Laguna Hills City Council
October 22, 2024

City of Laguna Hills
City Council / Planning Agency
Regular Meeting Agenda
Tuesday, October 22, 2024 - 7:00 PM
(Closed Session at 6:00 p.m. when scheduled)
City Council Chamber
24035 El Toro Road
Laguna Hills, CA 92653
Dave Wheeler
Mayor
Joshua Sweeney
Mayor Pro Tempore
Don Caskey
Council Member
Janine Heft
Council Member
Erica Pezold
Council Member
In Person Public Comments: Any person wishing to address the City Council/Planning Agency on any matter, whether or not it appears on this Agenda, is asked to complete a pink “Request to Speak” form available on the table at the back of the Chamber and submit the form to the City Clerk. The Request to Speak form assists the Mayor in ensuring that all persons wishing to address the City Council are recognized and ensures accurate identification of meeting participants in the City Council/Planning Agency Minutes. Completion of the form is voluntary. It is City policy to limit public testimony to up to three minutes per person, an overall time limit of twelve minutes for any one subject, and a total time limit of thirty minutes for Public Comments. If you are commenting on an Agenda item, your comments will be heard at the time that item is scheduled on the Agenda. If you are addressing the City Council on an item not listed on the Agenda, the City Council is prohibited by law from discussing or taking any action on that item.

Submission of Electronic Public Comments: Those wishing to make electronic public comments may submit their comments by email to the City Clerk by 5:00 p.m. on Tuesday, October 22, 2024.

In the subject line of the email, please state your name and the item number you are commenting on. Any public comment received that does not specify a particular agenda item number will be announced during the general public comment portion of the agenda. All comments received by 5:00 p.m. on the date of the meeting will be provided to the City Council and will be provided for public inspection at the meeting. During the applicable agenda item, the City Clerk will announce the name of the sender and subject matter of all electronic comments received by 5:00 p.m. on Tuesday, October 22, 2024. Email comments will NOT be read by the City Clerk during the meeting.

Electronic public comments may only be submitted via email and comments via text and social media (Facebook, X (formerly Twitter), etc.) will not be accepted.

For questions or assistance, please contact the City Clerk’s Office at (949) 707-2635 or via email.

2 General Business Convening at 7:00 PM
Call to Order
Resolution No. 96-04-09-1 established rules of decorum for public meetings held by the City of Laguna Hills. Resolution No. 96-04-09-1 is available on the table at the back of the City Council Chamber.

Invocation: Elder Ross Caouette of Christ Community Church Pledge of Allegiance: Council Member Heft
Roll Call of City Council Members

1. Presentations and Proclamations

1.1 Laguna Hills High School Student Liaison Report
Recommendation: That the City Council receive a report from Laguna Hills High School 2024 Fall Student Liaison Ann Pham.

2. Schedule of Future Events

2.1 Schedule of Future Events
Recommendation: That the City Clerk announce the upcoming meetings and events.

3. Public Comments
This is the time to address the City Council on any matter not listed on this Agenda that is within the subject matter jurisdiction of the City Council. Public Comments are limited to three minutes per person, an overall time limit of twelve minutes for any one subject, and a total time limit of thirty minutes. Clarification questions from the City Council will not count against time limits. Speaker’s responses are limited to one minute.

4. Consent Calendar
All matters listed under “CONSENT CALENDAR” are considered to be routine and will be enacted by one motion approving the recommendation listed on the Agenda. There will be no separate discussion unless Members of the City Council or Staff request specific items be removed from the Consent Calendar.

3 4.1 Waive Reading in Full of all Ordinances and Resolutions on the Agenda Recommendation: That the City Council waive reading in full of all ordinances and resolutions on the agenda and declare that said titles which appear on the public agenda shall be determined to have been read by title and further reading waived.

4.2 Approval of Minutes for October 8, 2024, Regular Meeting Recommendation: That the City Council approve the City Council Minutes for the October 8, 2024, Regular Meeting.

4.3 Ratification of October 22, 2024 Warrant Register
Recommendation: That the City Council ratify the accompanying Warrant Register for the period from September 27, 2024, to October 10, 2024, in the amount of $1,379,395.23.

4.4 Treasurer's Investment Report for September 2024
Recommendation: That the City Council receive and file the Treasurer's Investment Report for the month of September 2024.

4.5 Appointment of Labor Negotiator
Recommendation: That the City Council pursuant to Government Code Section 54957.6, select and appoint Mayor Wheeler to serve as the Council's designated representative for purposes of: A) Facilitating the Annual Performance Evaluation of the City Manager; and B) Conducting Labor Negotiations with the City Manager, an unrepresented employee.

4.6 Annual Review of Investment and Portfolio Policy and Delegation of Investment Authority to the City Treasurer
Recommendation: That the City Council adopt a Resolution entitled: "A Resolution of the City Council of the City of Laguna Hills, California, delegating investment authority to the City Treasurer and approving a policy for the investment of City funds and rescinding Resolution No. 2023-11-14-1."

4.7 Measure M2 Expenditure Report FY 2023/2024
Recommendation: That the City Council: 1) Approve the M2 Expenditure Report for the fiscal year ended June 30, 2024, for submittal to the Orange County Transportation Authority; and 2) Adopt a Resolution entitled: "A Resolution of the City Council of the City of Laguna Hills, California, concerning the Measure M2 (M2) Expenditure Report for the City of Laguna Hills for the fiscal year ended June 30, 2024."

4 4.8 Fiscal Year 2023-2024 Development Impact Fees Annual Report Recommendation: That the City Council approve the Fiscal Year 2023-2024 Development Impact Fees Annual Report pursuant to California Government Code Section 66006.

4.9 Development Application Status Report
Recommendation: That the City Council receive and file the report.

4.10 Approval of Four Professional Services Agreements to: 1) Ascent Environmental, Inc.; 2) De Novo Planning Group; 3) Dudek; and 4) LSA Associates, Inc., for On-Call Environmental Review Consulting Services Recommendation: That the City Council approve four Professional Services Agreements with the following consulting firms: 1) Ascent Environmental, Inc.; 2) De Novo Planning Group; 3) Dudek; and 4) LSA Associates, Inc., for On-Call Environmental Review Consulting Services, in the total not to exceed contract amount of $500,000 each for a term of five (5) years, respectively, and authorize the City Manager to execute each of the four proposed Professional Services Agreements.

Items Removed from the Consent Calendar

5. Planning Agency

5.1 Roll Call of Planning Agency Members

5.2 Public Comments

5.3 Approval of Minutes

5.4 Administrative Reports

5.5 Planning Agency Public Hearings

5.5.1 Parking Use Permit (PUP) No. 0183-2024, a Request by Kymmberly Vanier, Project Manager, on behalf of George Urban Advisors LLC, for Approval of a Joint Parking Use Permit for The Row- Laguna Hills Commerce Center Located at 23251-23451 Avenida De La Carlota, 23461- 23641 Ridge Route Drive, and 23501-23562 Commerce Center Drive Recommendation: That the Planning Agency:
1) Conduct a public hearing
2) Find and determine that the proposed project is categorically exempt from

5 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 Parking Use Permit (PUP) No. 0183- 2024, a Request by Kymmberly Vanier, Project Manager, on behalf of George Urban Advisors LLC, for Approval of a Joint Parking Use Permit for The RowLaguna Hills Commerce Center Located at 23251-23451 Avenida De La Carlota, 23461- 23641 Ridge Route Drive, and 23501-23562 Commerce Center Drive, 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).”

5.6 Planning Agency Adjournment

6. City Council Public Hearings

7. Administrative Reports

7.1 City Manager

7.1.1 First Reading and Introduction of Ordinance entitled: “An Ordinance of the City of Laguna Hills, California, Amending and Restating Section 2-

04.010 (Time of Regular Meetings) of Chapter 2-04 (City Council) of Title 2 (Administration and Personnel) of the Laguna Hills Municipal Code Establishing the Dates and Time of City Council Regular Meetings” Recommendation: That the City Council introduce for first reading, read by title only, and waive further reading of an Ordinance changing the start time for City Council regular meetings, entitled: “An Ordinance of the City of Laguna Hills, California, Amending and Restating Section 2-04.010 (Time of Regular Meetings) of Chapter 2-04 (City Council) of Title 2 (Administration and Personnel) of the Laguna Hills Municipal Code Establishing the Dates and Time of City Council Regular Meetings”

7.2 2024 Heritage Day Post-Event Report
Recommendation: That the City Council receive and file the report.

8. Matters Agendized and Presented by City Council Members

8.1 Discussion on the Public Notice Mailing Notification Radius for Development Use Permits

6 Recommendation: Mayor Wheeler recommends that the City Council discuss the current public notice mailing notification radius requirement of 300' for public hearing reviews of applications for development use permits to determine if a larger radius requirement is needed.

9. City Council Member Committee Reports

9.1 Committee Assignment Reports
Recommendation: That the City Council receive reports from City Council Members on the City Council Committee Assignments listed in the staff report.

10. City Council Member Comments
Adjournment
The next Regular Meeting of the City Council/Planning Agency will be November 12, 2024, at 7:00p.m., in the City Council Chamber, located at 24035 El Toro Road, Laguna Hills, California.

CERTIFICATION
I, JENNIFER LEE, City Clerk of the City of Laguna Hills, do hereby certify that a copy of the foregoing Agenda was posted at Laguna Hills City Hall, Laguna Hills Community Center, and the Courtyard at La Paz Center by October 18, 2024, at 5:00p.m.

It is the intention of the City of Laguna Hills to comply with the Americans with Disabilities Act in all respects. If as an attendee or a participant at this meeting you will need special assistance beyond what is normally provided, the City of Laguna Hills will attempt to accommodate you in every reasonable manner. Please contact the office of the City Clerk at (949) 707 2635. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to assure accessibility to this meeting.

Materials related to an item on this Agenda submitted to the City Council after distribution of the agenda packet are available for public inspection in the City Clerk’s Office at 24035 El Toro Road, Laguna Hills, California, during normal business hours. In addition, such writings or documents will be made available for public review on the City’s website at: https://www.lagunahillsca.gov/supplementalagenda and at the respective public meeting.

City Council Members receive no additional compensation or stipend as a result of simultaneously convening meetings of the Laguna Hills Planning Agency.

Item No. 2.1
City of Laguna Hills
City Council / Planning Agency
Staff Report
Date: October 22, 2024
To: Mayor and Council Members
From: Jennifer Lee, City Clerk
Issue: Schedule of Future Events
Recommendation: That the City Clerk announce the upcoming meetings and events Meetings:

City Council/Planning Agency Regular Meetings
Tuesday, November 12, 7:00 p.m., Laguna Hills Civic Center Council Chamber Tuesday, December 10, 7:00 p.m., Laguna Hills Civic Center Council Chamber Traffic Commission Regular Meeting
Wednesday, November 20, 6:00 p.m., Laguna Hills Civic Center Council Chamber Parks and Recreation Commission Meeting
Wednesday, December 4, 7:00 p.m., Laguna Hills Civic Center Council Chamber Events:

National Prescription Take Back Day
Saturday, October 26 from 10:00 a.m. - 2:00 p.m., Laguna Hills Community Center CR&R Compost Giveaway
Saturday, November 9 from 8:00 a.m. - 12:00 p.m., Former Laguna Hills Mall Site

Ladera Ranch
Ladera Ranch Middle School
29551 Sienna Parkway
Ladera Ranch, CA 92694
Laguna Hills
Laguna Hills Comm. Center
25555 Alicia Pkwy.

Laguna Hills, CA 92653
Laguna Niguel
Laguna Niguel City Hall
30111 Crown Valley Pkwy.

Laguna Niguel, CA 92677
Laguna Woods
Laguna Woods City Hall
24264 El Toro Rd.

Laguna Woods, CA 92637
Lake Forest
Lake Forest Civic Center
100 Civic Center Dr.

Lake Forest, CA 92630
Mission Viejo
Mission Viejo City Hall
200 Civic Center
Mission Viejo, CA 92691
Rancho Mission Viejo
Rancho MMC and
RanchLife Offices
28436 Airoso St.,
Rancho Mission Viejo,
CA 92694
RSM
RSM City Hall
22112 El Paseo
Rancho Santa Margarita,
CA 92688
Rossmoor
Rush Park
3021 Blume Drive
Rossmoor, CA 90720
San Clemente
San Clemente City Hall
910 Calle Negocio
San Clemente, CA 92673
Villa Park
Villa Park City Hall
17855 Santiago Blvd.

Villa Park, CA 92861
Yorba Linda
Yorba Linda Police Services
20994 Yorba Linda Blvd.

Yorba Linda, CA 92887

NATIONAL
Prescription

TAKE BACK DAY
Saturday, October 26, 2024
10:00 a.m. - 2:00 p.m.

For more information call (714) 647- 4133. The event will be held rain or shine.

DROP OFF

LOCATIONS
60% - 70% of teens report their home
medicine cabinet as their source of drugs.

Don’t let your medicine cabinet be the
source of drugs for anyone.

Free and anonymous. No questions asked.

NO Sharps, Marijuana, Liquids or pressure
cannisters will be accepted.

Bring unwanted, unused, and expired
prescription medications.
{
To find additional drop off locations, visit dea.gov/takebackday

City of Laguna Hills
City Council / Planning Agency
Regular Meeting
Minutes
Tuesday, October 8, 2024
General Business Convening at 7:00 PM
Call to Order
The meeting was called to order at 7:03 p.m. by Mayor Wheeler.

Invocation: Bishop Alejandro Rubalcava of Laguna Hills Ward of the Church of Jesus Christ of Latter-day Saints
Pledge of Allegiance: Council Member Caskey

1. Presentations and Proclamations

1.1 Laguna Hills High School Student Liaison Report
The City Council received a report from Laguna Hills High School 2024 Spring Student Liaison Alternate Forrest Frey.

Roll Call of City Council Members

Present:

Mayor Dave Wheeler
Mayor Pro Tempore Joshua Sweeney
Council Member Don Caskey
Council Member Janine Heft
Council Member Erica Pezold

Absent:

2. Schedule of Future Events

2.1 Schedule of Future Events
City Clerk Lee announced the upcoming meetings and events.

3. Public Comments
The following individual(s) provided public comments on non-agendized items:

Michael Ross, Laguna Hills Resident
Kevin Bonny, Laguna Hills Resident
Craig Talbot, Laguna Hills Resident

City Council/Planning Agency Regular Meeting Minutes
Tuesday, October 8, 2024
2 Sheldon Kawahana, Laguna Hills Resident
Raymond Paya, Laguna Hills Resident
Susann Fiumani, Laguna Hills Resident
Patrick O'Fallon, Laguna Hills Resident
Victor Lanfranco, Laguna Hills Resident
Moses Yang, Laguna Hills Resident
Neel Patel, Traffic Commission Vice Chair
Russell Almquist, Laguna Hills Resident
City Attorney Simonian provided legal information on sober living recovery homes and street vending and signage.

4. Consent Calendar
A motion to approve the Consent Calendar with Council Member Pezold removing Item No. 4.7 was moved by Council Member Heft, seconded by Council Member Caskey.

Result: Passed
Yes 5, No 0, Abstained 0
Ayes: Mayor Wheeler, Mayor Pro Tempore Sweeney, Council Member Caskey, Council Member Heft, Council Member
Pezold
Nays: None
Abstain: None

4.1 Waive Reading in Full of all Ordinances and Resolutions on the Agenda Recommendation: That the City Council waive reading in full of all ordinances and resolutions on the agenda and declare that said titles which appear on the public agenda shall be determined to have been read by title and further reading waived.

4.2 Approval of Minutes for September 24, 2024, Special Meeting Recommendation: That the City Council approve the City Council Minutes for the September 24, 2024, Special Meeting.

4.3 Approval of Minutes for September 24, 2024, Regular Meeting Recommendation: That the City Council approve the City Council Minutes for the September 24, 2024, Regular Meeting.

4.4 Ratification of October 8, 2024 Warrant Register
Recommendation: That the City Council ratify the accompanying Warrant Register for the period from September 13, 2024, to September 26, 2024, in the amount of $264,099.54.

City Council/Planning Agency Regular Meeting Minutes
Tuesday, October 8, 2024
3 4.5 2024 Summer Event Series Post-Event Report
Recommendation: That the City Council receive and file the report.

4.6 2025-2027 Memorial Day Half Marathon, 10K, and 5K Event Management Services Agreement
Recommendation: That the City Council approve and authorize the Mayor to execute an agreement with Spectrum Sports Management, Inc., for event management services for the 2025, 2026, and 2027 City of Laguna Hills Memorial Day Race Events.

4.8 Approval of Parcel Map No. 2022-189 for Laguna Hills Plaza Shopping Center, 24791-24901 Alicia Parkway
Recommendation: That the City Council approve Final Parcel Map No. 2022-189, a portion of Vesting Tentative Parcel Map (VTTM) No. 2022-189, for the property located at 24794-24901 Alicia Parkway, subject to minor revisions as may be required by the City Engineer and City Attorney.

Items Removed from the Consent Calendar

4.7 Approval of Four Professional Services Agreements to: 1) Ascent Environmental, Inc.; 2) De Novo Planning Group; 3) Dudek; and 4) LSA Associates, Inc., for On-Call Environmental Review Consulting Services Recommendation: That the City Council approve four Professional Services Agreements with the following consulting firms: 1) Ascent Environmental, Inc.; 2) De Novo Planning Group; 3) Dudek; and 4) LSA Associates, Inc., for On-Call Environmental Review Consulting Services, in the total not to exceed contract amount of $500,000 each for a term of five (5) years, respectively, and authorize the City Manager to execute each of the four proposed Professional Services Agreements.

Council Member Pezold removed Item No. 4.7 from the Consent Calendar to request additional information.

City Manager Hildenbrand responded to Council Member requests for additional information.

A motion to continue the item to the October 22, 2024, regular meeting was moved by Mayor Wheeler, seconded by Council Member Pezold.

Result: Passed
Yes 5, No 0, Abstained 0
Ayes: Mayor Wheeler, Mayor Pro Tempore Sweeney, Council Member Caskey, Council Member Heft, Council Member
Pezold

City Council/Planning Agency Regular Meeting Minutes
Tuesday, October 8, 2024
4 Nays: None
Abstain: None

5. Planning Agency
There were no separate Planning Agency Business Items for this meeting.

6. City Council Public Hearings
There were no City Council public hearings.

7. Administrative Reports

7.1 City Manager

7.1.1 Discussion on a Potential Change to the Start Times for Closed Session Meetings and the General Business Session of Regular Meetings for the City Council
Recommendation: That the City Council discuss and direct staff to draft an ordinance to implement a change to the start times for Closed Session meetings and the General Business Session of regular meetings for the City Council.

City Manager Hildenbrand provided information on the item and responded to Council Member requests for additional information.

City Attorney Simonian responded to Council Member requests for additional information.

A motion to direct staff to draft an ordinance to implement a change to the start time of the General Business Session of regular meetings from 7:00 p.m. to 6:00 p.m., for first reading at the October 22, 2024, regular meeting was moved by Council Member Pezold, seconded by Mayor Pro Tempore Sweeney.

Result: Passed
Yes 5, No 0, Abstained 0
Ayes: Mayor Wheeler, Mayor Pro Tempore Sweeney, Council Member Caskey, Council Member Heft, Council Member
Pezold
Nays: None
Abstain: None

City Council/Planning Agency Regular Meeting Minutes
Tuesday, October 8, 2024
5 7.1.2 Exploring the use of City-owned property at the Former Globe parcel (APN:
616-022-04) as a possible location for a Digital Freeway Billboard Recommendation: That the City Council receive the presentation regarding digital freeway billboards and provide direction to staff.

City Manager Hildenbrand provided a PowerPoint presentation on the item and responded to Council Member requests for additional information.

The following individual(s) provided public comments on Item No. 7.1.2:

Neel Patel, Traffic Commission Vice Chair
A motion to direct staff to prepare a draft RFP and return for City Council review was moved by Council Member Heft, seconded by Mayor Pro Tempore Sweeney.

Roll Call Vote Result: Passed
Yes 4, No 1, Abstained 0
Ayes: Mayor Pro Tempore Sweeney, Council Member Caskey, Council Member Heft, Council Member Pezold
Nays: Mayor Wheeler
Abstain: None

7.2 Award of Public Works Construction Contract and Award of a Professional Services Agreement for the Arterial Pavement Rehabilitation Project – Paseo de Valencia & La Paz Road, CIP 104/109, and Curb Ramp Replacement Project – Alicia Parkway
Recommendation: That the City Council:
1) Award the Public Works Construction Contract for the Arterial Pavement Rehabilitation Project – Paseo de Valencia & La Paz Road, CIP 104/109, and Curb Ramp Replacement Project – Alicia Parkway, to the lowest responsive bidder, Hardy & Harper, Inc., in the amount of $5,565,584.00;
2) Award a Professional Services Agreement to GMU Geotechnical, Inc. for pavement testing and observation services in the amount of $90,000; 3) Find that the Project is Categorically Exempt from the California Environmental Quality Act (CEQA), Class 1 Existing Facilities, pursuant to CEQA Guidelines, Section 15301;
4) Reject all other construction bids;
5) Authorize the City Manager to sign the Public Works Construction Contract with Hardy & Harper, Inc. and the Professional Services Agreement with GMU Geotechnical, Inc.;

City Council/Planning Agency Regular Meeting Minutes
Tuesday, October 8, 2024
6 6) Authorize the Finance Director to amend the budget to recognize revenue and expense in the amount of $200,000 from the Coronavirus Response and Relief Supplemental Appropriations Act of 2021;
7) Authorize the Finance Director to transfer $336,350 from CIP 101 into CIP 104; and
8) Authorize the Finance Director to amend the budget by allocating $3,000,000 from the General Fund Reserves into CIP No. 104.

