Laguna Hills City Council
December 10, 2024

City of Laguna Hills, California
Notes to Basic Financial Statements
June 30, 2024
47 The following is a summary of the changes in the claims liability for the last two fiscal years:

FY 2023/24 FY 2022/23
Claims payable, beginning $ 111,802 $ 304,323
Claims and changes in estimate (63,358) 11,701
Claims payments (48,444) (204,222)
Claims payable, ending $ - $ 111,802
Fiscal Year Ending June 30,
In the current fiscal year, the City paid the remaining claims in the amount of $48,444.

Note 8 - Pension Plans
a) General Information about the Pension Plans
Plan Descriptions
All qualified permanent and probationary employees are eligible to participate in the City’s Miscellaneous Employee Pension Plans, cost-sharing multiple employer defined benefit pension plans administered by the California Public Employees’ Retirement System (CalPERS). Benefit provisions under the Plans are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.

Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment. Members with five years of total service are eligible to retire at age 50 and 52 with statutorily reduced benefits for Tier I and PEPRA, respectively. All members are eligible for non-industrial disability benefits after 5 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.

City of Laguna Hills, California
Notes to Basic Financial Statements
June 30, 2024
48 The Plans’ provisions and benefits in effect at the measurement period ending June 30, 2023, are summarized as follows:

Miscellaneous Plan
Tier 1 PEPRA
Prior to On or After
Hire date January 1, 2013 January 1, 2013
Benefit formula 2% @ 60 2% @ 62
Benefit vesting schedule 5 years service 5 years service Benefit payments monthly for life monthly for life
Retirement age 50 - 63 52 - 67
Monthly benefits, as a % of
eligible compensation 1.092% to 2.418% 1.0% - 2.5%
Required employee contribution rates 7.0% 8.25%
Required employer contribution rates:

Normal cost rate 11.43% 8.00%
Payments of unfunded liability $ 365,511 $ -
Contributions
Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers are determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. City contribution rates may change if plan contracts are amended.

Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contributions requirements are classified as plan member contributions. For the period ended June 30, 2024, City contributions was $713,171.

Typically, the City liquidates its net pension liability with General Fund resources. b) Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions As of June 30, 2024, the City reported net pension liabilities for its proportionate share of the net pension liability of all Plans as follows:

Proportionate
Share of Net
Pension Liability
Miscellaneous $ 6,189,773

City of Laguna Hills, California
Notes to Basic Financial Statements
June 30, 2024
49 The City’s net pension liability for the Plan is measured as the proportionate share of the net pension liability.

The net pension liability of the Plan is measured as of June 30, 2023, and the total pension liability for the Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2022. The City’s proportionate share of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined.

The City’s proportionate share of the net pension liability for all Plans as of the measurement dates ended June 30, 2022 and 2023 was as follows:

Miscellaneous
Proportion - June 30, 2022 0.04848%
Proportion - June 30, 2023 0.04962%
Change - Increase (Decrease) 0.00114%
For the year ended June 30, 2024, the City recognized pension expense of $1,326,709. At June 30, 2024, (measurement period ending June 30, 2023), the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred Deferred
Outflows Inflows
of Resources of Resources
Pension contributions subsequent to measurement date $ 713,171 $ - Differences between expected and actual experience 316,207 49,051 Change in assumptions 373,704 -
Differences between the employer's contributions and the employer's proportionate share of contributions - 397,699 Change in employer's proportion 442,686 -
Net differences between projected and actual earnings on plan investments 1,002,180 -
Total $ 2,847,948 $ 446,750

City of Laguna Hills, California
Notes to Basic Financial Statements
June 30, 2024
50 Deferred outflows of resources related to contributions subsequent to the measurement date of $713,171 will be recognized as a reduction of the net pension liability in the year ending June 30, 2025. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Amount
2025 $ 546,417
2026 367,276
2027 745,577
2028 28,757
$ 1,688,027
Year Ending June 30,
Actuarial Assumptions
The total pension liability for the June 30, 2023 measurement period was determined by an actuarial valuation as of June 30, 2022, with update procedures used to roll forward the total pension liability to June 30, 2023. The total pension liability was based on the following assumptions:

Miscellaneous
Valuation Date June 30, 2022
Measurement Date June 30, 2023
Actuarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions:

Discount Rate 6.90%
Inflation 2.30%
Salary Increases (1)
Mortality Rate Table (2)
Post Retirement Benefit Increase (3)
(1) Varies by entry age and service.
(2) The mortality table used was developed based on CalPERS-specific data. The rates incorporate Generational Mortality to capture ongoing mortality improvement using 80% of Scale MP 2020 published by the Society of Actuaries. For more details, please refer to the 2021 experience study report that can be found on the CalPERS website.
(3) The less of contract COLA or 2.3% until Purchasing Power Protection Allowance Floor on Purchasing Power applies, 2.3% thereafter.

City of Laguna Hills, California
Notes to Basic Financial Statements
June 30, 2024
51 Long-term Expected Rate of Return
The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11+ years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses.

The expected real rates of return by asset class are as follows:

Assumed Real Return
Asset Years
Allocation 1 - 10 (a) (b)
Global Equity - Cap-Weighted 30.00% 4.54%
Global Equity - Non-Cap-Weighted 12.00% 3.84%
Private Equity 13.00% 7.28%
Treasury 5.00% 0.27%
Mortgage-Backed Securities 5.00% 0.50%
Investment Grade Corporates 10.00% 1.56%
High Yield 5.00% 2.27%
Emerging Market Debt 5.00% 2.48%
Private Debt 5.00% 3.57%
Real Assets 15.00% 3.21%
Leverage -5.00% -0.59%
100.0%
(a) An expected inflation of 2.30% used for this period. (b) Figures are based on the 2021-22 Asset Liability Management study.

Asset Class (a)
Discount Rate
The discount rate used to measure the total pension liability was 6.90%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

City of Laguna Hills, California
Notes to Basic Financial Statements
June 30, 2024
52 Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate The following presents the City’s proportionate share of the net pension liability for each Plan, calculated using the discount rate for each Plan, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate:

Miscellaneous
1% Decrease 5.90%
Net Pension Liability $ 9,846,694
Current Discount Rate 6.90%
Net Pension Liability $ 6,189,773
1% Increase 7.90%
Net Pension Liability $ 3,179,814
Pension Plans Fiduciary Net Position
Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.
c) Payable to the Pension Plans
At June 30, 2024, the City had no outstanding amount of contributions to the pension plans required for the year ended June 30, 2024.

Note 9 - Deferred Compensation
The City offers its employees two kinds of defined contribution deferred compensation plans. City contribution rates may change if plan contracts are amended.

One plan is created in accordance with Internal Revenue Code Section 457. This plan, available to all employees, permits them to defer annually up to a maximum of $22,500 for calendar year 2023 and $23,000 for calendar year 2024. This maximum deferred compensation is not available to employees until termination, retirement, death or unforeseeable emergency. Amounts accumulated under the plan have been invested in several investment options administered by independent third-party administrators at the direction of the employee.

The assets of the plan are held in trust for the exclusive benefit of the plan participants and their beneficiaries, and the assets cannot be diverted to any other purpose. The Trustee’s beneficial ownership of plan assets held in the MissionSquare Retirement is held for the further exclusive benefit of the plan participants and their beneficiaries. The plan permits loans, administered by the City, in accordance with approved loan guidelines.

The City contributes 3.75% of the employee’s compensation for part-time seasonal employees. There are no City contributions required for full-time and non-seasonal part-time employees. The City’s total contributions for the fiscal year ended June 30, 2024 was $3,669.

City of Laguna Hills, California
Notes to Basic Financial Statements
June 30, 2024
53 The other Plan is a defined contribution plan created in accordance with Internal Revenue Code Section 401A.

This Plan is available to all management staff regardless of years of service, and non-management employees who have reached a minimum of ten years of service with the City. The City is the sole contributor to this Plan and sets the contribution amount to each class of eligible employees. The contribution limit is in accordance with the prevailing IRS regulation, which is 3% for eligible non-management employees and 6.5% for eligible management employees. The City’s total contributions for the fiscal year ended June 30, 2024 was $91,019. The assets of this Plan, held for the exclusive benefits of the Plan’s participants and their beneficiaries, are administered by MissionSquare Retirement. Amounts accumulated under this Plan are self-directed by each participant.

Note 10 - Classification of Net Position and Governmental Fund Balances Net Position is measured on the full accrual basis of accounting as compared to the concept of Fund Balance, which is measured on the modified accrual basis of accounting.

Net Position Classifications
Net Position is divided into three captions as described below:

Net Investment in Capital Assets describes the portion of Net Position which is represented by the current net book value of the City’s capital assets, less outstanding balance of any debt issued to finance these capital assets.

Restricted describes the portion of Net Position which is restricted as to use by the terms and conditions of agreements with outside parties, governmental regulations, laws, or other restrictions which the City cannot unilaterally alter. Restricted net position is subject to constraints either by (1) externally imposed by creditors (such as debt covenants), grantors, contributors, or laws or regulation of other governments or (2) imposed by law through constitutional provisions or enabling legislation.

Unrestricted describes the portion of which is not restricted as to use.

Net Position Flow Assumption
Sometimes the City will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted - net position and unrestricted - net position in the government-wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied.

It is the City’s practice to consider restricted net position to have been depleted before unrestricted net position is applied.

City of Laguna Hills, California
Notes to Basic Financial Statements
June 30, 2024
54 Governmental Fund Balances Classifications
Fund Balances of the governmental funds are reported separately within classifications based on a hierarchy of constraints placed on the use of those resources. The classifications are based on the relative strength of the constraints that control how the specific amounts can be spent. The classifications are nonspendable, restricted, committed, assigned, and unassigned fund balance.

The nonspendable fund balance classification includes amounts that cannot be spent because they are either not in spendable form or are legally or contractually required to be maintained intact.

Restricted fund balances are those that have externally imposed restrictions on their usage by creditors, such as through debt covenants, grantors, contributors, or laws and regulations.

Committed fund balances are those constrained to specific purposes determined by a formal action (resolution) of the City’s highest level of decision-making authority, the City Council. Commitments may be changed or lifted only by the City taking the same formal action that imposed the constraint originally. The City does not have any committed fund balances at June 30, 2024.

Assigned fund balances include amounts that are constrained by the City’s intent to be used for specific purposes. The City Manager has the authority to assign the portion of the fund balance in the General Fund that are constrained by the City’s intent to be used for reserves as established in the City’s Financial Policy No. 105 Section G.

Unassigned fund balances include the residual balance for the City’s General Fund and includes all spendable amounts not contained in other classifications. In other funds, the unassigned classification is used only to report a deficit balance resulting from overspending for specific purposes for which amounts had been restricted, committed or assigned.

When expenditures are incurred, the City’s applies the most restrictive funds first; and then the City would use the appropriate funds in the following order: committed, assigned, and lastly unassigned amounts.

City of Laguna Hills, California
Notes to Basic Financial Statements
June 30, 2024
55 Fund balances are presented in the following categories: nonspendable, restricted, assigned, and unassigned. A detailed schedule of fund balances at June 30, 2024 is as follows:

Other
General Capital Projects Governmental
Fund Fund Funds Total
Nonspendable:

Prepaid items $ 299,941 $ - $ 963 $ 300,904
Total 299,941 - 963 300,904
Restricted:

Capital projects - - 2,680,606 2,680,606
Public works - - 5,651,483 5,651,483
Community services - - 261,116 261,116
Police services - - 40,571 40,571
Community development - - 33,915 33,915
Debt service - - 1,153,370 1,153,370
Total - - 9,821,061 9,821,061
Assigned:

Claims liability 161,300 - - 161,300
Community Center and
Sports Complex maintenance 189,349 - - 189,349
Parks maintenance 309,213 - - 309,213
Slopes/Storm Drain maintenance 31,770 - - 31,770
Total 691,632 - - 691,632
Unassigned 23,776,892 - - 23,776,892
Total fund balances $ 24,768,465 $ - $ 9,822,024 $ 34,590,489

City of Laguna Hills, California
Notes to Basic Financial Statements
June 30, 2024
56 Note 11 - Joint Venture
Orange County Fire Authority
In January 1995, the City of Laguna Hills entered into a Joint Powers Agreement with the Cities of Buena Park, Cypress, Dana Point, Irvine, Laguna Niguel, Lake Forest, La Palma, Los Alamitos, Mission Viejo, Garden Grove, San Clemente, San Juan Capistrano, Seal Beach, Stanton, Tustin, Villa Park, and Yorba Linda and the County of Orange to create the Orange County Fire Authority (the Authority). Since the creation of the Authority, the Cities of Aliso Viejo, Laguna Woods, Rancho Santa Margarita, Santa Ana, and Westminster have joined the Authority as members eligible for protection services. The purpose of the Authority is to provide for mutual fire protection, prevention and suppression services and related and incidental services including, but not limited to, emergency medical and transport services, as well as providing facilities and personnel for such services. The effective date of formation was March 1, 1995. The Authority’s governing board consists of one representative from each City and two from the County. The operations of the Authority are funded with structural fire fees collected by the County through the property tax roll for the unincorporated area and on behalf of all member Cities except for the Cities of Stanton, Tustin, San Clemente, Buena Park, Garden Grove, Santa Ana, Seal Beach and Westminster.

The County pays all structural fire fees it collects to the Authority. The Cities of Stanton, Tustin, San Clemente, Buena Park, Garden Grove, Santa Ana, Seal Beach and Westminster are considered “cash contract cities” and accordingly make cash contributions based on the Authority’s annual budget. No determination has been made as to each participant’s proportionate share of fund equity as of June 30, 2024. Upon dissolution of the Authority, all surplus money and property of the Authority will be conveyed or distributed to each member in proportion to all funds provided to the Authority by that member or by the County on behalf of that member during its membership.

Complete financial statements may be obtained from the Orange County Fire Authority, 1 Fire Authority Road, Irvine, California 92602.

Note 12 - Related Party Transactions
The City’s enterprise fund consists of owning a piece of commercial real estate and leasing it to various entities.

The total square footage of the building is 51,945. The City is a tenant using approximately 21,033 square feet of the building. The enterprise fund does not charge the City rent. The estimated annual rent for the space occupied by the City would be approximately $549,965.

Note 13 - Commitments and Contingencies
The City is occasionally a defendant in lawsuits which have arisen in the normal course of business. Damages are alleged in some of these actions and their outcome cannot be predicted with certainty. However, in the opinion of the City Attorney, the outcome of these actions will not have a material adverse effect on the financial position of the City.

City of Laguna Hills, California
Notes to Basic Financial Statements
June 30, 2024
57 The City participates in several federal and state grant programs. The programs are subject to examination by the granters and the amount, if any, of expenses which may be disallowed by the granting agency cannot be determined at this time. The City expects such amounts, if any, to be immaterial.

Note 14 - Leases
Governmental Activities/General Fund:

The City has accrued a receivable for five land leases. The remaining receivable for these leases was $603,680 for the year ended June 30, 2024. Deferred inflows related to these leases were $564,939 as of June 30, 2024.

Interest revenue recognized on these leases was $19,229 for the year ended June 30, 2024. Principal receipts of $102,824 were recognized during the fiscal year. The interest rate on the leases is between 2.25% and 3.25%.

Final receipt is expected in fiscal year 2038.

The future receipts on these leases are as follows:

Principal Interest Total
$ 106,028 $ 16,775 $ 122,803
81,923 14,239 96,162
84,728 12,231 96,959
44,319 10,151 54,470
28,711 9,069 37,780
124,250 34,402 158,652
133,721 11,210 144,931
$ 603,680 $ 108,077 $ 711,757
Years Ending June 30,
2030 - 2034
2035 - 2038
2025
2026
2027
2028
2029
Business-Type Activities - Property Leasing:

The City has accrued a receivable for 12 building leases. The remaining receivable for these leases was $1,490,016 for the year ended June 30, 2024. Deferred inflows related to these leases were $1,408,696 as of June 30, 2024. Interest revenue recognized on these leases was $51,820 for the year ended June 30, 2024.

Principal receipts of $399,010 were recognized during the fiscal year. The interest rate on the leases is between

1.25% and 4.71%. Final receipt is expected in fiscal year 2038.

The lease agreement call for payments that are partially variable and therefore were not included in lease receivable or deferred inflow of resources for leases. These variable payments are a result of the underlying lease measured not on a fixed rate, but rather variable due to the underlying payments derived from 1.18% through 5.83 percent of lessee’s share of operating expense. A total of $261,453 was recognized as revenue from these variable payments for the year ended June 30, 2024.

City of Laguna Hills, California
Notes to Basic Financial Statements
June 30, 2024
58 The future receipts on these leases are as follows:

Principal Interest Total
$ 297,383 $ 46,715 $ 344,098
236,813 38,031 274,844
171,108 30,767 201,875
99,434 25,931 125,365
87,840 22,608 110,448
417,289 69,321 486,610
180,149 11,141 191,290
$ 1,490,016 $ 244,514 $ 1,734,530
Years Ending June 30,
2035 - 2038
2025
2026
2027
2028
2030 - 2034
2029

This page intentionally left blank.

Required Supplementary Information

This page intentionally left blank.

59 City of Laguna Hills, California
Schedule of Proportionate Share of the Net Pension Liability Last Ten Fiscal Years
June 30, 2024
Fiscal year ended June 30, 2024 June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 Measurement period June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 Plan's proportion of the
net pension liability 0.04962% 0.04848% 0.03594% 0.04120% 0.03899% 0.03658% 0.03641% 0.03413% 0.02851% 0.03634% Plan's proportionate share of the
net pension liability $ 6,189,773 $ 5,599,726 $ 1,943,651 $ 4,483,185 $ 3,995,763 $ 3,524,547 $ 3,610,550 $ 2,953,536 $ 1,956,617 $ 2,261,011 Plan's covered payroll $ 3,142,833 $ 2,820,234 $ 2,968,115 $ 3,079,318 $ 2,978,329 $ 3,199,277 $ 3,197,331 $ 3,076,464 $ 3,093,576 $ 2,893,989 Plan's proportionate share of the
net pension liability as a percentage
of covered payroll 196.95% 198.56% 65.48% 145.59% 134.16% 110.17% 112.92% 96.00% 63.25% 78.13% Plan's fiduciary net position as a percentage
of the Plan's total pension liability 76.21% 88.29% 88.29% 75.10% 75.26% 75.26% 73.31% 74.06% 78.40% 79.82% Notes to Schedule:

Benefit Changes:

There were no changes in benefits.

Changes in Assumptions:

From fiscal year June 30, 2015 to June 30, 2016:

GASB 68, paragraph 68 states that the long-term expected rate of return should be determined net of pension plan investment expense but without reduction for pension plan administrative expense. The discount rate of 7.50% used for June 30, 2014 measurement date was net of administrative expenses. The discount rate of 7.65% used for the June 30, 2015 measure date is without reduction of pension plan administrative expense.

From fiscal year June 30, 2016 to June 30, 2017:

There were no changes in assumptions.

From fiscal year June 30, 2017 to June 30, 2018:

The discount rate was reduced from 7.65% to 7.15%.

From fiscal year June 30, 2018 to June 30, 2019:

There were no significant changes in assumptions.

From fiscal year June 30, 2019 to June 30, 2020:

There were no changes in assumptions.

From fiscal year June 30, 2020 to June 30, 2021:

There were no changes in assumptions.

From fiscal year June 30, 2021 to June 30, 2022:

There were no changes in assumptions.

From fiscal year June 30, 2022 to June 30, 2023:

The discount rate was reduced from 7.15% to 6.90%.

60 City of Laguna Hills, California
Schedule of Contributions
Last Ten Fiscal Years
June 30, 2024
Fiscal year ended June 30, 2024 June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 Contractually required $ 713,171 $ 674,800 $ 587,229 $ 546,745 $ 488,471 $ 422,127 $ 378,900 $ 346,439 $ 308,768 $ 278,231 contribution (actuarially determined)
Contributions in relation to the
actuarially determined contribution (713,171) (674,800) (587,229) (546,745) (488,471) (422,127) (378,900) (346,439) (308,768) (278,231) Contribution deficiency (excess) $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Covered payroll $ 3,539,497 $ 3,142,833 $ 2,820,234 $ 2,968,115 $ 3,079,318 $ 2,978,329 $ 3,199,277 $ 3,197,331 $ 3,076,464 $ 3,093,576 Contribution as a percentage of
covered payroll 20.15% 21.47% 20.82% 18.42% 15.86% 14.17% 11.84% 10.84% 10.04% 8.99% Notes to Schedule:

Valuation Date 6/30/2022 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014 6/30/2013 6/30/2012 Methods and Assumptions Used to Determine Contribution Rates:

Actuarial cost method Entry age Entry age Entry age Entry age Entry age Entry age Entry age Entry age Entry age Entry age Amortization method (1) (1) (1) (1) (1) (1) (1) (1) (1) (1) Asset valuation method Fair Value Fair Value Fair Value Fair Value Fair Value Fair Value Fair Value Fair Value Fair Value 15 Year Smoothed Fair
Value Method
Inflation 2.30% 2.50% 2.50% 2.50% 2.625% 2.75% 2.75% 2.75% 2.75% 2.75% Salary increases (2) (2) (2) (2) (2) (2) (2) (2) (2) (2) Investment rate of return 7.00 (3) 7.00 (3) 7.15 (3) 7.15 (3) 7.25 (3) 7.375% (3) 7.50% (3) 7.50% (3) 7.50% (3) 7.50% (3) Retirement age (4) (4) (4) (4) (4) (4) (4) (4) (4) (4)
Mortality (5) (5) (5) (5) (5) (5) (5) (5) (5) (5)
(1) Level percentage of payroll, closed
(2) Depending on age, service, and type of employment
(3) Net of pension plan investment expense, including inflation (4) 50 years (2%@60), 52 years (2%@62)**
(5) Mortality assumptions are based on mortality rates resulting from the most recent CalPERS Experience Study adopted by the CalPERS Board

See Note to Required Supplementary Information 61
City of Laguna Hills, California
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual – General Fund
Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive/
Original Final Amounts (Negative)
Revenues:

Taxes $ 22,505,405 $ 22,505,405 $ 22,281,493 $ (223,912) Licenses and permits 1,227,500 1,227,500 1,057,587 (169,913) Intergovernmental 85,000 85,000 603,264 518,264
Charges for services 2,334,133 2,334,133 2,399,609 65,476 Fines and forfeitures 190,000 190,000 244,299 54,299
Investment income 410,000 410,000 1,192,672 782,672
Other revenues 200,000 200,000 268,437 68,437
Total revenues 26,952,038 26,952,038 28,047,361 1,095,323 Expenditures:

Current:

General government 4,656,299 4,784,254 3,973,134 811,120 Public works 5,428,217 5,314,460 4,980,284 334,176
Community development 1,594,330 1,982,206 1,574,068 408,138 Community services 2,349,082 2,349,082 2,447,330 (98,248) Public safety 12,108,478 12,108,478 10,968,679 1,139,799 Capital outlay 352,700 422,700 254,585 168,115
Debt service:

Principal retirement 90,000 90,000 91,739 (1,739)
Total expenditures 26,579,106 27,051,180 24,289,819 2,761,361 Excess (Deficiency) of Revenues
Over (Under) Expenditures 372,932 (99,142) 3,757,542 3,856,684 Other Financing Sources (Uses):

Transfers in 4,612,771 151,000 151,000 -
Transfers out (4,828,542) (1,938,297) (805,724) 1,132,573 Total other financing
sources (uses) (215,771) (1,787,297) (654,724) 1,132,573 Net Change in Fund Balance 157,161 (1,886,439) 3,102,818 4,989,257 Fund Balance at Beginning of the Year 21,665,647 21,665,647 21,665,647 - Fund Balance at End of the Year $ 21,822,808 $ 19,779,208 $ 24,768,465 $ 4,989,257 Budget Amounts

62 City of Laguna Hills, California
Note to Required Supplementary Information
Year Ended June 30, 2024
Note 1 - Budgets and Budgetary Accounting
Budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America and are used as a management control device. The City Council approves the two-year budget submitted by the City Manager prior to the beginning of the new two-year budget cycle. The Council conducts public hearings prior to its adoption. All remaining appropriations in the Operating Budget will be carried over from the first year to the second year of the two-year budget period. The City Council has the legal authority to amend the budget at any time during the fiscal year. The City Manager has the authority to transfer budgeted amounts between funds and divisions as deemed necessary to meet the City’s needs within the overall legal limit established by the City Council. The City maintains budgetary controls to ensure compliance with legal provisions embodied in the appropriated budget approved by the City Council. The level of budgetary control is total expenditures by fund. Formal budgetary integration is employed as a management control device during the fiscal year for the governmental fund types.

