount"). The method of compensation shall be as set forth in Exhibit “A”. Compensation for necessary expenditures for reproduction costs, telephone expenses, and transportation expenses must be approved in advance by the Contract Officer designated pursuant to Section 4.2 and will only be approved if such expenses are also specified in the Schedule of Compensation/Fees. The maximum amount of City’s payment obligation under this Agreement is the amount specified in this section.

2.2. Method of Payment. Unless some other method of payment is specified in the Schedule of Compensation/Fees (Exhibit “A”), in any month in which Consultant wishes to receive payment, no later than the tenth (10th) working day of such month, Consultant shall submit to the City, in a form approved by the City’s Finance Director, an invoice for services rendered prior to the date of the invoice. Such requests shall be based upon the amount and value of the services performed by Consultant and accompanied by such reporting data including an itemized breakdown of all costs incurred and tasks performed during the period covered by the invoice, as may be required by the City. City shall use reasonable efforts to make payments to Consultant within fifteen (15) days after receipt of the invoice or a soon thereafter as is reasonably practical.

2.3 Intentionally omitted.

2.4 Changes in Scope. In the event any change or changes in the Scope of Services is requested by the City, the Parties shall execute a written amendment to this Agreement, setting forth with particularity all terms of such amendment, including, but not limited to, any additional professional fees. An amendment may be entered into: (a) to provide for revisions or modifications to documents or other work product or work when documents or other work product or work is required by the enactment or revision of law subsequent to the preparation of any documents, other work product, or work; and/or (b) to provide for additional services not included in this Agreement or not customarily furnished in accordance with generally accepted practice in Consultant’s profession.

2.5 Appropriations. This Agreement is subject to and contingent upon funds being appropriated therefore by the Laguna Hills City Council for each fiscal year covered by the term of this Agreement. If such appropriations are not made, this Agreement shall automatically terminate without penalty to the City.

3. SCHEDULE OF PERFORMANCE

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Packet Pg. 494 Attachment: Proposed Security Patrol Services Agreement with High Level Security Solutions, Inc (3219 : Patrol Services Agreement) 1775903.1
5 3.1 Time of Essence. Time is of the essence in the performance of this Agreement.

The time for completion of the services to be performed by Consultant is an essential condition of this Agreement. Consultant shall prosecute regularly and diligently the Work of this Agreement according to the agreed upon Schedule of Performance.

3.2 Schedule of Performance. Consultant shall commence the Services pursuant to this Agreement upon receipt of a written notice to proceed, or on each task order, if applicable, and shall perform all Services within the time period(s) established in the Schedule of Performance, which is attached hereto as Exhibit “A” and is incorporated herein by reference.

When requested by Consultant, extensions to the time period(s) specified in the Schedule of Performance may be approved in writing by the Contract Officer; however, the City shall not be obligated to grant such an extension.

3.3 Force Majeure. The time period(s) specified in the Schedule of Performance for performance of the Services rendered pursuant to this Agreement shall be extended because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of the Consultant (financial inability excepted), including, but not limited to, acts of God or of the public enemy, unusually severe weather, fires, earthquakes, floods, epidemics, pandemics, quarantine restrictions, riots, strikes, freight embargoes, wars, and/or acts of any governmental agency, including the City, if Consultant, within ten (10) days of the commencement of such delay, notifies the City Manager in writing of the causes of the delay. The City Manager 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 Manager such delay is justified. The City Manager's determination shall be final and conclusive upon the Parties to this Agreement. In no event shall Consultant be entitled to recover damages against the City for any delay in the performance of this Agreement, however caused, Consultant's sole remedy being extension of the Agreement pursuant to this section.

3.4 Term. Unless earlier terminated as provided elsewhere in this Agreement, this Agreement shall commence upon the effective date of this Agreement and shall continue in full force and effect for a period of one (1) year, commencing on July 1, 2023 and ending on June 30, 2024, unless extended by mutual written agreement of the parties.

3.5 Intentionally omitted.

4. COORDINATION OF WORK

4.1 Representative of Consultant. The following principal of Consultant is hereby designated as being the principal and representative of Consultant authorized to act in its behalf with respect to the Services to be performed under this Agreement and to make all decisions in connection therewith: Tony Castillo Jr, CEO. It is expressly understood that the experience, knowledge, education, capability, expertise, and reputation of the foregoing principal is a substantial inducement for City to enter into this Agreement. Therefore, the foregoing principal shall be responsible during the term of this Agreement for directing all activities of Consultant and devoting sufficient time to personally supervise the Work or Services performed hereunder.

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6 The foregoing principal may not be changed by Consultant without prior written approval of the Contract Officer.

4.2 Contract Officer. The Contract Officer shall be such person as may be designated by the City Manager of City, and is subject to change by the City Manager. It shall be the Consultant's responsibility to ensure that the Contract Officer is kept fully informed of the progress of the performance of the Services, and the Consultant shall refer any decisions which must be made by City to the Contract Officer. Unless otherwise specified herein, any approval of City required hereunder shall mean the approval of the Contract Officer. The Contract Officer shall have authority to sign all documents on behalf of the City required hereunder to carry out the terms of this Agreement.

4.3 Prohibition Against Subcontracting or Assignments. The experience, knowledge, capability, expertise, and reputation of Consultant, its principals and employees, were a substantial inducement for City to enter into this Agreement. Therefore, Consultant shall not assign the performance of this Agreement, nor any part thereof, nor any monies due hereunder, voluntarily or by operation of law, without the prior written consent of City.

Consultant shall not contract with any other entity to perform the Services required without prior written consent of City. If Consultant is permitted to subcontract any part of this Agreement by City, Consultant shall be responsible to City for the acts and omissions of its subcontractor(s) in the same manner as it is for persons directly employed. Nothing contained in this Agreement shall create any contractual relationships between any subcontractor and City. All persons engaged in the Work will be considered employees of Consultant. City will deal directly with and will make all payments to Consultant. In addition, neither this 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 consent of City. Transfers restricted hereunder shall include the transfer to any person or group of persons acting in concert of more than twenty five percent (25%) of the present ownership and/or control of Consultant, taking all transfers into account on a cumulative basis. In the event of any such unapproved transfer, including any bankruptcy proceeding, this Agreement shall be void. No approved transfer shall release Consultant or any surety of Consultant from any liability hereunder without the express written consent of City.

4.4 Independent Contractor.

A. The legal relationship between the Parties is that of an independent contractor, and nothing herein shall be deemed to make Consultant a City employee. During the performance of this Agreement, Consultant and its officers, employees, and agents shall act in an independent capacity and shall not act as City officers or employees. Consultant will determine the means, methods and details of performing the Services subject to the requirements of this Agreement. The personnel performing the Services under this Agreement on behalf of Consultant shall at all times be under Consultant’s exclusive direction and control. Neither City nor any of its officials, officers, employees, agents or volunteers shall have control over the conduct of Consultant or any of its officers, employees, or agents, except as set forth in this Agreement. Consultant, its officers, employees or agents, shall not maintain a permanent office or fixed business location at City’s offices. City shall have no voice in the selection, discharge,

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Packet Pg. 496 Attachment: Proposed Security Patrol Services Agreement with High Level Security Solutions, Inc (3219 : Patrol Services Agreement) 1775903.1
7 supervision, or control of Consultant’s officers, employees, representatives or agents or in fixing their number, compensation, or hours of service. Consultant shall pay all wages, salaries, and other amounts due its employees in connection with the performance of Services under this Agreement and shall be responsible for all reports and obligations respecting them, including but not limited to social security income tax withholding, unemployment compensation, workers’ compensation, and other similar matters. City shall not in any way or for any purpose be deemed to be a partner of Consultant in its business or otherwise a joint venturer or a member of any joint enterprise with Consultant.

B. Consultant shall not incur or have the power to incur any debt, obligation, or liability against City, or bind City in any manner.

C. No City benefits shall be available to Consultant, its officers, employees, or agents, in connection with the performance of any Work or Services under this Agreement.

Except for professional fees paid to Consultant as provided for in this Agreement, City shall not pay salaries, wages, or other compensation to Consultant for the performance of any Work or Services under this Agreement. City shall not be liable for compensation or indemnification to Consultant, its officers, employees, or agents, for injury or sickness arising out of performing any Work or Services hereunder. If for any reason any court or governmental agency determines that the City has financial obligations, other than pursuant to Section 2 and Subsection 1.8 herein, of any nature relating to salary, taxes, or benefits of Consultant’s officers, employees, representatives, agents, or subconsultants or subcontractors, Consultant shall defend, indemnify, and hold harmless City from and against all such financial obligations.

4.5 PERS Eligibility & Indemnification.

A. In the event that Consultant or any employee, agent, or subcontractor of Consultant providing any Work or Services under this Agreement claims or is determined by a court of competent jurisdiction or the California Public Employee Retirement System (PERS) to be eligible for enrollment in PERS as an employee of the City, Consultant shall indemnify, defend, and hold harmless City for the payment of any employee and/or employer contributions for PERS benefits on behalf of Consultant or its employees, agents or subcontractors, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of the City.

B. Notwithstanding any other agency, state or federal policy, rule, regulation, law or ordinance to the contrary, Consultant and any of its employees, agents, and subcontractors providing any Work or Services under this Agreement shall not qualify for or become entitled to, and hereby agree to waive any claims to, any compensation, benefit, or any incident of employment by City, including but not limited to eligibility to enroll in PERS as an employee of City and entitlement to any contribution to be paid by City for employer contribution and/or employee contributions for PERS benefits.

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Packet Pg. 497 Attachment: Proposed Security Patrol Services Agreement with High Level Security Solutions, Inc (3219 : Patrol Services Agreement) 1775903.1
8 5. INSURANCE

5.1 Compliance with Insurance Requirements. Consultant shall obtain, maintain, and keep in full force and effect during the term of this Agreement, at its sole cost and expense, and in a form and content satisfactory to City, all insurance required under this section.

Consultant shall not commence any Work or Services under this Agreement unless and until it has provided evidence satisfactory to City that it has secured all insurance required under this section. If Consultant’s existing insurance policies do not meet the insurance requirements set forth herein, Consultant agrees to amend, supplement or endorse the policies to do so.

5.2 Types of Insurance Required. As a condition precedent to the effectiveness of this Agreement, and without limiting the indemnity provisions set forth in this Agreement, Consultant shall obtain and maintain in full force and effect during the term of this Agreement, including any extension thereof, the following policies of insurance:

A. Commercial General Liability Insurance. Consultant shall obtain and maintain, in full force and effect throughout the term of this Agreement, a policy of Commercial General Liability Insurance written on an occurrence basis with limits of at least three million dollars ($3,000,000.00) per occurrence, and five million dollars ($5,000,000.00) in the general aggregate. Defense costs shall be paid in addition to the limits. The policy shall contain no endorsements or provisions limiting coverage for (1) contractual liability; (2) cross liability exclusion for claims or suits by one insured against another; or (3) contain any other exclusion contrary to the Agreement.

B. Automobile Liability Insurance. Consultant shall obtain and maintain, in full force and effect throughout the term of this Agreement, a policy of Automobile Liability Insurance written on a per occurrence basis with limits of at least one million dollars ($1,000,000.00) combined limit for each occurrence covering bodily injury and property damage. The policy shall specifically include coverage for owned, non-owned, leased, and hired automobiles.

C. Workers’ Compensation Insurance. Consultant shall obtain and maintain, in full force and effect throughout the term of this Agreement, a policy of Workers’ Compensation Insurance in at least the minimum statutory amounts, and in compliance with all other statutory requirements, as required by the State of California. Consultant agrees to waive and obtain endorsements from its workers’ compensation insurer waiving all subrogation rights under its workers’ compensation insurance policy against the City, its officials, officers, employees, agents and volunteers, and to require each of its subconsultants and subcontractors, if any, to do likewise under their workers’ compensation insurance policies. Consultant shall obtain and maintain, in full force and effect throughout the term of this Agreement, a policy of Employer’s Liability Insurance written on a per occurrence basis with limits of at least one million dollars ($1,000,000.00) per accident for bodily injury or disease.

D. Professional Liability (Errors & Omissions) Insurance. Consultant shall obtain and maintain in full force and effect throughout the term of this Agreement, a policy of Professional Liability or Errors and Omissions Insurance appropriate to Consultant’s profession with limits of at least three million dollars ($3,000,000.00). Covered professional services shall

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Packet Pg. 498 Attachment: Proposed Security Patrol Services Agreement with High Level Security Solutions, Inc (3219 : Patrol Services Agreement) 1775903.1
9 specifically include all Work or Services to be performed under the Agreement and delete any exclusions that may potentially affect the Work or Services to be performed under this Agreement.

1. The policy shall be endorsed to provide the following: Contractual Liability Exclusion Deleted: This insurance shall include contractual liability applicable to this Agreement. The policy must “pay on behalf of” the insured and include a provision establishing the insurer’s duty to defend.

2. If the policy of insurance is written on a “claims-made” basis, the City may require that the policy be continued in full force and effect at all times during the term of this Agreement, and for a period of three (3) years from the date of the completion of the Work or Services provided hereunder. In the event of termination of the policy during this period, Consultant shall obtain continuing insurance coverage for the prior acts or omissions of Consultant during the course of performing the Work or Services under the terms of this Agreement. The coverage shall be evidenced by either a new policy evidencing no gap in coverage, or by obtaining separate extended “tail” coverage with the present or new carrier or other insurance arrangements providing for complete coverage, either of which shall be subject to the written approval by the City.

3. In the event the policy of insurance is written on an “occurrence” basis, the policy shall be continued in full force and effect during the term of this Agreement, or until completion of the Work or Services provided for in this Agreement, whichever is later. In the event of termination of the policy during this period, new coverage shall immediately be obtained to ensure coverage during the entire course of performing the Work or Services under the terms of this Agreement.

