AGENDA
LAKE FOREST CITY COUNCIL
Regular Meeting of the City Council
Tuesday, February 6, 2024
Closed Session 5:30 p.m.
Public Session 6:30 p.m.
City Council Chambers, 100 Civic Center Drive, Lake Forest, California NOTICE: Pursuant to Lake Forest Municipal Code Section 2.04.010, Regular Meetings of the City Council are held the First and Third Tuesday of each month at the hour of 5:30 p.m. for Closed Session matters, if required.
The Public Session of the meeting shall commence at 6:30 p.m. or as soon thereafter as possible. Special Meeting times may be held at a different time and date as listed on the Agenda.
AGENDA DOCUMENT REVIEW: The Agenda and staff reports are available on the Internet at https://www.lakeforestca.gov/en/government/meeting-agendas-and-minutes/meeting-agendas and at the City Clerk’s Office, 100 Civic Center Drive, Lake Forest, California, on the Friday before the meeting on Tuesday.
AGENDA DESCRIPTION: The Agenda descriptions are intended to give notice to members of the public of a general summary of items of business to be transacted or discussed. The listed Recommended Action represents staff’s recommendation. The City Council may take any action which it deems to be appropriate on the agenda item and is not limited in any way by the recommended action.
AGENDA ON SOCIAL MEDIA: This meeting will be streamed through Facebook Live. Comments will not be taken via Facebook Live. The City provides the Facebook Live stream as an additional service to the public.
However, the City cannot guarantee that its network and/or the site will be uninterrupted. The City is not responsible for any interrupted service.
SPECIAL NOTICE REGARDING PUBLIC ACCESS TO THE MEETING AND PUBLIC COMMENT:
PUBLIC PARTICIPATION: In addition to attending in person, members of the public may access the meeting live on our website at https://www.lakeforestca.gov/en/government/meeting-agendas-and-minutes/meeting-agendas.
PUBLIC COMMENT PRIOR TO THE MEETING: Members of the public may submit email comments to [email protected]. Email comments will be uploaded to the agenda packet and made part of the official public record of the meeting and will not be read at the meeting. To ensure staff reviews all comments prior to the City Council meeting, please submit email comments no later than 5:00 p.m. the day of the meeting.
PUBLIC COMMENT: Members of the public may provide comments in-person at the meeting. Public comments will no longer be accepted remotely. Those wishing to provide comments in-person at the meeting will be asked to submit a request to speak to the City Clerk. To ensure prompt distribution to the City Council, members of the public wishing to provide written materials to the City Council should do so prior to the start of the meeting or as close thereto as possible, as time will not be taken during the public comment period to distribute written materials to the City Council.
February 6, 2024 LAKE FOREST CITY COUNCIL AGENDA Page 1 CALL TO ORDER:
Council Members:
Mayor Pro Tem:
Mayor:
City Manager:
City Attorney:
City Clerk:
5:30 p.m.
Doug Cirbo
Robert Pequeño
Benjamin Yu
Scott Voigts
Mark Tettemer
Debra Rose
Matthew E. Richardson
Lisa Berglund
CLOSED SESSION PUBLIC COMMENT:
CLOSED SESSION: At this time, the City Council may recess to Closed Session for conference with Legal Counsel to discuss the items listed below pursuant to Government Code requirements. Any items not concluded by 6:30 p.m. may be continued to the end of the Public Session. At this time, members of the public may address the City Council regarding any items listed on the Closed Session agenda. No action may be taken on items not listed on the agenda unless authorized by law. Comments shall be limited to three minutes per item. Any person wishing to address the City Council on a Closed Session matter is requested to complete a "Request to Speak" form available at agenda public review table near the entrance. The completed form is to be submitted to the City Clerk prior to an individual being heard by the City Council. Whenever possible, lengthy testimony should be presented to the City Council in writing (8 copies) and only pertinent points presented orally.
CLOSED SESSION (Item No. 1)
CLOSED SESSION: At this time, the City Council may recess to Closed Session for conference with Legal Counsel to discuss the items listed below pursuant to Government Code requirements. Any items not concluded by 6:30 p.m. may be continued to the end of the Public Session.
1. CONFERENCE WITH LEGAL COUNSEL- ANTICIPATED LITIGATION
SIGNIFICANT EXPOSURE TO LITIGATION PURSUANT TO
GOVERNMENT CODE SECTION 54956.9(D)(2) NUMBER
OF POTENTIAL CASES: 1
RECOMMENDED ACTION: Conduct closed session.
RECESS: City Council will recess to Closed Session for the purpose of conducting regular City business.
RECONVENE: City Council will reconvene to continue regular City business.
February 6, 2024 LAKE FOREST CITY COUNCIL AGENDA Page 2 PUBLIC SESSION: 6:30 p.m.
PUBLIC SESSION: At this time, the City Council will convene to consider public matters. Those wishing to address the City Council must submit a completed “Request to Speak” form to the City Clerk prior to City Council action.
INVOCATION: The Invocation will be provided by Elder Steve Warner, Calvary Chapel Foothill Ranch.
PLEDGE OF ALLEGIANCE: The Pledge of Allegiance to the Flag of our Country to be led by Boy Scout Troop #918.
CLOSED SESSION REPORT: City Attorney will report on Closed Session.
REPORT FROM STUDENT LIAISON: Report from Aarav Rajpara, Student Liaison from El Toro High School.
PRESENTATIONS (Item Nos. 2 – 3)
2. PROCLAMATION RECOGNIZING LUNAR NEW YEAR
RECOMMENDED ACTION: Present a proclamation recognizing Lunar New Year.
3. 2023 HOLIDAY LIGHTS CONTEST WINNER
RECOMMENDED ACTION: Recognize the 2023 Holiday Lights Contest Winner.
February 6, 2024 LAKE FOREST CITY COUNCIL AGENDA Page 3 CONSENT CALENDAR (Item Nos. 4 – 13)
All matters listed under the Consent Calendar are considered routine and will be enacted by one vote. There will be no separate discussion of these items unless Members of the City Council, the public, or staff request specific items be removed from the Consent Calendar for separate action.
4. MOTION TO WAIVE READING OF RESOLUTIONS AND ORDINANCES RECOMMENDED ACTION: Said Ordinances and Resolutions which appear on the public agenda shall be determined to have been read by title and further reading waived.
5. MINUTES OF THE REGULAR MEETING OF THE CITY COUNCIL HELD ON JANUARY 16, 2024
RECOMMENDED ACTION: Approve as submitted.
6. QUARTERLY TREASURER'S REPORT - QUARTER ENDED DECEMBER 31, 2023
RECOMMENDED ACTION: Receive and file.
February 6, 2024 LAKE FOREST CITY COUNCIL AGENDA Page 4
PUBLIC COMMENTS
Members of the public can submit an e-comment to [email protected]. E-comments will not be read at the meeting.
Members of the public may also provide comments in-person at the meeting or remotely. Those wishing to provide comments in- person at the meeting will be asked to submit a request to speak to the City Clerk.
7. SECOND READING AND ADOPTION OF ORDINANCE AMENDING TITLE 12 OF THE LAKE FOREST MUNICIPAL CODE RELATING TO
ENFORCEMENT OF STREET SWEEPING AND PERMIT PARKING
RESTRICTIONS
RECOMMENDED ACTION: Conduct second reading of and adopt an Ordinance entitled: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE FOREST, CALIFORNIA, AMENDING CHAPTER 12.16 OF TITLE 12 OF THE LAKE FOREST MUNICIPAL CODE, RELATING TO
ENFORCEMENT OF STREET SWEEPING AND PERMIT PARKING
RESTRICTIONS
8. SECOND READING AND ADOPTION OF ORDINANCE MAKING
VARIOUS UPDATES TO THE LAKE FOREST MUNICIPAL CODE
RECOMMENDED ACTION: Conduct second reading of and adopt an Ordinance entitled: AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF LAKE FOREST, CALIFORNIA, AMENDING VARIOUS SECTIONS
OF THE LAKE FOREST MUNICIPAL CODE TO MAKE MINOR
AMENDMENTS, CORRECTIONS, AND CLEAN-UP REFINEMENTS AND
DETERMINING THE ORDINANCE TO BE EXEMPT FROM CEQA.
9. FIRST AMENDMENT TO PROFESSIONAL CONSULTANT SERVICES
AGREEMENT WITH THERESA DOBBS (DBA HOUSING
REHABILITATION CONSULTING SERVICES) FOR HOUSING
REHABILITATION CONSULTING SERVICES
RECOMMENDED ACTION: 1. Approve the proposed First Amendment to the Professional Consultant Services Agreement with Theresa Dobbs dba Housing Rehabilitation Consulting Services. 2. Authorize the Mayor to execute, and the City Clerk to attest, the First Amendment to the Agreement with Theresa Dobbs dba Housing Rehabilitation Consulting Services, substantially in the form attached.
10. PROFESSIONAL CONSULTING SERVICES CONTRACT AWARD FOR
ENVIRONMENTAL CONSULTING SERVICES RELATED TO
ENVIRONMENTAL IMPACT REPORTS (EIRS)
February 6, 2024 LAKE FOREST CITY COUNCIL AGENDA Page 5 RECOMMENDED ACTION: 1. Award a Professional Consulting Services Agreement in the amount of $873,540.88 to LSA Associates, Inc. (“LSA”), of Irvine, California, to provide Environmental Consulting Services related to Environmental Impact Reports (EIRs). The EIRs are for three projects (Site Development Permits 08-23-5653, 09-23-5658, and 06-21-5437) located at 26110, 26140, 26160, 26250, and 26200 Enterprise Way. 2.
Authorize the Mayor to sign and the City Clerk to attest to the Professional Consulting Services Agreement with LSA, substantially in the form attached. 3. Adopt a Resolution entitled: RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF LAKE FOREST, CALIFORNIA, AMENDING THE 2023-2025 OPERATING BUDGET; AMENDING APPROPRIATIONS FOR FISCAL YEAR 2023-24.
11. SECOND AMENDMENT TO AGREEMENT WITH INTERWEST
CONSULTING GROUP, INC. FOR BUILDING AND SAFETY SERVICES RECOMMENDED ACTION: 1. Approve the Second Amendment to the Professional Services Agreement with Interwest Consulting Group, Inc. (“Interwest”) contract for Building and Safety Services to extend the term an additional year, update hourly billing rates and service processes under the agreement, and increase total compensation in the amount of $500,000 for a total not-to-exceed compensation amount of $6,340,000. 2. Authorize the Mayor to sign, and the City Clerk to attest, the Second Amendment to the Professional Services Agreement with Interwest, substantially in the form attached.
12. ACCEPTANCE OF PORTOLA CENTER IMPROVEMENTS AND RELEASE OF BONDS FOR TRACT 18096
RECOMMENDED ACTION: 1. Accept as complete the tract improvements and monumentation constructed by Portola Senior Housing Associates, LP for Tract 18096. 2. Authorize the City Clerk to release the Subdivision Faithful Performance and Subdivision Labor and Materials Bonds, both in the amount $576,068 and the Subdivision Improvement Monumentation Bond in the amount of $750. 3. Authorize the City Clerk to release the Subdivision Improvement Warranty Bond in the amount of $57,606.90 one year after acceptance of the public improvements for Tract 18096 with concurrence of the Director of Public Works/City Engineer.
February 6, 2024 LAKE FOREST CITY COUNCIL AGENDA Page 6
13. AWARD CONSTRUCTION CONTRACT FOR TRABUCO ROAD & LAKE
FOREST DRIVE REHABILITATION, ASCENSION MEDIAN
IMPROVEMENTS, TRABUCO TRAIL REHABILITATION (PW 24S03, PW 23S05A AND PW 24P16)
RECOMMENDED ACTION: 1. Approve contract documents for construction of Trabuco Road and Lake Forest Drive Rehabilitation (PW 23S05A), Ascension Median Improvements (PW 24S03) and Trabuco Trail Rehabilitation (PW24P16). 2. Adopt a Resolution entitled: A RESOLUTION
OF THE CITY COUNCIL OF THE CITY OF LAKE FOREST, CALIFORNIA, AMENDING THE 2023-2030 CAPITAL IMPROVEMENT PLAN;
AMENDING APPROPRIATIONS FOR FISCAL YEAR 2023-24. 3. Award a
contract in the amount of $4,668,668 to All American Asphalt, Inc. 4. Reject all other bids received and authorize return of the bid bonds upon receipt of the executed contract documents from All American Asphalt, Inc. 5.
Authorize the Mayor to sign, and the City Clerk to attest the contract with All American Asphalt, Inc.
PUBLIC HEARING(S) (Item No. 14)
Public Hearings are scheduled for a time certain of 6:30 p.m. or as soon thereafter as possible. City Council, when considering the matter scheduled for hearing, will take the following actions: 1. Open the Public Hearing. 2. Receive staff report. 3. Accept public testimony. 4. City Council comments and questions. 5. Close the Public Hearing and take appropriate action.
14. UPDATE FINES FOR PARKING VIOLATIONS
RECOMMENDED ACTION: 1. Conduct the noticed public hearing.
2. Adopt a Resolution entitled: A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF LAKE FOREST, CALIFORNIA, UPDATING FINES FOR PARKING VIOLATIONS.
DISCUSSION/ACTION ITEMS (Item Nos. 15 – 16)
The following matters are for City Council consideration/discussion/action. Members of the public may have the opportunity to address these items if they wish to do so. Please complete the Request to Speak form and give to the City Clerk.
15. MEMBERSHIP IN ASSOCIATION OF CALIFORNIA CITIES, ORANGE COUNTY (CONTINUED FROM THE JANUARY 16, 2024, CITY COUNCIL February 6, 2024 LAKE FOREST CITY COUNCIL AGENDA Page 7
MEETING)
RECOMMENDED ACTION: Receive and file.
16. FUTURE PROGRAMMING FOR THE CITY OF LAKE FOREST'S
STRATEGIC ECONOMIC INVESTMENT PROGRAM
RECOMMENDED ACTION: 1. Direct staff to prepare an allocation of $50,000 to fund Small Business Development Center programs. 2. Direct staff to combine the budgets for Restaurant Industry Assistance and Other Impacted Industry Assistance. 3. Direct staff to develop program guidelines for a bulk gift card purchasing program for local employers for future consideration.
CITY MANAGER'S REPORT
At this time, the City Manager may comment on agenda and non-agenda items; and report on items of interest to the City Council and community.
CITY COUNCIL COMMENTS
At this time, City Council Members may comment on agenda or non-agenda matters. No discussion may take place on any item not appearing on the posted agenda. Council Members may ask a question for clarification, respond to statements made or questions posed by the public, make a brief announcement, or make a brief report on his or her own activities. In addition, the City Council may refer to staff or other resources for factual information, request staff to report back at a subsequent meeting or direct staff to place a matter of business on a future agenda. No action may be taken on non-agenda matters unless authorized by law (Government Code Section 54954.2).
Council Member Cirbo:
Council Member Pequeño:
Council Member Yu:
Mayor Pro Tem Voigts:
Mayor Tettemer:
February 6, 2024 LAKE FOREST CITY COUNCIL AGENDA Page 8
ADJOURNMENT
In compliance with the Americans With Disabilities Act, if you need special assistance to participate in this Meeting, including auxiliary aids or services, you should contact the Office of the City Clerk at (949) 461-3400.
Notification 48 hours prior to the Meeting will enable the City to make reasonable arrangements to assure accessibility to this meeting. The City Council agenda and agenda back-up materials can be obtained from the Office of the City Clerk on the Friday prior to the City Council meeting. Copies of all Agendas, Staff Reports and Supporting Materials can also be found on the City’s website – https://www.lakeforestca.gov/129/Agendas.
Agenda and agenda packets, if requested, will be made available in an appropriate alternative format to persons with a disability as required by the Americans With Disabilities Act. Copies of the agenda are provided at no cost and agenda back-up materials are available at the per page copy cost.
The City of Lake Forest mailing address is City Council Chambers, 100 Civic Center Drive, Lake Forest, California.
Phone: (949) 461-3400. FAX (949) 461-3511
CERTIFICATION: I, Lisa Berglund, City Clerk of the City of Lake Forest, California, hereby certify that the foregoing agenda was posted for public review at City Hall on February 1, 2024.
Lisa Berglund
City Clerk
February 6, 2024 LAKE FOREST CITY COUNCIL AGENDA Page 9
CITY COUNCIL AGENDA REPORT
MEETING DATE: 2/6/2024
DEPARTMENT: City Clerk
SUBJECT:
PROCLAMATION RECOGNIZING LUNAR NEW YEAR
RECOMMENDED ACTION(S):
Present a proclamation recognizing Lunar New Year.
EXECUTIVE SUMMARY:
During the January 16, 2024, City Council meeting, Council Member Yu received consensus to recognize Lunar New Year (Attachment 1). The Lunar New Year is the celebration of the arrival of spring and the beginning of the new year on the lunisolar calendar. It is traditionally a time for feasting and renewing community ties. Commonly known as the Spring Festival in China, Lunar New Year is a fifteen-day celebration. This year, Lunar New Year begins on February 10, 2024, and is celebrated by millions of Asian and Pacific Islander Americans.
Staff recommends recognizing Lunar New Year with a proclamation (Attachment 2).
FISCAL IMPACT:
There is no fiscal impact associated with the recommendation.
ATTACHMENTS:
1. Unofficial Minute Except, January 16, 2024, City Council Meeting, Council Comments
2. Proclamation
Initiated By: Thy Merritt, Assistant City Clerk
Submitted By: Lisa Berglund, City Clerk
Approved By: Debra Rose, City Manager
Item: 2
10 Attachment 1
Item: 2
11 UNOFFICIAL DRAFT MINUTE EXCERPT
LAKE FOREST REGULAR CITY COUNCIL MEETING
JANUARY 16, 2024
______________________________________________________________________
Council Member Yu:
Council Member Yu expressed that day laborers be
treated with kindness and compassion. He reported
on criminal activity around his neighborhood and
thanked Orange County Sheriff’s Department for their
prompt response. He informed everyone of a Lunar
New Year celebration at the Civic Center on February
10 and requested consensus to bring a proclamation
to recognize Lunar New Year.
Mayor Tettemer:
Mayor Tettemer provided consensus to Council
Member Yu’s request for a proclamation recognizing
Lunar New Year.
Item: 2
12 Attachment 2
Item: 2
13 CITY OF LAKE FOREST PROCLAMATION
Lunar New Year – February 10, 2024
WHEREAS, Lunar New Year, a time of feasting and renewal of family and community ties, falls annually on the second new moon following the winter solstice marking the beginning of the lunisolar calendar; and
WHEREAS, various Asian Pacific Islander cultures, including, Chinese, Indonesian, Korean, Malaysian, Singaporean, Vietnamese, and many others, traditionally celebrate the Lunar New Year in a variety of ways worldwide; and
WHEREAS, on August 24, 2018, Governor Edmund G. Brown Jr. signed Senate Bill No. 892 officially recognizing and calling for the annual proclamation of Lunar New Year in California, and encouraging all public schools and educational institutions to conduct exercises recognizing the traditions and cultural significance of the Lunar New Year; and
WHEREAS, in 2024, the Year of the Dragon will be observed in accordance with the lunar zodiac; and WHEREAS, the celebration of Lunar New Year events in Lake Forest and throughout the region illustrates our rich cultural history.
NOW, THEREFORE, the City Council of the City of Lake Forest, California, does hereby proclaim February 10, 2024, as the commencement of the fifteen -day celebration known as Lunar New Year and encourages Lake Forest residents to celebrate this special occasion.
__________________________
MARK TETTEMER
Mayor
__________________________
SCOTT VOIGTS
Mayor Pro Tem
__________________________
ROBERT PEQUEÑO
Council Member
__________________________
DOUG CIRBO
Council Member
__________________________
BENJAMIN YU
Council Member
Item: 2
14 CITY COUNCIL AGENDA REPORT
MEETING DATE: 2/6/2024
DEPARTMENT: Management Services
SUBJECT:
2023 HOLIDAY LIGHTS CONTEST WINNER
RECOMMENDED ACTION(S):
Recognize the 2023 Holiday Lights Contest Winner.
EXECUTIVE SUMMARY:
The City of Lake Forest hosts an annual Holiday Lights Contest in which residents can both showcase their creative, festive spirit and vote for their favorites in the community. The contest is held online in December and allows participants to submit photos of their homes, revealing their festive lights, props, and decor. Contest voters may then give a rating of 1-5 stars on each contestant’s submission. The competition is advertised on the City's social media platforms, including Instagram, Nextdoor, Facebook, and Twitter.
The 2023 Holiday Lights Contest featured 17 entries, each displaying the resident's enthusiasm for the holiday season. Staff created a detailed map highlighting the locations of the contest entries. This helped boost voter participation and provided a holiday-themed activity for families and individuals to enjoy. The contest captured the community's attention with more than 1,900 voters.
Among the array of festive exhibits, the "Grinch Who Almost Stole Christmas" was voted the “Best in Show,” and Linda Macpherson was announced as the winner. The City would like to formally recognize Linda Macpherson's contribution to the community's festive atmosphere and achievement in the annual Holiday Lights Contest by presenting her with a Certificate of Recognition (Attachment).
FISCAL IMPACT:
There is no fiscal impact associated with the recommended action.
Item: 3
15 ATTACHMENTS:
Certificate of Recognition
Initiated By: Noel Gomez, Communications and Marketing Specialist Submitted By: Sean McGovern, Deputy City Manager
Approved By: Debra Rose, City Manager
Item: 3
16 5
2 6
9 7
ATTACHMENT
Item: 3
17 5
2 6
9 7
CERTIFICATE OF
FIRST PLACE WINNER
THE LAKE FOREST CITY COUNCIL
HEREBY RECOGNIZES
LINDA
MACPHERSON
FOR WINNING THE
2023 HOLIDAY LIGHTS CONTEST
February 6, 2024
_______________________________
MARK TETTEMER
Mayor__________________________
SCOTT VOIGTS
Mayor Pro Tem
__________________________
ROBERT PEQUEÑO
Council Member
__________________________
DOUG CIRBO
Council Member
__________________________
BENJAMIN YU
Council Member
Item: 3
18 CITY COUNCIL AGENDA REPORT
MEETING DATE: 2/6/2024
DEPARTMENT: City Clerk
SUBJECT:
MOTION TO WAIVE READING OF RESOLUTIONS AND ORDINANCES
RECOMMENDED ACTION(S):
Said Ordinances and Resolutions which appear on the public agenda shall be determined to have been read by title and further reading waived.
EXECUTIVE SUMMARY:
California Government Code 36934 allows titles of ordinances and resolutions to be waived.
FISCAL IMPACT:
There is minimal fiscal impact associated with the recommended action.
ATTACHMENTS:
None.
Submitted By: Lisa Berglund, MPA, City Clerk
Approved By: Debra Rose, City Manager
14 Item: 4
19 MINUTES OF A REGULAR MEETING
OF THE CITY COUNCIL OF THE CITY OF LAKE FOREST
The regular meeting of the City Council of the City of Lake Forest held Tuesday, January 16, 2024, at the Lake Forest City Council Chambers, 100 Civic Center Drive, Lake Forest, California, was called to order at 5:30 p.m. with all members present.
ROLL CALL:
Council Members:
Robert Pequeño
Scott Voigts
Benjamin Yu
Mayor Pro Tem: Mark Tettemer
Mayor: Doug Cirbo
City Manager: Debra Rose
City Attorney: Matthew E. Richardson
City Clerk: Lisa Berglund
CLOSED SESSION
1. CONFERENCE WITH LEGAL COUNSEL- EXISTING LITIGATION
Existing litigation pursuant to Government Code section 54956.9(d)(1) Number of cases: 1
Case Name: Andy Atiyeh, an individual, et. al. v. City of Lake Forest Case Number: OCSC 30-2023-01365633-CU-BC-CJC
ACTION: Closed session was conducted.
RECESS: City Council recessed to Closed Session for the purpose of conducting regular City business.
At 6:30 p.m. Mayor Tettemer reconvened Open Session with all members present.
CLOSED SESSION REPORT: City Attorney Richardson had no action to report.
PUBLIC COMMENT: Andrew O’Connor expressed his concerns with Best, Best, and Krieger.
INVOCATION: The Invocation was provided by Chaplain Serena Cummins, Orange County Sheriff’s Department.
PLEDGE OF ALLEGIANCE: The Pledge of Allegiance to the Flag of our Country was led by Girl Scout Troops #7601 and #2519.
PRESENTATIONS: (Item Nos. 2 – 3)
MOTION: It was moved by Mayor Pro Tem Voigts, seconded by Council Member Yu, to Item: 5
20 January 16, 2024 LAKE FOREST CITY COUNCIL MEETING MINUTES Page 2 of 6 approve Presentation Item Nos. 2 – 3. The motion was carried by a vote of 5/0.
2. RELIGIOUS FREEDOM DAY
Council Member Cirbo provided an introduction to this item and invited President of Gateways to Better Education, Eric Buehrer to receive the proclamation. No public comment was offered.
ACTION: The proclamation was presented and adopted.
3. UPDATE ON IRVINE RANCH WATER DISTRICT ACTIVITIES City Manager Rose introduced this item and invited Irvine Ranch Water District Board Member John Withers to provide a presentation. Andrew O’Connor offered public comment and expressed concern that a presentation for Southern California Edison was not made available prior to the meeting. Council member questions were asked and answered.
ACTION: A presentation from Irvine Ranch Water District was received.
PUBLIC COMMENTS:
Andrew O’Connor expressed concerns with day laborers.
Loujan Matin expressed appreciation for teachers and requested the City Council consider a resolution for Teacher Appreciation Week.
CONSENT CALENDAR: (Item Nos. 4 – 8)
Item Nos. 6 – 8 were pulled for discussion.
MOTION: It was moved by Mayor Pro Tem Voigts, seconded by Council Member Yu, to approve Consent Calendar Item Nos. 4 – 5. The motion was carried by a vote of 5/0.
4. MOTION TO WAIVE READING OF RESOLUTIONS AND ORDINANCES ACTION: Said Ordinances and Resolutions which appeared on the public agenda were determined to have been read by title and further reading was waived.
5. MINUTES OF THE REGULAR MEETING OF THE CITY COUNCIL HELD ON JANUARY 2, 2024
ACTION: The minutes were approved as submitted.
ITEMS PULLED FOR DISCUSSION: (Item Nos. 6 – 8)
MOTION: It was moved by Mayor Pro Tem Voigts, seconded by Council Member Yu, Item: 5
21 January 16, 2024 LAKE FOREST CITY COUNCIL MEETING MINUTES Page 3 of 6 to approve Consent Calendar Item Nos. 6 – 8. The motion was carried by a vote of 5/0.
6. CERTIFICATION OF WARRANT REGISTER
STATEMENT READ INTO THE RECORD:
Mayor Pro Tem Voigts: There is a warrant on the register to the County of Orange. I am an employee of the County of Orange, but I do not work for the department that generated the warrant. Because the County of Orange is a public agency and because I do not work for the department in question, I have determined that I have a non-interest in this warrant and will vote on this item.
Mayor Tettemer: There are warrants on the register to the Irvine Ranch Water District. I am an employee of the Irvine Ranch Water District, but I do not work for the department that generated these warrants. Because the Irvine Ranch Water District is a public agency and because I do not work for the department in question, I have determined that I have a non-interest in these warrants and will vote on these warrants.
Andrew O’Connor offered public comment and expressed concerns with costs for several vendors.
ACTION: The warrant register in the amount of $6,537,239.11 was approved.
7. AWARD OF CONTRACT FOR PROFESSIONAL CONSULTING SERVICES – SUSTAINABILITY IMPLEMENTATION PROGRAM (“SIP”)
Andrew O’Connor offered public comment and expressed concerns with the cost of services from De Novo Planning Group. Mayor Tettemer asked for clarification on new State mandates that require a Sustainability Implementation Program for the City’s General Plan. City Manager Rose reiterated that services provided by De Novo fulfilled those State requirements.
ACTION: 1. A contract in the amount of $85,540 was awarded to De Novo Planning Group for Professional Consulting Services – Sustainability Implementation Program (“SIP”). 2. The Mayor was authorized to sign and the City Clerk to attest to the agreement with De Novo Planning Group substantially in the form attached.
8. CONSIDERATION OF SIXTH FUNDING PHASE FOR THE CITY’S SHOP & DINE COMMUNITY GIFT CARD PROGRAM WITH YIFTEE, INC.
Andrew O’Connor offered public comment and expressed concerns with the cost of the agreement with Yiftee, Inc. Mayor Tettemer asked for clarification on funds allocated for this program. City Manager Rose clarified that funds for this program came from the City’s General Fund in an amount equal to a portion of Item: 5
22 January 16, 2024 LAKE FOREST CITY COUNCIL MEETING MINUTES Page 4 of 6 American Rescue Plan Act funds the City received and utilized pursuant to federal regulations.
ACTION: 1. The City Council authorized the City Manager to enter into the attached BOGO Campaign Quickstart Agreement with Yiftee, Inc. and solely include the $50 and $100 gift card options in the Shop & Dine Community Gift Card Program. 2. A Resolution Entitled: A RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF LAKE FOREST, CALIFORNIA, AMENDING THE 2023-2025 OPERATING BUDGET; AMENDING APPROPRIATIONS FOR FISCAL YEAR 2023-24 was adopted.
DISCUSSION/ACTION ITEMS: (Item Nos. 9 – 13)
9. MEMBERSHIP IN ASSOCIATION OF CALIFORNIA CITIES, ORANGE COUNTY
City Manager Rose introduced this item and invited City Clerk Berglund to provide a presentation. Director of Member Services for ACC-OC, Kathryn Morrison, provided information. No public comment was offered. Council Member Pequeño recommended withdrawing membership. Mayor Pro Tem Voigts made a motion to renew membership for 2024 and to re-evaluate in one year. No second was heard. Council Member Yu made a motion to table the item to a later date. Council Member Pequeño seconded the motion. Council Member Cirbo suggested a workshop to further this discussion. Mayor Tettemer suggested to instead have staff distribute information to Council members in advance.
MOTION: It was moved by Council Member Yu, seconded by Council Member Pequeño, to table the item to a date to be determined by staff. The motion was carried by a vote of 5/0.
10. ADOPTION OF REVISED VERSIONS OF CITY COUNCIL POLICIES City Manager Rose introduced this item and invited City Clerk Berglund to provide a presentation. Andrew O’Connor offered public comment and expressed concerns with several of the policies. Mayor Pro Tem Voigts made a motion to adopt administrative changes to the policies. Council Member Yu seconded the motion. Council Member Cirbo asked several questions on recognizing highly meritorious acts as a Council and as an individual. City Attorney Richardson clarified what was appropriate pursuant to the City’s policies. Mayor Tettemer suggested tabling the discussion on giving additional gifts to highly meritorious acts to a later date.
MOTION: It was moved by Mayor Pro Tem Voigts, seconded by Council Member Yu, to adopt the administrative revisions to the Resolutions and Recognitions policy. The motion was carried by a vote of 5/0.
Item: 5
23 January 16, 2024 LAKE FOREST CITY COUNCIL MEETING MINUTES Page 5 of 6
11. STREET SWEEPING AND PERMIT PARKING RESTRICTIONS
ENFORCEMENT ORDINANCE
City Manager Rose introduced this item and invited Senior Management Analyst De La Paz to provide a presentation. Mark Greiner offered public comment and expressed concerns with street sweeping on his street, Osterman Road and Pittsford Drive. Council member questions were asked and answered.
MOTION: It was moved by Mayor Pro Tem Voigts, seconded by Council Member Yu, to introduce for first reading an Ordinance entitled: AN
ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE FOREST, CALIFORNIA, AMENDING CHAPTER 12.16 OF TITLE 12 OF THE LAKE
FOREST MUNICIPAL CODE, RELATING TO ENFORCEMENT OF STREET SWEEPING AND PERMIT PARKING RESTRICTIONS. The motion was carried by a vote of 5/0.
12. CONSIDERATION OF ORDINANCE MAKING VARIOUS UPDATES TO THE
LAKE FOREST MUNICIPAL CODE
City Manager Rose introduced this item and invited Assistant to the City Manager Ruelas to provide a presentation. No public comment was offered.
Council Member Yu asked the Council to consider adding language related to emotional support animals to the Municipal Code. Mayor Tettemer asked for clarification on the definition of an emotional support animal. City Attorney Richardson clarified that under the American Disabilities Act emotional support animals are not considered service animals. Discussion ensued and Council members agreed to keep the language as presented by staff.
MOTION: It was moved by Mayor Pro Tem Voigts, seconded by Council Member Yu, to introduce for first reading an Ordinance entitled: AN
ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE FOREST,
CALIFORNIA, AMENDING VARIOUS SECTIONS OF THE LAKE FOREST
MUNICIPAL CODE TO MAKE MINOR AMENDMENTS, CORRECTIONS, AND
CLEAN-UP REFINEMENTS AND DETERMINING THE ORDINANCE TO BE EXEMPT FROM CEQA. The motion was carried by a vote of 5/0.
13. QUARTERLY CAPITAL IMPROVEMENT PROGRAM UPDATE
City Manager Rose introduced this item and invited Principal Civil Engineer Mokarram to provide a presentation. No public comment was offered. Council member questions were asked and answered.
ACTION: The update was received and filed.
Item: 5
24 January 16, 2024 LAKE FOREST CITY COUNCIL MEETING MINUTES Page 6 of 6 CITY MANAGER'S REPORT: City Manager Rose had nothing further to report.
CITY COUNCIL COMMENTS:
Council Member Cirbo: Council Member Cirbo expressed that he wanted to proceed with recognizing teachers during Teacher
Appreciation Week in May. Mayor Tettemer suggested
that Mr. Matin provide informational materials to staff related to Teacher Appreciation Week, and that staff
in turn pass that information along to the Mayor and
City Council.
Council Member Pequeño: Council Member Pequeño provided information on the City’s history with day laborers and the legal definition of loitering. He also reported on his attendance at the Grand Opening event of Bubbly Paws and the Amigos
De La Colina Annual Breakfast. He thanked staff for
all their hard work.
Council Member Yu: Council Member Yu expressed that day laborers be treated with kindness and compassion. He reported
on criminal activity around his neighborhood and
thanked Orange County Sheriff’s Department for their
prompt response. He informed everyone of a Lunar
New Year celebration at the Civic Center on February
10 and requested consensus to bring a proclamation
to recognize Lunar New Year.
Mayor Pro Tem Voigts: Mayor Pro Tem Voigts informed everyone of the opening of two new businesses in Lake Forest, Bubbly
Paws and a new dance studio called The Den.
Mayor Tettemer: Mayor Tettemer provided consensus to Council Member Yu’s request for a proclamation recognizing
Lunar New Year.
ADJOURNMENT: The Regular Meeting of the City Council was adjourned at 8:41 p.m.
Respectfully submitted:
APPROVED:
LISA BERGLUND DOUG CIRBO
Item: 5
25 January 16, 2024 LAKE FOREST CITY COUNCIL MEETING MINUTES Page 7 of 6
CITY CLERK MAYOR
Item: 5
26 CITY COUNCIL AGENDA REPORT
MEETING DATE: 2/6/2024
DEPARTMENT: Finance
SUBJECT:
QUARTERLY TREASURER'S REPORT - QUARTER ENDED DECEMBER 31, 2023
RECOMMENDED ACTION(S):
Receive and file.
EXECUTIVE SUMMARY:
The Treasurer's Report for the quarter ended December 31, 2023, is attached.
There are no exceptions to the Investment Policy. Total cash and investments equal $198.6 million for the period. Quarterly reports are presented to the City Council to keep the City Council apprised of the status of the City’s investment holdings and demonstrate compliance with the City’s Investment Policy. The attached report presents the status of the City’s investment portfolio for the quarter ended December 31, 2023.
The City contracts with Chandler Asset Management to provide investment management services.
Investment Portfolio
The City’s balances consist of the following:
Type September
30, 2023
December 31,
2023
Chandler Asset Management Portfolio 140.8 142.9
Local Agency Investment Fund (LAIF) 0.5 0.5
California Asset Management Program
(CAMP) 45.2 46.0
Orange County Investment Pool (OCIP) 0.1 0.0
Operating Bank Balance – US Bank 7.1 9.2
Total 193.7 198.6
*The balances are shown as book value and can be viewed on page 37 in the Holdings Report section of the attached Quarterly Treasurer’s Report.
Item: 6
27 The attached Quarterly report attests to our alignment with the Statement of Investment Policy, demonstrating full compliance.
FISCAL IMPACT:
There is no fiscal impact associated with the recommended action.
ATTACHMENTS:
Quarterly Treasurer’s Report
Initiated By: Amy Lewis, Assistant Director of Finance
Submitted By: Kevin Shirah, Director of Finance/City Treasurer Approved By: Debra Rose, City Manager
Item: 6
28 ATTACHMENT
Item: 6
29 City of Lake Forest Investment Statement of Compliance Quarter Ending December 31, 2023
1. I hereby certify that the investments are in compliance with the Statement of Investment Policy approved by the City Council on April 18, 2023.
2. Although any investment is impacted by market conditions, the current investments are structured to reduce the impact of market conditions.
3. The market values for the investments are provided by the City’s investment management service providers, Chandler Asset Management, US Bank, Local Agency Investment Fund, California Asset Management Program and Orange County Investment Pool.
4. The City has the ability to meet its budgeted expenditures for the next six months.
________
_______________________
Kevin R. Shirah
Director of Finance/City Treasurer
Item: 6
30 CHANDLER ASSET MANAGEMENT, INC. | 800.317.4747 | www.chandlerasset.com
INVESTMENT REPORT
Period Ending December 31, 2023
City of Lake Forest
Item: 6
31 SECTION 1 Economic Update
SECTION 2 Account Profile
SECTION 3 Consolidated Information
SECTION 4 Portfolio Holdings
SECTION 5 Transactions
Table of Contents As of December 31, 2023
1 Item: 6
32 SECTION |
Section 1 |
Economic Update
2 Item: 6
33 Economic Update
▪
▪
▪
Recent economic data has shown above trend growth fueled by a rise in consumer spending and a continuing healthy US job market.
Inflationary trends are subsiding, but core levels remain above the Fed’s target. Given the cumulative effects of restrictive monetary policy and tighter financial conditions, we believe the economy will gradually soften and the Fed will loosen monetary policy in 2024.
As expected at the December meeting, the Federal Open Market Committee voted unanimouslyto leave the Federal Funds rate unchanged at a target range of 5.25 - 5.50%. Fed Chair Powell signaled that the federal funds rate is likely at or near its peak. The new Summary of Economic Projections reflected Core PCE inflation reaching the target 2% level in 2026 without a significant increase in unemployment.We believe the FOMC will loosen monetary policy in mid-2024 as inflation and economic growth continue to moderate.
US Treasury rates fell steeply across the yield curve in December on decelerating inflation readings and a more dovish Federal Reserve outlook. The 2-year Treasury yield declined43 basis points to 4.25%, the 5-year Treasury yield dropped42 basis points to 3.85%, and the 10- year Treasury yield decreased 45 basis points to 3.88%. The inversion between the 2-year Treasury yield and 10-year Treasury yield widened to -37 basis points at December month-end versus -35 basis points at November month-end. The spread between the 2-year Treasury and 10-year Treasury yield one year ago was -55 basis points. The inversion between 3-month and 10-year Treasuries widened to - 146 basis points in December from -107 basis points in November. Interest rates peaked in 2023 followed by the Fed’s dovish pivot late in the year, resulting in a decline in yields across the curve and signaling less restrictive monetary policy in 2024. The shape of the yield curve indicates that the probability of recession persists. 3 Item: 6
34 Employment
-400
-200
0 200
400
600
800
1,000MOM Change In Thousands (000's)
Nonfarm Payroll (000's)
Non-farm Payroll (000's)
3-month average (000's)
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
Unemployment Rate
Underemployment Rate (U6)
Unemployment Rate (U3)
Rate (%)
The U.S. economy added 216,000 jobsin December, exceeding consensus expectations of 175,000, and the last two months were revised down by 71,000 jobs. Leading sectors included government, leisure and hospitality, and healthcare. The trajectory of job creation is gradually moderating, with the three-month moving average payrolls at 165,000 and the six-month moving average at 193,000. The unemployment rate remained unchangedat 3.7%, and the labor participation rate decreased to 62.5% from 62.8%, falling well below the pre-pandemic level of 63.3%. The U-6 underemployment rate, which includes those who are marginally attached to the labor force and employed part time for economic reasons rose to 7.1% from 7.0% last month. Average hourly earnings rose 4.1% year-over-year in December, increasing from a 4.0% gain last month. Employment remains strong by historical standards, but data are trending toward a less robust labor market outlook.
Source: US Department of Labor Source: US Department of Labor 4 Item: 6
35 Job Openings & Labor Turnover Survey
0 2,000
4,000
6,000
8,000
10,000
12,000
14,000
Job Openings
Recession
Historical Average
In Thousands (000's)
The Labor Department’s Job Openings and Labor Turnover Survey (JOLTS) dipped to 8.79 million in November, comparedto an upwardly revised 8.85 million for October. While on a downward trend, job openings still represent a healthy ratio of around 1.4 jobs for each unemployed individual. The quits rate declined to 2.2%, hovering around pre-pandemic levels, down from its high of 3.0% in mid-2022 when labor demand far outstripped supply. While the current level of job openings remains elevated from a historical perspective, the trend is decelerating.
Source: US Department of Labor
5 Item: 6
36 Inflation
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
Consumer Price Index (CPI)
CPI YOY % Change
Core CPI YOY % Change
YOY (%) Change
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
Personal Consumption Expenditures (PCE)
PCE Price Deflator YOY % Change
PCE Core Deflator YOY % Change
Fed Target
YOY (%) Change
The Consumer Price Index (CPI) increased 0.3% month-over-month and 3.4% year-over-yearin December, increasing from 3.1% year-over- year in November. The Core CPI, which excludes volatile food and energy components, was up 0.3% month-over-month and 3.9% year- over-year, down from November. Shelter costs remain elevated, contributingto more than half of the overall increase while motor-vehicle insurance costs jumped by over 20%, the most since 1976. The Personal Consumption Expenditures (PCE) Index eased more than expected in November, as headline inflation fell 0.1% month-over-month and rose 2.6% year-over-year, down from a 2.9% increase in October. Core PCE, the Federal Reserve’s preferred inflation gauge, increased 0.1% month-over-month and deceleratedto 3.2% year-over- year in November from a 3.4% year-over-year increase in October. The trend is moderating, but inflation remains above the Fed's 2% target.
Source: US Department of Labor Source: US Department of Commerce 6 Item: 6
37 Consumer
-30.0%
-20.0%
-10.0%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
Retail Sales YOY % Change
YOY (%) Change
Retail Sales accelerated to 0.6% in December after an unrevised +0.3% in November, exceeding the +0.4% consensus forecast. On a year- over-year basis, Retail Sales growth increased to 5.6% in December from 4.0% in November due to notable gains in categories like food and drinking places, clothing, general merchandise stores, and e-commerce. The Conference Board’s Consumer Confidence Index surged to 110.7 in December from 101.0 in November, far surpassing consensus expectations. Positive ratings of job availability and increased confidence in personal income prospects contributed to the substantial increase. While the consumer has been resilient, dwindling excess savings, rising credit card balances, and the resumption of student loan payments pose potential headwinds to future economic growth.
0 20
40 60
80 100
120
140
160
Index Level
Consumer Confidence
Recession
Source: US Department of Commerce Source: The Conference Board All time high is 144.70 (1/31/00); All time low is 25.30 (2/28/09) 7 Item: 6
38 Leading Indicators of Economic Activity
-25.0%
-20.0%
-15.0%
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
Leading Economic Indicators (LEI)
Recession
YOY (%) Change
-1.00
-0.75
-0.50
-0.25
0.00 0.25
0.50 0.75
1.00 Chicago Fed National Activity Index (CFNAI)
Recession
3 Month Average
The Conference Board’s Leading Economic Index (LEI) fell 0.1% in December, marking the twenty-first consecutive month-over-month decline. The index dropped 6.9% year-over-year. Although the magnitude of the monthly declines has lessened, the Conference Board continues to view the underlying weakness as signaling the risk of recession persists. The Chicago Fed National Activity Index (CFNAI) improved in November to 0.03 from a downwardly revised -0.66 in October. On a 3-month moving average basis, the CFNAI rose slightly to -0.20 in November from -0.26 in October, indicating a rate of growth below the historical average trend.
Source: The Conference Board Source: Federal Reserve Bank of Chicago 8 Item: 6
39 Housing
0 200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2,200
2,400In Thousands of Units
Annualized Housing Starts
Multi Family Housing Starts
Single Family Housing Starts
Housing Starts decreased month-over-monthin December by 4.3% to an annual rate of 1.460 million units. Starts for single-family homes were down 8.6%, while multi-family homes rose 7.5%. Total starts of new homes are up 15.8% year-over-year. Although single family home starts decreased in December, the National Association of Home Builders Market Index increased faster than expectations due to lower mortgage rates providing a boost in confidence for homebuilders. According to Freddie Mac, average 30-year fixed rate mortgage rates declined to 6.61% as of December 28th. Accordingto the Case-Shiller 20-City Home Price Index, housing prices rose 4.9% year-over- year in October, accelerating from a 3.9% year-over-year gain in September. Tight inventories and higher mortgage rates continue to impact affordability.
Source: US Department of Commerce Source: S&P
-20.0%
-16.0%
-12.0%
-8.0%
-4.0%
0.0%
4.0%
8.0%
12.0%
16.0%
20.0%
24.0%
S&P/Case-Shiller 20 City Composite Home Price Index
Recession
YOY (%) Change
9 Item: 6
40 Survey Based Measures
40 45
50 55
60 65
70 Institute of Supply Management (ISM) Surveys
ISM Manufacturing ISM Services
EXPANDING
CONTRACTING
The Institute for Supply Management (ISM) Manufacturing index moved higher to 47.4 in December from 46.7 in November due to improved performance as suppliers are better able to meet lower demand levels. However, this marks the 14th consecutive month of contraction in factory activity below a reading of 50. The ISM Services Index unexpectedly declined to 50.6 in December from 52.7 in November, narrowly remaining in the expansion zone above 50. Notably, the employment component of the index plummeted by 7.4 points to 43.3, entering contractionary territory. This decline was primarily driven by increased layoffs and a softening in consumer demand.