Public Works Director/City Engineer Ames reviewed the information provided in the staff report, provided a PowerPoint presentation, and responded to Council requests for additional information.

City Manager Hildenbrand responded to Council Member requests for additional information.

A motion to approve staff's recommendation was moved by Mayor Pro Tempore Sweeney, seconded by Council Member Caskey.

Result: Passed
Yes 5, No 0, Abstained 0
Ayes: Mayor Wheeler, Mayor Pro Tempore Sweeney, Council Member Caskey, Council Member Heft, Council Member
Pezold
Nays: None
Abstain: None

8. Matters Agendized and Presented by City Council Members There were no matters agendized by City Council Members.

9. City Council Member Committee Reports

9.1 Committee Assignment Reports
The City Council received reports from City Council Members on the City Council Committee Assignments listed in the staff report.

10. City Council Member Comments
Council Member Pezold
Council Member Pezold expressed concerns regarding rust on railings and trash cans and the maintenance of water fountains at parks in the City.

Council Member Pezold shared an idea to create a ballfield at Costeau Park.

Council Member Pezold requested updates on cameras at Stockport Park and the

City Council/Planning Agency Regular Meeting Minutes
Tuesday, October 8, 2024
7 lighting of the LH on the Hill.

Council Member Pezold requested that money she has saved by not traveling for the past five years be allocated to planting dwarf cypress trees throughout the City to clean the air and abate traffic noise.

Council Member Pezold provided comments regarding sober living recovery homes.

Council Member Pezold expressed her concerns about a sign on Paseo de Valencia.

Council Member Caskey
Council Member Caskey reported on the recent Parks & Recreation Commission community workshops regarding park improvements.

Council Member Caskey provided comments regarding sober living recovery homes.

Council Member Heft
Council Member Heft provided comments regarding sober living recovery homes.

Council Member Heft reported on the City's 3rd Annual Heritage Day Fall Festival.

Mayor Wheeler
Mayor Wheeler requested a discussion regarding sober living recovery homes be agendized for a future meeting.

Mayor Wheeler requested a discussion regarding increasing the mailing notification radius for public hearings be increased be agendized for a future meeting.

Mayor Wheeler announced a City Council Workshop will be scheduled for October 22, 2024.

Adjournment
There being no further business before the City Council at this session, Mayor Wheeler declared the meeting adjourned at 10:29 p.m.
____________________________________
Jennifer Lee, City Clerk
ATTEST:
____________________________________
Dave Wheeler, Mayor
Approved at meeting of October 22, 2024.

Item No. 4.3
City of Laguna Hills
City Council / Planning Agency
Staff Report
Date: October 22, 2024
To: Mayor and Council Members
From: Eric Hendrickson, Finance Director
Issue: Ratification of October 22, 2024 Warrant Register Recommendation: That the City Council ratify the accompanying Warrant Register for the period from September 27, 2024, to October 10, 2024, in the amount of $1,379,395.23.

Background:

The City issues accounts payable disbursements on a regular basis and presents it to the City Council for ratification at its next regularly scheduled City Council Meeting. The attached Warrant Register containing checks and electronic funds transfers for the period from September 27, 2024, to October 10, 2024, is being presented for ratification by the City Council. Payments have been reviewed and approved by the appropriate departmental staff. The Finance Director certifies to the accuracy of the attached register and to the availability of monies for payment thereof.

Fiscal Impact:

Ratification of the accompanying Warrant Register includes disbursements totaling $1,379,395.23.

Attachments:

1. Warrant Register - October 22, 2024

2. Payables Detail Report - October 22, 2024

Payment Amount
8,099.28
735.00

31.60 669.00
595.00
2,131.36
1,080.00
182.90
7,313.00
913.00
388.47
10,417.22
788.90
49,788.33
265.31
115.00
17,111.94
140.82
2,000.00
131.25
5,645.00
6,649.50

58.38 1,237.50
4,993.91
559.63
180.00
401.58
187.95
2,190.00
3,000.17
790.32
14,442.95
1,680.00
1,550.14
180.00

35.00 360.00
1,223.75
274.78
4,610.82
747.77
4,148.00
34,461.40
19,027.50
8,400.00
1,050.00
840.00
8,999.20
7,691.43
795.00
1,354.50
420.00
10/11/2024 12:03:42 PM Page 1 of 4
4286 A-0392 AQUATICO 10/10/2024
4287 B-0304 BEE MAN, THE 10/10/2024
4288 B-0222 BILL'S SOUND AND SECURITY 10/10/2024
4283 Z-CD-0471 ALFREDO VENEGAS 10/10/2024
4284 A-0138 ALL CITY MANAGEMENT, INC. 10/10/2024
4285 A-0311 ALLIANT INSURANCE SERVICES 10/10/2024
4280 W-2452 WSP USA ENVIRONMENT AND INFRASTRUCTURE INC 10/03/2024 4281 A-0388 ABTECH TECHNOLOGIES, INC. 10/10/2024
4282 A-0377 ACTION WELDING CORP 10/10/2024
4277 T-2698 TPX COMMUNICATIONS 10/03/2024
4278 W-2337 WEST COAST ARBORISTS, INC. 10/03/2024
4279 R-1801 WOODRUFF & SMART, A PROFESSIONAL CORPORATION 10/03/2024 4274 S-1944 SOUTHERN CALIF MUN ATHLETIC FEDERATION 10/03/2024 4275 S-2250 SPARKLETTS 10/03/2024
4276 T-2712 TOTAL SOURCE OFFICEWORKS 10/03/2024
4271 S-2334 SEAN TRACY SIMON 10/03/2024
4272 S-2194 SECURE LIVE SCAN 10/03/2024
4273 S-2331 SKYLINE PEST CONTROL 10/03/2024
4268 R-1806 RJM DESIGN GROUP, INC. 10/03/2024
4269 Z-CD-0173 ROOFING STANDARDS, INC. 10/03/2024
4270 S-2332 SANTA MARGARITA PLUMBING AND AIR 10/03/2024 4265 Z-CD-0203 PACIFIC CREST ROOFING 10/03/2024
4266 Q-1717 QUADIENT FINANCE USA, INC. 10/03/2024
4267 Q-1718 QUINN COMPANY 10/03/2024
4262 C-1227 NAMAN VINSON COBB 10/03/2024
4263 O-1546 OFFICE SOLUTIONS 10/03/2024
4264 O-1500 ORANGE COUNTY REGISTER 10/03/2024
4259 A-0317 MICHAEL ABRAHAM 10/03/2024
4260 M-1612 MINUTEMAN PRESS 10/03/2024
4261 M-1388 MOBILE MINI, INC. 10/03/2024
4256 H-0829 HARTZOG AND CRABILL, INC. 10/03/2024
4257 J-1057 JAMEY CLARK, INC. 10/03/2024
4258 M-1304 MARTIN LOCK AND SAFE CO. 10/03/2024
4253 Z-CD-0486 ECOWATER SO CAL 10/03/2024
4254 G-0821 G2 CONSTRUCTION INC. 10/03/2024
4255 G-0868 GLASER WEIL FINK HOWARD AVCHEN & SHAPIRO LLP 10/03/2024 4250 D-0541 DIAMOND ENVIRONMENTAL SERVICES, LP 10/03/2024 4251 D-0561 DOCU-TRUST 10/03/2024
4252 D-0523 DUDEK 10/03/2024
4247 C-1008 COUNTY OF ORANGE, NPDES 10/03/2024
4248 C-0023 COX COMMUNICATION 10/03/2024
4249 D-0584 DAVID VOLZ DESIGN LANDSCAPE ARCHITECTS, INC. 10/03/2024 4244 C-1181 CIVICPLUS, LLC 10/03/2024
4245 C-1190 COUNTY OF ORANGE 10/03/2024
4246 C-1191 COUNTY OF ORANGE 10/03/2024
4241 C-1177 CANON FINANCIAL SERVICES, INC. 10/03/2024
4242 Z-CD-0485 CHARLES JOHNSON ROOFING 10/03/2024
4243 C-1024 CHRISTOPHERSON FIRE PROTECTION 10/03/2024
4238 A-0365 AT AND T - CALNET 3 10/03/2024
4239 B-0304 BEE MAN, THE 10/03/2024
4240 B-0222 BILL'S SOUND AND SECURITY 10/03/2024
Payment Type: Regular
4236 A-0138 ALL CITY MANAGEMENT, INC. 10/03/2024
4237 Z-CD-0322 ANDREW SOUTH 10/03/2024
Warrant Register - October 22, 2024
City of Laguna Hills, CA By Check Number
Date Range: 09/27/2024 - 10/10/2024
Check Number Vendor Number Vendor Name Payment Date

Payment Amount
23,417.00
3,640.50
3,644.70

50.00 956.61
2,403.60
417.01
7,525.09
-
619.45
23,068.86
13,960.00
6,357.75
232.21
1,960.19
150.00
14,344.31
9,900.00
163.36
3,878.50
2,701.50
142.00
650.58
330.00

57.00 500.00
11,733.74
16,343.36
110.72
810.00
866.39
164.70
30,112.45
Total Regular: 422,295.14
10/11/2024 12:03:42 PM Page 2 of 4
4319 T-2639 TURF STAR, INC. 10/10/2024
4320 U-2165 UNDERGROUND SERVICE ALERT OF SO CALIFORNIA 10/10/2024 4321 W-2337 WEST COAST ARBORISTS, INC. 10/10/2024
4316 S-2319 SCA OF CA, LLC 10/10/2024
4317 S-1904 SOUTHERN CALIFORNIA EDISON 10/10/2024
4318 Z-CD-0488 SUNI ROOFING INC 10/10/2024
4313 Z-PS-0044 RUBEN CRUZ ESPINOZA 10/10/2024
4314 Z-CD-0489 RYAN HEENAN 10/10/2024
4315 S-1902 SAN DIEGO GAS AND ELECTRIC 10/10/2024
4310 P-1839 PAPER DEPOT 10/10/2024
4311 P-1851 PEDROZA READY MIX 10/10/2024
4312 R-1977 RJ ELECTRIC 10/10/2024
4307 O-1610 ORACLE AMERICA, INC. 10/10/2024
4308 C-1003 ORANGE COUNTY TREASURER-TAX COLLECTOR 10/10/2024 4309 Z-CD-0487 PACIFIC ROOFING SYSTEMS 10/10/2024
4304 S-2340 KATHLEEN ADELIA SANDOVAL 10/10/2024
4305 M-1302 MOULTON NIGUEL WATER DISTRICT 10/10/2024
4306 N-1487 NUVIS LANDSCAPE ARCHITECTURE 10/10/2024
4301 H-0960 HR GREEN PACIFIC, INC. 10/10/2024
4302 I-0942 IRVINE RANCH WATER DISTRICT 10/10/2024
4303 J-1057 JAMEY CLARK, INC. 10/10/2024
4298 D-0575 DOG WASTE DEPOT 10/10/2024
4299 E-0504 EL TORO WATER DISTRICT 10/10/2024
4300 G-0871 GOVERNMENT CONSULTING PARTNERS 10/10/2024
4295 D-0583 DMS FACILITY SERVICES, LLC 10/10/2024
4296 D-0583 DMS FACILITY SERVICES, LLC 10/10/2024
4297 **Void** 10/10/2024
4292 Z-PS-0045 DANIEL TORRES 10/10/2024
4293 D-0461 DATA TICKET, INC. 10/10/2024
4294 D-0578 DE NOVO PLANNING GROUP 10/10/2024
4289 C-1144 CHARLES ABBOTT ASSOCIATES, INC 10/10/2024
4290 C-1021 CIVIC SOLUTIONS, INC. 10/10/2024
4291 C-1122 CROSSTOWN ELECTRICAL AND DATA, INC. 10/10/2024 Warrant Register - October 22, 2024 Date Range: 09/27/2024 - 10/10/2024 Check Number Vendor Number Vendor Name Payment Date

Payment Amount
7,224.00
946,274.80
3,601.29
10/11/2024 12:03:42 PM Page 3 of 4
EFT's 0 0 0.00 0.00
150 89 0.00 1,379,395.23
Voided Checks 0 1 0.00 0.00
Bank Drafts 3 3 0.00 957,100.09
Regular Checks 147 85 0.00 422,295.14
Manual Checks 0 0 0.00 0.00
DFT0002953 C-1007 OCSD LAW ENFORCEMENT CONTRACT, OC TREASURER-TAX COLLECTOR 10/03/2024 Total Bank Draft: 957,100.09
Bank Code 1 - General Summary
Payable
Count
Payment
Payment Type Count Discount Payment
Payment Type: Bank Draft
DFT0002951 H-0966 HIGH LEVEL SECURITY SOLUTIONS, INC. 10/10/2024 DFT0002952 C-1007 OCSD LAW ENFORCEMENT CONTRACT, OC TREASURER-TAX COLLECTOR 10/10/2024 Warrant Register - October 22, 2024 Date Range: 09/27/2024 - 10/10/2024 Check Number Vendor Number Vendor Name Payment Date

1,379,395.23
10/11/2024 12:03:42 PM Page 4 of 4
Fund Summary
Fund Name Period Amount
998 Pooled Cash & Investments 10/2024 1,379,395.23
EFT's 0 0 0.00 0.00
150 89 0.00 1,379,395.23
Voided Checks 0 1 0.00 0.00
Bank Drafts 3 3 0.00 957,100.09
Regular Checks 147 85 0.00 422,295.14
Manual Checks 0 0 0.00 0.00
Warrant Register - October 22, 2024 Date Range: 09/27/2024 - 10/10/2024 All Bank Codes Check Summary
Payable
Count
Payment
Payment Type Count Discount Payment

Amount
10/03/2024 TOTAL SOURCE OFFICEWORKS 36112 Office Supplies, Jul '24 100-195-620000 382.68 10/03/2024 TOTAL SOURCE OFFICEWORKS 36132 Office Supplies, Jul '24 100-195-620000 340.45 10/11/2024 12:12:10 PM Page 1 of 7
10/03/2024 CANON FINANCIAL SERVICES, INC. 35187940 Copier Lease SN 2HT04285, 9/1/24 - 9/30/24
100-195-641200 253.84
10/03/2024 CANON FINANCIAL SERVICES, INC. 35187941 Copier Usage SN 2XK05658, 8/1/24 - 8/31/24
100-195-641200 119.28
10/03/2024 CANON FINANCIAL SERVICES, INC. 35187941 Copier Lease SN 2XK05658, 9/1/24 - 9/30/24
100-195-641200 303.86
10/03/2024 SKYLINE PEST CONTROL 319326 Pest and Rodent Control, Sep '24 100-310-645500 360.00 10/03/2024 CANON FINANCIAL SERVICES, INC. 35187263 Lease - Copier SN 2KS02091, 9/1/24 - 9/30/24
100-195-641200 317.82
10/03/2024 CANON FINANCIAL SERVICES, INC. 35187940 Copier Usage SN 2HT04285, 6/1/24 - 8/31/24
100-195-641200 1,136.56
10/03/2024 QUINN COMPANY 30030401 Oso Trail Culvert, Sep '24 100-355-720401 790.32 10/03/2024 CIVICPLUS, LLC 310294 ADA Website Project, 7/1/25 - 100-000-140000 1,218.83 10/03/2024 CIVICPLUS, LLC 310294 ADA Website Project, 8/21/24 - 6/30/25
100-195-700090 6,094.17
10/03/2024 G2 CONSTRUCTION INC. 240917-LH-F Fossil Reef Park, Grate Fabrication & Installation
100-355-720401 2,000.00
10/03/2024 MICHAEL ABRAHAM 24102 CRIS Update for VitalValt Integration - Final
100-195-700090 1,237.50
10/03/2024 GLASER WEIL FINK HOWARD

AVCHEN & SHAPIRO LLP
294706 Professional Services Legal, Aug '24 100-155-700011 131.25 10/03/2024 DUDEK 202407648 Housing Study & MND, USE-0147- 2023, 7/27 - 8/23/24
100-000-223000 17,111.94
10/03/2024 WEST COAST ARBORISTS, INC. 218922 Tree Trimming Services, 8/7/24 - 8/8/24
100-355-720702 4,148.00
10/03/2024 HARTZOG AND CRABILL, INC. 24-0593(HCI#3502) Traffic Signal Mgmt Services, Aug '24 100-356-700101 5,645.00 10/03/2024 SECURE LIVE SCAN 15726 Pre-employment Fingerprinting, Sep '24
100-195-617000 35.00
10/03/2024 SANTA MARGARITA PLUMBING AND
AIR
16609-40005 Plumbing Repairs, Sep '24 100-355-720701 1,550.14 10/03/2024 TPX COMMUNICATIONS 181818807-0 Communications Expense, 9/23/24 - 10/22/24
100-195-630000 747.77
10/03/2024 BEE MAN, THE 131633 Bee Removal, Public Works, Sep '24 100-355-720701 279.00 10/03/2024 BEE MAN, THE 131635 Bee Removal, Public Works, Sep '24 100-355-720701 195.00 10/03/2024 BEE MAN, THE 131636 Bee Removal, Public Works, Sep '24 100-355-720701 195.00 10/03/2024 SEAN TRACY SIMON 092724 Adult Basketball League Referee, 9/19 & 9/26/24
100-310-622502 180.00
10/03/2024 SPARKLETTS 12194330 091124 Operating Supplies, Comm Ctr, 8/21/24 - 9/9/24
100-310-622005 274.78
10/03/2024 CHRISTOPHERSON FIRE PROTECTION 12461907 Fire Certification Inspection, Sep '24 100-310-645500 182.90 10/03/2024 SOUTHERN CALIF MUN ATHLETIC

FEDERATION
092424/LAGUNAH Program Class Insurance, Community
Services
100-310-690500 1,223.75
10/03/2024 QUADIENT FINANCE USA, INC. 092624 Postage Replenishment, Sep '24 100-195-625000 3,000.17 10/03/2024 NAMAN VINSON COBB 092724 Adult Basketball League Referee, 9/19 & 9/26/24
100-310-622502 180.00
10/03/2024 COX COMMUNICATION 091924 Cable, City Hall, 9/18/24 - 10/17/24 100-195-630000 21.60 10/03/2024 COX COMMUNICATION 092024 WiFi, City Hall, 9/19/24 - 10/18/24 100-195-630000 182.62 10/03/2024 ORANGE COUNTY REGISTER 092324 Subscription, City Hall, 10/22/24 - 4/22/25
100-155-626000 187.95
10/03/2024 DIAMOND ENVIRONMENTAL

SERVICES, LP
0005474117 Build-A-Fort Restroom, 7/2/24 -
7/7/24
100-310-695503 265.31
10/03/2024 DOCU-TRUST 0054206 Offsite Data Storage, Oct '24 100-155-700030 115.00 10/03/2024 COX COMMUNICATION 091824 T-1 Line, 9/17/24 - 10/16/24 100-195-630000 584.68 Payables Detail Report
City of Laguna Hills, CA By Fund
Payment Dates 09/27/2024 - 10/10/2024
Payment Date Vendor Name Payable Number Description (Item) Account Number Fund: 100 - General Fund
10/03/2024 AT AND T - CALNET 3 000022254498 Traffic Signal, 8/6/24 - 9/5/24 100-356-630000 31.60

Amount
10/03/2024 ECOWATER SO CAL PLMR-0116-2024 Refund, Permit Cancellation, REC013556-2024100-000-221012 4.00 10/03/2024 ECOWATER SO CAL PLMR-0116-2024 Refund, Permit Cancellation, REC013556-2024100-000-442000 131.22 10/11/2024 12:12:10 PM Page 2 of 7
10/03/2024 OFFICE SOLUTIONS I-02256817 Operating Supplies, Sep '24 100-195-622000 378.60 10/03/2024 OFFICE SOLUTIONS I-02257158 Operating Supplies, Sep '24 100-195-622000 22.98 10/03/2024 ECOWATER SO CAL PLMR-0116-2024 Refund, Permit Cancellation, REC013556-2024100-000-221011 1.00 10/03/2024 PACIFIC CREST ROOFING BLDR-0027-2024 BLDR-0027-2024, C&D Refund, REC012054-2024100-000-227001 2,190.00 10/03/2024 ANDREW SOUTH BLDR-0306-2024 BLDR-0306-2024, C&D Refund, REC013420-2024100-000-227001 735.00 10/03/2024 CHARLES JOHNSON ROOFING BLDR-0313-2024 BLDR-0313-2024, C&D Refund, REC013498-2024100-000-227001 1,080.00 10/03/2024 MOBILE MINI, INC. 9021833032 Storage Rental, Community Center, 9/4/24 - 10/1/24
100-310-641000 217.80
10/03/2024 MOBILE MINI, INC. 9021902008 Storage Rental, Community Center, 9/12 - 10/9/24
100-310-641000 341.83
10/03/2024 ALL CITY MANAGEMENT, INC. 95476 Crossing Guard Services, 9/1/24 - 9/14/24
100-420-720822 8,099.28
10/03/2024 WOODRUFF & SMART, A