5.3 Acceptability of Insurers. Insurance required by this section shall be issued by a licensed company authorized to transact business in the state by the Department of Insurance for the State of California with a current rating of A-:VII or better (if an admitted carrier), or a current rating of A:X or better (if offered by a non-admitted insurer listed on the State of California List of Approved Surplus Lines Insurers (LASLI), by the latest edition of A.M. Best’s Key Rating Guide, except that the City will accept workers’ compensation insurance from the State Compensation Fund. In the event the City determines that the Work or Services to be performed under this Agreement creates an increased or decreased risk of loss to the City, the Consultant agrees that the minimum limits of the insurance policies may be changed accordingly upon receipt of written notice from the City. Consultant shall immediately substitute any insurer whose A.M. Best rating drops below the levels specified herein.

5.4 Insurance Endorsements. 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 written approval. 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:

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Packet Pg. 499 Attachment: Proposed Security Patrol Services Agreement with High Level Security Solutions, Inc (3219 : Patrol Services Agreement) 1775903.1
10 A. The policy or policies of insurance required by this section for Commercial General Liability and Automobile Liability Insurance shall be endorsed to provide the following:

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; and

2. Additional Insured Endorsements: 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 Agreement; and, the coverage shall contain no special limitations on the scope of protection afforded to additional insureds.

3. Notice: The policy or policies of insurance required by this section for Commercial General Liability and Automobile Liability Insurance shall be endorsed to state that coverage shall not be suspended, voided, cancelled, or modified, or reduced in coverage or in limits, except after thirty (30) days prior written notice by First Class U.S. Mail, postage-prepaid, has been provided to the City. Notwithstanding the foregoing, if coverage is to be suspended, voided, or cancelled because of Consultant’s failure to pay the insurance premium, the notice provided to City shall be by ten (10) days prior written notice.

B. For all policies of Commercial General Liability Insurance, Consultant shall provide endorsements for ongoing operations and completed operations to effectuate this requirement.

5.5 Deductibles and Self-Insured Retentions. Any deductible or self-insured retention must be approved in writing by the City in advance 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 selfinsured retention.

5.6 Primary and Non-Contributing Insurance. All policies of Commercial General Liability Insurance 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.

5.7 Waiver of Subrogation. All policies of Commercial General Liability and Automobile Liability Insurance shall contain or be endorsed to waive subrogation against the City, its officials, officers, employees, agents and volunteers, or shall specifically allow Consultant or others providing insurance evidence in compliance with the requirements set forth in this section to waive their right to recovery prior to a loss. Consultant hereby agrees to waive its own right of recovery against the City, its officials, officers, employees, agents and volunteers, and Consultant hereby agrees to require similar written express waivers and insurance clauses from each of its subconsultants or subcontractors.

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Packet Pg. 500 Attachment: Proposed Security Patrol Services Agreement with High Level Security Solutions, Inc (3219 : Patrol Services Agreement) 1775903.1
11 5.8 Evidence of Coverage. Concurrently with the execution of the Agreement, Consultant shall deliver certificates of insurance together with original endorsements affecting each of the insurance policies required by this section. 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 written approval. The certificates of insurance and original 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. Consultant shall promptly furnish, at City’s request, copies of actual policies including all declaration pages, endorsements, exclusions and any other policy documents City requires to verify coverage.

5.9 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 requirements, or a waiver of any coverage normally provided by any insurance. Nothing in this section shall be construed as limiting in any way the indemnification provision contained in this Agreement, or the extent to which Consultant may be held responsible for payments of damages to persons or property.

5.10 Enforcement of Agreement (Non-Estoppel). Consultant acknowledges and agrees that actual or alleged failure on the part of the City to inform Consultant of any noncompliance with any of the insurance requirements set forth in this section imposes no additional obligation on the City nor does it waive any rights hereunder.

5.11 Insurance for Subconsultants. Consultant shall either: (1) include all subconsultants or subcontractors engaged in any Work or Services for Consultant relating to this Agreement as additional named insureds under the Consultant’s insurance policies, or (2) Consultant shall be responsible for causing its subconsultants or subcontractors to procure and maintain the appropriate insurance in compliance with the terms of the insurance requirements set forth in this section, including adding the City, its officials, officers, employees, agents and volunteers, as additional insureds to their respective policies. All policies of Commercial General Liability Insurance provided by Consultant’s subconsultants or subcontractors performing any Work or Services related to this Agreement shall be endorsed to name the City, its officials, officers, employees, agents and volunteers, as additional insureds. Consultant shall not allow any subconsultant or subcontractor to commence any Work or Services relating to this Agreement unless and until it has provided evidence satisfactory to City that the subconsultant or subcontractor has secured all insurance required under this section.

5.12 Other Insurance Requirements. The following terms and conditions shall apply to the insurance policies required of Consultant pursuant to this Agreement:

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Packet Pg. 501 Attachment: Proposed Security Patrol Services Agreement with High Level Security Solutions, Inc (3219 : Patrol Services Agreement) 1775903.1
12 A. Consultant shall provide immediate written notice to City if (1) any of the insurance policies required herein are terminated, cancelled or suspended, (2) the limits of any of the insurance coverages required herein are reduced, or (3) the deductible or self-insured retention is increased.

B. All insurance coverage and limits provided by Consultant and available or applicable to this Agreement are intended to apply to each insured, including additional insureds, against whom a claim is made or suit is brought to the full extent of the policies. Nothing contained in this Agreement or any other agreement relating to the City or its operations shall limit the application of such insurance coverage.

C. None of the insurance coverages required herein will be in compliance with the requirements of this section if they include any limiting endorsement which substantially impairs the coverages set forth herein (e.g., elimination of contractual liability or reduction of discovery period), unless the endorsement has first been submitted to the City and approved in writing.

D. Certificates of insurance will not be accepted in lieu of required endorsements, and submittal of certificates without required endorsements may delay commencement of the Project. It is Consultant’s obligation to ensure timely compliance with all insurance submittal requirements as provided herein.

E. Consultant agrees to ensure that subconsultants and subcontractors, if any, and any other parties involved with the Project who are brought onto or involved in the Project by Consultant, provide the same minimum insurance coverage required of Consultant.

Consultant agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section.

Consultant agrees that upon request, all agreements with subcontractors and others engaged in the Project will be submitted to the City for review.

F. Consultant agrees to provide immediate written notice to City of any claim, demand or loss against Consultant arising out of the Work or Services performed under this Agreement and for any other claim, demand or loss which may reduce the insurance available to pay claims, demands or losses arising out of this Agreement.

6. INDEMNIFICATION
To the fullest extent permitted by law, Consultant shall defend (at Consultant’s sole cost and expense with legal counsel reasonably acceptable to City), indemnify, protect, and hold harmless City, its officials, officers, employees, agents and volunteers (collectively the “Indemnified Parties”), from and against any and all liabilities, actions, suits, claims, demands, losses, costs, judgments, arbitration awards, settlements, damages, demands, orders, penalties, and expenses including legal costs and attorney fees (collectively “Claims”), including but not limited to Claims arising from injuries to or death of persons (Consultant’s employees included), for damage to property, including property owned by City, or from any violation of any federal, state, or local law or ordinance, which Claims arise out of, pertain to, or are related to

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Packet Pg. 502 Attachment: Proposed Security Patrol Services Agreement with High Level Security Solutions, Inc (3219 : Patrol Services Agreement) 1775903.1
13 Consultant’s performance under this Agreement. Under no circumstances shall the insurance requirements and limits set forth in this Agreement be construed to limit Consultant’s indemnification obligation or other liability hereunder. Notwithstanding the foregoing, such obligation to defend, hold harmless, and indemnify the City, its elected and appointed officials, officers, employees, agents and volunteers, shall not apply to the extent that such Claims arise out of, pertain to, or are related to the City's sole negligence, active negligence, or willful misconduct.

7. REPORTS AND RECORDS

7.1 Accounting Records. Consultant shall keep complete, accurate, and detailed accounts of all time, costs, expenses, and expenditures pertaining in any way to this Agreement.

Consultant shall keep such books and records as shall be necessary to properly perform the Services required by this Agreement and to enable the Contract Officer to evaluate the performance of such Services. The Contract Officer shall have full and free access to such books and records at all reasonable times, including the right to inspect, copy, audit, and make records and transcripts from such records.

7.2 Reports. Consultant shall periodically prepare and submit to the Contract Officer such reports concerning the performance of the Services required by this Agreement as the Contract Officer shall require. Consultant hereby acknowledges that the City is greatly concerned about the cost of the Work and Services to be performed pursuant to this Agreement.

For this reason, Consultant agrees that if Consultant becomes aware of any facts, circumstances, techniques, or events that may or will materially increase or decrease the cost of the Work or Services contemplated herein or, if Consultant is providing design services, the cost of the project being designed, Consultant shall promptly notify the Contract Officer of such fact, circumstance, technique, or event and the estimated increased or decreased cost related thereto and, if Consultant is providing design services, the estimated increased or decreased cost estimate for the project being designed.

7.3 Ownership of Documents. All drawings, specifications, reports, records, documents, memoranda, correspondence, computations, and other materials prepared by Consultant, its employees, subconsultants, subcontractors and agents in the performance of this Agreement shall be the property of City and shall be promptly delivered to City upon request of the Contract Officer or upon the termination of this Agreement, and Consultant shall have no claim for further employment or additional compensation as a result of the exercise by City of its full rights of ownership of the documents and materials hereunder. Consultant may retain copies of such documents for its own use. Consultant shall have an unrestricted right to use the concepts embodied therein. Consultant shall ensure that all of its subconsultants and subcontractors shall provide for assignment to City of any documents or materials prepared by them, and in the event Consultant fails to secure such assignment, Consultant shall indemnify City for all damages resulting therefrom.

7.4 Release of Documents. All drawings, specifications, reports, records, documents, and other materials prepared by Consultant in the performance of services under this Agreement shall not be released publicly without the prior written approval of the Contract

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Packet Pg. 503 Attachment: Proposed Security Patrol Services Agreement with High Level Security Solutions, Inc (3219 : Patrol Services Agreement) 1775903.1
14 Officer. All information gained by Consultant in the performance of this Agreement shall be considered confidential and shall not be released by Consultant without City’s prior written authorization.

7.5 Audit and Inspection of Records. After receipt of reasonable notice and during the regular business hours of City, Consultant shall provide City, or other agents of City, such access to Consultant’s books, records, payroll documents, and facilities as City deems necessary to examine, copy, audit, and inspect all accounting books, records, work data, documents, and activities directly related to Consultant’s performance under this Agreement. Consultant shall maintain such books, records, data, and documents in accordance with generally accepted accounting principles and shall clearly identify and make such items readily accessible to such parties during the term of this Agreement and for a period of three (3) years from the date of final payment by City hereunder.

8. ENFORCEMENT OF AGREEMENT

8.1 California Law and Venue. This Agreement shall be construed and interpreted both as to validity and as to performance of the Parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim, or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of Orange, State of California, or any other appropriate court in such County, and Consultant covenants and agrees to submit to the personal jurisdiction of such court in the event of such action.

8.2 Interpretation. This Agreement shall be construed as a whole according to its fair language and common meaning to achieve the objectives and purposes of the Parties. The terms of this Agreement are contractual and the result of negotiation between the Parties.

Accordingly, any rule of construction of contracts (including, without limitation, California Civil Code Section 1654) that ambiguities are to be construed against the drafting party, shall not be employed in the interpretation of this Agreement. The caption headings of the various sections and paragraphs of this Agreement are for convenience and identification purposes only and shall not be deemed to limit, expand, or define the contents of the respective sections or paragraphs.

8.3 Termination. City may terminate this Agreement for any reason, with or without cause, upon giving Consultant seven (7) days written notice. Upon such notice, City shall pay Consultant for Services performed through the date of termination. Upon receipt of such notice, Consultant shall immediately cease all work under this Agreement, unless the notice provides otherwise. Thereafter, Consultant shall have no further claims against the City under this Agreement. Upon termination of the Agreement pursuant to this section, Consultant shall submit to the City an invoice for work and services performed prior to the date of termination. In addition, Consultant reserves the right to terminate this Agreement at any time upon sixty (60) days written notice to the City, except that where termination is due to material default by the City, the period of notice may be such shorter time as the Consultant may determine.

8.4 Default of Consultant.

A. Consultant’s failure to comply with any provision of this Agreement shall

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Packet Pg. 504 Attachment: Proposed Security Patrol Services Agreement with High Level Security Solutions, Inc (3219 : Patrol Services Agreement) 1775903.1
15 constitute a default.

B. If the City Manager, or City Manager’s designee, determines that Consultant is in default in the performance of any of the terms or conditions of this Agreement, he/she shall notify Consultant in writing of such default. Consultant shall have ten (10) days, or such longer period as City may designate, to cure the default by rendering satisfactory performance. In the event Consultant fails to cure its default within such period of time, City shall have the right, notwithstanding any other provision of this Agreement, to terminate this Agreement without further notice and without prejudice of any remedy to which City may be entitled at law, in equity, or under this Agreement. Consultant shall be liable for any and all reasonable costs incurred by City as a result of such default. Compliance with the provisions of this section shall not constitute a waiver of any City right to take legal action in the event that the dispute is not cured, provided that nothing herein shall limit City’s right to terminate this Agreement without cause pursuant to Section 8.3.

C. If termination is due to the failure of the Consultant to fulfill its obligations under this Agreement, City may, after compliance with the provisions of Section

8.4(B), take over the work and prosecute the same to completion by contract or otherwise, and the Consultant shall be liable to the extent that the total cost for completion of the Services required hereunder exceeds the Maximum Contract Amount (provided that the City shall use reasonable efforts to mitigate such damages), and City may withhold any payments to the Consultant for the purpose of set-off or partial payment of the amounts owed the City as previously stated. The withholding or failure to withhold payments to Consultant shall not limit Consultant’s liability for completion of the Services as provided herein.