Biennial budgets are adopted for all governmental funds except for certain special revenue funds and capital projects funds, which adopt project length budgets.

The following funds had expenditures in excess of appropriations for the year ended June 30, 2024:

Variance
Positive
Appropriations Expenditures (Negative)
Non-major Governmental
Special Revenue Funds:

CR&R Recycling Fee $ 185,300 $ 270,949 $ (85,649)

Supplementary Information

This page intentionally left blank.

63 City of Laguna Hills, California
Non-Major Governmental Funds
June 30, 2024
Special Revenue Funds:

Gas Tax Fund - Used to account for revenues and expenditures for general street improvement maintenance related to the City’s share of state gasoline taxes collected under Street and Highway Code, Sections 2103, 2105, 2106, 2107 and 2107.5.

Measure M2 Fund - Used to account for Measure M2 revenues from the Orange County Transportation Authority (OCTA) to be used for street improvement and transportation system maintenance.

SB1 RMRA Fund - Used to account for revenues received from the State SB1 taxes. Expenditures are restricted to basic road maintenance, rehabilitation, and critical safety projects.

AB 2766 Fund - Used to account for revenues and expenditures for air quality improvement. AB 2766 was enacted to authorize air pollution control districts to impose fees on motor vehicles.

Senior Mobility Program Fund - Used to account for revenues and expenditures related to help design and operate a transit program that best fits the needs of older adults under the OCTA Senior Mobility Program.

CARITS Fund - Used to account for revenues and expenditures related to the cooperative agreement with the County of Orange for Coastal Area Road Improvement and Traffic Signals (CARITS) fee program.

Public Art Fund - Used to account for revenues and expenditures related to the City’s Public Art program designed to enhance the cultural and aesthetic environment and to encourage creativity, education and appreciation of the arts.

Beverage Recycling Fund - Used to account for revenues and expenditures related to grant funding received from the California State Department of Conservation for the purpose of implementing and supporting beverage container recycling programs within the City.

CR&R Recycling Fee Fund - Used to account for contractual revenues received from the City’s franchised hauler, CR&R, for the purposes of recycling consulting services and general recycling activity expenditures.

C & D Forfeited Deposits Fund - Used to account for Construction and Demolition Waste Recycling Program security deposits, which have been forfeited by the applicant, used for administration costs of the program, or on programs to divert the waste from construction, demolition and alteration projects from landfill disposal, or other recycling programs.

SB 1383 Grant Fund – Used to account for a one-time grant program meant to provide aid in the implementation of regulations adopted by CalRecycle pursuant to Chapter 395, Statutes of 2016 and SB170 Budget Act of 2021.

Park In-Lieu Fund - Used to account for revenues received and expenditures made related to park fees. The Quimby Act authorizes the City to require residential subdivisions to dedicate land for parks or pay fees in-lieu of dedication.

64 City of Laguna Hills, California
Non-Major Governmental Funds
June 30, 2024
CASp Fund - (Certified Access Specialist Program) Used to account for revenues and expenditures related to Senate Bill 1186 funds that are to be used for disability access and compliance with construction-related accessibility requirements.

Water Conservation Fund - Used to account for revenues and expenditures related to water use efficiency and conservation programs.

Public Art VALH MGP Fund - Used to account for revenues received and expenditures made related to the City's public art program designed to enhance the cultural and aesthetic environment and to encourage creativity, education and appreciation of the arts.

State COPS/SLESF Fund - Used to account for revenues received and expenditures made for front line law enforcement services related to the allocations received through the State Supplemental Law Enforcement Services Fund COPS/(SLESF) program.

Debt Service Fund:

Debt Service Fund - Used to pay the City’s debt service on its COP issue.

65 City of Laguna Hills, California
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2024
SB1
Gas Tax Measure M2 RMRA
Assets:

Cash and investments $ 1,379,821 $ - $ 1,429,191
Receivables:

Accounts - - -
Interest - - -
Prepaid items - - -
Due from other governments 74,637 325,141 141,179
Restricted cash and investments - - -
Total assets $ 1,454,458 $ 325,141 $ 1,570,370
Liabilities, Deferred Inflows of Resources,
and Fund Balances
Liabilities:

Accounts payable $ - $ 18,559 $ 85,343
Accrued liabilities 86,414 - -
Due to other funds - 67,915 -
Total liabilities 86,414 86,474 85,343
Deferred Inflows of Resources:

Unavailable revenues - - -
Total deferred inflows of resources - - -
Fund Balances:

Nonspendable - - -
Restricted 1,368,044 238,667 1,485,027
Total fund balances 1,368,044 238,667 1,485,027
Total liabilities, deferred inflows
of resources, and fund balances $ 1,454,458 $ 325,141 $ 1,570,370 (Continued)
Special Revenue Funds

66 City of Laguna Hills, California
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2024
Assets:

Cash and investments
Receivables:

Accounts
Interest
Prepaid items
Due from other governments
Restricted cash and investments
Total assets
Liabilities, Deferred Inflows of Resources,
and Fund Balances
Liabilities:

Accounts payable
Accrued liabilities
Due to other funds
Total liabilities
Deferred Inflows of Resources:

Unavailable revenues
Total deferred inflows of resources
Fund Balances:

Nonspendable
Restricted
Total fund balances
Total liabilities, deferred inflows
of resources, and fund balances
Senior
Mobility
AB 2766 Program CARITS
$ 176,926 $ 254,264 $ 1,377,010
- - -
- - -
- - -
10,270 8,131 -
- - -
$ 187,196 $ 262,395 $ 1,377,010
$ 14,928 $ 1,279 $ -
- -
- - -
14,928 1,279 -
10,270 - -
10,270 - -
- - -
161,998 261,116 1,377,010
161,998 261,116 1,377,010
$ 187,196 $ 262,395 $ 1,377,010
(Continued)
Special Revenue Funds

67 City of Laguna Hills, California
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2024
Assets:

Cash and investments
Receivables:

Accounts
Interest
Prepaid items
Due from other governments
Restricted cash and investments
Total assets
Liabilities, Deferred Inflows of Resources,
and Fund Balances
Liabilities:

Accounts payable
Accrued liabilities
Due to other funds
Total liabilities
Deferred Inflows of Resources:

Unavailable revenues
Total deferred inflows of resources
Fund Balances:

Nonspendable
Restricted
Total fund balances
Total liabilities, deferred inflows
of resources, and fund balances
CR&R
Public Beverage Recycling
Art Recycling Fee
$ 207,539 $ 5,805 $ 37,542
- - 241,447
- - -
- - -
- - -
- - -
$ 207,539 $ 5,805 $ 278,989
$ - $ - $ 41,648
- -
- - -
- - 41,648
- - -
- - -
- - -
207,539 5,805 237,341
207,539 5,805 237,341
$ 207,539 $ 5,805 $ 278,989
(Continued)
Special Revenue Funds

68 City of Laguna Hills, California
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2024
Assets:

Cash and investments
Receivables:

Accounts
Interest
Prepaid items
Due from other governments
Restricted cash and investments
Total assets
Liabilities, Deferred Inflows of Resources,
and Fund Balances
Liabilities:

Accounts payable
Accrued liabilities
Due to other funds
Total liabilities
Deferred Inflows of Resources:

Unavailable revenues
Total deferred inflows of resources
Fund Balances:

Nonspendable
Restricted
Total fund balances
Total liabilities, deferred inflows
of resources, and fund balances
C & D
Forfeited SB 1383
Deposits Grant Park In-Lieu
$ 319,409 $ 87,890 $ 2,159,848
- - -
- - -
- - -
- - -
- - -
$ 319,409 $ 87,890 $ 2,159,848
$ 704 $ - $ 48,944
-
- - -
704 - 48,944
- - -
- - -
- - -
318,705 87,890 2,110,904
318,705 87,890 2,110,904
$ 319,409 $ 87,890 $ 2,159,848
(Continued)
Special Revenue Funds

69 City of Laguna Hills, California
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2024
Assets:

Cash and investments
Receivables:

Accounts
Interest
Prepaid items
Due from other governments
Restricted cash and investments
Total assets
Liabilities, Deferred Inflows of Resources,
and Fund Balances
Liabilities:

Accounts payable
Accrued liabilities
Due to other funds
Total liabilities
Deferred Inflows of Resources:

Unavailable revenues
Total deferred inflows of resources
Fund Balances:

Nonspendable
Restricted
Total fund balances
Total liabilities, deferred inflows
of resources, and fund balances
Water Public Art
CASp Conservation VALH MGP
$ 32,458 $ 370,996 $ 362,163
- - -
- - -
- - -
- - -
- - -
$ 32,458 $ 370,996 $ 362,163
$ (1,457) $ - $ -
- - -
- - -
(1,457) - -
- - -
- - -
- - -
33,915 370,996 362,163
33,915 370,996 362,163
$ 32,458 $ 370,996 $ 362,163
(Continued)
Special Revenue Funds

70 City of Laguna Hills, California
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2024
Assets:

Cash and investments
Receivables:

Accounts
Interest
Prepaid items
Due from other governments
Restricted cash and investments
Total assets
Liabilities, Deferred Inflows of Resources,
and Fund Balances
Liabilities:

Accounts payable
Accrued liabilities
Due to other funds
Total liabilities
Deferred Inflows of Resources:

Unavailable revenues
Total deferred inflows of resources
Fund Balances:

Nonspendable
Restricted
Total fund balances
Total liabilities, deferred inflows
of resources, and fund balances
Special
Revenue Fund Total
Non-Major
State COPS/ Governmental
SLESF Debt Service Funds
$ 40,571 $ - $ 8,241,433
- - 241,447
- 4,648 4,648
- 963 963
94,663 - 654,021
- 1,148,722 1,148,722
$ 135,234 $ 1,154,333 $ 10,291,234
$ - $ - $ 209,948
- - 86,414
- - 67,915
- - 364,277
94,663 - 104,933
94,663 - 104,933
- 963 963
40,571 1,153,370 9,821,061
40,571 1,154,333 9,822,024
$ 135,234 $ 1,154,333 $ 10,291,234

71 City of Laguna Hills, California
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Non-Major Governmental Funds
Year Ended June 30, 2024
SB1
Gas Tax Measure M2 RMRA
Revenues:

Licenses and permits $ - $ - $ -
Intergovernmental 865,844 985,455 810,078
Investment income 66,482 - 52,737
Other revenues - - -
Total revenues 932,326 985,455 862,815
Expenditures:

Current:

Public works - 708,079 -
Community development - - -
Community services - - -
Capital outlay - - -
Debt service:

Principal retirement - - -
Interest and fiscal charges - - -
Total expenditures - 708,079 -
Excess (deficiency) of revenues
over (under) expenditures 932,326 277,376 862,815
Other Financing Sources (Uses):

Transfers in - - -
Transfers out (486,275) (200,000) (85,343)
Total other financing sources (uses) (486,275) (200,000) (85,343) Net Change in Fund Balances 446,051 77,376 777,472
Fund Balances, Beginning of Year 921,993 161,291 707,555 Fund Balances, End of Year $ 1,368,044 $ 238,667 $ 1,485,027 (Continued)
Special Revenue Funds

72 City of Laguna Hills, California
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Non-Major Governmental Funds
Year Ended June 30, 2024
Revenues:

Licenses and permits
Intergovernmental
Investment income
Other revenues
Total revenues
Expenditures:

Current:

Public works
Community development
Community services
Capital outlay
Debt service:

Principal retirement
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other Financing Sources (Uses):

Transfers in
Transfers out
Total other financing sources (uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Fund Balances, End of Year
Senior
Mobility
AB 2766 Program CARITS
$ - $ - $ -
30,790 51,038 -
7,922 11,840 67,749
- - -
38,712 62,878 67,749
- - -
- - -
- 20,263 -
71,609 - -
- - -
- - -
71,609 20,263 -
(32,897) 42,615 67,749
- 4,052 -
- - (1,456)
- 4,052 (1,456)
(32,897) 46,667 66,293
194,895 214,449 1,310,717
$ 161,998 $ 261,116 $ 1,377,010
(Continued)
Special Revenue Funds

73 City of Laguna Hills, California
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Non-Major Governmental Funds
Year Ended June 30, 2024
Revenues:

Licenses and permits
Intergovernmental
Investment income
Other revenues
Total revenues
Expenditures:

Current:

Public works
Community development
Community services
Capital outlay
Debt service:

Principal retirement
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other Financing Sources (Uses):

Transfers in
Transfers out
Total other financing sources (uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Fund Balances, End of Year
CR&R
Public Beverage Recycling
Art Recycling Fee
$ - $ - $ -
- - -
10,205 410 9,109
- - 391,448
10,205 410 400,557
- - 270,949
- - -
- - -
- 3,383 -
- - -
- - -
- 3,383 270,949
10,205 (2,973) 129,608
- - -
- - -
- - -
10,205 (2,973) 129,608
197,334 8,778 107,733
$ 207,539 $ 5,805 $ 237,341
(Continued)
Special Revenue Funds

74 City of Laguna Hills, California
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Non-Major Governmental Funds
Year Ended June 30, 2024
Revenues:

Licenses and permits
Intergovernmental
Investment income
Other revenues
Total revenues
Expenditures:

Current:

Public works
Community development
Community services
Capital outlay
Debt service:

Principal retirement
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other Financing Sources (Uses):

Transfers in
Transfers out
Total other financing sources (uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Fund Balances, End of Year
C & D
Forfeited SB 1383
Deposits Grant Park In-Lieu
$ 300,601 $ - $ -
- 87,140 -
4,552 750 106,208
- - -
305,153 87,890 106,208
20,043 1,028 -
- - -
- - -
- - -
- - -
- - -
20,043 1,028 -
285,110 86,862 106,208
- - -
- - (48,944)
- - (48,944)
285,110 86,862 57,264
33,595 1,028 2,053,640
$ 318,705 $ 87,890 $ 2,110,904
(Continued)
Special Revenue Funds

75 City of Laguna Hills, California
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Non-Major Governmental Funds
Year Ended June 30, 2024
Revenues:

Licenses and permits
Intergovernmental
Investment income
Other revenues
Total revenues
Expenditures:

Current:

Public works
Community development
Community services
Capital outlay
Debt service:

Principal retirement
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other Financing Sources (Uses):

Transfers in
Transfers out
Total other financing sources (uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Fund Balances, End of Year
Water Public Art
CASp Conservation VALH MGP
$ 3,371 $ - $ -
- - -
1,585 18,243 17,809
- - -
4,956 18,243 17,809
- - -
2,499 - -
- - -
- - -
- - -
- - -
2,499 - -
2,457 18,243 17,809
- - -
- - -
- - -
2,457 18,243 17,809
31,458 352,753 344,354
$ 33,915 $ 370,996 $ 362,163
(Continued)
Special Revenue Funds

76 City of Laguna Hills, California
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Non-Major Governmental Funds
Year Ended June 30, 2024
Revenues:

Licenses and permits
Intergovernmental
Investment income
Other revenues
Total revenues
Expenditures:

Current:

Public works
Community development
Community services
Capital outlay
Debt service:

Principal retirement
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other Financing Sources (Uses):

Transfers in
Transfers out
Total other financing sources (uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Fund Balances, End of Year
Special
Revenue Funds Total
Non-Major
State COPS/ Governmental
SLESF Debt Service Funds
$ - $ - $ 303,972
100,000 - 2,930,345
3,312 66,118 445,031
- - 391,448
103,312 66,118 4,070,796
- - 1,000,099
- - 2,499
- - 20,263
- - 74,992
- 355,000 355,000
- 31,759 31,759
- 386,759 1,484,612
103,312 (320,641) 2,586,184
- 2,141 6,193
(151,000) - (973,018)
(151,000) 2,141 (966,825)
(47,688) (318,500) 1,619,359
88,259 1,472,833 8,202,665
$ 40,571 $ 1,154,333 $ 9,822,024

77 City of Laguna Hills, California
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual Capital Projects Fund – Major Fund
Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive/
Original Final Amounts (Negative)
Expenditures:

Capital outlay $ 4,786,771 $ 8,717,812 $ 1,492,424 $ 7,225,388 Excess (Deficiency) of Revenues
Over (Under) Expenditures (4,786,771) (8,717,812) (1,492,424) 7,225,388 Other Financing Sources (Uses):

Transfers in 4,786,771 8,717,812 1,492,424 (7,225,388)
Net Change in Fund Balance - - - -
Fund Balance at Beginning of the Year - - - -
Fund Balance at End of the Year $ - $ - $ - $ -
Budget Amounts

78 City of Laguna Hills, California
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual Gas Tax Special Revenue Fund
Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive/
Original Final Amounts (Negative)
Revenues:

Intergovernmental $ 836,000 $ 836,000 $ 865,844 $ 29,844 Investment income 10,000 10,000 66,482 56,482
Total revenues 846,000 846,000 932,326 86,326
Excess (Deficiency) of Revenues
Over (Under) Expenditures 846,000 846,000 932,326 86,326 Other Financing Sources (Uses):

Transfers out (1,650,000) (1,799,657) (486,275) 1,313,382 Net Change in Fund Balance (804,000) (953,657) 446,051 1,399,708 Fund Balance at Beginning of the Year 921,993 921,993 921,993 - Fund Balance at End of the Year $ 117,993 $ (31,664) $ 1,368,044 $ 1,399,708 Budget Amounts

79 City of Laguna Hills, California
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual Measure M2 Special Revenue Fund
Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive/
Original Final Amounts (Negative)
Revenues:

Intergovernmental $ 940,000 $ 1,140,000 $ 985,455 $ (154,545) Investment income 3,000 3,000 - (3,000)
Total revenues 943,000 1,143,000 985,455 (157,545)
Expenditures:

Current:

Public works 740,000 740,000 708,079 31,921
Excess (Deficiency) of Revenues
Over (Under) Expenditures 203,000 403,000 277,376 (125,624) Other Financing Sources (Uses):

Transfers out (200,000) (400,000) (200,000) 200,000
Net Change in Fund Balance 3,000 3,000 77,376 74,376
Fund Balances, Beginning of Year 161,291 161,291 161,291 - Fund Balance at End of the Year $ 164,291 $ 164,291 $ 238,667 $ 74,376 Budget Amounts

80 City of Laguna Hills, California
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual SB1 RMRA Special Revenue Fund
Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive/
Original Final Amounts (Negative)
Revenues:

Intergovernmental $ 740,000 $ 740,000 $ 810,078 $ 70,078 Investment income 5,000 5,000 52,737 47,737
Total revenues 745,000 745,000 862,815 117,815
Excess (Deficiency) of Revenues
Over (Under) Expenditures 745,000 745,000 862,815 117,815 Other Financing Sources (Uses):

Transfers out (1,300,000) (1,385,343) (85,343) 1,300,000 Net Change in Fund Balance (555,000) (640,343) 777,472 1,417,815 Fund Balance at Beginning of the Year 707,555 707,555 707,555 - Fund Balance at End of the Year $ 152,555 $ 67,212 $ 1,485,027 $ 1,417,815 Budget Amounts

81 City of Laguna Hills, California
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual AB 2766 Special Revenue Fund
Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive/
Original Final Amounts (Negative)
Revenues:

Intergovernmental $ 40,000 $ 40,000 $ 30,790 $ (9,210)
Investment income 1,000 1,000 7,922 6,922
Total revenues 41,000 41,000 38,712 (2,288)
Expenditures:

Capital outlay - 72,181 71,609 572
Net Change in Fund Balance 41,000 (31,181) (32,897) (1,716) Fund Balance at Beginning of the Year 194,895 194,895 194,895 - Fund Balance at End of the Year $ 235,895 $ 163,714 $ 161,998 $ (1,716) Budget Amounts

82 City of Laguna Hills, California
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual Senior Mobility Program Special Revenue Fund
Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive/
Original Final Amounts (Negative)
Revenues:

Intergovernmental $ 53,590 $ 53,590 $ 51,038 $ (2,552)
Investment income 1,000 1,000 11,840 10,840
Total revenues 54,590 54,590 62,878 8,288
Expenditures:

Current:

Community services 49,900 49,900 20,263 29,637
Capital outlay 1,500 1,500 - 1,500
Total expenditures 51,400 51,400 20,263 31,137
Excess (Deficiency) of Revenues
Over (Under) Expenditures 3,190 3,190 42,615 39,425
Other Financing Sources (Uses):

Transfers in 10,000 10,000 4,052 (5,948)
Net Change in Fund Balance 13,190 13,190 46,667 33,477
Fund Balance at Beginning of the Year 214,449 214,449 214,449 - Fund Balance at End of the Year $ 227,639 $ 227,639 $ 261,116 $ 33,477 Budget Amounts

83 City of Laguna Hills, California
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual CARITS Special Revenue Fund
Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive/
Original Final Amounts (Negative)
Revenues:

Investment income $ 5,000 $ 5,000 $ 67,749 $ 62,749
Other Financing Sources (Uses):

Transfers out (1,280,000) (1,280,000) (1,456) 1,278,544 Net Change in Fund Balance (1,275,000) (1,275,000) 66,293 1,341,293 Fund Balance at Beginning of the Year 1,310,717 1,310,717 1,310,717 - Fund Balance at End of the Year $ 35,717 $ 35,717 $ 1,377,010 $ 1,341,293 Budget Amounts

84 City of Laguna Hills, California
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual Public Art Special Revenue Fund
Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive/
Original Final Amounts (Negative)
Revenues:

Investment income $ 1,700 $ 1,700 $ 10,205 $ 8,505
Excess (Deficiency) of Revenues
Over (Under) Expenditures 1,700 1,700 10,205 143,505
Net Change in Fund Balance 1,700 1,700 10,205 143,505
Fund Balance at Beginning of the Year 197,334 197,334 197,334 - Fund Balance at End of the Year $ 199,034 $ 199,034 $ 207,539 $ 143,505 Budget Amounts

85 City of Laguna Hills, California
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual Beverage Recycling Special Revenue Fund
Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive/
Original Final Amounts (Negative)
Revenues:

Intergovernmental $ 9,000 $ 9,000 $ - $ (9,000)
Investment income 100 100 410 310
Total revenues 9,100 9,100 410 (8,690)
Expenditures:

Current:

Public works 4,000 4,000 - 4,000
Capital outlay 21,324 21,324 3,383 17,941
Total expenditures 25,324 25,324 3,383 21,941
Net Change in Fund Balance (16,224) (16,224) (2,973) 13,251 Fund Balance at Beginning of the Year 8,778 8,778 8,778 - Fund Balance at End of the Year $ (7,446) $ (7,446) $ 5,805 $ 13,251 Budget Amounts

86 City of Laguna Hills, California
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual CR&R Recycling Fee Special Revenue Fund
Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive/
Original Final Amounts (Negative)
Revenues:

Investment income $ 300 $ 300 $ 9,109 $ 8,809
Other revenue 150,000 150,000 391,448 241,448
Total revenues 150,300 150,300 400,557 250,257
Expenditures:

Current:

Public works 185,300 185,300 270,949 (85,649)
Net Change in Fund Balance (35,000) (35,000) 129,608 164,608 Fund Balance at Beginning of the Year 107,733 107,733 107,733 - Fund Balance at End of the Year $ 72,733 $ 72,733 $ 237,341 $ 164,608 Budget Amounts

87 City of Laguna Hills, California
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual C & D Forfeited Deposits Special Revenue Fund
Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive/
Original Final Amounts (Negative)
Revenues:

Licenses and permits $ 100,000 $ 100,000 $ 300,601 $ 200,601 Investment income 200 200 4,552 4,352
Total revenues 100,200 100,200 305,153 204,953
Expenditures:

Current:

Public works 100,000 100,000 20,043 79,957
Net Change in Fund Balance 200 200 285,110 284,910
Fund Balance at Beginning of the Year 33,595 33,595 33,595 - Fund Balance at End of the Year $ 33,795 $ 33,795 $ 318,705 $ 284,910 Budget Amounts

88 City of Laguna Hills, California
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual SB 1383 Grant Special Revenue Fund
Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive/
Original Final Amounts (Negative)
Revenues:

Intergovernmental $ - $ - $ 87,140 $ 87,140
Investment income - - 750 750
Total revenues - - 87,890 87,890
Expenditures:

Current:

Public works 24,972 24,972 1,028 23,944
Net Change in Fund Balance (24,972) (24,972) 86,862 111,834 Fund Balance at Beginning of the Year 1,028 1,028 1,028 - Fund Balance at End of the Year $ (23,944) $ (23,944) $ 87,890 $ 111,834 Budget Amounts

89 City of Laguna Hills, California
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual Park In-Lieu Special Revenue Fund
Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive/
Original Final Amounts (Negative)
Revenues:

Investment income $ 20,000 $ 20,000 $ 106,208 $ 86,208
Excess (Deficiency) of Revenues
Over (Under) Expenditures 20,000 20,000 106,208 86,208
Other Financing Sources (Uses):

Transfers out - (2,053,640) (48,944) 2,004,696
Total other financing
sources (uses) - (2,053,640) (48,944) 2,004,696
Net Change in Fund Balance 20,000 (2,033,640) 57,264 2,090,904 Fund Balance at Beginning of the Year 2,053,640 2,053,640 2,053,640 - Fund Balance at End of the Year $ 2,073,640 $ 20,000 $ 2,110,904 $ 2,090,904 Budget Amounts

90 City of Laguna Hills, California
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual CASp Special Revenue Fund
Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive/
Original Final Amounts (Negative)
Revenues:

Licenses and permits $ 5,000 $ 5,000 $ 3,371 $ (1,629)
Investment income 150 150 1,585 1,435
Total revenues 5,150 5,150 4,956 (194)
Expenditures:

Community development 5,000 5,000 2,499 2,501
Excess (Deficiency) of Revenues
Over (Under) Expenditures 150 150 2,457 2,307
Net Change in Fund Balance 150 150 2,457 2,307
Fund Balance at Beginning of the Year 31,458 31,458 31,458 - Fund Balance at End of the Year $ 31,608 $ 31,608 $ 33,915 $ 2,307 Budget Amounts

91 City of Laguna Hills, California
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual Water Conservation Special Revenue Fund
Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive/
Original Final Amounts (Negative)
Revenues:

Investment income $ 3,460 $ 3,460 $ 18,243 $ 14,783
Excess (Deficiency) of Revenues
Over (Under) Expenditures 3,460 3,460 18,243 14,783
Net Change in Fund Balance 3,460 3,460 18,243 14,783
Fund Balance at Beginning of the Year 352,753 352,753 352,753 - Fund Balance at End of the Year $ 356,213 $ 356,213 $ 370,996 $ 14,783 Budget Amounts

92 City of Laguna Hills, California
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual Public Art VALH MGP Special Revenue Fund
Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive/
Original Final Amounts (Negative)
Revenues:

Investment income $ 6,000 $ 6,000 $ 17,809 $ 11,809
Excess (Deficiency) of Revenues
Over (Under) Expenditures 6,000 6,000 17,809 11,809
Net Change in Fund Balance 6,000 6,000 17,809 11,809
Fund Balance at Beginning of the Year 344,354 344,354 344,354 - Fund Balance at End of the Year $ 350,354 $ 350,354 $ 362,163 $ 11,809 Budget Amounts

93 City of Laguna Hills, California
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual State COPS/SLESF Special Revenue Fund
Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive/
Original Final Amounts (Negative)
Revenues:

Intergovernmental $ 150,000 $ 150,000 $ 100,000 $ (50,000) Investment income 1,000 1,000 3,312 2,312
Total revenues 151,000 151,000 103,312 (47,688)
Excess (Deficiency) of Revenues
Over (Under) Expenditures 151,000 151,000 103,312 (47,688) Other Financing Sources (Uses):

Transfers out (151,000) (151,000) (151,000) -
Net Change in Fund Balance - - (47,688) (47,688)
Fund Balance at Beginning of the Year 88,259 88,259 88,259 - Fund Balance at End of the Year $ 88,259 $ 88,259 $ 40,571 $ (47,688) Budget Amounts

94 City of Laguna Hills, California
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual Debt Service Fund
Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive/
Original Final Amounts (Negative)
Revenues:

Investment income $ 10,000 $ 10,000 $ 66,118 $ 56,118
Expenditures:

Debt service:

Interest and fiscal charges 32,622 32,622 31,759 863
Principal retirement 355,000 355,000 355,000 -
Total expenditures 387,622 387,622 386,759 863
Excess (Deficiency) of Revenues
Over (Under) Expenditures (377,622) (377,622) (320,641) 56,981 Other Financing Sources (Uses):

Transfers in - - 2,141 2,141
Net Change in Fund Balance (377,622) (377,622) (318,500) 59,122 Fund Balance at Beginning of the Year 1,472,833 1,472,833 1,472,833 - Fund Balance at End of the Year $ 1,095,211 $ 1,095,211 $ 1,154,333 $ 59,122 Budget Amounts

Statistical Section

This page intentionally left blank.

95 City of Laguna Hills, California
Statistical Section
Year Ended June 30, 2024
This part of the City of Laguna Hills’s annual comprehensive financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City's overall financial health.

Contents
Financial Trends
These schedules contain trend information to help the reader understand how the City's financial performance and well-being have changed over time.

Revenue Capacity
These schedules contain information to help the reader assess the factors affecting the City's ability to generate its property and sales taxes.

Debt Capacity
These schedules present information to help the reader assess the affordability of the City's current levels of outstanding debt and the City's ability to issue additional debt in the future.

Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place.

Operating Information
These schedules contain information about the City's operations and resources to help the reader understand how the City's financial information relates to the services the City provides and the activities it performs.

Sources: Unless otherwise noted, the information in these schedules is derived from the annual comprehensive financial reports for the relevant year.

This page intentionally left blank.

2015 2016 2017 2018 2019
Governmental activities
Net Investment in capital assets $ 84,623,408 $ 83,320,937 $ 82,980,468 $ 81,972,798 $ 79,706,238 Restricted 5,240,670 2,470,305 2,394,252 2,155,589 3,462,431 Unrestricted 1,789,992 4,916,994 3,315,387 2,956,001 4,583,713 Total government activities net position $ 91,654,070 $ 90,708,236 $ 88,690,107 $ 87,084,388 $ 87,752,382 Business-type activities
Net Investment in capital assets $ 9,324,493 $ 8,998,114 $ 8,343,488 $ 7,635,240 $ 6,964,651 Restricted - - - - -
Unrestricted (36,397) 68,288 117,338 236,196 227,320
Total business-type activities net position $ 9,288,096 $ 9,066,402 $ 8,460,826 $ 7,871,436 $ 7,191,971 Primary government
Net Investment in capital assets $ 93,947,901 $ 92,319,051 $ 91,323,956 $ 89,608,038 $ 86,670,889 Restricted 5,240,670 2,470,305 2,394,252 2,155,589 3,462,431 Unrestricted 1,753,595 4,985,282 3,432,725 3,192,197 4,811,033 Total primary government net position $ 100,942,166 $ 99,774,638 $ 97,150,933 $ 94,955,824 $ 94,944,353 Fiscal Year Ending
City of Laguna Hills
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
96

2020 2021 2022 2023 2024
Governmental activities
Net Investment in capital assets $ 80,312,979 $ 78,878,248 $ 79,981,695 $ 76,838,788 $ 75,262,629 Restricted 2,538,747 3,894,336 4,226,804 8,202,665 9,821,061 Unrestricted 4,177,487 4,089,857 8,289,453 17,861,468 20,657,625 Total government activities net position $ 87,029,213 $ 86,862,441 $ 92,497,952 $ 102,902,921 $ 105,741,315 Business-type activities
Net Investment in capital assets $ 6,311,356 $ 5,577,506 $ 5,556,210 $ 4,988,423 $ 4,602,531 Restricted - - - - -
Unrestricted 178,595 218,820 212,173 217,172 193,562
Total business-type activities net position $ 6,489,951 $ 5,796,326 $ 5,768,383 $ 5,205,595 $ 4,796,093 Primary government
Net Investment in capital assets $ 86,624,335 $ 84,455,754 $ 85,537,905 $ 81,827,211 $ 79,865,160 Restricted 2,538,747 3,894,336 4,226,804 8,202,665 9,821,061 Unrestricted 4,356,082 4,308,677 8,501,626 18,078,640 20,851,187 Total primary government net position $ 93,519,164 $ 92,658,767 $ 98,266,335 $ 108,108,516 $ 110,537,408 City of Laguna Hills
Fiscal Year Ending
Net Position by Component (Continued)
Last Ten Fiscal Years
(accrual basis of accounting)
97

2015 2016 2017 2018 2019
Expenses
Governmental activities:

General government $ 3,088,372 $ 3,112,783 $ 4,226,233 $ 4,104,012 $ 3,467,852 Public works 6,332,724 6,802,499 7,234,921 6,841,288 6,433,542 Community development 1,434,213 1,309,210 1,462,611 1,287,931 1,385,455 Community services 4,660,667 4,141,792 4,131,886 4,161,070 4,079,412 Public safety 7,162,514 6,929,025 8,167,361 8,032,660 8,251,937 Interest expense 479,589 431,264 376,993 323,513 267,582 Total governmental activities expenses 23,158,079 22,726,573 25,600,005 24,750,474 23,885,780 Business-type activities:

Property leasing 1,204,437 1,222,043 1,255,765 1,247,849 1,273,554 Total business-type activities expenses 1,204,437 1,222,043 1,255,765 1,247,849 1,273,554 Total primary government expenses $ 24,362,516 $ 23,948,616 $ 26,855,770 $ 25,998,323 $ 25,159,334 Program Revenues
Governmental activities:

Charges for Services:

General government $ - $ - $ - $ - $ -
Public works 136,037 205,446 196,054 189,662 253,438
Community development 1,050,127 881,286 894,150 988,719 1,010,326 Community services 775,330 780,519 756,089 821,388 777,605 Public safety 300,032 267,555 228,649 208,461 219,727
Operating Contributions 2,989,299 1,960,392 2,131,220 1,876,109 2,516,513 Capital Contributions 2,264,558 60,850 716,200 - -
7,515,383 4,156,048 4,922,362 4,084,339 4,777,609
Business-type activities:

Charges for Services:

Property leasing 500,202 579,313 650,147 658,396 594,026 Operating grants and contributions - - - - -
Capital grants and contributions - - - - -
500,202 579,313 650,147 658,396 594,026
$ 8,015,585 $ 4,735,361 $ 5,572,509 $ 4,742,735 $ 5,371,635 Net (expense)/revenue
Governmental activities $ (15,642,696) $ (18,570,525) $ (20,677,643) $ (20,666,135) $ (19,108,171) Business- type activities (704,235) (642,730) (605,618) (589,453) (679,528) $ (16,346,931) $ (19,213,255) $ (21,283,261) $ (21,255,588) $ (19,787,699) Total primary government
program revenues
Total governmental activities
program revenues
Total business-type activities
program revenues
City of Laguna Hills
City of Laguna Hills
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year Ending
98

2015 2016 2017 2018 2019
General Revenues and Changes in Net Position
Governmental activities:

Taxes
Property taxes $ 9,128,568 $ 9,660,614 $ 10,064,067 $ 10,481,864 $ 10,981,130 Sales and use taxes 5,603,521 5,439,210 5,779,073 5,755,661 5,966,524 Motor vehicle in lieu taxes 13,856 12,506 13,745 16,604 15,273 Other State subvention 93,653 57,112 9,209 5,725 22,529 Franchise taxes 1,343,505 1,303,919 1,191,868 1,248,488 1,265,411 Transient occupancy taxes 1,285,455 1,406,823 1,437,420 1,381,719 1,311,213 Investment earnings 14,266 14,893 21,911 49,179 99,204
Miscellaneous revenue 56,542 150,614 142,221 121,176 114,881 Transfers (50,000) (421,000) - - -
Total governmental activities 17,489,366 17,624,691 18,659,514 19,060,416 19,776,165 Business-type activities:

Investment earnings 27 36 42 63 63
Transfers 50,000 421,000 - - -
Total business-type activities 50,027 421,036 42 63 63
Total primary government $ 17,539,393 $ 18,045,727 $ 18,659,556 $ 19,060,479 $ 19,776,228 Changes in Net Position:

Governmental activities $ 1,846,670 $ (945,834) $ (2,018,129) $ (1,605,719) $ 667,994 Business-type activities (654,208) (221,694) (605,576) (589,390) (679,465) Total primary government $ 1,192,462 $ (1,167,528) $ (2,623,705) $ (2,195,109) $ (11,471) (accrual basis of accounting)
Fiscal Year Ending
Changes in Net Position (Continued)
Last Ten Fiscal Years
99

2020 2021 2022 2023 2024
Expenses
Governmental activities:

General government $ 4,350,707 $ 4,468,341 $ 3,318,690 $ 4,577,936 $ 4,507,981 Public works 6,783,242 6,727,008 6,849,279 7,674,208 9,520,313 Community development 1,656,277 2,270,417 1,762,606 1,405,880 1,576,567 Community services 3,781,731 3,371,755 4,027,705 2,572,809 2,698,973 Public safety 8,630,054 9,106,311 9,005,866 10,106,055 10,978,289 Interest expense 202,566 118,455 40,507 (12,748) (26,552) Total governmental activities expenses 25,404,577 26,062,287 25,004,653 26,324,140 29,255,571 Business-type activities:

Property leasing 1,299,630 1,312,224 1,396,618 1,417,830 1,372,783 Total business-type activities expenses 1,299,630 1,312,224 1,396,618 1,417,830 1,372,783 Total primary government expenses $ 26,704,207 $ 27,374,511 $ 26,401,271 $ 27,741,970 $ 30,628,354 Program Revenues
Governmental activities:

Charges for Services:

General government $ - $ - $ - $ 36,804 $ 42,000
Public works 738,335 1,480,182 787,032 600,449 152,814
Community development 1,182,430 1,009,012 1,042,546 2,890,596 2,969,604 Community services 345,328 183,008 498,155 2,657,311 582,073 Public safety 175,661 146,395 173,454 224,731 244,299
Operating Contributions 2,555,054 3,170,212 6,293,799 4,601,680 1,236,178 Capital Contributions 206,675 - 239,224 2,507,586 3,176,977 5,203,483 5,988,809 9,034,210 13,519,157 8,403,945
Business-type activities:

Charges for Services:

Property leasing 597,525 618,552 705,583 754,913 834,085 Operating grants and contributions - - - - -
Capital grants and contributions - - - - -
597,525 618,552 705,583 754,913 834,085
$ 5,801,008 $ 6,607,361 $ 9,739,793 $ 14,274,070 $ 9,238,030 Net (expense)/revenue
Governmental activities $ (20,201,094) $ (20,073,478) $ (15,970,443) $ (12,804,983) $ (20,851,626) Business- type activities (702,105) (693,672) (691,035) (662,917) (538,698) $ (20,903,199) $ (20,767,150) $ (16,661,478) $ (13,467,900) $ (21,390,324) Total primary government
program revenues
Total governmental activities
program revenues
Total business-type activities
program revenues
City of Laguna Hills
City of Laguna Hills
Changes in Net Position (Continued)
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year Ending
100

2020 2021 2022 2023 2024
General Revenues and Changes in Net Position
Governmental activities:

Taxes
Property taxes $ 11,314,045 $ 11,930,666 $ 12,340,524 $ 13,069,248 $ 13,581,709 Sales and use taxes 5,372,149 5,825,883 6,940,812 6,930,366 6,193,444 Motor vehicle in lieu taxes 24,988 23,109 35,897 32,177 38,775 Other State subvention 10,613 9,895 - 80,839 28,546
Franchise taxes 1,198,008 1,218,098 1,251,870 1,326,571 1,344,949 Transient occupancy taxes 1,025,047 678,706 1,021,089 1,122,643 1,161,391 Investment earnings 112,250 2,988 (117,321) 636,875 1,324,276 Miscellaneous revenue 420,825 217,361 133,083 111,233 146,055 Transfers - - - (100,000) (129,125)
Total governmental activities 19,477,925 19,906,706 21,605,954 23,209,952 23,690,020 Business-type activities:

Investment earnings 85 47 76 129 71
Transfers - - - 100,000 129,125
Total business-type activities 85 47 76 100,129 129,196 Total primary government $ 19,478,010 $ 19,906,753 $ 21,606,030 $ 23,310,081 $ 23,819,216 Changes in Net Position:

Governmental activities $ (723,169) $ (166,772) $ 5,635,511 $ 10,404,969 $ 2,838,394 Business-type activities (702,020) (693,625) (690,959) (562,788) (409,502) Total primary government $ (1,425,189) $ (860,397) $ 4,944,552 $ 9,842,181 $ 2,428,892 (accrual basis of accounting)
Fiscal Year Ending
Changes in Net Position (Continued)
Last Ten Fiscal Years
101

2015 9,128,568 5,603,521 13,856 93,653 1,343,505 1,285,455 17,468,558 2016 9,660,614 5,439,210 12,506 57,112 1,303,919 1,406,823 17,880,184 2017 10,064,067 5,779,073 13,745 9,209 1,191,868 1,437,420 18,495,382 2018 10,481,864 5,755,661 16,604 5,725 1,248,488 1,381,719 18,890,061 2019 10,981,130 5,966,524 15,273 22,529 1,265,411 1,311,213 19,562,080 2020 11,314,045 5,372,149 24,988 10,613 1,198,008 1,025,047 18,944,850 2021 11,930,666 5,825,883 23,109 9,895 1,218,098 678,706 19,686,357 2022 12,340,524 6,940,812 35,897 - 1,251,870 1,021,089 21,590,192 2023 13,069,248 6,930,366 32,177 80,839 1,326,571 1,122,643 22,561,844 2024 13,581,709 6,193,444 38,775 28,546 1,344,949 1,161,391 22,348,814 Transient
Occupancy
Tax Total
City of Laguna Hills
Governmental Activities - Tax Revenues By Source
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
Ending Property Tax
Sales & Use
Tax
Motor
Vehicle in
Lieu Tax
Other State
Subvention Franchise Tax
102

2015 2016 2017 2018 2019
General Fund
Nonspendable $ 318,769 $ 312,137 $ 81,520 $ 78,971 $ 99,169 Restricted 88,990 - - - -
Committed - - - - -
Assigned 1,230,959 1,059,959 720,659 871,931 1,145,659
Unassigned 5,078,583 6,727,197 6,029,507 6,373,541 7,161,146 Total General Fund $ 6,717,301 $ 8,099,293 $ 6,831,686 $ 7,324,443 $ 8,405,974 All other governmental funds
Nonspendable - - - - -
Restricted 5,151,680 4,276,934 4,209,039 3,983,335 5,291,312 Committed - - - - -
Assigned - - - - -
Unassigned (229,971) (227,254) - - -
Total all other governmental funds $ 4,921,709 $ 4,049,680 $ 4,209,039 $ 3,983,335 $ 5,291,312 Fiscal Year Ending
City of Laguna Hills
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
103

2020 2021 2022 2023 2024
General Fund
Nonspendable $ 69,834 $ 91,384 $ 128,954 $ 105,889 $ 299,941 Restricted - - - - -
Committed - - - - -
Assigned 795,659 910,659 769,926 847,881 691,632
Unassigned 7,487,247 7,824,536 12,895,569 20,711,877 23,776,892 Total General Fund $ 8,352,740 $ 8,826,579 $ 13,794,449 $ 21,665,647 $ 24,768,465 All other governmental funds
Nonspendable - - - - 963
Restricted 4,364,330 5,703,771 4,226,804 8,202,665 9,821,061 Committed - - - - -
Assigned - - - - -
Unassigned (164,472) - (165,237) - -
Total all other governmental funds $ 4,199,858 $ 5,703,771 $ 4,061,567 $ 8,202,665 $ 9,822,024 Fiscal Year Ending
City of Laguna Hills
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
104

2014 2015 2016 2017 2018
Revenues:

Taxes $ 11,777,528 $ 12,393,356 $ 12,695,355 $ 13,114,068 $ 13,559,754 Licenses and permits 3,195,756 959,138 1,022,542 932,640 981,873 Intergovernmental 8,765,516 7,897,817 8,506,103 7,602,950 8,463,884 Charges for current services 944,054 1,156,880 1,068,521 1,159,437 1,152,319 Fines and forfeitures 300,032 267,555 228,649 208,461 219,727 Investment income 24,209 35,970 65,691 109,302 200,303
Other revenues - - - - -
Total revenues 25,007,095 22,710,716 23,586,861 23,126,858 24,577,860 Expenditures:

Current:

General government 3,271,039 3,128,699 3,599,531 3,876,923 3,856,802 Public works 4,299,138 4,273,572 4,848,571 4,276,773 4,406,628 Community development 1,433,383 1,308,380 1,461,781 1,287,101 1,384,625 Community services 2,608,281 2,070,952 2,101,883 2,131,638 2,050,652 Public safety 7,153,841 6,917,275 8,149,762 8,025,961 8,243,746 Capital outlay 2,976,435 2,277,446 2,777,691 2,151,578 356,354 Debt Service:

Interest and fiscal charges 553,529 503,429 451,427 397,428 342,922 Principal retirement 1,250,000 1,300,000 1,352,353 1,423,396 1,546,623 Total expenditures 23,545,646 21,779,753 24,742,999 23,570,798 22,188,352 Excess (deficiency) of revenues
over expenditures 1,461,449 930,963 (1,156,138) (443,940) 2,389,508 Other financing sources (uses):

Capital lease proceeds - - 47,890 710,993 -
Transfers in 8,059,715 7,006,357 7,582,790 5,207,406 2,992,799 Transfers out (8,109,715) (7,427,357) (7,582,790) (5,207,406) (2,992,799) Total other financing sources (uses) (50,000) (421,000) 47,890 710,993 - Net change in fund balances $ 1,411,449 $ 509,963 $ (1,108,248) $ 267,053 $ 2,389,508 Debt service as a percentage of
noncapital expenditures 8.60% 8.76% 8.00% 8.21% 8.57%
(modified accrual basis of accounting)
Fiscal Year Ending
City of Laguna Hills
Changes in Fund Balance of Governmental Funds
Last Ten Fiscal Years
105

2020 2021 2022 2023 2024
Revenues:

Taxes $ 13,539,101 $ 13,829,470 $ 21,609,138 $ 22,628,828 $ 22,281,493 Licenses and permits 1,775,501 2,432,782 1,754,078 1,453,067 1,361,559 Intergovernmental 8,264,831 8,920,379 6,140,282 7,199,902 3,533,609 Charges for current services 637,373 584,889 894,419 4,832,814 2,399,609 Fines and forfeitures 175,661 146,395 173,454 224,731 244,299 Investment income 230,657 14,567 (121,953) 745,205 1,637,703 Other revenues - - - 4,055 659,885
Total revenues 24,623,124 25,928,482 30,449,418 37,088,602 32,118,157 Expenditures:

Current:

General government 3,801,648 3,721,950 4,070,347 4,341,841 3,973,134 Public works 4,781,981 4,656,267 5,094,782 5,178,852 5,980,383 Community development 1,655,447 2,269,587 1,761,776 1,405,880 1,576,567 Community services 1,754,112 1,310,727 1,968,914 2,333,063 2,467,593 Public safety 8,621,863 9,098,120 8,992,127 10,096,445 10,968,679 Capital outlay 3,251,173 1,024,620 3,343,324 1,136,500 1,822,001 Debt Service:

Interest and fiscal charges 284,921 208,924 129,922 46,423 31,759 Principal retirement 1,616,667 1,660,535 1,762,560 437,302 446,739 Total expenditures 25,767,812 23,950,730 27,123,752 24,976,306 27,266,855 Excess (deficiency) of revenues
over expenditures (1,144,688) 1,977,752 3,325,666 12,112,296 4,851,302 Other financing sources (uses):

Capital lease proceeds - - - - -
Transfers in 8,539,794 3,770,978 12,861,293 5,308,736 1,649,617 Transfers out (8,539,794) (3,770,978) (12,861,293) (5,408,736) (1,778,742) Total other financing sources (uses) - - - (100,000) (129,125) Net change in fund balances $ (1,144,688) $ 1,977,752 $ 3,325,666 $ 12,012,296 $ 4,722,177 Debt service as a percentage of
noncapital expenditures 8.38% 8.05% 7.96% 1.94% 1.75%
(modified accrual basis of accounting)
Fiscal Year Ending
City of Laguna Hills
Changes in Fund Balance of Governmental Funds
Last Ten Fiscal Years
106

Fiscal Year
Ending
Secured
Property
Unsecured
Property
Less TaxExempt
Property
Taxable
Assessed
Value
Total Direct
Tax Rate (1)
Estimated
Actual
Taxable Value
(2)
Factor of
Taxable
Assessed
Value
Assessed
Value as a
Percentage of
Actual Value
2015 5,809,642 148,567 35,410 5,958,209 .05371 5,958,209 1.000000 100.00% 2016 6,236,428 183,676 165,185 6,254,919 .05371 8,159,912 1.304559 76.65% 2017 6,499,868 187,553 218,920 6,468,501 .05371 9,167,561 1.417262 70.56% 2018 6,728,482 188,841 209,680 6,707,643 .05371 9,373,474 1.397432 71.56% 2019 7,089,277 245,352 212,722 7,121,907 .05371 9,878,938 1.387120 72.09% 2020 7,353,496 211,472 242,642 7,322,326 .05371 9,834,824 1.343128 74.45% 2021 7,623,019 213,636 219,789 7,616,866 .05371 10,190,719 1.337915 74.74% 2022 7,889,791 210,848 167,326 7,933,313 .05371 11,575,188 1.459061 68.54% 2023 8,267,342 194,441 238,422 8,223,361 .05371 13,379,293 1.626986 61.46% 2024 8,737,827 213,490 150,411 8,800,906 .05371 13,454,623 1.528777 65.41% (2.) Estimated Actual Value is derived from a series of calculations comparing median assessed values from 1940 to current median sale prices. Based on these calculations a multiplier value was extrapolated and applied to current assessed values.