PROFESSIONAL CORPORATION
76859 Professional Services, Legal, Aug '24 100-155-700011 1,443.00 10/03/2024 WOODRUFF & SMART, A

PROFESSIONAL CORPORATION
76860 Prof Services, Legal, Aug '24, USE0147-2023100-000-223000 212.80 10/03/2024 WOODRUFF & SMART, A

PROFESSIONAL CORPORATION
76861 Prof Services, Legal, Aug '24, USE0165-2023100-000-223000 9,089.60 10/03/2024 WOODRUFF & SMART, A

PROFESSIONAL CORPORATION
76859 Prof Services, Legal, Aug '24, USE0110-2022100-000-223000 2,205.00 10/03/2024 WOODRUFF & SMART, A

PROFESSIONAL CORPORATION
76859 Prof Services, Legal, Aug '24, USE0182-2024100-000-223000 808.50 10/03/2024 WOODRUFF & SMART, A

PROFESSIONAL CORPORATION
76859 Professional Services, Legal, Aug '24 100-155-700010 20,702.50 10/03/2024 JAMEY CLARK, INC. 75509 Park Repairs, Public Works, Sep '24 100-355-720701 2,511.00 10/03/2024 JAMEY CLARK, INC. 75510 Graffiti Removal, Public Works, Sep 100-355-720500 558.00 10/03/2024 JAMEY CLARK, INC. 75511 Pressure Wash Patio & Sidewalk, Sep '24
100-310-721505 2,604.00
10/03/2024 MINUTEMAN PRESS 639 Heritage Day Mailers, Sep '24 100-310-695531 4,993.91 10/03/2024 JAMEY CLARK, INC. 75497 Graffiti Removal, Public Works, Sep 100-355-720500 604.50 10/03/2024 JAMEY CLARK, INC. 75504 Park Repairs, Public Works, Sep '24 100-355-720701 372.00 10/03/2024 TOTAL SOURCE OFFICEWORKS 37067 Office Supplies, Oct '24 100-195-620000 43.76 10/03/2024 WSP USA ENVIRONMENT AND

INFRASTRUCTURE INC
40084502 Professional Services, NPDES Support,
Aug '24
100-355-700000 19,027.50
10/03/2024 BILL'S SOUND AND SECURITY 44610 Fire Alarm Inspection/Testing, Sep '24 100-310-630100 595.00 10/03/2024 TOTAL SOURCE OFFICEWORKS 36974 Office Supplies, Sep '24 100-195-620000 194.42 10/03/2024 TOTAL SOURCE OFFICEWORKS 37037 Computer Supplies, Sep '24 100-195-621000 467.16 10/03/2024 TOTAL SOURCE OFFICEWORKS 37048 Operating Supplies, Sep '24 100-195-622000 252.85 10/03/2024 TOTAL SOURCE OFFICEWORKS 36818 Office Supplies, Sep '24 100-155-620000 146.66 10/03/2024 TOTAL SOURCE OFFICEWORKS 36818 Computer Supplies, Sep '24 100-195-621000 105.11 10/03/2024 TOTAL SOURCE OFFICEWORKS 36829 Operating Supplies, Community Development, Sep '24
100-225-622000 107.74
10/03/2024 TOTAL SOURCE OFFICEWORKS 36817 Computer Supplies, Sep '24 100-195-621000 222.51 10/03/2024 TOTAL SOURCE OFFICEWORKS 36817 Operating Supplies, Sep '24 100-195-622000 182.17 10/03/2024 TOTAL SOURCE OFFICEWORKS 36817 Operating Supplies, Public Works, Sep '24
100-355-622000 89.40
10/03/2024 TOTAL SOURCE OFFICEWORKS 36733 Operating Supplies, Aug '24 100-155-622000 32.31 10/03/2024 TOTAL SOURCE OFFICEWORKS 36733 Operating Supplies, Aug '24 100-195-622000 44.34 10/03/2024 TOTAL SOURCE OFFICEWORKS 36817 Office Supplies, Sep '24 100-195-620000 136.49 10/03/2024 TOTAL SOURCE OFFICEWORKS 36545 Office Supplies, Aug '24 100-195-620000 357.66 10/03/2024 TOTAL SOURCE OFFICEWORKS 36545 Operating Supplies, Aug '24 100-195-622000 114.18 10/03/2024 TOTAL SOURCE OFFICEWORKS 36722 Office Supplies, Aug '24 100-195-620000 193.93 Payment Date Vendor Name Payable Number Description (Item) Account Number 10/03/2024 TOTAL SOURCE OFFICEWORKS 36298 Computer Supplies, Jul '24 100-195-621000 1,154.99 10/03/2024 TOTAL SOURCE OFFICEWORKS 36494 Office Supplies, Aug '24 100-155-620000 42.01 Payables Detail Report Payment Dates: 09/27/2024 - 10/10/2024

Amount
10/10/2024 JAMEY CLARK, INC. 75539 Park Repairs, Public Works, Sep '24 100-355-720701 334.25 10/10/2024 JAMEY CLARK, INC. 75552 Park Repairs, Public Works, Sep '24 100-355-720701 305.15 10/11/2024 12:12:10 PM Page 3 of 7
10/10/2024 HIGH LEVEL SECURITY SOLUTIONS,
INC.
5837 Private Security Patrol, 9/23/24 -
10/6/24
100-420-720850 7,224.00
10/10/2024 CHARLES ABBOTT ASSOCIATES, INC 67907 Professional Services, Sep '24 100-225-700000 23,417.00 10/10/2024 DOG WASTE DEPOT 727191 Operating Supplies, Sep '24 100-355-622000 619.45 10/10/2024 CROSSTOWN ELECTRICAL AND DATA,
INC.
4296-24-009 Traffic Signal Maintenance, Sep '24 100-356-720420 3,644.70 10/10/2024 DE NOVO PLANNING GROUP 4423 Hazard Mitigation Plan, Sep '24 100-355-700300 2,403.60 10/10/2024 BILL'S SOUND AND SECURITY 44702 Fire Alarm Monitoring, Oct - Dec '24 100-310-630100 420.00 10/10/2024 ALLIANT INSURANCE SERVICES 2835395 Special Event Liability Insurance, 1/1/23 - 1/1/24
100-310-690501 1,415.68
10/10/2024 ALLIANT INSURANCE SERVICES 2835426 Special Event Liability Insurance, 1/1/24 - 1/1/25
100-310-690501 6,275.75
10/10/2024 AQUATICO 372-275 Fountains/Water Features
Maintenance, Oct '24
100-310-645500 795.00
10/10/2024 NUVIS LANDSCAPE ARCHITECTURE 27412 Professional Services, USE-0166- 2023, Jun '24
100-000-223000 900.00
10/10/2024 NUVIS LANDSCAPE ARCHITECTURE 27557 Professional Services, USE-0165- 2023, Aug '24
100-000-223000 4,050.00
10/10/2024 NUVIS LANDSCAPE ARCHITECTURE 27558 Professional Services, USE-0171- 2024, Aug '24
100-000-223000 3,700.00
10/10/2024 PEDROZA READY MIX 19999-OC Public Works Other, Sep '24 100-355-720401 650.58 10/10/2024 WEST COAST ARBORISTS, INC. 219658 Tree Trimming Services, 8/16/24 - 8/31/24
100-355-720702 30,112.45
10/10/2024 NUVIS LANDSCAPE ARCHITECTURE 27399 Professional Services, LEG-0007-2022, Jun '24
100-000-223000 1,250.00
10/10/2024 DATA TICKET, INC. 170742 Process Fee, Parking Citations, Sep 100-420-720823 956.61 10/10/2024 ACTION WELDING CORP 17633 Parks Contract Repair, Sep '24 100-355-720701 1,050.00 10/10/2024 HR GREEN PACIFIC, INC. 179889 Public Works Permit Inspections, Sep '24
100-355-700255 6,357.75
10/10/2024 BEE MAN, THE 131818 Bee Removal, Public Works, Sep '24 100-355-720701 463.50 10/10/2024 BEE MAN, THE 131819 Bee Removal, Public Works, Sep '24 100-355-720701 486.00 10/10/2024 BEE MAN, THE 131833 Bee Removal, Public Works, Sep '24 100-355-720701 225.00 10/10/2024 CIVIC SOLUTIONS, INC. 104516 Contract Staffing Services, Aug '24 100-225-720512 922.50 10/10/2024 GOVERNMENT CONSULTING

PARTNERS
106 User Fee Analysis & Calculation, Oct
'24
100-155-700050 13,960.00
10/10/2024 BEE MAN, THE 131769 Bee Removal, Public Works, Sep '24 100-355-720701 180.00 10/10/2024 EL TORO WATER DISTRICT 100924 Water Usage, Public Works, Aug '24 100-355-635000 23,068.86 10/10/2024 ORACLE AMERICA, INC. 101571138 Offsite Backup, Sep '24 100-195-720050 163.36 10/10/2024 CIVIC SOLUTIONS, INC. 104043 Consultant Services, USE-0166-2023, Jun '24
100-000-223000 2,718.00
10/10/2024 IRVINE RANCH WATER DISTRICT 100224 Utilities - Water, 9/2/24 - 10/1/24 100-355-635000 232.21 10/10/2024 SAN DIEGO GAS AND ELECTRIC 100224 Utilities - Electric, 9/1/24 - 9/30/24 100-356-631400 11,733.74 10/10/2024 KATHLEEN ADELIA SANDOVAL 100824 Heritage Day, Acjachemen Tribe Performance
100-310-695531 150.00
10/10/2024 MOULTON NIGUEL WATER DISTRICT 091924 Utilities - Water, 8/20/24 - 9/16/24 100-355-635000 88.16 10/10/2024 SOUTHERN CALIFORNIA EDISON 092024 - Acct #700076000453 Utilities - Electric, 8/1/24 - 9/19/24 100-356-631400 110.72 10/10/2024 MOULTON NIGUEL WATER DISTRICT 092624 Utilities - Water, 8/27/24 - 9/23/24 100-355-635000 14,256.15 10/03/2024 COUNTY OF ORANGE SH 69460 Fingerprint ID System Charges, Sep 100-420-720835 913.00 10/03/2024 OCSD LAW ENFORCEMENT

CONTRACT, OC TREASURER-TAX
SH 69507 Law Enforce Suppl Svcs, Sep '24,
Hawks Hail Heroes
100-420-720800 3,601.29
10/03/2024 COUNTY OF ORANGE STTM002417 Communications Charges, 7/1/24 - 7/31/24
100-420-646000 388.47
10/03/2024 COUNTY OF ORANGE, NPDES PW250196 NPDES Water Quality Ordinance, FY 24/25
100-355-696000 679.92
10/03/2024 COUNTY OF ORANGE, NPDES PW250234 South OC Watershed Management Co-Op, FY 24/25
100-355-696000 8,677.09
10/03/2024 MARTIN LOCK AND SAFE CO. Q93934 Keys, Sep '24 100-355-622000 58.38 Payment Date Vendor Name Payable Number Description (Item) Account Number 10/03/2024 ECOWATER SO CAL PLMR-0116-2024 Refund, Permit Cancellation, REC013556-2024100-000-442007 4.60 10/03/2024 COUNTY OF ORANGE, NPDES PW250126 San Juan Creek Watershed Cost Share, FY 24/25
100-355-696000 1,060.21
Payables Detail Report Payment Dates: 09/27/2024 - 10/10/2024

Amount
10/03/2024 ROOFING STANDARDS, INC. BLDR-0303-2023 BLDR-0303-2023, C&D Refund, REC011252-2023307-000-436000 600.00 10/03/2024 ROOFING STANDARDS, INC. BLDR-0306-2023 BLDR-0306-2023, C&D Refund, REC011255-2023307-000-436000 660.00 Fund 307 - Construction & Demolition Forfeited Deposits Fund Total: 1,680.00 10/11/2024 12:12:10 PM Page 4 of 7
10/10/2024 RJ ELECTRIC 63274 Electric Repairs, El Toro Bus Shelter, Sep '24
212-355-720400 330.00
10/10/2024 UNDERGROUND SERVICE ALERT OF

SO CALIFORNIA
920240381 Street Maintenance, Sep '24 212-355-720400 126.55 Fund 212 - Measure M2 Fund Total: 16,838.06
Fund: 307 - Construction & Demolition Forfeited Deposits Fund 10/03/2024 ROOFING STANDARDS, INC. BLDR-0289-2023 BLDR-0289-2023, C&D Refund, REC011192-2023307-000-436000 420.00 10/10/2024 ABTECH TECHNOLOGIES, INC. W205326-IN Computer Consulting Services, Sep 100-195-700090 8,400.00 Fund 100 - General Fund Total: 1,296,645.89
Fund: 212 - Measure M2 Fund
10/10/2024 SCA OF CA, LLC 136059SP Street Sweeping Services, Sep '24 212-355-720410 16,343.36 10/10/2024 UNDERGROUND SERVICE ALERT OF

SO CALIFORNIA
24-250991 Street Maintenance, Sep '24 212-355-720400 38.15 10/10/2024 DMS FACILITY SERVICES, LLC STL-000585 Landscape Services, Sep '24 100-355-720700 1,440.00 10/10/2024 DMS FACILITY SERVICES, LLC STL-000586 Landscape Services, Sep '24 100-355-720700 120.08 10/10/2024 DMS FACILITY SERVICES, LLC STL-000594 Landscape Services, Sep '24 100-355-720700 393.61 10/10/2024 DMS FACILITY SERVICES, LLC STL-000576 Landscape Services, Jul '24 100-355-720700 417.01 10/10/2024 DMS FACILITY SERVICES, LLC STL-000582 Landscape Services, Sep '24 100-355-720700 117.12 10/10/2024 DMS FACILITY SERVICES, LLC STL-000584 Landscape Services, Sep '24 100-355-720700 115.00 10/10/2024 DMS FACILITY SERVICES, LLC STL-000526 Landscape Services, Aug '24 100-355-720700 287.21 10/10/2024 DMS FACILITY SERVICES, LLC STL-000562 Landscape Services, Jul '24 100-355-720700 117.90 10/10/2024 DMS FACILITY SERVICES, LLC STL-000563 Landscape Services, Jul '24 100-355-720700 783.43 10/10/2024 DMS FACILITY SERVICES, LLC STL-000520 Landscape Services, Aug '24 100-355-720700 295.26 10/10/2024 DMS FACILITY SERVICES, LLC STL-000522 Landscape Services, Aug '24 100-355-720700 357.48 10/10/2024 DMS FACILITY SERVICES, LLC STL-000523 Landscape Services, Aug '24 100-355-720700 385.78 10/10/2024 DMS FACILITY SERVICES, LLC STL-000517 Landscape Services, Aug '24 100-355-720700 2,168.00 10/10/2024 DMS FACILITY SERVICES, LLC STL-000518 Landscape Services, Aug '24 100-355-720700 142.31 10/10/2024 DMS FACILITY SERVICES, LLC STL-000519 Landscape Services, Aug '24 100-355-720700 334.10 10/10/2024 DMS FACILITY SERVICES, LLC STL-000511 Landscape Services, Aug '24 100-355-720700 83.88 10/10/2024 DMS FACILITY SERVICES, LLC STL-000515 Landscape Services, Aug '24 100-355-720700 279.91 10/10/2024 DMS FACILITY SERVICES, LLC STL-000516 Landscape Services, Aug '24 100-355-720700 104.02 10/10/2024 RYAN HEENAN POOLR-0126-2022 POOLR-0126-2022, Pool Bond Refund, REC-008872-2022
100-000-228001 500.00
10/10/2024 ORANGE COUNTY TREASURER-TAX

COLLECTOR
SEP 24 Parking Fee Surcharge, Sep '24 100-420-720823 3,878.50 10/10/2024 OCSD LAW ENFORCEMENT

CONTRACT, OC TREASURER-TAX
SH 69687 Law Enforcement Services, Oct '24 100-420-720800 946,274.80 10/10/2024 TURF STAR, INC. INV047095 Maintenance Utility Cart, Comm Svcs, Sep '24
100-310-646100 866.39
10/10/2024 DANIEL TORRES LH010007490 Refund, Citation #LH010007490 100-000-460100 50.00 10/10/2024 RUBEN CRUZ ESPINOZA LH113362 Refund, Citation #LH113362 100-000-460100 57.00 10/10/2024 SUNI ROOFING INC BLDR-0299-2024 BLDR-0299-2024, C&D Refund, REC013372-2024100-000-227001 810.00 10/10/2024 ALFREDO VENEGAS BLDR-0328-2024 BLDR-0328-2024, C&D Refund, REC013605-2024100-000-227001 840.00 10/10/2024 PAPER DEPOT IN20053-8483 Professional Services, City Clerk, Apr '24
100-155-700030 142.00
10/10/2024 ALL CITY MANAGEMENT, INC. 95872 Crossing Guard Services, 9/15/24 - 9/28/24
100-420-720822 8,999.20
10/10/2024 PACIFIC ROOFING SYSTEMS BLDC-0030-2024 BLDC-0030-2024, C&D Refund, REC012789-2024100-000-227001 1,846.50 10/10/2024 PACIFIC ROOFING SYSTEMS BLDC-0051-2024 BLDC-0051-2024, C&D Refund, REC013189-2024100-000-227001 855.00 Payment Date Vendor Name Payable Number Description (Item) Account Number 10/10/2024 JAMEY CLARK, INC. 75553 Park Repairs, Public Works, Sep '24 100-355-720701 843.29 10/10/2024 JAMEY CLARK, INC. 75554 Park Repairs, Public Works, Sep '24 100-355-720701 477.50 Payables Detail Report Payment Dates: 09/27/2024 - 10/10/2024

Amount
10/03/2024 DAVID VOLZ DESIGN LANDSCAPE
ARCHITECTS, INC.
422873 El Conejo & Mackenzie Parks, CIP
#241, Aug '24
600-252-950241 49,788.33
Fund 600 - Capital Improvement Projects Fund Total: -
Grand Total: 1,379,395.23
10/11/2024 12:12:10 PM Page 5 of 7
10/03/2024 RJM DESIGN GROUP, INC. 36660 Veeh Ranch & San Remo Rehab, CIP #241, Aug '24
600-000-490311 (8,705.40)
10/03/2024 RJM DESIGN GROUP, INC. 36660 Veeh Ranch & San Remo Rehab, CIP #241, Aug '24
600-252-950241 8,705.40
10/03/2024 DAVID VOLZ DESIGN LANDSCAPE
ARCHITECTS, INC.
422873 El Conejo & Mackenzie Parks, CIP
#241, Aug '24
600-000-490311 (49,788.33)
10/03/2024 DAVID VOLZ DESIGN LANDSCAPE
ARCHITECTS, INC.
422873 El Conejo & Mackenzie Parks, CIP
#241, Aug '24
311-000-790600 49,788.33
Fund 311 - Quimby Act Park In-Lieu Fee (VALH) Fund Total: 64,231.28 Fund: 600 - Capital Improvement Projects Fund
10/03/2024 RJM DESIGN GROUP, INC. 36659 Cabot Park Rehabilitation, CIP #241, Aug '24
600-000-490311 (5,737.55)
10/03/2024 RJM DESIGN GROUP, INC. 36659 Cabot Park Rehabilitation, CIP #241, Aug '24
600-252-950241 5,737.55
Payables Detail Report Payment Dates: 09/27/2024 - 10/10/2024 Payment Date Vendor Name Payable Number Description (Item) Account Number Fund: 311 - Quimby Act Park In-Lieu Fee (VALH) Fund
10/03/2024 RJM DESIGN GROUP, INC. 36659 Cabot Park Rehabilitation, CIP #241, Aug '24
311-000-790600 5,737.55
10/03/2024 RJM DESIGN GROUP, INC. 36660 Veeh Ranch & San Remo Rehab, CIP #241, Aug '24
311-000-790600 8,705.40