Source: Institute for Supply Management
10 Item: 6
41 Gross Domestic Product (GDP)
Components of GDP 12/22 3/23 6/23 9/23
0.8% 2.5% 0.6% 2.1%
0.6% -1.7% 0.9% 1.7%
0.3% 0.6% 0.0% 0.0%
0.6% 0.3% 0.1% 0.5%
0.3% 0.5% 0.5% 0.5%
2.6% 2.3% 2.1% 4.9%
Personal Consumption Expenditures
Gross Private Domestic Investment
Net Exports and Imports
Federal Government Expenditures
Total
State and Local (Consumption and Gross
Investment)
-40.0%
-30.0%
-20.0%
-10.0%
0.0%
10.0%
20.0%
30.0%
40.0%
Gross Domestic Product (GDP)
GDP QOQ % Change
GDP YOY % Change
Source: US Department of Commerce Source: US Department of Commerce According to the third estimate, third quarter GDP grew at an annualized rate of 4.9%, revised down from the second estimate of 5.2%, with the downward revisions driven primarily by personal consumption expenditures. The consensus estimate calls for a marked slowing to 1.2% in the fourth quarter and 2.4% for full year 2023. 11 Item: 6
42 Federal Reserve
Source: Federal Reserve Source: Bloomberg
0 1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
10,000,000
Federal Reserve Balance Sheet Assets
Recession
In $ millions
As expected at the December meeting, the Federal Open Market Committee voted unanimously to leave the federal funds rate unchanged at a target range of 5.25-5.50%. The Fed acknowledged inflation eased over the past year while remaining elevated. Fed Chair Powell signaled that the federal funds rate is likely at or near its peak. The Summary of Economic Projections reflected Core PCE inflation reaching the target 2% level in 2026 without a significant increase in unemployment. The median forecast for the federal funds rate declined to 4.6%, implying three quarter-point cuts next year, four in 2025 and three in 2026, placing the federal funds target rate around
2.9% at the end of the forecast horizon. The market interpreted the statement as dovish, with futures contracts pricing in rate cuts sooner and more aggressively than the Fed’s forecasts next year. We believe the FOMC will loosen monetary policy in mid-2024 as inflation and economic growth continue to moderate. Since the Fed began its Quantitative Tightening campaign in June 2022, securities holdings have declined by over $1.3T to approximately $7.7T.
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
Effective Federal Funds Rate
Recession
Yield (%)
12 Item: 6
43 Bond Yields
Source: Bloomberg Source: Bloomberg
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
US Treasury Note Yields
2-Year
5-Year
10-Year
Yield (%)
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
US Treasury Yield Curve
Dec-23
Sep-23
Dec-22
Yield (%)
At the end of December, the 2-year Treasury yield was 18 basis points lower, and the 10-Year Treasury yield was flat, year-over-year. The inversion between the 2-year Treasury yield and 10-year Treasury yield widened to -37 basis points at December month-end versus -35 basis points at November month-end. The average historical spread (since 2003) is about +130 basis points. The inversion between 3- month and 10-year Treasuries widened to -146 basis points in December from -107 basis points in November. The shape of the yield curve indicates that the probability of recession persists. 13 Item: 6
44 Section 2|SECTION |
Section 2 |
Account Profile
14 Item: 6
45 Objectives
Chandler Asset Management Performance Objective
The performance objective for the portfolio is to earn a total rate of return through a market cycle that is equal to or above the return on the benchmark index.
Investment Objectives
The investment objectives for the City of Lake Forest, in order of priority, are to provide safety to ensure the preservation of capital in the overall portfolio, provide sufficient liquidity for cash needs and earn a market rate of return consistent with the investment program.
Strategy
In order to achieve this objective, the portfolio invests in high-quality fixed income securities that comply with the investment policy and all regulations governing the funds.
As of December 31, 2023
15 Item: 6
46 Compliance As of December 31, 2023
Category Standard Comment
U.S. Treasuries No limit; 5 years max maturity Complies Federal Agencies 30% max per Agency/GSE issuer; 20% max agency callable securities; 5 years max maturity Complies Supranational Obligations "AA" rating category or higher by a NRSRO; 30% max; 10% max per issuer; 5 years max maturity; USD denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by IBRD, IFC, or IADB Complies Municipal Securities (CA, Other States) "A" rating category or better by a NRSRO; 30% max; 5% max per issuer; 5 years max maturity Complies Corporate Medium Term Notes
"A" rating category or better by a NRSRO; 30% max; 5% max per issuer; 5 years max maturity; Issued by corporations organized and operating within the U.S. or by depository institutions licensed by the U.S. or any state and operating within the U.S.
Complies
Asset-Backed, Mortgage-Backed,
Mortgage Pass-Through Securities, and
Collateralized Mortgage Obligations
"AA" rating category or better by a NRSRO; 20% max (combined); 5% max per Asset-Backed or Commercial Mortgage security issuer; 5 years max maturity; From issuers not defined in US Treasuries and Federal Agencies sections of the Authorized Investments section of the policy
Complies
Negotiable Certificates of Deposit
(NCD)
The amount of NCD insured up to the FDIC limit does not require any credit ratings; Any amount above FDIC insured limit must be issued by institutions with "A-1" short-term debt rating or better by a NRSRO; or "A" long-term rating category or better by a NRSRO; 30% max (combined with CDARS); 5% max per issuer; 5 years max maturity Complies
Certificate of Deposit Placement
Service (CDARS) 30% max (combination of Certificates of Deposit, including CDARS); 5 years max maturity Complies Time Deposits (Non-negotiable CD/TD) 20% max combined FDIC & Collateralized CD/TD; 5 years max maturity Complies Collateralized Bank Deposits Deposits with financial institutions will be collateralized with pledged securities per California Government Code Complies Banker’s Acceptances A-1 short-term debt rated or better by a NRSRO; or "A" long-term debt rating category or better by a NRSRO; 40% max; 5% max per issuer; 180 days max maturity Complies
Commercial Paper
25% max; 40% max, if the City’s investment assets under management are greater than $100 million (under a provision sunsetting on January 1, 2026); 5% max per issuer; 270 days maturity; 10% max of the outstanding commercial paper of any single issuer; Issued by an entity that meets all of the following conditions in either (a) or (b): a. (i) organized and operating within the U.S. with assets > $500 million; (ii) "A-1" rated or better by a NRSRO; (iii) "A" rating or better by a NRSRO, if issuer has debt obligations; b. (i) organized within the U.S. as a special purpose corporation, trust, or limited liability company; (ii) must have program-wide credit enhancements including, but not limited to, overcollateralization, letters of credit, or a surety bond; (iii) rated "A-1" or better by a NRSRO
Complies
Lake Forest Consolidated
This portfolio is a consolidation of assets managed by Chandler Asset Management and assets managed internally by Client. Chandler relies on Client to provide accurate information for reporting assets and producing this compliance statement. 16 Item: 6
47 Compliance As of December 31, 2023
Category Standard Comment
Money Market Mutual Funds
20% max combined Money Market Mutual Funds and Mutual Funds; 20% max per MMMF; Meet either of the following criteria: (i) Attained highest rating by two NRSROs; or (ii) Retained an investment adviser registered or exempt from SEC registration with > 5 years experience managing MMMF with AUM >$500 million Complies
Mutual Funds
20% max combined Money Market Mutual Funds and Mutual Funds; 10% max per MF; Meet either of the following criteria: (i) Attained highest rating by two NRSROs; or (ii) Retained an investment adviser registered or exempt from SEC registration with > 5 years experience investing in securities authorized by CGC & with AUM >$500 million Complies
Local Agency Investment Fund (LAIF) Maximum amount permitted by LAIF; Not used by investment adviser Complies Local Government Investment Pools No issuer limitation for LGIP; Not used by investment adviser Complies Repurchase Agreements 1 year max maturity; 102% Collateralized; Not used by investment adviser Complies Max Per Issuer 5% max per issuer unless otherwise specified in the policy Complies Duration Approximately equal to the duration (typically +/-20%) of market benchmark Complies Maximum Maturity 5 years max maturity from date of trade settlement, unless the Governing Body has by resolution granted authority to make such an investment Complies
Lake Forest Consolidated
This portfolio is a consolidation of assets managed by Chandler Asset Management and assets managed internally by Client. Chandler relies on Client to provide accurate information for reporting assets and producing this compliance statement. 17 Item: 6
48 Portfolio Characteristics
Lake Forest Operating Reserve
12/31/23 09/30/23
Benchmark* Portfolio Portfolio
Average Maturity (yrs) 2.68 2.96 2.94
Average Modified Duration 2.52 2.47 2.43
Average Purchase Yield n/a 4.79% 4.83%
Average Market Yield 4.20% 4.48% 5.27%
Average Quality** AA+ AA/Aa1 AA+/Aa1
Total Market Value 144,829,246 140,290,697
*ICE BofA 1-5 Yr US Treasury & Agency Index
**Benchmark is a blended rating of S&P, Moody’s, and Fitch. Portfolio is S&P and Moody’s respectively.
As of December 31, 2023
18 Item: 6
49 Lake Forest Operating Reserve
Sector Distribution
ABS
9.3%
Agency
18.9%
CMO
9.1%
Corporate
25.6%
Money Market
Fund
0.5%
Supranational
2.9%
US Treasury
33.6%
December 31, 2023 September 30, 2023
ABS
9.5%
Agency
19.4%
CMO
9.1%
Corporate
24.6%
Money Market
Fund
0.1%
Supranational
2.9%
US Treasury
34.4%
As of December 31, 2023
19 Item: 6
50 AAA AA A <A NR
12/31/23 11.9% 58.4% 17.9% 0.0% 11.8%
09/30/23 17.0% 54.3% 16.8% 0.0% 11.9%
Source: S&P Ratings
December 31, 2023 vs. September 30, 2023
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
AAA AA A <A NR
12/31/23 09/30/23
Quality Distribution
Lake Forest Operating Reserve
As of December 31, 2023
20 Item: 6
51 0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
0 - 0.25 0.25 - 0.50 0.50 - 1 1 - 2 2 - 3 3 - 4 4 - 5 5+ December 31, 2023 September 30, 2023
December 31, 2023 vs. September 30, 2023
0 - 0.25 0.25 - 0.50 0.50 - 1 1 - 2 2 - 3 3 - 4 4 - 5 5+ 12/31/23 0.5% 0.0% 9.8% 33.0% 17.4% 25.8% 13.6% 0.0%
09/30/23 0.1% 2.5% 7.3% 31.7% 24.6% 17.9% 15.8% 0.0%
Lake Forest Operating Reserve
Duration Distribution As of December 31, 2023
21 Item: 6
52 Issue Name Investment Type % Portfolio
Government of United States US Treasury 33.62%
Federal Farm Credit Bank Agency 12.19%
Federal Home Loan Mortgage Corp CMO 9.13%
Federal Home Loan Bank Agency 6.75%
Inter-American Dev Bank Supranational 1.96%
JP Morgan ABS ABS 1.50%
Toronto Dominion Holdings Corporate 1.44%
Royal Bank of Canada Corporate 1.42%
Deere & Company Corporate 1.42%
Bank of America Corp Corporate 1.41%
United Health Group Inc Corporate 1.40%
New York Life Global Funding Corporate 1.40%
Northwestern Mutual Glbl Corporate 1.39%
JP Morgan Chase & Co Corporate 1.39%
Morgan Stanley Corporate 1.38%
Prologis Trust Corporate 1.34%
Duke Energy Field Services Corporate 1.19%
John Deere ABS ABS 1.14%
Amazon.com Inc Corporate 1.06%
Honda ABS ABS 1.04%
Wal-Mart Stores Corporate 1.03%
Toyota ABS ABS 1.03%
American Express ABS ABS 1.03%
Bank of America Credit Card Trust ABS 1.02%
International Finance Corp Supranational 0.92%
GM Financial Securitized Term Auto Trust ABS 0.91%
BMW ABS ABS 0.89%
Verizon Master Trust ABS 0.77%
Guardian Life Global Funding Corporate 0.72%
Toyota Motor Corp Corporate 0.70%
Metlife Inc Corporate 0.70%
National Rural Utilities Corporate 0.70%
Bank of New York Corporate 0.70%
Florida Power and Light Corporate 0.70%
Mass Mutual Insurance Corporate 0.70%
State Street Bank Corporate 0.70%
Realty Income Corp Corporate 0.69%
Prudential Financial Inc Corporate 0.69%
Issuers
Lake Forest Operating Reserve – Account #11083
As of December 31, 2023
22 Item: 6
53 Issue Name Investment Type % Portfolio
Bank of Montreal Chicago Corporate 0.69%
Public Service El & Gas Corporate 0.67%
Federated Govt Obligation Money Market Fund Money Market Fund 0.48% TOTAL 100.00%
Issuers
Lake Forest Operating Reserve – Account #11083
As of December 31, 2023
23 Item: 6
54 2.90%
2.95%
3.00%
3.05%
3.10%
3.15%
3.20%
3.25%
3.30%
3 months Since Inception
Lake Forest Operating Reserve ICE BofA 1-5 Yr US Treasury & Agency Index Total Rate of Return Since Inception July 31, 2023
TOTAL RATE OF RETURN Latest 3 months Since Inception
Lake Forest Operating Reserve 3.27% 3.26%
ICE BofA 1-5 Yr US Treasury & Agency Index 3.09% 3.03%
Investment Performance
Lake Forest Operating Reserve
Total rate of return: A measure of a portfolio’s performance over time. It is the internal rate of return, which equates the beginning value of the portfolio with the ending value; it includes interest earnings, realized and unrealized gains and losses in the portfolio.
As of December 31, 2023
24 Item: 6
55 Portfolio Characteristics
Lake Forest Reporting
12/31/23
Portfolio
09/30/23
Portfolio
Average Maturity (yrs) 0.00 0.00
Modified Duration 0.00 0.00
Average Purchase Yield 5.54% 5.48%
Average Market Yield 5.54% 5.48%
Average Quality* AAA/NR AAA/NR
Total Market Value 46,523,056 46,005,858
*Portfolio is S&P and Moody’s, respectively.
As of December 31, 2023
25 Item: 6
56 Lake Forest Reporting
Sector Distribution
LAIF
1.1%
Local Gov
Investment Pool
98.9%
December 31, 2023 September 30, 2023
LAIF
1.1%
Local Gov
Investment Pool
98.9%
As of December 31, 2023
26 Item: 6
57 Issue Name Investment Type % Portfolio
CAMP Local Gov Investment Pool 98.87%
Local Agency Investment Fund LAIF 1.13%
Orange County Investment Pool Local Gov Investment Pool 0.00% TOTAL 100.00%
Issuers
Lake Forest Reporting – Account #11084
As of December 31, 2023
27 Item: 6
58 SECTION |
Section 3 |
Consolidated Information
28 Item: 6
59 Portfolio Characteristics
Lake Forest Consolidated
12/31/23 09/30/23
Portfolio Portfolio
Average Maturity (yrs) 2.24 2.22
Modified Duration 1.87 1.83
Average Purchase Yield 4.98% 4.99%
Average Market Yield 4.74% 5.32%
Average Quality* AA+/Aa1 AA+/Aa1
Total Market Value 191,352,302 186,296,555
* Portfolio is S&P and Moody’s respectively.
As of December 31, 2023
29 Item: 6
60 Lake Forest Consolidated
Sector Distribution
ABS
7.1%
Agency
14.3%
CMO
6.9%
Corporate
19.4%LAIF
0.3%
Local Gov
Investment Pool
24.0%
Money Market
Fund
0.4%
Supranational
2.2%
US Treasury
25.4%
December 31, 2023 September 30, 2023
ABS
7.2%
Agency
14.6%
CMO
6.9%
Corporate
18.5%LAIF
0.3%
Local Gov
Investment Pool
24.4%
Money Market
Fund
0.1%
Supranational
2.2%
US Treasury
25.9%
As of December 31, 2023
30 Item: 6
61 SECTION |
Section 4 |
Portfolio Holdings
31 Item: 6
62 Holdings Report
Lake Forest Operating Reserve - Account #11083
CUSIP Security Description Par Value/Units Purchase Date Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
ABS
47800AAC4 John Deere Owner Trust 2022-B A3
3.740% Due 02/16/2027
1,175,000.00 06/13/2023
5.34%
1,145,533.21
1,151,571.49
98.38 5.27%
1,155,994.37
1,953.11
0.80%
4,422.88
Aaa / NR
AAA
3.13 1.08
43815JAC7 Honda Auto Receivables Owner 2023-1 A3
5.040% Due 04/21/2027
1,500,000.00 Various
5.21%
1,496,640.63
1,497,234.67
100.13
5.01%
1,501,875.00
2,100.00
1.04%
4,640.33
Aaa / NR
AAA
3.31 1.53
02582JJT8 American Express Credit Trust 2022-2 A
3.390% Due 05/17/2027
930,000.00 06/12/2023
5.09%
901,954.69
909,996.21
97.95 4.99%
910,971.27
1,401.20
0.63%
975.06
NR / AAA
AAA
3.38 1.30
161571HS6 Chase Issuance Trust 22-A1 A
3.970% Due 09/15/2027
1,500,000.00 06/05/2023
4.85%
1,473,046.88
1,479,785.16
98.65 4.85%
1,479,766.50
2,646.67
1.02%
(18.66)
NR / AAA
AAA
3.71 1.60
89239HAD0 Toyota Auto Receivables Owner 20222-D A3
5.300% Due 09/15/2027
1,480,000.00 06/12/2023
5.07%
1,488,093.75
1,486,567.63
100.51
5.03%
1,487,558.36
3,486.22
1.03%
990.73
Aaa / NR
AAA
3.71 1.56
05522RDE5 Bank of America Credit Card Tr 2022-A1 A1
3.530% Due 11/15/2027
1,500,000.00 06/06/2023
5.03%
1,458,222.66
1,469,940.69
98.03 4.99%
1,470,496.50
2,353.33
1.02%
555.81
Aaa / NR
AAA
3.88 1.38
362583AD8 GM Auto Receivable Trust 2023-2 A3
4.470% Due 02/16/2028
1,000,000.00 07/12/2023
5.17%
986,328.13
988,398.89
99.36 4.90%
993,566.00
1,862.50
0.69%
5,167.11
Aaa / AAA
NR
4.13 1.68
05592XAD2 BMW Vehicle Owner Trust 2023-A A3
5.470% Due 02/25/2028
1,275,000.00 Various
5.24%
1,280,732.52
1,279,951.67
101.04
4.95%
1,288,254.90
1,162.38
0.89%
8,303.23
NR / AAA
AAA
4.16 1.78
477920AC6 John Deere Owner Trust 2023-B A3
5.180% Due 03/15/2028
485,000.00 06/21/2023
5.24%
484,919.10
484,930.49
100.87
4.79%
489,226.29
1,116.58
0.34%
4,295.80
Aaa / NR
AAA
4.21 1.96
92348KBL6 Verizon Master Trust 2023-2 A
4.890% Due 04/13/2028
1,115,000.00 07/25/2023
5.39%
1,103,937.11
1,105,497.77
99.68 5.34%
1,111,406.36
1,666.00
0.77%
5,908.59
NR / AAA
AAA
4.29 1.74
02582JJZ4 American Express Credit Trust 2023-1 A
4.870% Due 05/15/2028
570,000.00 06/07/2023
4.92%
569,949.44
569,958.97
100.73
4.59%
574,176.39
1,233.73
0.40%
4,217.42
NR / AAA
AAA
4.38 2.19
36267KAD9 GM Financial Securitized Term 2023-3 A3
5.450% Due 06/16/2028
315,000.00 07/11/2023
5.51%
314,987.84
314,989.42
101.52
4.75%
319,779.81
715.31
0.22%
4,790.39
Aaa / AAA
NR
4.46 1.97
161571HT4 Chase Issuance Trust 23-A1 A
5.160% Due 09/15/2028
680,000.00 09/07/2023
5.23%
679,811.50
679,830.07
101.55
4.59%
690,516.88
1,559.47
0.48%
10,686.81
NR / AAA
AAA
4.71 2.46
TOTAL ABS 13,525,000.00 5.15%
13,384,157.46
13,418,653.13 4.97%
13,473,588.63
23,256.50
9.32%
54,935.50
Aaa / AAA
AAA
3.85 1.62
Agency
3130AV5N8 FHLB Note
5.000% Due 12/13/2024
3,500,000.00 06/28/2023
5.13%
3,493,735.00
3,495,913.62
100.16
4.83%
3,505,519.50
8,750.00
2.43%
9,605.88
Aaa / AA+
NR
0.95 0.92
3130AWER7 FHLB Note
4.625% Due 06/06/2025
2,700,000.00 06/09/2023
4.67%
2,697,759.00
2,698,386.48
100.56
4.22%
2,715,066.00
8,671.88
1.88%
16,679.52
Aaa / AA+
NR
1.43 1.37
As of December 31, 2023
32 Item: 6
63 Holdings Report
Lake Forest Operating Reserve - Account #11083
CUSIP Security Description Par Value/Units Purchase Date Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
3130AWLY4 FHLB Note
5.125% Due 06/13/2025
3,500,000.00 07/18/2023
4.82%
3,519,110.00
3,514,545.60
100.82
4.54%
3,528,556.50
8,968.75
2.44%
14,010.90
Aaa / AA+
NR
1.45 1.38
3133EPRS6 FFCB Note
4.875% Due 07/28/2025
3,500,000.00 07/25/2023
5.00%
3,492,020.00
3,493,733.90
100.61
4.47%
3,521,420.00
72,515.63
2.48%
27,686.10
Aaa / AA+
AA+
1.58 1.47
3133EPMB8 FFCB Note
4.125% Due 12/08/2025
3,500,000.00 06/08/2023
4.39%
3,478,545.00
3,483,385.89
99.60 4.34%
3,486,049.00
9,223.96
2.41%
2,663.11
Aaa / AA+
AA+
1.94 1.84
3133EPPR0 FFCB Note
4.625% Due 04/10/2026
3,500,000.00 07/25/2023
4.74%
3,490,375.00
3,491,922.40
100.92
4.19%
3,532,287.50
36,421.88
2.46%
40,365.10
Aaa / AA+
AA+
2.28 2.12
3133EPNG6 FFCB Note
4.375% Due 06/23/2026
3,500,000.00 06/20/2023
4.39%
3,498,145.00
3,498,469.96
100.44
4.18%
3,515,547.00
3,402.78
2.43%
17,077.04
Aaa / AA+
AA+
2.48 2.32
3133EPNH4 FFCB Note
3.875% Due 06/21/2028
3,500,000.00 06/21/2023
4.06%
3,470,831.00
3,473,899.74
99.36 4.03%
3,477,645.50
3,767.36
2.40%
3,745.76
Aaa / AA+
AA+
4.48 4.06
TOTAL Agency 27,200,000.00 4.65%
27,140,520.00
27,150,257.59 4.35%
27,282,091.00
151,722.24
18.94%
131,833.41
Aaa / AA+
AA+
2.09 1.95
CMO
3137BVZ82 FHLMC K063
3.430% Due 01/25/2027
2,500,000.00 06/06/2023
4.47%
2,415,429.69
2,428,568.06
97.17 4.42%
2,429,322.50
7,145.83
1.68%
754.44
NR / NR
AAA
3.07 2.72
3137FBU79 FHLMC K069 A2
3.187% Due 09/25/2027
2,345,000.00 06/30/2023
5.32%
2,218,406.64
2,233,101.98
95.94 4.38%
2,249,802.38
6,227.93
1.56%
16,700.40
NR / AAA
NR
3.74 3.33
3137FCLD4 FHLMC K071 A2
3.286% Due 11/25/2027
1,300,000.00 06/07/2023
4.41%
1,240,281.25
1,247,860.52
96.05 4.38%
1,248,605.80
3,559.83
0.86%
745.28
NR / NR
AAA
3.90 3.54
3137FETN0 FHLMC K073 A2
3.350% Due 01/25/2028
2,500,000.00 06/06/2023
4.35%
2,403,027.34
2,414,840.69
96.17 4.38%
2,404,300.00
1,395.83
1.66%
(10,540.69)
NR / NR
AAA
4.07 3.64
3137F4D41 FHLMC K074 A2
3.600% Due 01/25/2028
2,500,000.00 07/25/2023
5.78%
2,386,035.15
2,396,931.91
97.06 4.38%
2,426,527.50
1,500.00
1.68%
29,595.59
NR / NR
AAA
4.07 3.64
3137FGR31 FHLMC K078 A2
3.854% Due 06/25/2028
2,500,000.00 06/22/2023
4.42%
2,443,261.72
2,449,106.54
97.91 4.36%
2,447,672.50
1,605.83
1.69%
(1,434.04)
NR / NR
AAA
4.49 3.92
TOTAL CMO 13,645,000.00 4.81%
13,106,441.79
13,170,409.70 4.38%
13,206,230.68
21,435.25
9.13%
35,820.98
NR / AAA
AAA
3.89 3.46
Corporate
06368LGU4 Bank of Montreal Note
5.200% Due 12/12/2024
1,000,000.00 06/20/2023
5.62%
994,080.00
996,199.78
99.88 5.33%
998,820.00
2,744.44
0.69%
2,620.22
A2 / A-
AA-
0.95 0.91
74153WCR8 Pricoa Global Funding Note
4.200% Due 08/28/2025
1,000,000.00 07/18/2023
5.37%
976,970.00
981,905.00
98.94 4.87%
989,396.00
14,350.00
0.69%
7,491.00
Aa3 / AA-
AA-
1.66 1.56
As of December 31, 2023
33 Item: 6
64 Holdings Report
Lake Forest Operating Reserve - Account #11083
CUSIP Security Description Par Value/Units Purchase Date Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
89115A2K7 Toronto-Dominion Bank Note
5.103% Due 01/09/2026
1,000,000.00 06/16/2023
5.23%
996,950.00
997,584.19
100.69
4.74%
1,006,892.00
24,381.00
0.71%
9,307.81
A1 / A
AA-
2.03 1.86
78016FZT4 Royal Bank of Canada Note
4.875% Due 01/12/2026
1,000,000.00 06/16/2023
5.26%
990,910.00
992,794.04
100.25
4.75%
1,002,455.00
22,885.42
0.71%
9,660.96
A1 / A
AA-
2.04 1.87
63743HFH0 National Rural Utility Corp Callable Note Cont. 2/13/2026
4.450% Due 03/13/2026
1,000,000.00 06/08/2023
4.73%
992,710.00
994,182.51
99.85 4.52%
998,485.00
13,350.00
0.70%
4,302.49
A2 / A-
A
2.20 1.98
64952WFB4 New York Life Global Note
4.700% Due 04/02/2026
1,000,000.00 06/05/2023
4.89%
994,890.00
995,921.92
99.99 4.70%
999,895.00
11,619.44
0.70%
3,973.08
Aaa / AA+
AAA
2.25 2.09
66815L2L2 Northwestern Mutual Glbl Note
4.700% Due 04/06/2026
1,000,000.00 07/06/2023
5.50%
979,860.00
983,380.98
99.65 4.86%
996,507.00
11,097.22
0.70%
13,126.02
Aaa / AA+
AAA
2.27 2.10
57629W6F2 Mass Mutual Global funding Note
4.500% Due 04/10/2026
1,000,000.00 06/20/2023
5.12%
983,900.00
986,937.44
99.70 4.64%
997,037.00
10,125.00
0.70%
10,099.56
Aa3 / AA+
AA+
2.28 2.12
46647PCZ7 JP Morgan Chase & Co Callable Note Cont 4/26/2025
4.080% Due 04/26/2026
1,000,000.00 06/05/2023
5.79%
978,990.00
983,136.19
98.37 5.36%
983,730.00
7,366.67
0.68%
593.81
A1 / A-
AA-
2.32 1.26
857477CB7 State Street Bank Callable Note Cont 5/18/2023
5.104% Due 05/18/2026
1,000,000.00 07/10/2023
5.87%
993,480.00
994,563.54
100.10
5.01%
1,001,027.00
6,096.44
0.70%
6,463.46
A1 / A
AA-
2.38 1.31
756109BF0 Realty Income Corp Callable Note Cont 03/01/2026
4.875% Due 06/01/2026
1,000,000.00 06/07/2023
5.20%
991,130.00
992,809.43
100.08
4.83%
1,000,790.00
4,062.50
0.69%
7,980.57
A3 / A-
NR
2.42 2.03
24422EWX3 John Deere Capital Corp Note
4.750% Due 06/08/2026
1,000,000.00 06/05/2023
4.72%
1,000,940.00
1,000,762.46
100.67
4.45%
1,006,711.00
3,034.72
0.70%
5,948.54
A2 / A
A+
2.44 2.27
58989V2F0 Met Tower Global Funding Note
5.400% Due 06/20/2026
1,000,000.00 06/12/2023
5.38%
1,000,440.00
1,000,361.72
101.49
4.75%
1,014,876.00
1,650.00
0.70%
14,514.28
Aa3 / AA-
AA-
2.47 2.29
61747YET8 Morgan Stanley Callable Note Cont 7/17/2025
4.679% Due 07/17/2026
1,000,000.00 06/05/2023
5.80%
989,810.00
991,675.77
99.04 5.32%
990,403.00
21,315.44
0.70%
(1,272.77)
A1 / A-
A+
2.55 1.44
06051GLA5 Bank of America Corp Callable Note Cont 7/22/2025
4.827% Due 07/22/2026
1,000,000.00 06/05/2023
5.91%
990,260.00
992,035.57
99.23 5.34%
992,284.00
21,319.25
0.70%
248.43
A1 / A-
AA-
2.56 1.45
26444HAC5 Duke Energy Florida LLC Callable Note Cont 10/15/2026
3.200% Due 01/15/2027
1,000,000.00 06/13/2023
4.65%
952,650.00
959,879.01
96.58 4.41%
965,802.00
14,755.56
0.68%
5,922.99
A1 / A
NR
3.04 2.81
74340XBN0 Prologis LP Callable Note Cont 2/15/2027
2.125% Due 04/15/2027
1,000,000.00 06/07/2023
4.78%
907,480.00
921,035.56
92.37 4.65%
923,749.00
4,486.11
0.64%
2,713.44
A3 / A
NR
3.29 3.10
As of December 31, 2023
34 Item: 6
65 Holdings Report
Lake Forest Operating Reserve - Account #11083
CUSIP Security Description Par Value/Units Purchase Date Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
06406RBQ9 Bank of NY Mellon Corp Callable Note Cont 4/26/2026
4.947% Due 04/26/2027
1,000,000.00 06/08/2023
5.50%
993,950.00
994,818.56
100.03
4.92%
1,000,298.00
8,932.08
0.70%
5,479.44
A1 / A
AA-
3.32 2.15
89236TKJ3 Toyota Motor Credit Corp Note
4.550% Due 09/20/2027
1,000,000.00 06/05/2023
4.63%
996,860.00
997,277.06
100.77
4.32%
1,007,747.00
12,765.28
0.70%
10,469.94
A1 / A+
A+
3.72 3.35
40139LBG7 Guardian Life Glob Fun Note
5.550% Due 10/28/2027
1,000,000.00 06/13/2023
5.09%
1,017,710.00
1,015,490.70
103.78
4.46%
1,037,751.00
9,712.50
0.72%
22,260.30
Aa1 / AA+
NR
3.83 3.40
023135CP9 Amazon.com Inc Callable Note Cont 11/1/2027
4.550% Due 12/01/2027
1,500,000.00 06/29/2023
4.71%
1,490,595.00
1,491,656.85
101.53
4.11%
1,522,954.50
5,687.50
1.06%
31,297.65
A1 / AA
AA-
3.92 3.48
78016FZW7 Royal Bank of Canada Note
4.900% Due 01/12/2028
1,000,000.00 07/25/2023
5.26%
985,680.00
987,068.07
101.08
4.60%
1,010,766.00
23,002.78
0.71%
23,697.93
A1 / A
AA-
4.04 3.54
91324PEP3 United Health Group Inc Callable Note Cont 1/15/2028
5.250% Due 02/15/2028
1,000,000.00 07/06/2023
5.02%
1,009,290.00
1,008,304.70
103.41
4.32%
1,034,070.00
19,833.33
0.73%
25,765.30
A2 / A+
A
4.13 3.56
931142FB4 Wal-Mart Stores Callable Note Cont 3/15/28
3.900% Due 04/15/2028
1,500,000.00 06/13/2023
4.39%
1,468,365.00
1,471,947.67
98.92 4.18%
1,483,800.00
12,350.00
1.03%
11,852.33
Aa2 / AA
AA
4.29 3.88
61747YER2 Morgan Stanley Callable Note Cont 4/20/2027
4.210% Due 04/20/2028
1,000,000.00 07/19/2023
5.34%
963,360.00
966,823.38
97.74 4.95%
977,418.00
8,303.06
0.68%
10,594.62
A1 / A-
A+
4.31 3.02
74456QBU9 Public Service El & Gas Callable Note Cont 02/01/28
3.700% Due 05/01/2028
1,000,000.00 06/05/2023
4.63%
959,700.00
964,382.91
96.82 4.51%
968,219.00
6,166.67
0.67%
3,836.09
A1 / A
NR
4.34 3.93
341081GN1 Florida Power and Light Callable Note Cont 3/15/2028
4.400% Due 05/15/2028
1,000,000.00 06/05/2023
4.62%
990,280.00
991,400.71
100.16
4.35%
1,001,599.00
5,622.22
0.70%
10,198.29
Aa2 / A+
AA-
4.38 3.78
66815L2M0 Northwestern Mutual Glbl Note
4.900% Due 06/12/2028
1,000,000.00 06/05/2023
4.85%
1,002,150.00
1,001,911.11
100.37
4.81%
1,003,659.00
2,586.11
0.69%
1,747.89
Aaa / AA+
AAA
4.45 3.95
64952WFD0 New York Life Global Note
4.900% Due 06/13/2028
1,000,000.00 06/06/2023
4.87%
1,001,450.00
1,001,289.68
100.89
4.67%
1,008,921.00
2,450.00
0.70%
7,631.32
Aaa / AA+
AAA
4.45 3.95
74340XCG4 Prologis LP Callable Note Cont 5/15/2028
4.875% Due 06/15/2028
1,000,000.00 07/25/2023
5.06%
992,020.00
992,726.35
101.27
4.55%
1,012,729.00
2,166.67
0.70%
20,002.65
A3 / A
NR
4.46 3.90
24422EXB0 John Deere Capital Corp Note
4.950% Due 07/14/2028
1,000,000.00 07/11/2023
4.96%
999,758.30
999,780.93
102.52
4.33%
1,025,205.00
22,962.51
0.72%
25,424.07
A2 / A
A+
4.54 3.95
89115A2U5 Toronto-Dominion Bank Note
5.523% Due 07/17/2028
1,000,000.00 07/10/2023
5.51%
1,000,690.00
1,000,626.55
102.95
4.79%
1,029,541.00
25,160.33
0.73%
28,914.45
A1 / A
AA-
4.55 3.90
As of December 31, 2023
35 Item: 6
66 Holdings Report
Lake Forest Operating Reserve - Account #11083
CUSIP Security Description Par Value/Units Purchase Date Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
06051GKW8 Bank of America Corp Callable Note Cont 7/22/2027
4.948% Due 07/22/2028
1,000,000.00 07/19/2023
5.83%
982,540.00
984,080.31
99.99 4.95%
999,864.00
21,853.67
0.71%
15,783.69
A1 / A-
AA-
4.56 3.16
46647PDG8 JP Morgan Chase & Co Callable Note Cont 7/25/2027
4.851% Due 07/25/2028
1,000,000.00 07/20/2023
5.71%
983,510.00
984,954.12
100.03
4.84%
1,000,290.00
21,021.00
0.71%
15,335.88
A1 / A-
AA-
4.57 3.18
26442CAX2 Duke Energy Carolinas Callable Note Cont 8/15/2028
3.950% Due 11/15/2028
750,000.00 11/27/2023
5.12%
711,870.00
712,564.04
98.43 4.31%
738,211.50
3,785.42
0.51%
25,647.46
Aa3 / A
NR
4.88 4.36
91324PDP4 United Health Group Inc Note
3.875% Due 12/15/2028
1,000,000.00 12/12/2023
4.77%
960,560.00
960,926.98
97.88 4.35%
978,798.00
1,722.22
0.68%
17,871.02
A2 / A+
A
4.96 4.45
TOTAL Corporate 36,750,000.00 5.14%
36,225,788.30
36,293,195.79 4.68%
36,710,700.00
410,722.56
25.63%
417,504.21
A1 / A+
AA-
3.37 2.83
Money Market Fund
60934N807 Federated Investors Govt Oblig Fund Inst. 688,205.26 Various
5.00%
688,205.26
688,205.26
1.00 5.00%
688,205.26
0.00 0.48%
0.00 Aaa / AAA
AAA
0.00 0.00
TOTAL Money Market Fund 688,205.26 5.00%
688,205.26
688,205.26 5.00%
688,205.26
0.00 0.48%
0.00 Aaa / AAA
AAA
0.00 0.00
Supranational
4581X0EK0 Inter-American Dev Bank Note
4.500% Due 05/15/2026
2,800,000.00 06/27/2023
4.53%
2,797,844.00
2,798,213.66
100.62
4.22%
2,817,449.60
16,100.00
1.96%
19,235.94
Aaa / AAA
AAA
2.37 2.22
45950KDD9 International Finance Corp Note
4.500% Due 07/13/2028
1,280,000.00 07/06/2023
4.53%
1,278,579.20
1,278,712.96
102.09
3.99%
1,306,771.20
26,880.00
0.92%
28,058.24
Aaa / AAA
NR
4.54 3.99
TOTAL Supranational 4,080,000.00 4.53%
4,076,423.20
4,076,926.62 4.15%
4,124,220.80
42,980.00
2.88%
47,294.18
Aaa / AAA
AAA
3.07 2.79
US Treasury
912797GB7 US Treasury Bill
5.110% Due 07/11/2024
2,750,000.00 07/25/2023
5.38%
2,612,988.12
2,612,988.12
95.02 5.38%
2,612,988.12
62,065.21
1.85%
0.00 P-1 / A-1+
F-1+
0.53 0.51
91282CFN6 US Treasury Note
4.250% Due 09/30/2024
3,500,000.00 07/19/2023
5.22%
3,461,035.16
3,475,713.70
99.49 4.95%
3,482,090.50
37,797.13
2.43%
6,376.80
Aaa / AA+
AA+
0.75 0.72
91282CGD7 US Treasury Note
4.250% Due 12/31/2024
3,500,000.00 06/13/2023
4.88%
3,467,597.66
3,479,104.50
99.47 4.80%
3,481,320.50
408.65
2.40%
2,216.00
Aaa / AA+
AA+
1.00 0.97
As of December 31, 2023
36 Item: 6
67 Holdings Report
Lake Forest Operating Reserve - Account #11083
CUSIP Security Description Par Value/Units Purchase Date Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
91282CGN5 US Treasury Note
4.625% Due 02/28/2025
3,500,000.00 07/18/2023
4.93%
3,483,183.59
3,487,914.99
99.94 4.67%
3,497,949.00
54,699.52
2.45%
10,034.01
Aaa / AA+
AA+
1.16 1.11
91282CHD6 US Treasury Note
4.250% Due 05/31/2025
3,500,000.00 06/05/2023
4.45%
3,486,601.56
3,490,464.01
99.63 4.52%
3,487,148.00
13,005.46
2.42%
(3,316.01)
Aaa / AA+
AA+
1.42 1.35
91282CHL8 US Treasury Note
4.625% Due 06/30/2025
3,500,000.00 07/06/2023
5.05%
3,472,246.09
3,479,069.57
100.24
4.46%
3,508,340.50
444.71
2.42%
29,270.93
Aaa / AA+
AA+
1.50 1.43
91282CGA3 US Treasury Note
4.000% Due 12/15/2025
3,500,000.00 06/16/2023
4.52%
3,458,027.34
3,467,031.38
99.46 4.29%
3,481,268.00
6,502.73
2.41%
14,236.62
Aaa / AA+
AA+
1.96 1.86
91282CHB0 US Treasury Note
3.625% Due 05/15/2026
3,500,000.00 06/05/2023
4.10%
3,454,609.38
3,463,442.38
98.84 4.14%
3,459,393.00
16,382.21
2.40%
(4,049.38)
Aaa / AA+
AA+
2.37 2.24
91282CEW7 US Treasury Note
3.250% Due 06/30/2027
3,500,000.00 06/06/2023
3.99%
3,404,160.16
3,417,593.24
97.72 3.95%
3,420,294.50
312.50
2.36%
2,701.26
Aaa / AA+
AA+
3.50 3.27
91282CFU0 US Treasury Note
4.125% Due 10/31/2027
3,500,000.00 06/29/2023
4.23%
3,485,234.38
3,486,958.90
100.63
3.95%
3,522,011.50
24,591.35
2.45%
35,052.60
Aaa / AA+
AA+
3.84 3.49
91282CHE4 US Treasury Note
3.625% Due 05/31/2028
3,500,000.00 06/05/2023
3.81%
3,470,878.91
3,474,221.20
98.94 3.89%
3,462,949.00
11,092.90
2.40%
(11,272.20)
Aaa / AA+
AA+
4.42 4.03
91282CHK0 US Treasury Note
4.000% Due 06/30/2028
3,500,000.00 06/28/2023
4.00%
3,500,273.44
3,500,245.75
100.47
3.88%
3,516,544.50
384.62
2.43%
16,298.75
Aaa / AA+
AA+
4.50 4.08
91282CJF9 US Treasury Note
4.875% Due 10/31/2028
3,500,000.00 10/27/2023
4.79%
3,513,261.72
3,512,811.68
104.38
3.87%
3,653,398.00
29,062.50
2.54%
140,586.32
Aaa / AA+
AA+
4.84 4.26
91282CJN2 US Treasury Note
4.375% Due 11/30/2028
3,750,000.00 12/08/2023
4.26%
3,769,775.39
3,769,546.71
102.33
3.85%
3,837,303.75
14,344.26
2.66%
67,757.04
Aaa / AA+
AA+
4.92 4.38
TOTAL US Treasury 48,500,000.00 4.53%
48,039,872.90
48,117,106.13 4.31%
48,422,998.87
271,093.75
33.62%
305,892.74
Aaa / AA+
AA+
2.68 2.46
TOTAL PORTFOLIO 144,388,205.26 4.79%
142,661,408.91
142,914,754.22 4.48%
143,908,035.24
921,210.30
100.00%
993,281.02
Aa1 / AA
AA+
2.96 2.47
TOTAL MARKET VALUE PLUS ACCRUALS 144,829,245.54
As of December 31, 2023
37 Item: 6
68 Holdings Report
Lake Forest Reporting - Account #11084
CUSIP Security Description Par Value/Units Purchase Date Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
LAIF
90LAIF$00 Local Agency Investment Fund State Pool 519,504.34 Various
3.95%
519,504.34
519,504.34
1.00 3.95%
519,504.34
4,976.27
1.13%
0.00 NR / NR
NR
0.00 0.00
TOTAL LAIF 519,504.34 3.95%
519,504.34
519,504.34 3.95%
519,504.34
4,976.27
1.13%
0.00 NR / NR
NR
0.00 0.00
Local Gov Investment Pool
900CIP$01 Orange County Investment Pool 442.65 Various
0.40%
442.65
442.65
1.00 0.40%
442.65
0.00 0.00%
0.00 NR / NR
NR
0.00 0.00
90CAMP$00 California Asset Mgmt Program CAMP 45,998,133.21 Various
5.56%
45,998,133.21
45,998,133.21
1.00 5.56%
45,998,133.21
0.00 98.87%
0.00 NR / AAA
NR
0.00 0.00
TOTAL Local Gov Investment Pool 45,998,575.86 5.56% 45,998,575.86
45,998,575.86 5.56%
45,998,575.86
0.00 98.87%
0.00 NR / AAA
NR
0.00 0.00
TOTAL PORTFOLIO 46,518,080.20 5.54%
46,518,080.20
46,518,080.20 5.54%
46,518,080.20
4,976.27
100.00%
0.00 NR / AAA
NR
0.00 0.00
TOTAL MARKET VALUE PLUS ACCRUALS 46,523,056.47
As of December 31, 2023
38 Item: 6
69 SECTION |
Section 5 |
Transactions
39 Item: 6
70 Transaction Ledger
Lake Forest Operating Reserve - Account #11083
Transaction
Type
Settlement
Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest
Pur/Sold Total Amount Gain/Loss
ACQUISITIONS
Purchase 10/31/2023 91282CJF9 3,500,000.00 US Treasury Note
4.875% Due: 10/31/2028
100.379 4.79% 3,513,261.72 0.00 3,513,261.72 0.00
Purchase 11/29/2023 26442CAX2 750,000.00 Duke Energy Carolinas Callable Note Cont 8/15/2028
3.95% Due: 11/15/2028
94.916 5.12% 711,870.00 1,152.08 713,022.08 0.00
Purchase 12/11/2023 91282CJN2 3,750,000.00 US Treasury Note
4.375% Due: 11/30/2028
100.527 4.26% 3,769,775.39 4,930.84 3,774,706.23 0.00
Purchase 12/15/2023 91324PDP4 1,000,000.00 United Health Group Inc Note
3.875% Due: 12/15/2028
96.056 4.77% 960,560.00 0.00 960,560.00 0.00
Subtotal 9,000,000.00 8,955,467.11 6,082.92 8,961,550.03 0.00 TOTAL ACQUISITIONS 9,000,000.00 8,955,467.11 6,082.92 8,961,550.03 0.00
DISPOSITIONS
Sale 10/30/2023 912796ZY8 3,500,000.00 US Treasury Bill
5.242% Due: 01/25/2024
98.716 5.46% 3,455,065.10 0.00 3,455,065.10 48,329.02
Sale 12/11/2023 912797FH5 3,500,000.00 US Treasury Bill
4.938% Due: 05/16/2024
97.765 5.32% 3,421,764.94 0.00 3,421,764.94 86,896.88
Sale 12/14/2023 912797GB7 750,000.00 US Treasury Bill
5.11% Due: 07/11/2024
97.106 5.16% 728,291.69 0.00 728,291.69 15,658.56
Subtotal 7,750,000.00 7,605,121.73 0.00 7,605,121.73 150,884.46 TOTAL DISPOSITIONS 7,750,000.00 7,605,121.73 0.00 7,605,121.73 150,884.46 September 30, 2023 through December 31, 2023
As of December 31, 2023
40 Item: 6
71 Transaction Ledger
Lake Forest Reporting - Account #11084
Transaction
Type
Settlement
Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest
Pur/Sold Total Amount Gain/Loss
ACQUISITIONS
Purchase 10/15/2023 90LAIF$00 4,170.33 Local Agency Investment Fund State Pool 1.000 3.61% 4,170.33 0.00 4,170.33 0.00 Purchase 10/31/2023 900CIP$01 1,494.96 Orange County Investment Pool 1.000 0.40% 1,494.96 0.00 1,494.96 0.00 Purchase 10/31/2023 90CAMP$00 214,073.00 California Asset Mgmt Program CAMP 1.000 5.56% 214,073.00 0.00 214,073.00 0.00 Purchase 11/30/2023 900CIP$01 1,426.99 Orange County Investment Pool 1.000 0.40% 1,426.99 0.00 1,426.99 0.00 Purchase 11/30/2023 90CAMP$00 209,032.65 California Asset Mgmt Program CAMP 1.000 5.57% 209,032.65 0.00 209,032.65 0.00 Purchase 12/31/2023 900CIP$01 436.70 Orange County Investment Pool 1.000 0.40% 436.70 0.00 436.70 0.00 Purchase 12/31/2023 90CAMP$00 215,886.38 California Asset Mgmt Program CAMP 1.000 5.56% 215,886.38 0.00 215,886.38 0.00 Subtotal 646,521.01 646,521.01 0.00 646,521.01 0.00
TOTAL ACQUISITIONS 646,521.01 646,521.01 0.00 646,521.01 0.00
DISPOSITIONS
Security
Withdrawal
10/02/2023 900CIP$01 5.35 Orange County Investment Pool 1.000 5.35 0.00 5.35 0.00 Security
Withdrawal
11/01/2023 900CIP$01 5.54 Orange County Investment Pool 1.000 5.54 0.00 5.54 0.00 Security
Withdrawal
12/01/2023 900CIP$01 5.38 Orange County Investment Pool 1.000 5.38 0.00 5.38 0.00 Security
Withdrawal
12/12/2023 900CIP$01 130,400.00 Orange County Investment Pool 1.000 130,400.00 0.00 130,400.00 0.00 Subtotal 130,416.27 130,416.27 0.00 130,416.27 0.00
TOTAL DISPOSITIONS 130,416.27 130,416.27 0.00 130,416.27 0.00 September 30, 2023 through December 31, 2023
As of December 31, 2023
41 Item: 6
72 Benchmark Disclosures
ICE BofA 1-5 Yr US Treasury & Agency Index
The ICE BofA 1-5 Year US Treasury & Agency Index tracks the performance of US dollar denominated US Treasury and nonsubordinated US agency debt issued in the US domestic market. Qualifying securities must have an investment grade rating (based on an average of Moody’s, S&P and Fitch). Qualifying securities must have at least one year remaining term to final maturity and less than five years remaining term to final maturity, at least 18 months to maturity at time of issuance, a fixed coupon schedule, and a minimum amount outstanding of $1 billion for sovereigns and $250 million for agencies.