8.5 Waiver. No waiver of any provision of this Agreement shall be effective unless in writing and signed by a duly authorized representative of the Party against whom enforcement of a waiver is sought. Any waiver by the Parties of any default or breach of any covenant, condition, or term contained in this Agreement, shall not be construed to be a waiver of any subsequent or other default or breach, nor shall failure by the Parties to require exact, full, and complete compliance with any of the covenants, conditions, or terms contained in this Agreement be construed as changing the terms of this Agreement in any manner or preventing the Parties from enforcing the full provisions hereof.

8.6 Rights and Remedies Cumulative. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the Parties are cumulative and the exercise by either Party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other Party.

8.7 Legal Action. In addition to any other rights or remedies, either Party may take legal action, in law or in equity, to cure, correct or remedy any default, to recover damages for any default, to compel specific performance of this Agreement, to obtain declaratory or injunctive relief, or to obtain any other remedy consistent with the purposes of this Agreement.

8.8 Attorneys’ Fees. In the event any dispute between the Parties with respect to this

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Packet Pg. 505 Attachment: Proposed Security Patrol Services Agreement with High Level Security Solutions, Inc (3219 : Patrol Services Agreement) 1775903.1
16 Agreement results in litigation or any non-judicial proceeding, the prevailing Party shall be entitled, in addition to such other relief as may be granted, to recover from the non-prevailing Party all reasonable costs and expenses, including but not limited to reasonable attorneys’ fees, expert witness fees, court costs and all fees, costs, and expenses incurred in any appeal or in collection of any judgment entered in such proceeding. To the extent authorized by law, in the event of a dismissal by the plaintiff or petitioner of the litigation or non-judicial proceeding within thirty (30) days of the date set for trial or hearing, the other Party shall be deemed to be the prevailing Party in such litigation or proceeding.

9. CITY OFFICERS AND EMPLOYEES: NON-DISCRIMINATION

9.1 Non-liability of City Officers and Employees. No officer or employee of the City shall be personally liable to the Consultant, or any successor-in-interest, in the event of any default or breach by the City or for any amount which may become due to the Consultant or to its successor, or for breach of any obligation of the terms of this Agreement.

9.2 Conflict of Interest. No officer or employee of the City shall have any financial interest, direct or indirect, in this Agreement nor shall any such officer or employee participate in any decision relating to the Agreement which effects his or her financial interest or the financial interest of any corporation, partnership, or association in which they are, directly or indirectly, interested in violation of any state statute or regulation. Consultant represents and warrants that it has not paid or given and will not pay or give any third party any money or other consideration in exchange for obtaining this Agreement.

9.3 Covenant Against Discrimination. In connection with its performance under this Agreement, Consultant shall not discriminate against any employee or applicant for employment because of race, disability, medical condition, religion, color, sex, sexual orientation, age, marital status, ancestry, or national origin. Consultant shall ensure that applicants are employed, and that employees are treated during their employment, without regard to their race, disability, medical condition, religion, color, sex, sexual orientation, age, marital status, ancestry, or national origin. Such actions shall include, but not be limited to, the following: employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship.

10. MISCELLANEOUS PROVISIONS

10.1 Intentionally omitted.

10.2 Notices. All notices or other communications required or permitted hereunder shall be in writing, and shall be personally delivered, sent by registered or certified mail, postage prepaid, return receipt requested, or delivered or sent by facsimile with attached evidence of completed transmission, and shall be deemed received upon the earlier of (i) the date of delivery to the address of the person to receive such notice if delivered personally or by messenger or overnight courier; (ii) five (5) business days after the date of posting by the United States Post Office if by mail; or (iii) when sent if given by facsimile. Notices or other communications shall be addressed as follows:

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Packet Pg. 506 Attachment: Proposed Security Patrol Services Agreement with High Level Security Solutions, Inc (3219 : Patrol Services Agreement) 1775903.1
17 To City: City of Laguna Hills
Attention: City Manager
24035 El Toro Road
Laguna Hills, California 92653
Telephone: (949) 707-2600
Facsimile: (949) 707-2633
To Consultant: High Level Security Solutions, Inc.

Attention: Tony Castillo, Jr., CEO
7 Bainbridge Avenue
Ladera Ranch, California 92694
Telephone: (949) 289-9864

10.3 Entire Agreement. This Agreement constitutes the entire agreement between the Parties and supersedes all prior negotiations, arrangements, agreements, representations, and understandings, if any, made by or among the Parties with respect to the subject matter hereof.

No amendments or other modifications of this Agreement shall be binding unless executed in writing by both Parties hereto, or their respective successors, assigns, or grantees.

10.4 Severability. Whenever possible, each provision of this Agreement shall be interpreted in such a manner as to be effective and valid under applicable law, but if any provision of this Agreement shall be determined to be invalid by a final judgment or decree of a court of competent jurisdiction, such provision shall be ineffective only to the extent of such prohibition or invalidity, without invalidating the reminder of that provision, or the remaining provisions of this Agreement unless the invalid provision is so material that its invalidity deprives either Party of the basic benefit of their bargain or renders this Agreement meaningless.

10.5 Successors in Interest. This Agreement shall be binding upon and inure to the benefit of the Parties’ successors and assignees.

10.6 Third Party Beneficiary. Nothing contained in this Agreement is intended to confer, nor shall this Agreement be construed as conferring, any rights, including, without limitation, any rights as a third-party beneficiary or otherwise, upon any entity or person not a party hereto.

10.7 Recitals. The above-referenced Recitals are hereby incorporated into the Agreement as though fully set forth herein and each Party acknowledges and agrees that such Party is bound, for purposes of this Agreement, by the same.

10.8. Corporate Authority. Each of the undersigned represents and warrants that (i) the Party for which he/she is executing this Agreement is duly authorized and existing, (ii) he/she is duly authorized to execute and deliver this Agreement on behalf of the Party for which he/she is signing, (iii) by so executing this Agreement, the Party for which he/she is signing is formally bound to the provisions of this Agreement, and (iv) the entering into this Agreement does not

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Packet Pg. 507 Attachment: Proposed Security Patrol Services Agreement with High Level Security Solutions, Inc (3219 : Patrol Services Agreement) 1775903.1
18 violate any provision of any other Agreement to which the Party for which he/she is signing is bound.

10.9 Labor Code Requirements.

A. 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 Work or Services are being performed as part of an applicable "public works" or "maintenance" project, as defined by the Prevailing Wage Laws, and since 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 Work or 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.

The foregoing indemnity shall survive termination of this Agreement.

B. DIR Registration. If the Work or Services are being performed as part of an applicable "public works" or "maintenance" project, 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. This Project may also be subject to compliance monitoring and enforcement by the DIR. It shall be Contractor's sole responsibility to comply with all applicable registration and labor compliance requirements, including the submission of payroll records directly to the DIR.

10.10 Counterparts. This Agreement may be signed in counterparts, each of which shall constitute an original.
[SIGNATURES ON NEXT PAGE]

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Packet Pg. 508 Attachment: Proposed Security Patrol Services Agreement with High Level Security Solutions, Inc (3219 : Patrol Services Agreement)

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Packet Pg. 509 Attachment: Proposed Security Patrol Services Agreement with High Level Security Solutions, Inc (3219 : Patrol Services Agreement) 1775903.1
EXHIBIT “A”
CONSULTANT’S PROPOSAL/ SCOPE OF SERVICES
DATED: June 16, 2023

SCOPE OF SERVICES FOR PROJECT

INCLUDING,

SCHEDULE OF PERFORMANCE
AND

SCHEDULE OF COMPENSATION/ HOURLY RATES/ FEES

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Packet Pg. 510 Attachment: Proposed Security Patrol Services Agreement with High Level Security Solutions, Inc (3219 : Patrol Services Agreement) HIGH LEVEL SECURITY SOLUTIONS, Inc.
7 Bainbridge Ave, Ladera Ranch, CA 92694
949-289-9864
[email protected]
PPO# 14398
June 16, 2023

COST PROPOSAL
Our rates are established on an hourly rate and are all-inclusive. There are no additional charges for support, supervision, standard equipment or administrative overhead.

Upon acceptance, prices quoted in this proposal are firm for twelve (12) months.

Schedule of Performance: July 1, 2023 to June 30, 2024.

Patrol Hours: Patrol hours will be from 8:00 p.m. to 4:00 a.m., seven (7) days per week.

Scope of Service: Up to two, one-manned armed security officers each with their own vehicle.

The vehicles will be properly equipped with a light bar overhead and clearly marked High Level Security Solutions, Inc. Armed security officers will be properly trained, equipped, and uniformed.

Security Officers will drive all residential neighborhoods, shopping centers, and public facilities, at the direction of the City Manager of designee, in order to enhance public welfare and safety.

Security Officers will not carry out law enforcement actions, but will observe and report all suspicious activity to the Orange County Sheriff’s Department (OCSD) for fast response. OCSD can be reached at (714) 647-7000 or (949) 770-6011.

RATES
Security Officer Hourly Rate Holiday Rate OT RATE
Armed Officer $65.00 $130.00 $97.50
(Per hour/Per Officer/Per Vehicle)
Rates includes marked patrol vehicle.

Billing Terms: Net 15 days, billing cycle is 28 days.

HLSS will notify City’s City Manager in writing via email with 24-hours advanced notice if a shift cannot be filled, or if there any changes in service.

4.15.a
Packet Pg. 511 Attachment: Proposed Security Patrol Services Agreement with High Level Security Solutions, Inc (3219 : Patrol Services Agreement) City of Laguna Hills
City Council/Planning Agency
Staff Report
DATE: June 27, 2023
TO: Chair and Agency Members
FROM: Joe Ames
Public Works Director/City Engineer
ISSUE: Adoption of a Resolution Making Findings of General Plan Consistency for the Proposed 2023/2024 Fiscal Year Capital Improvement Program RECOMMENDATION: That the Planning Agency adopt a Resolution entitled: “A

RESOLUTION OF THE PLANNING AGENCY OF THE CITY OF LAGUNA HILLS, CALIFORNIA, FINDING THAT THE PROPOSED 2023/2024 FISCAL YEAR CAPITAL IMPROVEMENT

PROGRAM CONFORMS WITH THE GENERAL PLAN OF THE CITY OF LAGUNA HILLS PURSUANT TO CALIFORNIA GOVERNMENT CODE SECTION 65401.”
SUMMARY:

In accordance with Section 65401 of the California Government Code, a Capital Improvement Program (CIP) is required to annually be submitted to the City's Planning Agency for review and determination as to its conformance with the adopted General Plan. Staff has prepared this report outlining the General Plan Goals that support the various Capital Improvement Projects as are included in the next fiscal year budget.

Accordingly, Staff recommends that the Planning Agency make a finding that the 2023/2024 fiscal year projects included in the CIP are in conformance with the General Plan by adopting the proposed Resolution.

BACKGROUND:

California Government Code Section 65401 requires that departments within municipalities responsible for implementing CIP projects prepare and present the following to the Planning Agency: 1) A comprehensive list of the proposed CIPs for the following budget cycle; and 2) A report as to conformity of that plan with the adopted

5.4.1 Packet Pg. 512
General Plan Conformity Report CIP FY 2023/2024
June 27, 2023

General Plan.

The multi-year CIP was adopted by the City Council on June 27, 2023, to include projects in the 2023/2024 fiscal year. The specific projects included in the next fiscal year’s CIP, along with the accompanying General Plan Goals they support, are described below. The identified CIP project numbers correspond to the budget project numbers and categories as listed in Exhibit A for the attached Resolution.

Streets, Signals, and Lighting (CIP 100-series)
The following project meets Mobility Goal M‐1 (Provide a safe and efficient local transportation system consistent with the general County standards and the regional system) and Mobility Goal M‐2 (Implement improvements that foster improved traffic safety on the circulation system for all drivers, pedestrians, and cyclists). • Citywide Local Street Rehabilitation Project (CIP 101) ‐ Provides for as-needed removal and replacement of deficient asphalt pavement and a new finish course of asphalt pavement, and may include removal and replacement of sidewalk, ramps and walkways, removal and replacement of curb and gutter, driveway aprons, and driveways within the public right-of-way, or the grinding of uplifted sidewalk panels within the public right-of-way.
• Paseo de Valencia Pavement Rehabilitation Project (CIP 104) ‐ Provides for asneeded removal and replacement of deficient asphalt pavement and a new finish course of asphalt pavement, and may include removal and replacement of sidewalk, ramps and walkways, removal and replacement of curb and gutter, driveway aprons, and driveways within the public right-of-way, or the grinding of uplifted sidewalk panels within the public right-of-way. • Citywide Concrete Repair Project (CIP 106) ‐ Provides for as-needed removal and replacement of deficient sidewalk, ramps and walkways, removal and replacement of curb and gutter, driveway aprons, and driveways within the public right-of-way, or the grinding of uplifted sidewalk panels within the public right-of-way. • La Paz Road Pavement Rehabilitation Project (CIP 109) ‐ Provides for as-needed removal and replacement of deficient asphalt pavement and a new finish course of asphalt pavement, and may include removal and replacement of sidewalk, ramps and walkways, removal and replacement of curb and gutter, driveway aprons, and driveways within the public right-of-way, or the grinding of uplifted sidewalk

5.4.1 Packet Pg. 513
General Plan Conformity Report CIP FY 2023/2024
June 27, 2023

panels within the public right-of-way.
• Replacement of Internally Illuminated Street Name Signs (CIP 153) - Replace antiquated and deteriorated fluorescent tube internally illuminated street name signs (ILSNS) with light emitting diode (LED) modern signs with updated street names on all signs.
• Traffic Signal Improvements/Coordination Projects (CIP 168) - This project will replace antiquated video detection systems at 25 intersections with new radar detection in FY 2023/2024, and will interconnect traffic signals, provide for timing/coordination plans, synchronize traffic signals and connect individual locations to a central control.
• Access Ramps (CIP 170) - Installation of access ramps meeting Federal and State approved design standards at all intersections as required by the Americans with Disability Act. Approximately 1000 ramps will eventually be constructed for all intersections in the City not currently meeting the required standards. This project can be phased over several years.