10/11/2024 12:12:10 PM Page 6 of 7
100-355-700000 Professional Services 19,027.50
100-355-700255 Improvement Inspections 6,357.75
100-355-700300 Hazard Mitigation Plan 2,403.60
100-355-720401 Other Public Works Maintenance 3,440.90
100-355-720500 Graffiti Removal 1,162.50
100-355-720700 Landscape Maintenance 7,942.10
100-310-695503 Build A Fort Camps 265.31
100-310-695531 Heritage Day 5,143.91
100-310-721505 Contract Services - Janitorial & 2,604.00 100-355-622000 Operating Supplies 767.23
100-355-635000 Utilities - Water 37,645.38
100-355-696000 NPDES Permits & Fees 10,417.22
100-310-630100 Telephone & Communications - 1,015.00
100-310-641000 Equipment Rentals & Leases 559.63
100-310-645500 Facility Maintenance & Repairs 1,337.90
100-310-646100 Vehicle Maintenance & Repairs 866.39
100-310-690500 Insurance - Recreational Classes 1,223.75 100-310-690501 Facility Rentals - 7,691.43
100-195-720050 Contract Services - Software 163.36
100-225-622000 Operating Supplies 107.74
100-225-700000 Professional Services - Building & 23,417.00 100-225-720512 Contract Services - Staffing 922.50
100-310-622005 Operating Supplies - Community 274.78
100-310-622502 Supplies - Adult Leagues 360.00
100-195-621000 Computer Supplies 1,949.77
100-195-622000 Operating Supplies 995.12
100-195-625000 Postage & Delivery 3,000.17
100-195-630000 Telephone & Communications 1,536.67
100-195-641200 Copier Leases 2,131.36
100-195-700090 Computer Consulting Services 15,731.67
100-155-700010 Legal Services - General Counsel 20,702.50 100-155-700011 Legal Services - Litigation 1,574.25
100-155-700030 Professional Services - City Clerk 257.00 100-155-700050 Professional Services - Financial 13,960.00 100-195-617000 Recruitment 35.00
100-195-620000 Office Supplies 1,649.39
100-000-442000 Building Related Permits 131.22
100-000-442007 Imaging Plans & Documents Fee 4.60
100-000-460100 Parking Citations 107.00
100-155-620000 Office Supplies 188.67
100-155-622000 Operating Supplies 32.31
100-155-626000 Subscriptions & Books 187.95
100-000-140000 Prepaid Items 1,218.83
100-000-221011 Building Standards Fee 1.00
100-000-221012 SB1186 ADA CASp Fees 4.00
100-000-223000 Plan Application Deposit 42,045.84
100-000-227001 Security Deposit - Waste 8,356.50
100-000-228001 Swimming Pool Construction 500.00
Fund Payment Amount
100 - General Fund 1,296,645.89
212 - Measure M2 Fund 16,838.06
307 - Construction & Demolition Forfeited Deposits Fund 1,680.00 311 - Quimby Act Park In-Lieu Fee (VALH) Fund 64,231.28 600 - Capital Improvement Projects Fund -
Grand Total: 1,379,395.23
Account Summary
Account Number Account Name Payment Amount
Payables Detail Report Payment Dates: 09/27/2024 - 10/10/2024 Report Summary
Fund Summary

10/11/2024 12:12:10 PM Page 7 of 7
311-000-790600 Transfers Out to Capital 64,231.28
600-000-490311 Transfers In from Quimby Act (64,231.28) 600-252-950241 General Park Renovations 64,231.28
Grand Total: 1,379,395.23
Project Account Summary
Project Account Key Payment Amount
**None** 1,379,395.23
Grand Total: 1,379,395.23
100-420-720823 Parking Citation Processing 4,835.11
100-420-720835 Fingerprint Identification Services 913.00 100-420-720850 Private Security Patrol 7,224.00
212-355-720400 Street Maintenance 494.70
212-355-720410 Street Sweeping 16,343.36
307-000-436000 Forfeited C&D Deposits 1,680.00
100-356-631400 MOE - Electric (Streetlights & 11,844.46 100-356-700101 MOE - Traffic Engineer Services 5,645.00 100-356-720420 MOE - Traffic Signal Maintenance 3,644.70 100-420-646000 Equipment/Machinery 388.47
100-420-720800 General Law Enforcement 949,876.09
100-420-720822 Crossing Guard Services 17,098.48
Payables Detail Report Payment Dates: 09/27/2024 - 10/10/2024 Account Summary
Account Number Account Name Payment Amount
100-355-720701 Parks Contract Repair 9,466.83
100-355-720702 Tree Maintenance 34,260.45
100-356-630000 MOE - Telephone & 31.60

Item No. 4.4
City of Laguna Hills
City Council / Planning Agency
Staff Report
Date: October 22, 2024
To: Mayor and Council Members
From: Eric Hendrickson, Finance Director
Issue: Treasurer's Investment Report for September 2024 Recommendation: That the City Council receive and file the Treasurer's Investment Report for the month of September 2024.

Background:

The Treasurer’s Investment Report for the month of September 2024 is submitted herewith. The City’s total portfolio as of September 30, 2024, was $30,602,185. The pooled cash portfolio managed by the City Treasurer consisted of cash on hand, demand deposits, State Local Agency Investment Fund (LAIF) and Investment Trust of California (CalTRUST) investments and totaled $29,264,545. Restricted cash and investments totaled $1,337,640, and is mainly composed of reserve funds for the 2010 bond issuance.

Interest income for the month of September was $123,552. FY2024/2025 year-to-date pooled cash interest earnings of $409,077 are 43% of the annual budget of $942,050.

The average yield on the City’s total portfolio for the month of September was 4.96%, compared to the prior month of 5.26%. The reduced yield in September corresponds with the actions taken by the Federal Reserve to lower interest rates in efforts to combat inflation. The City has budgeted conservatively in its expectation of interest earnings, and has built rate reductions into the revenue forecast.

Fiscal Impact:

There is no fiscal impact to receive and file this report.

Item No. 4.4
Attachments:

1. Treasurer's Report September 2024

Pooled Cash & Investments
Current Month
Market Value
Current Month
Book Value
Prior Month
Book Value
Current
Month %
of
Portfolio
Maximum
Policy Limit
Yield to
Maturity for
Month
(Annualized)
BMO Checking & Money Market Accounts 8,666,395 $        $       8,666,395 $       9,827,682 30% 50% 4.95% Petty Cash (City Hall) 500                                          500                     500 0% n/a 0.00% Petty Cash (Community Services) 750                                          750                     250 0% n/a 0.00% Fiscal Agent Cash ‐ Employee FSA 12,699                                12,699                15,764 0% n/a 0.00% State Local Agency Investment Fund (LAIF) 94,241                                94,590                94,590 0% 100% 4.58% Investment Trust of California (CalTRUST) 20,489,611                20,489,611        20,401,661 70% 100% 5.04% 29,264,197        29,264,545        30,340,447 100% 5.01% Restricted & Designated Cash & Investments
BNY Mellon (2010 Bond ‐ Lease Payment Fund) 758,807                            758,807              723,098 n/a n/a 4.57% BNY Mellon (2010 Bond ‐ Reserve Fund) 396,210                            396,210              427,126 n/a n/a 4.57% Fiscal Agent Cash ‐ Essex Civic Center Mgmt 182,623                            182,623              196,277 n/a n/a 0.00% 1,337,640          1,337,640          1,346,501 3.95%
Totals $     30,601,836 $     30,602,185 $     31,686,948 4.96% For the month of September 2024 $         123,552
FY 2024‐25 to Date            409,077
FY 2024‐25 Budget            942,050
Certification:

Eric Hendrickson
Finance Director/Deputy City Treasurer
City of Laguna Hills
Treasurer's Investment Report
September 2024
Pooled Cash & Investment ‐ Interest Earnings
I hereby certify that the above investment report includes all cash and investments of the City and is in conformance with all State laws and the City's investment policy approved by the City Council on November 14, 2023. At the time of the report, there is sufficient liquidity and anticipated revenues available to meet the City's budgeted expenditure requirements for the next six months.

Reconciling items (outstanding checks and deposits in transit):

Pooled Cash & Investments Book Value:

Fund Balance Type
Nonspendable
Assigned
Unassigned
Total
299,941
691,633
23,776,890
24,768,464
GENERAL FUND RESERVES (as of most recent year end 6/30/2024 ‐ currently being audited) 16,294.77
29,264,545.00
TOTAL CLAIM ON CASH      29,797,271.78           (549,021.55)      29,248,250.23 455‐000‐101455 Claim on Cash ‐ Community Center Equipment Ma           102,204.75               (3,200.00)              99,004.75 456‐000‐101456 Claim on Cash ‐ Storm Drain / Slope Repair Reserv               ‐ 31,770.82                                        31,770.82 452‐000‐101452 Claim on Cash ‐ Parks Equipment Maintenance            ‐ 309,213.00                                      309,213.00 454‐000‐101454 Claim on Cash ‐ Sports Complex Equipment Maint               ‐ 87,144.46                                        87,144.46 421‐000‐101421 Claim on Cash ‐ SLESF 40,570.96               ‐                                        40,570.96 451‐000‐101451 Claim on Cash ‐ Liability Self‐Insurance            ‐ 161,300.18                                      161,300.18 401‐000‐101401 Claim on Cash ‐ Public Art 192,539.34            ‐                                      192,539.34 411‐000‐101401 Claim on Cash ‐ Public Art (VALH) 362,162.39            ‐                                      362,162.39 312‐000‐101312 Claim on Cash ‐ CASp Fee 33,915.32               ‐                                        33,915.32 322‐000‐101322 Claim on Cash ‐ Water Conservation 370,996.45            ‐                                      370,996.45 309‐000‐101305 Claim on Cash ‐ SB1383 Grant 87,889.77               ‐                                        87,889.77 311‐000‐101310 Claim on Cash ‐ Quimby Act Park In‐Lieu Fee (VALH         ‐ 2,040,590.09                                  2,040,590.09 306‐000‐101306 Claim on Cash ‐ CR&R Recycling Fee 251,013.73                        (13,298.35)            237,715.38 307‐000‐101307 Claim on Cash ‐ C&D Forfeited Deposits           318,557.15             (21,570.00)            296,987.15 301‐000‐101301 Claim on Cash ‐ CARITS Road Fee Program 1,377,009.60         ‐                                  1,377,009.60 305‐000‐101305 Claim on Cash ‐ Beverage Recycling 5,804.85                 ‐                                          5,804.85 214‐000‐101214 Claim on Cash ‐ AB 2766 176,925.49                          (4,657.96)            172,267.53 221‐000‐101221 Claim on Cash ‐ Senior Mobility Program 259,223.41                           6,433.79            265,657.20 211‐000‐101211 Claim on Cash ‐ Gas Tax (RMRA) 1,485,026.40                      70,844.25        1,555,870.65 212‐000‐101212 Claim on Cash ‐ Measure M2 (9,582.73)                             88,892.84              79,310.11

CLAIM ON CASH
100‐000‐101100 Claim on Cash ‐ General Fund 20,659,127.37                 (754,320.65)      19,904,806.72 210‐000‐101210 Claim on Cash ‐ Gas Tax (HUTA) 1,453,868.98                      81,854.53        1,535,723.51 Pooled Cash Report
City of Laguna Hills, CA
For the Period Ending 9/30/2024

BEGINNING

BALANCE

CURRENT

ACTIVITY

CURRENT
BALANCE ACCOUNT # ACCOUNT NAME

Current Period Year-to-Date
Go Paperless.Securely access your accounts online to view your statements. Ask your BNY Mellon contact how we can help you accessyour account balances and activity in real time, receive your reports, enter your own transactions or submit an auditconfirmation online. Also be sure to ask how NEXEN(SM) Gateway, our new cloud-based ecosystem, can help you.Visit us at www.bnymellon.com CLIENT SERVICE MANAGER: LENA CHAN
Percent of all
Investments Asset Classification Market Value
100% TOTAL OF ALL INVESTMENTS 758,807.24
Estimated Market
Asset Classification Market Value Cost Accrued Income Annual Income YieldACCOUNT TOTALS 758,807.24 758,807.24 0.00 34,655.48 4.57 % Realized
Transaction Category Income Principal Gains/Losses Income PrincipalOPENING BALANCE 0.00 0.00 0.00 0.00 Account Statement
Account Overview
Summary of Assets Held by Asset ClassificationSummary of Cash Transactions by Transaction Category Statement Period 09/01/2024 Through 09/30/2024Account Base Currency = USD LAGUNA HILLS 2010 LEASE PYMT FDBNYM COPORATE TRUST, N.A333 S. HOPE ST. STE 2525LOS ANGELES, CA [email protected] 100% CASH AND SHORT TERM 758,807.24
CASH AND SHORT TERM 758,807.24 758,807.24 0.00 34,655.48 4.57 %DIVIDENDS 3,013.16 0.00 0.00 29,767.50 0.00SALES AND REDEMPTIONS 0.00 0.00 0.00 0.00 378,259.38 OTHER CASH ADDITIONS 0.00 35,709.37 0.00 0.00 62,463.71 OTHER CASH DISBURSEMENTS 3,013.16 - 0.00 0.00 29,767.50 - 378,259.38 -

e 096280 n 082444 a 02 t DOM i WI s 335,044

Current Period Year-to-Date
Go Paperless.Securely access your accounts online to view your statements. Ask your BNY Mellon contact how we can help you accessyour account balances and activity in real time, receive your reports, enter your own transactions or submit an auditconfirmation online. Also be sure to ask how NEXEN(SM) Gateway, our new cloud-based ecosystem, can help you.Visit us at www.bnymellon.com CLIENT SERVICE MANAGER: LENA CHAN
Percent of all
Investments Asset Classification Market Value
100% TOTAL OF ALL INVESTMENTS 396,210.07
Estimated Market
Asset Classification Market Value Cost Accrued Income Annual Income YieldACCOUNT TOTALS 396,210.07 396,210.07 0.00 18,095.31 4.57 % Realized
Transaction Category Income Principal Gains/Losses Income Principal OPENING BALANCE 0.00 0.00 0.00 0.00
Account Statement
Account Overview
Summary of Assets Held by Asset ClassificationSummary of Cash Transactions by Transaction Category Statement Period 09/01/2024 Through 09/30/2024Account 0 Base Currency = USD LAGUNA HILLS 2010 RESERVE FDBNYM COPORATE TRUST, N.A333 S. HOPE ST. STE 2525LOS ANGELES, CA [email protected] 100% CASH AND SHORT TERM 396,210.07
CASH AND SHORT TERM 396,210.07 396,210.07 0.00 18,095.31 4.57 % DIVIDENDS 1,779.88 0.00 0.00 15,600.68 0.00SALES AND REDEMPTIONS 0.00 32,696.21 0.00 0.00 32,696.21 OTHER CASH ADDITIONS 0.00 1,779.88 0.00 0.00 15,600.68
OTHER CASH DISBURSEMENTS 1,779.88 - 32,696.21 - 0.00 15,600.68 - 32,696.21 -

e 096281 n 082445 a 02 t DOM i WI s 335,048

September 4.575
August 4.579
July 4.516
June 4.480
May 4.332
April 4.272
PMIA Average Life(1): 217
LAIF Fair Value Factor(1): 0.996316042
PMIA Daily(1): 4.52
PMIA Quarter to Date(1): 4.36
LAIF Apportionment Rate(2): 4.55
LAIF Earnings Ratio(2): 0.00012419067099490
LAIF Administrative Cost(1)*: 0.16
Treasuries

58.85% Agencies

23.21%
Certificates of
Deposit/Bank Notes

8.17%
Time
Deposits

3.22%
Commercial
Paper

5.79%
Corporate
Bonds

0.51%
Loans

0.26%
Notes: The apportionment rate includes interest earned on the CalPERS Supplemental Pension Payment pursuant to Government Code 20825 (c)(1) and interest earned on the Wildfire Fund loan pursuant to Public Utility Code 3288 (a). *The percentage of administrative cost equals the total administrative cost divided by the quarterly interest earnings. The law provides that administrative costs are not to exceed 5% of quarterly EARNINGS of the fund. However, if the 13-week Daily Treasury Bill Rate on the last day of the fiscal year is below 1%, then administrative costs shall not exceed 8% of quarterly EARNINGS of the fund for the subsequent fiscal year.

Source:
(1) State of California, Office of the Treasurer
(2) State of Calfiornia, Office of the Controller
PMIA Average Monthly
Effective Yields(1)
PMIA/LAIF Performance Report
as of 10/02/24
Daily rates are now available here. View PMIA Daily Rates Quarterly Performance
Quarter Ended 06/30/24
Chart does not include $1,368,000.00 in mortgages, which equates to 0.001%. Percentages may not total 100% due to rounding.

Pooled Money Investment Account
Monthly Portfolio Composition (1)
8/31/24
$163.4 billion

Corporate Class
Invesco Treasury Portfolio
Short-Term Investments Trust
Data as of September 30, 2024
NOT A DEPOSIT | NOT FDIC-INSURED | NOT GUARANTEED BY THE BANK | MAY LOSE VALUE | NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY invesco.com CM-FFTSY-2-E 10/24 Invesco Distributors, Inc.

This report must be accompanied or preceded by a currently effective fund prospectus, which contains more complete information, including fees and expenses. Read it carefully before investing.

The fund pursues its objective by investing primarily in short-term, high-credit-quality money market instruments. These instruments are direct obligations of the US Treasury and repurchase agreements backed by Treasury obligations.

Investment Objective
Provide current income consistent with preservation of capital and liquidity.

Permissible Investments
Fund Highlights
n The portfolio management team follows a conservative investment process with respect to minimal credit risk, interest rate risk and liquidity.
n The fund is designed for short- to medium-term cash investments, operating cash, cash sweeps and the liquidity components of investment portfolios.
n The fund aims to preserve capital, maintain liquidity and produce a competitive yield.

Yields (%)
The performance data quoted represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the performance data quoted above. The investment return and principal value of your investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. You may obtain performance data current to the most recent month-end by visiting invesco.com. The SEC yield listed reflects fee waivers and/or expense reimbursements in effect for the period. Had the Adviser not waived fees and/or reimbursed expenses, your 7-day SEC yield would have been 4.71%. Average annual total returns reflect reinvested distributions, net of expenses for the periods. The 7-day SEC yield more closely reflects the current earnings of the fund than the total returns shown. 30-day simple and simple monthly yield are the sum of
the distribution rates for the number of days in the yield period annualized by 365 and divided by net asset value (NAV).

This does not constitute a recommendation of any
investment strategy or product for a particular investor. Investors should consult a financial professional before making any investment decisions.

Maturity Schedule (%)

4.75 4.71 4.95 4.91
7-Day SEC 30-Day Simple
as of September 30, 2024 Average Annual Total Returns (%) Period (%)
as of September 30, 2024
Inception 1.48
10 Years 1.54
5 Years 2.23
3 Years 3.49
1 Year 5.31
Invesco Treasury Portfolio
iMoneyNet U.S. Treasury & Repo Institutional Category1
Portfolio Composition (%) 3
SEC Investment Category (%)
U.S. Treasury Repurchase Agreement 59.0
U.S. Treasury Debt 41.0
Simple Monthly Yields
Period (%)
as of September 30, 2024
September 2024 4.95
August 5.13
July 5.17
June 5.18
May 5.19
April 5.18
March 5.18
February 5.18
January 5.20
December 5.23
November 5.25
October 2023 5.23
g 1-7
g 8-30
g 31-60
g 61-90
g 91-180
g 181+
Maturity schedule is based on weighted average maturity and is subject to change.
g 46.9
g 2.0
g 12.8
g 1.3
g 14.2
g 22.7
Days to
maturity (%)
National Association of Insurance Commissioners (NAIC)
Meets NAIC requirement of a 0% capital reserve for a
purchase by insurance companies.

Management Team
Laurie Brignac, Joe Madrid, Brandon Maitre, Justin Mandeville, Marques Mercier, Wesley Rager, Jennifer Brown, Ripal Tilara, and Bryn Zinser
All data provided by Invesco unless otherwise stated. 1 iMoneyNet, Inc. is an independent mutual fund performance monitor. The U.S. Treasury & Repo Institutional Category is an unmanaged group of money market funds with similar invest- ment objectives and pricing structures as the Corporate Class of the Invesco Treasury Portfolio. iMoneyNet performance figures represent the category average. An investment cannot be made into the category. 2 A credit rating is an assessment provided by Nationally Recognized Statistical Ratings Organization (NRSRO) of the cred- itworthiness of an issuer with respect to debt obligations, includ- ing specific securities, money market instruments or other debts. Fund ratings are subject to change and are based on sev- eral factors, including an analysis of a portfolio's overall credit quality, market price exposure and management. Fund ratings are provided to indicate the creditworthiness of the underlying holdings in the portfolio and offer a forward-looking opinion about fixed income funds' capacity to maintain stable principal (net asset value). The ratings will generally range from AAA (highest) to D (lowest). For more information on rating method- ologies, please visit the following NRSRO websites: www.standar- dandpoors.com and select "Understanding Ratings" under Rating Resources on the homepage; www.moodys.com and select "Rating Methodologies" under Research and Ratings on the homepage; www.fitchratings.com and select "Ratings Definitions" on the homepage.@FSIA_CashDisclosureLeft: 3 Portfolio composition is subject to change. An investment cate- gory listed with "other" in the name indicates that the underly- ing holdings did not fall into the SEC's more narrowly defined investment categories.

You could lose money by investing in the Fund.

Although the Fund seeks to preserve your
investment at $1.00 per share, it cannot
guarantee it will do so. An investment in the
Fund is not a bank account and is not insured or
guaranteed by the Federal Deposit Insurance
Corporation or any other government agency.

The Fund may impose a fee upon the sale of your
shares. The Fund’s sponsor is not required to
reimburse the Fund for losses, and you should
not expect that the sponsor will provide financial
support to the Fund at any time, including during
periods of market stress.

Fund Information
Inception August 01, 2005
CUSIP 825252570

NASDAQ TYCXX
Total Net Assets $29.34 billion
Reflects all classes of the portfolio.

Weighted Average Maturity (WAM) 29 days
Weighted Average Life (WAL) 112 days
SEC Portfolio Liquidity Requirements (%)
1-day 55.00
7-day 94.87
Ratings²
Standard & Poor's AAAm
Moody's Aaa-mf
Fitch Ratings AAAmmf

Item No. 4.5
City of Laguna Hills
City Council / Planning Agency
Staff Report
Date: October 22, 2024
To: Mayor and Council Members
From: Greg Simonian, City Attorney
Issue: Appointment of Labor Negotiator
Recommendation: That the City Council pursuant to Government Code Section 54957.6, select and appoint Mayor Wheeler to serve as the Council's designated representative for purposes of: A) Facilitating the Annual Performance Evaluation of the City Manager; and B) Conducting Labor Negotiations with the City Manager, an unrepresented employee.