As of December 31, 2023
42 Item: 6
73 CITY COUNCIL AGENDA REPORT
MEETING DATE: 02/06/2024
DEPARTMENT: Management Services
SUBJECT:
SECOND READING AND ADOPTION OF ORDINANCE AMENDING TITLE 12
OF THE LAKE FOREST MUNICIPAL CODE RELATING TO ENFORCEMENT
OF STREET SWEEPING AND PERMIT PARKING RESTRICTIONS
RECOMMENDED ACTION(S):
Conduct second reading of and adopt an Ordinance entitled: AN ORDINANCE
OF THE CITY COUNCIL OF THE CITY OF LAKE FOREST, CALIFORNIA, AMENDING CHAPTER 12.16 OF TITLE 12 OF THE LAKE FOREST
MUNICIPAL CODE, RELATING TO ENFORCEMENT OF STREET SWEEPING
AND PERMIT PARKING RESTRICTIONS
EXECUTIVE SUMMARY:
This item adds specific sections to the Lake Forest Municipal Code related to street sweeping parking restrictions and permit parking restrictions. First, the ordinance would amend Chapter 12.16.040 and Chapter 12.16.020 to include unlawful parking in violation of posted street sweeping regulations. Second, the ordinance would add Chapter 12.16.080 to the Lake Forest Municipal Code, which would specifically identify parking violations related to the City’s streets that include permit parking restrictions. Without these added sections, this code section does not allow citation generators to identify if the offending vehicle violated a street sweeping or permit parking restriction. In addition, the City is unable to efficiently track the success of parking enforcement activities related to one of those restriction types.
To effectuate these changes to the LFMC, staff recommends the City Council conduct the second reading and adopt Ordinance No. 366 (Attachment).
FISCAL IMPACT:
There is no fiscal impact associated with the recommended action.
Item: 7
74 2
9 0
7 ATTACHMENTS:
Ordinance No. 366
Initiated By: Sharlyn De la Paz, Senior Management Analyst Submitted By: Sean McGovern, Deputy City Manager
Approved By: Debra Rose, City Manager
Item: 7
75 55136.00320\41838846.1
DRAFT 11/28/23
ATTACHMENT
Item: 7
76 55136.00320\41838846.1
DRAFT 11/28/23
ORDINANCE NO. 366
AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF LAKE FOREST, CALIFORNIA, AMENDING
CHAPTER 12.16 OF TITLE 12 OF THE LAKE FOREST
MUNICIPAL CODE, RELATING TO ENFORCEMENT
OF STREET SWEEPING AND PERMIT PARKING
RESTRICTIONS
WHEREAS, pursuant to Cal. Const. Art. XI, Sec. 7 and under the City’s general police powers, the City of Lake Forest (“City”) is empowered and charged with responsibility for the health, safety, and welfare of its citizens; and
WHEREAS, Vehicle Code Section 22507 authorizes the City to prohibit or restrict the stopping, parking, or standing of vehicles on certain streets or highways, or portions thereof, during all or certain hours of the day; and WHEREAS, consistent with this authority, the City Council established a Street Sweeping Parking Restriction Policy (“Street Sweeping Policy”), most recently updated in February 2022, to evaluate the merits of and enact street sweeping parking restrictions on a case-by-case basis; and WHEREAS, Vehicle Code Section 22507 further authorizes the City to designate certain streets upon which preferential parking privileges are given to residents and merchants adjacent to the streets for their use and the use of their guests, under which designation said residents and merchants may be issued a permit or permits that exempt them from the prohibition or restriction of the ordinance or the resolution; and
WHEREAS, the City Council adopted the Residential Parking Management Policy (“Permit Parking Policy”) in July 2004, which addresses overflow parking in residential neighborhoods. The Permit Parking Policy was updated in May 2019 as part of a comprehensive review of parking policies and procedures; and WHEREAS, the Permit Parking Policy includes criteria and phases for evaluating and establishing residential permit parking restrictions; and WHEREAS, the City Council desires to establish the necessary mechanisms needed to enforce the Street Sweeping Policy and the Permit Parking Policy in order to address certain negative impacts that can result from on-street parking, including interfering with street sweeping as well as reducing the availability of on-street parking for Lake Forest residents; Item: 7
77 55136.00320\41838846.1
DRAFT 11/28/23
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE
FOREST DOES ORDAIN AS FOLLOWS:
SECTION 1. Section 12.16.040 of Title 12 the Lake Forest Municipal Code is hereby amended to add subsection “I” as follows:
“12.16.040 Violations.
I. Street Sweeping. It is unlawful for any person to stop, stand or park a vehicle on sign-posted streets, highways or portions thereof during the times designated for street sweeping, except for any vehicle considered exempt under the Street Sweeping Parking Restriction Policy.”
SECTION 2. Section 12.16.020 of Title 12 the Lake Forest Municipal Code is hereby amended to add subsection “J” as follows:
“12.16.020 Establishment of restricted zones.
...
J. Restricting stopping, standing, or parking during specific hours of the day for streets, highways or portions thereof during the times designated by the City Council for street sweeping.
SECTION 3. Section 12.16.080, titled “Permit Parking Program Enforcement,” is added to Title 12 the Lake Forest Municipal Code to read as follows:
“12.16.080 Permit Parking Program Enforcement
A. The City Council may adopt a resolution, pursuant to the provisions of the Residential Parking Management Policy, designating an area as permit parking only.
B. Except as otherwise provided by the Residential Parking Management Policy, it shall be unlawful for any person to stand or park any vehicle on any street or portion thereof that has been designated as permit parking only, unless a valid permit to park has been issued by the City and is displayed on the vehicle. The decal shall be displayed in clear view as further indicated in the permit issuance instructions.
Item: 7
78 55136.00320\41838846.1
DRAFT 11/28/23
C. It shall be unlawful for any person to sell, rent, copy or lease, for any value or consideration, any parking permit or guest parking permit, except as provided by the Residential Parking Management Policy.
D. It shall be unlawful for any person to move solid waste containers in a manner that precludes collection of solid waste, obstructs driveways or other rights of way, or otherwise interferes with vehicular traffic in order to park on a street or portion thereof designated as permit parking only.
E. Each permit issued pursuant to the Residential Parking Management Policy shall be subject to all the conditions and restrictions applicable to the residential permit parking district for which it was issued.
F. The provisions of this section shall not apply to any authorized emergency vehicle as defined in the California Vehicle Code when such vehicle is responding to an emergency, or to the vehicle of a licensed physician who is responding to an emergency provided that vehicle displays an insigne approved by the California Department of Motor Vehicles indicating that the vehicle is owned by a licensed physician.
G. Nothing contained in this section shall be deemed to authorize vehicle parking at any location or at any time otherwise prohibited by any other provision of law.
H. The Director is hereby authorized to place appropriate signs and/or markings adjacent to or at the beginning and end of the street segment in the permit parking district that describes the permit parking restrictions applicable to the permit parking district.
I. Sheriff’s officers, City code enforcement officers and other persons authorized by State law are hereby authorized and directed to issue citations to any person who violates Section 12.16.080 of this Chapter, and such citation shall be deemed to be a civil complaint charging violations of this chapter and title and requiring payment of the penalty set forth therein. The method of giving notice of citation for unattended vehicles shall be as specified in Section 40202 of the California Vehicle Code or any successor provision thereto. Violations of this section shall be processed as civil penalties in accordance with California Vehicle Code Sections 40200 et seq., or any successor Item: 7
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provision thereto.
J. A parking permit shall be subject to revocation in accordance with the provisions of the Residential Parking Management Policy, as well as the conditions and restrictions applicable to the residential permit parking district for which it was issued.”
SECTION 4. The City Council finds that this Ordinance is exempt from the California Environmental Quality Act ("CEQA") because the Ordinance does not qualify as a “project” under CEQA and because the Ordinance will not result in a direct or reasonably foreseeable indirect physical change in the environment. (State CEQA Guidelines section 15060, subd. (c)(2), (3).) Section 15378 of the State CEQA Guidelines defines a project as the whole of an action, which could potentially result in either a direct physical change, or reasonably foreseeable indirect physical change, in the environment. Here, the Ordinance will not result in any construction or development, and it will not have any other effect that would physically change the environment. The Ordinance therefore does not qualify as a project subject to CEQA.
In the alternative, even if the Ordinance did qualify as a “project” under CEQA, it would be exempt from CEQA under State CEQA Guidelines section 15061(b)(3), which exempts projects from CEQA “[w]here it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.” Thus, even if the Ordinance could result in some physical change in the environment, the Ordinance is exempt from CEQA because it can be seen with certainty that there is no possibility that the Ordinance may have a significant effect on the environment.
The City Council, therefore, directs that a Notice of Exemption for this Ordinance be filed with the County Clerk of the County of Orange in accordance with State CEQA Guidelines.
SECTION 5. If any section, subsection, subdivision, sentence, clause, phrase, or portion of this Ordinance for any reason is held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance.
The City Council hereby declares that it would have adopted this Ordinance, and each section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, or portions thereof be declared invalid or unconstitutional.
Item: 7
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SECTION 6. The documents and materials associated with this Ordinance that constitute the record of proceedings on which the City Council’s findings and determinations are based are located at Lake Forest City Hall, 100 Civic Center Drive, Lake Forest, California 92630. The City Clerk is the custodian of the record of proceedings.
SECTION 7. The City Clerk shall certify as to the adoption of this Ordinance and shall cause a summary thereof to be published within fifteen (15) days of the adoption and shall post a Certified copy of this Ordinance, including the vote for and against the same, in the Office of the City Clerk, in accordance with Government Code Section 36933.
PASSED, APPROVED, AND ADOPTED this ______ day of _______, 2024.
MARK TETTEMER
MAYOR
ATTEST:
LISA BERGLUND
CITY CLERK
APPROVED AS TO FORM:
MATTHEW E. RICHARDSON
CITY ATTORNEY
Item: 7
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COUNTY OF ORANGE ) SS
CITY OF LAKE FOREST )
I, Lisa Berglund, City Clerk of the City of Lake Forest, California do hereby certify that the foregoing Ordinance No. ____was duly introduced and placed upon its first reading at a regular meeting of the City Council on the _____ day of _______ 2024, and thereafter, said Ordinance was duly adopted and passed at a regular meeting of the City Council on the _____ day of ______, 2024, by the following vote, to wit:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
LISA BERGLUND
CITY CLERK
Item: 7
82 CITY COUNCIL AGENDA REPORT
MEETING DATE: 2/6/2024
DEPARTMENT: City Manager
SUBJECT:
SECOND READING AND ADOPTION OF ORDINANCE MAKING VARIOUS
UPDATES TO THE LAKE FOREST MUNICIPAL CODE
RECOMMENDED ACTION(S):
Conduct second reading of and adopt an Ordinance entitled: AN ORDINANCE
OF THE CITY COUNCIL OF THE CITY OF LAKE FOREST, CALIFORNIA,
AMENDING VARIOUS SECTIONS OF THE LAKE FOREST MUNICIPAL CODE
TO MAKE MINOR AMENDMENTS, CORRECTIONS, AND CLEAN-UP
REFINEMENTS AND DETERMINING THE ORDINANCE TO BE EXEMPT
FROM CEQA.
EXECUTIVE SUMMARY:
The Lake Forest Municipal Code (“LFMC”) is the collection of laws authorized by the City Council that govern the City’s operations. Periodically, the LFMC requires updates to accommodate changes in the technology the laws regulate, make it easier to address problems experienced by residents, and comport to laws passed at the State and Federal levels.
The attached ordinance would update the LFMC by:
•Updating the LFMC to remove reference to the Redevelopment Agency •Clarifying the difference between permits for special events occurring in parks and permits for other special events
•Removing references to non-existent sections
•Removing redundant language regarding the display of licenses and permits as well as regarding signage requirements
•Updating time and place of City Council Meetings
•Aligning restrictions for dogs and other pets at the Lake Forest Civic Center Campus (“Civic Center”) to those of public parks Item: 8
83 2
8 8
3 To effectuate these changes to the LFMC, staff recommends the City Council conduct the second reading of and adopt the attached Ordinance (Attachment 1).
FISCAL IMPACT:
There is minimal fiscal impact associated with the recommended action.
ATTACHMENTS:
Ordinance Amending the LFMC
Initiated By: Nidia Ruelas, Assistant to the City Manager Submitted By: Debra Rose, City Manager
Approved By: Debra Rose, City Manager
Item: 8
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8 ATTACHMENT
Item: 8
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8 ORDINANCE NO. ___
AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF LAKE FOREST, CALIFORNIA, AMENDING
VARIOUS SECTIONS OF THE LAKE FOREST
MUNICIPAL CODE TO MAKE MINOR AMENDMENTS,
CORRECTIONS, AND CLEAN-UP REFINEMENTS
AND DETERMINING THE ORDINANCE TO BE
EXEMPT FROM CEQA
WHEREAS, the City of Lake Forest (“City”) desires to update various sections of the Lake Forest Municipal Code, described particularly in this Ordinance No.____; and
WHEREAS, such revisions are intended to, among other things, refine and clarify Municipal Code provisions, correct clerical errors, or provide consistency within the Code; and
WHEREAS, on _____, 2024, the City Council considered the staff report, recommendations by staff, and public testimony regarding amendments to Ordinance No.___.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE
FOREST DOES ORDAIN AS FOLLOWS:
SECTION 1. The City Council hereby finds and determines that the Recitals above are true and correct and incorporated herein.
SECTION 2. The City Council finds that Ordinance No. _____ is not subject to the California Environmental Quality Act (CEQA) because the Ordinance is not a CEQA “project” pursuant to State CEQA Guidelines section 15378(b)(5), which provides that organizational and administrative activities of governments that will not result in physical environmental impacts are not CEQA projects, and here the proposed amendments refine and clarify Municipal Code provisions and correct clerical errors. Further, the City Council finds that State CEQA Guidelines section 15061(b)(3) exempts those activities for which it can be seen with certainty that there is no potential to result in significant environmental effects. The Ordinance has no potential to result in physical change to the environment, directly or indirectly, as the Ordinance refines, clarifies, and corrects clerical errors in the Municipal Code and does not propose nor authorize any action that would have the potential to cause a physical change in the environment, directly or indirectly.
Item: 8
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8 The City Council, therefore, directs that a Notice of Exemption for this Ordinance be filed with the County Clerk of the County of Orange in accordance with State CEQA Guidelines.
SECTION 3. Attached as Exhibit “A” to this Ordinance are the code amendments provided herein displayed by Municipal Code section in underline (for additions) and strikethrough (for deletions) format.
SECTION 4. Section 2.04.010 of Title 2 of the Lake Forest Municipal Code is hereby amended to change the start time of closed session matters for City Council meetings as set forth below:
“2.04.010 Time of regular City Council meetings.
A. The regular meetings of the City Council shall be held on the first and third Tuesday of each month at the hour of 5:30 p.m. for closed session matters, if required. The public session shall commence at 6:30 p.m. However, if the date of any such regular meeting falls on a holiday, the regular meeting shall be held on the next day unless the City Council determines otherwise.
…”
SECTION 5. Section 2.04.020 of Title 2 of the Lake Forest Municipal Code is hereby amended to change the location of regular City Council meetings as set forth below:
“2.04.020 Place of regular meetings.
The regular meetings of the City Council shall be held at the City Council Chambers at the City of Lake Forest Civic Center Campus, located at 100 Civic Center Drive, Lake Forest, CA, 92630, unless an alternate location is determined by the City Council.” SECTION 6. Chapter 2.24 of Title 2 of the Lake Forest Municipal Code is hereby repealed in full to remove obsolete references to Community Redevelopment Agencies as provided in Exhibit “A,” attached hereto and incorporated herein.
SECTION 7. Subsection (F) Section 2.62.014 of Title 2 of the Lake Forest Municipal Code is hereby repealed to remove an obsolete reference to Chapter
5.32 of this Code, and the Section is restated to read in its entirety as provided in Item: 8
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8 Exhibit “A,” attached hereto and incorporated herein.
SECTION 8. Section 5.05.035 of Title 5 of the Lake Forest Municipal Code is hereby amended in its entirety to clarify the different special event permits and the respective departments authorized to issue such permits as set forth below:
“5.05.035 Special event permit.
A special event permit is required for any special event, as defined in Section 5.05.020. A special event located at a public park only shall require a public park special event permit from the Community Services Department. All other special events shall require a special event permit from the Community Development Department. A special events permit is required for events having any of the following characteristics:
1. Involves the use of public property or facilities or has a substantial impact on traffic, public property or facilities in a way that may require the provision of City public services in response; and/or
2. Could create noise in excess of the noise standards set forth in Section 11.16.040 (“Exterior Noise Standards”) or Section 11.16.050 (“Interior Noise Standards”); and/or
3. Involves the use of any pyrotechnic device as defined in the California Health and Safety Code; and/or
4. Involves the construction or installation of any temporary or permanent tents, canopies or other structures, if the construction or installation requires a permit from the City’s Fire and/or Community Development Department; and/or
5. Involves the use of any exotic or nondomesticated animals, or mechanical amusement rides.
SECTION 9. Section 5.07.140 of Title 5 of the Lake Forest Municipal Code is hereby amended to read in its entirety as follows:
“5.07.140 Display of permits, licenses.
Each massage establishment shall display its massage
establishment license, as well as the individual CAMTC certificate and individual license of each certified massage therapist employed or Item: 8
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8 performing massages at the establishment, in an open and conspicuous place that is visible upon first entering the premises.” SECTION 10. Subsection (A)(2) of Section 5.40.070 of Title 5 of the Lake Forest Municipal Code is hereby repealed, and the Section restated to read in its entirety as provided in Exhibit “A,” attached hereto and incorporated herein.
SECTION 11. Section 10.12.060 of Title 10 of the Lake Forest Municipal Code is hereby amended to amend Subsection (E), as set forth below:
“10.12.060 Dogs to be curbed.
A person having custody of any dog shall not permit, either willfully or through failure to exercise due care or control, any such dog to defecate or urinate upon:
…
E. Any public park or the Lake Forest Civic Center campus.” SECTION 12. Section 13.28.040 of the Lake Forest Municipal Code is hereby repealed in full to as provided in Exhibit “A,” attached hereto and incorporated herein.
SECTION 13. If any section, subsection, subdivision, sentence, clause, phrase, or portion of this Ordinance for any reason is held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance.
The City Council hereby declares that it would have adopted this Ordinance, and each section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, or portions thereof be declared invalid or unconstitutional.
SECTION 14. The documents and materials associated with this Ordinance that constitute the record of proceedings on which the City Council’s findings and determinations are based are located at Lake Forest City Hall, 100 Civic Center Drive, Lake Forest, California 92630. The City Clerk is the custodian of the record of proceedings.
SECTION 15. The City Clerk shall certify as to the adoption of this Ordinance and shall cause a summary thereof to be published within fifteen (15) days of the adoption and shall post a Certified copy of this Ordinance, including the vote for and against the same, in the Office of the City Clerk, in accordance Item: 8
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8 with Government Code Section 36933.
PASSED, APPROVED, AND ADOPTED this ______ day of _______, 2024.
MARK TETTEMER
MAYOR
ATTEST:
LISA BERGLUND
CITY CLERK
APPROVED AS TO FORM:
MATTHEW E. RICHARDSON
CITY ATTORNEY
COUNTY OF ORANGE ) SS
CITY OF LAKE FOREST )
I, Lisa Berglund, City Clerk of the City of Lake Forest, California do hereby Item: 8
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8 certify that the foregoing Ordinance No. ____was duly introduced and placed upon its first reading at a regular meeting of the City Council on the _____ day of _______ 2024, and thereafter, said Ordinance was duly adopted and passed at a regular meeting of the City Council on the _____ day of ______, 2024, by the following vote, to wit:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
LISA BERGLUND
CITY CLERK
Item: 8
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8 EXHIBIT “A”
Amended Lake Forest Municipal Code Section 2.04.010
___
2.04.010 Time of regular City Council meetings.
A. The regular meetings of the City Council shall be held on the first and third Tuesday of each month at the hour of 6:00 5:30 p.m. for closed session matters, if required. The public session shall commence at 6:30 p.m. However, if the date of any such regular meeting falls on a holiday, the regular meeting shall be held on the next day unless the City Council determines otherwise.
B. Subsequent to the adoption of this section, the City Council may change the day and time of its regular meetings by resolution of the City Council.
Amended Lake Forest Municipal Code Section 2.04.020
___
2.04.020 Place of regular meetings.
The regular meetings of the City Council shall be held at the City Council Chambers at the City of Lake Forest Civic Center Campus, located at 100 Civic Center Drive, Lake Forest, CA, 92630.a location to be designated by resolution of the City Council.unless an alternate location is determined by the City Council.
Amended Lake Forest Municipal Code Chapter 2.24
___
Chapter 2.24 REDEVELOPMENT AGENCY
2.24.010 Established.
The City Council, on July 11, 1995, adopted ordinance No. 58, declaring that pursuant to Health and Safety Code Section 33101, there is a need for a Redevelopment Agency as described in Health and Safety Code Section 33100 to function in the City.
2.24.020 Council as agency board.
The City Council declares that it shall be serve and be constituted as the Lake Forest Redevelopment Agency, and finds that this service will serve the public interest and promote the public health, safety and welfare. All rights, Item: 8
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8 powers, duties, privileges and immunities vested by the Health and Safety Code in the Redevelopment Agency shall be vested in the City Council.
2.24.030 City Manager as Agency Executive Director.
The City Manager shall act as the Executive Director of the Redevelopment Agency, and shall exercise all powers and authority granted to the Executive Director by applicable law, the Redevelopment Agency, and/or the City Council.
Amended Lake Forest Municipal Code Section 2.62.014
___
2.62.014 Criminal history information—Specified license and permit applicants.
A. Whenever a person or persons apply for an escort service license or escort license in accordance with Chapter 5.08 of this Code, the City Manager shall cause a criminal background investigation to be conducted in accordance with the provisions of this chapter. Said criminal background investigation shall include a request of the State Department of Justice for a copy of State Summary Criminal History Information involving any specified criminal acts as defined herein and any disqualifying conduct as defined in Chapter 5.08 of this Code.
B. Whenever a person or persons apply for an adult-oriented business license in accordance with Chapter 5.10 of this Code, the City Manager shall cause a criminal background investigation to be conducted in accordance with the provisions of this chapter and Chapter 5.10 of this Code. Said criminal background investigation shall include a request of the State Department of Justice for a copy of the State Summary Criminal History Information involving any specified criminal acts as defined herein and as defined in Chapter 5.10 of this Code.
C. Whenever a person or persons apply for an adult-oriented live entertainer license in accordance with Chapter 5.12 of this Code, the City Manager shall cause a criminal background investigation to be conducted in accordance with the provisions of this chapter and Chapter 5.12 of this Code.
Said criminal background investigation shall include a request of the State Department of Justice for a copy of the State Summary Criminal History Information involving any specified criminal acts as defined herein and as defined in Chapter 5.12 of this Code.
D. Whenever a person or persons apply for a figure model license in accordance with Chapter 5.13 of this Code, the City Manager shall cause a criminal background investigation to be conducted in accordance with the provisions of this chapter and Chapter 5.13 of this Code. Said criminal background investigation shall include a request of the State Department of Justice for a copy of the State Summary Criminal History Information involving Item: 8
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8 any specified criminal acts as defined herein and as defined in Chapter 5.13 of this Code.
E. Whenever a person or persons apply for a massage establishment license in accordance with Chapter 5.07 of this Code, the City Manager shall cause a criminal background investigation to be conducted in accordance with the provisions of this chapter and Chapter 5.07 of this Code. Said criminal background investigation shall include a request of the State Department of Justice for a copy of the State Summary Criminal History Information involving any specified criminal acts as defined herein and as defined in Chapter 5.07 of this Code.
F. Whenever a person or persons apply for a commercial fortune-telling license in accordance with Chapter 5.32 of this Code, the City Manager shall cause a criminal background investigation to be conducted in accordance with the provisions of this chapter and Chapter 5.32 of this Code. Said background investigation shall include a request of the State Department of Justice for a copy of the State Summary Criminal History Information involving any “particular criminal act” as defined in this chapter and as defined in Chapter 5.32 of this Code.
G F. Whenever a person or persons apply for an adult use planning permit in accordance with Chapter 9.08 of this Code, the City Manager shall cause a criminal background investigation to be conducted in accordance with the provisions of this chapter and Chapter 9.08 of this Code. Said criminal background investigation shall include a request of the State Department of Justice for a copy of the State Summary Criminal History Information involving any specified criminal acts as defined herein and as defined in Chapter 9.08 of this Code.
H G. A copy of the information will be sent to the requester. All information obtained hereunder shall be confidential and used only for the purposes set forth herein. It is unlawful and a misdemeanor for any person to release or use such information for any purpose not authorized herein.
I H. Applicants for licenses subject to this section shall be required to pay the expedited processing fee set by the State Department of Justice in addition to the basic processing fee set by the State Department of Justice.
Amended Lake Forest Municipal Code Section 5.05.035
___
5.05.035 Special event permit.
A special event permit is required for any special event, as defined in Section 5.05.020., A special event located at a public park only shall require a Item: 8
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8 public park special event permit from the Community Services Department. All other special events shall require a special event permit from the Community Development Department. A special events permit is required for events having any of the following characteristics:
1. Involves the use of public property or facilities or has a substantial impact on traffic, public property or facilities in a way that may require the provision of City public services in response; and/or
2. Could create noise in excess of the noise standards set forth in Section 11.16.040 (“Exterior Noise Standards”) or Section 11.16.050 (“Interior Noise Standards”); and/or
3. Involves the use of any pyrotechnic device as defined in the California Health and Safety Code; and/or
4. Involves the construction or installation of any temporary or permanent tents, canopies or other structures, if the construction or installation requires a permit from the City’s Fire and/or Community Development Department; and/or
5. Involves the use of any exotic or nondomesticated animals, or mechanical amusement rides.
Amended Lake Forest Municipal Code Section 5.07.140
___
5.07.140 Display of permits, licenses.
Each massage establishment shall display its massage establishment license, and as well as the individual CAMTC certificate and individual license for of each certified massage therapist employed or performing massages at the establishment, in an open and conspicuous place that is visible upon first entering the premises. Passport-size photographs of the massage establishment licensee shall be affixed to the massage establishment license on display pursuant to this section. Each certified massage therapist shall display his or her license issued under this chapter in an open and conspicuous place at the premises where the massage is being performed.
Amended Lake Forest Municipal Code Section 5.40.070
___
5.40.070 Signage requirements.
A. Within ninety (90) calendar days of the effective date of this section, every shopping cart made available for use by customers shall have a sign Item: 8
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8 permanently affixed to it, not smaller than sixty (60) square inches, consisting of white lettering at least three-sixteenth (3/16) inches in height on a contrasting background which:
1. Identifies the specific name and location of the retailer that owns or uses the cart;
2. Notifies the public of the procedure to be utilized for authorized removal of the cart from the premises;
3 2. Notifies the public that the unauthorized removal of the cart from the premises of the business, or the unauthorized possession of the cart, is a violation of state and local law; and
4 3. Lists a valid telephone number or address for returning the cart removed from the premises to the retailer.
B. Within ninety (90) calendar days of the effective date of this section, signs shall be posted at the entrance and exit to the retail establishment, measuring no less than seventeen (17) inches by twenty-two (22) inches in size, consisting of white lettering no smaller than one (1) inch in height on a contrasting background which notifies customers that shopping carts may not be removed from the premises. Additional signs may be posted on the premises notifying customers that shopping carts may not be removed from the premises.
C. Such signs shall be maintained in legible condition at all times and replaced as becomes necessary due to weathering, damage, vandalism, etc.
Amended Lake Forest Municipal Code Section 10.12.060
___
10.12.060 Dogs to be curbed.
A person having custody of any dog shall not permit, either willfully or through failure to exercise due care or control, any such dog to defecate or urinate upon:
A. A public sidewalk or parkway comprising the area between the street and sidewalk;
B. The floor of any common hall in any apartment house, tenement house, motel or other multiple dwelling;
C. Any entranceway, stairway or wall immediately abutting on a public sidewalk;
Item: 8
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8 D. The floor of any theater, shop, store, office building or other building used by the public; or
E. Any public park or the Lake Forest Civic Center campus.
The person having custody of any dog shall immediately remove any feces deposited by such dog.
Amended Lake Forest Municipal Code Section 13.28.040
___
E. Animals.
1. No person shall cause, permit, or allow any animal owned or possessed by him or her, or any animal in his or her care, custody, or control to be present at the Civic Center except:
a. Dogs or cats when confined within the interior of a vehicle;
b. Dogs which have been specially trained and are being used by blind or disabled persons to aid and guide them in their movements;
c. In connection with activities authorized in writing by the Council or the City Manager or designee;
d. Fowls or animals turned loose at the direction of the Council.
Item: 8
97 CITY COUNCIL AGENDA REPORT
MEETING DATE: 2/6/2024
DEPARTMENT: City Manager
SUBJECT:
FIRST AMENDMENT TO PROFESSIONAL CONSULTANT SERVICES
AGREEMENT WITH THERESA DOBBS (DBA HOUSING REHABILITATION
CONSULTING SERVICES) FOR HOUSING REHABILITATION CONSULTING SERVICES.
RECOMMENDED ACTION(S):
1. Approve the proposed First Amendment to the Professional Consultant Services Agreement with Theresa Dobbs dba Housing Rehabilitation Consulting Services.
2. Authorize the Mayor to execute, and the City Clerk to attest, the First Amendment to the Agreement with Theresa Dobbs dba Housing Rehabilitation Consulting Services, substantially in the form attached.
EXECUTIVE SUMMARY:
Housing Rehabilitation Consulting Services (“HRCS”) has provided consulting services to the City and the Lake Forest Housing Authority (“Authority”) since June 6, 2017. HRCS administers the City’s Community Development Block Grant (“CDBG”)- and Housing Authority-funded Housing Rehabilitation and Neighborhood Pride Paint programs. The 2022 Professional Services Agreement with HRCS (“Agreement”) was approved with a three-year term with the option for up to two one-year extensions and a total compensation of $72,360 (Attachment 1). The Agreement is currently set to expire on June 30, 2025.
Staff recommends the City Council approve the proposed First Amendment to the Agreement with HRCS (“First Amendment”) (Attachment 2). The proposed First Amendment would increase the total compensation by $40,000, or 55% of the initial agreement compensation and does not include an increase in hourly rates. The need for additional funding arises from the unexpectedly high volume of loans issued through the Housing Rehabilitation Loan Program ("Housing Rehab Program") and grants awarded by the Neighborhood Pride Paint Grant Program ("Paint Program"). This accelerated expenditure surpassed the initially projected timeline for fund utilization.
Item: 9
98 The proposed compensation increase exceeds the City Manager’s authority under the City’s Purchasing and Contracting Guidelines which is 10% of the original Agreement’s total compensation. Accordingly, the proposed First Amendment was prepared by the Finance department and was reviewed and approved as to form by the City Attorney.
BACKGROUND:
HRCS administers the City’s Housing Rehabilitation Loan Program and Neighborhood Pride Paint Grant Program under contract (“Agreement”) for the City and the Authority. Housing Rehab Loans are funded with annual Community Development Block Grant allocations and revolving loan funds (i.e., loan repayments). The Housing Rehab Program also encompasses loans issued by the Lake Forest Redevelopment Agency (“Agency”) prior to its dissolution and the transfer of Agency assets to the Authority. Accordingly, the Agreement is a tri-party contract between the City, Authority, and HRCS.
HRCS serves as a Housing Division consultant under the oversight of the Assistant City Manager. Pursuant to the Agreement, all services are provided by Theresa Dobbs – Principal and Owner, and Rachel Berg – Associate. Prior to the current Agreement, Ms. Dobbs provided similar consulting services to the City as sub-contractors to Lilley Planning Group.
The Housing Rehab and Paint Programs provide financial assistance to income- qualified Lake Forest homeowners in the form of loans and grants, respectively, to address deferred property maintenance. Both programs assist low- to moderate-income residents with housing related needs and achieve the broader Housing Element and Consolidated Plan goals of improving the quality of housing, the appearance of neighborhoods, and the value of property in the city.
The Housing Rehab Program provides zero- and low-interest loans of up to $30,000 for conventional single-family homeowners, and up to $15,000 for mobile or manufactured-home owners. The Paint Program provides grants for repainting homes, including prep and lead-based paint testing, termite inspections, and repairs. Subject to annual approval by the City Council and in conjunction with the CDBG Annual Action Plan, both programs are fully funded by the CDBG program plus a small portion paid with Authority funds.
During the most recently completed Consolidated Plan cycle, FY 2019-2020, the City issued a combined total of 17 housing rehabilitation loans and paint grants to Lake Forest homeowners. Additionally, in the current cycle, FY 2020-2024, the City has issued a combined 57 housing rehabilitation loans and paint grants. The programs further the City’s goal of improving the City’s housing stock. Both Item: 9
99 programs are popular with Lake Forest homeowners such that loan and grant applications have typically exceeded available funding each year.
DISCUSSION:
Staff is requesting City Council approval of the proposed First Amendment to the Agreement with HRCS for increased funding to administer the City’s CDBG- and Authority-funded Housing Rehab and Paint Programs. The current Agreement has a total of $72,360 in total compensation and is set to expire June 30, 2025.
As of December 2023, there is approximately $26,130 dollars remaining. Staff anticipates the total compensation could be entirely expended before the end of the initial three-year term. No changes to the extensive and detailed Scope of Work included in the proposed First Amendment.
Compensation/Hourly Rate
The proposed First Amendment would increase the total compensation of the Agreement by $40,000, or 55% of the initial compensation amount, to $112,360.
The requested additional funding is driven by the unexpectedly high issuance of loans through the Housing Rehabilitation Loan Program and the allocation of grants from the Neighborhood Pride Paint Grant Program. This expedited utilization of funds surpassed the initially anticipated timeframe.
Increasing the total compensation would allow services to continue under the Agreement through the remaining term of the Agreement without interruption.
The proposed First Amendment would also allow staff to spend more CDBG funds in support of the City’s goal to adhere to HUD’s CDBG expenditure requirements. In addition, it would allow the consultant to authorize more housing rehab loans and paint program applications throughout the City. This would achieve the goals of the 2020-2024 Consolidated Plan and the Southwest Lake Forest initiative by supporting more income qualified applicants. Staff is currently working on an amendment to the Paint Program Policy which would allow more grant funding per applicant. The proposed First Amendment would maintain the hourly billing rates of HRCS staff as shown in Table 1 below:
Table 1: HRCS Staff Hourly Rates
HRCS STAFF HOURLY RATE
Theresa Dobbs –
Owner/Principal: $90.00
Rachel Berg – Associate $60.00
Sections 3.3.1 – Compensation of the Agreement provides for the total compensation amount to be increased subject to the City Council or City Item: 9
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Manager approval, as applicable under the Purchasing and Contracting Guidelines.
Vendor Performance Assessment
Pursuant to the City’s Purchasing and Contracting Guidelines, staff is required to complete a vendor performance assessment during a proposed contract amendment. The vendor assessment is a guide to determine if a contract should be amended, renewed, or terminated based on performance in the following categories: performance of scope of services, timeliness, budget performance, and customer service. Utilizing an evaluation form, staff rates the consultant in each category.
Table 2 below provides an overall assessment of the consultant’s performance since work under the original Agreement was initiated. Consistent with the City’s Purchasing and Contracting Guidelines, including the vendor assessment, the contract is eligible for a first amendment.
Table 2: Consulting Services Performance Review
Staff recommends the City Council approve the proposed First Amendment to the Agreement with HRCS. The Finance Department prepared the Amendment and the City Attorney reviewed and approved it as to form.
FISCAL IMPACT:
The proposed First Amendment to the Agreement would authorize a $40,000 increase in total consultant compensation for a total of $112,360. All consultant services would be charged based on hourly rates specified in the Agreement.
All consultant costs corresponding to the Agreement would be paid with annual CDBG program, Rehab Program revolving loan, and Housing Authority funds.
Sufficient funds exist in the 2023-2025 Operating Budget.
Theresa Dobbs DBA Housing Rehabilitation Consulting Services Performance Review –
July 1, 2022 – February 1, 2024
Rating Category Unsatisfied – Very Satisfied
Performance of Scope of Services: ☐Unsatisfied ☐Satisfied ☒Very Satisfied ☐N/A Timeliness: ☐Unsatisfied ☐Satisfied ☒Very Satisfied ☐N/A Budget Performance: ☐Unsatisfied ☐Satisfied ☒Very Satisfied ☐N/A Customer Service: ☐Unsatisfied ☐Satisfied ☒Very Satisfied ☐ N/A Item: 9
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ATTACHMENTS:
1. HRCS Agreement
2. Proposed First Amendment to HRCS Agreement
Initiated By: Hope Hairrell, Management Assistant
Submitted By: Keith Neves, Assistant City Manager
Approved By: Debra Rose, City Manager
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ATTACHMENT 1
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meet any other established schedules and deadlines.
3.2 Responsibilities of Consultant.
3.2.1 Independent Contractor: Control and Payment of Subordinates. The Services shall be performed by Consultant or under its supervision. Consultant will determine the means, methods and details of performing the Services subject to the requirements of this Agreement. City retains Consultant on an independent contractor basis and not as an employee.
Consultant retains the right to perform similar or different services for others during the term of this Agreement. Any additional personnel performing the Services under this Agreement on behalf of Consultant shall also not be employees of City and shall at all times be under Consultant's exclusive direction and control. Neither City, nor any of its officials, officers, directors, employees or agents shall have control over the conduct of Consultant or any of Consultant's officers, employees, or agents, except as set forth in this Agreement. Consultant shall pay all wages, salaries, and other amounts due such personnel in connection with their performance of Services under this Agreement and as required by law. Consultant shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: social security taxes, income tax withholding, unemployment insurance, disability insurance, and workers' compensation insurance.
3.2.2 Schedule of Services. Consultant shall perform the Services expeditiously, within the term of this Agreement, and in accordance with the Schedule of Services set forth in Exhibit "B" attached hereto and incorporated herein by reference. Consultant represents that it has the professional and technical personnel required to perform the Services in conformance with such conditions. In order to facilitate Consultant's conformance with the Schedule, City shall respond to Consultant's submittals in a timely manner. Upon request of City, Consultant shall provide a more detailed schedule of anticipated performance to meet the Schedule of Services.
3.2.3 Conformance to Applicable Requirements. All work prepared by Consultant shall be subject to the approval of City.
3.2.4 Substitution of Key Personnel. Consultant has represented to City that certain key personnel will perform and coordinate the Services under this Agreement. Should one or more of such personnel become unavailable, Consultant may substitute other personnel of at least equal competence upon written approval of City. In the event that City and Consultant cannot agree as to the substitution of key personnel, City shall be entitled to terminate this Agreement for cause. As discussed below, any personnel who fail or refuse to perform the Services in a manner acceptable to the City, or who are determined by the City to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project or a threat to the safety of persons or property, shall be promptly removed from the Project by the Consultant at the request of the City. The key personnel for performance of this Agreement are as follows: Theresa Dobbs, Owner.
(BB&K 2019)
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employees, agents, and volunteers free and harmless, pursuant to the indemnification provisions of this Agreement, from any claim or liability arising out of any failure or alleged failure to comply with such laws, rules or regulations.
3.2.10 Safety. Consultant shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out its Services, the Consultant shall at all times be in compliance with all applicable local, state and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed. Safety precautions, where applicable, shall include, but shall not be limited to: (A) adequate life protection and lifesaving equipment and procedures; (B) instructions in accident prevention for all employees and subconsultants, such as safe walkways, scaffolds, fall protection ladders, bridges, gang planks, confined space procedures, trenching and shoring, equipment and other safety devices, equipment and wearing apparel as are necessary or lawfully required to prevent accidents or injuries; and (C) adequate facilities for the proper inspection and maintenance of all safety measures.
3.2.11 Insurance. Consultant agrees to procure and maintain, at Consultant's expense all insurance specified in Exhibit "D" attached hereto and by this reference incorporated herein. Consultant shall require all subconsultants to carry the same policies and limits of insurance that the Consultant is required to maintain, unless otherwise approved in writing by the City.
3.2.12 Recordkeeping and Weekly Time Limits. Consultant shall keep weekly, written records of all time worked by Consultant (including its personnel, employees or agents) in connection with the performance of the Services. These weekly records shall specify, for each individual who performs the Services, daily start time(s) and end time(s) for each day during the week, and must include all work time spent by each individual in connection with the Services.
For purposes of this Section 3.2.12, "week" shall be from Sunday through Saturday. Consultant may not, without City's prior written consent, authorize, allow or permit any individual who performs the Services to work more than 40 hours, or more than 6 days, during a week.
Consultant shall provide City with copies of Consultant's written records on a monthly basis, alongside Consultant's invoice, which Consultant is required to submit to City pursuant to Section
3.3.2 of the Agreement. Consultant shall submit weekly work records for all weeks that ended within the same calendar month as the month for which Consultant submitted a monthly invoice.
By submitting the written records to City, Consultant represents and warrants that the records are accurate and reflect all time spent performing the Services during the week.
3.3 Fees and Payments.
3.3.1 Compensation. Consultant shall receive compensation, including authorized reimbursements, for all Services rendered under this Agreement at the rates set forth in Exhibit "C" attached hereto and incorporated herein by reference. The total compensation shall not exceed SEVENTY-TWO THOUSAND THREE HUNDRED SIXTY DOLLARS ($72,360) without written approval of the City Council or City Manager as applicable. Extra Work may be authorized, as described below, and if authorized, will be compensated at the rates and manner set forth in this Agreement.
3.3.2 Payment of Compensation. Consultant shall submit to City a monthly invoice which indicates work completed and hours of Services rendered by Consultant. The (BB&K 2019)
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3.5 Accounting Records.
3.5.1 Maintenance and Inspection. Consultant shall maintain complete and accurate records with respect to all costs and expenses incurred under this Agreement. All such records shall be clearly identifiable. Consultant shall allow a representative of City during normal business hours to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement. Consultant shall allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period of three (3) years from the date of final payment under this Agreement.
3.6 General Provisions.
3.6.1 Termination of Agreement.
3.6.1.1 Grounds for Termination. City may, by written notice to Consultant, terminate the whole or any part of this Agreement at any time and without cause by giving written notice to Consultant of such termination, and specifying the effective date thereof, at least seven (7) days before the effective date of such termination. Upon termination, Consultant shall be compensated only for those services which have been adequately rendered to City, and Consultant shall be entitled to no further compensation. Consultant may not terminate this Agreement except for cause.
3.6.1.2 Effect of Termination. If this Agreement is terminated as provided herein, City may require Consultant to provide all finished or unfinished Documents and Data and other information of any kind prepared by Consultant in connection with the performance of Services under this Agreement. Consultant shall be required to provide such document and other information within fifteen (15) days of the request.
3.6.1.3 Additional Services. In the event this Agreement is terminated in whole or in part as provided herein, City may procure, upon such terms and in such manner as it may determine appropriate, services similar to those terminated.
3.6.1.4 Delivery of Notices. All notices permitted or required under this Agreement shall be given to the respective parties at the following address, or at such other address as the respective parties may provide in writing for this purpose:
Consultant:
City:
Theresa Dobbs OBA Housing Rehabilitation Consulting
Services
27341 Ventosa
Mission Viejo, CA 92691
ATTN: Theresa Dobbs, Owner
City of Lake Forest
100 Civic Center Drive
Lake Forest, CA 92630
ATTN: City Clerk
Such notice shall be deemed made when personally delivered or when mailed, forty-eight (48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to the party at its applicable address. Actual notice shall be deemed adequate notice on the date actual notice (BB&K 2019)
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occurred, regardless of the method of service.