Parks (CIP 200-series)
The following project meets Conservation and Open Space Goal COS‐2 (Expand and maintain the City's integrated parks, recreation, and trails system to meet the needs of residents of all ages)
• Community Center and Sports Complex Field Renovations (CIP 238) ‐ Provides for the replacement of sports turf at the Community Center and Sports Complex on two soccer fields every other year and as needed irrigation and drainage modifications/ reconstruction. The baseball fields at the Community Center and at Cabot Park receive additional maintenance at the same time.

Streetscape (CIP 300-series)
The following projects meet Conservation and Open Space Goal COS-1 (Manage limited resources so that future generations can enjoy the environmental and scenic wealth this community has to offer) and Mobility Goal M-4 (Enhance the City’s streetscapes and beautify the overall driving experience in Laguna Hills) No projects proposed in FY 2023/2024.

5.4.1 Packet Pg. 514
General Plan Conformity Report CIP FY 2023/2024
June 27, 2023

Flood Control and Water Quality (CIP 400-series)
The following projects meet Conservation and Open Space Goal COS‐1 (Manage limited resources so that future generations can enjoy the environmental and scenic wealth this community has to offer).
• Storm Drain/Slope Repairs (CIP 403) – Stand-by funding for drainage or slope repair projects resulting from storm events causing expected infrastructure impacts. • Water Quality Improvements (CIP 412) - Install debris gates at inlets to catch basins, and in-basin trash screens, at approximately 600 storm drain entry locations throughout the City to reduce the influx of litter, leaves and soil into the storm drain system.

Public Facilities (CIP 500-series)
The following projects meet Community Services and Facilities Goal CSF‐1 (Establish and maintain a high level of community facilities and services to meet the needs of the community and enhance the quality of life in Laguna Hills) and Conservation and Open Space Goal COS‐2 (Expand and maintain the City's integrated parks, recreation, and trails system to meet the needs of residents of all ages). • Community Center Renovation (CIP 513) ‐ This project provides for various maintenance and equipment replacement at the Community Center building including replacement/modification of exterior doors to meet ADA compliance, backup generator, electrical system upgrades, fire panel replacement, refurbishment of the dance room floor, upgrades to the Heritage Room floors and stage floor, new storage loft/racking system in gym storage room, scoreboard replacement for gym, addition of air conditioning to gym, painting and restoration of metal fencing, restroom fixture and surface enhancements and replacements.

Trails and Open Space (CIP 600-series)
No projects proposed in FY 2023/2024.

Staff recommends that the Planning Agency find that the 2023/2024 fiscal year projects included in the CIP are in conformance with the City's General Plan by adoption of the attached Resolution.

5.4.1 Packet Pg. 515
General Plan Conformity Report CIP FY 2023/2024
June 27, 2023

CEQA FINDINGS:

The Planning Agency finds that this action is exempt from the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Section 15061(b)(3) since it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. This General Plan conformity determination does not constitute “approval” of any of the listed projects and, for that reason, this action of the Planning Agency is exempt from the requirements of CEQA. All projects listed in the CIP will be reviewed individually pursuant to the requirements in CEQA and the Planning Agency’s review for General Plan consistency does not commit the City to any one of the listed projects. In addition, CEQA Guidelines Section 15378 specifically excludes organizational or administrative activities of government that will not result in direct or indirect physical changes in the environment.

ATTACHMENTS:
• Proposed Resolution for General Plan Conformity
• Exhibit A - Capital Improvement Projects
• Exhibit B - General Plan Conformity Findings

5.4.1 Packet Pg. 516
RESOLUTION NO. PA2023-06-27-X

A RESOLUTION OF THE PLANNING AGENCY OF THE

CITY OF LAGUNA HILLS, CALIFORNIA, FINDING THAT
THE PROPOSED 2023/2024 FISCAL YEAR CAPITAL

IMPROVEMENT PROGRAM CONFORMS WITH THE

GENERAL PLAN OF THE CITY OF LAGUNA HILLS

PURSUANT TO CALIFORNIA GOVERNMENT CODE
SECTION 65401
The Planning Agency of the City of Laguna Hills, California, hereby finds, determines, declares, and resolves as follows:

WHEREAS, on December 20, 1991, the City of Laguna Hills was established as a duly organized municipal corporation of the State of California; and WHEREAS, on June 28, 1994, the City of Laguna Hills adopted its General Plan incorporating all State mandated elements; and
WHEREAS, on July 14, 2009, the City of Laguna Hills adopted an update to the Laguna Hills General Plan, which has subsequently been amended from time to time; and
WHEREAS, California Government Code Section 65401 requires the Planning Agency to annually review a comprehensive list of proposed public works projects recommended for planning, initiation, or construction during the ensuing fiscal year, and report to City Council as to conformity of that coordinated program with the City’s General Plan; and
WHEREAS, the City Manager of the City of Laguna Hills has prepared a Six Year Capital Improvement Program Project Summary List and Budget, which identifies proposed 2023/2024 fiscal year public works projects; and WHEREAS, on June 27, 2023, at a regularly scheduled meeting, the Planning Agency reviewed and considered the comprehensive list of 2023/2024 fiscal year public works projects included in the City of Laguna Hills Six Year Capital Improvement Program Project Summary List and Budget, and concluded said review prior to the adoption of this Resolution.

NOW, THEREFORE, THE PLANNING AGENCY OF THE CITY OF

LAGUNA HILLS, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE, AND ORDER AS FOLLOWS:

SECTION 1. The foregoing recitals are true and correct and are incorporated herein by reference.

SECTION 2. Each of the 2023/2024 fiscal year public works projects included in the City of Laguna Hills Six Year Capital Improvement Program Project Summary List and

5.4.1.a
Packet Pg. 517 Attachment: Proposed Resolution for General Plan Conformity (3198 : General Plan Conformity Report CIP FY 2023/2024) Resolution No. PA2023-06-27-X

Budget, attached hereto as Exhibit “A” and incorporated herein by reference conforms with the City’s General Plan based on the information and findings set forth in Exhibit “B”, attached hereto and incorporated herein by reference.

SECTION 3. The Planning Agency finds that this action is exempt from the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Section 15061(b)(3) since it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. This General Plan conformity determination does not constitute “approval” of any of the listed projects and, for that reason, this action of the Planning Agency is exempt from the requirements of CEQA. All projects listed in the CIP will be reviewed individually pursuant to the requirements in CEQA and the Planning Agency’s review for General Plan consistency does not commit the City to any one of the listed projects. In addition, CEQA guidelines Section 15378 specifically excludes organizational or administrative activities of government that will not result in direct or indirect physical changes in the environment.

SECTION 4. Based on the findings and conclusions set forth above, this Resolution shall serve as the Planning Agency’s report regarding the conformity of the 2022/2023 fiscal year public works projects included in the City of Laguna Hills Six Year Capital Improvement Program Project Summary List and Budget with the City’s adopted General Plan as required by California Government Code Section 65401.

PASSED, APPROVED, AND ADOPTED this 27th day of June 2023. ____________________________________

JANINE HEFT, CHAIR
ATTEST:
______________________________________

JENNIFER LEE, CITY CLERK

5.4.1.a
Packet Pg. 518 Attachment: Proposed Resolution for General Plan Conformity (3198 : General Plan Conformity Report CIP FY 2023/2024) Resolution No. PA2023-06-27-X

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss

CITY OF LAGUNA HILLS )
I, Jennifer Lee, City Clerk of the City of Laguna Hills, California, DO HEREBY CERTIFY that the foregoing is a true and correct copy of Resolution No. PA2023-06-27-X adopted by the Planning Agency of the City of Laguna Hills, California, at a Regular Meeting thereof held on the 27th day of June 2023, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
(SEAL)
_____________________________________

JENNIFER LEE, CITY CLERK

5.4.1.a
Packet Pg. 519 Attachment: Proposed Resolution for General Plan Conformity (3198 : General Plan Conformity Report CIP FY 2023/2024) η WƌŽũĞĐƚEĂŵĞ

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Version 4 (updated for June 27, 2023) 84

5.4.1.b
Packet Pg. 520
Attachment: Exhibit A - Capital Improvement Projects [Revision 1] (3198 : General Plan Conformity Report CIP FY 2023/2024)

EXHIBIT B
2023/2024 FISCAL YEAR

CAPITAL IMPROVEMENT PROGRAM

PROJECTS GENERAL PLAN CONFORMITY

FINDINGS
Streets, Signals, and Lighting (CIP 100-series)
The following project meets Mobility Goal M‐1 (Provide a safe and efficient local transportation system consistent with the general County standards and the regional system) and Mobility Goal M‐2 (Implementimprovementsthatfosterimproved traffic safety on the circulation system for all drivers, pedestrians, and cyclists).
• Citywide Local Street Rehabilitation Project (CIP 101) ‐ Provides for as-needed removal and replacement of deficient asphalt pavement and a new finish course of asphalt pavement, and may include removal and replacement of sidewalk, ramps and walkways, removal and replacement of curb and gutter, driveway aprons, and driveways within the public right-of-way, or the grinding of uplifted sidewalk panels within the public right-of-way.
• Paseo de Valencia Pavement Rehabilitation Project (CIP 104) ‐ Provides for as-needed removal and replacement of deficient asphalt pavement and a new finish course of asphalt pavement, and may include removal and replacement of sidewalk, ramps and walkways, removal and replacement of curb and gutter, driveway aprons, and driveways within the public right-of-way, or the grinding of uplifted sidewalk panels within the public right-of-way.
• Citywide Concrete Repair Project (CIP 106) ‐ Provides for as-needed removal and replacement of deficient sidewalk, ramps and walkways, removal and replacement of curb and gutter, driveway aprons, and driveways within the public right-of-way, or the grinding of uplifted sidewalk panels within the public right-of-way. • La Paz Road Pavement Rehabilitation Project (CIP 109) ‐ Provides for as-needed removal and replacement of deficient asphalt pavement and a new finish course of asphalt pavement, and may include removal and replacement of sidewalk, ramps and walkways, removal and replacement of curb and gutter, driveway aprons, and driveways within the public right-of-way, or the grinding of uplifted sidewalk panels within the public right-of-way.
• Replacement of Internally Illuminated Street Name Signs (CIP 153) - Replace antiquated and deteriorated fluorescent tube internally illuminated street name signs (ILSNS) with

5.4.1.c
Packet Pg. 521 Attachment: Exhibit B - General Plan Conformity Findings [Revision 1] (3198 : General Plan Conformity Report CIP FY 2023/2024) light emitting diode (LED) modern signs with updated street names on all signs. • Traffic Signal Improvements/Coordination Projects (CIP 168) - This project will replace antiquated video detection systems at 25 intersections with new radar detection in FY 2023-2024, and will interconnect traffic signals, provide for timing/coordination plans, synchronize traffic signals and connect individual locations to a central control. • Access Ramps (CIP 170) - Installation of access ramps meeting Federal and State approved design standards at all intersections as required by the Americans with Disability Act. Approximately 1000 ramps will eventually be constructed for all intersections in the City not currently meeting the required standards. This project can be phased over several years.
• La Paz Road Widening (CIP 184) - The widening of easterly bound La Paz Road from McIntrye Street to Cabot Road to add a third through lane. Right of way acquisition will be required.

Parks (CIP 200-series)
The following project meets Conservation and Open Space Goal COS‐2 (Expand and maintain the City's integrated parks, recreation, and trails system to meet the needs of residents of all ages) • Community Center and Sports Complex Field Renovations (CIP 238) ‐ Provides for the replacement of sportsturf at the Community Center and Sports Complex on two soccer fields every other year and as needed irrigation and drainage modifications/ reconstruction. The baseball fields at the Community Center and at Cabot Park receive additional maintenance at the same time.

Streetscape (CIP 300-series)
The following projects meet Conservation and Open Space Goal COS-1 (Manage limited resources so that future generations can enjoy the environmental and scenic wealth this community has to offer) and Mobility Goal M-4 (Enhance the City’s streetscapes and beautify the overall driving experience in Laguna Hills)
No projects proposed in FY 2023-2024.

Flood Control and Water Quality (CIP 400-series)
The following projects meet Conservation and Open Space Goal COS‐1 (Manage limited resources so that future generations can enjoy the environmental and scenic wealth this community hasto offer).
• Storm Drain/Slope Repairs (CIP 403) – Stand-by funding for drainage or slope repair projects resulting from storm events causing expected infrastructure impacts.

5.4.1.c
Packet Pg. 522 Attachment: Exhibit B - General Plan Conformity Findings [Revision 1] (3198 : General Plan Conformity Report CIP FY 2023/2024) • Water Quality Improvements (CIP 412) - Install debris gates at inlets to catch basins, and in-basin trash screens, at approximately 600 storm drain entry locations throughout the City to reduce the influx of litter, leaves and soil into the storm drain system.

Public Facilities (CIP 500-series)
The following projects meet Community Services and Facilities Goal CSF‐1 (Establish and maintain a high level of community facilities and services to meet the needs of the community and enhance the quality of life in Laguna Hills) and Conservation and Open Space Goal COS‐2 (Expand and maintain the City's integrated parks, recreation, and trails system to meet the needs of residents of all ages).
• Community Center Renovation (CIP 513) ‐ This project provides for various maintenance and equipment replacement at the Community Center building including replacement/modification of exterior doors to meet ADA compliance, backup generator, electrical system upgrades, fire panel replacement, refurbishment of the dance room floor, upgrades to the Heritage Room floors and stage floor, new storage loft/racking system in gym storage room, scoreboard replacement for gym, addition of air conditioning to gym, painting and restoration of metal fencing, restroom fixture and surface enhancements and replacements.