Table has been reformatted to comply with GASB No. 44 and include estimated actual value. (1.) Total direct tax rate is the city share of the 1% Proposition 13 tax only for TRA 31-001.

Source: Orange County Assessor data, Avenu Insights & Analytics Source: 2015 prior ACFR
City of Laguna Hills
Assessed Value and Estimated Actual Value of Taxable Property, Citywide Last Ten Fiscal Years (in thousands)
107

Category 2016 2017 2018 2019 2020
Residential $ 4,947,347 $ 5,170,783 $ 5,398,624 $ 5,669,336 $ 5,889,434 Commercial 1,072,613 1,107,991 1,100,803 1,180,147 1,217,600 Industrial 216,447 221,072 229,033 239,771 246,439
Rural 22 22 23 23 23
Gross Secured Value 6,236,429 6,499,868 6,728,482 7,089,277 7,353,496 Unsecured Value 183,676 187,553 188,841 245,352 211,472 Less: Exemptions 165,185 218,920 209,680 212,722 242,642 Net Taxable Value $ 6,254,920 $ 6,468,501 $ 6,707,643 $ 7,121,907 $ 7,322,326 Source: Orange County Assessor Data, Avenu Insights & Analytics Note: Data only available for nine years.

Fiscal Year Ending
City of Laguna Hills
Assessed Value of Property by Use Code, Citywide
Last Nine Fiscal Years (In Thousands)
108

Category 2021 2022 2023 2024
Residential $ 6,106,523 $ 6,288,266 $ 6,595,302 $ 6,973,016 Commercial 1,264,734 1,345,541 1,405,711 1,478,565
Industrial 251,738 255,960 266,304 286,221
Rural 24 24 25 25
Gross Secured Value 7,623,019 7,889,791 8,267,342 8,737,827 Unsecured Value 213,636 210,848 194,441 213,490
Less: Exemptions 219,789 167,326 238,422 150,411
Net Taxable Value $ 7,616,866 $ 7,933,313 $ 8,223,361 $ 8,800,906 Source: Orange County Assessor Data, Avenu Insights & Analytics Note: Data only available for nine years.

City of Laguna Hills
Assessed Value of Property by Use Code, Citywide
Last Nine Fiscal Years (In Thousands)
Fiscal Year Ending
109

2015 2016 2017 2018 2019
Overlapping Basic Rate 1.000000 1.000000 1.000000 1.000000 1.000000 Capistrano Union 0.009000 0.008450 0.008430 0.008000 0.007860 Metropolitan Water District 0.003500 0.003500 0.003500 0.003500 0.003500 Moulton Niguel Water District 0.086000 - - - -
Saddleback Valley Unified 0.028060 - - - -
Total 1.126560 1.011950 1.011930 1.011500 1.011360
City Direct Rate:

City Share of 1% Levy Per Prop 13 0.053710 0.053710 0.053710 0.053710 0.053710 Source: Orange County Assessor data, Avenu Insights & Analytics TRA 31-000 is represented.

Fiscal Year Ending
City of Laguna Hills
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
110

2020 2021 2022 2023 2024
Overlapping Basic Rate 1.000000 1.000000 1.000000 1.000000 1.000000 Capistrano Union 0.007450 0.007560 0.007270 0.006910 0.006330 Metropolitan Water District 0.003500 0.003500 0.003500 0.003500 0.003500 Moulton Niguel Water District - - - - -
Saddleback Valley Unified - - - - -
Total 1.010950 1.011060 1.010770 1.010410 1.009830
City Direct Rate:

City Share of 1% Levy Per Prop 13 0.053710 0.053710 0.053710 0.053710 0.053710 Source: Orange County Assessor data, Avenu Insights & Analytics TRA 31-000 is represented.

Fiscal Year Ending
City of Laguna Hills
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
111

Taxpayer Taxable Value ($)
Percent of Total
City Taxable Value
(%) Taxable Value ($)
Percent of Total
City Taxable Value
(%)
Juniper SB Mob LLC 142,321,873 1.62%
MGP Fund X Laguna Hills LLC 139,576,084 1.59% 151,234,180 2.56% Memorial Health Services 112,250,692 1.28% 25,059,178 0.42% Laguna Hills Investment Company 109,333,197 1.24% 23,143,141 0.39% PMI Prado LLC 103,704,362 1.18%
B9 Sequoia Laguna Hills Center Owner LP 77,901,695 0.89% KB Mill Creek Dst 63,750,000 0.72%
Roic California LLC 50,335,172 0.57%
Vision Star II LLC 46,581,889 0.53%
TM Medical Center LLC 44,157,961 0.50%
Pacifica Laguna Hills LLC 41,263,704 0.47%
La Paz Office Plaza LLC 36,492,509 0.41% 31,749,277 0.54% Spectrum Property Owner LLC 30,751,884 0.35%
BSP Oak Brook I LC 28,100,000 0.32%
EQR-Villa Solana Vistas Inc 26,658,084 0.30% 22,549,786 0.38% Laguna Hills Estate LLC 25,631,499 0.29% 25,584,176 0.43% La Paz Village Investors LLC 23,969,998 0.27%
Sylmar Apartments LLC 23,451,263 0.27% 19,881,065 0.34% Calle De La Louisa Holdings LLC 20,760,776 0.24%
Force-Moulton Office LLC 20,104,810 0.23%
Mouldy LLC 17,781,917 0.20% 14,917,400 0.25%
K & M Royal Group LLC 17,318,201 0.20% 14,671,300 0.25% Laguna Hills Real Estate Partnership LP 16,477,549 0.19% Ashley Real Estate LLC 16,351,839 0.19%
Aliso Equities Ltd 15,957,590 0.18%
Acquiport Three Corp 77,543,725 1.31%
TGM Prado LLC 65,150,000 1.10%
LHT Saddleback LLC 39,744,548 0.67%
SPTMRT Properties Trust 36,633,203 0.62%
Lakehills at Laguna LLC 35,534,193 0.60%
Moulton Plaza LLC 23,628,792 0.40%
Muller Taj 19,490,243 0.33%
Columbia California Carlota of 19,125,758 0.32%
Realty Assoc Fund VIII 15,385,591 0.26%
Universal Properties LH Five L 14,260,709 0.24%
Laguna Hills Business Park 13,984,637 0.24%
Ashley Furniture Industries In 13,877,935 0.23%
Mission Hills Investment Co 13,837,070 0.23%
Yacoel Maria E 13,530,344 0.23%
Westport Moulton Parkway Ltd.. 13,273,067 0.22%
Moulton La Paz LLC 13,265,349 0.22%
Total Top 25 Taxpayers 1,250,984,548 14.21% 757,054,667 12.79% Total Taxable Value 8,800,906,744 5,918,214,923
Source: Orange County Assessor data, Avenu Insights & Analytics 2023-24 2014-15
City of Laguna Hills
Principal Property Tax Payers
Last Fiscal Year and Nine Years Ago
112

Fiscal Year
Ending Secured Unsecured
Taxes Levied
for the Fiscal
Year
Amount
Collected % of Levy
Other
Collections Amount % of Levy
2015 $ 6,051 $ 275 $ 6,327 $ 6,180 97.7% $ 52 $ 6,231 98% 2016 6,375 232 6,607 6,456 97.7% 72 6,528 99%
2017 6,634 300 6,934 6,733 97.1% 69 6,802 98%
2018 6,901 230 7,131 7,004 98.2% 66 7,070 99%
2019 7,288 235 7,523 7,376 98.0% 66 7,442 99%
2020 7,529 242 7,771 7,624 98.1% 73 7,697 99%
2021 7,844 256 8,100 7,958 98.3% 90 8,048 99%
2022 8,168 281 8,449 8,150 96.5% 77 8,227 97%
2023 8,504 260 8,764 8,610 98.2% 87 8,697 99%
2024 9,067 306 9,373 8,610 91.9% 117 8,727 93%
Source: County Auditor-Controller, Avenu Insights & Analytics City of Laguna Hills
Property Tax Levy and Collections
Last Ten Fiscal Years
Collected within the Fiscal
Year of the Levy Total Collections to Date
113

Taxpayer Business Type Taxpayer Business Type
Ashley Furniture Homestore Furniture/Appliance 7-Eleven Food Stores Food Markets BJ's Restaurant & Brewhouse Restaurants A & R Floor Covering Accesrs-Sup. Furniture/Appliance Chevron Service Stations Service Stations Ashley Furniture Homestore Furniture/Appliance Chick-Fil-A Restaurants Big Lots Department Stores
Circle K Food Stores Food Markets BJ's Restaurant & Brewhouse Restaurants Cynergy Professional Systems Electronic Equipment Chevron Service Stations Service Stations Decisionpoint Systems CA Office Equipment David J.Phillips Buick-Pntc-Mazda Auto Sales - New Dick's Sporting Goods Recreation Products Dick's Sporting Goods Recreation Products Howard's Appliances Furniture/Appliance Exxon Service Stations Service Stations In-N-Out Burgers Restaurants Howard's Appliances Furniture/Appliance Jackson Energy Co. Energy Sales In-N-Out Burgers Restaurants Jerome's Furniture Warehouse Furniture/Appliance J C Penney Company Department Stores John Deere Landscapes Florist/Nursery King's Seafood Co. Restaurants King's Seafood Co. Restaurants Macy's Department Store Department Stores Laguna Hills Auto Spa Service Stations Marshall's Stores Apparel Stores Marshall's Stores Apparel Stores Material Supply Incorporated Bldg.Matls-Whsle Material Supply Incorporated Bldg.Matls-Whsle Nordstrom Department Store Department Stores Nordstrom Department Store Department Stores Petrolink Superior Service Stations Pritchard Supply Bldg.Matls-Whsle Ralph's Grocery Company Food Markets Raising Cane's Chicken Fingers Restaurants Sears Roebuck & Company Department Stores Sidepat Office Equipment Shell Service Stations Service Stations Snap One Office Equipment Sit 'N Sleep Furniture/Appliance Total Wine & More Liquor Stores Tesoro Service Stations Service Stations United Pacific Service Stations Total Wine & More Liquor Stores Vertiv Corporation Electronic Equipment Western Fuel Group Service Stations Source: Avenu Insights & Analytics
2023-24 2014-15
City of Laguna Hills
Principal Sales Tax Producers
Last Fiscal Year and Nine Years Ago
114

Fiscal Year
Ending
Certificates of
Participation
Direct
Borrowings (b)
Total Direct
Debt
Debt Per Capita
(a)
Personal
Income
Percentage of
Personal
Income
2015 12,106 - 12,106 394.58 1,373,184 0.88%
2016 10,726 - 10,726 340.02 1,479,761 0.72%
2017 9,295 46 9,341 293.57 1,587,577 0.59%
2018 7,825 723 8,548 270.74 1,661,606 0.51%
2019 6,294 627 6,921 219.65 1,724,666 0.40%
2020 4,694 530 5,224 168.11 1,835,890 0.28%
2021 3,033 437 3,470 112.85 1,935,992 0.18%
2022 1,283 345 1,628 53.70 2,026,083 0.08%
2023 857 252 1,109 36.33 2,026,083 0.05%
2024 375 160 535 17.65 2,107,165 0.03%
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.

Source: Income Data is provided by the United States Census Data and is adjusted for inflation. (a) Population data can be found in the Schedule of Demographic and Economic Statistics (b) On-bill financing program with Southern California Edison and San Diego Gas & Electric, for the installation of energy efficient LED street lighting thoughout the City, beginning in FY 2016-17.

Governmental Activities
City of Laguna Hills
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
(amounts expressed in thousands, except per capita amounts) 115

City of Laguna Hills
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years
Percentage of
General Less: Amounts Estimated
Fiscal Obligation Available in Debt Actual Taxable Per
Year Bonds Service Fund Value of Capita
Property
Note: There was no general bonded debt outstanding for the last ten fiscal years. 116

Debt
Outstanding
Estimated
Percentage
Applicable (a)
Estimated
Share of
Overlapping
Debt
OVERLAPPING TAX AND ASSESSMENT DEBT:

Metropolitan Water District 18,210,000 0.228% 41,519
Saddleback Valley Unified School District 74,370,000 16.452% 12,235,352 Capistrano Unified School District Facilities Improvement District No. 1 6,712,860 0.023% 1,544 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT: $ 12,278,415

DIRECT AND OVERLAPPING GENERAL FUND OBLIGATION DEBT
Orange County General Fund Obligations 440,385,000 1.147% 5,051,216 Orange County Board of Education General Fund Obligations 10,030,000 1.147% 115,044 Capistrano Unified School District Certificates of Participation 19,365,000 0.016% 3,098 Moulton Niguel Water District Certificates of Participation 48,605,000 13.339% 6,483,421 SUBTOTAL OVERLAPPING GENERAL FUND OBLIGATION DEBT: $ 11,652,779 City of Laguna Hills Certificates of Participation, Direct Debt 421,932 100.000% 421,932 City of Laguna Hills Direct Borrowings, Direct Debt 160,144 100.000% 160,144 SUBTOTAL DIRECT GENERAL FUND OBLIGATION DEBT: $ 582,076 TOTAL DIRECT & OVERLAPPING GENERAL FUND OBLIGATION DEBT: $ 12,234,855 OVERLAPPING TAX INCREMENT DEBT (Successor Agency) 4,405,000 2.408% 106,072 GROSS COMBINED TOTAL DEBT $ 24,619,343 (b)
(a) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value. (b)
Source: Avenu Insights & Analytics
City of Laguna Hills
Direct and Overlapping Governmental Activities Debt
As of June 30, 2024
Excludes tax and revenue anticipation notes, revenue, mortgage revenue and non-bonded capital lease obligations. 110
117

2015 2016 2017 2018 2019
Debt limit $ 899,043 $ 963,016 $ 1,003,113 $ 1,037,598 $ 1,100,194 Total net debt applicable to limit 11,335 10,035 9,295 7,825 6,294 Legal debt margin $ 887,708 $ 952,981 $ 993,818 $ 1,029,773 $ 1,093,900 Total net debt applicable to limit, as
a percentage of debt limit 1.26% 1.04% 0.93% 0.75% 0.57% Fiscal Year Ending
City of Laguna Hills
Legal Debt Margin Information
Last Ten Fiscal Years
(amounts expressed in thousands)
118

2020 2021 2022 2023 2024
Debt limit $ 1,134,745 $ 1,175,498 $ 1,215,096 $ 1,269,267 $ 1,269,267 Total net debt applicable to limit 4,694 3,033 1,283 730 375 Legal debt margin $ 1,130,052 $ 1,172,465 $ 1,213,813 $ 1,268,537 $ 1,268,892 Total net debt applicable to limit, as
a percentage of debt limit 0.41% 0.26% 0.11% 0.06% 0.03% Legal Debt Margin Calculation for Fiscal Year 2023-24
Assessed value 8,223,361
Add back: exempt real property 238,422
Total assessed value 8,461,783
Debt limit (15% of total assessed value) 1,269,267
Debt applicable to limit:

Certificates of Participation 375
Total net debt applicable to limit 375
Legal debt margin $ 1,268,892
Note: Under state finance law, the City of Laguna Hills' outstanding general obligation debt should not exceed 15% of total assessed property value. By law, the general obligation debt subject to the limitation may be offset by amounts set aside for repaying general obligation bonds.

Fiscal Year Ending
City of Laguna Hills
Legal Debt Margin Information
Last Ten Fiscal Years
(amounts expressed in thousands)
119

Note: There was no debt covenants that required pledged-revenue coverage for the last ten fiscal years.

City of Laguna Hills
Pledged-Revenue Coverage
Last Ten Fiscal Years
120

Calendar
Year Population (1)
Personal
Income (In
Thousands)
Per Capita Personal
Income (2)
City
Unemployment
Rate (3)
Median
Age (4)
% of Population with
High School Diploma
(5)
% of Population
With Bachelor's
Degree (5)
2014 30,857 1,336,181 43,315 5.0% 41.8 91.6% 45.3%
2015 30,681 1,373,184 44,757 4.1% 41.7 91.2% 44.8%
2016 31,544 1,479,761 46,911 3.7% 41.8 91.5% 45.6%
2017 31,818 1,587,577 49,896 2.6% 43.0 91.3% 46.7%
2018 31,572 1,661,606 52,629 2.2% 41.4 92.1% 49.1%
2019 31,508 1,724,666 54,737 12.2% 42.5 92.3% 49.4%
2020 31,073 1,835,890 59,083 7.4% 42.8 92.2% 50.5%
2021 30,750 2,086,807 67,864 2.2% 41.8 92.8% 50.4%
2022 30,525 2,416,252 79,157 2.9% 43.0 93.3% 80.8%
2023 30,315 2,681,544 88,456 3.0% 43.8 93.4% 75.9%

5.) School diploma and Bachelor's degree is provided by the United States Census data.

Source: Avenu Insights & Analytics
City of Laguna Hills
Demographic and Economic Statistics
Last Ten Fiscal Years

4.) Median Age is provided by the United States Census data estimation table.

3.) Unemployment and Total Employment Data are provided by the EDD's Bureau of Labor Statistics Department.

2.) Income Data is provided by the United States Census Data and is adjusted for inflation.

1.) Population Projections are provided by the California Department of Finance Projections.

Source: 2014-2015 prior ACFR
121

Business Name
Number of
Employees
Percent of Total
Employment
(%)
Number of
Employees
Percent of Total
Employment
(%)
MemorialCare Saddleback Medical Center 1,925 11.46% 1,915 11.13% Laguna Hills Health and Rehabiliation Center 236 1.40% 306 1.78% Saddleback Valley Unified School District 228 1.36% 260 1.51% Moulton Niguel Water District 180 1.07%
BJ's Restaurant & Brewhouse 158 0.94% 150 0.87%
United States Postal Service 129 0.77% 98 0.57%
Orange Coast Women's Medical Group 123 0.73%
MemorialCare Home Health 116 0.69% 137 0.80%
Villa Valencia Healthcare Center 113 0.67%
Meridian at Laguna Hills 110 0.65%
Allied Schools / Ashley Crown Systems Inc 227 1.32%
Macy's 205 1.19%
JC Penney 147 0.85%
City of Laguna Hills 105 0.61%
Total Top Employees 3,318 19.75% 3,550 20.63%
Total City Employment (1) 16,800
Results based on direct correspondence with city’s local businesses. (1) Total City Labor Force provided by EDD Labor Force Data as of June 30th.

City of Laguna Hills
Principal Employers
Last Fiscal Year and Nine Years Ago
Source: 2015 ACFR
2024
Source: Avenu Insights & Analytics
2015
122

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
General Government 10.99 10.99 10.49 9.74 9.50 9.50 9.50 9.50 9.00 8.00 Non-Departmental 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Public Works 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 Community Development 8.23 8.23 8.23 8.00 7.10 7.10 6.50 6.50 6.87 7.00 Community Services 15.40 15.40 15.40 14.65 14.50 14.50 14.25 14.25 10.97 11.60 Total 40.62 40.62 40.12 38.39 37.10 37.10 36.25 36.25 32.84 32.60 Sources: City of Laguna Hills' Biennial Budget (includes vacant positions) and City Finance Department Fiscal Year Ending
City of Laguna Hills
Full-time Equivalent Personnel Allocation by Function
Last Ten Fiscal Years
Function
123

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Police (b)
Physical arrests 534 284 293 281 240 246 289 258 211 243 Parking violations 1,981 3,257 3,406 2,487 2,381 1,876 1,267 1,841 908 2,034 Traffic violations 3,041 3,187 2,669 1,512 1,136 722 842 900 3,113 2,908 Fire (c)
Number of calls answered 2,675 2,887 3,078 3,203 3,303 3,122 3,263 3,842 3,878 3,990 Highways and Streets (d)
Sidewalk replacement (sq. ft.) 7,250 940 7,012 1,328 1,790 790 2,961 1,847 742 6,258 Curb & gutter replacement (linear ft.) - 211 523 28 85 93 20 66 22 186 Asphalt concrete placed (tons) 16,276 134 10,536 1,215 174 266 18 6,059 40 436 Street sweeping debris collected (tons) 265 229 219 217 227 206 244 226 329 350 New sign installations 23 155 12 31 2 13 18 11 27 24
Sign Replacements 380 297 312 196 55 220 287 187 309 293 Trees trimmed 792 821 1,396 1,347 1,407 1,639 1,592 1,546 1,461 1,379 Trees removed 461 152 263 286 183 206 211 200 164 130
Trees planted 38 43 118 120 109 139 122 123 199 134
Waste Stream (a)
Refuse collected (tons) 15,707 17,197 17,966 17,520 16,576 20,016 25,026 20,539 19,854 22,805 Recyclables collected (tons) 17,728 18,150 17,058 16,827 16,879 15,611 10,717 14,402 16,606 10,074 Sanitation (a)
Refuse collected (tons/day) 43 47 49 48 45 55 69 56 54 62 Recyclables collected (tons/day) 49 50 47 46 46 43 29 40 45 28 Culture and Recreation (e)
Program participants 5,637 6,152 5,686 5,993 4,456 2,919 341 2,572 990 3,088 Athletic permits 41 42 48 41 43 30 6 26 32 30
(a) CR&R Monthly Tonnage Report
(b) Orange County Sheriff's Daily Booking Log; Monthly Traffic Statistics; Data Ticket Citation Report (c) Orange County Fire Authority - Annual Comprehensive Financial Report (d) City of Laguna Hills, Public Works Department
(e) City of Laguna Hills, Community Services Department City of Laguna Hills
Operating Indicators by Function
Last Ten Fiscal Years
Function
Fiscal Year Ending
124

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Highways and streets
Streets (miles) 83 83 83 83 83 83 83 83 83 83
Traffic signals 47 47 47 48 48 48 49 49 49 49
Culture and recreation
Parks acreage 83 83 83 83 83 83 83 83 83 83
Parks 15 15 15 15 15 15 15 15 15 15
Community Centers 1 1 1 1 1 1 1 1 1 1
Civic Center 1 1 1 1 1 1 1 1 1 1
Source: Various City Departments
City of Laguna Hills
Capital Assets Statistics by Function
Last Ten Fiscal Years
Function
Fiscal Year Ending
125

CITY OF LAGUNA HILLS

AT A GLANCE

GENERAL INFORMATION
The City of Laguna Hills, located in South Orange County, has approximately 6.6 square miles of land in its corporate boundary and is now home to 30,315 people. The majority of the area in the City has a distinctive residential character. Yet, the City has a commercial base in its northern part. This area, or “urban village”, is anchored by upcoming development of The Village at Laguna Hills, the Oakbrook Village Retail Center, and Saddleback Memorial Hospital. It includes retail, restaurant, professional office, and medical related building space. When the City annexed the “North Laguna Hills” area in July of 1996, the City acquired 1.2 square miles of primarily light industrial, professional office, specialty retail, hotel, and residential uses. This annexed area contains a furniture row, office headquarters, and the only light industrial/manufacturing establishments in the City. In September of 2000, the City grew by another 150 acres as a result of the annexation of residential properties identified as West Laguna Hills.