3.6.2 Ownership of Materials and Confidentiality.
3.6.2.1 Documents & Data: Licensing of Intellectual Property. This Agreement creates a non-exclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, and other intellectual property embodied in plans, specifications, studies, drawings, estimates, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings or data magnetically or otherwise recorded on computer diskettes, which are prepared or caused to be prepared by Consultant under this Agreement ("Documents & Data"). Consultant shall require all subconsultants to agree in writing that City is granted a non-exclusive and perpetual license for any Documents & Data the subconsultant prepares under this Agreement. Consultant represents and warrants that Consultant has the legal right to license any and all Documents & Data.
Consultant makes no such representation and warranty in regard to Documents & Data which were prepared by design professionals other than Consultant or provided to Consultant by the City. City shall not be limited in any way in its use of the Documents & Data at any time, provided that any such use not within the purposes intended by this Agreement shall be at City's sole risk.
3.6.2.2 Confidentiality. All ideas, memoranda, specifications, plans, procedures, drawings, descriptions, computer program data, input record data, written information, and other Documents & Data either created by or provided to Consultant in connection with the performance of this Agreement shall be held confidential by Consultant. Such materials shall not, without the prior written consent of City, be used by Consultant for any purposes other than the performance of the Services. Nor shall such materials be disclosed to any person or entity not connected with the performance of the Services or the Project. Nothing furnished to Consultant which is otherwise known to Consultant or is generally known, or has become known, to the related industry shall be deemed confidential. Consultant shall not use City's name or insignia, photographs of the Project, or any publicity pertaining to the Services or the Project in any magazine, trade paper, newspaper, television or radio production or other similar medium without the prior written consent of City.
3.6.2.3 Confidential Information. The City shall refrain from releasing Consultant's proprietary information ("Proprietary Information") unless the City's legal counsel determines that the release of the Proprietary Information is required by the California Public Records Act or other applicable state or federal law, or order of a court of competent jurisdiction, in which case the City shall notify Consultant of its intention to release Proprietary Information.
Consultant shall have five (5) working days after receipt of the Release Notice to give City written notice of Consultant's objection to the City's release of Proprietary Information. Consultant shall indemnify, defend and hold harmless the City, and its officers, directors, employees, and agents from and against all liability, loss, cost or expense (including attorney's fees) arising out of a legal action brought to compel the release of Proprietary Information. City shall not release the Proprietary Information after receipt of the Objection Notice unless either: (1) Consultant fails to fully indemnify, defend (with City's choice of legal counsel), and hold City harmless from any legal action brought to compel such release; and/or (2) a final and non-appealable order by a court of competent jurisdiction requires that City release such information.
3.6.3 Cooperation; Further Acts. The Parties shall fully cooperate with one another, and shall take any additional acts or sign any additional documents as may be necessary, (BB&K 2019)
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hypothecates or transferees shall acquire no right or interest by reason of such attempted assignment, hypothecation or transfer.
3.6.12 Construction; References; Captions. Since the Parties or their agents have participated fully in the preparation of this Agreement, the language of this Agreement shall be construed simply, according to its fair meaning, and not strictly for or against any Party. Any term referencing time, days or period for performance shall be deemed calendar days and not work days. All references to Consultant include all personnel, employees, agents, and subconsultants of Consultant, except as otherwise specified in this Agreement. All references to City include its elected officials, officers, employees, agents, and volunteers except as otherwise specified in this Agreement. The captions of the various articles and paragraphs are for convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content, or intent of this Agreement.
3.6.13 Amendment; Modification. No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing and signed by both Parties.
3.6.14 Waiver. No waiver of any default shall constitute a waiver of any other default or breach, whether of the same or other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by a Party shall give the other Party any contractual rights by custom, estoppel, or otherwise.
3.6.15 No Third-Party Beneficiaries. There are no intended third party beneficiaries of any right or obligation assumed by the Parties.
3.6.16 Invalidity; Severability. If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.
3.6.17 Prohibited Interests. Consultant maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Consultant, to solicit or secure this Agreement. Further, Consultant warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability. For the term of this Agreement, no member, officer or employee of City, during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.
3.6.18 Equal Opportunity Employment. Consultant represents that it is an equal opportunity employer and it shall not discriminate against any subconsultant, employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex or age. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination. Consultant shall also comply with all relevant provisions of City's Minority Business Enterprise program, Affirmative Action Plan or other related programs or guidelines currently in effect or hereinafter enacted.
3.6.19 Labor Certification. By its signature hereunder, Consultant certifies that it (BB&K 2019)
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is aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for Worker's Compensation or to undertake self-insurance in accordance with the provisions of that Code, and agrees to comply with such provisions before commencing the performance of the Services.
3.6.20 Authority to Enter Agreement. Consultant has all requisite power and authority to conduct its business and to execute, deliver, and perform the Agreement. Each Party warrants that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and bind each respective Party.
3.6.21 Counterparts. This Agreement may be signed in counterparts, each of which shall constitute an original.
3. 7 Subcontracting.
3.7.1 Prior Approval Required. Consultant shall not subcontract any portion of the work required by this Agreement, except as expressly stated herein, without prior written approval of City. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement.
3.7.2 Use of Independent Contractors and Subcontractors. Consultant is aware of statutory and case law regarding classification of workers as independent contractors, including California Labor Code Section 2750.3 and Dynamex Operations West, Inc. v. Superior Court, 4 Cal. 5th 903 (2018). To ensure that Consultant is in compliance with the California Labor Code, Consultant shall only utilize its employees to provide the Services. Consultant may not provide the services through any independent contractor, subcontractor or subconsultant ("Subcontractor(s)") unless approved by the City as set forth in Section 3.6.1 of the Agreement.
Consultant represents and warrants that all personnel who perform the Services on Consultant's behalf are Consultant's employees, and that Consultant complies with all applicable laws, rules and regulations governing its employees, including, but not limited to, the California Labor Code, Unemployment Insurance Code and all applicable Industrial Welfare Commission Wage Orders.
Any provisions in the Agreement which provide, imply or suggest that Consultant may use Subcontractors to provide the Services, including Section 3.2.8 of the Agreement, are modified to be consistent with this Section. In the event that City authorizes Consultant to use a Subcontractor, Consultant shall enter into a written agreement with the Subcontractor, which must include all applicable provisions of the Agreement, including a restriction on the Subcontractor's use of further independent contractors, subcontractors or subconsultants without the City's prior written consent.
3.7.3 Labor Code Compliance Audit Rights. City shall have the right to audit Consultant's compliance with this Agreement and California Labor laws with respect to Consultant's personnel, including, but not limited to, Consultant's compliance with Sections 3.2.1 and 3.6.2. Upon City's request, Consultant shall provide within five (5) business days documents sufficient to demonstrate its compliance with this Agreement including, but not limited to, W4s, itemized wage statements, employee handbooks, and time cards for any of Consultant's personnel who provide the Services.
3.7.4 Acknowledgment of Employment Relationship. Consultant shall provide each of its employees who it assigns to provide the Services with a copy of the "Acknowledgment of Employment Relationship" attached hereto and incorporated herein as Exhibit "E" (BB&K 2019)
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("Acknowledgment"). Each employee who provides the Services must execute the Acknowledgment before Consultant may permit the employee to provide Services for City.
Consultant shall provide a copy of each executed Acknowledgment to City upon City's request. [Signature on following page]
(BB&K2019)
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EXHIBIT "A"
SCOPE OF SERVICES
The consultant shall provide program implementation services for the two programs listed below.
1. Housing Rehabilitation Loan Program
2. Neighborhood Pride Paint Program
1. Housing Rehabilitation Loan Program ("Loan Program") The Loan Program assists income-qualified homeowners with zero-percent deferred interest or three-percent amortized interest loans for conventional single-family homes, condominiums, and mobile/manufactured homes. The zero- interest deferred loans require no monthly payments. However, total loan repayment is due at the time of sale, refinance, leasing to a tenant, or transfer of title. The three-percent interest loans require monthly payments and are fully amortized over 15 years. The majority of loans in the City's portfolio are deferred.
Currently, mobile/manufactured homeowners are eligible to receive up to $15,000, and conventional single-family homeowners are eligible for up to $30,000. The Loan Program may be modified to increase maximum amounts during the contract term. Such action shall not constitute a basis for an amendment to the contract. An estimated 8 -12 loans are issued each year. The Loan Program is typically funded with annual Federal Community Development Block Grant (CDBG) allocations and program income (loan repayments) and is subject to City Council funding approval on an annual basis. Program funding is not guaranteed and may be increased, reduced, or eliminated annually. Program implementation services include, but shall not be limited to, the following:
A. Program Coordination
a. Documentation of the income level, ethnicity, age of persons, and/or households participating in or benefiting from the City's program. b. Documentation of the number of persons and/or households participating in or benefiting from the City's program. c. Documentation of all CDBG funds expended for the program. d. Other program administration-related records as may be required by the City. e. Assist with promotion of the program to increase participation. f. Provide periodic assessment of the program and communicate possible ways to improve it.
g. Inform and respond to staff inquiries and participate in weekly meetings with assigned Community Development Department staff as necessary to provide program implementation updates, address concerns, review documents, and generally keep assigned City staff informed as to the program implementation. h. Coordinate Loan Committee meetings with committee members. Prepare loan (BB&K 2019) Exhibit "A"-1
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applications for review, provide an overview of application material and description of work to be done, discuss the City's risk assessment for the proposed loan and provide recommendations for loan approvals or denials.
i. Provide courteous and timely service to program participants. Calls from program applicants/participants shall be returned within 48 hours. j. Provide professional service in a manner that reflects positively for the program.
B. Applicant Eligibility
a. Pursuant to applicable federal and local regulations, review loan applications to determine the following:
b. Applicant's financial and eligibility status: analyze tax returns, household composition, and employment history, confirm ownership status. c. Obtain and evaluate asset verifications regarding savings, checking, certificates of deposit, stocks, and bo.nds.
d. Applicant's creditworthiness: evaluate credit report, title, and appraisal.
Determine debt-to-equity ratio.
e. Order the appropriate forms, reports, appraisals, or records as necessary to determine the above (i.e., Policy of Insurance of Record Title, PIRT, for each project involving real estate).
C. Preparation of Work Specifications, Cost Estimates, Inspection Services, and Construction Management.
a. Conduct property inspections to identify work items to bring property into conformance with City's rehabilitation standards.
b. Preparation of work write-up accurately describing necessary repairs and improvements, including a cost estimate.
c. Set-up lead-based paint testing, as appropriate, with a professional testing company under contract with City; arrange for testing with homeowners and stay in contact with homeowners as necessary.
d. Evaluate bids submitted by contractors in relation to cost estimates. e. Ensure the general contractor and any subcontractors are licensed by the California State Contractors Licensing Board and that contractor is properly insured and provides verification.
f. Conduct a pre-construction meeting as necessary to review all anticipated work with all interested parties and complete all necessary agreements between (BB&K 2019) Exhibit "A"-2
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parties and City-approved forms.
D. Preparation of all required Loan Documents and Contracts on forms approved by City, including but not limited to:
a. Promissory note;
b. Notice of Right to Cancel (Notice of Rescission);
c. Deed of Trust, if applicable/Mobile Home Statement to Encumber or Statement of Lien or another securing document. Deed of Trust and Request for Notice of Title Change will be sent to Orange County Recorder for recordation. The mobile home Statement to Encumber or Statement of Lien will be sent to the Orange County Department of Housing & Community Development (HCD) for recordation;
d. Request for Notice of Title Change;
e. Truth-In-Lending Disclosure Statement;
f. Construction contract;
g. Materials and Lien Release forms;
h. Loan Disbursement Instructions;
i. Loan Agreement;
j. Fair Lending Notice;
k. Additional/other documents as required by the City.
E. Coordinate with firms under contract to the City providing Housing Rehabilitation Loan Portfolio Management Services and Fund Dispersement Services as necessary, including review and approval of invoices for such services.
F. Fund Control/Disbursement and Project Completion/Close-Out a. Coordinate with the City to set up loan/escrow account; b. When applicable, progress payments must be preceded by conducting on-site, not drive-by, inspections of the rehabilitation work before preparing progress payment forms authorizing issuance of payment to contractor, executed by the owner and contractor;
c. Secure all necessary sign-off documents before obtaining homeowners authorization for final payment:
i. Require that contractor complete work in accordance with the bid and the (BB&K 2019) Exhibit "A"-3
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approved work schedule.
ii. Conduct a final on-site, not drive-by, inspection of property and provide documentation of results of inspection indicating that final inspection has been conducted.
iii. Provide documentation that sign-off on permits for roofing, plumbing, electrical, etc. has been verified.
iv. Obtain materials and lien releases signed by contractor. d. Obtain homeowner authorization to disburse payments; e. At City Hall, maintain accurate accounting records of all loan disbursements and current account balances and execute close out of case by ensuring that the permanent file contains complete documentation and accurate records which comply with federal reporting requirements;
f. Upon project completion, obtain a notice of completion for each contractor. g. In addition, to administering new Loan Program loans, the consultant shall be responsible for the ongoing administration of previously issued loans and loan repayment processing.
2. Neighborhood Pride Paint Program ("Paint Program")
The Paint Program assists qualified homeowners with the exterior painting of their homes. Grant recipients may be selected via a randomized selection process or first-come, first-served basis from a list of eligible applicants. The Paint Program is typically funded with annual Federal Community Development Block Grant (CDBG) allocations and is subject to City Council funding approval on an annual basis. Program funding is not guaranteed and may be increased, reduced, or eliminated annually. Depending upon funding availability, an estimated 5-7 homes are painted each year. Homes are painted by professional paint contractors selected by each homeowner. Consultant services shall include:
A. Public outreach, in coordination with City staff and using various City communication channels, as appropriate, to promote the program and solicit Paint Program grant applications.
B. Obtain and verify the following information from homeowners:
a. Tax returns for prior two years, bank statements, pay stubs, and other supporting documentation to ensure income qualification; b. Copy of title/ownership or grant deeds. If individuals other than the applicant are on title, research and verify that they do not contribute to household income to verify income eligibility for the grant. Obtain certification of non contribution;
(BB&K 2019)
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c. Secure commitment and participation of homeowners; obtain waiver documentation.
C. Work with homeowners on selection of paint colors for walls and trim.
D. Set-up lead-based paint testing, as appropriate, with professional testing company under contract to the City; arrange for testing with homeowners and notify homeowners as appropriate.
E. Coordinate with paint contractor regarding cost of preparation and painting of homes.
F. Meet with homeowners and discuss reasonable extent of painting required and constraints (discuss paint colors and any issues with patio covers, side-yard fencing, etc.); if appropriate, work with homeowners and resolve issues that may arise.
G. Prepare files for project and correspondence to each homeowner regarding project.
H. Take before and after photographs of each home and maintain them as a file record.
I. Supervise activities and ensure clean-up by paint contractor after completion of painting.
J. Upon project completion, obtain a notice of completion from each contractor.
K. Maintain the following records and reports to assist the City in complying with its record-keeping requirements.
a. Documentation of the income level, ethnicity, and age of persons and/or households participating in or benefiting from the City's program; b. Documentation of the number of persons and/or households participating in or benefiting from the City's program; c. Documentation of all funds expended for the program; d. Documentation of expenses as identified in reimbursement requests; e. Documentation of how and when a determination was made as to the eligibility status of persons assisted, and
f. Any such other related records as the City shall require.
L. Inform and respond to issues identified by staff, including weekly meetings with responsible City staff to provide progress updates, address concerns, and review documents for signature.
{BB&K 2019)
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M. Provide courteous and timely service to program participants. Calls from program applicants/participants shall be returned within 48 hours.
N. Provide professional service in a manner that reflects positively for the program. (BB&K 2019)
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EXHIBIT "B"
SCHEDULE OF SERVICES
Consultant shall provide the services described above in Exhibit "A" Scope of Services as directed by the City.
(BB&K 2019)
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EXHIBIT "C"
COMPENSATION
Consultant shall be paid a not to exceed fee of seventy-two thousand three-hundred sixty dollars ($72,360) based on the following hourly rates:
Staff Hourly Rate
rTheresa Dobbs, Principal $90.00
Rachel Berg, Associate $60.00
In the event that this Agreement is renewed pursuant to Section 3.1.2, the rates set forth above may be increased or reduced each year at the time of renewal, but any increase shall not exceed the Consumer Price Index, All Urban Consumers, Los Angeles-Riverside-Orange Counties. (BB&K 2017) Exhibit "C"-1
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EXHIBIT "D"
INSURANCE REQUIREMENTS
3.2.11 Insurance.
3.2.11.1 Time for Compliance. Consultant shall not commence work under this Agreement until it has provided evidence satisfactory to the City that it has secured all insurance required under this section. In addition, Consultant shall not allow any subconsultant to commence work on any subcontract until it has provided evidence satisfactory to the City that the subconsultant has secured all insurance required under this section.
3.2.11.2 Types of Insurance Required. As a condition precedent to the effectiveness of this Agreement for work to be performed hereunder, and without limiting the indemnity provisions of the Agreement, the Consultant, in partial performance of its obligations under such Agreement, shall procure and maintain in full force and effect during the term of the Agreement the following policies of insurance. If the existing policies do not meet the insurance requirements set forth herein, Consultant agrees to amend, supplement or endorse the policies to do so.
(A) Commercial General Liability: Commercial General Liability Insurance which affords coverage at least as broad as Insurance Services Office "occurrence" form CG 0001, or the exact equivalent, with limits of not less than $1,000,000 per occurrence and no less than $2,000,000 in the general aggregate. Defense costs shall be paid in addition to the limits. The policy shall contain no endorsements or provisions (1) limiting coverage for contractual liability; (2) excluding coverage for claims or suits by one insured against another (cross-liability); or (3) containing any other exclusion(s) contrary to the terms or purposes of this Agreement. (B) Automobile Liability Insurance: Automobile Liability Insurance with coverage at least as broad as Insurance Services Office Form CA 0001 covering "Any Auto" (Symbol 1 ), or the exact equivalent, covering bodily injury and property damage for all activities with limits of not less than $1,000,000 combined limit for each occurrence. (C) Workers' Compensation: Workers' Compensation
Insurance, as required by the State of California and Employer's Liability Insurance with a limit of not less than $1,000,000 per accident for bodily injury and disease. (D) Professional Liability (Errors & Omissions): Professional Liability insurance or Errors & Omissions insurance appropriate to Consultant's profession with limits of not less than $1,000,000. Covered professional services shall specifically include all work to be performed under the Agreement and delete any exclusions that may potentially affect the work to be performed (for example, any exclusions relating to lead, asbestos, pollution, testing, underground storage tanks, laboratory analysis, soil work, etc.). If coverage is written on a claims-made basis, the retroactive date shall precede the effective date of the initial Agreement and continuous coverage will be maintained or an extended reporting period will be exercised for a period of at least three (3) years from termination or expiration of this Agreement.
3.2.11.3 Insurance Endorsements. Required insurance policies shall contain the following provisions, or Consultant shall provide endorsements on forms approved by the City to add the following provisions to the insurance policies:
(BB&K 2019)
55136.00220\40066058. l
(A) Commercial General Liability:
Exhibit "D"-1
Item: 9
(1) Additional Insured: The City, its officials, officers, employees, agents, and volunteers shall be additional insureds with regard to liability and defense of suits or claims arising out of the performance of the Agreement.
Additional Insured Endorsements shall not (1) be
restricted to "ongoing operations"; (2) exclude "contractual liability"; (3) restrict coverage to "sole" liability of Consultant; or (4) contain any other exclusions contrary to the terms or purposes of this Agreement. For all policies of Commercial General Liability insurance, Consultant shall provide endorsements in the form of ISO CG 20 10 10 01 and 20 37 10 01 (or endorsements providing the exact same coverage) to effectuate this requirement. (2) Cancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City except ten (10) days shall be allowed for non-payment of premium. (B) Automobile Liability:
(C) Cancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City except ten (10) days shall be allowed for non-payment of premium.
3.2.11.4 Professional Liability (Errors & Omissions):
(A) Cancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City except ten (10) days shall be allowed for non-payment of premium. (B) 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.
3.2.11.5 Workers' Compensation:
(A) Cancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City except ten {10) days shall be allowed for non-payment of premium. {B) Waiver of Subrogation: A waiver of subrogation stating that the insurer waives all rights of subrogation against the City, its officials, officers, employees, agents, and volunteers.
3.2.11.6 Primary and Non-Contributing Insurance. All policies of Commercial General Liability and Automobile Liability insurance shall be primary and any other insurance, deductible, or self-insurance maintained by the City, its officials, officers, employees, agents, or volunteers shall not contribute with this primary insurance. Policies shall contain or be endorsed to contain such provisions.
3.2.11. 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 these specifications to (BB&K 2019) Exhibit "E"-2
55 I 36.00220\40066058.I
Item: 9
waive their right of recovery prior to a loss. Consultant hereby waives its own right of recovery against the City, its officials, officers, employees, agents, and volunteers, and shall require similar written express waivers and insurance clauses from each of its subconsultants.
3.2.11.8 Deductibles and Self-Insured Retentions. Any deductible or self insured retention must be approved in writing by the City and shall protect the City, its officials, officers, employees, agents, and volunteers in the same manner and to the same extent as they would have been protected had the policy or policies not contained a deductible or self-insured retention.
3.2.11.9 Evidence of Insurance. The Consultant, concurrently with the execution of the Agreement, and as a condition precedent to the effectiveness thereof, shall deliver either certified copies of the required policies, or original certificates on forms approved by the City, together with all endorsements affecting each policy. Required insurance policies shall not be in compliance if they include any limiting provision or endorsement that has not been submitted to the City for approval. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf. At least fifteen (15 days) prior to the expiration of any such policy, evidence of insurance showing that such insurance coverage has been renewed or extended shall be filed with the City. If such coverage is cancelled or reduced and not replaced immediately so as to avoid a lapse in the required coverage, Consultant shall, within ten (10) days after receipt of written notice of such cancellation or reduction of coverage, file with the City evidence of insurance showing that the required insurance has been reinstated or has been provided through another insurance company or companies.
3.2.11.10 Failure to Maintain Coverage. In the event any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced immediately so as to avoid a lapse in the required coverage, City has the right but not the duty to obtain the insurance it deems necessary and any premium paid by City will be promptly reimbursed by Consultant or City will withhold amounts sufficient to pay premium from Consultant payments. In the alternative, City may cancel this Agreement effective upon notice.
3.2.11.11 Acceptability of Insurers. Each such policy shall be from a company or companies with a current A.M. Best's rating of no less than A:VII and authorized to transact business of insurance in the State of California, or otherwise allowed to place insurance through surplus line brokers under applicable provisions of the California Insurance Code or any federal law.
3.2.11.12 Enforcement of Agreement Provisions (non estoppel).
Consultant acknowledges and agrees that actual or alleged failure on the part of the City to inform Consultant of non-compliance with any requirement imposes no additional obligation on the City nor does it waive any rights hereunder.
3.2.11.13 Requirements Not Limiting. Requirement of specific coverage or minimum limits contained in this Appendix are not intended as a limitation on coverage, limits, or other requirement, or a waiver of any coverage normally provided by any insurance.
3.2.11.14 Insurance for Subconsultants. Consultant shall include all subconsultants engaged in any work for Consultant relating to this Agreement as additional insureds under the Consultant's policies, or the Consultant shall be responsible for causing (BB&K 2019)
55136.00220\40066058.1
Exhibit "E"-3
Item: 9
subconsultants to purchase the appropriate insurance in compliance with the terms of these Insurance Requirements, including adding the City, its officials, officers, employees, agents, and volunteers as additional insureds to the subconsultant's policies. All policies of Commercial General Liability insurance provided by Consultant's subconsultants performing work relating to this Agreement shall be endorsed to name the City, its officials, officers, employees, agents and volunteers as additional insureds using endorsement form ISO CG 20 38 04 13 or an endorsement providing equivalent coverage. Consultant shall not allow any subconsultant to commence work on any subcontract relating to this Agreement until it has received satisfactory evidence of subconsultant's compliance with all insurance requirements under this Agreement, to the extent applicable. The Consultant shall provide satisfactory evidence of compliance with this section upon request of the City.
(BB&K2019) Exhibit "E"-4
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EXHIBIT "E"
ACKNOWLEDGMENT OF EMPLOYMENT RELATIONSHIP
THERESA DOBBS ACKNOWLEDGMENT OF EMPLOYMENT RELATIONSHIP Theresa Dobbs DBA Housing Rehabilitation Consulting Services ("HRCS") provides rehabilitation loan consulting services for its public agency clients. One of HRCS's clients is the City of Lake Forest ("City"). HRCS and the City are parties to a Professional Consultant Services Agreement ("Agreement"), pursuant to which HRCS provides a variety of services to the City as called for in the Agreement ("Services").
In connection with HRCS's performance of the Agreement, it assigns its employees to provide the Services. Because HRCS has assigned you as one of its employees who will provide the Services, which may include working out of the City's offices or utilizing the City's resources, it is important that you understand that you are an HRCS employee, and not an employee of the City.
By signing below, you acknowledge and agree to the following:
• You are an employee of HRCS. HRCS will set your working days and hours, set your assignments (which may be with entities other than City), evaluate your performance, handle disciplinary matters, pay your wages, and provide any required or offered benefits.
• You are not an employee of the City. The City does not set your working days or hours, evaluate your performance, handle disciplinary matters, pay your wages, or provide any benefits of any kind.
• By providing the Services on behalf of HRCS, neither you or the City intend to create an employment relationship as between you and the City.
• The City may provide general instructions to you regarding the iesults or objectives it wants achieved in connection with the Services. However, only HRCS may instruct you on the manner or means by which you provide such Services. • If you believe the City is attempting to control the manner or means by which you provide the Services, or otherwise exercise control over you beyond the setting of objectives, goals or deadlines, you must immediately notify HRCS.
Signature: � 0�
Print: :lheces0. 1Jo lbs
Date: ffitJ..y 3 31 ;;)lJl�
(BB&K 2019)
55136.00220\40066058. l
Exhibit "E"-1
Item: 9
RACHEL BERG ACKNOWLEDGMENT OF EMPLOYMENT RELATIONSHIP
Theresa Dobbs OBA Housing Rehabilitation Consulting Services ("HRCS") provides rehabilitation loan consulting services for its public agency clients. One of HRCS's clients is the City of Lake Forest ("City"). HRCS and the City are parties to a Professional Consultant Services Agreement ("Agreement"), pursuant to which HRCS provides a variety of services to the City as called for in the Agreement ("Services").
In connection with HRCS's performance of the Agreement, it assigns its employees to provide the Services. Because HRCS has assigned you as one of its employees who will provide the Services, which may include working out of the City's offices or utilizing the City's resources, it is important that you understand that you are an HRCS employee, and not an employee of the City.
By signing below, you acknowledge and agree to the following:
• You are an employee of HRCS. HRCS will set your working days and hours, set your assignments (which may be with entities other than City), evaluate your performance, handle disciplinary matters, pay your wages, and provide any required or offered benefits.
• You are not an employee of the City. The City does not set your working days or hours, evaluate your performance, handle disciplinary matters, pay your wages, or provide any benefits of any kind.
• By providing the Services on behalf of HRCS, neither you or the City intend to create an employment relationship as between you and the City.
• The City may provide general instructions to you regarding the results or objectives it wants achieved in connection with the Services. However, only HRCS may instruct you on the manner or means by which you provide such Services. • If you believe the City is attempting to control the manner or means by which you provide the Services, or otherwise exercise control over you beyond the setting of objectiv , oals or deadlines, you must immediately notify HRCS.
Signat r : ___ ,........_......,... _____ _
Print: -----'-.>..e..<.=-----,-__,_.,__,. ______ _
Date: _t::;>-'--+--2._4-+-2---"2,,;;,..___ I I
(BB&K 2019)
55136.00220\40066058. l
Exhibit "E" -2
Item: 9
ATTACHMENT 2
Item: 9
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55136.00200\31919338.1 - 1 -
CITY OF LAKE FOREST
LAKE FOREST HOUSING AUTHORITY
FIRST AMENDMENT TO
AGREEMENT FOR PROFESSIONAL CONSULTANT SERVICES
1. PARTIES AND DATE.
This First Amendment to the Agreement for Professional Consultant Services (“First Amendment”) is entered into on the [***INSERT DAY***] day of [***INSERT MONTH***] , [***INSERT YEAR***], by and between the City of Lake Forest, a municipal corporation, organized under the laws of the State of Cali fornia, with its principal place of business at 100 Civic Center Drive, Lake Forest, CA 92630 (“City”), the Lake Forest Housing Authority, a public body, corporate and politic, with its principal place of business as 100 Civic Center Drive, Lake Forest, California, 92630 (“Authority”), and Theresa Dobbs DBA Housing Rehabilitation Consulting Services , a California sole proprietorship, with its principal place of business at 27341 Ventosa, Mission Viejo, CA 92691 ("Consultant"). City and Consultant are sometimes individually referred to herein as "Party" and collectively as "Parties."
2. RECITALS.
2.1 Agreement. The Parties entered into that certain Agreement for Housing Rehabilitation Consulting Services dated June 7, 2022 (“Agreement”).
2.2 First Amendment. The Parties now desire to amend the Agreement in order to increase the total compensation under the Agreement.
3. TERMS.
3.2 Compensation. Section 3.3.1 of the Agreement is hereby amended in its entirety to read as follows:
Consultant shall re ceive compensation, including authorized reimbursements, for all Services rendered under this Agreement at the rates set forth in Exhibit “C” attached hereto and incorporated herein by reference. The total compensation shall not exceed ONE
HUNDRED TWELVE THOUSAND THREE HUNDRED SIXTY
DOLLARS ($112,360) without written approval of the City Council or City Manager as applicable. Extra Work may be authorized, as described below, and if authorized, will be compensated at the rates and manner set forth in this Agreement.
3.3 Remaining Provisions of Agreement. Except as otherwise specifically set forth in this First Amendment, the remaining provisions of the Agreement shall remain in full force and effect.
DocuSign Envelope ID: BA8D94AD-C427-4BB7-9C09-A2F29AA5F083 Item: 9
131
55136.00200\31919338.1 - 2 -
CITY OF LAKE FOREST THERESA DOBBS DBA HOUSING
REHABILITATION CONSULTING SERVICES
By: [AUTHORIZED CITY SIGNATURE]
Mark Tettemer
Mayor
By: [VENDOR SIGNATURE 1]
Theresa Dobbs
Owner
ATTEST:
By: [CITY CLERK SIGNATURE]
Lisa Berglund
City Clerk
APPROVED AS TO FORM:
By: [CITY ATTORNEY SIGNATURE]
Best Best & Krieger LLP
City Attorney
LAKE FOREST HOUSING AUTHORITY
THERESA DOBBS DBA HOUSING
REHABILITATION CONSULTING SERVICES
By:
Mark Tettemer
Chair
By:
Theresa Dobbs, Owner
ATTEST:
By:
Lisa Berglund
Authority Secretary
APPROVED AS TO FORM:
By:
Best Best & Krieger LLP
Authority Counsel
THERESA DOBBS DBA HOUSING
REHABILITATION CONSULTING SERVICES
By:
Theresa Dobbs
Owner
DocuSign Envelope ID: BA8D94AD-C427-4BB7-9C09-A2F29AA5F083 Item: 9
132
55136.00200\31919338.1 Exhibit “A-I”-1
ATTACHMENT “1” TO FIRST AMENDMENT TO
AGREEMENT FOR PROFESSIONAL CONSULTANT SERVICES
Consultant shall be paid a not to exceed fee of one hundred twelve thousand three hundred sixty dollars ($112,360) based on the following hourly rates:
Staff Hourly Rate
Theresa Dobbs, Principal $90.00
Rachel Berg, Associate $60.00
In the event that this Agreement is renewed pursuant to Section 3.1.2, the rates set forth above may be increased or reduced each year at the time of renewal, but any increase shall not exceed the Consumer Price Index, All Urban Consumers, Los Angeles-Riverside-Orange Counties DocuSign Envelope ID: BA8D94AD-C427-4BB7-9C09-A2F29AA5F083 Item: 9
133
CITY COUNCIL AGENDA REPORT
MEETING DATE: 2/6/2024
DEPARTMENT: Community Development
SUBJECT:
PROFESSIONAL CONSULTING SERVICES CONTRACT AWARD FOR
ENVIRONMENTAL CONSULTING SERVICES RELATED TO
ENVIRONMENTAL IMPACT REPORTS (EIRs)
RECOMMENDED ACTION(S):
1. Award a Professional Consulting Services Agreement in the amount of $873,540.88 to LSA Associates, Inc. (“LSA”), of Irvine, California, to provide Environmental Consulting Services related to Environmental Impact Reports (EIRs). The EIRs are for three projects (Site Development Permits 08-23-5653, 09-23-5658, and 06-21-5437) located at 26110, 26140, 26160, 26250, and 26200 Enterprise Way.
2. Authorize the Mayor to sign and the City Clerk to attest to the Professional Consulting Services Agreement with LSA, substantially in the form attached.
3. Adopt a Resolution entitled: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE FOREST, CALIFORNIA, AMENDING THE 2023-2025 OPERATING BUDGET; AMENDING APPROPRIATIONS FOR FISCAL
YEAR 2023-24.
EXECUTIVE SUMMARY:
In 2021, two applicants submitted three separate applications for the demolition of existing buildings and construction of three new industrial buildings on Enterprise Way. The applications were reviewed for completeness and in accordance with the California Environmental Quality Act ("CEQA"). Staff utilized the services of environmental consultant, LSA Associates, Inc. (“LSA”), to prepare Initial Studies (”IS”) for two mitigated negative declarations (“MNDs”).
The third project was prepared with a categorical exemption. During the public review period for the IS/MND for the project located at 26200 Enterprise Way, the public comments raised concerns about the potential impacts of the project, cumulative impacts of the three projects and adequacy of the technical studies.
After thorough consideration, staff, in consultation with the City Attorney’s office, Item: 10
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determined that the preparation of environmental impact reports (“EIRs”) – one EIR for each applicant - is necessary to address potential impacts of the three projects.
The Community Development Department utilizes pre-qualified environmental consulting firms to provide technical services related to CEQA requirements or otherwise inform decisions related to environmental matters. LSA provided technical consulting services in preparation of the MNDs. However, the current contracts for the projects are not sufficient for the preparation of EIRs and cannot exceed $50,000 for each project.
In accordance with the City’s Purchasing and Contracting Guidelines (“Purchasing Guidelines”), the City Council may determine that it is in the best interest of the City to award a contract to LSA for additional services needed for preparation of the two EIRs without utilizing a request for proposal (“RFP”) procedure. Staff recommends that the City Council approve a professional services contract with LSA to prepare the two EIRs, as they have the expertise and experience in CEQA analysis and have already reviewed, analyzed, and prepared the initial studies for these projects.
The proposed agreement was prepared by the Finance department and has been approved as to form by the City Attorney (Attachment 1). The 2023-2025 Operating Budget does not include funds for the EIRs. Staff recommends the City Council approve the attached budget Resolution to appropriate $873,540.88 in Fiscal Year 2023-24 the 2023-2025 Operating Budget to cover the costs of the recommended action. All costs for professional consulting services, including technical studies and preparation of the EIRs, would be borne by the applicants.
To ensure such reimbursement, the City and applicants will enter into reimbursement agreements.
BACKGROUND:
The Community Development Department utilizes pre-qualified environmental consulting firms to provide technical services related to the California Environmental Quality Act ("CEQA") requirements or otherwise inform decisions related to environmental matters. Professional consulting contracts are awarded as three-year contracts (with up to two one-year extensions) for these services.
However, these contracts are limited to a maximum of $50,000 for the preparation of technical studies, initial studies, negative declarations and/or mitigated negative declarations, peer review of environmental documents from outside agencies, peer review of technical studies provided by applicants, and Item: 10
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provision of expert technical testimony before decision-making bodies (not an EIR).
In June and July of 2021, two applicants submitted three project submittals for entitlement of three separate projects on Enterprise Way east of Dimension Drive and south of Bake Parkway. Together, the applications include the demolition of the existing buildings and construction of three new industrial buildings for future manufacturing and warehouse uses. The projects are located within the Light Industrial zoning district of the Pacific Commercentre Planned Community (“PC”).
A map depicting the location of the projects is attached for reference (Attachment 2).
Environmental Review Process
During the application process for these types of projects, the projects are required to undergo an environmental review process. Before the lead agency, the City, determines whether an MND or EIR is appropriate for a project, an IS is prepared. If the IS shows that the project will not have significant environmental effects or that the effects can be reduced by mitigation measures, the lead agency can adopt an MND. Following preparation of the IS/MND, there is a 30- day public review period. This period allows the public to provide input on the scope and issues of environmental documents.
The following graphic shows a simplified flow chart of the CEQA process. The orange arrow denotes where we are in the review process for the three projects at this time. As shown in the flow chart, Figure 1, following the review of public comments, the City, as the lead agency, may choose to continue with the MND or, based on the results of the IS and comments received, require the preparation of an EIR.
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Figure 1: CEQA Process Flow Chart (simplified)
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The following highlights components of the CEQA process. •Initial Study: An initial study is a preliminary analysis done by the lead agency to decide whether a project would require an EIR or an MND. The IS includes a checklist to identify the possible environmental impacts of the project. If the IS finds substantial evidence that the project may have a significant effect on the environment, the lead agency must prepare an EIR.
•Categorical Exemption: A categorical exemption is a short document that indicates a project is exempt from CEQA because it falls within a class of projects that have been determined to have no significant environmental impacts.
•Mitigated Negative Declaration: A MND is a document that indicates that a project will not have a significant adverse effect on the environment, as long as mitigation measures are implemented.
•Environmental Impact Report: An EIR is a detailed document that identifies and analyzes the significant environmental effects of a proposed project, describes feasible alternatives and mitigation measures, and discloses the reasons for rejecting alternatives. An EIR is required by CEQA when there is substantial evidence that a project may have a significant impact on the environment.
In accordance with the RFP procurement process, the City entered into a professional consulting services agreement on October 19, 2021, with LSA for CEQA services. The applications for the three projects were processed and an IS environmental review was conducted with the anticipation of MNDs for two of the projects and a categorical exemption for the third project.
On September 5, 2023, the City released an IS/MND for 30 days to allow time for public comment on the 26200 Enterprise Way project. Staff received 68 comment letters during the public review period, nearly all of which raised concerns with the project and/or the CEQA document. Of note, several commenters were concerned about potential cumulative impacts of the project at 26200 Enterprise Way combined with the other two industrial projects in the area.
Based on the comments received, the City believes that an environmental impact report is warranted. Thus, staff asked LSA to prepare a scope of work for the preparation of two EIRs.
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DISCUSSION:
Proposed Professional Services Agreement
LSA prepared a proposal to complete the two EIRs concurrently in 16 months at a total cost of $873,540.88. All costs for professional consulting services, including technical studies and the preparation of the EIRs, would be borne by the applicants. City staff has coordinated with the applicants who are amenable to the LSA proposal. To ensure reimbursement, the City and applicants will enter into reimbursement agreements.
In accordance with the City’s Purchasing Guidelines and Lake Forest Municipal Code Section 3.12.160, contracts for professional services may be awarded without utilizing a request for proposals procedure in circumstances where the City Council determines that use of the request for proposals procedure is not in the best interest of the City. In this case, conducting a procurement process would delay the start of the environmental review process and the public hearing(s) for the projects by approximately 6 months. An RFP would require an extended timeline to solicit and evaluate proposals from multiple firms. By awarding the contract to LSA, the City can expedite the production of the EIRs, ensure a timely public review process, and reduce the financial burden on the applicants. Completing the environmental review for the projects in a timely manner is beneficial to both the applicants and interested community members.
LSA has demonstrated their expertise and experience in conducting environmental analysis for similar projects in the region. LSA has already performed a comprehensive CEQA review of the projects, which has given them a deep understanding of the project objectives, alternatives, impacts, mitigation measures, and public feedback. By selecting LSA, the City will benefit from their familiarity with these specific projects and their ability to complete the EIR in a timely and cost-effective manner, while ensuring compliance with all applicable laws and regulations.
In summary, LSA is a consulting firm that has been providing environmental, transportation, and planning services since 1976. Their team has prepared numerous EIRs for various types of projects, including industrial development.
LSA has a team of in-house planners and technical specialists who can conduct comprehensive environmental analyses and address CEQA issues in a timely and cost-effective manner. Continuing their services will ensure the most comprehensive and consistent environmental review to prepare the two EIRs.
Furthermore, LSA successfully went through the RFP process in 2021 and was rated among the five highest-rated firms for on-call environmental consulting services (Refer to Attachment 3). Staff therefore recommends the City Council award the proposed Professional Services Agreement with LSA (“Agreement”).
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The proposed Agreement was prepared by the Finance Department and reviewed and approved as to form by the City Attorney (Attachment 1). The proposed budget resolution (Attachment 4) would authorize funding in the FY 2023-24 appropriations of the 2023-2025 Operating Budget to ensure there is sufficient funding for the compensation under the agreement. All costs for professional consulting services would be reimbursed to the City by the applicants, meaning there would be no net cost to the City.
Environmental Impact Report Preparation
At the direction of staff, LSA prepared a proposal with a scope of work to concurrently prepare the two EIRs for the three projects. Ultimately, two EIRs will be prepared:
1. One EIR will analyze the IPT Enterprise Business Center, LLC at 26200 Enterprise Way;
2. One EIR will analyze the two Western RealCo Projects at 26110, 26140, and 26160 Enterprise Way and 26250 Enterprise Way; and,
3. Technical reports will analyze each project individually as well as a cumulative scenario.
The scope of work includes the preparation of new technical reports including air quality/greenhouse gas/energy analysis, health risk assessment, noise and vibration analysis, and traffic impact and VMT analysis. The project at 26250 Enterprise Way, which was previously reviewed as categorically exempt, will also include the preparation of biological and cultural resources reports. The consultant will utilize other previously prepared technical analyses including the biological and cultural resources reports for the two projects previously prepared as MNDs, Phase 1 environmental site assessment, preliminary hydrologic and hydraulic report, and preliminary water quality management plans.
Next Steps in the EIR Preparation
Should the City Council approve the Agreement with LSA, the next steps in the EIR preparation process would include the following:
•Kickoff: The kickoff would occur mid-February 2024 with a timeline of approximately 16 months. This timeline includes milestone dates for preparation of draft project descriptions, scoping meetings, notices of preparation, preparation and revision of technical analyses, preparation of administrative drafts for each EIR, attendance at public hearings, preparation of the final EIR drafts and filing of the Notices of Determination.
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•Scoping meeting: The City will issue a notice of preparation (“NOP”) for each EIR to solicit input from the public and other agencies on the scope and content of the EIRs. The City will also hold a scoping meeting for each EIR to provide an opportunity for the public to comment on the NOPs and the issues and topics to be addressed in the environmental documents. A scoping meeting can facilitate communication, collaboration, and alignment among the parties involved in the project, and ensure that the EIR is comprehensive, accurate, and relevant.
•Draft EIR: LSA will prepare two draft EIRs for the projects that will analyze the environmental impacts, alternatives, and mitigation measures. The draft EIRs will be circulated for a 45-day public review period, during which the public and other agencies can submit written comments on the draft EIRs.
•Final EIR: LSA will prepare a final EIR for each project that will respond to the comments received on the draft EIRs and make any necessary revisions. The final EIRs will be presented to the Planning Commission for consideration at a public hearing.
The City will notify the public of the dates and locations of the scoping and draft EIR meetings through the City’s website, email list, and by mail to residents within 300 feet of the projects.
EIR Preparation Costs
The cost of an EIR depends on various factors, such as the size and complexity of the project, the scope and depth of the analysis, the number and type of technical studies, the level of public involvement, and the amount of litigation risk.
An EIR requires a comprehensive and rigorous analysis of a wide range of environmental topics, such as air quality, greenhouse gas emissions, biological resources, cultural resources, traffic, noise, water quality, and more. Each topic may require specialized expertise, data collection, modeling, and coordination with various agencies and stakeholders.
An EIR must comply with the legal standards and procedures established by CEQA and the courts, which are often complex and evolving. An EIR must also anticipate and address potential challenges and lawsuits from opponents of the project, which may increase the scope and duration of the analysis. Additionally, an EIR involves a significant amount of public participation and disclosure, which may entail multiple meetings, hearings, notices, comments, and responses. An EIR must also consider and respond to all feasible alternatives and mitigation measures suggested by the public and other agencies. Costs associated with the preparation of the EIRs would be borne by the applicants. City staff has coordinated with the applicants who are amenable to the scope of work under the Item: 10
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proposed agreement. To ensure reimbursement, the City and applicants will enter into reimbursement agreements.
FISCAL IMPACT:
The proposed Professional Consulting Services Agreement includes a compensation amount of $873,540.88. The term of the Agreement is for three years with two optional one-year extensions.
The 2023-2025 Operating Budget does not include funding for these unforeseen consulting costs. Approval of the proposed Resolution (Attachment 4) would appropriate sufficient funding for this agreement in FY 2023-24 of the City’s 2023-2025 Operating Budget, increasing both revenues and expenditures by the same amount. There would be no net cost to the City for this project as all professional consulting services costs would be reimbursed the City by the applicants.
ATTACHMENTS:
1. Agreement with LSA Associates, Inc.
2. Enterprise Projects Map
3. CC Agenda Report of October 19, 2021
4. Proposed Budget Resolution
Initiated By: Amy Stonich, AICP, Assistant Director of Community Development
Submitted By: Gayle Ackerman, AICP, Director of Community Development Approved By: Debra Rose, City Manager
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Attachment 1
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ENVIRONMENTAL CONSULTING SERVICES RELATED TO
ENVIRONMENTAL IMPACT REPORTS (EIRS)
City of Lake Forest
100 Civic Center Dr.
Lake Forest, CA 92630
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City of Lake Forest
undefined
Environmental Consulting Services Related to Environmental Impact Reports (EIRs)
I. PARTIES AND DATE. ................................ ................................ ..............
II. RECITALS. ................................ ................................ ..............................
III. TERMS................................. ................................ ................................ ..
IV. SIGNATURES. ................................ ................................ ........................
V. EXHIBIT "A" SCOPE OF SERVICES ................................ ...........................
VI. EXHIBIT "B" - SCHEDULE OF SERVICES ................................ ..................
VII. EXHIBIT "C" - COMPENSATION ................................ ..............................
VIII. EXHIBIT "D" - INSURANCE REQUIREMENTS ................................ ...........
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Title: Environmental Consulting Services Related to Environmental Impact Reports (EIRs) 3 1. PARTIES AND DATE.