Background:

State law authorizes the City Council to hold closed sessions with the City's designated labor representative regarding the compensation of unrepresented employees, such as the City Manager; however, prior to the closed session the City Council is required to hold an open session in which the Council's labor representative is identified and designated. Historically, the City Council has assigned the responsibility for facilitating the annual performance evaluation of the City Manager and for conducting labor negotiations with the City Manager to a qualified labor consultant or to the Mayor or Mayor Pro Tempore.

Pursuant to Government Code Section 54957.6, it is recommended that the City Council select and appoint Mayor Wheeler to serve as the City Council's designated representative for purposes of (a) facilitating the 2024 annual performance evaluation of the City Manager and (b) conducting labor negotiations with the City Manager, an unrepresented employee.

Item No. 4.5
Discussion:

A closed session meeting of the City Council will be scheduled for November 12, 2024, for the purpose of conducting the annual performance evaluation of the City Manager, pursuant to Section 4 of the City Manager Employment Agreement.

Government Code Section 54957.6 authorizes the City Council to convene in closed session with its designated representative regarding the salary and compensation of unrepresented employees. The City Council has the option of convening in closed session with its designated labor representative for the purpose of reviewing its position and instructing the Council's designated representative with respect to conducting labor negotiations with the City Manager, an unrepresented employee.

Closed sessions authorized by Government Code Section 54957.6 are for the limited purpose of allowing the City Council to review its position and to give instruction to the Council's designated labor negotiator. To do so, however, the City Council must place the appointment of a labor negotiator on the open and public session of the agenda and select a labor negotiator prior to convening in closed session to review its position and prior to giving instruction to its designated representative. The City Council is required by law to take “final action” on proposed changes to salary or compensation of the City Manager, if any, in open session.

Alternatives:

The City Council has the option of designating and appointing a representative for purposes of conducting labor negotiations with the City Manager, an unrepresented employee, as part of the annual review process; however, the City Council is not legally required to do so.

Fiscal Impact:

There is no fiscal impact if the City Council appoints one member of the Council to facilitate the annual performance review and to serve as the Council's designated labor representative.

Attachments:

None

Item No. 4.6
City of Laguna Hills
City Council / Planning Agency
Staff Report
Date: October 22, 2024
To: Mayor and Council Members
From: Eric Hendrickson, Finance Director
Issue: Annual Review of Investment and Portfolio Policy and Delegation of Investment Authority to the City Treasurer
Recommendation: That the City Council adopt a Resolution entitled: "A Resolution of the City Council of the City of Laguna Hills, California, delegating investment authority to the City Treasurer and approving a policy for the investment of City funds and rescinding Resolution No. 2023-11-14-1."
Background:

State law specifies that the treasurer or chief fiscal officer of the local agency may annually render to the legislative body of that local agency and any oversight committee of that local agency a statement of investment policy, which the legislative body of the local agency shall consider at a public meeting. The City’s current Investment and Portfolio Policies require that the policies be annually reviewed and adopted by resolution of the City Council. State law also allows the City Council to delegate its investment authority to the City Treasurer for up to one year at a time.

Staff has reviewed the 2024 Investment and Portfolio Policy and is not recommending any changes. The proposed 2025 Investment and Portfolio Policy contains the same allowable investments, portfolio diversification, and reporting requirements as the previous year.

The proposed 2025 policy continues to comply with State law and is consistent with the recommended best practices promulgated by the Government Finance Officers Association.

Item No. 4.6
A Resolution to adopt the 2025 Investment and Portfolio Policy and delegate investment authority to the City Treasurer for the year 2025 is attached. Staff is recommending approval.

Fiscal Impact:

There is no fiscal impact on approving the policy and delegating authority. Interest earnings have been budgeted to be $942,050 in fiscal year 2024/2025.

Attachments:

1. Proposed Resolution Approving Investment Policy 2025

2. Exhibit A - Proposed 2025 Investment & Portfolio Policy

RESOLUTION NO. 2024-10-22-X

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

LAGUNA HILLS, CALIFORNIA, DELEGATING INVESTMENT

AUTHORITY TO THE CITY TREASURER AND APPROVING

A POLICY FOR THE INVESTMENT OF CITY FUNDS AND
RESCINDING RESOLUTION NO. 2023-11-14-1.

WHEREAS, pursuant to Laguna Hills Municipal Code Section 2-16.020, the City Council has appointed the City Manager as the City Treasurer; and WHEREAS, pursuant to Government Code Section 53607, the City Council may delegate its investment authority to the City Treasurer for up to one year; and WHEREAS; pursuant to Government Code Section 53646, the City Council of the City of Laguna Hills, has publicly considered an annual statement of investment policy and desires to adopt such policy to guide the investment management of the Deputy Treasurer under the supervision of the City Treasurer.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAGUNA

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

SECTION 1. This Resolution rescinds Resolution 2023-11-14-1.

SECTION 2. The City Council hereby delegates investment authority to the City Treasurer.

SECTION 3. The City Council hereby adopts the investment policy, attached hereto as Exhibit “A” and incorporated herein by this reference.

SECTION 4. The effective date of this Resolution is January 1, 2025.

PASSED, APPROVED, AND ADOPTED this 22nd day of October 2024. ____________________________________

DAVE WHEELER, MAYOR
ATTEST:
______________________________________

JENNIFER LEE, CITY CLERK

Resolution No. 2024-10-22-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. 2024-10-22-X adopted by the City Council of the City of Laguna Hills, California, at a Regular Meeting thereof held on the 22nd day of October 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
(SEAL)
_____________________________________

JENNIFER LEE, CITY CLERK

2025 INVESTMENT & PORTFOLIO POLICY

CITY OF LAGUNA HILLS

Investment and Portfolio Policies
Calendar Year 2025

TABLE OF CONTENTS
I. Policy ...................................................................................................... 1 II. Scope ..................................................................................................... 1 III. Objectives ............................................................................................... 1 IV. Standards of Care ................................................................................... 3 V. Safekeeping and Custody ...................................................................... 4 VI. Authorized and Suitable Investments ..................................................... 5 VII. Competitive Selection of Investment Instrument .................................... 7 VIII. Reporting ................................................................................................. 7 IX. Annual Investment Policy and Adoption................................................. 8 Appendix A - Glossary of Terms .................................................................. 9

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INVESTMENT AND PORTFOLIO POLICIES
2025

I Policy
It is the Policy of the City of Laguna Hills to invest in a manner, which will ensure the safety of public funds by mitigating credit and interest rate risk, and provide sufficient liquidity to meet all operating requirements. The City shall also strive to attain a return on investment that is reasonable given that safety of principal and liquidity are the primary objectives in these policies and yield is secondary. The investment program shall be operated in conformity with federal, state and other legal requirements, including the State of California Government Code Section 53601, et, seq., these policies and written administrative procedures.

II Scope
This investment policy applies to the investment of all funds of the City and the City of Laguna Hills Public Improvement Corporation, including the following:

General Fund
Special Revenue Funds
Capital Projects Funds
Funds Held Under Trust Indenture
These funds are accounted for in the City’s Annual Comprehensive Financial Report.

Except for cash in certain restricted and special funds, the City will consolidate cash and reserve balances from all funds to maximize investment earnings and to increase efficiencies with regard to investment pricing, safekeeping and administration. Investment income will be allocated to the various funds based on their respective participation and in accordance with generally accepted accounting principles.

Investments under the trust indenture will be held separately and made in accordance with the indenture requirements.

III Objectives
Funds of the City will be invested, by the City Treasurer, or authorized deputies of the Treasurer (hereinafter collectively referred to as “the Treasurer”) in accordance with these policies and written administrative procedures. The primary objectives, in priority order, of investment activities shall be:
1) Safety
Safety of principal is the foremost objective of the City’s investment program. Investments shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio and the mitigation of credit risk and interest rate risk.
a) Credit Risk
Credit Risk is the risk of loss due to the failure of the security issuer or backer.

Credit Risk may be mitigated by:

CITY OF LAGUNA HILLS

INVESTMENT AND PORTFOLIO POLICIES
2025

i. limiting investments to the safest types of securities listed under Section VI herein, which shall be limited to those investments backed by the U.S. Government, or an agency thereof, overnight accounts managed by the City’s primary bank, the Local Agency Investment Fund (LAIF), and other specific investments described in Section VI; ii. diversifying the portfolio to avoid concentration of securities from a specific issuer, except issuers of U.S. Treasury securities, so that the failure of any one issuer will not place an undue financial burden on the City;
iii. monitoring all of the City’s investments on a frequent basis to anticipate and respond accordingly to a significant reduction of creditworthiness of any of the depositories, including the City’s primary bank; and iv. performing appropriate due diligence to assure the credit worthiness of any portfolio investment made.
b) Interest Rate Risk
Interest rate risk is the risk that the market value of securities in the portfolio will fall due to changes in general interest rates. To reduce interest rate risk, the City shall limit the maximum maturity horizon of the securities that comprise its portfolio, keeping in mind that the longer the maturity horizon, the greater the price volatility. In accordance with the Government Accounting Standards Board reporting requirements, the portfolio could show unrealized gains or losses for any reporting period.

Interest rate risk may be mitigated by:
i. structuring the investment portfolio so that securities mature to meet cash requirements for ongoing operations, thereby avoiding the need to sell securities on the open market prior to maturity; and
ii. investing operating funds primarily in shorter-term securities. 2) Liquidity
The investment portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. This is accomplished by structuring the portfolio so that securities mature concurrent with cash needs to meet anticipated demands (static liquidity). Since all possible cash demands cannot be anticipated, the portfolio should consist largely of securities with active secondary or resale markets (dynamic liquidity) and a portion of the portfolio should be invested in readily available funds, to ensure that appropriate liquidity is maintained to meet ongoing obligations.
3) Yield
The rate of return on the City’s investment portfolio is of secondary importance to the safety and liquidity objectives described above. The City’s investment strategy is passive and investments are limited to relatively low-risk securities in anticipation of earning a rate of return throughout

CITY OF LAGUNA HILLS

INVESTMENT AND PORTFOLIO POLICIES
2025

budgetary and economic cycles, commensurate with the City’s investment risk constraints and the cash flow characteristics of the portfolio.

The yield shall be designed to attain an average rate of return through market cycles. Although no “benchmark” rate of return is assumed, the portfolio’s yield shall be compared for reporting purposes to LAIF and the 3-month bank CD rate published by the Federal Reserve. These indices are considered benchmarks for lower risk investment transactions and therefore represent a comparable minimum standard for the portfolio’s rate of return.

IV Standards of Care
1) Prudence
The City’s investment portfolio is subject to public scrutiny and review and should be managed with due care and consideration. The portfolio should be created and maintained with the professionalism and care worthy of the public trust.

The standard of prudence to be applied to the Treasurer shall be the “prudent investor rule”, which states, “when investing, reinvesting, purchasing, acquiring, exchanging, selling, and managing public funds, a trustee (the governing body or Treasurer) shall act with care, skill, prudence, and diligence under the circumstances then prevailing, that a prudent person, acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency.” The Treasurer, acting in accordance with written procedures and exercising due diligence, shall not be held personally responsible for a specific security’s credit risk or market price changes, provided that these deviations are reported immediately and that appropriate action is taken to control adverse developments.
2) Ethics and Conflict of Interest
Employees of the City shall refrain from personal business activity that could conflict with the proper execution of the investment program, or which could impair their ability to make impartial investment decisions. State law, City statutes, and City personnel and purchasing practices shall be followed to avoid conflict of interest or the appearance thereof. Employees shall disclose any financial interests or personal relationships with any financial institutions, brokers or securities dealers that conduct business within its jurisdiction, and any personal financial/investment positions that could be related to their management of the portfolio. The Treasurer shall be prohibited from doing business with any broker or securities dealer with whom the City does business, with the exception of the City’s primary bank for banking services. Employees shall subordinate their personal investment transactions to those of the City, particularly with regard to the time of purchases and sales.

CITY OF LAGUNA HILLS

INVESTMENT AND PORTFOLIO POLICIES
2025

3) Delegation of Authority
Authority to manage the City’s investment program is delegated to the City Treasurer by Resolution of the City Council of the City of Laguna Hills, California. Management responsibility is hereby delegated to the Finance Director/Deputy Treasurer under the direction of the City Treasurer.

The Deputy Treasurer shall establish written procedures for the operation of the investment program consistent with this investment policy, together with a system of internal controls to regulate the activities of subordinates.

V Safekeeping and Custody
1) Authorized Financial Institutions, Depositories and Brokers/Dealers Investment transactions will be undertaken with securities dealers, brokers and depositories authorized to provide investment services. In addition, the City shall maintain a “Qualified Institution” list of approved security broker/dealers selected by creditworthiness, including the minimum capital requirement of $10 million and at least five years of operation. The City shall conduct periodic evaluations, or whenever deemed necessary, of each financial institution’s standing to determine whether it should remain on the “Qualified Institution” listing. Securities dealers not affiliated with a bank shall be required to be classified as reporting dealers affiliated with the New York Federal Reserve Bank, as primary dealers that qualify under Securities and Exchange Commission Rule 15C3-1 (uniform net capital rule).

All financial institutions and brokers/dealers who desire to become qualified for investment transactions with the City must supply the following:
1) Audited financial statements demonstrating compliance with State and Federal capital adequacy guidelines. Audited financial statements will be submitted annually to the City. 2) Proof of National Association of Securities Dealers (NASD) certification, except for counterparties in Certificates of Deposits transactions. 3) Proof of State Registration
4) Completed broker/dealer questionnaire, except for Certificates of Deposits counterparties. 5) Certification of having read and understood and agreeing to comply with the City’s Investment Policies, as well as to disclose potential conflicts or risks to public funds that might arise out of business transactions between the firm/depository and the City. 6) Evidence of adequate insurance coverage.

In addition, all financial institutions shall agree to undertake reasonable efforts to preclude imprudent transactions involving the City’s funds. The supervising officer shall agree to exercise due diligence in monitoring the activities of other officers and subordinate staff members engaged in transactions with the City. Employees of any firm or financial institution offering securities or

CITY OF LAGUNA HILLS

INVESTMENT AND PORTFOLIO POLICIES
2025

investments to the City shall be trained in the precautions appropriate to public-sector investment and shall be required to familiarize themselves with the City’s Investment and Portfolio Policies. 2) Internal Control
Treasurer shall establish a system of written internal control policies and procedures, which shall be reviewed annually by the independent auditor. The controls shall be designed to prevent loss of public funds due to fraud, error, misrepresentation, unanticipated market changes or imprudent actions.
3) Delivery vs. Payment
All trades where applicable will be executed by delivery vs. payment (DVP). This ensures that securities are deposited in the eligible financial institution prior to the release of funds. A third party custodian or the trust department of the City’s primary bank will hold securities. Evidence of safekeeping shall be in the form of safekeeping receipts and monthly statements reporting the securities held by the institution.

VI Authorized and Suitable Investments
1) Investment Types
Investment of City funds are restricted to the following instruments that shall mature within one year from the time of purchase unless otherwise stated:
a) U.S. Treasury bills.
b) U.S. Treasury notes or bonds.
c) Insured or fully collateralized certificates of deposit issued by a qualified Public Depository Institution of the State of California.
d) Money market mutual funds whose portfolios consist entirely of U.S. government securities and are rated at the highest letter or numerical rating from at least two of the three largest nationally recognized rating services, or which retain an Investment advisor meeting requirements specified in Government Code Section 53601(k)(2). e) State Treasurer’s Local Agency Investment Fund.
f) Overnight Government Securities (U.S. Treasuries, Agencies, and Instrumentalities) Investment Account managed by the City’s primary bank.
g) Overnight Commercial Paper Investment Account managed by the City’s primary bank. h) Overnight repurchase agreements managed by the City’s primary bank where the market value of the securities underlying the repurchase agreement is 102 percent or greater than the value of funds borrowed.
i) Commercial Paper rated a minimum of “P-1” by Moody’s and “A-1” by Standard and Poor’s, or equivalent, as provided by a nationally recognized rating agency, maturing not more that 180 days after the date of purchase. The issuer is a corporation organized and operating in the United States with assets in excess of $500 million.

CITY OF LAGUNA HILLS

INVESTMENT AND PORTFOLIO POLICIES
2025

j) Prime Bankers’ Acceptances with a maximum term of 270 days and a rating of “P-a” by Moody’s and “A-1 +” by Standard and Poor’s or equivalent as provided by a nationally recognized rating agency issued within the U.S. by depository institutions. k) Investment Trust of California, a Joint Powers Authority, doing business as CalTRUST In all instances, the City will not purchase the aforementioned instruments by the use of leveraged or margin accounts or by taking short positions in any investment instrument; i.e., selling investments the City does not own.

Investments of funds held under a trust indenture may have maturities up to two years in duration. 2) Portfolio Diversification
The City will diversify use of investment instruments to avoid incurring unreasonable risks inherent in over investing in specific instruments, individual financial institutions or maturities.

DIVERSIFICATION BY INVESTMENTS
Maximum
Percent of
Portfolio
U.S. Treasury Obligations (bills, notes and bonds) 50%
Certificates of Deposit (CDs) Commercial Banks 50%
Certificates of Deposit (CDs) Savings and Loan 25%
State Treasurer’s Local Agency Investment Fund 100%
CalTRUST
Overnight investment accounts managed by
City’s primary bank
100%
50%
Commercial Paper 10%
Banker’s Acceptances 15%
Money Market Mutual Funds 15%

DIVERSIFICATION BY INSTITUTION/ISSUER
Maximum
Percent of
Portfolio
Certificates of Deposit (CDs) Commercial Banks 25%
Certificates of Deposit (CDs) Savings and Loan $250,000 maximum
If at any point the above-stated maximum percentage of
portfolio becomes out of compliance, the City Treasurer shall have 60 days to reallocate funds to become compliant.

CITY OF LAGUNA HILLS

INVESTMENT AND PORTFOLIO POLICIES
2025

3) Maximum Maturities
Investment maturities for operating funds shall be scheduled to coincide with projected cash flow needs, taking into account large routine expenditures as well as considering sizable blocks of anticipated revenue.
4) Collateralization
Collateralization will be required on repurchase agreements in order to anticipate market changes and provide a level of security for all funds.

For certificates of deposits greater than $250,000, collateral will be required at 110% of principal for government securities collateral, and 150% of principal for first mortgage collateral. Certificates of deposits for $250,000 or less, inclusive or earned interest at maturity may be invested in any FDIC insured commercial bank or savings and loan accounts.

Collateral will always be held by an independent third party, or the trust departments of the City’s primary bank. A clearly marked evidence of ownership, such as safekeeping receipt and monthly statement of securities held must be provided to the City.

VII Competitive Selection of Investment Instruments
When purchasing or selling securities, the Treasurer shall select the security which provides the highest rate of return within the parameters of these policies and according to the current objectives and needs of the City’s portfolio. The Treasurer, at his discretion, may purchase investments through the investment or trust department of the City’s primary bank without soliciting proposal forms to other banks or broker/dealers. The City Treasurer may also purchase investments using a competitive process by soliciting proposals from the financial dealers in the “Qualified Institutions” list.

If a specific maturity date is required, either for cash flow purposes or for conformance to maturity guidelines, bids will be requested for instruments, which meet the maturity requirement. If no specific maturity is required, a market trend (yield curve) analysis will be conducted to determine which maturities would be most advantageous. Selection by comparison to a current market price may be utilized when, in the judgment of the Treasurer, competitive bidding would inhibit the selection process.

VIII Reporting
The Treasurer shall submit monthly investment reports to the City Council that summarizes recent market conditions, economic developments and anticipated investment conditions. The report shall summarize the investment strategies employed in the most recent quarter and describe the portfolio in terms of investment securities, maturities, risk characteristics and other pertinent features. The report shall explain the quarter’s total investment return and compare the return on LAIF and the 3-month bank CD rate published by the Federal Reserve. The report shall disclose all transactions during the quarter.

CITY OF LAGUNA HILLS

INVESTMENT AND PORTFOLIO POLICIES
2025

As part of the City’s annual audit, the independent auditor shall evaluate investment performance and conduct an operations audit. The purpose of these examinations shall be to obtain suggestions for improved future performance, and to verify that the Treasurer has acted in accordance with this investment policy and written investment procedures.

IX Annual Investment Policy and Adoption
The City’s investment policy shall be annually reviewed and adopted by resolution of the City Council of the City of Laguna Hills, California. The policy and the related internal control procedures shall be reviewed annually by the City’s independent auditors, and any modifications to the policy must be approved by the City Council.

CITY OF LAGUNA HILLS

INVESTMENT AND PORTFOLIO POLICIES
2025

Appendix A – Glossary of Terms
ACCRUED INTEREST: Interest earned but not yet received.

ACTIVE DEPOSIT: Funds which are immediately required for disbursement.

AGENCIES: Federal agency securities and/or government-sponsored enterprises.

AMORTIZATION: An accounting practice of gradually decrease/increasing an asset’s book value by spreading its depreciation/accretion over a period of time.

ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR): The official annual report of the City. It is the set of financial statements for a state, municipality or other governmental entity that comply with the accounting requirements established by the Governmental Accounting Standards Board (GASB). It includes combined statements prepared in conformity with Generally Accepted Accounting Principles (GAAP). It also includes supporting schedules necessary to demonstrate compliance with finance-related legal and contractual provisions, extensive introductory material, and a detailed Statistical Section.