HISTORY
Laguna Hills is built on one of the major land grants developed during the rancho area. Following Mexico’s independence from Spain in 1821, those who had served in the government or who had friends in authority were given vast lands for cattle grazing. Rancho Lomas de Santiago, Rancho San Joaquin, and Rancho Niguel covered much of the western portion of the Saddleback Valley. Don Juan Avila was granted the 13,000-acre Rancho Niguel on which Laguna Hills is located.

In 1874, Lewis Moulton purchased Rancho Niguel from Don Juan Avila and increased the original grant to 22,000 acres. Moulton and his partner, Jean Piedrea Daguerre, used the ranch to raise sheep and cattle. The Moulton ranch was eventually subdivided in the early 1960s, part of which is recognized as Laguna Hills.

Incorporation efforts began in 1987 and on March 5, 1991, the goal of incorporation was finally achieved with 86% of the residents voting in favor of forming the City of Laguna Hills. On December 20, 1991, Laguna Hills officially became a City.

CITY GOVERNMENT
The City of Laguna Hills is a General Law City that operates under the Council/Manager form of government. The voters elect five of their fellow citizens to the City Council for overlapping four-year terms. The Council, in turn, selects one of its members to serve as Mayor for a one-year term. The City Council holds regular public meetings on the second and fourth Tuesday of each month.
126

1 December 2, 2024
To the Honorable Mayor and Members of the City Council
City of Laguna Hills
Laguna Hills, California
We have audited the financial statements of City of Laguna Hills, California (City) as of and for the year ended June 30, 2024, and have issued our report thereon dated December 2, 2024. Professional standards require that we advise you of the following matters relating to our audit.

Our Responsibility in Relation to the Financial Statement Audit under Generally Accepted Auditing Standards and Government Auditing Standards
As communicated in our letter dated April 25, 2024, our responsibility, as described by professional standards, is to form and express opinions about whether the financial statements that have been prepared by management with your oversight are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America. Our audit of the financial statements does not relieve you or management of its respective responsibilities.

Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement. An audit of financial statements includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control over financial reporting. Accordingly, as part of our audit, we considered the internal control of the City solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control.

We are also responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures for the purpose of identifying other matters to communicate to you.

We have provided our comments regarding internal controls during our audit in our Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards dated December 2, 2024.

We also performed agreed upon procedures on the Article XII-B Appropriation’s Limit Calculation.

Planned Scope and Timing of the Audit
We conducted our audit consistent with the planned scope and timing we previously communicated to you.

What inspires you, inspires us. | eidebailly.com
25231 Paseo De Alicia, Ste. 100 | Laguna Hills, CA 92653-4615 | T 949.768.0833 | F 949.768.8408 | EOE

2 Compliance with All Ethics Requirements Regarding Independence The engagement team, others in our firm, as appropriate, our firm, and other firms utilized in the engagement, if applicable, have complied with all relevant ethical requirements regarding independence.

Significant Risks Identified
As stated in our auditor’s report, professional standards require us to design our audit to provide reasonable assurance that the financial statements are free of material misstatement whether caused by fraud or error. In designing our audit procedures, professional standards require us to evaluate the financial statements and assess the risk that a material misstatement could occur. Areas that are potentially more susceptible to misstatements, and thereby require special audit considerations, are designated as “significant risks”. We have identified the following as significant risks:
• Management override of internal controls
• Revenue recognition
• Net pension liability, related deferred inflows/outflows of resources and pension expense.

Qualitative Aspects of the Entity’s Significant Accounting Practices Significant Accounting Policies
Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by the City is included in Note 1 to the financial statements. There have been no initial selection of accounting policies and no changes in significant accounting policies or their application as of June 30, 2024. No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods used to account for significant unusual transactions and (2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus.

Accounting Estimates
Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s current judgments. Those judgments are normally based on knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ markedly from management’s current judgments.

The most sensitive accounting estimates affecting the financial statements are management’s estimates of the net pension liability, related deferred inflows and outflows of resources, pension expense, and disclosures.

Management’s estimate of the pension information is based on actuarial valuations. We evaluated the key factors and assumptions used to develop the estimate and determined that it is reasonable in relation to the basic financial statements taken as a whole.

3 Financial Statement Disclosures
Certain financial statement disclosures involve significant judgment and are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the City’s financial statements relate to:
• The net pension liability and related deferred inflows/outflows of resources and expense in Note 8 are sensitive to the underlying actuarial assumptions used, including, but not limited to, the investment rate of return and discount rate. As disclosed in Note 8, a 1% increase or decrease in the discount rate has a material effect on the City’s net pension liability.

Significant Difficulties Encountered during the Audit
We encountered no significant difficulties in dealing with management relating to the performance of the audit.

Uncorrected and Corrected Misstatements
For purposes of this communication, professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that we believe are trivial, and communicate them to the appropriate level of management. Further, professional standards require us to also communicate the effect of uncorrected misstatements related to prior periods on the relevant classes of transactions, account balances or disclosures, and the financial statements as a whole. Uncorrected misstatements or matters underlying those uncorrected misstatements could potentially cause future-period financial statements to be materially misstated, even though the uncorrected misstatements are immaterial to the financial statements currently under audit. There were no uncorrected or corrected missstatements identified as a result of our audit procedures.

Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter, which could be significant to the City’s financial statements or the auditor’s report. No such disagreements arose during the course of the audit.

Circumstances that Affect the Form and Content of the Auditor’s Report For purposes of this letter, professional standards require that we communicate any circumstances that affect the form and content of our auditor’s report. We did not identify any circumstances that affect the form and content of the auditor’s report.

Representations Requested from Management
We have requested certain written representations from management which are included in the management representation letter dated December 2, 2024.

Management’s Consultations with Other Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting matters. Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and accounting matters.

4 Other Significant Matters, Findings, or Issues
In the normal course of our professional association with the City, we generally discuss a variety of matters, including the application of accounting principles and auditing standards, significant events or transactions that occurred during the year, operating conditions affecting the entity, and operating plans and strategies that may affect the risks of material misstatement. None of the matters discussed resulted in a condition to our retention as the City’s auditors.

Other Information Included in Annual Reports
Pursuant to professional standards, our responsibility as auditors for other information, whether financial or nonfinancial, included in the City’s annual reports, does not extend beyond the financial information identified in the audit report, and we are not required to perform any procedures to corroborate such other information.

Additionally, in accordance with such standards, we have read the information and considered whether such information, or the manner of its presentation, was materially inconsistent with its presentation in the financial statements.

Our responsibility also includes communicating to you any information which we believe is a material misstatement of fact. Nothing came to our attention that caused us to believe that such information, or its manner of presentation, is materially inconsistent with the information, or manner of its presentation, appearing in the financial statements.

Group Audits
The financial statements include the financial activity of the Laguna Hills Public Improvement Corporation (Corporation), a blended component unit. For the purposes of our audit, we do not consider the Corporation to be a significant component of the financial statements. Consistent with the audit of the financial statements as a whole, our audit included obtaining an understanding of the Corporation and its environment, including internal control, sufficient to assess the risks of material misstatement of the financial statements of Corporation and City as a whole, and completion of further audit procedures.

This report is intended solely for the information and use of the City Council, and management of the City and is not intended to be, and should not be, used by anyone other than these specified parties.

Laguna Hills, California

1 Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards
To the Honorable Mayor and Members of the City Council
City of Laguna Hills, California
We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States (Government Auditing Standards), the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Laguna Hills, California (City), as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements and have issued our report thereon dated December 2, 2024.

Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control.

Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the City’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified.

What inspires you, inspires us. | eidebailly.com
25231 Paseo De Alicia, Ste. 100 | Laguna Hills, CA 92653-4615 | T 949.768.0833 | F 949.768.8408 | EOE

2 Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Laguna Hills, California
December 2, 2024

Independent Accountant's Report on
Applying Agreed-Upon Procedures Related to
the Article XIII-B Appropriations Limit Calculation
June 30, 2024
City of Laguna Hills, California
eidebailly.com

1 Independent Accountant’s Report
on the Article XIII-B Appropriations Limit Calculation
To the Honorable Mayor and Members of the City Council
City of Laguna Hills, California
We have performed the procedures enumerated below, on the Appropriations Limit Calculation of the City of Laguna Hills, California (City) prepared in accordance with Article XIII-B of the California Constitution for the fiscal year ended June 30, 2024. The City’s management is responsible for the Appropriations Limit Calculation.

The City has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of evaluating the Appropriations Limit Calculation. This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes.

The procedures and associated findings are as follows:

1. We obtained the completed worksheets setting forth the calculations necessary to establish the City's appropriations limit and compared the limit and annual adjustment factors included in those worksheets to the limit and annual adjustment factors that were adopted by resolution of the City Council. We also compared the population and inflation options included in the aforementioned worksheets to those that were selected by a recorded vote of the City Council.

Finding: No exceptions were found as a result of this procedure.

2. We added last year’s limit to the annual adjustment amount, and compared the resulting amount to the 2023-2024 appropriationslimit.

Finding: No exceptions were found as a result of this procedure.

3. We compared the current year information to theworksheets described in Procedure 1 above and to information provided by the California State Department of Finance.

Finding: No exceptions were found as a result of this procedure.

4. We agreed the prior year appropriations limit to the prior year appropriations limit adopted by the City Council.

Finding: No exceptions were found as a result of this procedure.

What inspires you, inspires us. | eidebailly.com
25231 Paseo De Alicia, Ste. 100 | Laguna Hills, CA 92653-4615 | T 949.768.0833 | F 949.768.8408 | EOE

2 We were engaged by the City to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the American Institute of Certified Public Accountants. We were not engaged to and did not conduct an examination or review, the objective of which would be the expression of an opinion or conclusion, respectively, on the City’s Appropriations Limit Calculation for the fiscal year ended June 30, 2024. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.

We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement.

This report is intended solely for the information and use of City Council and management of the City and is not intended to be and should not be used by anyone other than those specified parties.

Laguna Hills, California
December 2, 2024

Item No. 4.8
City of Laguna Hills
City Council / Planning Agency
Staff Report
Date: December 10, 2024
To: Mayor and Council Members
From: Jennifer Lee, City Clerk
Issue: 2025 City Council Meeting Calendar
Recommendation: That the City Council adopt the 2025 City Council Meeting Calendar.

Background:

In order to facilitate the preparation of agendas, as well as to provide adequate time for City Council Members and staff to plan schedules, it is helpful to review the City Council Meeting Calendar. The City Council, with proper noticing, can decide to adjourn a regular meeting to a specific date and time prior to its meeting or can call a Special Meeting, if the need for such a meeting arises. Please note that the second meeting in July, first meeting in August, and second meetings in November and December are, in regular practice, not held. The November 2025 meeting deviates from the typical schedule with the meeting on the 3rd Tuesday due to the 2nd Tuesday being Veterans Day and the 4th Tuesday meeting being Dark due to the Thanksgiving holiday. Also, as regular practice, the second meetings of each month ar subject to cancelation if the City Manager determines there are not sufficient items to justify a meeting.

Fiscal Impact:

There is no fiscal impact associated with this item.

Attachments:

1. 2025 City Council Meeting List

2. 2025 City Council Meeting Calendar

Calendar 2025
January 1 New Year’s Day Holiday (observed)
City Hall Closed
January 14 Regular City Council/Planning Agency Meeting January 28 Regular City Council/Planning Agency Meeting (subject to cancellation)
February 11 Regular City Council/Planning Agency Meeting Public Improvement Corp
February 17 Presidents Day Holiday
City Hall Closed
February 25 Regular City Council/Planning Agency Meeting (subject to cancellation)
March 11 Regular City Council/Planning Agency Meeting
March 25 Regular City Council/Planning Agency Meeting
(subject to cancellation)
April 8 Regular City Council/Planning Agency Meeting
April 22 Regular City Council/Planning Agency Meeting
(subject to cancellation)
May 13 Regular City Council/Planning Agency Meeting
May 26 Memorial Day Holiday
City Hall Closed
May 27 Regular City Council/Planning Agency Meeting
(subject to cancellation)
June 10 Regular City Council/Planning Agency Meeting
June 24 Regular City Council/Planning Agency Meeting
(subject to cancellation)
July 4 City’s Fourth of July Celebration
City Hall Closed
July 8 Regular City Council/Planning Agency Meeting

July 22 Regular City Council/Planning Agency Meeting
Dark Meeting
August 12 Regular City Council/Planning Agency Meeting
Dark Meeting
August 26 Regular City Council/Planning Agency Meeting
September 1 Labor Day Holiday
City Hall Closed
September 9 Regular City Council/Planning Agency Meeting September 23 Regular City Council/Planning Agency Meeting (subject to cancellation)
October 14 Regular City Council/Planning Agency Meeting October 28 Regular City Council/Planning Agency Meeting (subject to cancellation)
November 11 Veterans Day Holiday (observed)
City Hall Closed
Regular City Council/Planning Agency Meeting
Dark Meeting
November 18 Regular City Council/Planning Agency Meeting November 25 Regular City Council/Planning Agency Meeting Dark Meeting
November 27-28 Thanksgiving Holiday
City Hall Closed
December 9 Regular City Council/Planning Agency Meeting City Council Reorganization
December 23 Regular City Council/Planning Agency Meeting Dark Meeting
December 24 -31 Christmas Holiday
City Hall Closed

2025
City Council Meeting Calendar
Standard City Council Meeting Schedule:
2 nd & 4th Tuesday of each month, at 6:00 p.m.,
in the Laguna Hills Council Chamber, located
at: 24035 El Toro Road, Laguna Hills, CA 92653
Meetings are dark on Holidays and during Council Recess City Hall is closed on the following holidays:

New Year’s Day
Martin Luther King, Jr's Birthday
President’s Day
Memorial Day
Independence Day
Labor Day
Veterans Day
Thanksgiving and day after
Christmas Eve through
New Years Eve
City Council Meetings
City Council Recess
City Holidays (City Hall Closed)

Item No. 4.9
City of Laguna Hills
City Council / Planning Agency
Staff Report
Date: December 10, 2024
To: Mayor and Council Members
From: Jennifer Lee, City Clerk
Issue: Affirmation of Local Appointments List for City Boards, Commission, and Committees
Recommendation: That the City Council affirm the Local Appointments List and direct that it be posted on the City's website, at City Hall and in the Laguna Hills Branch Technology Library in accordance with Government Code Section 54972, the Maddy Act.

Background:
he State Legislature found that there was a vast and largely untapped reservoir of talent existing among the citizenry of the State of California and that this resource was not, all too frequently, aware of the many opportunities which exist to participate in and serve on local regulatory and advisory boards, commissions, and committees. In order to provide access to information regarding vacancies which occur on local boards, commissions, and committees, Government Code Section 54972 requires that each legislative body prepare a Local Appointments List on or before December 31st of each year consisting of the following:
• A list of appointive terms, which will expire during the next calendar year, with the name of the incumbent appointee, the date of the appointment, the date the term expires, and the necessary qualifications for the position. • A list of all boards, commissions, and committees whose members serve at the pleasure of the legislative body and the necessary qualifications for each position.

A Local Appointments List for the City of Laguna Hills is attached. After the City Council acts to affirm the list, a copy of the list will be posted on the City's website, at City Hall,

Item No. 4.9
and in the Laguna Hills Branch Technology Library at the Community Center.

Fiscal Impact:

There is no fiscal impact associated with the affirmation of the Local Appointments List.

Attachments:

1. Local Appointments List

City of Laguna Hills

LOCAL APPOINTMENTS LIST
Ongoing Commissions, Boards, and Committees
(Pursuant to Government Code §54972 et seq.)
Planning Agency
City Council Members
established by Ordinance No. 9 and Laguna Hills Municipal Code Section 2-28.010 The members of the Laguna Hills City Council shall serve as members of the Planning Agency.

Planning Agency of the City pursuant to Government Code §65100 to carry out the purposes of Government Code Title 7. Planning and Land Use.

Appointee Date Appointed Term Expires
Janine Heft 12/13/2016 12/10/2024
Erica Pezold 12/11/2018 12/08/2026
Dave Wheeler 12/11/2018 12/08/2026
Don Caskey 10/26/2021 12/10/2024
Joshua Sweeney 12/13/2022 12/08/2026
Parks and Recreation Commission
Five Members, Four-Year Staggered Terms
established by Resolution No. 92-04-14-5
amended by Resolution Nos. 96-02-13-1; 2005-09-13-1; 2006-01-10-1; 2009-08-25-4 All Commission Members, at all times during their incumbencies, must be a bona fide resident and registered voter of the City of Laguna Hills.

Advisory commission to the City Council pertaining to parks, recreation facilities, and recreational programming to balance community wants with municipality responsibility and resources.

Appointee Date Appointed Term Expires
Sanjay Mathur 01/18/2022 01/31/2025
Patricia Thee 01/26/2021 01/31/2025
Chris Bieber 05/23/2023 01/31/2027
Marc Trocchio 05/23/2023 01/31/2027
Michael Zozaya 05/23/2023 01/31/2027
Traffic Commission
Five Members, Four-Year Staggered Terms
established by Resolution No. 92-02-25-4
amended by Resolution No. 2005-09-13-2
All Commission Members, at all times during their incumbencies, must be a bona fide resident and registered voter of the City of Laguna Hills.

Advisory commission to the City Council pertaining safe and efficient movement of traffic, including pedestrians and bicycles, upon existing streets, roads and highways of the City.

Appointee Date Appointed Term Expires
Manuel Hernandez 03/10/2020 01/31/2025
Mark Schaff 02/09/2021 01/31/2025
Michael Caputo 06/14/2022 01/31/2025
Neel Patel 05/23/2023 01/31/2027
Scott Miller 02/27/2024 01/31/2027

Audit Committee
City Manager (or designee) and Two City Council Members established by City Council Action on March 14, 1995 and City Council Policy No. 105 Committee Members must be a current member of the Laguna Hills City Council.

Advisory committee to the City Council for the purpose of providing a direct line of communication between the auditor and the City Council.

Appointee Date Appointed Term Expires
Joshua Sweeney 1/10/2023 Unlimited Term
Don Caskey 12/14/2021 Unlimited Term
Events, Communication, and Beautification Committee
Two City Council Members
established by City Council Action on June 28, 2022
Committee Members must be a current member of the Laguna Hills City Council.

Advisory committee to the City Council for the purpose of making recommendations on projects designed to maintain and enhance the appearance of public areas within the City, conduct research on communications programs, and develop and implement community events.

Appointee Date Appointed Term Expires
Erica Pezold 06/28/2022 Unlimited Term
Janine Heft 06/28/2022 Unlimited Term
Economic Development Committee
Two City Council Members
established by City Council Action on June 28, 2022
Committee Members must be a current member of the Laguna Hills City Council.

Advisory committee to the City Council for the purpose of promoting and supporting local businesses and encouraging a strong economy within the City.

Appointee Date Appointed Term Expires
Dave Wheeler 06/28/2022 Unlimited Term
Don Caskey 06/28/2022 Unlimited Term

Item No. 4.10
City of Laguna Hills
City Council / Planning Agency
Staff Report
Date: December 10, 2024
To: Mayor and Council Members
From: Jennifer Lee, City Clerk
Issue: Resolution Updating Designation of Assistant and Deputy City Attorneys Within the Office of City Attorney as Required by Laguna Hills Municipal Code Chapter 2-20
Recommendation: That the City Council adopt a Resolution entitled: "A Resolution of the City Council of the City of Laguna Hills, California, Updating Designation of Assistant and Deputy City Attorneys Within the Office of the City Attorney as Required by Laguna Hills Municipal Code Chapter 2-20."
Background:

Chapter 2-20 of the Laguna Hills Municipal Code (LHMC) establishes the Office of the City Attorney. LHMC Section 2-20.010 specifies that the City Attorney's office shall include those Assistant and Deputy City Attorneys as may be authorized by the City Council. The functions of the Office of the City Attorney are as specified in LHMC Section 2-20.030. The City contracts with the law firm of Woodruff & Smart located in Costa Mesa to provide city attorney, general counsel, advisory, transactional, prosecutorial, and litigation services. Members of the firm designated as Assistant City Attorneys are subject to the City's Conflict of Interest Code requirements. The City Clerk recommends that the City Council adopt the proposed Resolution to update the members of the firm that are designated to serve as Assistant and Deputy City Attorneys, in accordance with the Laguna Hills Municipal Code.

Fiscal Impact:

There is no fiscal impact associated with the adoption of the proposed resolution.

Item No. 4.10
Attachments:

1. Proposed Resolution

4919-2463-1041, v. 1
RESOLUTION NO. 2024-12-10-X

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

LAGUNA HILLS, CALIFORNIA, UPDATING DESIGNATION

OF ASSISTANT AND DEPUTY CITY ATTORNEYS WITHIN

THE OFFICE OF CITY ATTORNEY AS REQUIRED BY
LAGUNA HILLS MUNICIPAL CODE CHAPTER 2-20
The City Council of the City of Laguna Hills, California, hereby finds, determines, declares, and resolves as follows:

WHEREAS, Chapter 2-20 of the Laguna Hills Municipal Code establishes the office of City Attorney and provides that the City Attorney shall administer the office and shall serve under the direct supervision and control of the City Council as its legal advisor, and that the City Attorney shall perform the functions set forth in Section 2-20.030 of the Laguna Hills Municipal Code; and WHEREAS, Chapter 2-20 specifies that the City Attorney’s office shall include those Assistant and Deputy City Attorneys as may be authorized by the City Council; and
WHEREAS, the City contracts with the law firm of Woodruff & Smart located in Costa Mesa to provide city attorney, general counsel, advisory, transactional, prosecutorial, and litigation services.

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

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

SECTION 1. The following members of the law firm of Woodruff & Smart are hereby designated as Assistant and Deputy City Attorneys, pursuant to Section 2-20.010 of the Laguna Hills Municipal Code:

Assistant City Attorneys:

Michael S. Daudt
James H. Eggart
Ricia R. Hager
Jason M. McEwen
Barbara Raileanu
Deputy City Attorneys:

Caroline A. Byrne
Lindsay C. Caro
Walter Crandall
Daniel L. Cruz
Michael D’Angelo L.

David A. DeBerry
Patrick M. Desmond

Resolution No. 2024-12-10-X

4919-2463-1041, v. 1
Deputy City Attorneys (continued):

James M. Donich
Craig G. Farrington
Kathya M. Firlik
Christopher Grzelecki
Nicholas A. Hutchins
Adison G. Kahn
David E. Kendig
Bobbie A. Kraus
Mark Monachino
Brian A. Moore
Laura A. Morgan
Omar Sandoval
Meredith D. Stewart
Alyson C. Suh
Whitney N. Tantisuwanna
Cassie E. Trapesonian
Michael C. Valdez
Gary C. Weisberg
PASSED, APPROVED, AND ADOPTED this 10th day of December 2024. ___________________________________________
, MAYOR
ATTEST:
______________________________________

JENNIFER LEE, CITY CLERK

Resolution No. 2024-12-10-X

4919-2463-1041, v. 1

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. 2024-12-10-X adopted by the City Council of the City of Laguna Hills, California, at a Regular Meeting thereof held on the 10th day of December 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
(SEAL)
_____________________________________

JENNIFER LEE, CITY CLERK

Item No. 4.11
City of Laguna Hills
City Council / Planning Agency
Staff Report
Date: December 10, 2024
To: Mayor and Council Members
From: Jennifer Lee, City Clerk
Issue: Resolution Amending and Restating City Council Policy No. 101 Regarding Procedures for the City Council Policy Manual
Recommendation: That the City Council adopt a Resolution entitled: "A Resolution of the City Council of the City of Laguna Hills, California, Amending and Restating City Council Policy No. 101 Regarding Procedures for the City Council Policy Manual." Background:

There are several routine business practices and City Council protocols that the City Council has established over the years. These policies are outlined and compiled in the City Council Policy Manual. At the November 12, 2024, City Council special meeting, Mayor Wheeler agendized a staff report requesting modifications to City Council Policy No. 101. Based on the direction provided by the City Council during the November 12, 2024, special meeting workshop, staff drafted the proposed resolution amending and restating City Council Policy No. 101. For reference, a relined version of City Council Policy No. 101 has been included as an attachment to the staff report.

Fiscal Impact:

Action by the City Council on this matter has no fiscal impact to the City.