This Agreement is made and entered into this [***INSERT DAY***] day of [***INSERT MONTH***], [***INSERT YEAR***], by and between the City of Lake Forest, a municipal corporation, organized under the laws of the State of California, with its principal place of business at 100 Civic Center Drive, Lake Forest, California 92630 (“City”) and LSA Associates, Inc., a California Corporation, with its principal place of business at 3210 El Camino Real, Suite 100, Irvine, CA 92602 (“Consultant”). City and Consultant are sometimes individually referred to herein as “Party” and collectively as “Parties.” DocuSign Envelope ID: 2F2E0BF7-51E6-4C93-964C-FE37242072D5 Item: 10
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Title: Environmental Consulting Services Related to Environmental Impact Reports (EIRs) 4 2. RECITALS.
2.1. Consultant.
Consultant desires to perform and assume responsibility for the provision of certain professional Environmental Consulting Services Related to Environmental Impact Reports (EIRs) consulting services required by the City on the terms and conditions set forth in this Agreement. Consultant represents that it is experienced in providing professional Environmental consulting services to public clients, is licensed in the State of California, and is familiar with the plans of City.
2.2. Project.
City desires to engage Consultant to render such professional Environmental Consulting Services Related to Environmental Impact Reports (EIRs) consulting services for the Environmental Consulting Services project ("Project") as set forth in this Agreement.
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Title: Environmental Consulting Services Related to Environmental Impact Reports (EIRs) 5 3. TERMS.
3.1. Scope of Services and Term.
3.1.1 General Scope of Services. Consultant promises and agrees to furnish to the City all labor, materials, tools, equipment, services, and incidental and customary work necessary to fully and adequately supply the professional Professional Consulting Services consulting services necessary for the Project ("Services"). The Services are more particularly described in Exhibit "A" attached hereto and incorporated herein by reference. All Services shall be subject to, and performed in accordance with, this Agreement, the exhibits attached hereto and incorporated herein by reference, and all applicable local, state and federal laws, rules and regulations.
3.1.2 Term. The term of this Agreement shall be from February 6, 2024 to February 5, 2027, unless earlier terminated as provided herein. The City shall have the unilateral option, at its sole discretion, to renew this Agreement annually for no more than two (2) additional one-year terms.
Consultant shall complete the Services within the term of this Agreement, and shall meet any other established schedules and deadlines.
3.2. Responsibilities of Consultant.
3.2.1 Independent Contractor; Control and Payment of Subordinates. The Services shall be performed by Consultant or under its supervision. Consultant will determine the means, methods and details of performing the Services subject to the requirements of this Agreement. City retains Consultant on an independent contractor basis and not as an employee. Consultant retains the right to perform similar or different services for others during the term of this Agreement. Any additional personnel performing the Services under this Agreement on behalf of Consultant shall also not be employees of City and shall at all times be under Consultant's exclusive direction and control. Neither City, nor any of its officials, officers, directors, employees or agents shall have control over the conduct of Consultant or any of Consultant's officers, employees, or agents, except as set forth in this Agreement. Consultant shall pay all wages, salaries, and other amounts due such personnel in connection with their performance of Services under this Agreement and as required by law. Consultant shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: social security taxes, income tax withholding, unemployment insurance, disability insurance, and workers' compensation insurance.
3.2.2 Schedule of Services. Consultant shall perform the Services expeditiously, within the term of this Agreement, and in accordance with the Schedule of Services set forth in Exhibit "B" attached hereto and incorporated herein by reference. Consultant represents that it has the professional and technical personnel required to perform the Services in conformance with such conditions. In order to facilitate Consultant's conformance with the Schedule, City shall respond to Consultant's submittals in a timely manner. Upon request of City, Consultant shall provide a more detailed schedule of anticipated performance to meet the Schedule of Services.
3.2.3 Conformance to Applicable Requirements. All work prepared by Consultant shall be subject to the approval of City.
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Title: Environmental Consulting Services Related to Environmental Impact Reports (EIRs) 6 3.2.4 Substitution of Key Personnel. Consultant has represented to City that certain key personnel will perform and coordinate the Services under this Agreement. Should one or more of such personnel become unavailable, Consultant may substitute other personnel of at least equal competence upon written approval of City. In the event that City and Consultant cannot agree as to the substitution of key personnel, City shall be entitled to terminate this Agreement for cause. As discussed below, any personnel who fail or refuse to perform the Services in a manner acceptable to the City, or who are determined by the City to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project or a threat to the safety of persons or property, shall be promptly removed from the Project by the Consultant at the request of the City. The key personnel for performance of this Agreement are as follows: Pam Reading, Environmental Planning Principal.
3.2.5 City's Representative. The City hereby designates Gayle Ackerman, Director of Community Development, or his/her designee, to act as its representative in all matters pertaining to the administration and performance of this Agreement ("City's Representative"). City's Representative shall have the power to act on behalf of the City for review and approval of all products submitted by Consultant but not the authority to enlarge the Scope of Work or change the total compensation due to Consultant under this Agreement. The City Manager shall be authorized to act on City's behalf and to execute all necessary documents which enlarge the Scope of Work or change the Consultant's total compensation subject to the provisions contained in Section 3.3 of this Agreement. Consultant shall not accept direction or orders from any person other than the City Manager, City's Representative or his/her designee.
3.2.6 Consultant's Representative. Consultant hereby designates Pam Reading, Environmental Planning Principal, or his/her designee, to act as its representative for the performance of this Agreement ("Consultant's Representative"). Consultant's Representative shall have full authority to represent and act on behalf of the Consultant for all purposes under this Agreement. The Consultant's Representative shall supervise and direct the Services, using his/her best skill and attention, and shall be responsible for all means, methods, techniques, sequences, and procedures and for the satisfactory coordination of all portions of the Services under this Agreement.
3.2.7 Coordination of Services. Consultant agrees to work closely with City staff in the performance of Services and shall be available to City's staff, consultants and other staff at all reasonable times.
3.2.8 Standard of Care; Performance of Employees. Consultant shall perform all Services under this Agreement in a skillful and competent manner, consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California. Consultant represents and maintains that it is skilled in the professional calling necessary to perform the Services. Consultant warrants that all employees and subconsultants shall have sufficient skill and experience to perform the Services assigned to them. Finally, Consultant represents that it, its employees and subconsultants have all licenses, permits, qualifications and approvals of whatever nature that are legally required to perform the Services, and that such licenses and approvals shall be maintained throughout the term of this Agreement. As provided for in the indemnification provisions of this Agreement, Consultant shall perform, at its own cost and expense and without reimbursement from the City, any services necessary to correct errors or omissions which are caused by the Consultant's failure to comply with the standard of care provided for herein. Any employee of the Consultant or its DocuSign Envelope ID: 2F2E0BF7-51E6-4C93-964C-FE37242072D5 Item: 10
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Title: Environmental Consulting Services Related to Environmental Impact Reports (EIRs) 7 sub-consultants who is determined by the City to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project, a threat to the safety of persons or property, or any employee who fails or refuses to perform the Services in a manner acceptable to the City, shall be promptly removed from the Project by the Consultant and shall not be re employed to perform any of the Services or to work on the Project.
3.2.9 Laws and Regulations. Consultant shall keep itself fully informed of and in compliance with all local, state and federal laws, rules and regulations in any manner affecting the performance of the Project or the Services, including all Cal/OSHA requirements, and shall give all notices required by law. Consultant shall be liable for all violations of such laws and regulations in connection with Services. If Consultant performs any work knowing it to be contrary to such laws, rules and regulations, Consultant shall be solely responsible for all costs arising therefrom. Consultant shall defend, indemnify and hold City, its officials, directors, officers, employees, agents, and volunteers free and harmless, pursuant to the indemnification provisions of this Agreement, from any claim or liability arising out of any failure or alleged failure to comply with such laws, rules or regulations.
3.2.10 Safety. Consultant shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out its Services, the Consultant shall at all times be in compliance with all applicable local, state and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed. Safety precautions, where applicable, shall include, but shall not be limited to: (A) adequate life protection and lifesaving equipment and procedures; (B) instructions in accident prevention for all employees and subconsultants, such as safe walkways, scaffolds, fall protection ladders, bridges, gang planks, confined space procedures, trenching and shoring, equipment and other safety devices, equipment and wearing apparel as are necessary or lawfully required to prevent accidents or injuries; and (C) adequate facilities for the proper inspection and maintenance of all safety measures.
3.2.11 Insurance. Consultant agrees to procure and maintain, at Consultant’s expense all insurance specified in Exhibit “D” attached hereto and by this reference incorporated herein. Consultant shall require all subconsultants to carry the same policies and limits of insurance that the Consultant is required to maintain, unless otherwise approved in writing by the City.
3.2.12 Water Quality Management and Compliance.
3.2.12.1 Storm Water Management. Storm, surface, nuisance, or other waters may be encountered at various times during the Services. Consultant hereby acknowledges that it has investigated the risk arising from such waters, and assumes any and all risks and liabilities arising therefrom.
3.2.12.2 Compliance with Water Quality Laws, Ordinances and Regulations. Consultant shall keep itself and all subcontractors, staff, and employees fully informed of and in compliance with all local, state and federal laws, rules and regulations that may impact, or be implicated by the performance of the Services including, without limitation, all applicable provisions of the City’s ordinances regulating water quality and storm water; the Federal Water Pollution Control Act (33 U.S.C. § 1251, et seq.); the California Porter-Cologne Water Quality Control Act (Water Code § 13000 et seq.); and any and all regulations, policies, or permits issued pursuant to any such authority. Consultant must additionally comply with the lawful requirements of the City, and any other DocuSign Envelope ID: 2F2E0BF7-51E6-4C93-964C-FE37242072D5 Item: 10
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Title: Environmental Consulting Services Related to Environmental Impact Reports (EIRs) 8 municipality, drainage district, or other local agency with jurisdiction over the location where the Services are to be conducted, regulating water quality and storm water discharges.
3.2.12.3 Compliance with DAMP and LIP. In addition to compliance with the laws, ordinances and regulations listed in Section 3.2.12.2 of this Agreement, Consultant must comply with all applicable requirements of the Orange County Drainage Area Management Plan (“DAMP”), the City of Lake Forest Local Implementation Plan (“LIP”) and the applicable Water Quality Management Plan (“WQMP”). The DAMP contains requirements related to design and construction of public projects. Consultant must be familiar the DAMP, and the LIP and comply with the requirements as specified therein.
A copy of the DAMP is available on the internet at:
http://www.ocwatersheds.com/documents/damp/mapplan
A copy of the LIP is available on the internet at:
http://www.lakeforestca.gov/296/Local-Implementation-Plan-LIP
3.2.12.4 Standard of Care. Consultant warrants that all employees and subcontractors shall have sufficient skill and experience to perform the work assigned to them without impacting water quality in violation of the laws, regulations and policies described in Sections 3.2.12.2 and 3.2.12.3 of this Agreement. Consultant further warrants that it, its employees and subcontractors have or will receive adequate training, as determined by the City, regarding these requirements as they may relate to the Services.
3.2.12.5 Liability for Non-compliance.
(A) Indemnity: Failure to comply with laws, regulations, and ordinances listed in Sections 3.2.12.2 and 3.2.12.3 of this Agreement is a violation of federal and state law. Notwithstanding any other indemnity contained in this Agreement, Consultant agrees to indemnify and hold harmless the City, its officials, officers, agents, employees and authorized volunteers from and against any and all claims, demands, losses or liabilities of any kind or nature which the City, its officials, officers, agents, employees and authorized volunteers may sustain or incur for noncompliance with the laws, regulations, and ordinances listed above, arising out of or in connection with the Services, except for liability resulting from the sole established negligence, willful misconduct or active negligence of the City, its officials, officers, agents, employees or authorized volunteers. (B) Defense: City reserves the right to defend any enforcement action or civil action brought against the City for Consultant’s failure to comply with any applicable water quality law, regulation, or policy. Consultant hereby agrees to be bound by, and to reimburse the City for the costs associated with, any settlement reached between the City and the relevant enforcement entity. (C) Damages: City may seek damages from Consultant for delay in completing the Services caused by Consultant’s failure to comply with the laws, regulations and policies described in Sections 3.2.12.2 and 3.2.12.3 of this Agreement, or any other relevant water quality law, regulation, or policy. regulation, or policy.
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Title: Environmental Consulting Services Related to Environmental Impact Reports (EIRs) 9 3.3. Fees and Payments.
3.3.1 Compensation. Consultant shall receive compensation, including authorized reimbursements, for all Services rendered under this Agreement at the rates set forth in Exhibit "C" attached hereto and incorporated herein by reference. The total compensation shall not exceed EIGHT
HUNDERED SEVENTY-THREE THOUSAND FIVE HUNDERED FORTY DOLLARS AND EIGHTY-EIGHT CENTS ($873,540.88) without written approval of the City Council or City Manager as applicable. Extra Work may be authorized, as described below, and if authorized, will be compensated at the rates and manner set forth in this Agreement.
3.3.2 Payment of Compensation. Consultant shall submit to City a monthly invoice which indicates work completed and hours of Services rendered by Consultant. The invoice shall describe the amount of Services provided since the initial commencement date, or since the start of the subsequent billing periods, as appropriate, through the date of the invoice. City shall, within 30 days of receiving such invoice, review the invoice and pay all non-disputed and approved charges thereon. If the City disputes any of Consultant's fees, the City shall give written notice to Consultant within thirty (30) days of receipt of an invoice of any disputed fees set forth therein.
3.3.3 Reimbursement for Expenses. Consultant shall not be reimbursed for any expenses unless authorized in writing by City, or included in Exhibit "C" of this Agreement.
3.3.4 Extra Work. At any time during the term of this Agreement, City may request that Consultant perform Extra Work. As used herein, "Extra Work" means any work which is determined by City to be necessary for the proper completion of the Project, but which the Parties did not reasonably anticipate would be necessary at the execution of this Agreement. Consultant shall not perform, nor be compensated for, Extra Work without written authorization from the City.
3.3.5 Rate Increases. In the event that this Agreement is renewed pursuant to Section 3.1.2, the rate set forth in Exhibit “C” may be adjusted each year at the time of renewal as set forth in Exhibit “C.”
3.4. Labor Code Requirements.
3.4.1 Prevailing Wages. Consultant is aware of the requirements of California Labor Code Section 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Section 16000, et seq., ("Prevailing Wage Laws"), which require the payment of prevailing wage rates and the performance of other requirements on "public works" and "maintenance" projects. If the Services are being performed as part of an applicable "public works" or "maintenance" project, as defined by the Prevailing Wage Laws, and 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 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, DocuSign Envelope ID: 2F2E0BF7-51E6-4C93-964C-FE37242072D5 Item: 10
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Title: Environmental Consulting Services Related to Environmental Impact Reports (EIRs) 10 agents, and volunteers free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws.
3.4.2 Registration. If the 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.
3.5. Accounting Records.
3.5.1 Maintenance and Inspection. Consultant shall maintain complete and accurate records with respect to all costs and expenses incurred under this Agreement. All such records shall be clearly identifiable. Consultant shall allow a representative of City during normal business hours to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement. Consultant shall allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period of three (3) years from the date of final payment under this Agreement.
3.6. General Provisions.
3.6.1 Termination of Agreement.
3.6.1.1 Grounds for Termination. City may, by written notice to Consultant, terminate the whole or any part of this Agreement at any time and without cause by giving written notice to Consultant of such termination, and specifying the effective date thereof, at least seven (7) days before the effective date of such termination. Upon termination, Consultant shall be compensated only for those services which have been adequately rendered to City, and Consultant shall be entitled to no further compensation. Consultant may not terminate this Agreement except for cause.
3.6.1.2 Effect of Termination. If this Agreement is terminated as provided herein, City may require Consultant to provide all finished or unfinished Documents and Data and other information of any kind prepared by Consultant in connection with the performance of Services under this Agreement. Consultant shall be required to provide such document and other information within fifteen (15) days of the request.
3.6.1.3 Additional Services. In the event this Agreement is terminated in whole or in part as provided herein, City may procure, upon such terms and in such manner as it may determine appropriate, services similar to those terminated.
3.6.1.4 Delivery of Notices. All notices permitted or required under this Agreement shall be given to the respective parties at the following address, or at such other address as the respective parties may provide in writing for this purpose:
Consultant: LSA Associates, Inc.
3210 El Camino Real, Suite 100
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Title: Environmental Consulting Services Related to Environmental Impact Reports (EIRs) 11 Irvine, CA 92602
ATTN: Pam Reading, Environmental Planning Principal
City: City of Lake Forest
100 Civic Center Drive
Lake Forest, CA 92630
ATTN: City Clerk
Such notice shall be deemed made when personally delivered or when mailed, forty-eight (48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to the party at its applicable address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service.
3.6.2 Ownership of Materials and Confidentiality.
3.6.2.1 Documents & Data; Licensing of Intellectual Property. This Agreement creates a non exclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, and other intellectual property embodied in plans, specifications, studies, drawings, estimates, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings or data magnetically or otherwise recorded on computer diskettes, which are prepared or caused to be prepared by Consultant under this Agreement ("Documents & Data"). Consultant shall require all subconsultants to agree in writing that City is granted a non exclusive and perpetual license for any Documents & Data the subconsultant prepares under this Agreement. Consultant represents and warrants that Consultant has the legal right to license any and all Documents & Data. Consultant makes no such representation and warranty in regard to Documents & Data which were prepared by design professionals other than Consultant or provided to Consultant by the City. City shall not be limited in any way in its use of the Documents & Data at any time, provided that any such use not within the purposes intended by this Agreement shall be at City's sole risk.
3.6.2.2 Confidentiality. All ideas, memoranda, specifications, plans, procedures, drawings, descriptions, computer program data, input record data, written information, and other Documents & Data either created by or provided to Consultant in connection with the performance of this Agreement shall be held confidential by Consultant. Such materials shall not, without the prior written consent of City, be used by Consultant for any purposes other than the performance of the Services. Nor shall such materials be disclosed to any person or entity not connected with the performance of the Services or the Project. Nothing furnished to Consultant which is otherwise known to Consultant or is generally known, or has become known, to the related industry shall be deemed confidential. Consultant shall not use City's name or insignia, photographs of the Project, or any publicity pertaining to the Services or the Project in any magazine, trade paper, newspaper, television or radio production or other similar medium without the prior written consent of City.
3.6.2.3 Confidential Information. The City shall refrain from releasing Consultant’s proprietary information ("Proprietary Information") unless the City's legal counsel determines that the release of the Proprietary Information is required by the California Public Records Act or other applicable state or federal law, or order of a court of competent jurisdiction, in which case the City shall notify Consultant of its intention to release Proprietary Information. Consultant shall have five (5) DocuSign Envelope ID: 2F2E0BF7-51E6-4C93-964C-FE37242072D5 Item: 10
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Title: Environmental Consulting Services Related to Environmental Impact Reports (EIRs) 12 working days after receipt of the Release Notice to give City written notice of Consultant's objection to the City's release of Proprietary Information. Consultant shall indemnify, defend and hold harmless the City, and its officers, directors, employees, and agents from and against all liability, loss, cost or expense (including attorney’s fees) arising out of a legal action brought to compel the release of Proprietary Information. City shall not release the Proprietary Information after receipt of the Objection Notice unless either: (1) Consultant fails to fully indemnify, defend (with City's choice of legal counsel), and hold City harmless from any legal action brought to compel such release; and/or (2) a final and non- appealable order by a court of competent jurisdiction requires that City release such information.
3.6.3 Cooperation; Further Acts. The Parties shall fully cooperate with one another, and shall take any additional acts or sign any additional documents as may be necessary, appropriate or convenient to attain the purposes of this Agreement.
3.6.4 Attorney's Fees. If either party commences an action against the other party, either legal, administrative or otherwise, arising out of or in connection with this Agreement, the prevailing party in such litigation shall be entitled to have and recover from the losing party reasonable attorney's fees and all other costs of such action.
3.6.5 Indemnification.
To the fullest extent permitted by law, Consultant shall defend (with counsel of City’s choosing), indemnify and hold the City, its officials, officers, employees, volunteers and agents free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury of any kind, in law or equity, to property or persons, including wrongful death, in any manner arising out of, pertaining to, or incident to any alleged acts, errors or omissions, or willful misconduct of Consultant, its officials, officers, employees, subcontractors, consultants or agents in connection with the performance of the Consultant's Services, the Project or this Agreement, including without limitation the payment of all damages, expert witness fees and attorneys fees and other related costs and expenses. Consultant's obligation to indemnify shall not be restricted to insurance proceeds, if any, received by the Consultant or the City, its officials, officers, employees, agents or volunteers.
If Consultant’s obligation to defend, indemnify, and/or hold harmless arises out of Consultant’s performance as a “design professional” (as that term is defined under Civil Code section 2782.8), then, and only to the extent required by Civil Code section 2782.8, which is fully incorporated herein, Consultant’s indemnification obligation shall be limited to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant, and, upon Consultant obtaining a final adjudication by a court of competent jurisdiction, Consultant’s liability for such claim, including the cost to defend, shall not exceed the Consultant’s proportionate percentage of fault.
3.6.6 Entire Agreement. This Agreement contains the entire Agreement of the parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings or agreements. This Agreement may only be modified by a writing signed by both parties.
3.6.7 Governing Law. This Agreement shall be governed by the laws of the State of California. Venue shall be in Orange County.
3.6.8 Time of Essence. Time is of the essence for each and every provision of this Agreement.
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Title: Environmental Consulting Services Related to Environmental Impact Reports (EIRs) 13 3.6.9 City's Right to Employ Other Consultants. City reserves right to employ other consultants in connection with this Project.
3.6.10 Successors and Assigns. This Agreement shall be binding on the successors and assigns of the parties.
3.6.11 Assignment or Transfer. Consultant shall not assign, hypothecate, or transfer, either directly or by operation of law, this Agreement or any interest herein without the prior written consent of the City. Any attempt to do so shall be null and void, and any assignees, hypothecates or transferees shall acquire no right or interest by reason of such attempted assignment, hypothecation or transfer.
3.6.12 Construction; References; Captions. Since the Parties or their agents have participated fully in the preparation of this Agreement, the language of this Agreement shall be construed simply, according to its fair meaning, and not strictly for or against any Party. Any term referencing time, days or period for performance shall be deemed calendar days and not work days. All references to Consultant include all personnel, employees, agents, and subconsultants of Consultant, except as otherwise specified in this Agreement. All references to City include its elected officials, officers, employees, agents, and volunteers except as otherwise specified in this Agreement. The captions of the various articles and paragraphs are for convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content, or intent of this Agreement.
3.6.13 Amendment; Modification. No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing and signed by both Parties.
3.6.14 Waiver. No waiver of any default shall constitute a waiver of any other default or breach, whether of the same or other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by a Party shall give the other Party any contractual rights by custom, estoppel, or otherwise.
3.6.15 No Third-Party Beneficiaries. There are no intended third party beneficiaries of any right or obligation assumed by the Parties.
3.6.16 Invalidity; Severability. If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.
3.6.17 Prohibited Interests. Consultant maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Consultant¬, to solicit or secure this Agreement. Further, Consultant warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability. For the term of this Agreement, no member, officer or employee of City, during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.
3.6.18 Equal Opportunity Employment. Consultant represents that it is an equal opportunity employer and it shall not discriminate against any subconsultant, employee or applicant for employment DocuSign Envelope ID: 2F2E0BF7-51E6-4C93-964C-FE37242072D5 Item: 10
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Title: Environmental Consulting Services Related to Environmental Impact Reports (EIRs) 14 because of race, religion, color, national origin, handicap, ancestry, sex or age. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination. Consultant shall also comply with all relevant provisions of City's Minority Business Enterprise program, Affirmative Action Plan or other related programs or guidelines currently in effect or hereinafter enacted.
3.6.19 Labor Certification. By its signature hereunder, Consultant certifies that it is aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for Worker's Compensation or to undertake self-insurance in accordance with the provisions of that Code, and agrees to comply with such provisions before commencing the performance of the Services.
3.6.20 Authority to Enter Agreement. Consultant has all requisite power and authority to conduct its business and to execute, deliver, and perform the Agreement. Each Party warrants that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and bind each respective Party.
3.6.21 Counterparts. This Agreement may be signed in counterparts, each of which shall constitute an original.
3.7. Subcontracting.
3.7.1 Prior Approval Required. Consultant shall not subcontract any portion of the work required by this Agreement, except as expressly stated herein, without prior written approval of City. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement.
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Title: Environmental Consulting Services Related to Environmental Impact Reports (EIRs) 15 4. SIGNATURES.
4.1. SIGNATURES.
CITY OF LAKE FOREST LSA Associates, Inc.
By: [AUTHORIZED CITY SIGNATURE]
Mark Tettemer
Mayor
By: [VENDOR SIGNATURE 1]
Tony Petros, CEO
[If Corporation, TWO SIGNATURES,
President OR Vice President AND Secretary
OR Treasurer REQUIRED]
ATTEST:
By: [CITY CLERK SIGNATURE]
Lisa Berglund
City Clerk
By: [VENDOR SIGNATURE 2]
Justin Cary
Chief Financial Officer (Corporation or LLC)
APPROVED AS TO FORM:
By: [CITY ATTORNEY SIGNATURE]
Best Best & Krieger LLP
City Attorney
[CONTRACT ADMINISTRATOR APPROVAL]
[PROJECT MANAGER APPROVAL]
[CITY CLERK - INSURANCE APPROVAL]
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Title: Environmental Consulting Services Related to Environmental Impact Reports (EIRs) 16 5. EXHIBIT "A" SCOPE OF SERVICES
5.1. EXHIBIT "A" SCOPE OF MAINTENANCE SERVICES
Consultant shall provide the following Professional Consulting Services professional consulting services relative to the City's Environmental Consulting Services project.
EIR Scope of Work - (TWO EIRs)
TASK 1. INITIAL PROJECT SCOPING
Attend project initiation meeting with City Staff.
Develop project schedule.
TASK 2. SCOPING MEETING (2 separate meetings)
Prepare presentation, sign-in sheet, and comment cards. Conduct scoping meeting.
Inventory comments received at scoping meeting.
TASK 3. ASSIST CITY IN COMPLIANCE WITH AB 52
As necessary and applicable for Western Realco project.
TASK 4. NOTICE OF PREPARATION
Provide staff with Word document of the two draft notice of preparations. We will not prepare an Initial Study for the Projects and will move directly to preparation of two separate EIRs File two notice of preparations with the Orange County Clerk-Recorder’s office and the State Clearinghouse.
TASK 5. PREPARE EIRs
Prepare any necessary technical studies and/or addendums to existing technical studies.1 Draft two Environmental Impact Reports that fully comply with the California Environmental Quality Act (CEQA).
Submit Word documents of the two Draft EIRs for review by the City. Revise Draft EIRs based on City’s comments and provide revised draft documents. Assume three rounds of City review and comments per EIR.
Submit electronic Word documents and PDF copies (including all appendices) of each final Draft EIR to the City.
1 Consultant will be responsible for ensuring consistency in methodology and applicable similar content between the two EIRs.
TASK 6. NOTICE OF COMPLETION
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Title: Environmental Consulting Services Related to Environmental Impact Reports (EIRs) 17 Provide staff with Word documents of the draft notice of completion for each EIR. File two notice of completions with Orange County Clerk-Recorder’s office and the State Clearinghouse.
TASK 7. FINAL EIRs
For each of the two EIRs, prepare responses to comments received that address environmental issues, prepare mitigation and monitoring plan, and revise Draft EIRs as needed. Submit Word documents of the two Final EIRs and any revisions to the Draft EIRs for review by the City.
Revise the two Final EIRs and any revisions to the Draft EIRs based on City comments and provide revised draft documents. Assume two rounds of City review and comments for each. Submit a Word document and PDF copies (including all Appendices) of the two EIRs to the City. Submit two hard copies of each EIR.
Provide draft CEQA findings, including statement of overriding considerations (if applicable) for each EIR.
TASK 8. PLANNING COMMISSION
Attend up to two Planning Commission meetings and answer all environmental related questions.
TASK 9. CITY COUNCIL (if appealed or overriding considerations) Attend up to two City Council meetings and answer all environmental- related questions.
TASK 10. NOTICE OF DETERMINATION
Provide staff with Word documents of each draft notice of determination. File two notice of determinations with the Orange County Clerk Recorder’s office and the State Clearinghouse.
TASK 11. COORDINATION WITH STAFF
Participate in phone calls and virtual meetings with City Staff. Assume one (one-hour) call/meeting per week.
TASK 12. PUBLIC WORKSHOP
At the City’s option, participate in one public workshop.
Consultant’s Additional Roles and Responsibilities
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Title: Environmental Consulting Services Related to Environmental Impact Reports (EIRs) 18 Consultant will be expected to:
Engage with the public, Planning Commissioners and/or City Councilmembers at public meetings and workshops, to ensure the community's concerns and feedback are incorporated into the EIR process and to answer technical questions.
Analyze and evaluate project alternatives as required by CEQA, including a discussion of the "no project" alternative, and identify the criteria for evaluating alternatives. Assess the cumulative environmental impacts, which includes considering the combined effects of the proposed project along with other past, present, and future projects. Develop a comprehensive mitigation and monitoring plan for each project to address identified impacts and ensure compliance with CEQA.
Involve and consider the input of stakeholders, regulatory agencies, and other relevant organizations in the EIR process, including consultations and coordination with external entities. Manage and track the two EIR project schedules, including milestones, deadlines, and coordinate with City Staff and the project applicant.
Establish procedures for budget management, cost reporting, monthly invoicing and payment schedules.
Monthly invoicing shall be billed based on task completion. These shall be separated for each applicant/EIR as set forth in the spreadsheets of the proposals.
ASSUMPTIONS:
Two EIRs will be prepared to analyze the following projects:
o One EIR will analyze the IPT Enterprise Business Center LLC Project at 26200 Enterprise Way o One EIR will analyze the two Western Realco Projects at 26110, 26140, and 26160 Enterprise Way and 26250 Enterprise Way as separate projects within a single EIR. The IPT Enterprise Business Center LLC Project EIR and the Western Realco EIR will be prepared concurrently. The commencement of the preparation of each EIR will ultimately depend on receipt of completed Project Descriptions and Project Site Plans. It is assumed that separate scoping meetings will be held for each EIR. LSA will prepare two (2) sets of stand-alone technical reports. One set of technical reports will analyze the IPT Enterprise Business Center LLC Project. The other set of technical reports will analyze the two Western Realco projects independently, within the same technical report.
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Title: Environmental Consulting Services Related to Environmental Impact Reports (EIRs) 19 The two (2) sets of stand-alone technical reports will address the following topics: Air Quality/Greenhouse Gas/Energy Analysis, Health Risk Assessment, Noise and Vibration Analysis,and Traffic Impact Analysis. These technical reports will analyze each project individually as well as a cumulative scenario.
LSA will prepare a Biological Resources Report and Cultural Resources Report for one of the two Western Realco project sites (26250 Enterprise Way).
As part of the Traffic Impact Analysis, LSA will prepare a formal VMT analysis. The VMT analysis will include a comparison of the output/results of the LFTAM model, which is used by the City, with the output/results of the OCTAM model, which is used by LSA. LSA will collect traffic counts and analyze geometric and traffic control data at no more than 5 locations to be used for both traffic reports (i.e., the one being prepared for the IPT Enterprise Business Center LLC Project and the one being prepared for the Western Realco projects). LSA assumes that data collection will occur immediately following notice to proceed, (early February 2024).
No additional technical analysis, aside from the analyses listed above, will be prepared. LSA will utilize the existing Biological Report, Cultural Report, Geotechnical Reports, Phase I ESA, Preliminary Hydrologic & Hydraulic Report, and the Preliminary Water Quality Management Plan for the IPT Enterprise Business Center LLC Project and the Western Realco Project at 26110, 26140, and 26160 Enterprise Way.
LSA will utilize the existing Geotechnical Reports, Phase I ESA, Preliminary Hydrologic & Hydraulic Report, and the Preliminary Water Quality Management Plan for the Western Realco Project at 26250 Enterprise Way.
LSA will assist the City with AB52 Consultation for the 26250 Enterprise Way Project as no AB52 Consultation has been completed for that project.
The City will assist LSA with preparing a list of cumulative projects to be used in the EIR analyses. The Draft EIRs will analyze a maximum of three project alternatives including the “no project” alternative.
The EIR budgets include three rounds of City review prior to distribution of the Public Review Draft EIRs. LSA will respond to one set of non-conflicting comments from the City and its legal counsel per review cycle.
All deliverables will be provided in Word and PDF format to the City. The City will handle distribution of the Notices of Completion/Notices of Availability. The City will prepare the EIR Findings and Statement of Overriding Considerations, if necessary.
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Title: Environmental Consulting Services Related to Environmental Impact Reports (EIRs) 20 The EIR budgets include two rounds of City review of the Final EIRs. LSA will respond to one set of non-conflicting comments from the City and its legal counsel per review cycle. Two hard copies of the final EIRs will be provided to the City with technical appendices provided on a flash drive.
LSA recognizes the relationship of trust and confidence established between it and the City by this Agreement and guarantees to furnish its best skill and judgment and to deliver the highest quality work products at submittals of first drafts and all subsequent deliverables. LSA agrees to perform its services cost effectively (proposal Attachments C, D, E, F and G). All budgeted line items are not-to-exceed fees.
LSA shall develop and monitor an effective system of project cost control, recognizing that if fewer hours are expended than budgeted, LSA shall only invoice for actual time spent working on the project. The ultimate invoiced cost may therefore be less than the maximum contracted amount.
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Title: Environmental Consulting Services Related to Environmental Impact Reports (EIRs) 21 6. EXHIBIT "B" - SCHEDULE OF SERVICES
6.1. EXHIBIT "B" - SCHEDULE OF SERVICES
PROPOSED ENVIRONMENTAL IMPACT REPORT SCHEDULE FOR THE IPT ENTERPRISE BUSINESS CENTER LLC PROJECT (26200 ENTERPRISE WAY)
PHASE/TASK MILESTONE DATE for IPT
ENTERPRISE BUSINESS CENTER LLC
PROJECT DURATION
Phase 01: Project Initiation
1.1: Kick-Off Meeting Within 1 week from Notice to
Proceed (NTP anticipated February
13, 2024)
2/13/2024
1.1.1: Draft Project Description 2 weeks 2/27/2024
City Review of Draft Project
Description
1 week 3/5/2024
LSA Finalizes Project
Description
1 week 3/12/2024
1.2: Scoping Meeting/Comment
Inventory
--- ---
1.3: Prepare Notice of Preparation 1 week 3/19/2024
City Review of Notice of
Preparation
1 week 3/26/2024
LSA Finalizes Notice of
Preparation and Distribution to
Public
3 days 3/29/2024
Phase 02: Prepare Technical
Analyses (This phase will
commence after the Project
Description is finalized)
2.1: Air Quality/GHG/Energy
Analysis
4 weeks1 4/12/2024
City Review of Air
Quality/GHG/Energy Analysis
1 week 4/19/2024
LSA Finalizes Air
Quality/GHG/Energy Analysis
2 weeks 5/3/2024
2.2: Prepare Health Risk
Assessment (HRA)
4 weeks1 4/12/2024
City Review of Draft HRA 1 week 4/19/2024
LSA Finalizes HRA 2 weeks 5/3/2024
2.3: Assist City with AB 52
Compliance
--- ---
2.4: Prepare Noise and Vibration
Impact Analysis
4 weeks1 4/12/2024
City Review of Draft Noise and
Vibration Impact Analysis
Memorandum
1 week 4/19/2024
LSA Finalizes Noise and
Vibration Impact Analysis
Memorandum
2 weeks 5/3/2024
2.5: Prepare Traffic Impact Analysis
(TIA)
6 weeks2 4/26/2024
City Review of TIA 1 week 5/3/2024
LSA Finalizes TIA 2 weeks 5/17/2024
Phase 03: Prepare Draft
Environmental Impact Report (EIR)
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Title: Environmental Consulting Services Related to Environmental Impact Reports (EIRs) 22 3.1: Prepare Administrative Draft
EIR (Partial Draft)
8 weeks3 6/21/2024
City Review of Administrative Draft
EIR
3 weeks 7/12/2024
3.2: Prepare Second Administrative
Draft EIR (Complete Draft)
6 weeks4 8/2/2024
City Review of Second
Administrative Draft EIR
2 weeks 8/16/2024
3.3: Prepare Screencheck Draft EIR 4 weeks 9/13/2024
City Review of Screencheck Draft EIR 2 weeks 9/27/2024
3.4: Prepare Public Review Draft
EIR
2 week 10/11/2024
3.5: Prepare and File Public Notices 1 week 10/18/2024
EIR Public Review Period 6 weeks (45 days) 12/2/2024
Phase 04: Preparation of Final EIR
4.1: Prepare Administrative Draft
Final EIR, including RTC and MMRP
4 weeks 1/8/2025
City Review of Administrative Draft
Final EIR, including RTC and MMRP
3 weeks 1/29/2025
4.2: Prepare Draft Final EIR 3 weeks 2/19/2025
City Review of Draft Final EIR 2 weeks 3/5/2025
4.3: Prepare Final EIR 2 weeks 3/19/2025
City Review of Final EIR 1 week 3/26/2025
4.4: LSA Distribute Final EIR 2 weeks 4/9/2025
City Planning Commission Meeting 5/9/2025
City Council Meeting 6/18/2025
4.5: LSA Prepares and Files Notice
of Determination
2 days 6/20/2025
Phase 05: Project Management and
Meetings
5.1: Project Management Ongoing ---
5.2: Meeting Attendance Ongoing ---
5.2.1: Weekly City Coordination
Meetings
Ongoing ---
5.2.2: Public Workshop during
Public Review of EIR
TBD ---
5.2.3: Two City Planning
Commission Meetings
TBD ---
5.2.4: Two City Council Meetings TBD ---
1 From finalization of project description and receipt of the necessary traffic data associated with Task 2.5. 2 Following receipt of traffic counts and traffic volumes and/or studies for approved and/or pending projects (i.e., cumulative project list).
Assuming a start date of 3/12/2024.
3 From close of NOP process.
4 From completion of Partial Administrative Draft EIR.
PROPOSED ENVIRONMENTAL IMPACT REPORT SCHEDULE FOR THE WESTERN REALCO PROJECTS (26110, 26140, 26160, AND 26250 ENTERPRISE WAY)
PHASE/TASK MILESTONE DATE
for Western Realco
PROJECT
DURATION
Phase 01: Project Initiation
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Title: Environmental Consulting Services Related to Environmental Impact Reports (EIRs) 23 1.1: Kick-Off Meeting Within 1 week from
Notice to Proceed (NTP
anticipated February 13,
2024)
2/13/2024
1.1.1: Draft Project Description 2 weeks 2/27/2024
City Review of Draft Project Description 1 week 3/5/2024 LSA Finalizes Project Description 1 week 3/12/2024
1.2: Scoping Meeting/Comment Inventory --- ---
1.3: Prepare Notice of Preparation 1 week 3/19/2024
City Review of Notice of Preparation 1 week 3/26/2024
LSA Finalizes Notice of Preparation and Distribution to Public 3 days 3/29/2024 Phase 02: Prepare Technical Analyses (This phase will commence after the Project Description is finalized)
2.1: Air Quality/GHG/Energy Analysis 4 weeks1 4/12/2024 City Review of Air Quality/GHG/Energy Analysis 1 week 4/19/2024 LSA Finalizes Air Quality/GHG/Energy Analysis 2 weeks 5/3/2024
2.2: Prepare Health Risk Assessment (HRA) 4 weeks1 4/12/2024 City Review of Draft HRA 1 week 4/19/2024
LSA Finalizes HRA 2 weeks 5/3/2024
2.3: Assist City with AB 52 Compliance --- ---
2.4: Prepare Noise and Vibration Impact Analysis 4 weeks1 4/12/2024 City Review of Draft Noise and Vibration Impact Analysis Memorandum 1 week 4/19/2024 LSA Finalizes Noise and Vibration Impact Analysis Memorandum 2 weeks 5/3/2024
2.5: Prepare Traffic Impact Analysis (TIA) 6 weeks2 4/26/2024 City Review of TIA 1 week 5/3/2024
LSA Finalizes TIA 2 weeks 5/17/2024
2.6: Prepare Biological Resources Report for 26250 Enterprise Way 4 weeks 4/12/2024 City Review of Biological Resources Report 1 week 4/19/2024 LSA Finalizes Biological Resources Report 1 week 5/3/2024
2.7: Prepare Cultural Resources Report for 26250 Enterprise Way 6 weeks 4/26/2024 City Review of Cultural Resources Report 1 week 5/3/2024 LSA Finalizes Cultural Resources Report 1 week 5/10/2024 Phase 03: Prepare Draft Environmental Impact Report (EIR)
3.1: Prepare Administrative Draft EIR (Partial Draft) 8 weeks3 6/21/2024 City Review of Administrative Draft EIR 3 weeks 7/12/2024
3.2: Prepare Second Administrative Draft EIR (Complete Draft) 8 weeks4 8/2/2024 City Review of Second Administrative Draft EIR 2 weeks 8/16/2024
3.3: Prepare Screencheck Draft EIR 4 weeks 9/13/2024
City Review of Screencheck Draft EIR 2 weeks 9/27/2024
3.4: Prepare Public Review Draft EIR 2 week 10/11/2024
3.5: Prepare and File Public Notices 1 week 10/18/2024
EIR Public Review Period 6 weeks (45 days) 12/2/2024
Phase 04: Preparation of Final EIR
4.1: Prepare Administrative Draft Final EIR, including RTC and MMRP 4 weeks 1/8/2025 City Review of Administrative Draft Final EIR, including RTC and MMRP 3 weeks 1/29/2025
4.2: Prepare Draft Final EIR 3 weeks 2/19/2025
City Review of Draft Final EIR 2 weeks 3/5/2025
4.3: Prepare Final EIR 2 weeks 3/19/2025
City Review of Final EIR 1 week 3/26/2025
4.4: LSA Distribute Final EIR 2 weeks 4/9/2025
City Planning Commission Meeting 5/9/2025
City Council Meeting 6/18/2025
4.5: LSA Prepares and Files Notice of Determination 2 days 6/20/2025 Phase 05: Project Management and Meetings
5.1: Project Management Ongoing ---
5.2: Meeting Attendance Ongoing ---
5.2.1: Weekly City Coordination Meetings Ongoing ---
5.2.2: Public Workshop during Public Review of EIR TBD ---
5.2.3: Two City Planning Commission Meetings TBD ---
5.2.4: Two City Council Meetings TBD ---
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Title: Environmental Consulting Services Related to Environmental Impact Reports (EIRs) 24 1 From finalization of project description and receipt of the necessary traffic data associated with Task 2.5. 2 Following receipt of traffic counts and traffic volumes and/or studies for approved and/or pending projects (i.e., cumulative project list).
Assuming a start date of 3/12/2024.
3 From close of NOP process.
4 From completion of Partial Administrative Draft EIR.
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Title: Environmental Consulting Services Related to Environmental Impact Reports (EIRs) 25 7. EXHIBIT "C" - COMPENSATION
7.1. EXHIBIT "C" - COMPENSATION
Consultant shall be paid for services in accordance with Section 3.3 of the Agreement and as described above under Exhibit “A” Scope of Services and the not to exceed fee of EIGHT HUNDERED SEVENTY- THREE THOUSAND FIVE HUNDERED FORTY DOLLARS AND EIGHTY-EIGHT CENTS ($873,540.88).
PROPOSED TECHNICAL REPORTS BUDGET SPREADSHEET FOR
THE IPT ENTERPRISE BUSINESS CENTER LLC PROJECT (26200 ENTERPRISE WAY)
PROPOSED ENVIRONMENTAL IMPACT REPORT BUDGET SPREADSHEET FOR THE IPT ENTERPRISE BUSINESS CENTER LLC PROJECT (26200 ENTERPRISE WAY)
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Title: Environmental Consulting Services Related to Environmental Impact Reports (EIRs) 26 PROPOSED TECHNICAL REPORTS BUDGET SPREADSHEET FOR THE WESTERN REALCO PROJECTS (26110, 26140, 26160, AND 26250 ENTERPRISE WAY) DocuSign Envelope ID: 2F2E0BF7-51E6-4C93-964C-FE37242072D5 Item: 10
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Title: Environmental Consulting Services Related to Environmental Impact Reports (EIRs) 27 PROPOSED ENVIRONMENTAL IMPACT REPORT BUDGET SPREADSHEET FOR THE WESTERN REALCO PROJECTS (26110, 26140, 26160, AND 26250 ENTERPRISE WAY)
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Title: Environmental Consulting Services Related to Environmental Impact Reports (EIRs) 28 In the event that this Agreement is renewed pursuant to Section 3.1.2, the rates set forth above may be increased or reduced each year at the time of renewal, but any increase shall not exceed the Consumer Price Index, All Urban Consumers, Los Angeles-Long Beach-Anaheim.
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Title: Environmental Consulting Services Related to Environmental Impact Reports (EIRs) 29 8. EXHIBIT "D" - INSURANCE REQUIREMENTS
8.1. EXHIBIT "D" - INSURANCE REQUIREMENTS
1.1.1 Time for Compliance. Consultant shall not commence work under this Agreement until it has provided evidence satisfactory to the City that it has secured all insurance required under this section. In addition, Consultant shall not allow any subconsultant to commence work on any subcontract until it has provided evidence satisfactory to the City that the subconsultant has secured all insurance required under this section.
1.1.2 Types of Insurance Required. As a condition precedent to the effectiveness of this Agreement for work to be performed hereunder, and without limiting the indemnity provisions of the Agreement, the Consultant, in partial performance of its obligations under such Agreement, shall procure and maintain in full force and effect during the term of the Agreement the following policies of insurance. If the existing policies do not meet the insurance requirements set forth herein, Consultant agrees to amend, supplement or endorse the policies to do so. (A) Commercial General Liability: Commercial General Liability Insurance which affords coverage at least as broad as Insurance Services Office "occurrence" form CG 0001, or the exact equivalent, with limits of not less than $1,000,000 per occurrence and no less than $2,000,000 in the general aggregate. Defense costs shall be paid in addition to the limits. The policy shall contain no endorsements or provisions (1) limiting coverage for contractual liability; (2) excluding coverage for claims or suits by one insured against another (cross-liability); or (3) containing any other exclusion(s) contrary to the terms or purposes of this Agreement.
(B) Automobile Liability Insurance: Automobile Liability Insurance with coverage at least as broad as Insurance Services Office Form CA 0001 covering "Any Auto" (Symbol 1), or the exact equivalent, covering bodily injury and property damage for all activities with limits of not less than $1,000,000 combined limit for each occurrence.
(C) Workers’ Compensation: Workers' Compensation Insurance, as required by the State of California and Employer's Liability Insurance with a limit of not less than $1,000,000 per accident for bodily injury and disease.