ASKED PRICE: The price at which securities are offered.

BANKERS’ ACCEPTANCE: a draft or bill exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer.

BASIS POINT: One one-hundredth of one percent (.01%)
BEAR MARKET: A period of generally pessimistic attitudes and declining market prices.

BENCHMARK: A comparative base for measuring the performance or risk tolerance of the investment portfolio. A benchmark should represent a close correlation to the level of risk and average duration of the portfolio’s investments.

BID PRICE: The price offered by a buyer of securities. (When you are selling securities, you ask for a bid). See Offer Price and Asked Price.

BOND: A financial obligation for which the issuer promises to pay the bondholder a specified stream of future cash flows, including periodic interest payments and a principal repayment.

BOND EQUIVALENT YEILD: The basis on which yields on notes and bonds are quoted.

BOOK VALUE (COST VALUE): The purchase price at which a debt security is shown on the holder’s balance sheet. Book value is the purchase price less amortization of premium or plus accretion of discount.

BROKER: An individual or firm that brings buyers and sellers together for commission.

BULL MARKET: A period of time of generally optimistic attitudes and increasing market prices.

CALLABLES: Securities that the issuer has the right to redeem prior to maturity.

CITY OF LAGUNA HILLS

INVESTMENT AND PORTFOLIO POLICIES
2025

CERTIFICATE OF DEPOSIT (CD): A time deposit with a specific maturity evidenced by a certificate. Large denomination CD’s are typically negotiable. CD’s may be eligible for FDIC insurance.

COLLATERAL: Securities, evidence of deposit, or other property which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies.

CONSTANT MATURITY TREASURY (CMT): An average yield of a specific Treasury maturity sector for a specific time frame. This is a market index for reference of past direction of interest rates for a given Treasury maturity range.

COST VALUE (BOOK VALUE): The purchase price at which a debt security is shown on the holder’s balance sheet.

COUPON: a) The annual rate of interest that a bond’s issuer promises to pay the bondholder on a bond’s face value; b) a certificate attached to a bond evidencing interest due on a payment date.

CREDIT ANALYSIS: A critical review and appraisal of the economic and financial conditions or of the ability to meet debt obligations.

CURRENT YIELD: The interest paid on an investment expressed as a percentage of the current price of the security.

CUSTODY: A banking service that provides safekeeping for the individual securities in a customer’s investment portfolio under a written agreement which also calls for the bank to collect and pay out income, to buy, sell, receive and deliver securities when ordered to do so by the principal.

DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account.

DEBENTURE: A bond secured only by the general credit of the issuer.

DELIVERY VERSUS PAYMENT: There are two methods of delivery of securities: delivery versus payment and delivery versus receipt. Delivery versus payment is delivery of securities with an exchange of money for the securities. Delivery versus receipt is delivery of securities with an exchange of a signed receipt for the securities.

DEMAND DEPOSIT ACCOUNT: Accounts whose balance is available to meet immediate cash needs. Cash withdrawals can be made at any time.

DERIVATIVES: (1) Financial instruments whose return profile is linked to, or derived from, the movement of one or more underlying index(s) or security(s), and may include a leveraging factor, or (2) financial contracts based upon notional amounts whose value is derived from an underlying index or security (interest rates, foreign exchange rates, equities or commodities). Moreover, financial products that are dependent for their value on an underlying financial instrument, a commodity, or an index representing values of groups of such instruments or assets.

DISCOUNT: The difference between the cost price of a security and its maturity when quoted at a lower than face value. A security selling below original offering price shortly after sale is also considered to be at a discount.

CITY OF LAGUNA HILLS

INVESTMENT AND PORTFOLIO POLICIES
2025

DISCOUNT SECURITIES: Non-interest bearing money market instruments that are issued a discount and redeemed at maturity for full face value, e.g., U.S. Treasury Bills.

DIVERSIFICATION: Dividing investment funds among a variety of securities offering independent returns.

DURATION: The weighted average maturity of a bond’s cash flow stream, where the present value of the cash flows serve as the weights; The future point in time at which on average, an investor has received exactly half of the original investment, in present value terms; A bond’s zero-coupon equivalent; The fulcrum of a bond’s present value cash flow time line.

FANNIE MAE: Trade name for the Federal National Mortgage Association (FNMA). See FNMA.

FED WIRE: A wire transmission service established by the Federal Reserve Bank to facilitate the transfer of funds through debits and credits of funds between participants within the Fed system.

FEDERAL CREDIT AGENCIES: Agencies of the Federal Government set up to supply credit to various classes of institutions and individuals, e.g., Savings and Loans, small business firms, students, farm cooperatives, and exporters.

FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A federal agency that insures bank deposits, currently up to $250,000 per entity; Insurance provided to customers of a subscribing bank, which guarantees deposits to a set limit.

FEDERAL FUNDS RATE: The rate of interest at which Federal funds are traded. This rate is currently pegged by the Federal Reserve through open-market operations.

FEDERAL HOME LOAN BANKS (FHLB): Government sponsored wholesale banks, which lend funds and provide correspondent banking services to member commercial banks, thrift institutions, credit unions and insurance companies. The mission of the FHLBs is to liquefy the housing related assets of its members who must purchase stock in their district bank.

FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC): The FHLMC was created under the Federal Home Loan Mortgage Act, Title III of Emergency Home Finance Act of 1970, as a stockholder owned government-sponsored enterprise. Freddie Mac, as the corporation is called, is charged with providing stability and assistance to the secondary home mortgage market by buying first mortgages and participation interests and reselling these securities in the form of guaranteed mortgage securities. Although agency obligations are not explicitly guaranteed by the federal government, the rating agencies believe that in the unlikely event of financial difficulties, the federal government will support the agency to the extent necessary to provide for full and timely payment on their securities.

FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA): FNMA, like GNMA, was chartered under the Federal National Mortgage Association Act in 1938. FNMA is a federal corporation working under the auspices of the Department of Housing and Urban Development (HUD). Fannie Mae, as the corporation is called, is a private stockholder-owned corporation. The corporation’s purchases included a variety of adjustable mortgages and second loans, in addition to fixed-rate mortgages. FNMA’s securities are also highly liquid and are widely accepted. FNMA assumes and guarantees that all security holders will receive timely payment of principal and interest.

CITY OF LAGUNA HILLS

INVESTMENT AND PORTFOLIO POLICIES
2025

FEDERAL OPEN MARKET COMMITTEE (FOMC): Consists of seven members of the Federal Reserve Board and five of the twelve Federal Reserve Bank Presidents. The President of the New York Federal Reserve Bank is a permanent member, while the other Presidents serve on a rotating basis. The Committee periodically meets to set Federal Reserve guidelines regarding purchases and sales of Government Securities in the open market as a means of influencing the volume of bank credit and money.

FEDERAL RESERVE SYSTEM: The central bank of the United States created by Congress and consisting of a seven member Board of Governors in Washington, D.C., 12 regional banks and about 5,700 commercial banks that are members of the system.

FINANCIAL ADVISOR: A firm of bank that acts in a financial advisory capacity with respect to a new issue of municipal securities pursuant to a written contract.

FISCAL AGENT/SPONSOR: a) A fiscal agent, fiscal sponsor, or financial agent is a proxy that manages fiscal matters on behalf of another party. b) A financial institution with trust powers which acts in a fiduciary capacity for the benefit of the bondholders in enforcing the terms of the bond contract. A fiscal agent may assist in the redemption of bonds or coupons at maturity, disbursing dividends, and handling tax issues. For example, the United States Federal Reserve is the fiscal agent of the federal government of the United States.

FREDDIE MAC: The trade name for the Federal Home Loan Mortgage Corporation. See FHLMC.

GINNIE MAE: The trade name for the Government National Mortgage Association. See GNMA.

GOVERNMENT ACCOUNTING STANDARDS BOARD: The independent organization that establishes and improves standards of accounting and financial reporting for U.S. state and local governments.

GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA): Securities influencing the volume of bank credit guaranteed by GNMA and issued by mortgage bankers, commercial banks, savings and loan associations, and other institutions. Security holder is protected by the full faith and credit of the U.S.

Government. Ginnie Mae, as these securities are called, are backed by the FHA, VA, or FmHA mortgages.

The term “pass-throughs” is often used to describe Ginnie Maes.

INACTIVE DEPOSITS: Funds not immediately needed for disbursements.

INTEREST RATE: The annual yield earned on an investment, expressed as a percentage.

INVESTMENT AGREEMENTS: An agreement with a financial institution to borrow public funds subject to certain negotiated terms and conditions concerning collateral, liquidity and interest rates.

LIQUIDITY: Refers to the ability of an asset to be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and reasonable size can be done on these quotes.

LOCAL AGENCY INVESTMENT FUND (LAIF): The Local Agency Investment Fund (LAIF), is a voluntary program created by statute; began in 1977 as an investment alternative for California's local governments and special districts and it continues today under the California State Treasurer's administration. The enabling legislation for the LAIF is Section 16429.1 et seq. of the California Government Code. This program offers local agencies the opportunity to participate in a major portfolio, which invests hundreds of millions of dollars, using the investment expertise of the State Treasurer's Office investment staff at no additional cost to the taxpayer.

CITY OF LAGUNA HILLS

INVESTMENT AND PORTFOLIO POLICIES
2025

This in-house management team is comprised of civil servants. The Local Investment Advisory Board (LIAB) provides oversight for LAIF. The LAIF is part of the Pooled Money Investment Account (PMIA).

LOCAL GOVERNMENT INVESTMENT POOL (LGIP): The aggregate of all funds from political subdivisions that are placed in the custody of the State Treasurer for investment and reinvestment.

MARKET VALUE: The price at which a security is trading and could presumably be sold.

MASTER REPURCHASE AGREEMENT: A written contract covering all future transactions between the parties repurchase/reverse repurchase agreement that establishes each party’s in the transactions. A master agreement will often specify, among other things, the right of the buyer-lender to liquidate the underlying securities in the event of default by the seller borrower.

MATURITY: The date upon which the principal or stated value of an investment becomes due and payable.

MONEY MARKET MUTUAL FUNDS: Open-ended mutual fund that invests in commercial paper, bankers’ acceptances, repurchase agreements, government securities, certificates of deposit, and other highly liquid and safe securities, and pays money market rates of interest. The fund’s net asset value remains a constant $1/share, with the interest rate increasing or decreasing.

NATIONAL RECOGNIZED STATISTICAL RATING ORGANIZATION (NRSRO): A rating organization designated by the SEC as being nationally recognized.

NEW ISSUE: Term used when a security is originally “brought” to market.

OFFER PRICE: The price at which a broker/dealer/seller will offer securities to an investor. See Asked Price and Bid Price.

OPEN MARKET OPERATIONS: Purchases and sales of government and certain other securities in the open market by the New York Federal Reserve Bank as directed by the FOMC, in order to influence the volume of money and credit in the economy. Purchases inject reserves into the bank system and stimulate growth of money and credit; Sales have the opposite effect. Open market operations are the Federal Reserve’s most important and most flexible monetary policy tool. Under the Federal Reserve Act, the Fed uses purchases and sales of government and Federal Agency securities to add to or subtract from commercial bank reserves.

Goals are to sustain economic growth, high employment, and reasonable price stability.

PAPER GAIN OR LOSS: Term used for unrealized gain or loss on securities being held in a portfolio based on comparison of current market quotes and their original cost. This situation exists, as long as the security is held while there is a difference between cost value (book value) and the market value.

PERFECTED DELIVERY: Refers to an investment where the actual security or collateral is held by an independent third party representing the purchasing entity.

POOLED MONEY INVESTMENT ACCOUNT (PMIA): The PMIA began in 1955 and oversight is provided by the Pooled Money Investment Board (PMIB) and an in-house Investment Committee. The Investment Division of the State Treasurer’s Office manages the PMIA under statutory authority granted by California Government Code sections 16430 and 16480.4. The Pooled Money Investment Board governs the PMIA. The State Treasurer chairs the Board, which also includes the State Controller and the State Director of Finance. Through PMIA, the State Treasurer invests taxpayers’ money to manage the State’s cash flow and strengthen the

CITY OF LAGUNA HILLS

INVESTMENT AND PORTFOLIO POLICIES
2025

financial security of local governmental entities. The PMIA has three primary sources of funds: the State general fund; special funds held by State agencies; and moneys deposited by cities, counties and other entities into the Local Agency Investment Fund (LAIF).

PORTFOLIO: Collection of securities held by an investor.

PRIMARY DEALER: A group of government securities dealers who submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include Securities and Exchange Commission (SEC)-registered securities broker-dealers, banks, and a few unregulated firms.

PRUDENT PERSON RULE: An investment standard. In some states the law requires that a fiduciary, such as a trustee, may invest money only in a list of securities selected by the custody state - the so called legal list. In other states, the trustee may invest in a security if it is one which would be bought by a prudent person of discretion and intelligence who is seeking a reasonable income and preservation of capital, PURCHASE DATE: The date in which a security is purchased for settlement on that or a later date.

QUALIFIED PUBLIC DEPOSITORIES: A financial institution which does not claim exemption from the payment of any sales or compensating use or ad valorem taxes under the laws of this state, which has segregated for the benefit of the commission eligible collateral having a value of not less than its maximum liability and which has been approved by the Public Deposit Protection Commission to hold public deposits.

RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current market price.

This may be the amortized yield to maturity on a bond or the current income return.

REPURCHASE AGREEMENT (RP or REPO): A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed price on a fixed date. The security “buyer” in effect lends the “seller” money for the period of the agreement, and the terms of the agreement are structured to compensate for this. Dealers use RP extensively to finance their positions. Exception: When the Fed is said to do be doing RP, it is lending money, that is, increasing bank reserves.

REVERSE REPURCHASE AGREEMENT (Reverse REPO): A reverse-repurchase agreement (reverse repo) involves an investor borrowing cash from a financial institution in exchange for securities. The investor agrees to repurchase the securities at a specified date for the same cash value plus an agreed upon interest rate.

Although the transaction is like a repo, the purpose of entering into a reverse repo is quite different. While a repo is a straightforward investment of public funds, the reverse repo is borrowing.

RISK: Degree of uncertainty of return on an asset.

SAFEKEEPING: a) The service provided by banks and trust companies for clients when the bank or trust company stores the securities, takes in coupon payments, and redeems issues at maturity b) A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in a bank’s vaults for protection. See custody.

SEC RULE 15(C)3-1: See Uniform Net Capital Rule. Also called Net Capital Rule and Net Capital Ratio.

SECONDARY MARKET: A market made for the purchase and sale of outstanding issues following the initial distribution.

CITY OF LAGUNA HILLS

INVESTMENT AND PORTFOLIO POLICIES
2025

SECURITIES AND EXCHANGE COMMISSION (SEC): Agency created by Congress to protect investors in securities transactions by administering securities legislation.

SETTLEMENT DATE: The date at which a trade is cleared by delivery of securities against funds.

SPREAD: a) The yield or price difference between the bid and offer on an issue. b) The yield or price difference between issues.

STRUCTURED NOTES: Notes issued by Government Sponsored Enterprises (FHLB, FNMA, etc.) and Corporations that have imbedded options (e.g., call features, step-up coupons, floating rate coupons, derivatives-based returns) into their debt structure. Their market performance is impacted by the fluctuation of interest rates, the volatility of the imbedded options, and shifts in the shape of the yield curve.

SWAP: The sale of one issue and the simultaneous purchase of another for some perceived advantage.

TREASURY BILLS: A non-interest bearing discount security issued by the U.S. Treasury to finance the national debt. Most bills are issued to mature in three months, six months, or one year.

TREASURY BONDS: Long-term coupon-bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities of more than ten (10) years.

TREASURY NOTES: Medium-term coupon-bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities from two (2) to ten (10) years.

TRUST COMPANY: A trust company is a legal entity that acts as a fiduciary or agent on behalf of a person or business, for the purpose of administration, management and the eventual transfer of assets to a beneficial party. The trust company acts as a custodian for trusts, estates, custodial arrangements, asset management, stock transfer, beneficial ownership registration and other related arrangements. See Trustee.

TRUSTEE: A financial institution with trust powers that act in a fiduciary capacity for the benefit of the bondholders in enforcing the terms of the bond contract. See Trust Company.

U.S. GOVERNMENT AGENCIES: Instruments issued by various U.S. Government Agencies most of which are secured only by the credit worthiness of the particular agency.

UNIFORM NET CAPITAL RULE: Securities and Exchange Commission requirement that member firms as well as nonmember broker-dealers in securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1; Also called SEC RULE 15(C)3-1, Net Capital Rule and Net Capital Ratio. Indebtedness covers all money owed to a firm, including margin loans and commitments to purchase securities, one reason new public issues are spread among members of underwriting syndicates. Liquid capital includes cash and assets easily converted into cash.

YIELD: The rate of annual income return on an investment, expressed as a percentage. a) INCOME YIELD is obtained by dividing the current dollar income by the current market price for the security. b) YIELD AT MATURITY is the current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond.

YIELD CURVE: Yield calculations of various maturities at a given time to observe spread difference.

Item No. 4.7
City of Laguna Hills
City Council / Planning Agency
Staff Report
Date: October 22, 2024
To: Mayor and Council Members
From: Eric Hendrickson, Finance Director
Issue: Measure M2 Expenditure Report FY 2023/2024
Recommendation: That the City Council: 1) Approve the M2 Expenditure Report for the fiscal year ended June 30, 2024, for submittal to the Orange County Transportation Authority; and 2) Adopt a Resolution entitled: "A Resolution of the City Council of the City of Laguna Hills, California, concerning the Measure M2 (M2) Expenditure Report for the City of Laguna Hills for the fiscal year ended June 30, 2024." Background:

With the passage of Renewed Measure M (M2), local agencies must demonstrate eligibility and follow financial safeguard requirements in order for local jurisdictions to receive M2 fair share and competitive program funds. The Orange County Transportation Authority’s (OCTA) Ordinance No. 3 (M2 Ordinance) identifies the eligibility and safeguard requirements that must be met. One requirement under the M2 Ordinance is that each local agency must adopt and provide an expenditure report (in the form provided by OCTA) to OCTA each year within six months of the end of the local jurisdiction’s fiscal year to account for M2 funds. The City Council is requested to review and approve the attached Measure M2 Expenditure Report for the fiscal year ended June 30, 2024, and adopt the attached Resolution for submittal to OCTA, as required by Measure M2 Local Transportation Authority Ordinance No. 3.

On November 7, 2006, Orange County voters approved the renewal of the Measure M one-half cent sales tax for transportation improvements. This renewal plan is designated as Measure M2 and provides funding for 30 years to relieve traffic congestion. As part of Measure M2, taxpayer safeguards and audits are provided to ensure appropriate use of funds.

Item No. 4.7
One safeguard requirement under the M2 Ordinance is for each local agency to adopt and provide an annual expenditure report to OCTA each year in the template form provided by OCTA. This expenditure report is a detailed financial report used to track financial activity to account for M2 funds, developer/traffic impact fees, and funds expended by the jurisdiction to satisfy Maintenance of Effort (MOE) requirements. The report includes all M2 net revenue, fund balances and interest earned, and will identify expenditure by activity type and funding source.

The report is required six months after each jurisdiction’s fiscal year-end and must be adopted by Resolution before submittal to OCTA. The attached M2 Expenditure Report demonstrates the City is in compliance with the requirements of M2.

Fiscal Impact:

Over the past five years, Measure M2 has provided between $720,000 and $850,000 of annual revenue to the City for street maintenance and other purposes. Failure to submit the M2 Annual Expenditure Report could suspend or delay M2 funding.

Attachments:

1. Measure M2 Expenditure Report FY23/24

2. Proposed Resolution Concerning Measure M2 Expenditure Report FY23/24

City of Laguna Hills
M2 Expenditure Report
Fiscal Year Ended June 30, 2024
Beginning and Ending Balances
Schedule 1
Line
No.

Amount Interest
A M Freeway Projects 1 $ $
O Regional Capacity Program (RCP) 2 $ $
P Regional Traffic Signal Synchronization Program (RTSSP) 3 $ $ Q Local Fair Share 4 161,290.62 $ $
R High Frequency Metrolink Service 5 $ $
S Transit Extensions to Metrolink 6 $ $
T Convert Metrolink Station(s) to Regional Gateways that connect Orange County with High Speed Rail Systems 7 $ $ U
Senior Mobility Program or Senior Non Emergency Medical Program
8 214,448.74 $ $
V Community Based Transit/Circulators 9 $ $
W Safe Transit Stops 10 $ $
X Environmental Cleanup Program (Water Quality) 11 $ $
Other* 12 $ $
13 375,739.36 $ $
Monies Made Available During Fiscal Year 14 1,036,491.94 $ 11,840 $ 15 1,412,231.30 $ 11,840 $
Expenditures During Fiscal Year 16 912,448.43 $ 11,840 $ A M Freeway Projects 17 $ $
O Regional Capacity Program (RCP) 18 $ $
P Regional Traffic Signal Synchronization Program (RTSSP) 19 $ $ Q Local Fair Share 20 238,666.46 $ $
R High Frequency Metrolink Service 21 $ $
S Transit Extensions to Metrolink 22 $ $
T Convert Metrolink Station(s) to Regional Gateways that connect Orange County with High Speed Rail Systems 23 $ $ U
Senior Mobility Program or Senior Non Emergency Medical Program
24 261,116.41 $ $
V Community Based Transit/Circulators 25 $ $
W Safe Transit Stops 26 $ $
X Environmental Cleanup Program (Water Quality) 27 $ $
Other* 28 $ $
* Please provide a specific description
Balances at End of Fiscal Year
Balances at Beginning of Fiscal Year
Balances at Beginning of Fiscal Year
Description
Total Monies Available (Sum Lines 13 & 14)

City of Laguna Hills M2 Expenditure Report
Fiscal Year Ended June 30, 2024
Sources and Uses
Schedule 2
Line
No.