Attachments:

1. Proposed Resolution Updating CC Policy No. 101

2. Redlined City Council Policy No. 101

RESOLUTION NO. 2024-12-10-X

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

LAGUNA HILLS, CALIFORNIA, AMENDING AND
RESTATING CITY COUNCIL POLICY NO. 101 REGARDING

PROCEDURES FOR THE CITY COUNCIL POLICY
MANUAL
The City Council of the City of Laguna Hills, California, hereby finds, determines, declares, and resolves as follows:

WHEREAS, the City Council may establish City Council Policies for providing procedures and guidelines to the City Manager for the administration, operation, and general health, safety, and welfare of the City; and
WHEREAS, the City Council adopted City Council Policy No. 101 on June 14, 1994 to establish a process for developing, approving, and revising City Council Policies; and WHEREAS, the City Council desires to make changes to the current procedure as outlined in City Council Policy No. 101.

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

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

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

SECTION 2. City Council Policy No. 101, entitled, “City Council Policy Manual," is hereby approved and adopted as set forth in Exhibit “A,” a copy of which is attached hereto and is incorporated herein by reference.

PASSED, APPROVED AND ADOPTED this 10th day of December 2024. ____________________________________
, MAYOR
ATTEST:
______________________________________

JENNIFER LEE, CITY CLERK

Resolution No. 2024-12-10-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. 2024-12-10-X adopted by the City Council of the City of Laguna Hills, California, at a Regular Meeting thereof held on the 10th day of December 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
(SEAL)
_____________________________________

JENNIFER LEE, CITY CLERK

1 CITY OF LAGUNA HILLS
City Council Policy
Subject: City Council Policy Manual
Policy No. 101
Effective Date: June 14, 1994
Last Revision: December 10, 2024
PURPOSE:

To establish a process for developing, approving, and revising City Council Policies which provide requirements to the City Manager for the administration, operation, and general health, safety, and welfare of the City.

BACKGROUND:

In order to effectively carry out the day-to-day operations of the City, the City Manager and staff depend on an extensive body of laws, regulations, ordinances, codes, and policies for direction. Many of the policies promulgated by the City Council are established by adoption of ordinances and resolutions and shall be standalone requirements. City Council Policies when in conflict shall take precedence over the Municipal Code and General Plan.

POLICY:

The following process shall be utilized to develop and maintain appropriate documentation of City Council policies:

1. New policies shall be prepared in written form and submitted to the City Council for approval. They become effective at the time the City Council takes action.

2. Existing policies may be recommended for deletion or modification by any Member of the City Council or the City Manager. Any such deletion or modification shall be placed on the City Council agenda and requires a majority vote for approval.

3. The City Council Policy Manual shall be maintained by the City Clerk. The City Council Policies shall be in the format attached as Exhibit A.

4. A copy of the City Council Policy Manual shall be maintained in a secure location and available on the city’s public website.

5. The City Council Manual shall be set up using the following headings and numbering:

City of Laguna Hills
City Council Policies
Table of Contents
Resolution No. 2024-12-10-X
Exhibit A

City Council Policy
No. 101
City Council Policy Manual
2 100 ADMINISTRATION AND GOVERNMENT
101 (Title)
200 BOARDS AND COMMISSIONS
201 (Title)
300 PLANNING, BUILDING, ENGINEERING, PARKS, AND MAINTENANCE 301 (Title)
400 RECREATION, HISTORICAL, AND CULTURAL
401 (Title)
500 GENERAL
501 (Title)
ATTACHMENTS:
● NONE

1 CITY OF LAGUNA HILLS
City Council Policy
Subject: City Council Policy Manual
Policy No. 101
Effective Date: June 14, 1994
Last Revision: June 14, 1994 December 10, 2024
PURPOSE:

To establish a process for developing, approving, and revising City Council Policies which provide broad, general guidelinesrequirements to the City Manager for the administration, operation, and general health, safety, and welfare of the City.

BACKGROUND:

In order to effectively carry out the day-to-day operations of the City, the City Manager and staff depend on an extensive body of laws, regulations, ordinances, codes, and policies for direction. Many of the policies promulgated by the City Council are established by adoption of ordinances and resolutions and will shall be standalone requirements. City Council Policies when in conflict shall take precedence over be included in the Municipal Code and General Plan.

The purpose of the City Council Policy Manual is to provide general direction to assist City staff and members of City Commissions in conducting municipal affairs by identifying certain administrative/operational policies adopted by the City Council. From these broad policies, the City Manager and staff develop more specific administrative procedures designed to achieve the Council’s goals and objectives.

These policies provide staff with general direction and are not intended to limit the City Manager’s flexibility to adapt administrative procedures for different circumstances as needed.

POLICY:

The following process will shall be utilized to develop and maintain appropriate documentation of City Council policies:

1. New policies will shall be prepared in written form and submitted to the City Council for approval. They become effective at the time the City Council takes action.

2. Existing policies may be recommended for deletion or modification by any Member of the City Council or the City Manager. Any such deletion or

City Council Policy
No. 101
City Council Policy Manual
2 modification will shall be placed on the City Council agenda and requires a majority vote for approval.

3. The City Council Policy Manual will shall be maintained by the City Clerk.

The City Council Policies will shall be in the format attached as Exhibit A.

4. A copy of the City Council Policy Manual will shall be maintained in a secure location and available on the city’s public website the same location as the City Council Reading File.

5. The City Council Manual will shall be set up using the following headings and numbering:

City of Laguna Hills
City Council Policies
Table of Contents
100 ADMINISTRATION AND GOVERNMENT
101 City Council Policies(Title)
105 Financial Policies
110 Recognition Policy
115 Council Member Participation in the 2007-2008 General Plan Update Process (Minute Order)
200 BOARDS AND COMMISSIONS
201 Appointment of Commissioners(Title)
205 Commissioner Attendance at Meetings
300 PLANNING, BUILDING, ENGINEERING, PARKS, AND MAINTENANCE 301 Park Site Planning(Title)
305 Advertising/Temporary Signs in City Parks
309 Community Center Facility Reservation Policy
310 Public Reservations and Fee Policy
311 Group Picnic/Park Reservation Policy

City Council Policy
No. 101
City Council Policy Manual
3 312 Athletic Field Tournament Policy
313 Gymnasium Rental and Use Policy
314 Athletic Field/Roller Hockey Facility Reservation Policy 315 Tree Preservation
316 Special Event Permit and Reservation Policy
320 Contract Change Order
330 Placement of Telecommunication Facilities on City-owned Property 340 Disposition of Surplus Land
350 Residential Streets Traffic Management Policy
400 RECREATION, HISTORICAL, AND CULTURAL
401 (Title)
500 GENERAL
501 (Title)
505
ATTACHMENTS:
• Format for City Council PoliciesNone

Item No. 4.12
City of Laguna Hills
City Council / Planning Agency
Staff Report
Date: December 10, 2024
To: Mayor and Council Members
From: Jennifer Lee, City Clerk
Issue: Resolution Amending and Restating City Council Policy No. 125 Regarding Procedures for the City Council Policy Manual
Recommendation: That the City Council adopt a Resolution entitled: "A Resolution of the City Council of the City of Laguna Hills, California, Amending and Restating City Council Policy No. 125 Regarding Procedures for the Delivery of City Council Agendas." Background:

There are several routine business practices and City Council protocols that the City Council has established over the years. These policies are outlined and compiled in the City Council Policy Manual. At the November 12, 2024, City Council special meeting, Mayor Wheeler agendized a staff report requesting modifications to City Council Policy No. 125. Based on the direction provided by the City Council during the November 12, 2024, special meeting workshop, staff drafted the proposed resolution amending and restating City Council Policy No. 125. For reference, a relined version of City Council Policy No. 125 has been included as an attachment to the staff report.

Fiscal Impact:

Action by the City Council on this matter has no fiscal impact to the City.

Attachments:

1. Proposed Resolution Updating CC Policy No. 125

2. Redlined City Council Policy No. 125

RESOLUTION NO. 2024-12-10-X

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

LAGUNA HILLS, CALIFORNIA, AMENDING AND
RESTATING CITY COUNCIL POLICY NO. 125 REGARDING

PROCEDURES FOR THE DELIVERY OF CITY COUNCIL

AGENDAS
The City Council of the City of Laguna Hills, California, hereby finds, determines, declares, and resolves as follows:

WHEREAS, the City Council may establish City Council Policies for providing procedures and guidelines to the City Manager for the administration, operation, and general health, safety, and welfare of the City; and
WHEREAS, the City Council adopted City Council Policy No. 125 on October 8, 2019 to establish guidelines for the delivery of the City Council meeting agenda to Council Members and members of the public; and
WHEREAS, the City Council desires to make changes to the current procedure as outlined in City Council Policy No. 125.

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

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

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

SECTION 2. City Council Policy No. 125, entitled, “Delivery of Agenda," is hereby approved and adopted as set forth in Exhibit “A,” a copy of which is attached hereto and is incorporated herein by reference.

PASSED, APPROVED AND ADOPTED this 10th day of December 2024. ____________________________________
, MAYOR
ATTEST:
______________________________________

JENNIFER LEE, CITY CLERK

Resolution No. 2024-12-10-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. 2024-12-10-X adopted by the City Council of the City of Laguna Hills, California, at a Regular Meeting thereof held on the 10th day of December 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
(SEAL)
_____________________________________

JENNIFER LEE, CITY CLERK

1 CITY OF LAGUNA HILLS
City Council Policy
Subject: Delivery of Agenda
Policy No. 125
Effective Date: October 8, 2019
Last Revision: December 10, 2024
PURPOSE:

To establish guidelines for the delivery of the City Council meeting agenda to Council Members and members of the public.

POLICY:

The purpose of this policy is to provide staff general direction and establish guidelines regarding the delivery of the City Council agenda and supplemental information to City Council Members and members of the public.

1. Pursuant to State law, agendas for regular City Council meetings must be posted a minimum of 72 hours in advance. For regularly scheduled Tuesday City Council meetings, agendas must be posted no later than the Saturday preceding the meeting by 6:00 p.m.

2. The City Council meeting agenda and agenda packet shall be made available to City Council Members and members of the public by 5:00 p.m. on the Friday prior to the meeting.

3. In instances where there is a minimum of 4 weeks or more period of time preceding a City Council meeting, staff will endeavor to release the City Council meeting agenda and agenda packet for the upcoming City Council meeting no later than 5:00 p.m. on the Wednesday prior to the meeting.

4. Upon the release of the City Council meeting agenda and agenda packet, should any changes to the material occur after the release of the agenda and agenda packet, City Council Members will be provided with a Hot Envelope detailing the changes to the agenda or agenda packet after publication. This information will concurrently be made available to members of the public.

5. The City Clerk shall deliver the Agenda Planning Calendar to the City Council at least twice per month. The Agenda Planning Calendar shall show the forecast for the next 12 months.

Resolution No. 2024-12-10-X
Exhibit A

City Council Policy
No. 125
Delivery of Agenda Policy
2 ATTACHMENTS:
● NONE

1 CITY OF LAGUNA HILLS
City Council Policy
Subject: Delivery of Agenda
Policy No. 125
Effective Date: October 8, 2019
Last Revision: n/aDecember 10, 2024
PURPOSE:

To establish guidelines for the delivery of the City Council meeting agenda to Council Members and members of the public.

POLICY:

The purpose of this policy is to provide staff general direction and establish guidelines regarding the delivery of the City Council agenda and supplemental information to City Council Members and members of the public. 1)1. Pursuant to State law, agendas for regular City Council meetings must be posted a minimum of 72 hours in advance. For regularly scheduled Tuesday City Council meetings, agendas must be posted no later than the Saturday preceding the meeting by 76:00 p.m.

2)2. As has been the City’s regular practice, tThe City Council meeting agenda and agenda packet is shall be made available to City Council Members and members of the public by 5:00 p.m. on the Friday prior to the meeting.
3)3. In instances where there is a minimum of 4 weeks or more period of time preceding a City Council meeting, staff will endeavor to release the City Council meeting agenda and agenda packet for the upcoming City Council meeting no later than 5:00 p.m. on the Wednesday prior to the meeting.
4) While staff will endeavor to release the City Council meeting agenda and agenda packet by the time guidelines detailed above, there may be instances where staff may be unable to meet the stated timeframes. If that is the case, the City Council meeting agenda and agenda packet will be released upon completion.

4. Upon the release of the City Council meeting agenda and agenda packet, should any changes to the material occur after the release of the agenda and agenda packet, City Council Members will be provided with a Hot Envelope detailing the changes to the agenda or agenda packet after

City Council Policy
No. 125
Delivery of Agenda Policy
2 publication. This information will concurrently be made available to members of the public.
5)5. The City Clerk shall deliver the Agenda Planning Calendar to the City Council at least twice per month. The Agenda Planning Calendar shall show the forecast for the next 12 months.
6)6. This policy is not intended to limit the City Manager’s flexibility to address different and/or unanticipated circumstances, as needed. The City Manager may exercise his sole discretion and judgment in deciding the timing of the production and release of the City Council meeting agenda and agenda packet, with the exception of timing as is required by law.

ATTACHMENTS:
● NONE

Item No. 4.13
City of Laguna Hills
City Council / Planning Agency
Staff Report
Date: December 10, 2024
To: Mayor and Council Members
From: Joe Ames, Public Works Director/City Engineer
Greg Simonian, City Attorney
Issue: Declare Former Globe Property (APN: 616-022-04) as Exempt Surplus Land Recommendation: That the City Council declare the former Globe Property (APN: 616- 022-04) as Exempt Surplus Land, and adopt a Resolution entitled, “A Resolution of the City Council of the City of Laguna Hills, California, Declaring Real Property (APN No. 616- 022-04) as Exempt Surplus Land Pursuant to the Surplus Land Act, Government Code Section 54220 Et Seq. and Making CEQA Findings.”
Background:

The former Globe Property is a remnant parcel of land owned in fee simple by the City and sits adjacent to the Interstate 5 (I-5) freeway next to St. George’s Episcopal Church (23802 Avenida de la Carlota). The Property remains vacant and has never been used for a City purpose. Staff recommends that the City Council declare the Property as exempt surplus land under the small parcel exemption, pursuant to the Surplus Land Act.

The Surplus Land Act (“SLA”) (Government Code Section 54220 et seq.) generally requires local agencies to make surplus property available for affordable housing and governmental uses before disposing of it. A “disposition” under the SLA means the sale or long-term lease (over 15 years) of surplus property. The SLA defines surplus land as “land owned in fee simple by any local agency for which the local agency’s governing body takes formal action in a regular public meeting declaring that the land is surplus and is not necessary for the agency’s use.” An “agency’s use” includes, but is not limited to, land that is being used or is planned to be used pursuant to a written plan adopted by the local agency’s governing board for agency work or operations (Government Code

Item No. 4.13
Section 54221). The California Department of Housing and Community Development (State HCD) oversees the disposition of surplus land by local agencies.

For property that meets the above definition, the SLA requires the governing board to declare property as either “surplus” or “exempt surplus” before the agency takes any action to dispose of the property consistent with the agency’s procedures. There are a number of statutory exemptions under the Surplus Land Act that may apply to surplus property, including a small parcel exemption for land that is: 1) less than one-half acre in area (< 21,780 sq. ft.); and 2) is not contiguous to land owned by a state or local agency that is used for open-space or low- and moderate-income housing purposes (Government Code Section 54221(f)(1)(B)). Both criteria must be met. An agency may dispose of exempt surplus land without going through the noticing procedures for affordable housing or governmental uses.

The Globe Property is a vacant parcel that sits directly adjacent to the I-5 freeway and private property owned by a church. The Property is 7,899 square feet and irregularly configured in the shape of an isosceles triangle. It has been vacant and unused since at least 2003 and has never been needed for a City use or purpose. The Property is not contiguous to land owned by a state or local agency that is used for open-space or lowand moderate-income housing purposes. Over the years, City staff has evaluated potential re-uses for the Property and has determined that it is not being used or planned to be used to support City work or operations.

For the above-stated reasons, the Property meets the small parcel exemption under Government Code Section 54221(f)(1)(B). Staff recommends that the City Council adopt a Resolution (Attachment 1) declaring the Property as exempt surplus land. Should the City Council formally declare the Property as exempt, City Staff will notify State HCD of its determination and seek concurrence that the Property is exempt. Once the City receives written confirmation from HCD, which generally takes 30 days, the Property can be leased or sold for any purpose without further regard to the SLA.

CEQA Findings:

The declaration of real property as exempt from the SLA does not commit the City to a definite course of action, and thus does not qualify as a project approval for purposes of the California Environmental Quality Act (Public Resources Code §§ 21000, et seq.; Cal. Code. Regs., Tit. 14, §§ 15000 et seq.). (Cal. Code Regs., Tit. 14, § 15352.) Even if the declaration could be construed as a project approval for CEQA purposes, it would qualify for the CEQA exemption applicable to surplus government property sales/leases that are not located in areas of statewide, regional, or areawide concern. (Cal. Code

Item No. 4.13
Regs., Tit. 14, §§ 15312; 15206(b)(4).) Should the City Council make the recommended declaration, staff is directed to file and post a Notice of Determination and a Notice of Exemption accordingly.

Fiscal Impact:

There is no fiscal impact with this item.

Attachments:

1. Proposed Resolution Including Exhibits

4898-8630-0160, v. 1
RESOLUTION NO. 2024-12-10-X

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

LAGUNA HILLS, CALIFORNIA, DECLARING REAL
PROPERTY (APN NO. 616-022-04) AS EXEMPT SURPLUS

LAND PURSUANT TO THE SURPLUS LAND ACT,
GOVERNMENT CODE SECTION 54220 ET SEQ. AND

MAKING CEQA FINDINGS
The City Council of the City of Laguna Hills, California, hereby finds, determines, declares, and resolves as follows:

WHEREAS, the City owns property identified as APN No. 616-022-04 as further depicted in Exhibit “A,” attached hereto and incorporated herein by this reference (the “Property”); and
WHEREAS, pursuant to the Surplus Land Act, Government Code Section 54220, et seq. (the “Act”), land must be declared either “surplus land” or “exempt surplus land,” as supported by written findings, before a local agency may take any action to dispose of it; and
WHEREAS, pursuant to the Act, “surplus land” means land that is surplus and is not necessary for the agency’s use; and
WHEREAS, “exempt surplus land” includes “Surplus land that is less than one-half acre in area and is not contiguous to land owned by a state or local agency that is used for open-space or low- and moderate-income housing purposes” (Government Code Section 54221(f)(1)(B)); and
WHEREAS, the Property is approximately 7,899 square feet, which is less than one-half of an acre, as further described in Exhibit “B,” attached hereto and incorporated herein by this reference; and
WHEREAS, the Property is located adjacent to the Interstate 5 freeway and another property owned by a private property owner, and it is not contiguous to land owned by a state or local agency that is used for open-space or low- and moderateincome housing purposes; and WHEREAS, City Staff has evaluated the Property and has determined that it is not needed for a City use; and
WHEREAS, the accompanying staff report provides supporting information upon which the declaration and findings set forth in this Resolution are based.

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

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

Resolution No. 2024-12-10-X

4898-8630-0160, v. 1
SECTION 1. The above findings and recitals are true and correct and are incorporated herein in full by this reference.

SECTION 2. The City Council hereby determines that the Property is not necessary for the City’s use and declares that the Property is exempt surplus land, as defined by the Act.

SECTION 3. The City Manager, or designee, is authorized to proceed with the requirements of the Act to facilitate the disposition of the Property.

SECTION 4. The declaration of the Property as exempt from the Surplus Land Act does not commit the City to a definite course of action, and thus does not qualify as a project approval for purposes of the California Environmental Quality Act (Public Resources Code §§ 21000, et seq.; Cal. Code. Regs., Tit. 14, §§ 15000 et seq.). (Cal. Code Regs., Tit. 14, § 15352.) Even if CEQA applied, the declaration would qualify for the exemption applicable to sales/leases of surplus land, except for parcels of land located in an area of statewide, regional, or areawide concern identified in Section 15206(b)(4). (Cal. Code. Regs,, Tit. 14, § 15312.) The Property is not within an area of statewide, regional, or areawide concern, as set forth in Section 15206(b)(4).

Staff is directed to file a Notice of Determination and a Notice of Exemption accordingly.

PASSED, APPROVED AND ADOPTED this 10th day of December 2024. ____________________________________
, MAYOR
ATTEST:
______________________________________

JENNIFER LEE, CITY CLERK

Resolution No. 2024-12-10-X

4898-8630-0160, v. 1

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. 2024-12-10-X adopted by the City Council of the City of Laguna Hills, California, at a Regular Meeting thereof held on the 10th day of December 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
(SEAL)
_____________________________________

JENNIFER LEE, CITY CLERK

4898-8630-0160, v. 1
Exhibit “A”

4898-8630-0160, v. 1
Exhibit “B”

Item No. 4.14
City of Laguna Hills
City Council / Planning Agency
Staff Report
Date: December 10, 2024
To: Mayor and Council Members
From: Joe Ames, Public Works Director/City Engineer
Issue: Assignment and Assumption Agreement for NPDES Program Management and Inspection Consulting Services
Recommendation: That the City Council: 1) Approve the proposed Assignment and Assumption Agreement relating to the 2023 Professional Services Agreement between the City of Laguna Hills and WSP USA Environment and Infrastructure, Inc. for NPDES Program Management and Inspection Consulting Services; and 2) Authorize the City Manager to execute the Assignment and Assumption Agreement.

Background:

The City manages compliance with the National Pollutant Discharge Elimination System (NPDES) Municipal Separate Storm Sewer System (MS4) Permits issued by the San Diego and Santa Ana Regional Water Quality Control Boards with the assistance of a consultant, WSP USA Environmental and Infrastructure, Inc.

On June 13, 2023, the City and WSP USA Environmental and Infrastructure, Inc. entered into a Professional Services Agreement for NPDES Program Management and Inspection Consulting Services (“Agreement”) for a contract term of three (3) years ending on June 30, 2026, which may be duly amended, in writing, for an additional two years. By way of written correspondence, attached, on November 11, 2024, WSP USA Environmental and Infrastructure, Inc, notified the City that it will merge into WSP USA, Inc. With this merger, WSP USA Environmental and Infrastructure, Inc. will cease to exist as of December 31, 2024, and WSP USA, Inc. will remain as the successor entity.

Section 4.3 of the Agreement requires the written consent of the City prior to any transfer or assignment of the Agreement to a different company or corporate entity.

Item No. 4.14
WSP USA, Inc. requested that the City consent to and allow it to formally assume rights, obligations, and interests under the Agreement for the remainder of the term of the Agreement.

WSP USA, Inc. will retain the same personnel assigned to the current contract; therefore, it is anticipated that service will continue without any interruptions.

Approval of the Assignment and Assumption Agreement, including authorizing the City Manager to execute the Agreement, is recommended.

CEQA Findings:

CEQA Guidelines Section 15378 specifically excludes organizational or administrative activities of government that will not result in direct or indirect physical changes in the environment.

Fiscal Impact:

None. Costs will remain as-is and will not be changed by the approval of the Assignment and Assumption Agreement.

Attachments:

1. Proposed Assignment and Assumption Agreement

2. Agreement WSP USA Environmental and Infrastructure, Inc.

3. Notification of Merger

ASSIGNMENT AND ASSUMPTION AGREEMENT
RELATING TO THE 2023 PROFESSIONAL SERVICES AGREEMENT FOR NPDES

PROGRAM MANAGEMENT AND INSPECTION CONSUL TING SERVICES

BETWEEN THE CITY OF LAGUNA HILLS AND
WSP USA ENVIRONMENT AND INFRASTRUCTURE INC.

THIS ASSIGNMENT AND ASSUMPTION AGREEMENT ("Assignment") is made and entered into, and is to be effective on December 10, 2024, by and among the CITY OF LAGUNA HILLS, a municipal corporation organized and existing under the laws of the State of California ("City"); WSP USA ENVIRONMENT AND INFRASTRUCTURE INC., a Nevada corporation (hereinafter "Assignor"); and WSP USA INC., a New York corporation (hereinafter "Assignee").

City, Assignor, and Assignee are hereinafter collectively referred to as the "Parties."

RECITALS
A. City and Assignor previously entered into that certain Professional Services Agreement, dated June 13, 2023, for NPDES Program Management and Inspection Consulting Services, for an initial contract term of three (3) years commencing on June 13, 2023, and ending on June 30, 2026, (the "Agreement"). Section 3.4 of the Agreement provides the City with the unilateral option, at its sole discretion, to renew and extend the term of the Agreement for no more than one (1) additional two (2)-year term extension under the same terms and conditions.