Trails and Open Space (CIP 600-series)
No projects proposed in FY 2023-2024.

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Packet Pg. 523 Attachment: Exhibit B - General Plan Conformity Findings [Revision 1] (3198 : General Plan Conformity Report CIP FY 2023/2024) City of Laguna Hills
City Council/Planning Agency
Staff Report
DATE: June 27, 2023
TO: Chair and Agency Members
FROM: Larry Longenecker
Community Development Director
ISSUE: Conditional Use Permit (CUP) No. USE-0142-2023, a Request by Aaron Hardy to Establish a Local Area Network Gaming Center in an Existing 1,600 Square-Foot Tenant Space Located at 26548 Moulton Parkway, Suite 48-L
RECOMMENDATION: That the Planning Agency:
1) Conduct a public hearing;
2) Find and determine that the project is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301 of Title 14, Chapter 3 of the California Code of Regulations (Class 1, Existing Facilities); and 3) Adopt a Resolution entitled: “A RESOLUTION OF THE PLANNING AGENCY OF THE

CITY OF LAGUNA HILLS, CALIFORNIA, APPROVING CONDITIONAL USE PERMIT (CUP) NO. USE-0142-2023, A REQUEST BY AARON HARDY TO ESTABLISH A LOCAL AREA NETWORK GAMING CENTER IN AN EXISTING 1,600 SQUARE-FOOT TENANT SPACE LOCATED AT 26548 MOULTON PARKWAY, SUITE 48-L, INCLUDING AN EXEMPTION

FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) PER CEQA GUIDELINES SECTION 15301 OF TITLE 14, CHAPTER 3 OF THE CALIFORNIA CODE OF REGULATIONS (CLASS 1, EXISTING FACILITIES).”
SUMMARY:

Aaron Hardy (“Applicant”) requests approval of a Conditional Use Permit (CUP) to establish “Glitch Game Shack,” a local area network gaming center. The business will be

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Conditional Use Permit No. USE-0142-2023
June 27, 2023

located at 26548 Moulton Parkway, Suite 48-L, an existing 1,600 square-foot tenant space within the Village at Nellie Gail Ranch shopping center (“Center”). The Center is owned by ROIC California, LLC, which has authorized the Applicant to apply for the requested entitlement.

The proposed gaming center will operate seven days a week, from 11:00 a.m. to 11:00 p.m., providing 28 computer gaming stations. Each computer station will be outfitted with top-end gaming hardware, and will be connected to a local server that will have popular games in the market. The business will have a maximum of two employees. As conditioned, the proposed facility will be a complementary addition to the businesses offered at The Village at Nellie Gail Ranch as the Center continues to provide a mix of retail uses and services.

The proposed CUP is consistent with the General Plan’s goals and strategies for the Community Commercial land use designation. Furthermore, the proposed CUP complies with the City of Laguna Hills Development Code. Therefore, staff recommends approval CUP No. USE-0142-2023.

AUTHORITY:

Laguna Hills Municipal Code (“LHMC”) Chapter 9-28 (Table 9-28.020 Community Commercial Uses) identifies Commercial Recreation as an allowed use within the Community Commercial zoning district through an approved CUP. LHMC Section 9-04.030 defines Commercial Recreation to include establishments, such as the proposed gaming center, which provide “amusement, pleasure or sport, diversion…affording relaxation and enjoyment, which is operated primarily for financial gain.” The process the City must follow in reviewing a CUP for the proposed use is found in LHMC Section 9-92.080(C). Staff has prepared findings demonstrating that the proposed CUP complies with the Zoning Code, Community Commercial zoning district, and the General Plan as stated in the Proposed Resolution of Approval (Attachment “A”), and based on these findings recommends approval of the CUP.

BACKGROUND:

The Village at Nellie Gail Ranch (the “Center”) is a 9.87-acre commercial retail center located on the northeast corner of Moulton Parkway and La Paz Road as shown in Figure No. 1 below. The Center was originally approved in 1985 under the County’s jurisdiction (SP85-121P). In 2012, the Center underwent a redevelopment and expansion approved by the Laguna Hills City Council and Planning Agency (SDP/CUP/PUP-12-11-2131). Since

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June 27, 2023

2012, the Center, which is zoned Community Commercial, has remained generally unchanged, and the property maintains coordinated circulation, parking, and landscaping.

Figure No. 1- Aerial Map
The Center includes seven buildings with a combined total of 83,799 square feet of retail space divided between 25 tenant spaces. The uses in the Center currently consist of a mix of fitness studios, service uses, retail, and restaurants, as well as a Smart and Final grocery store. Businesses adjacent to the proposed gaming center include C2 education (Suite K) and Pho Nation (Suite M). The surrounding area consists of existing singlefamily homes to the north and east and existing multi-family residential to the west and south, across Moulton Parkway.

PROPOSAL & ANALYSIS:

The Applicant requests approval of a CUP to establish a local area network gaming center – a commercial recreation use – in an existing 1,600 square-foot tenant space.

According to the Applicant’s Letter of Justification (Attachment B), the proposed business will operate seven days a week, providing customers with 28 computer stations outfitted with top end gaming hardware. Each computer will be connected to a local server that will have popular games in the market. Customers will create an account and purchase time to play online games. Occasionally the gaming center will host online gaming tournaments advertised through their social media. All customers may participate in the online tournaments. The business will have a maximum of two

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June 27, 2023

employees. The gaming center will operate seven days a week, from 11:00 a.m. to 11:00 p.m. The business will also offer prepackaged food and drinks, no alcohol will be on site as conditioned by Condition of Approval No. 25.

The tenant space will require minor interior tenant improvements to convert the existing space to accommodate the gaming center’s needs. No exterior improvements are proposed other than a wall sign. The proposed floor plan includes 28 computer stations, a front reception counter, beverage cooler, and a restroom (Attachment C).

Since the business will operate entirely indoors, no noise impacts are expected and interior doors leading to the gaming center shall remain closed to minimize noise (Condition of Approval No. 20). Staff does not anticipate the proposed use to create any nuisance for the center, however, staff has included Condition of Approval No. 23 to address any issues that may arise regarding security, parking and circulation issues, loitering, and excessive noise.

Parking Analysis
The tenant space for the proposed gaming center is 1,600 square feet. According to LHMC 9-44.050, the combined square footage for restroom and utility areas are exempt from parking requirements, leaving 1,570 square feet subject to the parking requirements of LHMC Table 9-44.A. The parking requirement for “Commercial Recreation Uses” for the proposed gaming center, and similar uses such as arcades, pool halls, and bingo halls, is one parking stall per 150 square feet of gross floor area.

Therefore, the proposed gaming center has a parking requirement of 10 parking stalls, as shown below in Table 1:

Table 1: Proposed Gaming Center Parking Requirements
Total Tenant Square Footage 1,600 SF
Exempted Restroom/ Utility Square
Footage
30 SF
Total Gaming Center Square Footage
Subject to Parking Requirements
1,570 SF
Gaming Center Parking Ratio 1 Stall/150 SF GFA
Minimum Parking Requirement 10 Stalls

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June 27, 2023

A Parking Use Permit (SDPM/CUP/PUP-12-11-2131) was approved in 2012 by the Planning Agency for the Center. As stated in Condition of Approval No. 29 of the approved PUP, if there is any change to the Center such as a change of tenant mix, the Community Development Director can request an updated parking study to address the impacts on the Center. There have been subsequent updates to the parking study to reflect updates in the tenant mix of uses, and the latest, prepared by LL&G, was approved by staff on September 16, 2021. The parking study uses a “blended” analysis of actual parking demand for existing occupancies and a shared parking approach for proposed uses. The previous use of the tenant space for the proposed gaming center was approved as a health club use and required 14 parking spaces. The Center has a total of 434 parking spaces, and with the existing tenancy mix, there is a surplus of 206 spaces on weekdays and 272 spaces on weekends. With the addition of the proposed gaming center, there will be a surplus of 210 spaces on weekdays and 276 on weekends.

Adequate parking is provided on site to accommodate the proposed tenant mix, inclusive of the proposed gaming center.

CONCLUSION:

Staff supports approval of the proposed CUP, as conditioned. The proposed gaming center complies with all requirements of the General Plan, and is consistent with the Land Use Element. Table LU-1 of the General Plan describes the purpose and intent of land uses within the Community Commercial designation to provide general shopping and commercial service needs of area residents. The proposed commercial recreation use is compatible with the General Plan’s description of the desired uses, by providing commercial services to the area residents. The proposed commercial recreation use is permitted with a CUP in the Community Commercial zone and be conducted entirely inside the tenant space. Conditions of Approval have been added to ensure the proposed gaming center will comply with the Laguna Hills Noise Ordinance, with no noise issues anticipated. The proposed CUP complies with all requirements of the LHMC, Community Commercial zoning district, and General Plan. Therefore, staff recommends approval of CUP No. USE-0142-2023.

PUBLIC NOTICE:

The proposed project was advertised in an adjudicated newspaper of general circulation on June 15, 2023. A total of 430 public hearing notices were mailed, which includes all property owners within a 300-foot radius of the subject property, as well as all tenants of the subject property. To date no comments have been received by staff.

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June 27, 2023

CEQA FINDINGS:

Staff has reviewed the proposed project for compliance with the California Environmental Quality Act (CEQA) and determined that this project is categorically exempt from CEQA pursuant to Section 15301 of Title 14, Chapter 3 of the California Code of Regulations (Class 1, Existing Facilities). This exemption applies to the permitting or minor alteration of existing structures.

ATTACHMENTS:
• Attachment A- Proposed Resolution of Approval
• Attachment B- Letter of Justification
• Attachment C- Site and Floor Plans

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1774773.1
RESOLUTION NO. PA2023-06-27-X

A RESOLUTION OF THE PLANNING AGENCY OF THE CITY

OF LAGUNA HILLS, CALIFORNIA, APPROVING
CONDITIONAL USE PERMIT (CUP) NO. USE-0142-2023, A

REQUEST BY AARON HARDY TO ESTABLISH A LOCAL
AREA NETWORK GAMING CENTER IN AN EXISTING 1,600
SQUARE-FOOT TENANT SPACE LOCATED AT 26548
MOULTON PARKWAY, SUITE 48-L, INCLUDING AN

EXEMPTION FROM THE CALIFORNIA ENVIRONMENTAL

QUALITY ACT (CEQA) PER CEQA GUIDELINES SECTION
15301 OF TITLE 14, CHAPTER 3 OF THE CALIFORNIA
CODE OF REGULATIONS (CLASS 1, EXISTING FACILITIES)
The Planning Agency of the City of Laguna Hills, California, hereby finds, determines, declares, and resolves as follows:

WHEREAS, Aaron Hardy (“the Applicant”) has filed an application for Conditional Use Permit (CUP) No. USE-0142-2023, to establish a local area network gaming center – a commercial recreation use – in an existing 1,600 square-foot tenant space located at 26548 Moulton Parkway, Suite 48-L in the Community Commercial zoning district; and
WHEREAS, the Project is hereby found to be Categorically Exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301 (Class 1, Existing Facilities) of Title 14, Chapter 3 of the California Code of Regulations. This exemption applies to the permitting or minor alteration of existing structures; and WHEREAS, the Planning Agency held a duly noticed public hearing and considered public comments and written and oral information and testimony presented by City staff, community residents, and other interested parties at a duly noticed public hearing held on June 27, 2023; and
WHEREAS, all other legal prerequisites to the adoption of this Resolution have occurred.

NOW, THEREFORE, THE PLANNING AGENCY OF THE CITY OF

LAGUNA HILLS, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE, AND ORDER AS FOLLOWS:

SECTION 1. The above recitals are true and correct, and are incorporated herein by reference.

SECTION 2. The Planning Agency hereby determines that the required findings by the City for approval of Conditional Use Permit No.

USE-0142-2023 have been met and made as follows:

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Packet Pg. 530 Attachment: Attachment A- Proposed Resolution of Approval (3213 : Conditional Use Permit No. USE-0142-2023) Resolution No. PA2023-06-27-X

Conditional Use Permit

1. The proposed use is consistent with the General Plan.

The proposed use complies with all requirements of the General Plan, and is consistent with the Land Use Element. Table LU-1 of the General Plan describes the purpose and intent of land uses within the Community Commercial designation to provide general shopping and commercial service needs of area residents. In addition, typical uses allowed include those uses allowed by the Community Commercial designation which consists of general shopping and commercial service needs. The proposed gaming center is compatible with the General Plan’s description of the desired uses in the Community Commercial zone, which implements the Community Commercial land use designation.

2. The nature, condition, and development of adjacent uses, buildings, and structures have been considered and the proposed conditional use will not adversely affect or be materially detrimental to the adjacent uses, buildings, or structures.

The project site is located in the Community Commercial (CC) zoning district, in the southwest portion of Laguna Hills, adjacent to residential uses. The project site is located on the northeast corner of Moulton Parkway and La Paz Road. The surrounding area consists of low density residential uses to the north and east and medium density residential uses to the west and south. The project site consists of seven buildings, with a combined total of 83,799 square feet of retail space divided between 25 tenant spaces and comprises the “Village at Nellie Gail Ranch” shopping center. The uses in the project site consist of a mix of fitness studios, service uses, retail, and restaurants, as well as a Smart and Final grocery store. The proposed gaming center is consistent with other retail and service uses at The Village at Nellie Gail Ranch, located along Moulton Parkway and La Paz Road. The proposed gaming center will be conducted entirely inside the tenant space, ensuring compatibility with the existing uses.

3. The proposed site is adequate in size and shape to accommodate the use and integrate it with the existing and planned uses in the vicinity.