Amount Interest
A M Freeway Projects 1 $ $
O Regional Capacity Program (RCP) 2 $ $
P Regional Traffic Signal Synchronization Program (RTSSP) 3 $ $ Q Local Fair Share 4 785,454.66 $ $
R High Frequency Metrolink Service 5 $ $
S Transit Extensions to Metrolink 6 $ $
T Convert Metrolink Station(s) to Regional Gateways that connect Orange County with High Speed Rail Systems 7 $ $
U Senior Mobility Program or Senior Non Emergency Medical Program 8 51,037.28 $ 11,840.46 $ V Community Based Transit/Circulators 9 $ $
W Safe Transit Stops 10 $ $
X Environmental Cleanup Program (Water Quality) 11 200,000.00 $ $ Other* 12 $ $
13 1,036,491.94 $ 11,840.46 $
A M Freeway Projects 14 $ $
O Regional Capacity Program (RCP) 15 $ $
P Regional Traffic Signal Synchronization Program (RTSSP) 16 $ $ Q Local Fair Share 17 708,078.82 $ $
R High Frequency Metrolink Service 18 $ $
S Transit Extensions to Metrolink 19 $ $
T Convert Metrolink Station(s) to Regional Gateways that connect Orange County with High Speed Rail Systems 20 $ $
U Senior Mobility Program or Senior Non Emergency Medical Program 21 4,369.61 $ 11,840.46 $ V Community Based Transit/Circulators 22 $ $
W Safe Transit Stops 23 $ $
X Environmental Cleanup Program (Water Quality) 24 200,000.00 $ $ Other* 25 $ $
26 912,448.43 $ 11,840.46 $
27 124,043.51 $ $
* Please provide a specific description
TOTAL BALANCE (Subtract line 26 from 13)
TOTAL EXPENDITURES (Sum lines 14 to 25)
Description
Revenues:

TOTAL REVENUES (Sum lines 1 to 12)
Expenditures:

City of Laguna Hills M2 Expenditure Report Fiscal Year Ended June 30, 2024 Streets and Roads Detailed Use of Funds Schedule 3 Line No. MOE Developer / Impact Fees+ O O Interest P P Interest Q Q Interest X X Interest Other M22 Other M2 Interest Other* TOTAL 1 $ $ $ $ $ $ $ $ $ $ $ $ $ $ New Street Construction 2 $ $ $ $ $ $ $ $ $ $ $ $ $ $ Street Reconstruction 3 $ $ $ $ $ $ $ $ $ $ $ $ $ $ Signals, Safety Devices, & Street Lights 4 $ $ $ $ $ $ $ $ $ $ $ $ $ $ Pedestrian Ways & Bikepaths 5 $ $ $ $ $ $ $ $ $ $ $ $ $ $ Storm Drains 6 $ $ $ $ $ $ $ $ 200,000.00 $ $ $ $ $ 200,000 $ Storm Damage 7 $ $ $ $ $ $ $ $ $ $ $ $ $ $ 8 $ $ $ $ $ $ $ $ 200,000.00 $ $ $ $ $ 200,000 $ Right of Way Acquisition 9 $ $ $ $ $ $ $ $ $ $ $ $ $ $ 10 $ $ $ $ $ $ $ $ 200,000.00 $ $ $ $ $ 200,000.00 $ Patching 11 $ $ $ $ $ $ $ $ $ $ $ $ $ $ Overlay & Sealing 12 $ $ $ $ $ $ $ $ $ $ $ $ $ Street Lights & Traffic Signals 13 859,219.10 $ $ $ $ $ $ $ $ $ $ $ $ $ 859,219.10 $ Storm Damage 14 $ $ $ $ $ $ $ $ $ $ $ $ $ $ Other Street Purpose Maintenance 15 253,693.37 $ $ $ $ $ $ 708,078.82 $ $ $ $ 4,369.61 $ 11,840.46 $ $ 977,982.26 $ 16 1,112,912.47 $ $ $ $ $ $ 708,078.82 $ $ $ $ 4,369.61 $ 11,840.46 $ $ 1,837,201.36 $ 17 $ $ $ $ $ $ $ $ $ $ $ $ $ 18 1,112,912.47 $ $ $ $ $ $ 708,078.82 $ $ 200,000.00 $ $ 4,369.61 $ 11,840.46 $ $ 2,037,201.36 $ 19 1 Includes direct charges for staff time Legend 2 Other M2 includes A M, R,S,T,U,V, and W Project + Transportation related only A M * Please provide a specific description OPQRSTUVWX Finance Director Confirmation Any California State Constitution Article XIX streets and road eligible expenditure may be “counted” in local jurisdictions’ calculation of MOE if the activity is supported (funded) by a local jurisdictions’ discretionary funds (e.g. general fund). The California State Controller also provides useful information on Article XIX and the Streets and Highways Code eligible expenditures in its “Guidelines Relating to Gas Tax Expenditures for Cities and Counties”. I have reviewed and am aware of these guidelines and their applicability in calculating and reporting on Maintenance of Effort expenditures. Finance Director initial: _______________ Description Transit Extensions to Metrolink High Frequency Metrolink Servic Safe Transit Stops e Environmental Cleanup Program (Water Quality) Senior Mobility Program or Senior Non Emergency Medical Program Community Based Transit/Circulators Convert Metrolink Station(s) to Regional Gateways that connect Orange County with High Speed Rail Systems Freeway Projects Regional Capacity Program (RCP) Local Fair Share Regional Traffic Signal Synchronization Program (RTSSP) Total Maintenance Other 1 GRAND TOTALS (Sum Lines 1, 10, 16, 17) Type of Expenditure Indirect and/or Overhead Construction & Right of Way Total Construction1 Total Construction & Right of Way Maintenance

City of Laguna Hills
M2 Expenditure Report
Fiscal Year Ended June 30, 2024
Local Fair Share Project List
Schedule 4

PROJECT NAME AMOUNT EXPENDED
General Street Maintenance FY 23 24 (CP 11714) 708,078.82 $ $ 708,078.82

City of Laguna Hills
M2 Expenditure Report
Fiscal Year Ended June 30, 2024
Signature Page
Eric Hendrickson
Date
11 Jurisdictions are encouraged to submit MOE eligible expenditures higher than their MOE benchmark, so that should certain expenses be ruled ineligible during an MOE audit, the local jurisdiction still has sufficient MOE expenditures to demonstrate continued achievement of the MOE benchmark.

I hereby certify that:

All the information attached herein and included in schedules 1 through 4 is true and accurate to the best of my knowledge;
The interest earned on Net Revenues allocated pursuant to the Ordinance shall be expended only for those purposes for which the Net Revenues were allocated;
The City of Laguna Hills is aware of the State Controller’s “Guidelines Relating to Gas Tax Expenditures for Cities and Counties”, which is a guide for determining MOE Expenditures for M2 Eligibility purposes; The City’s Expenditure Report is in compliance with direction provided in the State Controller’s “Guidelines Relating to Gas Tax Expenditures for Cities and Counties;” and The City of Laguna Hills has expended in this fiscal year an amount of local discretionary funds for streets and roads purposes at least equal to or exceeding the FY 2023 24 MOE benchmark dollar amount11. 10/11/2024 Director of Finance (Print Name)
Signature

RESOLUTION NO. 2024-10-22-X

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

LAGUNA HILLS, CALIFORNIA, CONCERNING THE
MEASURE M2 (M2) EXPENDITURE REPORT FOR THE

CITY OF LAGUNA HILLS FOR FISCAL YEAR ENDED
JUNE 30, 2024
The City Council of the City of Laguna Hills, California, hereby finds, determines declares, and resolves as follows:

WHEREAS, local jurisdictions are required to meet eligibility requirements and submit eligibility verification packages to the Orange County Transportation Authority (OCTA) in order to remain eligible to receive M2 funds; and WHEREAS, local jurisdictions are required to adopt an annual M2 Expenditure Report as part of one of the eligibility requirements; and WHEREAS, local jurisdictions are required to account for Net Revenues, developer/traffic impact fees, and funds expended by local jurisdiction in the M2 Expenditure Report that satisfy the Maintenance of Effort requirements; and WHEREAS, the M2 Expenditure Report shall include all Net Revenue fund balances, interest earned and expenditures identified by type and program or project; and WHEREAS, the M2 Expenditure Report must be adopted and submitted to the OCTA each year within six months of the end of the local jurisdiction’s fiscal year to be eligible to receive Net Revenues as part of M2.

NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF LAGUNA HILLS, CALIFORNIA, DOES HEREBY INFORM OCTA THAT:
a) The M2 Expenditure Report is in conformance with the template provided in the Measure M2 Eligibility Guidelines and accounts for Net Revenues including interest earned, expenditures during the fiscal year, and balances at the end of fiscal year.
b) The M2 Expenditure Report is hereby adopted by the City of Laguna Hills. c) The City of Laguna Hills Finance Director is hereby authorized to sign and submit the M2 Expenditure Report to OCTA for the fiscal year ending June 30, 2024.

Resolution No. 2024-10-22-X

PASSED, APPROVED, AND ADOPTED this 22nd day of October 2024. ____________________________

DAVE WHEELER, MAYOR
ATTEST:
___________________________________

JENNIFER LEE, CITY CLERK

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. 2024-10-22-X adopted by the City Council of the City of Laguna Hills, California, at a Regular Meeting thereof held on the 22nd day of October 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
(SEAL)
_____________________________________

JENNIFER LEE, CITY CLERK

Item No. 4.8
City of Laguna Hills
City Council / Planning Agency
Staff Report
Date: October 22, 2024
To: Mayor and Council Members
From: Eric Hendrickson, Finance Director
Issue: Fiscal Year 2023-2024 Development Impact Fees Annual Report Recommendation: That the City Council approve the Fiscal Year 2023-2024 Development Impact Fees Annual Report pursuant to California Government Code Section 66006.

Background:

Pursuant to Section 66006 of the California Government Code, local agencies are authorized to condition approval of development projects on the payment of development impact fees for the purpose of defraying all or a portion of the cost of public facilities related to the development project. Any local agency that imposes a development impact fee is required to make available to the public a summary of each mitigation fee account on an annual basis. At this time, the City imposes three types of development impact fees on development projects – Public Art Fees, Traffic Mitigation Fees, and Quimby Act Fees – and pursuant to the aforementioned regulations, it is required to make available for public review a summary of activities for each account.

The Mitigation Fee Act, as provided for in Section 66006 of the California Government Code, regulates the means by which public agencies collect, maintain, and spend development impact fees imposed on development projects. The regulations include specific requirements pertaining to governmental accounting, spending, and annual reporting of development impact fees. Each fiscal year (FY) the City is required to make available to the public a summary of each mitigation fee account (“Annual Report”).

Moreover, after a 15-day public review period, the City is required to review the Annual Report in a public meeting.

Item No. 4.8
Reporting Requirements
The City imposes three types of development impact fees on development projects:

Public Art Fees, Traffic Mitigation Fees, and Quimby Act Fees. Accordingly, as required in the Mitigation Fee Act, the City must make available its Annual Report which includes:

1. A brief description of the type of fee in the account or fund;

2. The amount of the fee;

3. The beginning and ending balance of the account or fund;

4. The amount of the fees collected and interest earned;

5. Identification of each public improvement on which fees were expended and the total amount of the expenditures on each improvement, including the total percentage of the cost of the public improvement that was funded with fees;

6. An identification of an approximate date by which the construction of the public improvement will commence if the local agency determines that sufficient funds have been collected to complete financing on an incomplete public improvement, and the public improvement remains incomplete;

7. A description of each interfund transfer or loan made from the account or fund, including the public improvement on which the transferred or loaned fees will be expended, and, in the case of an interfund loan, the date on which the loan will be repaid, and the rate of interest that the account or fund will receive on the loan; and

8. The amount of any refunds made pursuant to Section 66001(e) and the amount of any allocations pursuant to Section 66001(f).

Furthermore, Section 66008 of the Mitigation Fee Act provides that a local agency shall expend a fee for public improvements solely and exclusively for the purpose for which it is collected. The fee may not be levied, collected, or imposed for general revenue purposes.

Summary of Mitigation Fee Activity
No Public Art impact fee revenue was collected during FY23-24. Interest earned during the fiscal year on the existing fund balance totaled $28,014.29. In the prior fiscal year, the City Council approved an agreement with sculptor Brittany Ryan, for a large-scale bronze sculpture memorial monument, for a total not to exceed $150,000. During FY23- 24, no expenses occurred. The sculptor contract and encumbrance are still valid and ongoing for the work to be completed in future fiscal years. The fund balance as of June 30, 2024, was $569,701.73.

Item No. 4.8
No Quimby Act fee revenue was collected during FY23-24. Interest earned during the fiscal year on the existing fund balance totaled $106,207.50. Expenses during the fiscal year totaled $48,943.80; these expenditures were for park improvement design costs.

During FY23-24, the City Council appropriated $2,053,640.48 of Quimby Funds towards CIP #241 (General Park Renovations). The fund balance as of June 30, 2024, was $2,110,904.18.

The Traffic Mitigation Fee fund had no activity during the fiscal year, and began and ended with a zero balance.

Public Review
The Annual Report (attached as “Exhibit A”) was made available for public review at the City Clerk’s Office on October 7, 2024, satisfying the 15-day public review period as required by the Mitigation Fee Act. In addition, the Building Industry Association received an advance copy of the Annual Report on the same date.

Fiscal Impact:

There is no fiscal impact by approving this report.

Attachments:

1. FY 23-24 Development Impact Fees Annual Report

FISCAL YEAR 2023-2024

DEVELOPMENT IMPACT FEES ANNUAL REPORT
The Laguna Hills City Council has adopted three types of development impact fees that it imposes on development projects: Public Art Fees, Traffic Mitigation Fees, and Quimby Act Fees. Pursuant to the Mitigation Fee Act, as provided in Section 66006 of the California Government Code, the City is required to make available for public review a summary of its development impact fees.

Type of Mitigation Fee
The City imposes three types of development impact fees:
• Public Art Fees: This fee provides funding for Public Art throughout the City’s Urban Village, thereby enhancing the cultural and aesthetic environment of the City and to encourage creativity, education, and appreciation of the arts. • Traffic Mitigation Fees: This fee provides funding for additional or improved traffic signal, operation, and infrastructure improvements for which the demand is generated by new development within the Urban Village.
• Quimby Act Fees: This fee provides funding for additional or improved park and/or recreation facilities improvements for which the demand is generated by new residential development within the City.

Amount of Fee
The amounts of the development impact fees are described below:
• Public Art Fee: The minimum amount for the public art component or in-lieu fee shall be required of all new development with a total project construction cost of $250,000 or more pursuant to the following formula:
o TCC X 0.005 = Value of Public Art component or in-lieu fee  TCC = Total Construction Cost (permit valuation)
 0.005 = Minimum value shall be 0.5% of TCC
• Traffic Mitigation Fee: The fee shall be three thousand nine hundred fourteen dollars ($3,914.00) per each new PM peak hour trip as determined by the City Engineer based upon an approved traffic study.

• Quimby Act Fee: The amount of land or in-lieu fee to be dedicated shall be determined pursuant to the following formula:
o A = 5(DU X PPD) / 1,000
o In-lieu fee = A X FMV
 A = Acres required to be dedicated as parkland
 5.0 = City’s park acreage standard (for every 1,000 residents)  DU = Dwelling Units (number of)
 FMV = Fair Market Value (for one acre of parkland)
 PPD = Persons Per Dwelling (as applicable for the subdivision and type of dwelling units constructed)
Summary of Mitigation Fee Activity
A summary of each type of mitigation fee for fiscal year ending June 30, 2024, is described below in Table 1:

Table 1: Summary of Mitigation Fee Activity for Fiscal Year Ending June 30, 2024 Public Art Fees Traffic Mitigation
Fees Quimby Act Fees

REVENUES
Fees $ - $ - $ -
Interest $ 28,014.29 $ - $ 106,207.50
Misc. Revenue $ - $ - $ -
Total Revenue $ 28,014.29 $ - $ 106,207.50
EXPENDITURES $ - $ - $ 48,943.80
TRANSFERS IN/OUT $ - $ - $ -

CHANGE IN FUND
BALANCE $ 28,014.29 $ - $ 57,263.70

BEGINNING FUND
BALANCE $ 541,687.44 $ $
ENDING FUND BALANCE $ 569,701.73 $ - $ 2,110,904.18
The ending balances were arrived at by adding the fees collected and interest earned to each account, and then subtracting the expenditures. The Public Art Fees fund collected $0 in new fees and $28,014.29 in interest earnings, with an expenditure of $0, for a total ending balance of $569,701.73. The Traffic Mitigation Fees fund had no activity during the fiscal

- 2,053,640.48

year ending June 30, 2024, and has zero beginning and ending balances. The Quimby Act Fees fund collected $0 in new fees and $106,207.50 in interest earnings, with $48,943.80 in expenditures, for a total ending balance of $2,110,904.18.

Expenditures
For this section, State law requires an identification of each public improvement on which fees were expended and the amount of expenditures on each improvement, including the total percentage of the costs of the public improvement that was funded with fees.

Expenditures in the Quimby Act fund for the fiscal year were $48,943.80. During FY 2023-24, the City contracted with several qualified park design companies for park improvement plans.

These design services are the preliminary stages that must happen before construction can occur.

There were no expenditures in FY 2023-24 from either the Traffic Mitigation Fees fund or the Public Art Fees fund.

Construction Commencement Date for Incomplete Improvements As stipulated in the Agreement between the City and sculptor Brittany Ryan, the sculpture memorial monument project is anticipated to be completed not later than September 2025, 27 months from the date the Agreement was executed. Construction of the full-scale sculpture is anticipated to commence in December 2024.

In regards to the Quimby Act funds, the design work is currently underway for park improvements. Construction for park improvements is anticipated in fiscal year 2025-2026.

Interfund Transfers and Loans
No interfund transfers were made and no collected fees were loaned to another account in FY 2023-24.

Amount of Refunds
No refunds of any of these funds were made or required in FY 2023-24.

Fifth Year Findings
Pursuant to Government Code Section 66001 (d) (1), Fifth year findings must be made with respect to that portion of the account or fund remaining unexpended after the fifth fiscal year following the first deposit into the account or fund, and every five years thereafter.

Fifth year findings were made as part of the City’s FY 2021-22 Annual Report, for Public Art Fee funds initially deposited during FY 2016-17. All funds deposited during FY 2016-17 are anticipated to be expended well prior to FY 2026-27, when fifth year findings would again be required.

Item No. 4.9
City of Laguna Hills
City Council / Planning Agency
Staff Report
Date: October 22, 2024
To: Mayor and Council Members
From: Jay Wuu, Senior Planner
Issue: Development Application Status Report
Recommendation: That the City Council receive and file the report.

Background:

The purpose of this Status Report is to identify new and pending development applications in process with the City’s Community Development Department which will require a public hearing. Links to project documents are available on the City’s website at: https://lagunahillsca.gov/PlanningProjects.

Case Number USE-0166-2023 (SDP/TPM/PUP/PP)
Project Location 24422 Avenida de la Carlota, Oakbrook Plaza Project
Description
A request to construct a new 240-unit senior living apartment complex in a 7-story, podium-style development with four residential levels located above four parking levels, including one subterranean parking level. The existing office building on site will remain, with parking for the office building provided in the new parking structure.

Applicant Matt Haugen, BSP Oakbrook LLC
Project Planner Adam Pisarkiewicz, Contract Planner
Status On April 11, 2024, a letter was sent to the Applicant deeming the Application complete. On June 10, 2024, a letter was sent to the Applicant identifying reasons the proposed Project is, or

Item No. 4.9
potentially is, inconsistent, not in compliance, or not in conformity with City plans, programs, policies, ordinances, standards, and requirements. On July 30, 2024, a letter was sent to the Applicant identifying additional technical review comments. Staff is currently awaiting resubmittal of plans; the item will be scheduled for public hearing when ready.

Case Number USE-0147-2023 (SDP)
Project Location 25254 La Paz Road
Project
Description
Request to construct 180 age-restricted, multiple-family dwelling units within an approximately 61-foot-tall, six-story building, including two parking levels (one subterranean) with 250 parking spaces.

Applicant Nick Buchanan
Project Planner Jay Wuu, Senior Planner
Status On April 18, 2024, a letter was sent to the Applicant deeming the Application complete. On June 17, 2024, a letter was sent to the Applicant identifying reasons the proposed Project is, or potentially is, inconsistent, not in compliance, or not in conformity with City plans, programs, policies, ordinances, standards, and requirements. Staff is currently conducting CEQA review and additional technical review of the proposed Project. The item will be scheduled for public hearing when ready.