B. On November 11, 2024, Assignee notified the City through written correspondence that on December 31 , 2024 Assignee will acquire Assignor and will continue to provide NPDES Program Management and Inspection Consulting Services pursuant to the terms and conditions set forth in the Agreement.

C. Section 4.3 of the Agreement requires the written consent of the City prior to any transfer or assignment of the Agreement to a different entity. Assignor and Assignee have requested that the City consent to and allow Assignee to formally assume Assignor's rights, obligations, and interest under the Agreement.

D. Assignee now wishes to assume all of Assignor's rights, obligations, and interest in the Agreement and requests City's consent and authorization to the transfer and assignment of the Agreement to Assignee.

E. Accordingly, City, Assignor, and Assignee desire to clarify, affirm, and acknowledge their respective rights and obligations under the terms of the Agreement.

ASSIGNMENT AND ASSUMPTION
NOW, THEREFORE, for valuable consideration, the Parties hereby agree as follows:

1. Assignment. As of December 31 , 2024, Assignor hereby assigns to Assignee all of the rights, title, interests, liability, burdens, and obligations of Assignor under the Agreement.

2. Assumption. As of December 31 , 2024, Assignee hereby assumes all of the rights, title, interests, burdens and obligations of Assignor under the Agreement, and agrees to observe and fully perform all of the duties and obligations of Assignor under the Agreement, and to be subject to all the terms and conditions thereof.
1 4887-4128-7935, V. 1

3. Binding on Successors. All of the covenants, terms, and conditions set forth herein shall be binding upon and shall inure to the benefit of the Parties hereto and their respective heirs, successors and assigns.

4. Notice Address. The Notice Address of Assignee described in Section 10.2 of the Agreement shall be:

WSP USA Inc.

Attention: Hillary Jassey
One Penn Plaza, 4th Floor
New York, NY 10119
Telephone: (212) 465-5000

5. Counterparts. This Assignment may be signed in multiple counterparts, each of which shall constitute an original.

6. Except as modified in this Assignment, the terms and conditions of the Agreement shall remain in full force and effect.

IN WITNESS WHEREOF, the Parties have executed and delivered this Assignment as of the day and year first above written.

THE CITY OF LAGUNA HILLS, a California
municipal corporation
Jarad L. Hildenbrand,
City Manager
Attest:

Jennifer Lee,
City Clerk
Approved as to form:

Gregory E. Simonian,
City Attorney
4887-4128-7935, V. 1
(SEAL)

WSP USA ENVIRONMENTAL AND
INFRASTRUCTURE INC., a Nevada corporation
rporation
2

PROFESSIONAL SERVICES AGREEMENT
WSP USA Environment and Infrastructure, Inc.
(NPDES Program Management and Inspection Consulting Services) THIS PROFESSIONAL SERVICES AGREEMENT (hereinafter "Agreement") is made and entered into, to be effective the 13
1 h day of June 2023, by and between the CITY OF
LAGUNA HILLS, a municipal corporation organized and existing under the laws of the State of California, (hereinafter referred to as "City") and WSP USA ENVIRONMENT AND INFRASTRUCTURE, INC., a Nevada 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 environmental protection and civil engineering consulting services finn for the purpose of assisting the City with NPDES program management and inspection services (the "Project").

B. In response to City's Request for Proposals, dated February 8, 2023, Consultant has submitted to City a proposal, dated March 21, 2023, to provide professional environmental protection and civil engineering consulting services to City for the Project pursuant to the terms of this Agreement.

C. Consultant represents and maintains that it is uniquely qualified by virtue of its experience, training, education, reputation, and teclmical expertise to provide professional NPDES program management and inspection consulting services to City for the Project and has agreed to provide such services as provided herein. City does not have the personnel, training, or specialized technical expertise necessary to perform the work and services contracted for herein.

D. City desires to retain Consultant to provide such professional 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 NPDES program management and inspection consulting services to City for the Project as set forth in the Proposal/Scope of Work, dated March 21, 2023, 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, I
1771062.1

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; (2) the Consultant's signed, original Proposal/Scope of Work dated March 21, 2023 ("Consultant's Proposal") submitted to City; and (3) City's 4-page Scope of Services Description, which shall all be referred to collectively hereinafter as the "Contract Documents." The Consultant's Proposal is attached hereto as Exhibit "A" and is hereby incorporated by reference and made a part of this Agreement. The City's 4-page Scope of Services Description is attached hereto as Exhibit "B" and is hereby incorporated by reference and made 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: (181) the terms and conditions of this Agreement; (2
nd
) the terms and conditions of City's 4-page Scope of Services Description (Exhibit "B"); and (3rd) the provisions of the Consultant's Proposal (Exhibit "A").

1.3 Compliance with Law. Consultant shall comply at all times during the term of this Agreement with all applicable federal, state, and local laws, statutes, and ordinances and all lawful orders, rules, and regulations promulgated thereunder, including without limitation all applicable fair labor standards and Cal/OSHA requirements. Consultant shall keep itself fully informed of and in compliance with all local, state, and federal laws, rules, and regulations in any manner affecting the performance of the Work and Services, including all Cal/OSHA requirements, and shall give all notices required by law. Consultant shall be liable for all violations of such laws and regulations in connection with performing the Work and Services. If Consultant performs any Work or Services in violation of such laws, rules, and regulations, Consultant shall be solely responsible for all penalties and costs arising therefrom. Consultant shall defend, indemnify, and hold City, its officials, officers, employees, agents and volunteers, free and harmless from any claim or liability arising out of any failure or alleged failure to comply with such laws, rules, or regulations.

1.4 Licenses, Permits, Fees, and Assessments. Prior to performing any Services or Work hereunder Consultant shall obtain all licenses, permits, qualifications, and approvals of whatever nature that are legally required to practice its profession and perform the Work and Services required by this Agreement. Consultant represents and warrants to City that Consultant shall, at its sole cost and expense, keep in effect at all times during the term of this Agreement 2 1771062.1

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 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 instrwnents, 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. 3 1771062.l

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, on a time and materials basis 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 Seventy Five Thousand Dollars ($575,000.00) (hereinafter referred to as the "Maximum Contract Amount"). The method of compensation shall be as set forth in Exhibit "A". Compensation for necessary expenditures for reproduction costs, telephone expenses, and transportation expenses must be approved in advance by the Contract Officer designated pursuant to Section 4.2 and will only be approved if such expenses are also specified in the Schedule of Compensation/Fees. The maximum amount of City's payment obligation under this Agreement is the amount specified in this section.

2.2. Method of Payment. Unless some other method of payment is specified in the Schedule of Compensation/Fees (Exhibit "A"), in any month in which Consultant wishes to receive payment, no later than the tenth (10
th
) 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 Adiustment. The fees, rates, and/or unit prices set forth in Consultant's Proposal (Exhibit "A") shall remain fixed and unchanged for the first three years of the term of this Agreement (i.e., from June 13, 2023 through June 30, 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 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 4 1771062.1

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 Perf onnance, which is attached hereto as Exhibit "A" and is incorporated herein by reference.

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

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

3.4 !£!:m. Unless earlier terminated as provided elsewhere in this Agreement, this Agreement shall continue in full force and effect for an initial period of three (3) years, commencing on June 13, 2023, and ending on June 30, 2026 ("Initial Term"). The City shall have the unilateral option, at its sole discretion, to renew and extend the term of this Agreement 5 1771062.1

for no more than one additional two (2) year term ("Renewal Term").

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: Theodore Von Bitner, Ph.D., Assistant Vice President/ Environmental Scientist. 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 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 6 1771062.1

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 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 fmancial obligations, other than pursuant to Section 2 and Subsection 1.8 herein, of any nature relating to salary, taxes, or benefits of Consultant's officers, employees, representatives, agents, or subconsultants or subcontractors, Consultant shall defend, indemnify, and hold harmless City from and against all such fmancial obligations.

4.5 PERS Eligibility & Indemnification.
7 1771062.l

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.

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 8 1771062.1

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

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

3. In the event the policy of insurance is written on mi "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.
9 1771062.1

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 10 1771062.1

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. 11 1771062.1

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.
12 1771062.1

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 perf onn 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 13 1771062.l

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 14 1771062.1

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. 15 1771062.1

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 16 1771062.1

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:
17 1771062.1

To City:

To Consultant:

City of Laguna Hills
Attention: City Manager
24035 El Toro Road
Laguna Hills, California 92653
Telephone: (949) 707-2600
WSP USA Environment and Infrastructure, Inc.

Pete Campbell, Senior Vice President
Theodore Von Bitner, Ph.D., Assistant Vice President
9177 Sky Park Court
San Diego, California 92123
Telephone: (858) 514-6401
(949) 642-0245

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 18 1771062.1

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

10.9 Labor Code Requirements.

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

The foregoing indemnity shall survive termination of this Agreement.

B. DIR Registration. If the Work or Services are being performed as part of an applicable "public works" or "maintenance" project, in addition to the foregoing, then pursuant to Labor Code sections 1725.5 and 1771.1, the Consultant and all subconsultants must be registered with the Department of Industrial Relations ("DIR"). Consultant shall maintain registration for the duration of the Project and require the same of any subconsultants. This Project may also be subject to compliance monitoring and enforcement by the DIR. It shall be Contractor's sole responsibility to comply with all applicable registration and labor compliance requirements, including the submission of payroll records directly to the DIR.

10.10 Counterparts. This Agreement may be signed in counterparts, each of which shall constitute an original.
[SIGNATURES ON NEXT PAGE]
19 1771062.1

IN WITNESS WHEREOF, the Parties have executed and entered into this Agreement as of the date first written above.
"CITY"
City of Laguna Hills,
a California municipal
JA
(SEAL)
IFER LEE, City Clerk
APPROVED AS TO FORM:
¾Z, GREGOR~ YE.OlAN,
City Attorney
"CONSULTANT"
WSP USA Environment and
Infrastructure, Inc., a Nevada corporation
20 1771062.1

EXHIBIT "A"

CONSULTANT'S PROPOSAL/ SCOPE OF WORK
FOR

NPDES PROGRAM MANAGEMENT AND INSPECTION SERVICES
DATED: MARCH 21, 2023

SCOPE OF SERVICES FOR PROJECT

INCLUDING,

SCHEDULE OF PERFORMANCE
AND

SCHEDULE OF COMPENSATION/ FEES
1771062.1

Technical Proposal: ORIGINAL
City of Laguna Hills
NPDES Program Management and Inspection Services
March 21, 2023
Joe Ames
Public Works Director
24305 El Toro Road
Laguna Hills, CA 92653

Table of Contents
l. Cover Letter 2

2. Company Data 4

3. Resumes and Qualifications of Personnel 8

4. References 9

5. Project Understanding, Overview and Approach 10

6. Communication Plan 23

7. Compensation/Payment Schedule 23

8. Certificate of Insurance 23

9. Certification of Proposal 23
Appendix A: Required Forms
Appendix B: Resumes

Proposal
A. Cover Letter
'''I> 3560 Hyland Avenue
(949) 642-0245
wsp.com
March 21, 2023
Joe Ames, Public Works Director
City of Laguna Hills
24305 El Toro Road
Laguna Hills, CA 92653
Subject: Proposal for NPDES Program Management and Inspection Services Dear Mr. Ames,
WSP USA Environment & Infrastructure, Inc. (WSP) would like to thank you for the opportunity to submit a proposal for NPDES Program Management and Inspection Services for the City of Laguna Hills.

The attachment to this cover letter provides a summary of WSP's qualifications to provide the services outlined in the RFP. We have successfully delivered similar projects for many other Orange County cities and are an active participant in the Orange County Stormwater Program helping to guide countywide efforts to comply with NPDES requirements.

From commercial/industrial inspection services, to Water Quality Management Plan (WQMP) review and post-construction BMP inspections, to statewide Trash Amendments compliance plan development and OCTA M2 Tier l grants acquisition, to water pollution response and source investigations we have
implemented all aspects of local agency stormwater programs and have experience with program implementation under both the Santa Ana and San Diego Region Phase I Municipal Separate Storm Sewer System (MS4) permits.

WSP is a global leader in consulting and engineering across the energy and built environment. We provide consulting, projects, and operations solutions in more than 60 countries, and employ approximately 40,000 people. WSP's southern California offices are staffed by more than 400 professional planners, biologists, and scientists. Our Costa Mesa, CA office is only 15 miles from Laguna Hills City Hall and has been designated as the project management location for this contract.

The proposed key team members, as well as numerous other staff members within our organization will be immediately available to perform the described program management and inspection services.

Theodore (Ted) W. Von Bitner, who will serve as the Principal-in-Charge, and Kacen Clapper, proposed Project Manager, are authorized to negotiate a binding contract on behalf of WSP and the parties named in this proposal. Our corporate office and local addresses and the primary point of contact during the evaluation process are listed in Table l.

The WSP Team Advantage:
✓ Local team with decades of
experience led by a proven
Project Manager
✓ Environmental compliance is our
core capability
✓ Decades of successful on-call
contract service history
✓ Proven methodology
✓ Commitment to QA/QC
✓ Knowledge of local environment
'''I> City of Laguna Hills I NPDES Program Management and Inspection Services Pagel2

Proposal
Table 1-WSP Contact Information
Legal Name & Corporate Office Main Point of Contact
WSP USA Environment & Infrastructure, Inc.
1075 Big Shanty Road NW, Suite 100,
Kennesaw, GA 30144
Kacen Clapper, Project Manager
3560 Hyland Avenue, Suite 100,
Costa Mesa, CA 92626
Direct: 714-624-2722
[email protected]

PROFESSIONAL SERVICES AGREEMENT STATEMENT & ADDENDUM ACKNOWLEDGEMENT WSP declares that we have reviewed and are ready to execute the City's standard form Professional Services Agreement (Attachment 4) and acknowledge receipt of all RFP addenda.

ACQUISITION NOTICE
Effective September 27, 2022, Wood Environment & Infrastructure Solutions, Inc. was acquired by WSP. Because of the acquisition, we have changed our name to WSP USA Environment & Infrastructure Inc. No other aspects of our legal entity or capabilities have changed for this proposal, including our Federal Tax ID, which remains 91-1641772.

MAIN POINT OF CONTACT
Should you have any questions regarding either the scope of work or our fee schedule, Kacen Clapper will be your primary point of contact. Correspondence can be sent to him at our address listed below or he may be contacted at (714) 624-2722 or at his email address is [email protected].

Sincerely,
WSP USA Environment & Infrastructure, Inc.

Theodore Von Bitner, PhD
Principal-In-Charge
Kacen Clapper, CPSWQ
Project Manager
'''I> City of Laguna Hills I NP DES Program Management and Inspection Services Pagel3

Proposal
B. Company Data
Official Name and Address
WSP USA Environment and Infrastructure, Inc. (WSP)
Corporate Headquarters: 7075 Big Shanty Road NW, Suite 700, Kennesaw, GA 30144 Primary Point of Contact
Pete Campbell, Senior Vice President and California Business Lead.

San Diego Office, 9177 Sky Park Court, San Diego CA, 92123 Entity Type
Corporation
Federal Employer ID Number
91-1641772
Firm Locations Contact Information
We've provided the address, telephone numbers and authorized email addresses of each of our California office locations in Table 1. Additional locations are available upon request.

Table 1: WSP California Office Locations
--------~----,---------------------
Office Address i Telephone Numbers Email Address
3560 Hyland Avenue, Suite 100, (949) 642-0245
Costa Mesa, CA 92626
1281 East Alluvial Avenue, Suite 101, (559) 264-2535
~n_o, CA 93720
6001 Rickenbacker Road, (323) 889-5300
Los Angeles, CA 90040
180 Grand Avenue, Suite 1100, (570) 663-4100
Oakland, CA 94612
3720 Chicago Avenue, Suite 110, (957) 369-8060
_13Jverside, CA ~2507 -
9177 Sky Park Court, (858) 278-3600
San Diego, CA 92123
5 Third Street, Suite 222, (475) 543-8422
San Francisco, CA 94103
104 West Anapamu Street, Suite (805) 962-0992
-
204A, Santa Barbara, CA 93101
--
[email protected]
Firm Ownership Statement
WSP USA Environment and Infrastructure, Inc. is a wholly-owned subsidiary of WSP USA Inc., Our ultimate parent organization is WSP Global, Inc.

Number of Years in Business (Under Present Name)
WSP has extensive experience providing the type of services requested by the City for this contract. Over the past 35 years, WSP's project team provided similar or identical services to a variety of clients within southern California including the cities of Laguna Niguel, Laguna Beach, Dana Point, San Juan Capistrano, San Clemente, Anaheim, Santa Ana, Costa Mesa, Seal Beach, Newport Beach, Buena Park, Garden Grove, Irvine, Newport Beach, San Diego, Encinitas, Oceanside and Imperial Beach; the counties of Orange, Riverside, San Diego, San Bernardino, Los Angeles; the Ports of San Diego, Long Beach, and Los Angeles; John Wayne Airport, San Diego County Regional Airport Authority, and the California Department of Transportation. Our experience with these clients has included many aspects of the environmental services elements related to this RFP.
'''I> City of Laguna Hills I NPDES Program Management and Inspection Services Page 14

Proposal
Years of Experience Providing Required, Equivalent and Related Services Table 2 lists project experience covers numerous examples of the projects similar in scope, complexity, and regulatory compliance implications as would be expected by the City.
.µ
C C
(lJ V) (1J
E >, C
.µ u 0 '- C V)
.µ
V) 0 0 V) 0 .µ Ol C Q. (lJ 0. (1J
(lJ r» V) .µ V) ro V) :J C C
E V) C Q. E V) (1J V) .µ V) 0 .µ
Table 2: The WSP Team's Local Experience V) .µ ::J .µ '- .µ <r: s C .µ Ol V) .µ '- (lJ (lJ ~ r» (lJ C 0 u (lJ (/) '- (lJ (lJ C (1J V)
.µ r» (lJ r» 0 (lJ .µ E (lJ a Q.
and Strong Qualifications Match the ro u C 0 ·o.. V) V) (1J ::J 2 0 Q. .µ
(1J (lJ E (lJ >, u .9:! (1J <r: s (lJ C Q. s .µ a Contract Needs C '- - Q. a (1J Q. E ro r» (1J u (lJ (lJ 0. a E 0 u (lJ 0. .µ u OJ C 0 0. C (lJ :::i 2 C (lJ C Ol >, z <r: .µ (1J .µ (lJ .µ a - E > 0. :!::: C '- (lJ (lJ
(lJ Q. u a ~ E u
2 E r» E a '- (1J s u '- 0 (lJ Q. s ro .µ
(1J C .µ 0 Q. '- (lJ <r: V) <r: u
V)
a '-
-----

0. -----
'- E :!::: ' 0. ::J _J 0 .µ 0. C 0.
-Q_ r» C (lJ C u 0 --t 0 L Q. C (1J
0 Q. '- '- 2 V) V)
0 (1J .µ 2 (1J

0. a '- ~ 0 (lJ 0 L a (lJ (/) 2 ~ '- '- (1J a C
::::i 0. f- u 0. 2 f- n a 2 f- f- 0. C) 0 n LL s
Client (WSP Partners) MS4 Permit WQIP Support Regulatory Reporting Compliance Compliance City of Laguna Niguel
City of Dana Point
City of Laguna Beach
City of San Juan Capistrano
City of San Clemente
City of Anaheim
City of Santa Ana
City of Costa Mesa
City of Garden Grove
John Wayne Airport
City of San Diego
City of Imperial Beach
County of San Diego
San Diego Regional Airport Authority
• • • • • • • • • • • • • • • • •
. : DEJEJEJEJEJEJ~~LJEJ•EJ•-~
• • • • • • • • • • • • • • • • •
~-~EJEJEJElEJLlE~EJEJmJEJEJEJ~
• • • • • • • • • • • • • • • • • •
~~EJEJEJEJEJ--E~EJEJ~EJ~
• • • • • • • • • .. • • • • • •
• IJ • ,, . ,------EJ-EJEJ-UEJ••
• • • • •
• i . :, . 'I• II• II• II• 1-1• I • 11. II• II• II• II• II• • • • • • • • • • • • • • • • • •
-EJ~EJEJEJ-EJUEJEJEJEJ-~~-~
• • • • • • • • • • • • •
• II ;-ir;-7r.7r.7r.-7-, .-,~~leil-!leilel-lelr.7lelle
'''I> City of Laguna Hills I NP DES Program Management and Inspection Services Page IS

Proposal
Laguna Niguel Urban Runoff Improvement Program
Laguna Niguel, CA
Project Description: Stormwater Compliance Services
WSP Scope of Work: WSP has provided Storm Water Compliance technical support to the City's Public Works Department since 2016 including serving in an Environmental Programs management role for the City since June 2021. Through this experience we have developed insights into daily program activities and important areas of support need. Building on this knowledge our work plan approach is based on key service areas:
1 l. Program Management

2. Program Implementation

3. TMDL and WQIP Technical Consultation

4. Meeting Support and Public Education

5. Project Planning and Grant Administration

6. Program Reporting

7. WQIP Focused Special Studies
Performance Dates
2016 to Present
On-Time Within Bucfget
✓ ✓
WSP performs municipal
BMP inspections at City
owned property.

In the past years of service to the City, WSP staff supported a number of efforts that provide high profile recognition to the City and its commitment to environmental programs. In 2022, the City received a Best Award from the American Public Works Association related to the Salt Creek Wetland Mitigation Project.

In 2020, WSP started a dry weather flow reduction special study for the City to address WQIP-related goals and this work has led to successfully reducing dry weather flows into the MS4 in support of the Unnatural Water Balance and Pathogen Health Risk High Priority Water Quality Conditions Agency or Client Name Project Developer Construction Project Size Cost
City of Laguna Niguel, Public Works Kathy Nguyen, Program Not Applicable $383,000 over 5 years Department Manager
Key Personnel (Including Pro·ect Manager) iTask Relevanc~ Kacen Clapper (Project Manager), Theodore Von Similar in scope, size, and complexity to City's Bitner (Principal). Brent Smith, Mike Lowther, Ellen RFP Smith, Lijun Xi
2 San Juan Capistrano Jurisdictional Runoff Management Program San Juan Capistrano, CA
Project Description: NPDES Program Implementation
WSP Scope of Work: WSP has provided NP DES program implementation services to the City's Public Works Department since 2014 including a wide range of services including program management; performing inspections of commercial, industrial, residential, municipal, and construction properties; preventing illegal discharges/illicit connections; providing WQMP plan check services; developing each phase of the Water Quality Improvement Plans (WQIP); and providing TMDL implementation support.

Our approach is based on six key service areas:
l. Program Management

2. Program Implementation and Technical Advisory

3. Compliance Inspections

4. Meeting Support and Public Education

5. Project Planning and Grant Administration

6. Program Reporting
Performance Dates
2014 to Present
On-Time Within Budget
✓ ✓
WSP investigates public
complaints such as an oil
spill by private property
owners and helps the City to
enforce the IC-ID regulations
in the municipal code.
,,~1 > City of Laguna Hills I NPDES Program Management and Inspection Services Page I 6

Proposal
WSP supported the City through the 2015 permit adoption including development of their jurisdictional strategies incorporated into the June 2018 Water Quality Improvement Plan. In 2022, WSP successfully helped the City to receive an OCTA Environmental Clean Up program grant award intended to support the Trash Amendments program
Agency or Client Name Project Developer Construction
Cost
Project Size
City of San Juan Capistrano, Public Works Joe Parco, City Not Applicable $730,000 per year Department Engineer
Ke Personnel (lncludin Project Manager} Task Relevanc~
Theodore Von Bitner (Project Manager). Kacen Similar in scope, size, and complexity to City's Clapper, Brent Smith, Mike Lowther, Tom Perry, Sarah RFP Seifert, and Teresa Perone
3 Santa Ana Inspection and NPDES Program Support Services Santa Ana, CA 2004 to Present
Project Description: Regulatory compliance inspections, NPDES program support, and as-needed services
WSP Scope of Work: WSP supports the City of Santa Ana with a range of technical services related to the Santa Ana Regional Water Quality Control Board issued MS4 permit includinq:
l. Commercial, Industrial, and Municipal Inspections

2. Inspection database management

3. WQMP verification and O&M inspections

4. Trash Amendments policy Track l program

5. Newport Bay TMDL technical advisory services

6. PEA annual reporting assistance

7. As-needed services including environmental engineering, storm water sampling, Copermittee meetings, grant application assistance, and source investigations
Since 2004, WSP has been supporting the City with the NPDES program but our services to the City have evolved over the years as the MS4 permit requirements grew in complexity and volume. Ours services started with the commercial-industrial inspection program and evolved into additional subjects such as municipal facilities, WQMPs, Trash Provisions, TMDL regulatory support, public complaint investigations, and for a short period of time included serving as the interim NPDES Program Manager. WSP is a full service consulting firm that can help the City respond to a variety of regulatory, engineering, and program WSP performed thousands
of commercial inspections
with zero safety incidences
and has a record of success
for providing high quality
work
management issues.