As described above, surrounding uses include residential, commercial, retail and service uses. The project site is 9.87 acres and improved with seven commercial buildings totaling 83,799 square feet. There are 434 parking spaces located on the project site. The project site is typical of other commercial shopping centers in Laguna Hills in terms of the nature of the improvements provided that result in a functioning commercial property.

The existing improvements are sufficient to serve the use and ensure it is properly integrated with existing uses in the vicinity through existing shared improvements on the project site such as utilities, parking, landscaping, and pedestrian and vehicular access. The proposed use is a typical service use

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Packet Pg. 531 Attachment: Attachment A- Proposed Resolution of Approval (3213 : Conditional Use Permit No. USE-0142-2023) Resolution No. PA2023-06-27-X

found in other shopping centers in Laguna Hills and does not require any unique or unusual site improvements to operate. The use will operate entirely within the confines of an existing vacant tenant space on the project site, and the Applicant will make necessary tenant improvements to the tenant space to operate the use.

4. All required development standards prescribed by the Development Code can be achieved.

The 9.87-acre project site is improved with seven commercial buildings totaling 83,799 square feet and 434 parking spaces. The site is typical of other commercial shopping centers in Laguna Hills in terms of the nature of the improvements provided that result in a functioning commercial property.

The existing improvements are sufficient to serve the use consisting of existing shared improvements on the project site such as utilities, parking, landscaping, and pedestrian and vehicular access which comply with the City’s development standards, or will comply as conditioned. The proposed gaming center will be located within an existing building, and tenant upgrades are proposed to serve the use, including accessibility upgrades.

5. That the conditions and limitations placed upon the use are necessary to ensure compatibility with adjacent or abutting uses and the preservation of the public peace, safety, and welfare.

Conditions have been included to ensure the use is compatible with adjacent uses. Such conditions include that all business activities shall take place indoors within the tenant space, and any doors leading to the gaming center facility shall remain closed (not propped open) during business hours (Condition 20) and that the proposed business will ensure that if any nuisances arise, the Applicant with resolve the problem (Condition 23).

These conditions help to ensure that the gaming center will not adversely affect adjacent uses due to excess noise, calls for police services, or property maintenance issues.

NOW, THEREFORE, based upon the above findings, the Planning Agency of the City of Laguna Hills does hereby approve CUP No. USE-0142-2023 subject to the following conditions:

General

1. The following Conditions of Approval shall be binding and enforceable against, and, whenever used herein, the term “Applicant” shall mean and refer to each of the following: Aaron Hardy; ROIC California, LLC the owners(s) and tenant(s) of the property, and each of their respective successors and assigns.

2. Unless the context dictates otherwise, whenever the term “this Permit” is used in the following Conditions of Approval, it shall collectively refer to the Conditional Use Permit (CUP) No. USE-0142-2023, approved pursuant to this

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Packet Pg. 532 Attachment: Attachment A- Proposed Resolution of Approval (3213 : Conditional Use Permit No. USE-0142-2023) Resolution No. PA2023-06-27-X

Resolution, as well as the plans, studies, and exhibits submitted to the City by the Applicant to describe and depict the improvements to be constructed as a part of the Project, and as otherwise modified by these Conditions of Approval.

3. Unless the context dictates otherwise, whenever the term “Project” is used in the following Conditions of Approval, it shall collectively refer to the plans and exhibits submitted to the City by the Applicant to depict the Project, as modified by these Conditions of Approval, including but not limited to the following:
application form (submitted April 5, 2023), Letter of Justification (dated April 28, 2023), and Site Plan/Floor Plan (dated April 28, 2023).

4. To the fullest extent permitted by law, the Applicant shall, at its sole cost and expense, protect, defend, indemnify, and hold harmless the City, its elected and appointed officers and officials, employees, agents, departments, agencies, authorized volunteers, consultants, attorneys, boards, commissions, and committees, and instrumentalities thereof ("Indemnitees"), from and against any and all claims, liabilities, losses, fines, demands, penalties, lawsuits, writs of mandamus, and any other claims or actions or proceedings of any kind whatsoever (whether legal, equitable, declaratory, administrative or adjudicatory in nature), and alternative dispute resolution procedures (including, but not limited to, arbitrations, mediations, and other such procedures), judgments, orders and decisions (collectively "Claims" and “Actions”), brought against the Indemnitees, which seek to attack, challenge, modify, set aside, void, or annul any action of or any permit or approval issued by the Indemnitees (including actions approved by the voters of the City) for, in connection with, or concerning the approval of this Permit. It is expressly understood and agreed that the City shall have the right to approve, which approval will not be unreasonably withheld, the legal counsel providing the defense of the Indemnitees for the Claims and Actions, and that the Applicant shall promptly reimburse the City for all costs and expenses directly and necessarily incurred by the City in the course of the defense, including reasonable attorneys' fees. The City shall promptly notify the Applicant of any Claims and Actions brought against the Indemnitees and shall cooperate in the defense of any such Claims and Actions. If the Applicant fails to so defend the Claims and Actions, the City shall have the right but not the obligation to do so and, if it does, the Applicant shall promptly pay the City's full cost thereof.

5. Approval of this Permit constitutes approval of the proposed Project only to the extent that it complies with the City’s Development Code and any other applicable zoning regulations. Approval does not include any action or findings as to compliance or approval of the Project regarding any other applicable ordinance, regulation, or requirement.

6. Failure to abide by and faithfully comply with any and all Conditions of Approval shall constitute grounds for revocation of this Permit by the Laguna Hills Planning Agency.

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Packet Pg. 533 Attachment: Attachment A- Proposed Resolution of Approval (3213 : Conditional Use Permit No. USE-0142-2023) Resolution No. PA2023-06-27-X

7. The Applicant shall agree in writing to these Conditions of Approval within 30 days of the Planning Agency’s approval.

8. The Conditions of Approval set forth herein include certain development impact fees and other exactions. Pursuant to Government Code §66020(d), these conditions constitute written notice of the amount of such fees, and/or exactions. The Applicant is hereby notified that the 90-day protest period in which the Applicant may protest the fees, dedications, reservation, or exactions imposed on this Project through the Conditions of Approval, commencing from the date of approval of the Project, has begun.

9. Pursuant to City Council Resolution No. 2017-07-11-2, the Applicant shall reimburse the City for any outstanding staff time spent on the processing of this Permit within 60 days of the Planning Agency’s approval.

10.This Permit shall expire and be of no further force or effect if the Permit is not implemented within two years from June 27, 2023.

11.Within 48 hours from Project approval, the Applicant shall submit to the City a check in the amount of $50.00, made payable to the Orange County ClerkRecorder, for filing the Notice of Exemption.

Permitting

12.The Applicant shall be responsible for ensuring applicable building permits are obtained, as required by the 2022 California Building Code, prior to commencement of any work for which a permit is required.

13.All construction shall comply with 2022 California Building, Plumbing, Mechanical, Electrical, Green, and Energy Codes with regard to the applicable occupancy group if applicable. Any work being done will require a full set of plans prepared by a licensed architect/engineer.

14.At the time of document submittal for permit issuance, the Applicant shall demonstrate compliance with California Disabled Accessibility requirements, as required by Chapter 11 of the California Building Code if applicable.

15.The Applicant shall comply with all general construction water quality requirements, as required by the LHMC 5-36.

16.The Applicant shall submit Construction and Demolition Waste Recycling Program paper work if applicable, prior to issuance of permits, as required by Laguna Hills Municipal Code Chapter 5-48 and to comply with mandates of CalRecycle.

17.All documents required for permit issuance shall be accurately labeled and reflect all work, as required by the 2022 California Building Code.

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Packet Pg. 534 Attachment: Attachment A- Proposed Resolution of Approval (3213 : Conditional Use Permit No. USE-0142-2023) Resolution No. PA2023-06-27-X

18.Prior to issuance of building permits, the Applicant shall apply for a Certificate of Use and Occupancy (COUO) for the proposed gaming center, and the Applicant shall obtain the COUO before conducting operations.

19.The Applicant is advised that the business will need to comply with CalRecycle’s requirements of AB 1826 (Mandatory Commercial Organics Recycling), SB 1383 (Short-Lived Climate Pollutants), and AB 341 (Mandatory Commercial Recycling).

Operations

20.All business activities shall take place entirely indoors within the tenant space, and any exterior doors leading to the gaming center facility shall remain closed (not propped open) during business hours to minimize noise impacts.

21.Maximum occupancy of proposed gaming center is 30 occupants.

22.The volume of all sound systems, sound amplification devices, or noise generating activities, if any, shall comply at all times with the noise standards of the City of Laguna Hills Noise Ordinance (LHMC 5-24). Should the City receive complaints related to noise associated with business operations, the Applicant shall work cooperatively with the City to implement further noise attenuation measures to the reasonable satisfaction of the Community Development Director.

23.If at any time in the future the Community Development Director determines the gaming center creates a nuisance, the Applicant shall promptly take subsequent remedial measures to eliminate the nuisance. For purposes of this condition, nuisance conditions include, but are not limited to, the following:
a. Improperly maintained signs or illegal signs;
b. Occupancy exceeding limit set forth in the City's Building Code, City's Fire Code, or this resolution, whichever limit is most stringent; c. Lack of adequate ventilation, sanitation, or plumbing facilities, or a condition that constitutes a fire hazard;
d. Loitering;
e. Excessive noise;
f. Parking congestion;
g. Any other condition or practice declared by state, county, or City statute, code, or regulation to be a public nuisance;
h. Excessive calls for police services as determined by the Police Chief.

24. Violation or failure to comply with any Condition of Approval shall constitute a violation of the permit and shall be grounds for suspension or revocation of the permit (LHMC 9-92).

25.No person shall be permitted to consume alcoholic beverages on the premises.

The sale or serving of alcohol and/or tobacco products on the premises is prohibited.

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Packet Pg. 535 Attachment: Attachment A- Proposed Resolution of Approval (3213 : Conditional Use Permit No. USE-0142-2023) Resolution No. PA2023-06-27-X

26.The hours of operation for the gaming center shall be limited to 11:00 a.m. to 11:00 p.m., daily, unless different hours are expressly authorized by the Community Development Director for a special event.

27.Access to Adult-Oriented pornography web sites or software is prohibited.

28.Electronic game machines, which include computers and other amusement devices, shall not be used for illegal gaming, gambling or any other illegal activities in violation of state or federal law. The Applicant shall be responsible for ensuring that customers do not use any electronic game machine or electronic device for illegal gaming, gambling or any other illegal activities.

29.No electronic game machine, device, computer or other type of station shall be located in any private area, room or booth which is not visible from the main area of the business.

30.Window areas shall not be covered, obstructed, or made opaque in any way, except during daylight hours when blinds or other equivalent window coverings may be used solely for shade purposes.

31.There shall be at least one employee physically on-premises at all times managing all aspects of the business operation during all working hours who shall be at least 18 years of age.

32.The Applicant shall comply with all temporary and permanent sign requirements of the City’s Sign Ordinance, Laguna Hills Municipal Code Chapter 9-42.

33.No smoking, which includes electronic devices that deliver nicotine or other vaporized liquids (Business and Professions Code 22950.5), shall be permitted anywhere within the premises. The Applicant shall at all times comply with all applicable smoking regulations pursuant to state, federal and local law, and as set forth in Laguna Hill Municipal Code Chapter 5-28.

PASSED, APPROVED, AND ADOPTED this 27th day of June 2023. ________________________________

JANINE HEFT, CHAIR
ATTEST:
______________________________________

JENNIFER LEE, CITY CLERK

5.5.1.a
Packet Pg. 536 Attachment: Attachment A- Proposed Resolution of Approval (3213 : Conditional Use Permit No. USE-0142-2023) Resolution No. PA2023-06-27-X

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss

CITY OF LAGUNA HILLS )
I, Jennifer Lee, City Clerk of the City of Laguna Hills, California, DO HEREBY CERTIFY that the foregoing is a true and correct copy of Resolution No. PA2023-06-27-X adopted by the Planning Agency of the City of Laguna Hills, California, at a Regular Meeting thereof held on the 27 th day of June 2023, by the following
vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
_____________________________________

JENNIFER LEE, CITY CLERK

5.5.1.a
Packet Pg. 537 Attachment: Attachment A- Proposed Resolution of Approval (3213 : Conditional Use Permit No. USE-0142-2023) Letter of Justification
Glitch Game Shack will be a LAN (Local Area Network) center. We will have 28 computers. These computers will be outfitted with top end hardware for gaming. They will also have all Microsoft office applications installed. The computers will all be connected to a local server that will have all the popular games in the market.

Customers will set up an account that can then have time loaded onto it. The customer will be able to use any computer so long as they have time on their accounts. We will run tournaments for the games that we have on the computers. We will promote the tournaments on our social media. All customers at the location will be able to participate in the tournaments. Prizes will include drinks, free time for the winners accounts, and computer parts (Graphics cards, ram, etc…) We will be selling only pre packaged food and drinks. Absolutely no alcohol will be served,sold or allowed in Glitch. Our hours of operation will be Sunday - Saturday 11am - 11pm. We will not have a food or beverage display larger than 25 sq ft.