Case Number USE-0165-2023 (ZTA/TTM/SDP)
Project Location 23272 – 23282 Mill Creek Drive
Project
Description
Request to construct 48 detached residential condominium units.

Applicant John Stack, on behalf of KB Spectrum Summit Plaza, LLC Project Planner Jay Wuu, Senior Planner
Status On May 3, 2024, a letter was sent to the Applicant deeming the

Item No. 4.9
Application complete. On August 28, 2024, a letter was sent to the Applicant identifying additional technical review comments and informing the Applicant of significant design concerns. Staff is currently awaiting a withdrawal of the Application or resubmittal of plans; the item will be scheduled for public hearing when ready.

Case Number USE-0172-2024 (CPMA)
Project Location 23521 Paseo de Valencia
Project
Description
Request to construct carports in the Taj Mahal parking lot to accommodate solar panels.

Applicant Alisha Cosio, on behalf of Valta Energy
Project Planner Jennifer Ash, Assistant Planner
Status On March 29, 2024, a letter was sent to the Applicant deeming the Application incomplete. Staff is currently awaiting resubmittal of plans; the item will be scheduled for public hearing when ready.

Fiscal Impact:

None.

Attachments:

None

Item No. 4.10
City of Laguna Hills
City Council / Planning Agency
Staff Report
Date: October 22, 2024
To: Mayor and Council Members
From: Jay Wuu, Senior Planner
Issue: Approval of Four Professional Services Agreements to: 1) Ascent Environmental, Inc.; 2) De Novo Planning Group; 3) Dudek; and 4) LSA Associates, Inc., for On-Call Environmental Review Consulting Services Recommendation: That the City Council approve four Professional Services Agreements with the following consulting firms: 1) Ascent Environmental, Inc.; 2) De Novo Planning Group; 3) Dudek; and 4) LSA Associates, Inc., for On-Call Environmental Review Consulting Services, in the total not to exceed contract amount of $500,000 each for a term of five (5) years, respectively, and authorize the City Manager to execute each of the four proposed Professional Services Agreements.

Background:

To fulfill the City’s mission, goals and objectives, the City utilizes consultants on an oncall, as-needed basis for a variety of professional consulting services to assist City staff.

The Community Development Department has identified the need for qualified environmental consultants to assist with a variety of services, including preliminary review of projects for California Environmental Quality Act (CEQA) purposes, preparing CEQA documents, providing peer review of CEQA documents, among a variety of other tasks. Toward this end, the City has determined that there is a need to retain the professional services of qualified land use and environmental planning firms to provide environmental review consulting services for the purpose of ensuring that the City complies with all aspects of the California Environmental Quality Act (“CEQA”), as well to provide the City with other as-needed land use, environmental planning, and CEQA review, compliance, and planning and support services that may be required on an asneeded, on-call basis.

Item No. 4.10
Pursuant to Laguna Hills Municipal Code Section 3-08.150, a formal competitive Request for Proposals (RFP) process was issued for On-Call CEQA Consulting Services on May 30, 2024. The City received sixteen (16) proposals from qualified firms by the due date of July 11, 2024. As part of the formal competitive selection process, an internal committee was assembled to evaluate the proposals. After independent evaluations were completed, the best qualified candidate firms were determined to be: Ascent Environmental, Inc.; De Novo Planning Group; Dudek; and LSA Associates, Inc., based upon their demonstrated competence and professional qualifications. Each of the selected firms have local Orange County offices, have specialized expertise in providing CEQA consulting services for municipal clients, have excellent qualified staffing, experience, and references, and have the demonstrated ability to meet the City’s consulting needs.

The proposed professional services agreements provide that there is no guarantee of work being issued to any one firm, the work will be issued by Task Order only, there is a total maximum contract amount of $500,000 each, the term of the agreements are each limited to five (5) years, and the agreements are non-exclusive. The proposed agreements will be effective October 23, 2024. A majority of the costs associated with consultant services utilized under the proposed agreements is anticipated to be reimbursable through applicant deposit accounts established for discretionary applications processed through the Community Development Department.

Therefore, City staff recommends that the City Council approve the proposed Professional Services Agreements with each of the four firms recommended, which are attached hereto, and authorize the City Manager to execute each of the proposed Professional Services Agreements. The Proposals submitted to the City by each of the four firms selected are attached as Exhibit “A” to each Agreement.

Fiscal Impact:

None.

Attachments:

1. Attachment 1 - Professional Services Agreement with Ascent Environmental, Inc

2. Attachment 2 - Professional Services Agreement with De Novo Planning Group

3. Attachment 3 - Professional Services Agreement with Dudek

4. Attachment 4 - Professional Services Agreement with LSA Associates, Inc.

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1 PROFESSIONAL SERVICES AGREEMENT
Ascent Environmental, Inc.

On-Call Environmental Review Consulting Services
THIS PROFESSIONAL SERVICES AGREEMENT (hereinafter “Agreement”) is made and entered into, to be effective the 23rd day of October 2024, 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 ASCENT ENVIRONMENTAL, 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. City has determined that there is a need to retain the professional services of a qualified land use and environmental planning firm to provide environmental review consulting services for the purpose of ensuring that the City complies with all aspects of the California Environmental Quality Act (“CEQA”), as well to provide the City with other as-needed land use, environmental planning, and CEQA review, compliance, and planning and support services that may be required on an as-needed, on-call basis (the “Project”).

B. In response to City’s Request for Proposals (RFP), dated May 30, 2024, Consultant has submitted to City a proposal, dated July 11, 2024, to provide the City with professional land use planning and environmental review consulting services for the Project pursuant to the terms and conditions of this Agreement.

C. Consultant represents and maintains that it is uniquely qualified by virtue of its experience, training, education, reputation, and technical expertise to provide the professional land use planning and environmental review consulting services to City for the Project and has agreed to provide such services as provided herein. City does not have the personnel, training, certification, or technical expertise necessary to perform the work and services contracted for herein.

D. City desires to retain Consultant to provide such professional land use planning and environmental review consulting services for the Project.

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 the professional

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2 land use planning and environmental review consulting services for the Project as set forth in the Proposal/Scope of Work, dated July 11, 2024, which is attached hereto as Exhibit “A” and is incorporated herein by reference (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 July 11, 2024 submitted to the City (“Consultant’s Proposal”), which shall both be referred to collectively hereinafter as the “Contract Documents.” The Consultant’s Proposal/Scope of Work is attached hereto as Exhibit “A” and is hereby incorporated by reference and made a part of this Agreement. All provisions of the Contract Documents 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 elected and appointed 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

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3 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 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 elected and appointed 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.

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4 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 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, in accordance with the professional hourly rates and charges set forth in the Schedule of Compensation/Fees, which is attached hereto as Exhibit “A” and is incorporated herein by reference, but not exceeding the total maximum contract amount of Five Hundred Thousand Dollars ($500,000.00) (hereinafter referred to as the "Maximum Contract Amount"). The method of compensation shall be as set forth in Exhibit “A”. The Maximum Contract Amount shall include the attendance of Consultant at all Project meetings deemed reasonably necessary by the City. Consultant shall not be entitled to any increase in the Maximum Contract Amount for attending these meetings. 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 forty-five (45) days after receipt of the invoice or a soon thereafter as is reasonably practical.

2.3 Optional CPI Adjustment. The fees, rates, and/or unit prices set forth in Consultant's Proposal (Exhibit “A”) shall remain fixed and unchanged for the first two years of the term of this Agreement (i.e., from October 23, 2024 through October 22, 2026). Thereafter, Consultant may submit a request to adjust its fees, rates, and/or unit prices once per year during the remainder of the term of the Agreement as provided for herein. However, approval of any request to adjust Consultant's fees, rates, and/or unit prices as set forth herein shall be made at the sole discretion of the City Manager, in writing, and is subject to the City’s approved budget.

Such fee, rate, and/or unit pricing adjustment(s), if any, shall not exceed the value of the change in the Consumer Price Index for the Los Angeles/Orange County area for the preceding one year as published for the month of April of any given year. In no event shall any adjustment of any

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5 fee, rate, and/or unit pricing as authorized by this section exceed five percent (5%) per year regardless of CPI or any other cost factors.

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

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.

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6 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 five (5) years, commencing on October 23, 2024 and ending on October 22, 2029, unless extended by mutual written agreement of the Parties.

3.5 Task Orders. Consultant hereby agrees and acknowledges that any and all Services or Work performed pursuant to this Agreement shall be based upon the prior issuance of a written project task order by the City. Furthermore, Consultant hereby agrees and acknowledges that execution of this Agreement by the City does not in any way guarantee that a task order will be issued to Consultant. Moreover, execution of this Agreement by the City shall not entitle Consultant to any form of payment or compensation from the City without City first having issued a project task order.

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: Chad R. Beckstrom, AICP, Principal in Charge. 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. 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

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7 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, 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 as required by law 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,

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8 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.

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 one million dollars ($1,000,000.00) per occurrence, two million dollars ($2,000,000.00) in the general aggregate, and one million dollars ($1,000,000.00) for products and completed operations.

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.

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9 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 two million dollars ($2,000,000.00). Covered professional services shall 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. Intentionally omitted.

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.

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10 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:

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

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11 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.

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.

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12 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:

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.

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13 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 and hold the City, its elected and appointed officials, officers, employees, agents and volunteers, free and harmless from any and all claims, demands, orders, causes of action, costs, expenses, liabilities, losses, penalties, judgments, arbitration awards, settlements, damages or injuries of any kind, in law or in equity, including but not limited to property or persons, including wrongful death, (collectively “Claims”) in any manner arising out of, pertaining to, related to, or incident to any alleged acts, errors or omissions, or willful misconduct of Consultant, its officers, directors, employees, subcontractors, consultants or agents, in connection with Consultant’s performance under this Agreement, including without limitation the payment of all consequential damages, expert witness fees and attorneys’ fees and other related costs and expenses. Notwithstanding the foregoing, to the extent that the Work or Services performed by Consultant are subject to Civil Code Section 2782.8, the above indemnity shall be limited, to the extent required by Civil Code Section 2782.8, to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant. 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 such claims or liabilities arising from the sole or active negligence or willful misconduct of City.

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

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14 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 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

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15 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 thirty (30) 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 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.

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16 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 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

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17 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 Patent and Copyright Infringement.

A. To the fullest extent permitted by law, and in lieu of any other warranty by City or Consultant against patent or copyright infringement, statutory or otherwise, it is agreed that Consultant shall defend at its expense any claim or suit against City on account of any allegation that any item furnished under this Agreement, or the normal use or sale thereof arising out of the performance of this Agreement, infringes upon any presently existing U.S. letters patent or copyright and Consultant shall pay all costs and damages finally awarded in any such suit or claim, provided that Consultant is promptly notified in writing of the suit or claim and given authority, information and assistance at Consultant’s expense for the defense of same, and provided such suit or claim arises out of, pertains to, or is related to the alleged negligence, recklessness or willful misconduct of Consultant. However, Consultant will not indemnify City if the suit or claim results from: (1) City's alteration of a deliverable, such that City’s alteration of such deliverable created the infringement upon any presently existing U.S. letters patent or copyright; or (2) the use of a deliverable in combination with other material not provided by Consultant when it is such use in combination which infringes upon an existing U.S. letters patent or copyright.

B. Consultant shall have sole control of the defense of any such claim or suit and all negotiations for settlement thereof, Consultant shall not be obligated to indemnify City under any settlement made without Consultant’s consent or in the event City fails to cooperate in the defense of any suit or claim, provided, however, that such defense shall be at Consultant’s expense. If the use or sale of such item is enjoined as a result of the suit or claim, Consultant, at no expense to City, shall obtain for City the right to use and sell the item, or shall substitute an equivalent item acceptable to City and extend this patent and copyright indemnity thereto.

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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18 To City: City of Laguna Hills
Attention: City Manager
24035 El Toro Road
Laguna Hills, California 92653
Telephone: (949) 707-2600

To Consultant: Ascent Environmental, Inc.

Attention: Chad R. Beckstrom, Principal
15642 Sand Canyon, #54491
Irvine, California 92619
Telephone: (949) 988-0890
Email: [email protected]

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 violate any provision of any other Agreement to which the Party for which he/she is signing is bound.

Modified Insr PSA 8082024
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4858-6904-8793, v. 1
19 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]

1836871.1
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EXHIBIT “A”
CONSULTANT’S PROPOSAL/ SCOPE OF WORK
FOR

ON-CALL ENVIRONMENTAL REVIEW CONSULTING SERVICES
DATED: JULY 11, 2024

SCOPE OF SERVICES FOR PROJECT

INCLUDING,

SCHEDULE OF PERFORMANCE
AND

SCHEDULE OF COMPENSATION/ FEES

SECTION H // COMPENSATION/PAYMENT SCHEDULE
CITY OF LAGUNA HILLS // ON-CALL CEQA CONSULTING SERVICES PAGE 1

H/ COMPENSATION/PAYMENT

SCHEDULE
(REVISED: AUGUST 22, 2024)
The following rate schedule represents Ascent’s fully burdened 2024 rates.

Labor Classification Billing Rate
Principal, Director $225 to $380
Senior Environmental Manager, Senior Planner/Scientist/Biologist $175 to $260 Environmental Manager, Project Planner/Scientist/Biologist $145 to $215 Staff Planner, Environmental Planner, Staff Scientist/Staff Biologist $105 to $185 Graphics/GIS $115 to $160
Document Production/Word Processor/Administrative Assistant $95 to $150 Project Assistant $75 to $135
Direct Costs Rates
Reproduction: 8½” by 11” $0.07/page (black and white);
$0.26/page (color)
Reproduction: 11” by 17” $0.14/page B&W; $0.52/page
color
Reproduction: Plotter $5/square foot
Reproduction: CDs $10/disc
Automobile Mileage (IRS rate in effect) $0.67
Noise Meter
$100/half day, $150/day,
$200/day plus overnight,
$500/week
GPS Unit
$100/half day, $150/day,
$200/day plus overnight,
$500/week
Bat Detector (Echo Meter Touch for iOS) $50/full day, $200/week Bat Detector (Song Meter SM4Bat FS) $125/full day, $500/week Spotting Scope $50/day, $200/week
Lodging and/or Per Diem Government rates or as
negotiated
Other Direct Costs As incurred
Subcontractors As incurred*
*A project-support management cost of 10 percent will be applied to subcontractor costs.

SECTION H // COMPENSATION/PAYMENT SCHEDULE
CITY OF LAGUNA HILLS // ON-CALL CEQA CONSULTING SERVICES PAGE 2

OPTIONAL CPI ADJUSTMENT
The fees, rates, and/or unit prices shall remain fixed and unchanged for the first two years of the term of this Agreement (i.e., from August 28, 2024 through August 27, 2026). Thereafter, Ascent may submit a request to adjust its fees, rates, and/or unit prices once per year during the remainder of the term of the Agreement.

Approval of any request to adjust Consultant's fees, rates, and/or unit prices as set forth herein shall be made at the sole discretion of the City Manager, in writing, and is subject to the City’s approved budget. Such fee, rate, and/or unit pricing adjustment(s), if any, shall not exceed the value of the change in the Consumer Price Index for the Los Angeles/Orange County area for the preceding one year as published for the month of April of any given year. In no event shall any adjustment of any fee, rate, and/or unit pricing as authorized by this section exceed five percent (5%) per year regardless of CPI or any other cost factors.

Modified Insr PSA 8082024
1836871.1
4877-0398-9465, v. 1
1 PROFESSIONAL SERVICES AGREEMENT
De Novo Planning Group
On-Call Environmental Review Consulting Services
THIS PROFESSIONAL SERVICES AGREEMENT (hereinafter “Agreement”) is made and entered into, to be effective the 23rd day of October 2024, 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 DE NOVO PLANNING GROUP, 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. City has determined that there is a need to retain the professional services of a qualified land use and environmental planning firm to provide environmental review consulting services for the purpose of ensuring that the City complies with all aspects of the California Environmental Quality Act (“CEQA”), as well to provide the City with other as-needed land use, environmental planning, and CEQA review, compliance, and planning and support services that may be required on an as-needed, on-call basis (the “Project”).

B. In response to City’s Request for Proposals (RFP), dated May 30, 2024, Consultant has submitted to City a proposal, dated July 11, 2024, to provide the City with professional land use planning and environmental review consulting services for the Project pursuant to the terms and conditions of this Agreement.

C. Consultant represents and maintains that it is uniquely qualified by virtue of its experience, training, education, reputation, and technical expertise to provide the professional land use planning and environmental review consulting services to City for the Project and has agreed to provide such services as provided herein. City does not have the personnel, training, certification, or technical expertise necessary to perform the work and services contracted for herein.

D. City desires to retain Consultant to provide such professional land use planning and environmental review consulting services for the Project.

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 the professional

Modified Insr PSA 8082024
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2 land use planning and environmental review consulting services for the Project as set forth in the Proposal/Scope of Work, dated July 11, 2024, which is attached hereto as Exhibit “A” and is incorporated herein by reference (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 July 11, 2024 submitted to the City (“Consultant’s Proposal”), which shall both be referred to collectively hereinafter as the “Contract Documents.” The Consultant’s Proposal/Scope of Work is attached hereto as Exhibit “A” and is hereby incorporated by reference and made a part of this Agreement. All provisions of the Contract Documents 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 elected and appointed 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

Modified Insr PSA 8082024
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3 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 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 elected and appointed 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.

Modified Insr PSA 8082024
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4877-0398-9465, v. 1
4 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 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, in accordance with the professional hourly rates and charges set forth in the Schedule of Compensation/Fees, which is attached hereto as Exhibit “A” and is incorporated herein by reference, but not exceeding the total maximum contract amount of Five Hundred Thousand Dollars ($500,000.00) (hereinafter referred to as the "Maximum Contract Amount"). The method of compensation shall be as set forth in Exhibit “A”. The Maximum Contract Amount shall include the attendance of Consultant at all Project meetings deemed reasonably necessary by the City. Consultant shall not be entitled to any increase in the Maximum Contract Amount for attending these meetings. 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 forty-five (45) days after receipt of the invoice or a soon thereafter as is reasonably practical.

2.3 Optional CPI Adjustment. The fees, rates, and/or unit prices set forth in Consultant's Proposal (Exhibit “A”) shall remain fixed and unchanged for the first two years of the term of this Agreement (i.e., from October 23, 2024 through October 22, 2026). Thereafter, Consultant may submit a request to adjust its fees, rates, and/or unit prices once per year during the remainder of the term of the Agreement as provided for herein. However, approval of any request to adjust Consultant's fees, rates, and/or unit prices as set forth herein shall be made at the sole discretion of the City Manager, in writing, and is subject to the City’s approved budget.

Such fee, rate, and/or unit pricing adjustment(s), if any, shall not exceed the value of the change in the Consumer Price Index for the Los Angeles/Orange County area for the preceding one year as published for the month of April of any given year. In no event shall any adjustment of any

Modified Insr PSA 8082024
1836871.1
4877-0398-9465, v. 1
5 fee, rate, and/or unit pricing as authorized by this section exceed five percent (5%) per year regardless of CPI or any other cost factors.

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

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.

Modified Insr PSA 8082024
1836871.1
4877-0398-9465, v. 1
6 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 five (5) years, commencing on October 23, 2024 and ending on October 22, 2029, unless extended by mutual written agreement of the Parties.

3.5 Task Orders. Consultant hereby agrees and acknowledges that any and all Services or Work performed pursuant to this Agreement shall be based upon the prior issuance of a written project task order by the City. Furthermore, Consultant hereby agrees and acknowledges that execution of this Agreement by the City does not in any way guarantee that a task order will be issued to Consultant. Moreover, execution of this Agreement by the City shall not entitle Consultant to any form of payment or compensation from the City without City first having issued a project task order.

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: Amanda Tropiano, Principal. 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. 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

Modified Insr PSA 8082024
1836871.1
4877-0398-9465, v. 1
7 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, 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 as required by law 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,

Modified Insr PSA 8082024
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8 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.

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 one million dollars ($1,000,000.00) per occurrence, two million dollars ($2,000,000.00) in the general aggregate, and one million dollars ($1,000,000.00) for products and completed operations.

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.

Modified Insr PSA 8082024
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9 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 two million dollars ($2,000,000.00). Covered professional services shall 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. Intentionally omitted.

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.

Modified Insr PSA 8082024
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10 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:

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

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11 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.

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.

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12 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:

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.

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13 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 and hold the City, its elected and appointed officials, officers, employees, agents and volunteers, free and harmless from any and all claims, demands, orders, causes of action, costs, expenses, liabilities, losses, penalties, judgments, arbitration awards, settlements, damages or injuries of any kind, in law or in equity, including but not limited to property or persons, including wrongful death, (collectively “Claims”) in any manner arising out of, pertaining to, related to, or incident to any alleged acts, errors or omissions, or willful misconduct of Consultant, its officers, directors, employees, subcontractors, consultants or agents, in connection with Consultant’s performance under this Agreement, including without limitation the payment of all consequential damages, expert witness fees and attorneys’ fees and other related costs and expenses. Notwithstanding the foregoing, to the extent that the Work or Services performed by Consultant are subject to Civil Code Section 2782.8, the above indemnity shall be limited, to the extent required by Civil Code Section 2782.8, to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant. 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 such claims or liabilities arising from the sole or active negligence or willful misconduct of City.

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

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14 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 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

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15 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 thirty (30) 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 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.

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16 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 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