Agency or Client Name Construction Project Size
Cost
City of Santa Ana Public Craig Foster
Works Administration
o----~--- Key Personnel (Including Project Manager)
---
Performance Dates
On-Time Within Bud et
✓ ✓
Not Applicable $7.625M over 5 years
Brent Smit (Project Manager). Kacen Clapper, Mike Similar in scope, size, and complexity to City's Lowther, Ted Von Bitner, Dylan Cawthorne, Ellen Smith, RFP Michael Jones, Martin Spong berg
iTask Relevancy
'''-'I> City of Laguna Hills I NPDES Program Management and Inspection Services Pagel7

Proposal
All Comparable Contracts Entered Into During the Last Five Years (Completed or Not) WSP is a large international company and thus, has numerous ongoing and completed contracts at any given time. For the purposes of this proposal, we have provided the following local, relevant, and comparable contracts:

Any Failures or Refusals to Complete a Contract and Explanation WSP is a large international services company and as such, there are inevitably disputes arising from time to time. While details of those disputes are confidential, we can confirm that there are no disputes or litigation of any kind, that individually or collectively, will have a material effect upon the quality of WSP's performance and its ability to provide services for this contract.

Ownership
WSP Environment and Infrastructure lnc.'s ultimate parent WSP Global Inc. is a Canadian corporation publicly traded on the Toronto Stock Exchange.

Financial Interests in Other Lines of Business
WSP Environment and Infrastructure, Inc. does not have any financial interests in other lines of business.

Litigation/Adverse Judgement History
WSP is a large international services company and as such, there are inevitably disputes arising from time to time. While details of those disputes are confidential, we can confirm that there are no disputes or litigation of any kind, that individually or collectively, will have a material effect upon the quality of WSP's performance and its ability to provide services for this contract.

Termination of Contract "For Cause" History
WSP USA Environment and Infrastructure, Inc. has thousands of contracts for the performance of professional services outstanding at any given moment in time. Please be advised it would be unusual for WSP to fail to complete a project. From time to time, the client or WSP has suspended or terminated a contract for their convenience.

C. Resumes and Qualifications of Personnel
WSP USA realizes that the success of a project relies heavily on the individual team members' capabilities and experience. WSP USA's team includes certified, experienced planners and seasoned professional engineers, resource specialists, and managers with decades of experience in Southern California. Our key personnel for this assignment were selected because they have demonstrated a successful track record with the service areas requested by the City. WSP USA's key personnel are qualified to perform the specific consulting services requested by the City.

Personnel Staffing Plan
Staff Availabilities to Perform Technical Services to be Provided We have provided our key personnel availability and location/proximity to the City in Table 2.

Table 2: Key Personnel Commitment and Availability
---------- -------- - -----~---- -~- ----------------~-- ----- -- - - --- - ------- Key Personnel Contract Role Availability Location
Theodore Von Bitner Principal-In-Charge and Technical Lead 10% Costa Mesa (TMDLS, Trash Amendments, Special Studies)
Kacen Clapper Project Manager and Technical Lead (Program 30% Costa Mesa Meetings, NPOES Planning, MS4 Reporting, C/P
Water Quality Planning, Outreach
Materials/Events, Illegal Discharges/Illicit
Connections)
--·--
Brent Smith Technical Lead (SWPPP/ESCP Review, 5% Costa Mesa Construction BMP Inspections, NPDES Training
and CIP Grants)
--- - - - --- - - - - - - -
'''I> City of Laguna Hills I NPDES Program Management and Inspection Services Pagel8

Proposal
Table 2: Key Personnel Commitment and Availability
- -
Key Personnel Contract Role Availability Location
Keri Gannon, PE
Mike Lowther
Technical Lead (WQMP Reviews)
Technical Lead (WQMP and Facility BMP
! Inspections)
Resumes
Resumes for key personnel are provided in Appendix B for key personnel.

Organizational Chart
WSP USA's organization chart (Figure 4) reflects the titles of key staff and management contacts of each individual assigned to provide services under this proposal. The organization chart identifies the resources we use to provide consulting services to federal, state, and local agencies and special use districts. Our team has successfully implemented the contract scope of work on similar assignments in each of the service areas identified by the City.

Organization Chart
Joe Ames, PE, TE
City of Laguna Hills
Public Works Director
Project Controls
--- - ~~---- --
Matt Rich
Sarah Gerry
Bernadette Roberts
Matt Rich
Compliance Planning
Reporting and Record
Keeping
-----■
Program Meetings
Program Funding Construction
CIP Water Quality
Planning
NPDES Training
SWPPP/ESCP Review
Industrial/Commercial
and Municipal Facility
Inspections
Investigations
Kacen Clapper, CPSWQ
NPDES Planning
Kacen Clapper, CPSWQ
MS4 Reporting
---------~
Kacen Clapper, CPSWQ
Brent Smith, IGP ToR.

QISP, CPESC. QSD/QSP
Sarah Seifert
70% San Diego
70% Costa Mesa
TMDLs
Brent Smith, IGP ToR.

QISP. CPESC. QSD/QSP
Kacen Clapper, CPSWQ
CIP Grants
Construction BMP
Inspections
Brent Smith, IGP ToR,
QISP, CPESC. QSD/QSP
Tom Perry, QSP, QISP,
CESSWI
Tomas Marquez, QSP.

CESSWI
Brent Smith, IGP ToR.

QISP. CPESC. QSD/QSP
Kacen Clapper, CPSWQ
Outreach
Materials/ Events
Kacen Clapper, CPSWQ
Facility BMP Inspections
WQMP
BMP Inspections
Dylan Cawthorne, EIT
Illegal Discharges/
Illicit Connections
Kacen Clapper, CPSWQ
Mike Lowther, IGP ]
ToR, QISP, CPESC
Dylan Cawthorne, EIT
Key Personnel in Bold
Staff Transition Plan. We understand and concur with the City's requirement that key personnel identified in the Organizational Chart remain during the term of the agreement and any proposed replacement requires City approval prior to making the staff change. In the event that there are proposed changes in '''I> City of Laguna Hills I NPDES Program Management and Inspection Services Pagel9

Proposal
key personnel during the term of the agreement that are outside of our firm's control or if the City requests such change.

D. References
In Table 3, we have provided references for similar services of the nature and scope as set forth in the RFP within the last five years.
-----, Table 3: WSP Refe~renc~es W~ithin the Last Five Years -- ---- ----- _T --- --------~----~- Agency Name I Contact Person Description of Services Provided City of Laguna
Niguel
Kathy Nguyen
Engineering Services Manager
949-362-4341
1 [email protected]
City of San Juan
I
Jeremy Hohnbaum
Capistrano ! Senior Civil Engineer
I 949-449-1190
! [email protected]
--+------------- -- ---
City of Santa
Ana
City of Dana
Point
Craig Foster
NPDES Manager
714-647-5659
[email protected]
··- -----
Lisa Zawaski
Senior Water Quality Engineer
949-248-3584
[email protected]
Program Management, Meeting Support,
Technical Advisor (Bacteria TMDL, Trash
Amendments Planning), Special Studies,
Grant Administration, Plan Check Services, 1 Wetlands Program Management, LIP/WQIP Annual Reporting
Program Management, Meeting Support,
Technical Advisor (Bacteria TMDL, Trash
Amendments Planning, CHWSRS}, Special
Studies, Grant Administration, WQMP Plan
Check Services, LIP/WQIP Updates, ICID
Investigations, Annual Reporting
NPDES Compliance Services:

Industrial/Commercial Facility Inspections, I
Trash Amendments Planning, TMDL
Compliance, illegal discharges and illicit I
connections, Annual Reporting
Ba-- cter
- ia T-M-DL -··· Pr-
ogram, LI- P a
-
nd WQ---- IP j
Special Studies, Water Quality Regulations,
Trash Amendments Planning
E. Project Understanding, Overview and Approach
WSP has a proven track record of providing high-quality, efficient services for NPDES program management and inspection services for cities and counties throughout southern California. We have provided Phase I Municipal Separate Storm Sewer System
(MS4} permit compliance consulting services for over 21 years under both the San Diego Regional MS4 permit and Santa
Ana Orange County MS4 permit. We also have extensive
experience implementing relevant state-wide general
permits (i.e., Construction General Permit (CGP) and
Industrial General Permit (IGP)), in land development water quality management plan (WQMP) development and review,
facility construction and post-construction BMP inspections, and have led countless pollutant source investigations and special studies. As some of these services may be more
efficiency completed at the City's Public Works offices, WSP proposes to provide these services to the City through a combination of on-site and remote support. Our Costa Mesa office is located only 15 miles from City Hall, allowing us to be available on very short notice. In addition to on-call on-site support, WSP can also provide regularly scheduled in-person support staff at City offices to further improve the efficiency 11. Reporting and Record Keeping of our services. Our understanding of the scope and the Our approach to providing NPDES
Program Management and
Inspection Services to the City is
based on the following service areas:

1. Program Administration

2. Compliance Planning

3. Program Funding

4. Training

5. Capital Projects and Programs

6. Planning and Land Development

7. Construction

8. Industrial/Commercial and
Municipal Facility Inspections

9. Investigations

10. Public Outreach
'''I> City of Laguna Hills I NP DES Program Management and Inspection Services Page I 10

Proposal
envisioned methods for providing technical support under each service area is described in the following sections.

Program Administration .

NPDES regulations continue to evolve and municipal programs need to adapt accordingly. Tracking changes, their potential implications to existing City programs, and the development and implementation of new jurisdictional runoff management programs is an important component of program administration. Active participation in Orange County Stormwater Program committees and subcommittees is the foundation for these efforts in Orange County. As lead permittee, the County of Orange coordinates and implements these committees which drive watershed planning and improvement plan development, model program development, and monitoring and reporting programs through a Copermittee cost share budget. It is vital that the City has a voice at these committee meetings to help influence program development and changes. It is also important that City staff are aware of new regulations and mandates, and updates to model programs. WSP staff already attend many Orange County Stormwater Program committee meetings on behalf of other clients and have been directly involved for over a decade in a variety of aspects of watershed planning, model plan development, and monitoring efforts both as a consultant and directly as former County staff. Our proposed project manager, Kacen Clapper, was also a recent co-chair of the California Stormwater Quality Agency (CASQA) Policy and Permitting subcommittee and has been at the forefront of tracking precedent setting changes in NPDES regulations that may impact municipalities throughout California, including the draft Los Angeles Region commercial, industrial and institutional permit (CII Permit) and San Diego Region biological objectives.

WSP expects to provide the following areas of support as part of its Program Administration services to the City:
► Attend and represent the City at various Orange County Stormwater Program and regulatory compliance meetings
► Monthly program update meetings to brief City staff on changing mandates and regulations and new technologies in program implementation
► Coordination with City departments regarding NPDES Program issues including pollution incident investigations and public and private property development and usage ► Efforts to evaluate and improve NPDES Program policies and procedures ► Program budget and cost estimate preparation
► Navigating the budget development and approval process including City council staff reports ► Implementing and tracking program expenditures
► Monthly progress reports to accompany WSP invoices for services Our Program Administration services will include three 2-hour Orange County Stormwater Program and regulatory compliance meetings per month. Monthly l-hour program update meetings to City staff, general project management and monthly progress reports, and 3-hours per month of additional asneeded technical assistance and help desk support to City staff regarding NPDES Program compliance.

Compliance Planning
The WSP team has extensive experience implementing regulatory-based environmental programs and managing NPDES Program compliance including Water Quality Improvement Plan (WQIP) development, Total Maximum Daily Load (TMDL) compliance planning, Track l and Track 2 plan development under the statewide Trash Amendments, and project implementation through the Integrated Regional Water Management (IRWM) planning process. As both the Santa Ana and San Diego Phase I MS4 permits are in the process of renewal it is expected there will be increased compliance planning related efforts needed during both the permit renewal process and to development and revise planning related documents to meet new permit requirements. It is our understanding that the City of Laguna Hills submitted a request to the Santa Ana Regional Water Quality Control Board to have the San '''I> City of Laguna Hills I NPDES Program Management and Inspection Services Page Ill

Proposal
Diego Regional Water Quality Control Board exclusively regulate the programmatic elements oft he City's NPDES Program when the next term Phase I MS4 permits are adopted. As there remains uncertainty in when this change will be officially granted, and it is anticipated that the City will still be responsible for complying with Water Quality Based Effluent Limitations (WQBELs) and TMDLs requirements for the Newport Bay watershed, WSP's proposed approach for Compliance Planning services assumes the continued need for support under both permits.

WSP staff have been involved since initial development of the South Orange County WQIP in 2075 and currently assist several south Orange County cities with providing comments on WQIP documents, completing WQIP jurisdictional strategy table updates, and BMP data entry within the web-based BMP asset and modeling tool, OC Stormwater Tools. A key component of the WQIP includes compliance with the Beaches and Creeks Bacteria TMDLs. New significant milestones for the bacteria TMDLs are anticipated in the coming year as a revised tentative bacteria TMDL Time Schedule Order (TSO) was released in December 2022 and may be adopted in 2023. WSP's proposed Project Manager, Kacen Clapper helped the South Orange County Copermittees, to develop the original bacteria TMDL Comprehensive Load Reduction Plans and has been actively involved in comment development on the draft TSO and in state efforts to identify technical and regulatory actions needed to initiate revisions to current bacteria-based objectives.

In 2078, the San Diego Regional Board issued a California Water Code section 73383 administrative order to south Orange County cities to select either a Track l or Track 2 pathway for compliance with new statewide Trash Amendments. In response WSP developed Track 2 compliance plans for four Orange County cities and is currently assisting four additional cities with Track l compliance planning and implementation. WSP also led countywide efforts to draft a land substitution guidance document to assist with compliance with the new regulations. We have also assisted several Orange County cities with improving the accuracy of modeled land use trash generation rates {TGRs) through on-land visual trash assessment (OVTA) surveys and have now conducted over 7,800 OVTAs to refine TGRs and compliance plan targets largely resulting in notable cost saving to clients.

The South Orange County IRWM Plan is an important component to identifying and securing funding for significant water resources related projects within the region. WSP has assisted clients with grant implementation through the IRWM process and is currently working as a local city representative with water agencies such as the Moulton Niguel Water District to identify and plan potential future multi benefit stormwater capture and reuse projects.

In north Orange County WSP has also been involved with compliance planning efforts under the Santa Ana Region Orange County MS4 Permit. Efforts have included support to local clients in representing their interests in Newport Bay Watershed TMDL program planning, statewide Trash Amendments program planning, IRWM program efforts, and providing overall regulatory compliance and program guidance.

Our Compliance Planning services to the City include efforts under both the Santa Ana and San Diego MS4 permits. Areas of expected support to the City include:
► Preparing City comments on Orange County Stormwater Program developed planning documents and materials
► Preparing City comments on Regional Board issued orders ► Participation in WQIP Comprehensive Human Waste Source Reduction Strategy (CHWSRS) program planning and implementation on behalf of the City ► Managing implementation of the WQIP high priority water quality condition initiatives including City specific jurisdictional strategies such as a MS4 outfall dry weather flow reduction ► Statewide Trash Amendments policy program implementation and compliance assessment ► Newport Bay watershed TMDLs implementation efforts and compliance assessment '''I> City of Laguna Hills I NPDES Program Management and Inspection Services Page I 12

Proposal
Our services will include 8 hours/month in support of Compliance Planning services as defined in the RFP.

Special studies targeting bacteria and flow reductions or Trash Amendments related OVTAs are anticipated to require additional work and would pursue as task cost savings is presented and at the direction of the City's project manager.

Program Funding
The South Orange County WQIP includes an overall goal that runoff from >9,000 acres of existing impervious surface area will be addressed through structural storm water BMPs (e.g., biofiltration basins, treatment wetlands, storm water capture and reuse, etc.) and goals for stream restoration and stabilization to mitigate past impacts from land development. The statewide Trash Amendments have additional requirements for trash capture for priority land use areas and Watershed Management Plans are currently being developed for north Orange County they will likely bring additional project-based water quality improvement goals. Laguna Hills, like many south Orange County cities, may wish to seek grants to help fund its stormwater related CIP projects. WSP understands projects may include a mixture of Federal, State, and Local funds. Over the past 21 years, we have assisted with obtaining grants, performing administrative and technical tasks required of the grants, and developing reports compliant with stringent grant funding requirements. We have assisted with Proposition 84, the Clean Water State Revolving Fund, and Measure M funded projects, and Proposition l Stormwater projects. Recently, WSP helped several Orange County cities secure multiple OCTA M2 Tier l grants to install catch basin trash capture screens to help meet statewide Trash Amendment requirements.

As part of WQIP implementation every south Orange County city is now being asked to identify additional potential projects within their jurisdiction and explore funding opportunities. WSP can provide support to the City in all aspects of project planning and grant administration to ensure program funding initiatives.

Areas of expected support to the City in Program Funding include:
► Initial CIP stormwater project scoping and analysis
► Grant application preparation
► Potential multi agency coordination, memorandum of understanding and contract development, and cost share agreement preparation
► Grant administration and budget oversight
► Grant related monitoring and reporting
Our services in support of this task will include 20 hours/year in support of Program Funding services as defined in the RFP.

Training
WSP staff have been providing NPDES training services in southern California for several decades, for industrial facilities since 1998, airports since 2003, and other construction contractors and municipal clients since 2012. Several local WSP staff are Industrial General Permit Trainers of Record {IGP ToR) and have trained WSP and client staff to become certified Qualified Industrial Storm Water Practitioners (QISPs). WSP training presentations provided for municipal, industrial, and construction target audiences typically provide an overview of relevant NPDES permit requirements, common issues, and BMPs that should be implemented. We have conducted annual NP DES MS4 trainings for other clients and can build on these materials to develop an individually crafted presentation to match the tone, themes, and message desired by the City.

WSP staff have completed many of the County's Drainage Area Management Plan (DAMP) model programs trainings including the Industrial/Commercial Inspector Training, Illicit Discharge and Illegal Connection Training, and Post-Construction BMP Inspection Training. In fact, every WSP inspector completes an extensive training program based on the Orange County Stormwater Programs core competencies program for municipal, industrial, and commercial inspectors. As the County's model '''I> City of Laguna Hills I NPDES Program Management and Inspection Services Page I 73

Proposal
programs are updated to reflex changes in new pending MS4 permits, WSP will be tracking these changes and attend any additional proper or pertinent trainings provided by the County.

Areas of expected support to Training include:
► Annual in-person N PDES MS4 training for City staff
► Tracking changes to County-wide training module programs and attending pertinent trainings as-needed
Our services in support of this task will include 8 hours/year in Training services as defined in the RFP.

Capital Projects and Programs
WSP has extensive experience providing as-needed stormwater quality support for capital improvement program (CIP) projects. WSP's team includes civil design engineers and technical support staff to assist with a variety of public facilities, transportation, water, wastewater, and energy projects. We have extensive experience in the development, review and implementation of plans and specifications for public works projects including required NPDES elements. Our staff routinely review WQMPs, provide recommendations for post-construction structural treatment control BMPs, and review construction compliance documents such as Storm Water Pollution Prevention Plans (SWPPPs). Erosion and Sediment Control Plans (ESCP). and Water Pollution Control Plans (WPCP). We have QSD/QSPs available to complete the construction inspections or to assist with preparing the Notice of Intent (NOi) in the SWRCBs Stormwater Multiple Application and Report Tracking System (SMARTS) to obtain coverage under the Construction General Permit (CGP).

Areas of expected support to Capital Projects and Programs include:
► Support in selecting, developing, and implementing NPDES elements of CIP projects ► Conducting municipal facility post-construction BMP maintenance inspections ► Providing CGP related inspection and SMARTS reporting assistance Our services in support of this task will include 2 inspections per year as defined in the RFP.

Planning and Land Development
WSP staff have an in-depth understanding of the County's New Development/Re-Development Standards and Technical Guidance Document (TGD). Our team routinely provide engineering services for grading and drainage projects associated with site development and redevelopment, and stormwater BMPs (first flush treatment, green infrastructure, etc.). making us well suited for the review of such projects. WSP's engineers have experience with a wide range of civil engineering projects and can collaborate and confer with developers on designs for detention and retention ponds, drainage swales, culverts, underground storm drain systems, hydraulic modification considers, and overall site grading considerations for new and redevelopment projects. We are experienced water quality engineers and are familiar with the necessary coordination between grading and drainage design and stormwater quality analysis and design and understand the range of local regulations, state regulations and federal regulations to find the best solution to project water quality issues.

Our team has reviewed hundreds of WQMPs for Orange County projects and is currently providing WQMP verification and BMP maintenance inspections for several Orange County cities including Anaheim, Santa Ana, Laguna Niguel, and San Juan Capistrano. During our typical verification inspection, WSP verifies that the structural treatment control BMPs were installed exactly in accordance with the WQMP and grading plans, flow patterns are reviewed to confirm that stormwater is directed to the structural treatment controls as intended, and elevations are reviewed to assess storm water detention.

WSP also understands that some projects within the City may be constructed in phases and the relationship between the construction phase and the need to protect structural treatment control BMPs during construction.
'''I> City of Laguna Hills I NPDES Program Management and Inspection Services Page I 14

Proposal
Areas of expected support to Planning and Land Development include:
► Private project plan check services to review priority WQMP and Non-Priority WQMPs for compliance with storm water regulations
► Advising developers, contractors, and engineers on potential solutions to water quality issues related to grading plans and encroachment permits
► Conducting post-construction BMP verification and maintenance inspections to ensure the City's compliance with MS4 permit requirements
Our services in support of this task will include the review of 70 WQMPs involving up to 3 reviews each and conducting 75 project WQMP post-construction BMP verification/ maintenance inspections as defined in the RFP.

Construction
WSP has more than 20 local professionals' supporting construction storm water permitting and inspection services and has been providing these services to both public and private sector clients throughout southern California for over 30 years. Over the past decade our capability to provide these services has been built on securing contracts with many notable clients such as SDG&E, Imperial Irrigation District, San Diego International Airport, Caltrans, US Naval Facilities Command Southwest Division, Ports of San Diego and Long Beach, Panache Valley Solar Plant, Los Angeles Engineering Inc., cities of Anaheim, Santa Ana and National City and County of Los Angeles. Our staff routinely review construction compliance documents such as SWPPPs, ESCPs, and WPCPs. We have QSD/QSPs available to lead inspections and have a reputation for swift responses to meet client needs for construction inspection support.

Our approach to providing stormwater related construction services is to be proactive and establish expectations with developers and contractors early in the construction process. We intend to work closely with public works staff, building inspectors, and code enforcement offices to prioritize projects for inspections based both on City defined criteria in its LIP (i.e., size, proximity to 303(d) listed water body segment, rainy or dry season, etc.) and based on the history of specific types of projects or contractors.

We have found that clear and upfront communication with private developers helps ensure NPDES issues, if they occur, will be properly addressed in a timely manner.

Areas of expected support to Construction services include:
► Conducting routine and proactive stormwater quality inspections for construction sites that require CGP coverage
► Conducting as-needed inspection assistance to other smaller construction sites based on project prioritization
► Collaboration with public works staff, building inspectors, and code enforcement officers to bring NPDES issues into timely compliance
Our services in support of this task will include 30 inspections, 75 follow-up inspections, and 5 enforcement notices per year as defined in the RFP.

Industrial/Commercial and Municipal Facility Inspections WSP performs thousands of inspections of industrial/commercial and municipal fixed facilities each year.

To ensure thorough and consistent inspections, every WSP inspector completes an extensive training program based on the Orange County Stormwater Programs core competencies program for municipal, industrial, and commercial inspectors. Our training program also includes 40- hour HAZWOPER training for safety and 40 hours of field training with a senior NPDES inspector. WSP's QA/QC program also includes having a senior inspector review each inspection.

City of Laguna Hills I NPDES Program Management and Inspection Services Page I 15