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Packet Pg. 538 Attachment: Attachment B- Letter of Justification (3213 : Conditional Use Permit No. USE-0142-2023)

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Packet Pg. 539 Attachment: Attachment C- Site and Floor Plans (3213 : Conditional Use Permit No. USE-0142-2023) ISSUE DATE No. Date Description 11/8"=1'-0" @ A-3 SCALE A-1.1 SHEET 17-03-2023 DATE DESIGNER PROPOSED GAMING CENTER LAYOUT PLAN TITLE 00 REV 5.5.1.c Packet Pg. 540
Attachment: Attachment C- Site and Floor Plans (3213 : Conditional Use Permit No. USE-0142-2023) City of Laguna Hills
City Council/Planning Agency
Staff Report
DATE: June 27, 2023
TO: Mayor and Council Members
FROM: Jarad Hildenbrand
City Manager
ISSUE: Agreement for the Commissioning of a Large-Scale Bronze Sculpture and Memorial Monument to Recognize the United States Marines of the 3RD Battalion, 5TH Marines and Our Nation's Armed Forces
RECOMMENDATION: That the City Council:
1) Approve the Agreement between the City of Laguna Hills and Brittany Ryan to Commission Original Work of Art and authorize the Mayor to execute the Agreement; and
2) Authorize the Finance Director to amend the budget in the Public Art Fund in the amount of $150,000.

SUMMARY:

In March 2022, the City Council established the 3/5 Battalion Memorial Ad Hoc Committee – comprised of Mayor Heft and Council Member Caskey – to develop a monument theme and narrative description for the commissioning of an original work of art to be displayed outdoors in the plaza area at the Laguna Hills Civic Center to recognize the United States Marines of the 3rd Battalion, 5th Marines (3/5 Battalion) and to recognize our Nation’s Armed Forces.

Since that time, the 3/5 Battalion Memorial Ad Hoc Committee (Committee) consulted and met with representatives of the 3/5 Battalion to obtain their input and guidance regarding the design, theme, and narrative of a memorial monument. Ultimately, the Committee chose a large-scale bronze sculpture to serve as the design, theme, and narrative of the memorial monument.

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Bronze Memorial Sculpture to Recognize the 3/5 Battalion June 27, 2023

Consequently, the Committee identified an accomplished and highly-regarded artist and Laguna Hills resident capable of designing and fabricating a large-scale bronze sculpture memorial monument. The artist, Brittany Ryan, holds a BFA and MFA from the Laguna College of Art and Design and has designed and fabricated iconic art pieces in the Orange County area, such as the bronze sculptures in Laguna Canyon known as the Canyon Walkers.

The attached Agreement between the City of Laguna Hills and Brittany Ryan outlines the process and procedure for commissioning a large-scale bronze sculpture memorial monument with an estimated completion timeline of 18 to 27 months. The project will be completed in stages and include a design phase, sculpting phase, molding and casting phase, and installation phase. The cost of this project is not to exceed $150,000 and will be allocated from the Public Art fund. The Exhibits of the Agreement detail the scope of services, design phases, schedule of performance, and payment.

Contracts to commission original works of art are exempt from the City's competitive bidding procurement regulations, pursuant to Laguna Hills Municipal Code Section 3-08.110 (L2).

Staff recommends that the City Council: 1) Approve the Agreement between the City of Laguna Hills and Brittany Ryan to Commission Original Work of Art and authorize the Mayor to execute the Agreement; and 2) Authorize the Finance Director to amend the budget in the Public Art Fund in the amount of $150,000.

FISCAL IMPACT:

The City currently has approximately $548,000 in restricted Public Art Funds available for projects. This $150,000 contract will be budgeted out of these available funds, which would result in $398,000 remaining for future uses or other projects. No General Fund monies are needed to fund this contract.

ATTACHMENTS:
• Proposed Agreement to Commission Original Work of Art with Brittany Ryan Studio

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AGREEMENT TO

COMMISSION ORIGINAL WORK OF ART
Laguna Hills Public Art Program
(3rd Battalion, 5th Marines Darkhorse Bronze Memorial Sculpture)

THIS AGREEMENT FOR CREATION, SALE, AND ASSIGNMENT OF ALL RIGHTS IN ARTISTIC WORK (the "Agreement") is made and entered into as of this 27th day of June 2023, by and between the CITY OF LAGUNA HILLS, a municipal corporation organized and existing under the laws of the State of California (“City”), and BRITTANY RYAN, an Individual (“Artist”). City and Artist are sometimes hereinafter referred to as “Party” and are hereinafter referred to collectively as the “Parties.”

RECITALS
A. The City requires the services of an experienced and reputable artist with specialized expertise in designing, creating, and fabricating bronze memorial sculptures for the Laguna Hills Public Art Program.

B. The City wishes to commission the design, creation, and fabrication of a large-scale bronze memorial sculpture to be displayed outdoors in the plaza area at the Laguna Hills Civic Center to recognize the United States Marines of the 3rd Battalion, 5th Marines (3/5 Battalion) in celebration and honor of their bravery, heroism, victories, and many sacrifices and in recognition of our Nation’s Armed Forces and the special relationship between this marine battalion unit and the City of Laguna Hills (the “Project”).

C. The 3/5 Battalion, nicknamed “Darkhorse,” is based in nearby Camp Pendleton, was formally adopted by the Laguna Hills City Council in 2008.

D. Artist is qualified by virtue of her experience, education, training, expertise, and reputation to design, create, and fabricate original works or art and to provide the necessary artistic services to City for the Project and has agreed to provide such services, and City desires to retain the services of Artist for the Project.

E. The purpose of this Agreement is to set forth the terms and conditions under which the City will commission and Artist will design, create, and fabricate, and supervise the installation of, an original work of art for the Project consisting of a large-scale bronze sculpture in honor of the 3/5 Battalion to be displayed outdoors in the Laguna Hills Civic Center Plaza , and transfer to City all of the rights in the commissioned artwork created by Artist as hereinafter provided.

NOW, THEREFORE, in consideration of the promises and mutual obligations, covenants, and conditions contained herein, and other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

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AGREEMENT
Section 1. Description of Commissioned Art.

A. Commissioned Art. Brittany Ryan is a locally known artist and sculptor (“Artist”).

The Artist is hereby commissioned by the City to design, create, fabricate, and supervise the installation of a large-scale bronze memorial sculpture to be displayed outdoors in the plaza area at the Laguna Hills Civic Center to recognize the United States Marines of the 3rd Battalion, 5th Marines (3/5 Battalion) in celebration and honor of their bravery, heroism, victories, and many sacrifices and in recognition of our Nation’s Armed Forces and the special relationship between this marine battalion unit and the City of Laguna Hills (the “Work”). Artist shall perform all services described in the Scope of Services required under this Agreement to the highest professional standards and in a manner reasonably satisfactory to the City. All services rendered under this Agreement shall be provided by Artist in accordance with all applicable federal, state, and local laws, statutes, and ordinances and all lawful orders, rules, and regulations promulgated thereunder. The Work shall be a work for hire. The Scope of Services is attached hereto as Exhibit “A” and is incorporated herein by reference.

B. Familiarity with Work. By executing this Agreement, Artist warrants that Artist (a) has thoroughly investigated and considered the Scope of Services to be performed, (b) has carefully considered how the Work should be performed, and (c) fully understands the facilities, difficulties, and restrictions attending performance of the services and Work under this Agreement.

If the services and Work involve work upon any site, Artist warrants that Artist has or will investigate the site and is or will be fully acquainted with the conditions there existing, prior to commencement of any services hereunder. Should Artist discover any latent or unknown conditions that will materially affect the performance of the services and Work hereunder, Artist shall immediately inform the City Representative of such fact and shall not proceed except at Artist’s risk until written instructions are received from the City. Notwithstanding the foregoing, City understands and acknowledges that Artist is not an expert in construction or soil analysis, erosion, or ground settlement and therefore relies on City to select a suitable and appropriate outdoor site for displaying the Work.

Section 2. Artist’s Work Schedule.

The Artist shall complete the Work in accordance with the Schedule of Performance attached hereto as Exhibit “C” and incorporated herein by reference, along with any other work schedule and/or project timeline agreed upon in writing by the City and Artist.

Section 3. Compensation.

As full payment for Artist’s services for performing the Scope of Services, including the completed Work, and for all rights granted or waived by the Artist pursuant to this Agreement, and subject to the conditions set forth herein, the City shall pay the Artist a total amount not to exceed One Hundred Fifty Thousand Dollars ($150,000.00) (“Artist’s Fee”). The Artist’s Fee is more particularly described in Payment and Payment Schedule, which is attached hereto as Exhibit “B” and is incorporated herein by reference. Payments shall be made by City in accordance with

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Packet Pg. 544 Attachment: Proposed Agreement to Commission Original Work of Art with Brittany Ryan Studio (3218 : Bronze Memorial Sculpture to 3 1776546.1
the Payment Schedule set forth in Exhibit “B”. City shall not withhold applicable federal or state payroll or any other required taxes, or other authorized deduction from each payment made to Artist. Upon payment, Artist shall sign a written acknowledgement of receipt of said monies and such document shall be incorporated in this Agreement. No claims for additional services performed by Artist that are beyond the Scope of Services will be allowed unless such additional work is authorized by the City in writing prior to the performance of such additional services.

Under no circumstances shall City be required to pay Artist for any services or Work that has not been completed to the reasonable satisfaction of the City.

Section 4. Personnel, Facilities, and Equipment.

Artist agrees that she will be responsible for completing all services described in the Scope of Services and for providing the personnel necessary for such services. Artist shall be solely responsible for the satisfactory work performance of the personnel engaged in performing the services required by this Agreement. Artist shall, at her sole cost and expense, furnish all facilities and equipment that may be required for creating the Work pursuant to this Agreement.

Section 5. Term and Timelines.

Artist shall commence performing the Scope of Services on the Commencement Date (See Exhibit “C”, Schedule of Performance) and shall perform all services and produce all Work in conformance with the Schedule of Performance set forth in Exhibit “C”, which is attached hereto and is incorporated herein by reference. City acknowledges that any material changes to the Work requested by City, or delays in granting approvals by City, may result in Artist being unable to meet the timelines set forth in Exhibit “C”, as such delays are beyond the control of Artist. In the event of such delay, Artist will not be held responsible for a failure to meet the Schedule of Performance set forth in Exhibit “C”. This Agreement shall be effective when fully executed by the Parties and shall terminate when the Scope of Services are completed, unless sooner terminated as provided in Section 18 herein.

Section 6. City Representative.

For purposes of this Agreement, the contract administrator and City representative shall be the City Manager (hereinafter the “City Representative”). It shall be the Artist’s responsibility to ensure that the City Representative is kept fully informed of the progress made in performance of the services and the production and delivery of the Work pursuant to this Agreement. Artist shall timely refer any decisions which must be made by the City to the City Representative. Unless otherwise specified herein, any approval of City required hereunder shall mean the approval of the City Representative.

Section 7. Transfer of Rights of Reproduction.

Artist hereby transfers all rights of reproduction, as that term is defined in California Civil Code Section 982, in the fine art Work, including but not limited to the right to claim statutory copyright in the Work and the right to reproduce the Work in any manner whatsoever for

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Packet Pg. 545 Attachment: Proposed Agreement to Commission Original Work of Art with Brittany Ryan Studio (3218 : Bronze Memorial Sculpture to 4 1776546.1
commercial and non-commercial purposes. Hereinafter, Artistshall not acquire or claim any rights in or to the Work, any uses, reproductions, or derivatives thereof or any proceeds therefrom.

Section 8. Waiver of Moral Rights.

Artist hereby waives, releases, and disclaims any rights, demands, or claims as may arise at any time and under any circumstances against City, its officers, employees, agents, successors, and assigns arising under the federal Visual Artists Rights Act (17 U.S.C. §§ 106A and 113(d)), the California Art Preservation Act (Cal. Civil Code § 987 et seq.), and any other local, state, federal, or international laws that convey rights of the same nature as those conveyed under 17 U.S.C. Section 106A, California Civil Code Section 987 et seq., or any other type of moral right protecting the integrity of works of art. Artist acknowledges and agrees that City, in it sole and exclusive discretion, may, among other acts, temporarily or permanently modify, alter, change, or destroy the Work.

Section 9. Copyrights.

Artist hereby irrevocably assigns exclusively to City, and its successors and assigns, all right, title, and interest in the copyright of the Work, and all extensions and renewals thereof in the United States and in all foreign countries. Artist hereby waives all moral rights relating to each such Work including, but not limited to, any and all rights of identification of authorship and any and all rights of approval, restriction, or limitation on use or subsequent modifications. From time to time upon City’s request, Artist shall confirm such assignment by execution and delivery of such assignments, confirmations of assignment, or other written instruments as City may request. City, and its successors and assigns, shall have the right to obtain and hold in its or their own name(s) all copyright registrations and other evidence of rights that may be available for the Work.

Section 10. City’s Sole and Exclusive Ownership Rights.

A. Ownership of Works. Artist shall not retain ownership of or any right, title, or interest in any of the Work, including, but not limited to, in any related trademarks, copyrights, or other proprietary rights. The Parties agree that the Work and all such rights, title, and interest in or to the Work shall belong to and are being sold and assigned in their entirety to the City for whatever use it desires, and that City does and shall at all times own, solely and exclusively, complete and unencumbered, all right, title, and interest in and to all of the Work worldwide, any modifications thereto and any derivative works based thereon (including, but not limited to, all patent, copyright, trademark, service mark, and trade secret rights). Nothing contained herein shall be deemed to constitute a mere license or franchise in City. The Parties further agree that City will be free to use, modify, distribute, sell, license, or otherwise exploit all such Work and any modifications to or derivative works based thereon without any restrictions or limitations or any obligations or payments to Artist and that Artist shall have no such rights.

Section 11. Originality of Work.

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Artist hereby represents and warrants that (i) the Work is and will be original; (ii) at the time of transfer hereunder, Artist is the sole owner of the Work and of all rights therein including copyright, trademark, and other proprietary rights therein; (iii) Artist is and will be the sole creator of the Work; (iv) Artist has and will have full and sufficient right to assign all rights granted herein and to waive all rights relinquished herein;(v) Artist is not under any obligation to transfer or sell any of the Work to any third party; (vi) the Work has not been and will not be published under circumstances which have or will cause a loss of any copyright, trademark, or other proprietary rights therein; and (vii) the Work does not and will not infringe any patent, copyright, trademark, or other proprietary rights, privacy rights, or other rights of any third party, nor has any claim (whether or not embodied in a legal action, past or present) of such infringement been threatened or asserted, nor is such a claim pending, against Artist (or, insofar as Artist is aware, against any entity from which Artist has obtained any rights).