(D) Professional Liability (Errors & Omissions): Professional Liability insurance or Errors & Omissions insurance appropriate to Consultant’s profession with limits of not less than $1,000,000. Covered professional services shall specifically include all work to be performed under the Agreement and delete any exclusions that may potentially affect the work to be performed (for example, any exclusions relating to lead, asbestos, pollution, testing, underground storage tanks, laboratory analysis, soil work, etc.). If coverage is written on a claims-made basis, the retroactive date shall precede the effective date of the initial Agreement and continuous coverage will be maintained or an extended reporting period will be exercised for a period of at least three (3) years from termination or expiration of this Agreement.
1.1.3 Insurance Endorsements. Required insurance policies shall contain the following provisions, or Consultant shall provide endorsements on forms approved by the City to add the following provisions to the insurance policies:
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Title: Environmental Consulting Services Related to Environmental Impact Reports (EIRs) 30 (A) Commercial General Liability
(1) Additional Insured: The City, its officials, officers, employees, agents, and volunteers shall be additional insureds with regard to liability and defense of suits or claims arising out of the performance of the Agreement.
Additional Insured Endorsements shall not (1) be restricted to "ongoing operations"; (2) exclude "contractual liability"; (3) restrict coverage to "sole" liability of Consultant; or (4) contain any other exclusions contrary to the terms or purposes of this Agreement. For all policies of Commercial General Liability insurance, Consultant shall provide endorsements in the form of ISO CG 20 10 10 01 and 20 37 10 01 (or endorsements providing the exact same coverage) to effectuate this requirement. (2) Cancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City except ten (10) days shall be allowed for non-payment of premium. (B) Automobile Liability:
(1) Cancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City except ten (10) days shall be allowed for non-payment of premium. (C) Professional Liability (Errors & Omissions):
(1) Cancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City except ten (10) days shall be allowed for non-payment of premium. (2) 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.
(D) Workers’ Compensation:
(1) Cancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City except ten (10) days shall be allowed for non-payment of premium. (2) Waiver of Subrogation: A waiver of subrogation stating that the insurer waives all rights of subrogation against the City, its officials, officers, employees, agents, and volunteers.
1.1.4 Primary and Non-Contributing Insurance. All policies of Commercial General Liability and Automobile Liability insurance shall be primary and any other insurance, deductible, or self- insurance maintained by the City, its officials, officers, employees, agents, or volunteers shall not contribute with this primary insurance. Policies shall contain or be endorsed to contain such provisions.
1.1.5 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 these specifications to waive their right of recovery prior to a DocuSign Envelope ID: 2F2E0BF7-51E6-4C93-964C-FE37242072D5 Item: 10
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Title: Environmental Consulting Services Related to Environmental Impact Reports (EIRs) 31 loss. Consultant hereby waives its own right of recovery against the City, its officials, officers, employees, agents, and volunteers, and shall require similar written express waivers and insurance clauses from each of its subconsultants.
1.1.6 Deductibles and Self-Insured Retentions. Any deductible or self-insured retention must be approved in writing by the City and shall protect the City, its officials, officers, employees, agents, and volunteers in the same manner and to the same extent as they would have been protected had the policy or policies not contained a deductible or self-insured retention.
1.1.7 Evidence of Insurance. The Consultant, concurrently with the execution of the Agreement, and as a condition precedent to the effectiveness thereof, shall deliver either certified copies of the required policies, or original certificates on forms approved by the City, together with all endorsements affecting each policy. Required insurance policies shall not be in compliance if they include any limiting provision or endorsement that has not been submitted to the City for approval. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf. At least fifteen (15 days) prior to the expiration of any such policy, evidence of insurance showing that such insurance coverage has been renewed or extended shall be filed with the City. If such coverage is cancelled or reduced and not replaced immediately so as to avoid a lapse in the required coverage, Consultant shall, within ten (10) days after receipt of written notice of such cancellation or reduction of coverage, file with the City evidence of insurance showing that the required insurance has been reinstated or has been provided through another insurance company or companies.
1.1.8 Failure to Maintain Coverage. In the event any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced immediately so as to avoid a lapse in the required coverage, City has the right but not the duty to obtain the insurance it deems necessary and any premium paid by City will be promptly reimbursed by Consultant or City will withhold amounts sufficient to pay premium from Consultant payments. In the alternative, City may cancel this Agreement effective upon notice.
1.1.9 Acceptability of Insurers. Each such policy shall be from a company or companies with a current A.M. Best's rating of no less than A:VII and authorized to transact business of insurance in the State of California, or otherwise allowed to place insurance through surplus line brokers under applicable provisions of the California Insurance Code or any federal law.
1.1.10 Enforcement of Contract Provisions (non estoppel). Consultant acknowledges and agrees that actual or alleged failure on the part of the City to inform Consultant of non-compliance with any requirement imposes no additional obligation on the City nor does it waive any rights hereunder.
1.1.11 Requirements Not Limiting. Requirement of specific coverage or minimum limits contained in this Appendix are not intended as a limitation on coverage, limits, or other requirement, or a waiver of any coverage normally provided by any insurance.
1.1.12 Insurance for Subconsultants. Consultant shall include all subconsultants engaged in any work for Consultant relating to this Agreement as additional insureds under the Consultant's policies, or the Consultant shall be responsible for causing subconsultants to purchase the appropriate insurance in compliance with the terms of these Insurance Requirements, including adding the City, its DocuSign Envelope ID: 2F2E0BF7-51E6-4C93-964C-FE37242072D5 Item: 10
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Title: Environmental Consulting Services Related to Environmental Impact Reports (EIRs) 32 officials, officers, employees, agents, and volunteers as additional insureds to the subconsultant's policies. All policies of Commercial General Liability insurance provided by Consultant’s subconsultants performing work relating to this Agreement shall be endorsed to name the City, its officials, officers, employees, agents and volunteers as additional insureds using endorsement form ISO CG 20 38 04 13 or an endorsement providing equivalent coverage. Consultant shall not allow any subconsultant to commence work on any subcontract relating to this Agreement until it has received satisfactory evidence of subconsultant’s compliance with all insurance requirements under this Agreement, to the extent applicable. The Consultant shall provide satisfactory evidence of compliance with this section upon request of the City.
DocuSign Envelope ID: 2F2E0BF7-51E6-4C93-964C-FE37242072D5 Item: 10
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Attachment 2
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Enterprise Projects Map
26200 Enterprise
Way
SDP 06-21-5437
26110, 26140
26160 Enterprise
Way
SDP 08-23-5653
& PSP 06-21-5439
26250 Enterprise
Way
SDP 09-23-5658
1 2
3 Item: 10
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Attachment 3
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Attachment 3
CITY COUNCIL AGENDA REPORT
MEETING DATE: 10/19/2021
DEPARTMENT: Community Development
SUBJECT:
PROFESSIONAL CONSULTANT CONTRACT AWARD FOR ON-CALL
ENVIRONMENTAL CONSULTANT SERVICES
RECOMMENDED ACTION(S):
1. Award a three-year Professional Consultant Services Agreement in the amount of $120,000 to Vandermost Consulting Services, Inc. dba VCS Environmental of San Juan Capistrano, California, to provide On-Call Environmental Consultant Services.
2. Authorize the Mayor to sign and the City Clerk to attest an agreement with Vandermost Consulting Services, Inc. dba VCS Environmental, for On-Call Environmental Consultant Services, substantially in the form attached.
3. Award a three-year Professional Consultant Services Agreement in the amount of $120,000 to De Novo Planning Group of El Dorado Hills, California, to provide On-Call Environmental Consultant Services.
4. Authorize the Mayor to sign and the City Clerk to attest an agreement with De Novo Planning Group, for On-Call Environmental Consultant Services, substantially in the form attached.
5. Award a three-year Professional Consultant Services Agreement in the amount of $120,000 to Ascent Environmental Inc. of Sacramento, California, to provide On-Call Environmental Consultant Services.
6. Authorize the Mayor to sign and the City Clerk to attest an agreement with Ascent Environmental Inc., for On-Call Environmental Consultant Services, substantially in the form attached.
7. Award a three-year Professional Consultant Services Agreement in the amount of $120,000 to LSA Associates, Inc., of Irvine, California, to provide On-Call Environmental Consultant Services.
8. Authorize the Mayor to sign and the City Clerk to attest an agreement with LSA Associates, Inc., for On-Call Environmental Consultant Services, Item: 10
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Attachment 3
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substantially in the form attached.
9. Award a three-year Professional Consultant Services Agreement in the amount of $120,000 to Sagecrest Planning and Environmental, of San Juan Capistrano, California, to provide On-Call Environmental Consultant Services.
10. Authorize the Mayor to sign and the City Clerk to attest an agreement with Sagecrest Planning and Environmental for On-Call Environmental Consultant Services, substantially in the form attached.
EXECUTIVE SUMMARY:
The Community Development Department utilizes on-call environmental consultants to provide technical services related to the California Environmental Quality Act (“CEQA”) requirements or otherwise informing decisions related to environmental matters. These services may include but are not limited to; preparation of technical studies, initial studies, negative declarations, and/or mitigated negative declarations, peer review of environmental documents from outside agencies, peer review of technical studies provided by applicants, and provision of expert technical testimony before decision-making bodies. On June 18, 2019, the City Council approved Professional Consultant Services Agreements with LSA Associates, Inc., De Novo Planning Group (“De Novo Planning”), and Chambers Group, Inc. Like other consultant contract awards for services, awarding more than one professional services contract provides the City with greater flexibility to fulfill on-call consulting needs.
Over the term of these agreements, which are valid for an initial three-year period through July 8, 2022, the City has experienced an increase in the number of projects requiring CEQA technical studies or informing decisions related to environmental matters. In response, staff increased the budget for this purpose and initiated a new Request for Proposals (“RFP”) for on-call environmental consultants. After conducting a competitive procurement process consistent with the City’s Purchasing and Contracting Guidelines (“Purchasing Guidelines”), staff identified the most qualified consultants to provide professional environmental services on an as-needed basis.
The five attached consultant agreements would allow the City to secure on-call environmental consulting services, based on need, for the next three years at $40,000 per year, per agreement. The full compensation amount for each agreement is $120,000. Staff recommends the City Council award the attached Professional Consultant Services Agreements to Ascent Environmental, Inc. (Attachment 1), De Novo Planning Group (Attachment 2), LSA Associates, Inc.
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(Attachment 3), Sagecrest Planning and Environmental (Attachment 4), and Vandermost Consulting Services, Inc. (Attachment 5). Sufficient funding exists in the 2021-23 Operating Budget to cover the recommended action. The term of each of these agreements would expire on October 5, 2024, unless extended by the City Council via two optional one-year extensions.
BACKGROUND:
Throughout the year, staff is required to prepare environmental documentation for City-initiated projects, review applicant-submitted technical studies that require environmental expertise for peer review or solicit technical assistance from an environmental expert for presentation to a decision-making body. On June 18, 2019, the City Council approved Professional Consultant Services Agreements with LSA Associates, Inc. (“LSA”), De Novo Planning Group (“De Novo”), and Chambers Group, Inc. (“Chambers”). Over the last few years, there has been a significant increase in projects requiring CEQA technical studies or informing decisions related to environmental matters, thereby impacting the workload of the three consulting firms currently under contract with the City. The compensation amount in the agreements for each of the three consulting firms is nearly expended, but contracts will remain active until the full compensation amount is exhausted, or the term of the agreements expire (June 18, 2022) whichever comes first. The two firms with remaining balances are De Novo ($23,940) and LSA ($32,115). It is anticipated that the remaining funds within the 2019 agreements would be expended toward short-term assignments such as review of technical studies and preparation of environmental exemptions.
To receive services from one of the three existing agreements, staff must solicit informal proposals from each firm. Then, consistent with how the City awards contracts for informal procurements, staff select the most qualified proposal received via a rating criteria. On occasion, one or two consulting firms were unable to provide services or were unresponsive to the City’s request for proposals needed per the informal procurement process. Expanding the on-call environmental consultant list provides a range of cost proposals, allows multiple firms to propose on a project, and yields additional opportunities for firms to work with the City on projects.
The City solicits project-based cost proposals for small-dollar contracts ($50,000 or less) based on workload. This approach eliminates the need to prepare individual RFPs for applicant-initiated projects that require technical review, saving staff and the applicant time and streamlining the entitlement process.
RFPs will continue to be solicited for larger projects (agreements with compensation amounts expected to exceed $50,000), with the recommended firm presented to the City Council for approval.
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DISCUSSION:
On May 18, 2021, the City Manager approved the Request for Proposals (“RFP”) for On-Call Environmental Consultant Services and authorized staff to solicit proposals from qualified consultants. Staff strived to secure five consulting firms for on-call, as-needed environmental services to ensure the City can meet the anticipated demand for environmental services for the following reasons:
Each firm may vary in the availability of experienced staff during the agreement term depending on placements with other clients. In instances where one firm does not have sufficient personnel available at an experienced level to supplement City staff, the multiple consultant contract approach allows staff greater flexibility in assigning work to one of the other consultants without delay.
The utilization of an additional five firms expands the pool of potential contract personnel, providing a greater breadth of technical expertise to meet the City’s needs for each specific project.
Staff advertised the RFP through PlanetBids, which is the City’s resource for posting RFP’s and other procurement solicitations. The City subsequently received proposals from the following seventeen (17) firms:
Ardurra Group, Inc.
Ascent Environmental Inc.
Aspen Environmental Group
Aztec Engineering Group, Inc.
Carlson Strategic Land Solutions
CASC Engineering and Consulting, Inc.
Chambers Group, Inc.
De Novo Planning Group
ECORP Consulting, Inc.
EcoTierra Consulting Inc.
EPD Solutions, Inc.
Kimley-Horn and Associates, Inc.
LSA Associates, Inc.
Sagecrest Planning & Environmental
The Altum Group
UltraSystems Environmental
VCS Environmental
Consistent with the City’s Purchasing Guidelines, staff assembled a Selection Committee approved by the City Manager to review the proposals and participate Item: 10
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in the interview phase of the selection process. The Selection Committee for the On-Call Environmental Consultant Services RFP consisted of the following staff:
Public Works:
• Assistant City Engineer/Engineering Services Manager
Community Development:
• Director of Community Development
• Assistant Director of Community Development
• Management Assistant
Technical Review and Interview Process
The City’s Purchasing Guidelines require the Selection Committee to review all proposals submitted in connection with the RFP. The review is broken down into three sections:
1. Technical Review
2. Qualifications Interview
3. Cost Proposal
Based on an objective list of scoring criteria, the Selection Committee rated proposals using a weighted scoring method with a maximum of 53 points for the technical review, 107 points for the qualifications and interview, and 40 points for cost proposals.
As summarized below (Table 1), twelve (12) submittals met the minimum requirements during the technical review phase and advanced to the qualifications interview phase. As reflected in Table 1, De Novo Planning Group, VCS Environmental, Sagecrest Planning & Environmental, Ascent Environmental, and LSA Associates received the highest scores during the technical review phase and the qualifications interview phase of the selection process.
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Table 1- Technical Review and Interview Scores
Review of Cost Proposals and Reference Checks
At the conclusion of the interview process, the Selection Committee provided the firms the opportunity to submit a last, best, and final cost proposal. Cost proposals were reviewed and scored, with the lowest cost proposal awarded the most points. After the cost analysis was calculated into the overall score, VCS Environmental had the highest aggregate score of 713 points, De Novo scored 670 points, Ascent scored 645 points, LSA Associates scored 635 and Sagecrest scored 580 out of 800 points.
Although reference checks do not impact the overall score, as a measure of due diligence, staff contacted three references for each firm to learn about the firsthand experience and gain further insight into project management, quality, and communication skills. All references contacted provided positive feedback and comments. The top five firms demonstrated an in-depth knowledge of environmental analysis and have sufficient staff with the breadth of technical experience necessary to prepare a range of environmental studies.
Technical
Review
Qualifications
Interview
Rater: Rater: Pricing
Firm 1 2 3 4
Technical
Review
Subtotal 1 2 3 4
Interview
Subtotal
Points
x 4 Total
Ardurra 34 44 45 32 155 68 56 71 62 257 88 500
Ascent
Environmental 41 42 48 42 173 89 90 107 78 364 108 645
Aztec 36 45 36 32 149 72 49 75 64 260 64 473
CSLS 40 35 46 39 160 75 58 93 81 307 112 579
Chambers Group 39 36 35 41 151 67 47 35 56 205 60 416
De Novo
Planning Group 42 49 50 45 186 86 70 107 89 352 132 670 EcoTierra
Consulting 42 45 36 30 153 65 55 72 77 269 48 470
EPD Solutions,
Inc. 35 35 46 35 151 70 59 78 67 274 64 489
LSA 39 35 50 40 164 88 78 73 80 319 152 635
Sagecrest
Planning &
Environmental
39 48 52 35 174 90 87 105 80 362 44 580
UltraSystems
Environmental 36 45 35 35 151 72 56 59 62 249 56 456
VCS
Environmental 40 50 50 41 181 88 93 107 84 372 160 713
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Recommendation
Based on the technical review, qualifications interview, cost proposal analysis, and reference checks, staff recommends awarding a Professional Consultant Services Agreement to the five highest-rated firms: VCS Environmental, De Novo Planning Group, Ascent Environmental, LSA Associates, and Sagecrest Planning and Environmental. Each of the agreements includes a $120,000 compensation amount and a three-year term that can be extended via two optional one-year extensions. These five firms sufficiently described the outstanding qualities of their firm, their firm’s relevant experience, the breadth of their staff’s capabilities, their approach to providing contract environmental services and are favorably recommended by references.
FISCAL IMPACT:
Each of the five Professional Consultant Services Agreements include a $120,000 compensation amount. The term of each agreement is for three years, with two optional one-year extensions. The 2021-23 Operating Budget has sufficient funding to cover the recommended action.
ATTACHMENTS:
1. Agreement with Ascent Environmental Inc.
2. Agreement with De Novo Planning Group
3. Agreement with LSA Associates, Inc.
4. Agreement with Sagecrest Planning and Environmental
5. Agreement with VCS Environmental
6. Reference Checks
Initiated By: Ashley Melchor, Management Assistant
Submitted By: Gayle Ackerman, Director of Community Development Approved By: Debra Rose, City Manager
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Attachment 4
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RESOLUTION NO. 2024-
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF LAKE FOREST, CALIFORNIA, AMENDING
THE 2023-2025 OPERATING BUDGET; AMENDING
APPROPRIATIONS FOR FISCAL YEAR 2023-24
WHEREAS, the 2023-2025 Operating Budget and the appropriations for Fiscal Year 2023-24 were adopted by the City Council on June 20, 2023; and WHEREAS, modifications are now required as a result of changes during Fiscal Year 2023-24.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE
FOREST DOES HEREBY RESOLVE, DETERMINE, FIND AND ORDER AS FOLLOWS:
Section 1. The City Council’s adoption of this Resolution is not a project within the meaning of the California Environmental Quality Act. Specifically, the City’s adoption of the Resolution is an administrative and fiscal function of the City that does not commit the City to any specific project or course of action. (State CEQA Guidelines, sections 15378(b)(4) & (b)(5).) Thus, no environmental review of the Resolution is required. The City Council hereby directs staff to prepare, execute and file with the Orange County Clerk a Notice of Exemption within five working days of the adoption of this Resolution.
Section 2. The General Fund is amended to increase appropriations for Fiscal Year 2023-24 as demonstrated in Exhibit A.
Section 3. The Director of Finance is hereby authorized to move appropriations between programs within program area budgets in concurrence with Department Directors.
Section 4. The City Manager is hereby authorized to transfer appropriations from one program area to another or between funds within the Operating Budget with notification to the City Council Audit Committee.
Section 5. The City Manager is hereby authorized to transfer appropriations from a capital improvement project to another existing project within the adopted Capital Improvement Program with notification to the City Council Audit Committee.
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Section 6. The City Clerk shall attest as to the adoption and execution of this Resolution and cause the same to be maintained in the permanent records of the City.
PASSED, APPROVED AND ADOPTED this 6th day of February 2024, by the following vote, to wit:
ATTEST:
MARK TETTEMER
MAYOR
LISA BERGLUND
CITY CLERK
APPROVED AS TO FORM:
MATTHEW RICHARDSON
CITY ATTORNEY
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STATE OF CALIFORNIA )
COUNTY OF ORANGE ) SS
CITY OF LAKE FOREST )
I, Lisa Berglund, City Clerk of the City of Lake Forest, California, do hereby certify that the foregoing Resolution No. 2024- was duly passed and adopted at a regular meeting of the Lake Forest City Council on the 6th day of February 2024, by the following vote, to wit:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
LISA BERGLUND
CITY CLERK
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EXHIBIT A
AMENDMENT TO 2023-2025
OPERATING BUDGET
FISCAL YEAR 2023-24
APPROPRIATIONS
General Fund Operating Appropriations
Expenditure
Major Program
Area
Current
Budget
Increase
(Decrease) Amended
Budget
Planning, Engineering,
Building and Safety 6,037,924 873,541 $6,911,465
Revenue Estimates
Fund Current
Budget
Increase
(Decrease)
Amended
Budget
General Fund 63,275,800 873,541 $64,149,341
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CITY COUNCIL AGENDA REPORT
MEETING DATE: 2/6/2024
DEPARTMENT: Community Development
SUBJECT:
SECOND AMENDMENT TO AGREEMENT WITH INTERWEST CONSULTING GROUP, INC. FOR BUILDING AND SAFETY SERVICES
RECOMMENDED ACTION(S):
1. Approve the Second Amendment to the Professional Services Agreement with Interwest Consulting Group, Inc. (“Interwest”) contract for Building and Safety Services to extend the term an additional year, update hourly billing rates and service processes under the agreement, and increase total compensation in the amount of $500,000 for a total not-to-exceed compensation amount of $6,340,000.
2. Authorize the Mayor to sign, and the City Clerk to attest, the Second Amendment to the Professional Services Agreement with Interwest, substantially in the form attached.
EXECUTIVE SUMMARY:
On March 16, 2021, the City Council awarded a three-year Professional Services Agreement to Interwest Consulting Group, Inc. (“Interwest”) with a total not-to- exceed compensation amount of $3,600,000 for Building and Safety Services, expiring April 30, 2024 (Attachment 1). This contract amount was based on the estimated volume of development projected to occur over the initial three-year term and allowed for two optional one-year term extensions. On January 5, 2023, the City Council awarded an increase in compensation of $2,240,000 for a total not-to-exceed amount of $5,840,000 through the approval of a First Amendment to the Professional Consultant Services Agreement with Interwest (Attachment 2). Staff now recommends the City Council approve the proposed Second Amendment to the Agreement to extend the term of the agreement by using the first of two one-year extensions and adding additional compensation for services under the extended term.
The proposed Second Amendment to the Professional Services Agreement with Interwest (Attachment 3) would:
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•Increase the total compensation by $500,000 for a total not-to-exceed amount of $6,340,000;
•Extend the term by one year;
•Update the rates of hourly compensation;
•Update consultant key personnel and representatives; and •Update the Delivery of Notices
Costs for services under the agreement are covered by permit revenues.
Applicants pay for the permit, plan check, and inspection fees, and the City and Interwest Consulting, Inc. split the revenue 48% and 52% respectively. As an exception, applicant requested overtime services are charged directly to applicants at 1.5 times the standard rates included under the agreement.
The proposed Second Amendment to the Professional Services Agreement with Interwest was prepared by the Finance Department and reviewed and approved as to form by the City Attorney.
BACKGROUND:
Since its incorporation in 1991, the City has utilized the services of a consulting firm to provide Building and Safety Services to residents and businesses who are building new structures or improving property within the city. On March 16, 2021, after a competitive proposal process consistent with the City’s Purchasing Guidelines, the City Council approved the current Professional Services Agreement with Interwest for Building and Safety Services (“Agreement”). The Agreement included an initial three-year term from May 1, 2021, to April 30, 2024, with a total not-to-exceed compensation amount of $3,600,000. At the discretion of the City Council, and based on vendor performance, two one-year extensions may be granted.
To date, the scope of work as set forth in the contract has been successfully fulfilled by Interwest. The compensation paid to Interwest under the contract for Building and Safety Services is 52% of the fees collected by the City for permit issuance, building plan check fees, and inspection services. The City retains 48% of the fees collected. These fees are calculated in accordance with the City’s adopted Fee Schedule. The initial three-year contract included $3,600,000 in total compensation. This total compensation amount was based on an estimate of future construction activity. Due to favorable market conditions and consumer enthusiasm for the Meadows development by Toll Brothers, the pace of new construction exceeded the conservative estimate made in 2021. On January 5, 2023, the City Council awarded the First Amendment to the Agreement which increased total compensation under the agreement by $2,240,000 for a total not- to-exceed amount of $5,840,000 (“First Amendment”). The current term under the Agreement expires April 30, 2024.
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DISCUSSION:
The proposed Second Amendment to the Agreement with Interwest (“Second Amendment”) would:
•Increase the total compensation by $500,000 for a total not-to-exceed amount of $6,340,000;
•Extend the term by one year;
•Update the rates of hourly compensation for applicant requested services; •Update consultant key personnel and representatives; and •Update the Delivery of Notices.
The total compensation under the Agreement with Interwest is based on revenue projections for permit issuance, plan check fees, and inspections conducted each year. In accordance with the Agreement, Interwest receives 52% of these revenues. From the commencement of the Agreement in April 2021 to December 2023, $4,605,862.13 has been spent for the building and safety services under the Agreement. The remaining compensation, approximately $1,234,137.87, would be insufficient to cover the anticipated costs for services through the end of the proposed one-year term extension.
Due to the proposed term extension and ongoing and projected activity requiring building and safety services, additional compensation is necessary to provide a commensurate level of professional services. Staff contacted the developers of the various residential communities within the City to anticipate the upcoming volume of construction. In addition, staff factored into account the likely activity in the commercial and industrial sectors, as well as home improvement activity and additions. At this time, staff estimates that an additional $500,000 would be required to cover the cost of Building and Safety Services through the remainder of the proposed contract term.
The proposed Second Amendment would include an increase in compensation of $500,000 for a total not-to-exceed amount of $6,340,000 and would extend the term by one year to April 30, 2025. Additionally, Interwest’s key personnel and representatives have changed since the initial agreement was executed and have been updated in the proposed Second Amendment. Should the City Council approve the proposed Second Amendment, a budget adjustment would be requested during the Fiscal Year 2023-24 Mid-Year Budget Review in March to update revenue and expenditure projections for building and safety services based on future anticipated building activity.
The City and Interwest have developed a process in which applicant refunds are properly accounted for when calculating revenue from permit issuance, plan check fees, and inspection services. Every month, check requests are submitted Item: 11
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for applicant refunds. The processed monthly requests are then compiled and broken down to calculate Interwest’s share which includes 52% of the refundable portion of the applicable building and safety services fees, which are then reduced from the City’s next invoice. The proposed Second Amendment adds references to the process through which applicant refunds are properly accounted for when invoicing the City.
Pursuant to the City’s Purchasing and Contracting Guidelines, staff completes a vendor performance assessment during a proposed agreement amendment. The assessment is used as a guide to determine whether a contract should be amended, renewed, or terminated based on performance in the following categories: performance of scope of services, timeliness, budget performance, and customer service. Utilizing the evaluation form, staff rates the consultant in each category as shown in Table 1.
Table 1: Vendor Performance Assessment
Interwest Consulting Group – Performance Review
May 1, 2021- December 31, 2023
Category Unsatisfied – Very Satisfied
Performance of Scope of
services
☐Unsatisfied ☐ Satisfied ☒ Very Satisfied ☐N/A
Timeliness ☐Unsatisfied ☐ Satisfied ☒ Very Satisfied ☐N/A Budget Performance ☐Unsatisfied ☐Satisfied ☒ Very Satisfied ☐N/A Customer Service ☐Unsatisfied ☐Satisfied ☒ Very Satisfied ☐N/A The Finance Department prepared the proposed Second Amendment and the City Attorney’s Office reviewed and approved the document as to form (Attachment 3).
FISCAL IMPACT:
The proposed Second Amendment would extend the term by an additional year and increase compensation by $500,000, bringing the total not-to-exceed compensation amount under the agreement to $6,340,000. Ultimately, the fees for permit, plan check, and inspection services are borne by applicants. Per the terms of the contract, Interwest Consulting, Inc. receives 52% of the fee revenue collected and the City receives the other 48%. For applicant-requested overtime building and safety services, the applicant will be invoiced for the specific services set at 1.5 times the standard hourly rate.
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Currently, the 2023-2025 Operating Budget includes $1,200,000 for Building and Safety Services. Staff will propose to increase this amount during the Fiscal Year 2023-24 Mid-Year Budget Review in March.
ATTACHMENTS:
1. Professional Services Agreement with Interwest Consulting Group Inc. (March 25, 2021)
2. First Amendment to Agreement with Interwest Consulting Group Inc. (January 5, 2023)
3. Second Amendment to Agreement with Interwest Consulting Group Inc.
Initiated By: Arianna Young, Management Assistant
Reviewed By: Amy Stonich, AICP, Assistant Director of Community Development Submitted By: Gayle Ackerman, AICP, Director of Community Development Approved By: Debra Rose, City Manager
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AT TACHMENT 1
ATTACHMENT 1
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CITY OF LAKE FOREST
PROFESSIONAL CONSUL TANT SERVICES AGREEMENT
1. PARTIES AND DATE,
This Agreement is made and entered into this 2f3 day of Mflt.f<� 20 LJ, by and between the City of Lake Forest, a municipal corporation, organized under the laws of the State of California, with its principal place of business at 100 Civic Center Drive, lake Forest, California, 92630 C'City") and lnterwest Consulting Group, Inc., a California corporation, with its principal place of business at 1 Jenner, Sui te 160, Irvine CA 92618 ("Consultant"). City and Consultant are sometimes individually referred to herein as "Partyn and collectively as "Parties. 0 2. RECITALS.
2.1 Consultant.
Consultant desires to perform and assume responsibility for the provision of certain professional building and safety consulting services required by the City on the terms and conditions set forth in this Agreement. Consultant represents that it is experienced ,in providing professional building and safety consulting services to public clients, is licensed in the State of California, and is familiar with the plans of City.
2.2 Project.
City desires to engage Consultant to render such professiona l building and safety consulting services for the project ("Project") as set forth in this Agreement.
3. TERMS.
3.1 Scope of Services and Term.
3.1.1 General Scope of Services. Consultant promises and agrees to furnish to the City all labor, materials, tools, equipment, services, and incidental and customary work necessary to fully and adequately supply the professional building and safety consulting services necessary for the Project ("Services"). The Services are more particularly described in Exhibit "A" attached hereto and incorporated herern by reference. All Services shall be subject to, and performed in accordance with, this Agreement, the exhibits attached hereto and incorporated herein by reference, and all applicable local, state and federal laws, rules and regulations.
3.1.2 Term. The telTn of this Agreement shall be from May 1, 2021 to April 30, 2024, unless earlier terminated as provided herein. The City shall have the unilateral option, at its sole discretion, to renew this Agreement automatically for no more than two (2) additional one year terms. Consultant shall complete the Services within the term of this Agreement, and shall meet any other established schedules and deadlines.
3.2 ResponsibHltles of Consultant.
3.2.1 lnde endent Contractor Control and P ment of Subordinates. The Services shall be performed by Consultant or under its supervision. Consultant will determine the (BB&K 2019)
55136.00200\31918793.1 -1-
ATTACHMENT 1
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means, methods and details of performing the Services subject to the requirements of this Agreement. City retains Consultant on an independent contractor basis and not as an employee.
Consultant retains the right to perfonn similar or different services for others during the term of this Agreement. Any additional personnel performing the Services under this Agreement on behalf of Consultant shall also not be employees of City and shall at all times be under Consultant's exclusive direction and control. Neither City, nor any of its officials, officers, directors, employees or agents shall have control over the conduct of Consultant or any of Consultant's officers, employees, or agents, except as set forth in this Agreement Consultant shall pay all wages, salaries, and other amounts due such personnel in connection with their performance of Sen.rices under this Agreement and as required by law. Consultant shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: social security taxes, income tax withholding, unemployment insurance, disability insurance, and workers' compensation insurance.
3.2.2 Schedule of Services. Consultant shall perform the Services expeditiously, within the term of this Agreement, and in accordance with the Schedule of Services set forth in Exhibit
1 '8" attached hereto and incorporated herein by reference. Consultant represents that it has the professional and technical personnel required to perform the Services in conformance with such conditions. In order to facilitate Consultant's conformance with the Schedule, City shall respond to Consultant's submittals In a timely manner. Upon request of City, Consultant shall provide a more detailed schedule of anticipated perfonnance to meet the Schedule of Services.
3.2.3 Conformance to Applicable Requirements. All work prepared by Consultant shall be subject to the approval of City.
3.2.4 Substitution of Key Personnel. Consultant has represented to City that certain key personnel will perform and coordinate the Services under this Agreement. Should one or more of such personnel become unavailable, Consultant may substitute other personnel of at least equal competence upon written approval of City. In the event that City and Consultant cannot agree as to the substitution of key personnel, City shall be entitled to terminate this Agreement for cause. As discussed below, any personnel who fail or refuse to perform the Services in a manner acceptable to the City, or who are determined by the City to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project or a threat to the safety of persons or property, shall be promptly removed from the Project by the Consultant at the request of the City. The key personnel for performance of this Agreement are as follows: Ron Beehler, SE, CBO, ICC, Director, Building and Safety Services and Fred Marzara, PE, ICC, Project Manager, Building Official.
3.2.5 City's Representative. The City hereby designates Gayle Ackerman.
Director of Community Development, or her designee, to act as its representative in all matters pertaining to the administration and performance of this Agreement (~City1s Representative0).
City's Representative shall have the power to act on behalf of the City for review and approval of all products submitted by Consultant but not the authority to enlarge the Scope of Work or change the total compensation due to Consultant under this Agreement. The City Manager shall be authorized to act on Citys behalf and to execute all necessary documents which enlarge the Scope of Work or change the Consultant's total compensation subject to the provisions contained in Section 3.3 of this Agreement. Consultant shall not accept direction or orders from any person other than the City Manager, City's Representative or his/her designee.
3.2.6 Consultant's Representative. Consultant hereby designates Ron Beehler, (BB&K2019)
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SE, CBO, ICC, Director, Building and Safety Services, or his/her designee, to act as its representative for the perfonnance of this Agreement ("Consultant's Representative").
Consultant's Representative shall have full authority to represent and act on behalf of the Consultant for all purposes under this Agreement. The Consultant's Representative shall supervise and direct the Services, using his/her best skill and attention, and shall be responsible for all means, methods, techniques, sequences, and procedures and for the satisfactory coordination of all portions of the Services under this Agreement.
3.2.7 Coordination of Servfces. Consultant agrees to work closely with City staff in the performance of Services and shall be available to City's staff, consultants and other staff at all reasonable times.
3.2.8 Standard of Care: Performance of Employees. Consultant shall perform all Services under this Agreement in a skillful and competent manner, consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California. Consultant represents and maintains that it is skilled in the professional calling necessary to perform the Services. Consultant warrants that all employees and subconsultants shall have sufficient skill and experience to perform the Services assigned to them. Finally, Consultant represents that it, its employees and subconsultants have all licenses, pennits, qualifications and approvals of whatever nature that are legaHy required to perfonn the Services, and that such licenses and approvals shall be maintained throughout the term of this Agreement.
As provided for in the indemnification pro\l!isions of this Agreement, Consultant shall perfonn, at Its own cost and expense and without reimbursement from the City, any services necessary to correct errors or omissions which are caused by the Consultant's failure to comply with the standard of care provided for herein. Any employee of the Consultant or its sub-consultants who is detennined by the City to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project. a threat to the safety of persons or property, or any employee who fails or refuses to perfonn the Services in a manner acceptable to the City, shall be promptly removed from the Project by the Consultant and shall not be re~employed to pertorm any of the Services or to work on the Project.
3.2.9 Laws and Regulations. Consultant shall keep itself fully informed cf and in compliance wlth all tocal, state and federal laws, rules and regulations in any manner affecting the peliormance of the Project or the Services, including all Cal/OSHA requirements, and shall give all notices required by law. Consultant shall be liable for all violations of such laws and regulations in connection with Services. If Consultant performs any work knowing it to be contrary to such laws, rules and regulations, Consultant shall be solely responsible for all costs arising therefrom. Consultant shall defend, indemnify and hold City,. its officials, directors, officers, employees, agents, and volunteers free and harmless, pursuant to the indemnification provisions of this Agreement, from any claim or liability arising out of any failure or alleged failure to comply with such laws, rules or regulations.
3.2.10 Safety. Consultant shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out its Servioes, the Consultant shall at all times be in compliance with an applicable local, state and federal laws. rules and regulations., and shall exercise all necessary precautions for the safe~ of employees appropriate to the nature of the work and the conditions under which the work is to be performed. Safety precautions, where appllcable, shall include, but shall not be limited to: (A) adequate life protection and lifesaving equipment and procedures; (B) instructions in accident prevention for all employees and subconsultants, such as safe walkways, scaffolds, fall protection ladders, bridges, gang planks, (BB&K2019)
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confined space procedures, trenching and shoring, equipment and other safety devices, equipment and wearing apparel as are necessary or lawfully required to prevent accidents or injuries; and (C) adequate facilities for the proper inspection and maintenance of all safety measures.
3.2.11 Insurance. Consultant agrees to procure and maintain, at Consultant's expense all insurance specified in Exhibit ~o~ attached hereto and by this reference incorporated herein. Consultant shall require all subconsultants to calT)' the same policies and limits of insurance that the Consultant is required to maintain, unless otherwise approved in writing by the City.
3.2. 12 Water Quality Management and Compliance.
3.2.12.1 Storm Water Management. Storm, surface, nuisance, or other waters may be enoountered at various times during the Services. Consultant hereby acknowledges that it has investigated the risk arising from such waters, and assumes any and all risks and liabilities arising therefrom.
3.2.12.2 Comgliance with Water Quality Laws, Ordinances and Regulations. Consultant shall keep itself and all subcontractors, staff, and employees fully informed of and in compliance with all local, state and federal laws, rules and regulations that may impact, or be implicated by the performance of the Services including, without limitation, all applicable provisions of the City's ordinances regulating water quality and storm water; the Federal Water Pollution Control Act (33 U..S.C. § 1251, et seq.); the Califomia Porter-Cologne Water Quality Control Act (Water Code§ 13000 et seq.); and any and all regulations, policies, or permits issued pursuant to any such authority. Consultant must additionally comply with the lawful requirements of the City, and any other municipality, drainage district, or other local agency with jurisdiction over the location where the Services are to be conducted, regulating water quality and storm water discharges.
3.2.12.3 Compliance with DAMP and LIP. In addition to compliance with the laws, ordinances and regulations Usted in Section 3.2.12.2 of this Agreement, Consultant must comply with all applicable requirements ofthe Orange County Drainage Area Management Plan ("DAMP"), the City of Lake Forest Local Implementation Plan ("UP") and the applicable Water Quality Management Plan ('WQMP"). The DAMP contains requirements related to design and construction of public projects. Consultant must be familiar tihe DAMP .. and the LIP and comply with the requirements as specified therein.
A co,py of the DAMP is available on the internet at:
https:1/media.ocqov.com/qov/pw/watersheds/documents/damp/default.asp A copy of the LIP is available on the internet at:
http://www.lakeforestca.gov/depts/pw/\wter/local implementation plan %28lip%29.asp More information on 1he applicable WQMP is available on the internet at:
http://www.lakeforestca.gov/depts/pw/water/water quality management plan (wgmp).asp (BB&K 2019)
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3.2.12.4 Standard of Care. Consultant warrants that all employees and subcontractors shall have sufficient skill and experience to perform the work assigned to them without impacting water quality in violation of the laws, regulations and policies described in Sections 3.2.12.2 and 3.2.12.3 of this Agreement. Consultant further warrants that it, its employees and subcontractors have or will receive adequate training, as determined by the City, regarding these requirements as they may relate to the Services.
3.2.12.5 LiabUity for Non-compliance.
(A) Indemnity: Failure to comply with laws, regulations, and ordinances listed in Sections 3.2.12.2 and 3.2.12.3 of this Agreement is a violation of federal and state law. Notw[thstanding any other indemnity contained in this Agreement, Consultant agrees to indemnify and hold harmless the City, its officials, officers, agents, employees and authorized volunteers from and against any and all claims, demands, losses or liabilities of any kind or nature which the City, its officials, officers, agents, employees and authorized volunteers may sustain or incur for noncompliance with the laws, regulations, and ordinances listed above, arising out of or in connection with the Services, except for liability resulting from the· sole established negligence, willful misoonduct or active negligence of the City, its officials, officers, agents, employees or authorized volunteers.
(B} Defense: City reserves the right to defend any enforcement action or civil action brought against the City for Consultant's failure to comply with any applicable water quality law, regulation, or policy. Consultant hereby agrees to be bound by, and to reimburse the City for the costs associated with, any settlement reached between the City and the relevant enforcement entity.
(C) Damages: City may seek damages from Consultant for
delay in oompleting the Services caused by Consultant's failure to comply with the la\lVS, regulations and policies described iin Sections 3.2.12.2 and 3.2.12.3 of this Agreement, or any other relevant water quality law, regulation, or policy.
3.3 Fees and Payments.
3.3.1 Compensation. Consultant shall receive compensation, including authorized reimbursements, for all Services rendered under this Agreement at the rates set forth in Exhibit "C' attached hereto and incorporated herein by reference. The total compensation shall not exceed THREE MILLION SIX HUNDRED THOUSAND DOLLARS ($3,600,000) without written approval of the City Council or City Manager as applicable. Extra Work may be authorized, as described below, and if authorized, wm be compensated at the rates and manner set forth in this Agreement.
3.3.2 Payment of Compensation. Consultant shall submit to City a monthly invoice which indicates work completed and hours of Services rendered by Consultant. The lnvoloe shall describe the amount of Services provided since the initial commencement date, or since the start of the subsequent billing periods, as appropriate, through the date of the invoice.
City shall, within 30 days of receiving such invoice, review the invoice and pay all non-disputed and approved charges thereon. If the City disputes any of Consu'ltant's fees, the City shall give written notice to Consultant within thirty (30) days of receipt of an invoice of any disputed fees set forth therein.
(BB&K2019)
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3.3.3 Reimbursement for Expenses. Consultant shall not be reimbursed for any expenses unless authorized in writing by City, or included in Exhibit "C" of this Agreement.
3.3.4 Extra Work. At any time during the term of this Agreement, City may request that Consultant perfom, Extra Work. As used herein, "Extra Work" means any work which is determined by City to be necessary for the proper completion of the Project, but which the Parties did not reasonably anticipate would be necessary at the execution of this Agreement.
Consultant shall not perform, nor be compensated for, Extra Work without written authorizati>on from the City.
3.3.5 Rate tncreases. In the event that this Agreement is renewed pursuant to Section 3.1.2, the rate set forth in Exhibit "C~ may be adjusted each year at the time of renewal as set forth in Exhibit "C."
3.4 Labor Code Requirements.
3.4.1 Prevailing Wages. Consultant is aware of the requirements of California Labor Code Section 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Section 16000, et seq., ("Prevailing Wage Laws"), which require the payment of prevailing wage rates and the perfonnance of other requirements on °public works" and "maintenance" projects. If the Services are being performed as part of an applicable •public works• or 1'maintenance1' 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 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 hannless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws.
3.4.2 Registration. If the 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.
3.5 Accounting Records.
3.5.1 Maintenance and Inspection. Consu~tant shall maintain complete and accurate records with respect to all costs and expenses incurred under this Agreement. All such records shall be clearly identifiable. Consultant shall aUow a representative of City during nonnal business hours to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement. Consultant shalf allow inspection of all work, data, (BB&K 2019)
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documents, proceedings. and activities related to the Agreement for a period of three (3) years from the date of final payment under this Agreement.
3.6 Genera.I Provisions.
3.6.1 Termination of Agreement.
3.6.1.1 Grounds for Termination. City may, by written notice to Consultant, terminate the whole or any part of this Agreement at any time and without cause by giving written notice to Consultant of such termination, and specifying the effective date thereof, at least seven (7) days before the effective date of such termination. Upon tennination, Consultant shall be compensated only for those services which have been adequately rendered to City, and Consultant shall be entitled to no further compensation. Consultant may not terminate this Agreement except for cause.
3.6.1.2 Effect of Termination. if this Agreement is terminated as provided herein, City may require Consultant to provide all finished or unfinished Documents and Data and other information of any kind prepared by Consultant in connection with the performance of Services under this Agreement. Consultant shall be required to provide such document and other information within fifteen ( 15) days of the request.
3.6.1.3 Additional Servlces. In the event this Agreement is terminated in whole or in part as provided herein, City may procure, upon such terms and in such manner as It may determine appropriate, servlces similar to those terminated.
3.6.1.4 DeUverv of Notices. AH notices permitted or required under this Agreement shall be given to the respective parties at the following address, or at such other address as the respective parties may provide in writing for this purpose:
Consultant:
City:
lnteiwest Consulting Group, Inc.
1 Jenner, Suite 160
Irvine, CA 92618
ATTN: Ron Beehler, Director, Building and Safety Svcs.
City of Lake Forest
100 Civic Center Drive
Lake Forest, CA 92630
ATTN: City Clerk
Such notice shall be deemed made when personally deltvered or when mailed, forty-eight (48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to the party at its applicable address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service.
3.6.2 Ownership of Materials and Confidentiality.
3.6.2.1 Documents & Data: Licensing of lntenectual Property. This Agreement creates a non-exclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, and other intellectual property embodied in plans, specifications, studies, drawings, estimates, and other documents or works of authorship fixed in (B6&K2019)
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any tangible medium of expression, including but not limited to, physical drawings or data magnetically or otherwise recorded on computer diskettes, which are prepared or caused to be prepared by Consultant under this Agreement (NOocuments & Data"). Consultant shall require all subconsultants to agree in writing that City is granted a non-exclusive and perpetual license for any Documents & Data the subconsultant prepares under this Agreement. Consultant represents and warrants that Consultant has the legal right to license any and all Documents & Data.
Consultant makes no such representation and warranty in regard to Documents & Data which were prepared by design professionals other than Consultant or provfded to Consultant by the City. City shall not be limited in any way tn its use of the Documents & Data at any time, provided that any such use not within the· purposes intended by this Agreement shaU be at City's sole risk.
3.6.2.2 Confidentiality. All ideas, memoranda, specifications, plans, procedures, drawings, descriptions, computer program data, input record data, written information, and other Documents & Data either created by or provided to Consultant in connection with the performance of this Agreement shall be held confidential by Consultant. Such materials shall not, without the prior written consent of City, be used by Consultant for any purposes other than the perfomiance of the Services. Nor shall such materials be disclosed to any person or entity not connected with the performance of the Services or the Project. Nothing furnished to Consultant which is otherwise known to Consultant or is generally known, or has become known, to the related industry shall be deemed ocmfidential. Consultant shall not use City's name or inslgnia, photographs of the Project, or any publicity pertaining to the Services or the Project in any magazine, trade paper, newspaper, television or radio production or other similar medium without the prior written consent of City.
3.6.2.3 Confidential Information. The City shall refrain from releasing Consultant's proprietary information eProprietary Information") unless the City's legal counsel determines that the release of the Proprietary Information is required by the California Public Records Act or other applicable state or federal law, or order of a court of competent jurisdiction, in which case the City shall notify Consultant of its intention to reiease Proprietary Information.
Consultant shall have five (5) working days after receipt of the Release Notice to give City written notice of ConsuUant's objection to the City's release of Proprietary Information. Consultant shall indemnify, defend and hold harmless the City, and its officers, directors, employees, and agents from and against all Uability, loss, cost or expense (induding attorney's fees) arising out of a legal action brought to compel the release of Proprietary Information. City shall not release the Proprietary Information after receipt of the Objection Notice unless either: (1) Consultant fails to fully indemnify, defend (with City's choioe of legal counsel), and hold City harmless from any legal action brought to compel such release; and/or (2} a final and non-appealable order by a court of competent jurisdiction requires that City release such infom,ation.
3.6.3 Cooperation; Further Acts. The Parties shall fully cooperate with one another, and shall take any additional acts or sign any additional documents as may be necessary, appropriate or oonvenlent to attain the purposes of this Agreement.
3.6.4 Attorney's Fees. If either party commences an actton against the other party, either legal, administrative or otherwise, arising out of or in connection with this Agreement, the prevailing party in such litigation shall be entitled to have and recover from the losing party reasonable attorney's fees and all other costs of such action.
3.6.5 Indemnification.
(BB&K 2019)
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To the fullest extent permitted by law, Consultant shall defend (witl1 oounsel of City's choosing), indemnify and hold the City, its officials, officers, employees, volunteers and agents free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury of any kind, in law or equity, to property or persons, including wrongful death, in any manner arising out of, pertaining to, or incident to any alleged acts, errors or omissions, or willful misconduct of Consultant, its officials, officers, employees, subcontractors, consultants or agents in connection with the performanc-e of the Consultant•s Services, the Project or this Agreement, including without limitation the payment of all damages, expert witness fees and attorneys fees and other related costs and expenses. Consultants obligation to indemnify shall not be restricted to insurance proceeds, if any, received by the Consultant or the City, its officials, officers, employees, agents or volunteers.
If Consultant's obligation to defend, indemnify, and/or hold harmless arises out of Consultant's perfonnance as a "design professional" (as that term is defined under Civil Code section 2782.8), then, and only to the extent required by Civil Code section 2782.8, which is fully incorporated herein, Consultant's indemnification obl.igation shall be limited to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant, and, upon Consultant obtaining a final adjudication by a court of competent jurisdiction, Consultant's liability for such claim, including the cost to defend, shall not exceed the Consultant's proportionate percentage of fault
3.6.6 Entire Agreement. This Agreement contains the entire Agreement of the parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings or agreements. This Agreement may only be modified by a writing signed by both parties.
3.6.7 Governing Law. This Agreement shaH be governed by the laws of the State of California. Venue shall be in Orange County.
3.6 .. 8 Time of Essence. Time is of the essence for each and every provision of this Agreement.
3.6.9 City's Right to Employ other Consultants. City reserves right to employ other consultants in connection with this Project.
3.6.1 O Successors and Assigns. This Agreement shall be binding on the successors and assigns of the parties.
3.6.11 Assignment or Transfer. Consultant shall not assign, hypothecate, or transfer. either directly or by operation of law, this Agreement or any interest herein without the prior written consent of the City. Any attempt to do so shall be null and void, and any assignees, hypothecates or transferees shall acquire no right or interest by reason of such attempted assignment, hypothecation or transfer.
3.6.12 Construction:References :_Captions. Since the Parties or their agents have participated fully in the preparation of this Agreement, the language of this Agreement shall be construed simply, according to its fair meaning, and not strictJy for or against any Party. Any term referencing time, days or period for perfonnanoe shall be deemed calendar days and not work days. All references to Consultant include all personnel, employees, agents, and subconsultants of Consultant, except as otherwise. specified in this Agreement. All references to Clty include its (SB&K2019)
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elected officials, officers,. employees, agents, and volunteers except as othel'Wise specified in this Agreement. The captions of the various artioles and paragraphs are for convenience and ease of reference only, and do not define, limit, augment, or describe the soope, content, or intent of this Agreement.
3.6.13 Amendment; Modification. No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing and signed by both Parties.
3.6.14 Waiver. No waiver of any default shall constitute a waiver of any other default or breach, wtiether of the same or other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by a Party shall give the other Party any contractual rights by custom, estoppal, or otherwise.
3.6.15 No Third-Party Beneficiaries. There are no intended third party beneficiaries of any right or obligation assumed by the Parties.
3.6.16 Invalidity: Severability. If any portion of this Agreement is deciared invalid, illegal, or otherwise unenforceable by a oourt of competent jurisdiction, the remaining provisions shall continue in full force and effect.
3.6.17 Prohibited Interests. Consultant maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Consultant. to solicit or secure this Agreement. Further, Consultant warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability. For the term of this Agreement. no member, officer or employee of City, during the tenn of his or her service with City, shall have any direct interest in this A(;Jreement, or obtain any present or anticipated material benefit arising therefrom.
3.6.18 Equal Opportunity Employment. Consultant represents that it is an equal opportunity employer and it shall not discriminate against any subconsultant, employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex or age. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination. Consultant shall also comply with all relevant provisions of City's Minority Business Enterprise program, Affirmative Action Plan or other related programs or guidelines currently in effect or hereinafter enacted.
3.6.19 Labor Certification. By its signature hereunder, Consultant certifies that it is aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for Worker's Compensation or to undertake self-insurance in accordance with the provisions of that Code, and agrees to comply with such provisions before commencing the perfom1ance of the Services.
3.6.20 Authority to Enter Agreement. Consultant has all requisite power and authority to conduct its business and to execute, deliver, and perform the Agreement. Each Party warrants that the individuals who have signed this Agreement have the legal power. right, and authority to make this Agreement and bind each respective Party. (BB&K 2019)
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3.6.21 Counterparts. TMs Agreement may be signed in counterparts, each of which shall constitute an original.
3. 7 Subcontracting.
3.7.1 Prior Approval Required. Consultant shall not subcontract any portion of the work required by this Agreement, except as expressly stated herein, without prior written approval of City. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement.
3.7.2 Use of Independent Contractors and Subcontractors. Consultant is aware of statutory and case law regarding classification of workers as independent contractors, including California tabor Code Section 2750.3 and Dynamex Operations West1 . Inc. v. Su~rior Court, 4 Cal. 5th 903 (2018). To ensure that Consultant is in compliance with the California Labor Code, Consultant shall only utilize its employees to provide the Services. Consultant may not provide the services through any independent contractor, subcontractor or subconsultant (1'Subcontractor(s)") unless approved by the City as set forth in Section 3.6.1 of the Agreement.
Consultant represents and warrants that all personnel who perform the Services on Consultant's behalf are Consultant's employees, and that Consultant complies with all applicable laws, rules and regulations governing its employees, including, but not limited to, the California Labor Code, Unemployment Insurance Code and an applicable Industrial Welfare Commission Wage Orders.
City shall have the right to audit Consultant's compliance with this Section; upon City's request, Consultant shall provide within five (5} business days documents sufficient to demonstrate its compliance with this Section including, but not limited to, W4s, itemized wage statements, employee handbooks. and time cards for any of Consultant personnel who provides the Services.
Any provisions in the Agreement which provide, imply or suggest that Consultant may use Suboontractors to provide the Services are modified to be consistent with this Section. fn the event that City authorizes Consultant to use a Subcontractor, Consultant shall enter into a written agreement with the Subcontractor, which must include all applicable provisions oft.he Agreement, including a restriction on the Subcontractor's use of further Independent contractors, subcontractors or subconsultants without the City's prior written consent.
3.7.3 Acknowledgment of Employment Relationship. Consultant shall provide each of its employees who it assigns to provide the Servlces with a copy of the "ACKNOWLEDGMENT OF EMPLOYMENT RELATIONSHIP" attached hereto as Exhibit ~A-1" ("Acknow1edgment"), attached hereto and incorporated herein by reference. Each employee who provides the Services must execute the Acknowledgment before Consultant may permit the employee to provide Services for City. Consultant shall provide a copy of each executed Acknowledgment to City upon City's request.
(BB&K2019)
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INTERWEST CONSUL TING GROUP, INC.
By: ___ ....,__ ___ lli,ll'fla. -;.,,,.,,....,+-.,.. -_ -_ -_ -_ -_ -_ -_ -_ -_ -- By: L-:~~~:;z: :azl)~~ ~-..::::: ---- Terry Ro i e e ident
ATTEST:
By: ~ ~ J._..,,
Lisa Berglund
City Clerk
APPROVED AS TO FORM:
By: /4 ttt; Cl. 1
Best Best & Krieger LLP
City Attorney
(BB&K2019)
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[If C rporation, ~ O SIGNATURES,
President OR Vice President AND
Secretary OR Treasurer REQUIRED]
gi I COO I Vice President
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EXHIBIT RAIi
SCOPE OF SERVICES
The consultant shall provide the followlng professional seivices:
GENERAL SERVICES
• Plan checking services for erosion control, building (architectural and structural), electrical, mechanical and plumbing work.
• Issuing permits for building, electrical, mechanical and plumbing work. • Managing/coordinating review of plans (for permits to be issued by the Building and Safety Division) by other Departments/Divisions, including routing of plans for plan checking (as appropriate, on a case-by.case basis), transmitting comments to permit applicants, and maintaining records of plan check comments. • Inspection services for erosion control, buUding, electrical, mechanical and plumbing work, including all work requiring a permit issued by the Building & Safety Division, as wall as walls/fences, signs, parking lot striping, and other improvements shown on approved plans. Inspectors will be required to verify consistency between approved plans and as-built projects as a standard practice with all inspections, and to report any significant deviations to the Director or her/his designee prior to final of permits. • Administration by Building Official including, but not limited to, resolution of complex Building Code issues, Building Code adoption including recommendation of code refinements.
• Assistance to the public at the counter within City Hall and via phone and e-mail regarding City processes and code/permit requirements. Intake of plans for review. • Review of oonceptual plans for development proposals and preparation of plan review memoranda identifying significant code compliance deficiencies that may impact the project design and/or feasibility.
• Ability to use the City's permitting software to track all building and safety services based on City-established plan submittal and review, permit issuance, inspectlon, and record management processes.
• Assistance with the configuration, implementation, and on-going support of the City's permitting software (City currently utilizes EnerGov by Tyler Technologies). • Assistance with the transition of additional or new permitting software to further implement online plan submittal, plan review and permit issuance. • Coordination/cooperation with. and consultant to. Planning. Code Enforcement, Public Works and other City staff regarding building, plumbing, mechanical, electrical codes, permitting requirements, permitlprojecVinspection status, and other related matters.
• Coordination with Planning, Code Enforcement, Public Works and other City staff on all requirements for permit issuance including compliance with. conditions of approval. • Ongoing training for assigned personnel for full compliance with current building code standards, software updates, etc.
• Review and support of digital dig,ital/electronic plan tracking and review and support when such services are available.
• Assign personnel with all materials, resources and training necessary to conduct plan reviews, induding a current copy of the applicable City amendments, policies, procedures and fonns.
(BB&K 2019)
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• Provision of City-approved mobile devices and mobile data plans compatible to the City's permitting and land management system for building inspectors or personnel as-needed.
SPECIALIZED SERVICES
• Hillside Development Review and Inspection
Due to the location of new residential construction in the City's hillside areas, the City anticipates plan check, permitting, and inspection activity relating to hillside grading, mechanically-stabilized earth (MSE) retaining walls, other soil retaining systems, and drainage.
Responsibility for grading plan check, permitting, and inspections for grading and drainage was transferred to the City's Public Works Department in 2012. However, the Building and Safety Division retains responsibility for reviewing soils reports, foundations. and retaining walls.
The Building and Safety consultant is required to have access to licensed professionals, well versed in the field of geotechnical issues, to provide plan checking of retaining walls and review of geotechnical reports, as wen as any special inspections that may be needed. It is expected that these professionals will coordinate with Public Works Department staff on an as-needed basis with regard to geotechnical matters.
• Permitting System Use, Support, Future Online Permitting and Mobile Devices:
The City currently uses EnerGov by Tyler Technologies, a permitting software program.
E.nerGov provides functionality for multiple City departments and divisionsr including the Building and Safety Division, for tracking and managing project reviews, plan check submittals, permit issuance, and inspection activity. New software may be introduced to facilitate a platform for increased online permitting.
The Building and Safety Services consultant will be required to use E.nerGov or any future software system, to track all building and safety serviaes based upon City-established plan submittal and review, permit issuance, inspection, and record management processes. The consultant shall also assist City staff/consultants as requested with Energov permit, inspection, and fee configuration to support Building and Safety opera.tions.
The consultant will be required to fumish its Building Inspectors with City-approved mobile devices with mobile data plans compatible with the City's permitting and land management system, and to pay the annual software licensing and support fees for the mobile portion of the software. The consultant wrn also be responsible for the ongoing maintenance and replacement of the mobile devices if damaged or at "end-of-life." The consultant's mobile device "end-of-life~ shall be aligned to the City's IT equipment and device replacement standards, which most of the City's end-user IT equipment is plaoed and refreshed every 3-4 years after purchase. EnerGov's mobile application (EnerGov IG Inspect app) currently requires tablet devices with Apple iOS, and the Mobile Software Licensing cost is approximately $700-$800 per device per year. • Electronic Plan Checking:
At such time as electronic plan check services are established, plan checkers assigned to the City shall be proficient in the use of the selected software as necessary to accommodate the (BB&K2019)
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public demand for electronic plan checking in accordance with maximum service delivery timeframes stated herein. Applicants for building permits may choose to submit plans electronically. Therefore, the consultant shaU have the capability to accommodate electronic plan checking.
CORE POSITIONS:
The City has identified "Core Positions" that are instrumental to ensure that a responsive and consistent level of professional service is provided to the public and development community.
The personnel serving in the Core Positions are required to work in Lake Forest City Hall during the hours that City Hall is open to the public, provided however that inspection staff will primarily work in the field. Lake Forest City Hall is open Monday through Friday tmm 8:00 a.m. to 6:00 p.m., excluding 10 holidays annually1. The Core Posmons are also required to be avajlable to respond to emergency situations for structural assessments that may be ,required at times when City Hall is closed for business.
The consultant shall include in their proposal the Full-time staffing of the following Core Positions:
Core Position 1: Building Official with Plan Check Capabilities The position is responsible for performing Chief Building Official Services. The Building Official is responsible for overseeing building plan check, inspection, code compliance and permitting, and acts as an official City representative on buildi,ng~related matters.
Duties shall include:
• Serve as the City's Building Official, enforcing construction and construction site stormwater management codes to ensure public and environmental safety and health;
• Oversee and manage required construction site stonnwater quality inspection, reporting and records maintenance;
• Establish and implement building procedures to ensure a high level of customer satisfaction;
• Plan check complex building plans;
• Provide over-the-counter plan check for minor residential remodels and commercial tenant improvements;
• Provide information and assistance to homeowners, businesses and the development community;
• Resolve interpretation issues for compliance with adopted codes; • Manage staffing levels and staff to ensure that all established timeframes are met and ensure quality control review of plan checks and inspections; • Interface with other City departments/divisions in coordinating plan approval and building/storrnwater code related issues;
1 The City reserves the right to change the hours that City Hall is open without amending the contract and with 10-days minimum notice to consultant. (BB&K2019)
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ATTACHMENT 1
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• Ensure use of the City's permitting software by subordinates to track all building and safety services based on City established plan submittal and review, permit issuance, inspection, and record management processes;
• May be required to attend one or more City Council and/or Planning Commission meetings annually, on an as-needed basis, to address Building & Safety related matters.
Qualifications:
• Five or more years increasingly responsible plans examination, building inspections and structural engineering experience, including two or more years in a supervisory or lead role;
• Equivalent to a Bachelor's degree from an accredited college or university, with major course work in engineering, pubUc administration or related field; • Possession of valid ICC certification as a Certified Building Official and ICC certification as a Plans Examiner;
• Experience with residential tract development highly desirable; • Experience with use and configuration of permit tracking software; • Certification as a Qualified SWPPP practitioner or Qualified SWPPP Developer is highly desirable:
• Registered Civil Engineer highly desirable;
• Certification as a California Access Specialist {CASP) highly desirable; • Excellent oral and written communication skills;
• Solution-oriented customer service experience with a wide range of customers, including developers, contractors, homeowners, business owners and City staff.
Core Position 2: Senior Building Inspector
Quties shalUnclude:
• Supervise building inspectors asstgned to Lake Forest and ensure that records are maintained for all building/inspection activities;
• Provide buildingfconstruction site inspections to ensure compllance with the conditions of approval and code requirements set forth on the plans for which the permit was issued, including code compliance with stormwater management requirements for construction sites;
• Resolve Code interpretation issues in the field; Qualifications:
• Three or more years of experience as a Building Inspector; • Certification as a Qualified SWPPP practitioner or Qualified SWPPP Developer with underlying certification is highly desirable;
• ICC Certification as a Building Inspector:
• ICC Certification as a Combination Building Inspector highly desirable; • Experience with residential tract i:nspection;
• Solution-oriented customer service experience with a wide range of customers including developers, contractors, homeowners, business owners and City staff.
Core Position 3: Lead Permit Technicl ,an
(BB&K2019)
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ATTACHMENT 1
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Consultant shall provide a Lead Permit Technician. The services of the Lead Pennit Technician shall be required to meet maximum service timeframes, depending on current and future workload.
Duties shall include:
Provide assistance at the building counter, accept plans, issue pennits, provide information to general public, calculate charges and fees, prepare statistical reports, coordinate with the Orange County Fl"e Authority review process and personnel, maintain records and prepare documents for storage and/or fmaging and maintain NP0ES records for new construction.
Qualifications:
• Two or more years of experience performing required technical building and safety support functions;
• High school diploma;
• ICC Certification as a Permit Technician highly desirable; • Experience with the use of permit tracking software;
• Solution-orie,nted customer service experience with a wide range of customers, including contractors, homeowners, business owners and City staff.
SUPPORT POSITIONS:
In addition to the three Core Positions outlined above, the consultant is required to provide supplemental personnel on an as-needed basis to ensure that the City's Maximum Service Timeframes are met. The consultant shall be responsible for ensuring that all personnel assigned to Lake Forest have sufficient on-going training and continuing education to perform their assigned duties.
Support Position(s): Plans Examiner/Deputy Building Official.
Office space for supplemental plan checking for building plans may be provided at City Hall but may take p'lace at an off ~site location provided by the consultant.
Duties shall include:
• All duties of the Building Official when serving as the Acting Building Official; • Review plans prepared by or on behalf of applicants for compliance with building ordinances of the City and State disabled-access and energy regulations; • Coordination with other City departments/divisions in order that ttie requirements of those departments can be incorporated within such building plans:
• Coordinate reviews by other appropriate agencies having jurisdiction in such matters related to the enforcement of Fire, Sanitation and Health Codes; • When satisfied that all building-related conditions of approval and the appropriate requireme,nts of the City's Building Codes have been met, and upon approval as necessary of other City departments, consultant shall issue pennits as appropriately set forth in such codes.
Qualifications:
(BB&K2019)
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• Registered Civil Engineer highly desirable;
• Three or more years of experience as a Plans Examiner; • ICC Certification as a Plans Examiner;
• Certification as a California Access Specialist (GASP) desirable; • Experience with the use of permitting software;
• Solution-oriented customer service experience with a wide range of customers including architects, engineers, developers, contractors, homeowners, business owners and City staff.
Support Posltlon(s): Stonnwater Compllance Manager
Duties shall include:
• Oversees maintenance of NPDES site inventory and annual reporting; • Responsible to ensure the regular inspection and monitoring of construction sites City- wide for compliance with SWPPP requirements and BMP compliance verification;
• Provides quarterly training to building inspectors assigned to the City; • Serves as liaison to City staff;
(Staffing to be provided as support to consultant's City Hall-based team on an as- needed basis.)
Qualifications:
• Possess and maintain a certification for Qualified SWPPP practitioner or Qualified SWPPP Developer,
Support Position(s): Building lnspector(s)
Building inspectors shall be provided as necessary to meet the City's Maximum Service Delivery Timeframes. Inspectors shall be provided office space within City Hall and shall be available for typically 2 hours per day but as needed to meet with applicants, schedule inspections and return phone calls.
Duties shall include:
• Provide building inspection services and building/construction site inspection during the course of construction to verify and enforce compliance with approved plans, conditions of approval as set forth on the plans corresponding to the issued permit, and applicable provisions of the City's ordinances and Codes, including code compliance with stormwater management requirements for construction sites ..
Qualffications:
• Two or more years of experience as a Building Inspector; • ICC Certification as a Building Inspector;
• Certification as a ,Qualified SWPPP practitioner or Qualified SWPPP Developer with underlying certification highly desirable;
(BB&K2019)
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• ICC Certification as a Combination Building Inspector highly desirable; • Solution-orrented customer service experience with a wide range of customers including architects, engineers, contractors, homeowners and business owners.
Support Posltlon(s): Pennlt Technlclan(s)
On an as needed basis, consultant shall provide PellTlit Technician(s) to assist the consultant's Lead Permit Technician, The services of the Permit Technician(s) shall be as required to meet maximum service timeframes, based on the current and future workload.
Duties shall include:
• Provide assistance at the building counter, accept plans, issue permits, provide information to the general public, calculate charges and fees, prepare statistic.al reports, coordinate with other City staff/Departments/Divisions and Orange County Fire Authority, maintain records and prepare documents for storage and/or imaging and maintain NPDES records for new construciion.
Qualifications:
• Two or more years of experience performing required technical building and safety support functions;
• High school diploma;
• ICC Certification as a Permit Technician highly desirable; • Experience with the use of an permit tracking software; • Solution-oriented customer service experience with a wide range of customers, including architects. engineers, contractors. homeowners, business owners and City staff.
Miscellaneous
The consultant shall be responsible to furnish all field personnel assigned to the City of Lake Forest with uniform shirts and jackets that identify each individual as an employee of the selected consulting firm working under contract to the City of Lake Forest. (BB&K2019)
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EXHIBIT "A-1~•
ACKNOWLEDGMENT OF EMPLOYMENT RELATIONSHIP
lnteiwest Consulting Group, Inc. ("lnterwest") provides cost-efficient staffing services for its public agency clients. One of lnterwest's clients is the City of Lake Forest ("City").
I nterwest and the City are parties to a Professional Consultant Services Agreement ("Agreement"), pursuant to which lnterwest provides a variety of services to the City as called for in the Agreement ("Services").
In connection with lnterwest's performance of the Agreement, It assigns its employees to provide the Services. Because lnteiwest has assigned you as one of its employees who will provide the Services, which may include working out of the City's offices or utiHzing the City's resources, it is important that you understand that you are an lnterwest employee, and not an employee of the City.
By signing below, you acknowledge and agree to the following:
• You are an employee of lnterwest. lnterwest will set your working days and hours, set your assignments (which may be with entities other than City), evaluate your performance, handle disciplinary matters, pay your wages, and provide any required or offered benefits.
• You are not an employee of the City. The City does not set your working days or hours, evaluate your performance, handle disciplinary matters, pay your wages, or provide any benefits of any kind.
• By providing the Services on behalf of lnterwest, neither you or the City intend to create an employment relationship as between you and the City. • The City may provide general instructions to you regarding the results or objectives it wants achieved in connection with the Services. However, only lnterwest may instruct you on the manner or means by which you provide such Services.
• If you believe the City is attempting to control the manner or means by which you provide the Services, or otherwise exercise control over you beyond the setting of objectives, goals or deadlines, you must immediately notify lnterwest.
Signature: _________ _
Print ------------
Date: -------
ATTACHMENT 1
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EXHIB'.IT "'B"
SCHEDULE OF SERVICES
MAXIMUM SERVICE DELIVERY TIMEFRAMES:
The consultant shall be responsible for managing its personnel levels based on the level of development activity within the City, as necessary to ensure that the following timeframes are met or exceeded at all times:
Service rnmeframe for delivery
Major plan check: 12 weeks (10 working days}
Subsequent plan check-s:-----+1-week {5 working days) •• Mino·r plan checks and single-story
homeowner additions:
Building inspection:
Water Quality Inspections:
3 days if submitted into plan dieck orover t�
counter
The following working day if request is received
before 5 PM
As required by NPbES Pe.rmit ------··-·
WaterOuaTiiy Annual Reporting:-- �s required by NPDES Pem,it Maintenance of NPDES Site Inventory: �s required by NPDES Permit _ ___ ---- Permit assistance at the public counter: !Average within 10 minutes of customer arrival Return of telephone calls and e-mails: Within 24 hours
'�Xonthly statistical acoounting and-··-. -Completed at-th_e_e-nd-. of each month preparation of plans for imaging:
(BB&K2019)
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EXHIBIT "C"
COMPENSATION
Consult.ant shall be paid for services rendered in accordance with Section 3.3 of the Agreement and as described above under Exhibit "A" Scope of Services the not-to-exceed fee of three million six hundred thousand dollar ($3,600,000). The not-to-exceed fee shall be equal to 52% of the monthly combined plan review and inspection fees collected by the Building and Safety Division.
This fee includes the as needed services provided by the Stormwater Compliance Manager and Stormwater Compliance Inspector. Any specialized Services that exceed the scope of services will be billed at the hourly rates shown below. No extra services will be billed by Consultant without prior authorization by the City.
Certified Classification H~~rl,l R~t_e!_ -• -- --· Deputy Building Official 125 Building Official 145
Permit Technician 70
ICC Certified Plans Examiner 105 ---Plan Check Engineer 135 ICC Certified BuiidinQ Inspector 70 to 95
CASp Specialist 115
Stormwater Comoliai:i~ -~anager 135 - - 110 Stormwater Compliance Inspector In the event that this Agreement is renewed pursuant to Section 3.1.2, the rates set forth above may be increased or reduced each year at the time of renewal, but any increase shall not exceed the Consumer Price Index, All Urban Consumers, Los Angeles-Long Beach-Anaheim. (BB&K 2017)
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E,chlbll "C"-1
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EXHIBIT "0"
INSURANCE REQUIREMENTS
3.2.11 Insurance.
3.2.11.1 Time for Compliance. Consultant shall not commence work under this Agreement until it has provided evidence satisfactory to the City that it has secured all insurance required under this section. In addition, Consultant shall not allow any subconsultant to commence work on any subcontract until it has provided evidence satisfactory to the City that the suboonsultant has secured all insurance required under thls section.
3.2.11.2 Types of Insurance Required. As a condition precedent to the effectiveness of this Agreement for work to be perfonned hereunder, and without limiting the indemnity provisions of the Agreement, the Consultant, in partial performance of its obligations under such Agreement, shall procure and maintain in full force and effect during the tern, of the Agreement the following policies of insurance. If the existing policies do not meet the insurance requirements set forth herein, Consultant agrees to amend, supplement or endorse the policies todo so.
(A) Commercial Ge,neral Liability: Commercial General Liability Insurance which affords coverage at least as broad as Insurance Services Office "occurrence" form CG 0001, or the exact equivalent, with limits of not less than $1,000,000 per occurrence and no less than $2,000,000 ,in the general aggregate. Defense costs shall be paid in addition to the limits. The policy shall contain no endorsements or provisions ( 1 ) limiting coverage for contractual liability; (2) excluding coverage for claims or suits by one insured against another (cross-liability}; or (3) containing any other exclusion(s) contrary to the terms or purposes of this Agreement. (B} Automobile LiabiHty Insurance: Automobile Liability Insurance vilith coverage at least as broad as Insurance Services Office Form CA 0001 covering "Any Auto• (Symbol 1 ), or the exact equivalent. covering bodily injury and property damage for all activities with limits of not less than $1,000,000 combined limit for each occurrence. (C) Workers' Compensation: Workers' Compensation
Insurance, as required by the State of California and Employer's Liability Insurance witti a limit of not less than $1,000,000 per accident for bodily injury and disease. (D) Professional liability (Errors & Omissions): Professional Liability insurance or Errors & Omissions insurance appropriate to Consultant's profession with limits of not less than $1,000,000. Covered professional servlces shall specifically include all work to be performed under the Agreement and delete any exclusions that may potentially affect the work to be performed (for example, any exclusions relating to lead, asbestos, pollution,. testing. underground storage tanks, laboratory analysis, soil work, etc.). If coverage is written on a claims-made basis, the retroactive date shall precede the effectlve date of the initial Agreement and continuous coverage will be maintained or an extended reporting period will be exercised for a period of at least three (3) years from termination or e~iration of this Agreement.
3.2.11.3 Insurance Endorsements. Required insurance policies shall contain the following provisions. or Consultant shall provide endorsements on forms approved by the City to add the following provisions to the insi.rance policies:
(BB&K2019)
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(A) Commercial General Liability:
Exhibit "D" -1
ATTACHMENT 1
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(1) Additional Insured: The City, its officials. officers, employees, agents, and volunteers shall be additional insureds with regard to liability and defense of suits or claims arising out of the performance of the Agreement.
Additional Insured Endorsements shall not (1) be
restricted to "ongoing operations"; (2) exclude "contractual liability-; (3) restrict coverage to "sole" liability of Consultant; or (4) contain any other exclusions contrary to the tenns or purposes of this Agreement. For all policies of Commercial General Liability insuranoe. Consultant shall provide endorsements in the form of ISO CG 20 10 10 01 and 20 37 10 01 (or endorsements providing the exact same coverage) to effectuate this requirement. (2l Cancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City except ten (10) days shall be allowed for non-payment of premium. (8) Automobile Liability:
(C) Cancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City except ten (10) days shall be aHowed for non-payment of premium.
3.2.11.4 Professional Liability (Errors & Omissions):
(A) Cancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City except ten (10) days shall be allowed for non-payment of premium. (8) Contraotual 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.
3.2.11.5 Workers• Compensation:
(A) Cancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City except ten (10) days shall be allowed for non-payment of premium. (B) Waiver of Subrogation: A waiver of subrogation stating that the insurer waives all rights of subrogation against the Oty, its officials, officers, employees. agents, and volunteers.
3.2.11.6 Primary and Non-Contributing Insurance. All policies of Commercial General Liability and Automobile Liability insurance shall be primary and any other insurance, deductible, or self-insuranoe maintained by the City, as officr.als, officers, employees, agents, or volunteers shall not contribute with this primary insurance. Policies shall contain or be endorsed to contain such provisions.
3.2.11.7 Waiver of Subrogation. All policies of Commercial General Liabflity 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 these specifications to (BB&K2019)
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waive their right of recovery prior to a loss. Consultant hereby waives its own right of recovery against the City, ilS officials, officers, employees, agents, and volunteers, and shall require similar written express waivers and insurance clauses from each of its subconsultants.
3.2.11.8 Deductibles and Self •Insured Retentions. Any deductible or self insured retention must be approved in writing by the City and shall protect the City, its officials, officers, employees, agents, and volunteers in the same manner and to the same extent as they v.iould have been protected had the policy or policies not contained a deductible or self-insured retention.
3.2.11.9 Evldence of Insurance. The Consultant, ooncurrentJy with the execution of the Agreement, and as a condition precedent to the effectiveness thereof, shall deliver either certified copies of the required policies, or original certificates on forms approved by the City, together with all endorsements affecting each policy. Required insurance policies shall not be in compliance if they include any limiting provision or endorsement that has not been submitted to tne City for approval. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that Insurer to bind coverage on its behalf. At least fifteen (15 days) prior to the expiration of any such policy, evidence of insurance showing that such insurance coverage has been renewed or extended shall be filed with the City. If such coverage is cancelled or reduced and not replaced immediately so as to avoid a lapse in the required coverage, Consultant shall, within ten {10) days after receipt of written riotice of such cancellation or reduction of coverage, file with the City evidence of insurance showlng that the required insurance has been reinstated or has been provided tnrough another insurance company or companies.
3.2.11.1 O Fa;ture to Maintain Coverage. In the event any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced immediately so as to avoid a lapse in the required coverage, City has the right but not the duty to obtain the insurance it deems necessary and any premium paid by City wlli be promptly reimbursed by Consultant or City will withhold amounts sufficient to pay premium from Consultant payments. In the alternative, City may cancel this Agreement effective upon notice.
3.2.11.11 Acceptabflity of Insurers. Each such policy shaill be from a company or companies with a current A.M. Best's rating of no less than A:VII and authorized to transact business of insurance ,In the State of California, or otherwise allowed to place insurance through surplus line brokers under applicable provisions of the California Insurance Code or any federal law.
3.2.11.12 Enforcement of Agreement Provisions (non estoppel).
Consultant acknowledg;es and agrees that actual or alleged failure on the part of the City to inform Consultant of non-compliance with any requirement imposes no additional obligation on the City nor does it waive any rights hereunder.
3.2.11.13 Requirements Not Limiting. Requirement of specific coverage or minimum limits contained in this Appendix are not intended as a limitation on coverage, limits, or other requirement, or a waiver of any coverage nonnally provided by any insurance.
3.2.11.14 Insurance for Subconsultants. Consultant shall include all subconsultants engaged in any work for Consultant relating to this Agreement as additional insureds under the Consultant's policies, or the Consultant shall be responsible for causing (BB&K2019)
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ATTACHMENT 1
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subconsultants to purchase the appropriate insurance in compliance with the terms of these Insurance Requirements, including adding the City, its officials, officers, employees, agents, and volunteers as additional insureds to the suboonsultant's policies. All policies of Commercial General Liability insurance provided by Consultant's subconsultants performing work relating to this Agreement shall be endorsed to name the City, its officials, officers, employees, agents and volunteers as additional insureds using endorsement form ISO CG 20 38 04 13 or an endorsement providing equivalent coverage. Consultant shall not allow any subconsultant to commence work on any subcontract relating to this Agreement until it has received satisfactory evidence of subconsultant's compliance with all insurance requirements under thf s Agreement, to the extent applicable. The Consultant shall provide satisfactory evidence of compliance with this section upon request of the City.
(BB&K2019)
55136.00200\31918793.1
Exhibit ·o· -4
ATTACHMENT 1
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AT TACHMENT 2
ATTACHMENT 2
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55136.00200\31919338.1 - 1 -
CITY OF LAKE FOREST
FIRST AMENDMENT TO
AGREEMENT FOR PROFESSIONAL CONSULTANT SERVICES
PARTIES AND DATE.
This First Amendment to the Agreement for Professional Consultant Services (“ First Amendment”) is entered into on the day of , ,by and between the City of Lake Forest, a municipal corporation, organized under the laws of the State of California, with its principal place of business at 100 Civic Center Drive, Lake Forest, CA 92630 (“City”) and Interwest Consulting Group, Inc., a California corporation, with its principal place of business at 1 Jenner, Suite 160, Irvine, CA 92618 ("Consultant"). City and Consultant are sometimes individually referred to herein as "Party" and collectively as "Parties."
RECITALS.
2.1 Agreement. The Parties entered into that certain Agreement for Building and Safety Consulting Services dated March 25, 2021 (“Agreement”).
2.2 First Amendment. The Parties now desire to am end the Agreement in order to increase the total amount of compensation under the Agreement.
TERMS.
3.1 Compensation. Section 3.3.1 of the Agreement is hereby amended in its entirety to read as follows:
Consultant shall receive compensation, including authorized reimbursements, for all Services rendered under this Agreement at the rates set forth in Exhibit “C” attached hereto and incorporated herein by reference. The total compensation shall not exceed FIVE
MILLION EIGHT HUNDRE D FORTY THOUSAND DOL LARS
($5,840,000) without written approval of the City Council or City Manager as applicable. Extra Work may be authorized, as described below, and if authorized, will be compensated at the rates and manner set forth in this Agreement.
3.2 Remaining Provisions of Agreement. Except as otherwise specifically set forth in this First Amendment, the remaining provisions of the Agreement shall remain in full force and effect.
DocuSign Envelope ID: 11346FCF-68E7-492D-BBCA-93418A089325 2023
January5th
ATTACHMENT 2
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55136.00200\31919338.1 - 2 -
CITY OF LAKE FOREST INTERWEST CONSULTING GROUP, INC.
By:
Robert Pequeno
Mayor
By:
Chris Giordano
President
[If Corporation, TWO SIGNATURES,
President OR Vice President AND Secretary
OR Treasurer REQUIRED]
ATTEST:
By:
Lisa Berglund
City Clerk
By:
David Kniff
Assistant Secretary
APPROVED AS TO FORM:
By:
Best Best & Krieger LLP
City Attorney
DocuSign Envelope ID: 11346FCF-68E7-492D-BBCA-93418A089325 ATTACHMENT 2
Item: 11
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55136.00200\31919338.1 Attachment “1”-1
ATTACHMENT “1” TO FIRST AMENDMENT TO
AGREEMENT FOR PROFESSIONAL CONSULTANT SERVICES
EXHIBIT “C”
COMPENSATION
Consultant shall be paid for services rendered in accordance with Section 3.3 of the Agreement and as described above under Exhibit “A” Scope of Services the not-to-exceed fee of five million eight hundred forty thousand dollars ($5,840,000). The not-to-exceed fee shall be equal to 52% of the monthly combined plan review and inspection fees collected by the Building and Safety Division. This fee includes the as needed services provided by the Stormwater Compliance Manager and Stormwater Compliance Inspector. Any specialized Services that exceed the scope of services will be billed at the hourly rates shown below. No extra services will be billed by Consultant without prior authorization by the City.
Certified Classification Hourly Rates
*Deputy Building Official 125
*Building Official 145
*Permit Technician 70
*ICC Certified Plans Examiner 105
*Plan Check Engineer 135
*ICC Certified Building Inspector 70 to 95
*CASp Specialist 115
*Stormwater Compliance Manager 135
*Stormwater Compliance Inspector 110
*Overtime will be billed at 1.5 times the regular rate as authorized by the City.
In the event that this Agreement is renewed pursuant to Section 3.1.2, the rates set forth above may be increased or reduced each year at the time of renewal, but any increase shall not exceed the Consumer Price Index, All Urban Consumers, Los Angeles-Long Beach-Anaheim.
DocuSign Envelope ID: 11346FCF-68E7-492D-BBCA-93418A089325 ATTACHMENT 2
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ATTACHMENT 3
ATTACHMENT 3
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BUILDING AND SAFETY CONSULTING SERVICES
City of Lake Forest
100 Civic Center Dr.
Lake Forest, CA 92630
DocuSign Envelope ID: C27E8CC8-0D16-4E5D-9F28-EA5A24977D4D ATTACHMENT 3
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City of Lake Forest
undefined
Building and Safety Consulting Services
I. PARTIES AND DATE. ................................ ................................ ..............
II. RECITALS. ................................ ................................ ..............................
III. TERMS................................. ................................ ................................ ..
IV. SIGNATURES. ................................ ................................ ........................
V. EXHIBIT "C" - COMPENSATION ................................ ..............................
DocuSign Envelope ID: C27E8CC8-0D16-4E5D-9F28-EA5A24977D4D ATTACHMENT 3
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Title: Building and Safety Consulting Services
3 1. PARTIES AND DATE.
This Agreement is made and entered into this [***INSERT DAY***] day of [***INSERT MONTH***], [***INSERT YEAR***], by and between the City of Lake Forest, a municipal corporation, organized under the laws of the State of California, with its principal place of business at 100 Civic Center Drive, Lake Forest, California 92630 (“City”) and Interwest Consulting Group, Inc., a California Corporation (Inc.) , with its principal place of business at 1 Jenner, Suite 160, Irvine, CA 92618 (“Consultant”). City and Consultant are sometimes individually referred to herein as “Party” and collectively as “Parties.” DocuSign Envelope ID: C27E8CC8-0D16-4E5D-9F28-EA5A24977D4D ATTACHMENT 3
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Title: Building and Safety Consulting Services
4 2. RECITALS.
2.1. Agreement
The Parties entered into that certain Agreement for Building and Safety Consulting Services dated May 1, 2021 (“Agreement”).
2.2. First Amendment
The Parties entered into that certain First Amendment to the Agreement dated January 5, 2023 ("First Amendment").
2.3. Second Amendment
The Parties now desire to amend the Agreement in order to extend the term of the Agreement, increase the total amount of compensation under the Agreement, update the rates of compensation under the Agreement, update vendor information under this Agreement, and update the Delivery of Notices.
DocuSign Envelope ID: C27E8CC8-0D16-4E5D-9F28-EA5A24977D4D ATTACHMENT 3
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Title: Building and Safety Consulting Services
5 3. TERMS.
3.1. Term.
Section 3.1.2 of the Agreement is hereby amended in its entirety to read as follows:
The term of this Agreement shall be from May 1, 2021 to April 30, 2025, unless earlier terminated as provided herein. The City shall have the unilateral option, at its sole discretion, to renew this Agreement annually for no more than one (1) additional one-year terms. Consultant shall complete the Services within the term of this Agreement, and shall meet any other established schedules and deadlines.
3.2. Compensation.
Section 3.3.1 of the Agreement is hereby amended in its entirety to read as follows:
Consultant shall receive compensation, including authorized reimbursements, for all Services rendered under this Agreement at the rates set forth in Exhibit “C” attached hereto and incorporated herein by reference. The total compensation shall not exceed SIX MILLION THREE HUNDRED THOUSAND FORTY DOLLARS ($6,340,000) without written approval of the City Council or City Manager as applicable. Extra Work may be authorized, as described below, and if authorized, will be compensate d at the rates and manner set forth in this Agreement.
3.3. Delivery of Notices.
Section 3.6.1.4 of the Agreement is hereby amended as follows:
Consultant: Interwest Consulting Group, Inc.
1 Jenner, Suite 160, Irvine, CA 92618
ATTN: Shelby Sieracki, Senior Account Manager
3.4. Rates of Compensation.
Exhibit "C" of the Agreement is hereby amended in its entirety and to include the rates set forth in Attachment 1 to this Amendment.
3.5. Substitution of Key Personnel
Section 3.2.4 of the Agreement is hereby amended as follows:
Consultant has represented to City that certain key personnel will perform and coordinate the Services under this Agreement. Should one or more of such personnel become unavailable, Consultant may substitute other personnel of at least equal competence upon written approval of City. In the event that City and Consultant cannot agree as to the substitution of key personnel, City shall be entitled to terminate this Agreement for cause. As DocuSign Envelope ID: C27E8CC8-0D16-4E5D-9F28-EA5A24977D4D ATTACHMENT 3
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Title: Building and Safety Consulting Services
6 discussed below, any personnel who fail or refuse to perform the Services in a manner acceptable to the City, or who are determined by the City to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project or a threat to the safety of persons or property, shall be promptly removed from the Project by the Consultant at the request of the City. The key personnel for performance of this Agreement are as follows:
Faye Yuan, Building Official and Yasaman Houshyar, Deputy Building Official
3.6. Consultant's Representative
Section 3.2.6 of the Agreement is hereby amended as follows:
Consultant hereby designates Shelby Sieracki, Senior Account Manager, or his/her designee, to act as its representative for the performance of this Agreement ("Consultant's Representative"). Consultant's Representative shall have full authority to represent and act on behalf of the Consultant for all purposes under this Agreement. The Consultant's Representative shall supervise and direct the Services, using his/her best skill and attention, and shall be responsible for all means, methods, techniques, sequences, and procedures and for the satisfactory coordination of all portions of the Services under this Agreement.
3.7. Remaining Provisions of Agreement.
Except as otherwise specifically set forth in this Second Amendment, the remaining provisions of the Agreement shall remain in full force and effect.
DocuSign Envelope ID: C27E8CC8-0D16-4E5D-9F28-EA5A24977D4D ATTACHMENT 3
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Title: Building and Safety Consulting Services
7 4. SIGNATURES.
4.1. SIGNATURES.
CITY OF LAKE FOREST Interwest Consulting Group, Inc.
By: [AUTHORIZED CITY SIGNATURE]
Mark Tettemer
Mayor
By: [VENDOR SIGNATURE 1]
Chris Giordano
President
[If Corporation, TWO SIGNATURES,
President OR Vice President AND Secretary
OR Treasurer REQUIRED]
ATTEST:
By: [CITY CLERK SIGNATURE]
Lisa Berglund
City Clerk
By: [VENDOR SIGNATURE 2]
David Kniff
Assistant Secretary (Corporation or LLC)
APPROVED AS TO FORM:
By: [CITY ATTORNEY SIGNATURE]
Best Best & Krieger LLP
City Attorney
[CONTRACT ADMINISTRATOR APPROVAL]
[PROJECT MANAGER APPROVAL]
[CITY CLERK - INSURANCE APPROVAL]
DocuSign Envelope ID: C27E8CC8-0D16-4E5D-9F28-EA5A24977D4D ATTACHMENT 3
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Title: Building and Safety Consulting Services
8 5. EXHIBIT "C" - COMPENSATION
5.1. EXHIBIT "C" - COMPENSATION
Consultant shall be paid for services in accordance with Section 3.3 of the Agreement and as described above under Exhibit “A” Scope of Services and the not to exceed fee of SIX MILLION TH REE HUNDRED THOUSAND FORTY DOLLARS ($6,340,000). The not -to-exceed fee shall be equal to 52% of the monthly combined plan review and inspection fees collected by the Building and Safety Division. This fee includes the as needed services provided by the Sto rmwater Compliance Manager and Stormwater Compliance Inspector. Any specialized Services that exceed the scope of services will be billed at the hourly rates shown below. No extra services will be billed by Consultant without prior authorization by the Cit y.
Compensation shall be paid per the following schedule and terms.
Certified Classification Hourly Rates
*Deputy Building Official 135
*Building Official 155
*Permit Technician 75
*ICC Certified Plans Examiner 115
*Plan Check Engineer 145
*ICC Certified Building Inspector 105-115
*CASp Specialist 125
*Stormwater Compliance Manager 145
*Stormwater Compliance Inspector 125
*Overtime will be billed at 1.5 times the regular rate as authorized by the City when requested and funded by an applicant.