Section 12. Risk of Loss.

Artist bears the sole risk of damage to or loss of the Work to be produced by Artist pursuant to this Agreement until such Work is delivered to and received by the artworks foundry, anticipated to be located in Berkeley, California, and the City accepts such Work as satisfactorily completed pursuant to the Scope of Services set forth in Exhibit “A”.

Section 13. Maintenance and Warranty of Works.

A. Artist shall provide City with a written description of a recommended routine maintenance program for the Work, if Artist determines that such routine maintenance of the Work may be required.

B. Artist hereby warrants that the Work will be free of defects in workmanship (due to faulty design, fabrication, and/or installation), materials and finish, including inherent vice, and that the Artists will, at the Artist’s own expense, remedy, repair, or replace any such defects in workmanship, materials, and finish, including inherent vice, and if necessary replace the Work, which appear within a period of ten (10) years of the date the Work is delivered to and accepted by the City. The term “inherent vice,” as used in this section, shall mean a quality within the material or materials which comprise the Work which, either alone or combination, results in the tendency of the Work, including without limitation the finish, to deteriorate.

Section 14. Artist’s Credit.

Upon written request by the City, a public notice, approved in advance by the City Representative, including the Artist’s name and website and mention of the City’s sole ownership of the Work, shall be designed by the Artist and publicly displayed with the Work.

Section 15. Indemnification.

To the fullest extent permitted by law, Artist shall defend (at Artist’s sole cost and expense), indemnify, protect, and hold harmless City, its elected officials, officers, employees, agents, and volunteers (collectively the “Indemnified Parties”), from and against any and all

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Packet Pg. 547 Attachment: Proposed Agreement to Commission Original Work of Art with Brittany Ryan Studio (3218 : Bronze Memorial Sculpture to 6 1776546.1
liabilities, actions,suits, claims, demands, losses, costs, judgments, arbitration awards,settlements, damages, demands, orders, penalties, and expenses including legal costs and attorney fees (collectively “Claims”), including but not limited to Claims arising from injuries to or death of persons (Artist’s employees, agents, and volunteers included), for damage to property, including property owned by City, from any violation of any federal, state, or local law or ordinance, which Claims arise out of, pertain to, or are related to the negligence, recklessness, or willful misconduct of Artist, her agents, employees, volunteers, or subcontractors, or arise from Artists negligent, reckless, or willful performance of or failure to perform any term, provision, covenant, or condition of this Agreement, but excluding such Claims arising from the negligence, recklessness, or willful misconduct of the City, its elected officials, officers, employees, agents, and volunteers.

Notwithstanding the foregoing, the indemnification under this section shall not include any personal injuries sustained by members of the public or third parties after the Work has been installed at its permanent location in the Laguna Hills Civic Center.

Section 16. Independent Contractor.

Neither City nor any of its employees shall have any control over the manner, mode, or means by which Artist, her agents, employees, or volunteers, perform the services required herein, except as otherwise set forth herein. Artist shall perform all services required herein as an independent contractor of the City and shall not be an employee of City and shall remain at all times as to City a wholly independent contractor with only such obligations as are consistent with that role; however, City shall have the right to review Artist’s final work product. Artist shall not at any time or in any manner represent that she or any of her agents or employees or volunteers are agents or employees of City.

Section 17. Addresses for Notices.

Any notice, bills, invoices, demand, or document which any Party is required or may desire to give or deliver to the other hereunder, shall be in writing and may be delivered personally or given by facsimile or overnight courier service, postage prepaid, addressed as follows:

To Artist: Brittany Ryan
Attention: Brittany Ryan, Artist
Laguna Hills, California 92653
To City: City of Laguna Hills
Attention: City Manager
24035 El Toro Road
Laguna Hills, California 92653
Telephone: (949) 707-2600
Facsimile: (949) 707-2633
Either Party shall have the right to designate a different address by written notice similarly given. Any notice, demand, or documents shall be deemed received on: (a) the day of delivery if delivered by hand or overnight courier service during the party’s regular business hours; or (b) the

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day of delivery if delivered by facsimile during the parties’ regular business hours. City assumes no responsibility to search for Artist if Artist cannot be reached at the address of record.

Section 18. Termination.

A. City shall have the right to terminate this Agreement, with or without cause, upon ten (10) calendar days written notice to Artist. If terminated, Artist agrees to cease all work under this Agreement on or before the effective date of such notice. All completed and uncompleted Work up to the date of receipt of written notice of termination shall become the property of City.

B. In the event of termination of this Agreement by City, due to no fault or failure of performance by Artist, Artist shall be compensated based on the percentage of services satisfactorily performed and/or the Work satisfactorily produced at the time of termination. In no event shall Artist be entitled to receive more than the amount that would be paid to Artist for the full performance of the services and the Work required by this Agreement.

Section 19. Attorneys' Fees.

In the event either Party shall commence any action against the other Party relating to this Agreement, or for the breach of any obligation contained herein, the prevailing Party shall be entitled to recover from the losing Party reasonable attorneys' fees, expenses, and court costs.

Section 20. Prohibition Against Assignment.

Artist shall not delegate, transfer, subcontract, or assign her duties or rights hereunder, either in whole or in part, without City’s prior written consent, and any attempt to do so shall be void and of no effect. City shall not be obligated or liable under this Agreement to any party other than Artist. The City understands and acknowledges that Artist anticipates to have the Work fabricated by a foundry located in Berkeley, California.

Section 21. Successors and Assigns.

The terms of this Agreement shall be binding upon and inure to the benefit of the respective heirs, successors in interest, and assigns of the Parties hereto.

Section 22. Entire Agreement.

This Agreement represents the entire integrated agreement between the City and the Artist, and supersedes all prior negotiations, representations, or agreements, either written or oral. This Agreement may be amended only by a written instrument signed by both the City and the Artist.

Section 23. Severability.

Wherever possible, each provision of this Agreement shall be interpreted in such a manner as to be valid under applicable law. If any provision of this Agreement is determined by a court

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of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions shall nevertheless continue in full force and effect.

Section 24. Governing Law; Jurisdiction.

This Agreement shall be governed by and construed in accordance with the laws of the State of California. In the event of litigation between the Parties, venue in State trial courts shall be exclusively in Orange County, California. In the event of litigation in a United States District Court, exclusive venue shall lie in the Central District of California.

Section 25. Execution.

This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, but all of which when taken together shall constitute one and the same instrument.

Section 26. Authority.

Each of the undersigned individuals represent and warrant that (i) the Party for which he or she is executing this Agreement is duly authorized and existing, (ii) he or she is duly authorized to execute and deliver this Agreement on behalf of the Party for which he or she is signing, (iii) by so executing this Agreement, the Party for which he or she is signing 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 the Party for which he or she is signing is bound.

Section 27. Recitals.

The recitals above are hereby incorporated by reference in the Agreement as though fully set forth herein, and each Party acknowledges and agrees that such Party is bound, for purposes of this Agreement, by the same.
[SIGNATURES ON NEXT PAGE]

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IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the day and year first above written.
“CITY”
CITY OF LAGUNA HILLS, a California
municipal corporation

JANINE HEFT,
Mayor
ATTEST:
(SEAL)

JENNIFER LEE,
City Clerk
APPROVED AS TO FORM: APPROVED AS TO CONTENT:

GREGORY E. SIMONIAN,
City Attorney

JARAD L HILDENBRAND,
City Manager
“ARTIST”
BRITTANY RYAN, an Individual
BRITTANY RYAN, Artist

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Packet Pg. 551 Attachment: Proposed Agreement to Commission Original Work of Art with Brittany Ryan Studio (3218 : Bronze Memorial Sculpture to 1 1776546.1
EXHIBIT “A”

SCOPE OF SERVICES
COMMISSIONING OF ORIGINAL WORK OF ART: The Artist is hereby commissioned by the City to design, create, fabricate, and supervise the installation of a large-scale bronze memorial sculpture to be displayed outdoors in the plaza area at the Laguna Hills Civic Center to recognize the United States Marines of the 3rd Battalion, 5th Marines (3/5 Battalion) in celebration and honor of their bravery, heroism, victories, and many sacrifices and in recognition of our Nation’s Armed Forces and the special relationship between this marine battalion unit and the City of Laguna Hills (the “Work”).

MEDIUM: Bronze sculpture.

DISPLAY LOCATION: Laguna Hills Civic Center, Outdoor Plaza Area, 24035 El Toro Road, Laguna Hills, California 92653.

DESCRIPTION OF COMMISSIONED ARTWORK: Large-scale bronze memorial sculpture to be displayed outdoors in the plaza area at the Laguna Hills Civic Center to recognize the United States Marines of the 3rd Battalion, 5th Marines (3/5 Battalion) in celebration and honor of their bravery, heroism, victories, and many sacrifices and in recognition of our Nation’s Armed Forces.

COMMISSIONING PROCESS AND PROCEDURE:
► Artist shall provide City up to five (5) preliminary sketch renderings/drawings of the proposed bronze sculpture for submission to and approval by the City’s 3/5 Battalion Memorial Ad Hoc Committee.
► Artist shall participate in a review of the preliminary sketch renderings of the proposed sculpture with the City’s 3/5 Battalion Memorial Ad Hoc Committee. ► The final sketch rendering of the proposed bronze sculpture shall be subject to review and approval by the City Council.
► Upon acceptance of the final completed sketch rendering of the proposed bronze sculpture, Artist shall design, create, and fabricate up to two rounds of changes to a 12” maquette for approval by the City’s 3/5 Battalion Memorial Ad Hoc Committee. ► Upon approval of the 12” maquette by the City’s 3/5 Battalion Memorial Ad Hoc Committee, Artist shall create and fabricate a 30” version of the proposed bronze sculpture for approval by the City Council.
► Upon approval of the 30” version of the proposed bronze sculpture, Artist shall begin the final version of the sculpture.

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► Artist shall be responsible for transportation of the proposed sculpture mold to the artworks foundry.
► City shall be responsible for all costs related to the transportation of the finished bronze sculpture from the foundry to the installation site at the Laguna Hills Civic Center Plaza, including the procurement of insurance.
► City shall be responsible for all costs related to the installation of the finished bronze sculpture, including lighting, leveling, and surrounding landscape, in consultation with Artist. Artist shall supervise the installation of the finished bronze sculpture. ► Upon delivery and installation of the completed Work and acceptance of the by the City, City shall assume ownership and control of the Work.
► Upon completion of the Work, Artist shall provide City with a detailed written schedule and instructions for the routine care, maintenance, and preservation of the Work. All maintenance and routine care shall be the responsibility of the City in all respects. ► Artist shall participate as requested by the City in a ribbon-cutting ceremony and/or media outreach.

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EXHIBIT “B”

PAYMENT AND PAYMENT SCHEDULE
Asfull payment for Artist’sservicesfor performing the Scope of Services, including the completed Work, and for all rights granted or waived by the Artist pursuant to this Agreement, and subject to the conditions set forth in the Agreement, the City shall pay the Artist a total amount not to exceed One Hundred Fifty Thousand Dollars ($150,000.00) (“Artist’s Fee”), which sum shall include all costs associated with Artist designing, creating, fabricating, supervising the installation of the Work.

Artist will be paid by City the specified installment payments set forth below upon submitting an invoice and documentation substantiating satisfactory completion of each phase of the Work as described below. Each invoice from Artist to City shall include a written progress summary report with a detailed narrative discussion of all project activities and progress occurring during the reporting period, as well as photographic or schematic documentation substantiating completion of each work phase. Progress payments shall be made by City as follows:

Payment 1: Amount
$10,000
Due and payable upon execution of this Agreement and initiation of Design Phase.

Payment 2: Amount
$50,000
Progress payment due and payable upon the initiation of Creating/Sculpting Phase.

Payment 3: Amount
$25,000
Progress payment due and payable upon the initiation of Molding Phase.

Payment 4: Amount
$50,000
Progress payment due and payable upon the initiation of Casting Phase.

Payment 5: Amount
$15,000
Final payment due upon the installation of sculpture and acceptance by City.

Total Payments: $150,000

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City Council/Planning Agency
Staff Report
DATE: June 27, 2023
TO: Mayor and Council Members
FROM: Eric Hendrickson
Finance Director
ISSUE: Budget Adoption for Fiscal Years 2023/2024 & 2024/2025 RECOMMENDATION: That the City Council:
1) Adopt a Resolution entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

LAGUNA HILLS, CALIFORNIA, ADOPTING THE OPERATING BUDGET, CAPITAL

IMPROVEMENT PROGRAM, AND OTHER APPROPRIATIONS FOR THE CITY OF LAGUNA HILLS FOR THE 2023/2024 & 2024/2025 FISCAL YEARS"; and
2) Adopt a Resolution entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

LAGUNA HILLS, CALIFORNIA, AUTHORIZING COMMUNITY ASSISTANCE FUNDING FOR THE MOULTON MUSEUM/MOULTON FAMILY FOUNDATION, INC., A 501(C)(3) NONPROFIT CORPORATION."
SUMMARY:

The City of Laguna Hills adopts a budget every two years. The biennial budget process has concluded for the upcoming fiscal years 2023/2024 and 2024/2025. These revenue projections and expenditure allocations cover the period of July 1, 2023, through June 30, 2025.

The City Council held four budget workshops prior to adoption, so that key stakeholders can review the draft budget, provide direction, and make suggestions. Workshops were held on March 28, May 23, June 13, and June 20.

7.2.1 Packet Pg. 556
FY 23-25 Biennial Budget Adoption
June 27, 2023