In the event that this Agreement is renewed pursuant to Section 3.1.2, the rates set forth above may be increased or reduced each year at the time of renewal, but any increase shall not exceed the Consumer Price Index, All Urban Consumers, Los Angeles-Long Beach-Anaheim.
Applicant Refunds
The City and Interwest have developed a process in which applicant refunds are properly accounted for when calculating revenue from permit issuance, plan check fees, and inspection services. Every month, check requests are submitted for applicant refunds. The processed monthly requests are then compiled and broken down to calculate Interwest’s share which includes 52% of the refundable portion of the above-listed fees, which are then reduced from the City’s next invoice.
DocuSign Envelope ID: C27E8CC8-0D16-4E5D-9F28-EA5A24977D4D ATTACHMENT 3
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CITY COUNCIL AGENDA REPORT
MEETING DATE: 2/6/2024
DEPARTMENT: Public Works
SUBJECT:
ACCEPTANCE OF PORTOLA CENTER IMPROVEMENTS AND RELEASE OF BONDS FOR TRACT 18096
RECOMMENDED ACTION(S):
1. Accept as complete the tract improvements and monumentation constructed by Portola Senior Housing Associates, LP for Tract 18096.
2. Authorize the City Clerk to release the Subdivision Faithful Performance and Subdivision Labor and Materials Bonds, both in the amount $576,068 and the Subdivision Improvement Monumentation Bond in the amount of $750.
3. Authorize the City Clerk to release the Subdivision Improvement Warranty Bond in the amount of $57,606.90 one year after acceptance of the public improvements for Tract 18096 with concurrence of the Director of Public Works/City Engineer.
EXECUTIVE SUMMARY:
On December 4, 2018, the City Council approved Final Tract Map No. 18096 (Attachment 1) for a 1-numbered and 1-lettered lot subdivision, and a Subdivision Improvement Agreement with SRC-PH Investments, LLC, a Delaware Limited Liability Company (“Baldwin”). These approvals enabled Baldwin to construct a mixed-use development consisting of senior residential apartments and commercial/retail spaces on the one numbered lot. The lettered lot is for open space and landscaping that would be maintained by the Homeowner’s Association (“HOA”) set up for this specific property.
In accordance with the agreement, Baldwin submitted Subdivision Improvement Faithful Performance Bonds and Subdivision Improvement Labor and Materials Bonds, both totaling $576,068 to guarantee construction of the tract improvements. These improvements include the parking lots for the apartments and commercial/retail spaces; curb and gutter, sidewalk, storm drain, on-site lighting, and ADA improvements; and the common open space improvements. All improvements are private and will be maintained by the HOA. Baldwin also Item: 12
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submitted a Subdivision Improvement Monumentation Bond in the amount of $750 to establish monuments for the tract. Lastly, Baldwin submitted a Subdivision Improvement Warranty Bond in the amount of $57,606.90 to guarantee repair or replacement of the tract improvements for defective work for a one-year period after acceptance of the improvements.
Subsequent to the entitlement approvals, Baldwin sold the development rights to the project to Portola Senior Housing Associates, LP (“PSHA”). PSHA was the entity that constructed the improvements including the senior housing complex and civil engineering improvements. The bond obligations remained with Baldwin.
On October 9, 2023, the City received a letter from Baldwin requesting release of bonds associated with the tract improvements and monumentation for Tract 18096 (Attachment 2). Staff determined the tract improvements now comply with the approved plans and are completed to the satisfaction of the Public Works Department. The HOA will maintain all tract improvements. Baldwin’s engineer, Hunsaker & Associates, provided a letter (Attachment 3) stating that all survey monuments required by Tract 18096 were set and that they were paid for the work.
Staff recommends the City Council accept the completed improvements and monumentation for Tract 18096 and authorize the release of the Subdivision Improvement Faithful Performance, Subdivision Improvement Labor and Materials, and Subdivision Improvement Monumentation Bonds. Staff also recommends the City Council authorize the City Clerk to release the Subdivision Improvement Warranty Bond one year after acceptance of the improvements with the concurrence of the Director of Public Works/City Engineer.
FISCAL IMPACT:
There is minimal fiscal impact to the City as all improvements will be maintained by the HOA.
ATTACHMENTS:
1. Tract Map for Approved Tract 18096
2. Letter from Lennar Homes
3. Letter from Hunsaker & Associates
Initiated By: Doug A. Erdman, P.E., Assistant City Engineer Submitted By: Thomas E. Wheeler, P.E., Director of Public Works/City Engineer Approved By: Debra Rose, City Manager
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CITY COUNCIL AGENDA REPORT
MEETING DATE: 2/6/2024
DEPARTMENT: Public Works
SUBJECT:
AWARD CONSTRUCTION CONTRACT FOR TRABUCO ROAD & LAKE
FOREST DRIVE REHABILITATION, ASCENSION MEDIAN IMPROVEMENTS, TRABUCO TRAIL REHABILITATION (PW 24S03, PW 23S05A and PW 24P16) RECOMMENDED ACTION(S):
1. Approve contract documents for construction of Trabuco Road and Lake Forest Drive Rehabilitation (PW 23S05A), Ascension Median Improvements (PW 24S03) and Trabuco Trail Rehabilitation (PW24P16).
2. Adopt a Resolution entitled: A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF LAKE FOREST, CALIFORNIA, AMENDING THE
2023-2030 CAPITAL IMPROVEMENT PLAN; AMENDING
APPROPRIATIONS FOR FISCAL YEAR 2023-24
3. Award a contract in the amount of $4,668,668 to All American Asphalt, Inc.
4. Reject all other bids received and authorize return of the bid bonds upon receipt of the executed contract documents from All American Asphalt, Inc.
5. Authorize the Mayor to sign, and the City Clerk to attest the contract with All American Asphalt, Inc.
EXECUTIVE SUMMARY:
This project would resurface Trabuco Road from Bake Parkway to Peachwood and Lake Forest Drive from Bake Parkway to Portola Parkway. In addition, this project would construct improvements to the median on Trabuco Road at the entrance to Ascension Cemetery and resurface the asphalt trail that runs adjacent to Trabuco Road from Paseo Sombra to Peachwood. This project improves two of the City’s lower Pavement Condition Index (“PCI”) scoring arterials and helps the City maintain an overall PCI rating of “Good”.
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On December 20, 2023, the City received bids from six (6) firms, ranging from $4,668,668.00 to $5,694,981.25. The apparent low bidder is All American Asphalt (“AAA”). The total project cost to construct, inspect, provide construction support, and provide contingency for the project is estimated to be $4,850,000.
This project would be funded by the Measure M2 Fairshare (“M2”) and Road Maintenance Rehabilitation Account (“SB1”) Funds as well as General Fund for Trabuco Trail Rehabilitation. The engineer’s estimate for this project was $4,250,000. The attached proposed budget resolution would reallocate funds from the following funding sources, General Fund (Capital), Infrastructure Reserve, Measure M2 Local Fair Share, and Road Maintenance Rehab Account ("RMRA SB1").
Staff recommends the City Council award the proposed Construction Contract to All American Asphalt (“Contract”), which includes a compensation amount of $4,668,668.00, and approve the proposed budget amendment to ensure there is sufficient funding for the project. The Finance Department prepared the proposed Construction Contract with AAA, and the City Attorney has reviewed and approved the Contract as to form.
BACKGROUND:
The City has an established annual street maintenance program for the slurry seal and asphalt overlay of public streets. As a requirement of OCTA’s Measure M funding, the City has an established annual street maintenance program for the slurry seal and asphalt overlay of public streets and utilizes a pavement management system to evaluate and score the condition of each street biannually utilizing a Pavement Condition Index (“PCI”). The pavement management system provides recommendations to maintain a street’s condition based on the PCI rating. The overall PCI for the entire City is 77, which is a “Good” rating.
This project would resurface Trabuco Road from Bake Parkway to Peachwood and Lake Forest Drive from Bake Parkway to Portola Parkway. In addition, the project will construct the Ascension Median Improvements and the Trabuco Asphalt Trail Rehabilitation.
DISCUSSION:
The Trabuco Road and Lake Forest Drive Resurfacing project improves two of the City’s lower PCI scoring roadways and helps maintain an overall PCI rating of “Good”, in conformance with SP#6 of the City’s Strategic Plan Initiatives. This resurfacing project will perform localized asphalt repairs prior to grinding and Item: 13
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resurfacing Trabuco Road from Bake Parkway to Peachwood and Lake Forest Drive from Bake Parkway to Portola Parkway. This project would use approximately 11,500 tons of asphalt pavement and would remove and replace approximately 535,000 square feet of damaged pavement structural section.
This project would also replace all existing traffic striping, markings, and legends on Trabuco Road from Bake to Peachwood. The new striping will include enhanced bike lane treatments that provide more separation from the motoring public, may improve awareness of bicyclists in the roadway at conflict zones, would provide direct connectivity to off-street trails and neighboring communities, enhance safety, and may reduce the risk of accidents and/or collisions.
This project will also construct the two projects listed in SP#9 of the City’s Strategic Plan for the Trabuco Road Improvements. The Ascension Median Improvements modify an existing median on Trabuco Road to create an acceleration lane for cars exiting Ascension Cemetery. The Trabuco Asphalt Trail Rehabilitation component resurfaces the existing asphalt trail running parallel to Trabuco Road from Peachwood to Paseo Sombra.
On December 20, 2023, the City received bids from six (6) firms, ranging from $4,668,668 to $5,694,981.25. The engineer’s estimate provided for the project was $4,250,000. After opening bids, the total project cost to construct, inspect, provide construction support, and provide contingency for the project is estimated to cost $4,850,000. Staff reviewed AAA’s bid package for completeness. In addition, the electronic bidding system the City utilizes eliminates mathematical errors in the bids, therefore the submitted bid results are as follows:
Table 1: Bid Results
Contracting
Firm
OpenGov
Verified
subtotal for
Trabuco Road
and Lake
Forest Drive
OpenGov
Verified
subtotal for
Ascension
Median
OpenGov
Verified
subtotal for
Trabuco
Trail
OpenGov
Verified
Total Base
Bid Amounts
All American
Asphalt $4,212,933.00 $182,225.00 $293,530.00 $4,668,668.00 Hardy & Harper,
Inc. $4,266,780.50 $386,664.00 $400,500.00 $5,053,944.50 R.J. Noble
Company $4,896,781.70 $304,792.00 $280,330.00 $5,481,903.70 Onyx Paving
Company $5,106,100.00 $222,000.00 $226,900.00 $5,555,000.00 Item: 13
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Contracting
Firm
OpenGov
Verified
subtotal for
Trabuco Road
and Lake
Forest Drive
OpenGov
Verified
subtotal for
Ascension
Median
OpenGov
Verified
subtotal for
Trabuco
Trail
OpenGov
Verified
Total Base
Bid Amounts
PALP Inc. DBA
Excel Paving
Company
$4,967,352.75 $236,560.00 $445,700.00 $5,649,612.75
I E General
Engineering, Inc. $5,014,701.25 $308,330.00 $371,950.00 $5,694,981.25 Following the analysis of the bids received, staff determined that All American Asphalt was the lowest responsive, responsible bidder for this project. Recently, AAA completed projects in the cities of Burbank, Newport Beach, and Fullerton.
In addition, AAA recently completed the Glenn Ranch Road resurfacing in Lake Forest. Staff conducted a reference check that indicated AAA is a responsible contractor (Attachment 2).
Upon approval of the award of the contract, staff anticipates construction would begin in mid-April 2024. The construction contract specifies 80 working days with the work anticipated to be completed in August 2024.
The Finance Department prepared the proposed Construction Contract with AAA, which AAA subsequently signed (Attachment 3). The City Attorney reviewed and approved the contract as to form. The contract bid amount as determined by the estimated quantities is $4,668,668. Per Lake Forest Municipal Code Section 3.13.085, the City Manager may approve additional work not-to- exceed 10% of the final contract amount ($466,866.80).
The total cost to construct, inspect, provide construction support, and provide contingency is estimated to be approximately $4,850,000 for the project. The attached budget resolution would allocate additional Measure M2 Local Fair Share (“M2”) funds and Road Maintenance Rehab Account ("RMRA SB1") funds for the FY23-24 Street Resurfacing and Slurry Seal (“SRSS”) program (Attachment 4). The SRSS program includes three projects: the Slurry Seal Zone A project (currently under construction), the Trabuco Road Resurfacing Project, and the Slurry Seal Zone D project, scheduled to be advertised in the spring of 2024. This budget adjustment reallocates funds in preparation for construction of all three SRSS projects. In addition, the resolution reallocates M2 funding to be used in lieu of the general fund funding for the Ascension Cemetery Median improvements. Approval of Resolution 2024-XX would increase project funding to provide sufficient funding for the anticipated total project costs.
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The contract plans and specifications are not attached to the agenda due to their size; however, they are available for review in the Office of the City Clerk and on the City’s digital bid advertising platform, OpenGov.com. Staff attached the approved signed title sheet for the Trabuco Resurfacing Project (Attachment 5).
FISCAL IMPACT:
Approving the recommended action would award a Construction Contract to All American Asphalt in the amount of $4,668,668 and allocate sufficient funding in the 2023-2030 Capital Improvement Plan. The total estimated project cost, including construction, inspection, construction support, and contingency is $4,850,000.
The attached proposed budget resolution would reallocate funds from the following funding sources, General Fund (Capital), M2 Fund, and RMRA SB1 Fund to provide additional funding needed for the Street Rehabilitation and Slurry Seal CIP Projects and the Trabuco Asphalt Trail. If adopted, the proposed budget resolution would increase funding for the 2023-2030 Capital Improvement Plan by $2,870,463 bringing total funding for the projects to a total of $8,200,463.
ATTACHMENTS:
1. Project Location Map
2. Contractor’s Reference Check
3. Proposed Construction Contract with All American Asphalt, Inc.
4. Signed Title Sheet
5. Proposed Budget Resolution
Initiated By: Douglas Erdman, Assistant City Engineer
Submitted By: Thomas E. Wheeler, P.E., Director of Public Works/City Engineer Approved By: Debra Rose, City Manager
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Attachment 1
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TRABUCO ROAD REHABILITATION, ASCENSION MEDIAN
IMPROVEMENTS, TRABUCO TRAIL REHABILITATION
LAKE FOREST DRIVE REHABILITATION
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Attachment 2
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TRABUCO ROAD & LAKE FOREST DRIVE REHABILITATION, ASCENSION MEDIAN IMPROVEMENTS, TRABUCO TRAIL REHABILITATION (PW 24S03, PW 23S05A and PW 24P16) Apparent Low Bidder: Contact #1: Contact #2: Contact #3:
All American Asphalt, Inc. City of Burbank City of Newport Beach City of Fullerton Name
Phone No.
E-mail
Artin Megerdichian
818-238-3942
Ben Davis Nick Esposito
714-738-6851949-644-3317
[email protected] [email protected] [email protected]
RESPONSEQUESTION RESPONSE RESPONSE
Local Residential Street Improvement
Project
E. Coast Hwy & Marguerite Avenue
Pavement Rehabilitation
Misc Rehab FY21-221. Title and type of project
2. Contract Amount $7,761,320
Jan 2022 - Oct 2022
October-22
Good
$3,363,056
Jan 2022 - Nov 2022
November-22
Very good
Very good
Very good
No
$704,080
3. Approximate duration June 2022 - Oct 2022
4. Actual or estimated project completion date
5. Quality of the work
October-22
Good
6. Similarity of the Project Good Good
7. Contractor’s relationship with agency representatives
8. Claims or stop notices
Good Very good
NoNo
9. Change order requests Yes, requested by City. Yes No
10. Agency’s desire to have contractor bid on future projects
11. Additional Comments
Yes Yes Yes
None None None
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Attachment 3
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TRABUCO ROAD REHABILITATION PROJECT
FROM BAKE PARKWAY TO PEACHWOOD
PW: 2023-05A
30 SECTION 00500
CONTRACT
SECTION 00500
CONTRACT
THIS CONTRACT is made this _____ day of _________, 2024, in the County of Orange, State of California, by and between the City of Lake Fores t hereinafter called City, and ______________________________, hereinafter called Contrac tor. City and the Contractor for the considerations stated herein agree as follows:
ARTICLE 1. SCOPE OF WORK. The Contractor shall perform all Work within the time stipulated the contract and shall provide all labor, materials, equipment, tools, utility services, and transportation to complete all of the Work required in strict c ompliance with the Contract Documents as specified in Article 5 below for the following Project:
Trabuco Road Rehabilitation Project from Bake Parkway to Peachwood, PW2023-05A Ascension Median Improvements PW 24S03,
Lake Forest Drive Rehabilitation Project from Bake Parkway to Portola Parkway PW 24P16.
The Contractor and its surety shall be liable to City for any damages arising as a result of the Contractor’s failure to comply with this obligation.
ARTICLE 2. TIME FOR COMPLETION. The Work shall be commenced on the date stated in City’s Notice to Proceed. The Contractor shall complete all Work required by the Contract Documents within 80 Working Days from the commencement date stated in the Notice to Proceed. By its signature hereunder, Contractor agrees the time for completion set forth above is adequate and reasonable to complete the Work.
ARTICLE 3. CONTRACT PRICE. City shall pay to the Contractor as full compensation for the performance of the Contract, subject to any additions or deductions as provided in the Contract Documents, and including all applicable taxes and costs, the sum of ____________________________________________________________ Dollars ($_________________________________). Payment shall be made as set forth in the General Conditions.
ARTICLE 4. LIQUIDATED DAMAGES. In accordance with Government Code section 53069.85, it is agreed that the Contractor will pay City the sum of $2,500 for each and every calendar day of delay beyond the time prescribed in the Contract Documents for finishing the Work, as Liquidated Damages and not as a penalty or forfeiture. In the event that Liquidated Damages are not paid, the Contractor agrees City may deduct that amount from any money due or that may become due the Contractor under the Contract. This Article does not affect the City’s rights to other damages or remedies spec ified in the Contract Documents or allowed by law.
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SECTION 00500
CONTRACT
TRABUCO ROAD REHABILITATION PROJECT
FROM BAKE PARKWAY TO PEACHWOOD
PW: 2023-05A
31 SECTION 00500
CONTRACT
ARTICLE 5. COMPONENT PARTS OF THE CONTRACT. The “Contract Documents” include the following:
Notice Inviting Bids
Instructions to Bidders
Bid Form
Contractor’s Certificate Regarding Workers’ Compensation Bid Bond
Designation of Subcontractors
Information Required of Bidders
Noncollusion Declaration form
Iran Contracting Act Certification
Public Works Contractor Registration Certification
Contract
Performance Bond
Payment Bond
General Conditions
Special Conditions
Technical Specifications
Addenda
Plans and Drawings
Approved and fully executed change orders
Any other documents contained in or incorporated into the Contract The Contactor shall complete the Work in strict accordance with all of the Contract Documents.
All of the Contract Documents are intended to be complementary. Work required by one of the Contract Documents and not by others shall be done as if required by all. This Contract shall supersede any prior agreement of the parties.
ARTICLE 6. PROVISIONS REQUIRED BY LAW. Each and every provision of law required to be included in these Contract Documents shall be deemed to be included in these Contract Documents. The Contractor shall comply with all requirements of applicable federal, state and local laws, rules and regulations, including, but not limited to, the provisions of the California Labor Code and California Public Contract Code which are applicable to this Project.
ARTICLE 7. INDEMNIFICATION. Contractor shall provide indemnification as set forth in the General Conditions.
ARTICLE 8. PREVAILING WAGES. Contractor shall be required to pay the prevailing rate of wages in accordance with the Labor Code which such rates shall be made available at City Hall or may be obtained online at http//www.dir.ca.gov/dlsr. and which must be posted at the job site.
IN WITNESS WHEREOF, this Contract has been duly executed by the above-named parties, on the day and year above written.
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SECTION 00500
CONTRACT
TRABUCO ROAD REHABILITATION PROJECT
FROM BAKE PARKWAY TO PEACHWOOD
PW: 2023-05A
32 SECTION 00500
CONTRACT
[NAME OF CONTRACTOR]
By
Name:
Title:
License No.
CIT
Y OF LAKE FOREST
By______________________________
By
Name:
Title:
(If Corporation, TWO SIGNATURES,
President OR Vice President AND Secretary
OR Treasurer REQUIRED)]
Attest:
Lisa Berglund
City Clerk
Approved as to Form:
__________________________________
Best Best & Krieger, LLP
City Attorney
END OF CONTRACT
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0 ATTACHMENT 4
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0 RESOLUTION NO. 2024-
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF LAKE FOREST, CALIFORNIA, AMENDING
THE 2023-2030 CAPITAL IMPROVEMENT PLAN;
AMENDING APPROPRIATIONS FOR FISCAL YEAR
2023-24
WHEREAS, the 2023-2030 Capital Improvement Plan was adopted by the City Council on June 20, 2023; and
WHEREAS, the appropriations for Fiscal Year 2023-24 were adopted by the City Council on June 20, 2023;
WHEREAS, modifications are now required as a result of changes during Fiscal Year 2023-24.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE
FOREST DOES HEREBY RESOLVE, DETERMINE, FIND AND ORDER AS FOLLOWS:
Section 1. The City Council’s adoption of this Resolution is not a project within the meaning of the California Environmental Quality Act. Specifically, the City’s adoption of the Resolution is an administrative and fiscal function of the City that does not commit the City to any specific project or course of action. (State CEQA Guidelines, sections 15378(b)(4) & (b)(5).) Thus, no environmental review of the Resolution is required. The City Council hereby directs staff to prepare, execute and file with the Orange County Clerk a Notice of Exemption within five working days of the adoption of this Resolution.
Section 2. General Fund (Capital), Measure M2 Local Fair Share, and Road Maintenance Rehab Account (RMRA “SB1”) are amended to increase their Capital Improvement Plan Appropriations for Fiscal Year 2023-24 as demonstrated in Exhibit A.
Section 3. The Director of Finance is hereby authorized to move appropriations between programs within program area budgets in concurrence with Department Directors.
Section 4. The City Manager is hereby authorized to transfer appropriations from one program area to another or between funds within the Operating Budget with notification to the City Council Audit Committee.
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0 Section 5. The City Manager is hereby authorized to transfer appropriations from a capital improvement project to another existing project within the adopted Capital Improvement Program with notification to the City Council Audit Committee.
Section 6. The City Clerk shall attest as to the adoption and execution of this Resolution and cause the same to be maintained in the permanent records of the City.
PASSED, APPROVED AND ADOPTED this 6th day of February 2024, by the following vote, to wit:
ATTEST:
MARK TETTEMER
MAYOR
LISA BERGLUND
CITY CLERK
APPROVED AS TO FORM:
MATTHEW RICHARDSON
CITY ATTORNEY
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0 STATE OF CALIFORNIA )
COUNTY OF ORANGE ) SS
CITY OF LAKE FOREST )
I, Lisa Berglund, City Clerk of the City of Lake Forest, California, do hereby certify that the foregoing Resolution No. 2024- was duly passed and adopted at a regular meeting of the Lake Forest City Council on the 6th day of February 2024, by the following vote, to wit:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
LISA BERGLUND
CITY CLERK
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0 EXHIBIT A
AMENDMENT TO THE 2023-2030
CAPITAL IMPROVEMENT PLAN,
AMENDMENT TO FISCAL YEAR
2023-24 APPROPRIATIONS
Capital Improvement Plan Appropriations
Funding Source Project
Current
Budget
Increase
(Decrease)
Amended
Budget
General Fund
(Capital)
Trabuco
Asphalt Trail
Rehabilitation
Project $300,000 $115,500 $415,500
General Fund
(Capital)
Trabuco Road
Ascension
Cemetery left
turn holding
pocket $350,000 $(350,000) -
Measure M2
Local Fair Share
Street
Resurfacing
and Slurry
Seal Projects $3,668,947 $2,026,016 $5,694,963
Road
Maintenance
Rehab Account
(RMRA “SB1”)
Street
Resurfacing
and Slurry
Seal Projects $1,011,053 $1,078,947 $2,090,000
Total $5,330,000 $2,870,463 $8,200,463
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Attachment 5
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CITY COUNCIL AGENDA REPORT
MEETING DATE: 2/6/2024
DEPARTMENT: Management Services
SUBJECT:
UPDATE FINES FOR PARKING VIOLATIONS
RECOMMENDED ACTION(S):
1. Conduct the noticed public hearing.
2. Adopt a Resolution entitled: A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF LAKE FOREST, CALIFORNIA, UPDATING FINES FOR PARKING VIOLATIONS.
EXECUTIVE SUMMARY:
On January 16, 2024, the City Council conducted the first reading of Ordinance No. 366 amending Chapter 12.16 of Title 12 of the Lake Forest Municipal Code (“LFMC”) to make changes related to the enforcement of street sweeping and permit parking restrictions (Attachment 1). On February 6, 2024, the City Council will have the opportunity to approve Ordinance No. 366 by commencing with the second reading. If implemented, Ordinance No. 366 would modify the Lake Forest Municipal Code to add specific penalties for parking a vehicle in violation of the City’s street sweeping or permit parking regulations. If approved tonight, these changes to add specific penalties in the LFMC would go into effect on March 7, 2024.
Currently, any vehicles parked in violation of an established street sweeping or permit parking-restricted areas receive $50 citations pursuant to the general “no stopping, no parking” code violation. Since Ordinance No. 366 would add specific citation categories for street sweeping and permit parking-related offenses, the City needs to assign citation amounts to those new categories.
The proposed resolution would implement a $50 citation fee for vehicles in violation of street sweeping or permit parking-related restrictions (Attachment 2).
The resolution also includes two late-fee penalties for late payment of the citation fee. These fees are the same amounts currently being charged for street sweeping and permit parking-related offenses. If approved, the fees established by the proposed resolution would go into effect immediately to be in place if the specific penalties for street sweeping and permit parking-related offenses are implemented through the adoption of Ordinance No. 366.
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Staff recommends the City Council adopt the resolution updating fines for parking violations. The resolution has been reviewed and approved as to form by the City Attorney’s Office.
FISCAL IMPACT:
There is no fiscal impact associated with the recommended action as the proposed fine amounts are identical to current parking fines issued by the Orange County Sheriff Department.
ATTACHMENTS:
1. Ordinance No. 366
2. Resolution Updating Fines for Parking Violations
Initiated By: Sharlyn De la Paz, Senior Management Analyst Submitted By: Sean McGovern, Deputy City Manager
Approved By: Debra Rose, City Manager
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ATTACHMENT 1
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ORDINANCE NO. 366
AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF LAKE FOREST, CALIFORNIA, AMENDING
CHAPTER 12.16 OF TITLE 12 OF THE LAKE FOREST
MUNICIPAL CODE, RELATING TO ENFORCEMENT
OF STREET SWEEPING AND PERMIT PARKING
RESTRICTIONS
WHEREAS, pursuant to Cal. Const. Art. XI, Sec. 7 and under the City’s general police powers, the City of Lake Forest (“City”) is empowered and charged with responsibility for the health, safety, and welfare of its citizens; and
WHEREAS, Vehicle Code Section 22507 authorizes the City to prohibit or restrict the stopping, parking, or standing of vehicles on certain streets or highways, or portions thereof, during all or certain hours of the day; and WHEREAS, consistent with this authority, the City Council established a Street Sweeping Parking Restriction Policy (“Street Sweeping Policy”), most recently updated in February 2022, to evaluate the merits of and enact street sweeping parking restrictions on a case-by-case basis; and WHEREAS, Vehicle Code Section 22507 further authorizes the City to designate certain streets upon which preferential parking privileges are given to residents and merchants adjacent to the streets for their use and the use of their guests, under which designation said residents and merchants may be issued a permit or permits that exempt them from the prohibition or restriction of the ordinance or the resolution; and
WHEREAS, the City Council adopted the Residential Parking Management Policy (“Permit Parking Policy”) in July 2004, which addresses overflow parking in residential neighborhoods. The Permit Parking Policy was updated in May 2019 as part of a comprehensive review of parking policies and procedures; and WHEREAS, the Permit Parking Policy includes criteria and phases for evaluating and establishing residential permit parking restrictions; and WHEREAS, the City Council desires to establish the necessary mechanisms needed to enforce the Street Sweeping Policy and the Permit Parking Policy in order to address certain negative impacts that can result from on-street parking, including interfering with street sweeping as well as reducing the availability of on-street parking for Lake Forest residents; Item: 14
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NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE
FOREST DOES ORDAIN AS FOLLOWS:
SECTION 1. Section 12.16.040 of Title 12 the Lake Forest Municipal Code is hereby amended to add subsection “I” as follows:
“12.16.040 Violations.
I. Street Sweeping. It is unlawful for any person to stop, stand or park a vehicle on sign-posted streets, highways or portions thereof during the times designated for street sweeping, except for any vehicle considered exempt under the Street Sweeping Parking Restriction Policy.”
SECTION 2. Section 12.16.020 of Title 12 the Lake Forest Municipal Code is hereby amended to add subsection “J” as follows:
“12.16.020 Establishment of restricted zones.
...
J. Restricting stopping, standing, or parking during specific hours of the day for streets, highways or portions thereof during the times designated by the City Council for street sweeping.
SECTION 3. Section 12.16.080, titled “Permit Parking Program Enforcement,” is added to Title 12 the Lake Forest Municipal Code to read as follows:
“12.16.080 Permit Parking Program Enforcement
A. The City Council may adopt a resolution, pursuant to the provisions of the Residential Parking Management Policy, designating an area as permit parking only.
B. Except as otherwise provided by the Residential Parking Management Policy, it shall be unlawful for any person to stand or park any vehicle on any street or portion thereof that has been designated as permit parking only, unless a valid permit to park has been issued by the City and is displayed on the vehicle. The decal shall be displayed in clear view as further indicated in the permit issuance instructions.
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C. It shall be unlawful for any person to sell, rent, copy or lease, for any value or consideration, any parking permit or guest parking permit, except as provided by the Residential Parking Management Policy.
D. It shall be unlawful for any person to move solid waste containers in a manner that precludes collection of solid waste, obstructs driveways or other rights of way, or otherwise interferes with vehicular traffic in order to park on a street or portion thereof designated as permit parking only.
E. Each permit issued pursuant to the Residential Parking Management Policy shall be subject to all the conditions and restrictions applicable to the residential permit parking district for which it was issued.
F. The provisions of this section shall not apply to any authorized emergency vehicle as defined in the California Vehicle Code when such vehicle is responding to an emergency, or to the vehicle of a licensed physician who is responding to an emergency provided that vehicle displays an insigne approved by the California Department of Motor Vehicles indicating that the vehicle is owned by a licensed physician.
G. Nothing contained in this section shall be deemed to authorize vehicle parking at any location or at any time otherwise prohibited by any other provision of law.
H. The Director is hereby authorized to place appropriate signs and/or markings adjacent to or at the beginning and end of the street segment in the permit parking district that describes the permit parking restrictions applicable to the permit parking district.
I. Sheriff’s officers, City code enforcement officers and other persons authorized by State law are hereby authorized and directed to issue citations to any person who violates Section 12.16.080 of this Chapter, and such citation shall be deemed to be a civil complaint charging violations of this chapter and title and requiring payment of the penalty set forth therein. The method of giving notice of citation for unattended vehicles shall be as specified in Section 40202 of the California Vehicle Code or any successor provision thereto. Violations of this section shall be processed as civil penalties in accordance with California Vehicle Code Sections 40200 et seq., or any successor Item: 14
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provision thereto.
J. A parking permit shall be subject to revocation in accordance with the provisions of the Residential Parking Management Policy, as well as the conditions and restrictions applicable to the residential permit parking district for which it was issued.”
SECTION 4. The City Council finds that this Ordinance is exempt from the California Environmental Quality Act ("CEQA") because the Ordinance does not qualify as a “project” under CEQA and because the Ordinance will not result in a direct or reasonably foreseeable indirect physical change in the environment. (State CEQA Guidelines section 15060, subd. (c)(2), (3).) Section 15378 of the State CEQA Guidelines defines a project as the whole of an action, which could potentially result in either a direct physical change, or reasonably foreseeable indirect physical change, in the environment. Here, the Ordinance will not result in any construction or development, and it will not have any other effect that would physically change the environment. The Ordinance therefore does not qualify as a project subject to CEQA.
In the alternative, even if the Ordinance did qualify as a “project” under CEQA, it would be exempt from CEQA under State CEQA Guidelines section 15061(b)(3), which exempts projects from CEQA “[w]here it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.” Thus, even if the Ordinance could result in some physical change in the environment, the Ordinance is exempt from CEQA because it can be seen with certainty that there is no possibility that the Ordinance may have a significant effect on the environment.
The City Council, therefore, directs that a Notice of Exemption for this Ordinance be filed with the County Clerk of the County of Orange in accordance with State CEQA Guidelines.
SECTION 5. If any section, subsection, subdivision, sentence, clause, phrase, or portion of this Ordinance for any reason is held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance.
The City Council hereby declares that it would have adopted this Ordinance, and each section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, or portions thereof be declared invalid or unconstitutional.
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SECTION 6. The documents and materials associated with this Ordinance that constitute the record of proceedings on which the City Council’s findings and determinations are based are located at Lake Forest City Hall, 100 Civic Center Drive, Lake Forest, California 92630. The City Clerk is the custodian of the record of proceedings.
SECTION 7. The City Clerk shall certify as to the adoption of this Ordinance and shall cause a summary thereof to be published within fifteen (15) days of the adoption and shall post a Certified copy of this Ordinance, including the vote for and against the same, in the Office of the City Clerk, in accordance with Government Code Section 36933.
PASSED, APPROVED, AND ADOPTED this ______ day of _______, 2024.
MARK TETTEMER
MAYOR
ATTEST:
LISA BERGLUND
CITY CLERK
APPROVED AS TO FORM:
MATTHEW E. RICHARDSON
CITY ATTORNEY
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COUNTY OF ORANGE ) SS
CITY OF LAKE FOREST )
I, Lisa Berglund, City Clerk of the City of Lake Forest, California do hereby certify that the foregoing Ordinance No. ____was duly introduced and placed upon its first reading at a regular meeting of the City Council on the _____ day of _______ 2024, and thereafter, said Ordinance was duly adopted and passed at a regular meeting of the City Council on the _____ day of ______, 2024, by the following vote, to wit:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
LISA BERGLUND
CITY CLERK
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5 RESOLUTION NO. 2024-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
LAKE FOREST, CALIFORNIA, UPDATING FINES FOR
PARKING VIOLATIONS
WHEREAS, the City of Lake Forest maintains a Master Fee Schedule (“fee schedule”) that identifies charges fees for licenses, permits, and various services provided by the City (collectively, “fees”); and
WHEREAS, in addition to fees, the fee schedule currently includes a listing of various fines and penalties (collectively, “fines”) for violations of applicable State or local law, including violation of a provision of any ordinance or the City’s Municipal Code associated with parking regulations; and
WHEREAS, in order to increase clarity and avoid inadvertently adjusting fines with the City’s regularly scheduled fee updates, going forward, the schedule of fines will be maintained and reviewed separately from the schedule of fees; and
WHEREAS, no changes are proposed to any fee amounts in the City’s fee schedule as a result of this action; and
WHEREAS, the schedule of fines will be updated to reflect recent updates to the City’s Municipal Code regarding violations associated with the City’s street sweeping and parking permit requirements; and
WHEREAS, California Vehicle Code Section 40200 et seq. authorizes cities to impose and collect civil fines and penalties for violations of any regulation pertaining to the stopping, standing, or parking of a vehicle, and related charges, as specified in the California Vehicle Code, any federal statute or regulation, or any local ordinance; and WHEREAS, California Vehicle Code Section 40203.5 specifically requires cities to establish a schedule of penalties for parking violations and related charges.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE FOREST, CALIFORNIA, DOES HEREBY RESOLVE, DETERMINE, FIND AND ORDER AS FOLLOWS:
Section 1. The Recitals provided above are true and correct and are hereby incorporated into this Resolution.
Section. 2. The City Council finds that in accordance with the California Environmental Quality Act ("CEQA") and the CEQA Guidelines, the adoption of this Resolution is exempt from CEQA pursuant to Section 15061(b)(3) and Section 15273(a)(1) of Title 14 of the California Code of Regulations because CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no Item: 14
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5 possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.
Section 3. The schedule of fines attached to this Resolution as Exhibit "A", which is incorporated herein by reference, is hereby approved and adopted. Pursuant to Lake Forest Municipal Code Section 3.03.030, a supermajority, or four-fifths of the City Council have approved the adoption, establishment, or increase of fines and charges provided in Exhibit "A". Upon adoption of this Resolution, these fines and charges shall immediately take effect and remain in effect until amended by the City Council.
Section 4. The documents and materials associated with this Resolution that constitute the record of proceedings on which these findings are based are located at Lake Forest City Hall, 100 Civic Center Drive, Lake Forest, California 92630. The City Clerk is the custodian of the record of proceedings.
Section 5. The City Clerk shall attest as to the adoption and execution of this Resolution and cause the same to be maintained in the permanent records of the City.
PASSED, APPROVED AND ADOPTED this __ day of February 2024.
MARK TETTEMER
MAYOR
ATTEST:
LISA BERGLUND
CITY CLERK
APPROVED AS TO FORM:
MATTHEW E. RICHARDSON
CITY ATTORNEY
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5 Exhibit A
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New Fines for Bail Schedule
City of Lake Forest
PARKING PENALTY BAIL SCHEDULE
Code Violation Description Amount
Reminder
Notice
Mailed
Penalty Amount
Due if Payment is
More than 15 Days
after Reminder
Notice
Penalty Amount
Due if Payment is
More than 30 Days
after Reminder
Notice
12.16.040(I) STREET SWEEPING $50.00 +22 days $35.00 $45.00
12.06.080 PERMIT PARKING NOT
DISPLAYED $50.00 +22 days $35.00 $45.00
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CITY COUNCIL AGENDA REPORT
MEETING DATE: 2/6/2024
DEPARTMENT: City Clerk
SUBJECT:
MEMBERSHIP IN ASSOCIATION OF CALIFORNIA CITIES, ORANGE COUNTY (CONTINUED FROM THE JANUARY 16, 2024, CITY COUNCIL MEETING) RECOMMENDED ACTION(S):
Receive and file.
EXECUTIVE SUMMARY:
On January 16, 2024, the City Council voted to continue this decision to a City Council meeting in February. Kris Murray, Executive Director of the Association of California Cities, Orange ("ACC-OC") will be in attendance to answer questions posed by the City Council (Attachment 1).
BACKGROUND:
On January 17, 2023, the City Council voted to renew its membership with ACC- OC. Subsequently, Council Members asked to revisit the City's membership in one year. During the December 5, 2023, City Council meeting Kris Murray, Executive Director of ACC-OC provided an update to the City Council. The update included a year-end report highlighting the Association achievements and reviewed goals and scheduled events for 2024 (Attachment 2).
DISCUSSION:
ACC-OC has four committees on which members may serve. The committees meet regularly to discuss existing and emerging issues. The committees include the Energy, Environment and Water which meets bi-monthly. The other three committees (Legislative and Regulatory Committee, Housing Committee, and Homelessness and Solutions Committee) meet monthly. ACC-OC also coordinates advocacy activities throughout the year. Annual advocacy trips to Sacramento and Washington D.C. are held to advocate at the state and federal levels on interests and issues most pressing in Orange County. ACC-OC members may participate in deliberations over policy positions the group takes, Item: 15
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receive alerts regarding proposed state-level policies that could impact Orange County, and network with leaders from other communities. Nonmembers may attend ACC-OC events provided reservations and admission costs for the event are paid. Participation in individual ACC-OC events may be arranged and paid for on an as-needed basis. The cost of the City’s participation in the organization in 2023 is as follows:
2023 Membership
(*reflects 10% discount)
$15,238*
ACC-OC Legislative Advocacy Trip
– Washington DC (Voigts)
$1,521
ACC-OC Legislative Advocacy Trip
– Sacramento (Voigts)
$97
ACC-OC Legislative Advocacy Trip
– Sacramento (Yu)
$1,617
ACC-OC SMART Cities Dinner
(Yu)
$85
Total $18,558
ACC-OC has extended the 10% discount to the 2024 membership. The cost of the 2024 membership is $15,281.97. Sufficient funds are included in the 2023- 2025 Operating Budget to cover the cost of the City’s annual membership fee. As the ACC-OC Membership was approved in the 2023-2025 Operating Budget, staff intends on renewing the membership for 2024 unless directed otherwise.
Continuing the City’s membership is at the sole discretion of the City Council.
FISCAL IMPACT:
Sufficient funding exists in the 2023-2025 Operating Budget to cover membership fees to renew its membership with the Association of California Cities Orange County.
ATTACHMENTS:
1. Unofficial Minute Excerpt, City Council Meeting, January 16, 2024, Item No. 9
2. ACC-OC Presentation to the City Council, December 5, 2023 Submitted By: Lisa Berglund, City Clerk
Approved By: Debra Rose, City Manager
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Attachment 1
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UNOFFICIAL DRAFT MINUTE EXCERPT
LAKE FOREST REGULAR CITY COUNCIL MEETING
JANUARY 16, 2024
______________________________________________________________________
9. MEMBERSHIP IN ASSOCIATION OF CALIFORNIA CITIES, ORANGE COUNTY
City Manager Rose introduced this item and invited City Clerk Berglund to provide a presentation. Director of Member Services for ACC-OC, Kathryn Morrison, provided information. No public comment was offered. Council Member Pequeño recommended withdrawing membership. Mayor Pro Tem Voigts made a motion to renew membership for 2024 and to re-evaluate in one year. No second was heard. Council Member Yu made a motion to table the item to a later date. Council Member Pequeño seconded the motion.
Council Member Cirbo suggested a workshop to further this discussion.
Mayor Tettemer suggested to instead have staff distribute information to Council members in advance.
MOTION: It was moved by Council Member Yu, seconded by Council Member Pequeño, to table the item to a date to be determined by staff. The motion was carried by a vote of 5/0.
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ATTACHMENT 2
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CITY OF LAKE FOREST
ACC-OC Presentation to City Council
December 5, 2023
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About ACC-OC
EDUCATION | POLICY | ADVOCACY
The Association of California Cities–Orange County
(ACC-OC) represents the interests of cities on regional public policy issues.
Membership consists of cities and affiliate members;
such as public agencies, businesses, non-profits, and
higher education institutions. Association is governed
by a Board of Directors and operates as a 501c3.
Established in 2011, under the philosophy that
Orange County cities need a collaborative voice on
public policy issues impacting our communities.
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ACC-OC Member Cities & Affiliates
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ACC-OC STANDING
COMMITTEES
• Energy, Environment & Water
• Legislative & Regulatory
• Housing
• Homelessness & Solutions
Coming in 2024
• Economic Development and Tourism
• Transportation and Infrastructure
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Communicating Best Practices
EDUCATION | POLICY | ADVOCACY
ACC-OC online resources promote cities,
advocate solutions, educate and inform
officials.
Relaunched website with resource library for
cities.
Dynamic new online newsletters, Policy Pulse
and Open Session.
Developing ACC-OC Podcast.
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Programming
EDUCATION | POLICY | ADVOCACY
7 ACC-OC hosts educational programming
and events to serve cities, public
agencies, and the greater community.
State and federal advocacy programs,
Public Policymakers Academy, Leadership
Conference, quarterly dinner programs,
educational forums, and infrastructure
tours.
ACC-OC strives to provide meaningful
opportunities to help Orange County
leaders serve their cities and our region.
“ACC-OC:
Keeping OC in
LOCal
Government!”
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2023 Programs & Events to Date
EDUCATION | POLICY | ADVOCACY
Newly Elected Officials Orientation & Training
With AB 1234 and AB 1661 Certifications
Mass Shooting & Critical Incident Preparedness Forum
ACC-OC Sacramento Advocacy Program
ACC-OC Washington DC Advocacy Program
Smart City Quarterly Dinner
Public Policy Maker Academy (PPMA)
Annual Summer Legislative Roundtable & Reception
Infrastructure Tours
Monthly Legislative & Regulatory Committee
Energy, Environment, & Water Committee
ACC-OC Housing Committee
ACC-OC Homelessness & Solutions Committee
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Upcoming Programs & Events
EDUCATION | POLICY | ADVOCACY
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THANK YOU
Thank you to the City of Lake
Forest for your leadership and
investment in ACC-OC. We look
forward to partnering on
our programs, communications,
and advocacy efforts on
behalf of Orange County cities!
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CITY COUNCIL AGENDA REPORT
MEETING DATE: 2/6/2024
DEPARTMENT: City Manager
SUBJECT:
FUTURE PROGRAMMING FOR THE CITY OF LAKE FOREST'S STRATEGIC
ECONOMIC INVESTMENT PROGRAM
RECOMMENDED ACTION(S):
1. Direct staff to prepare an allocation of $50,000 to fund Small Business Development Center programs.
2. Direct staff to combine the budgets for Restaurant Industry Assistance and Other Impacted Industry Assistance.
3. Direct staff to develop program guidelines for a bulk gift card purchasing program for local employers for future consideration.
EXECUTIVE SUMMARY:
The City Council's approval of the Strategic Economic Investment Program (“SEIP”) on February 15, 2022, assigned $8,303,350 in economic support funds to assist local businesses impacted by the COVID-19 pandemic. This allocation was categorized into three segments: Restaurant Industry Assistance, Hotel Industry Assistance, and Other Impacted Industry Assistance.
Several key economic development programs have been implemented as part of SEIP to support local businesses and foster recovery. The Shop & Dine Buy One-Get-One Community Gift Card Program (“BOGO”) offers residents and visitors the opportunity to buy community gift cards and receive matching gift cards for free. This initiative has been approved for six funding phases attracting significant support. The Catalytic Converter Theft Mitigation Initiative established two programs: the Paint and Etching (“P&E Program”) and Shield Programs.
These programs help protect residents from catalytic converter theft. Lastly, SEIP funds have been budgeted for the Taste of Lake Forest (“Taste”), last held in 2019, scheduled to return on May 11, 2024, at Heritage Hill Park. Approximately $3.8 million of SEIP funds have been allocated to these programs. A detailed program status is provided in the report, with a particular focus on the BOGO and Catalytic Converter Programs.
On November 13, 2023, the City Council Audit Committee met to discuss potential programming for the allocation of remaining SEIP funds. Following the Item: 16
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Audit Committee’s recommendations, staff list additional potential uses for SEIP funds, outline prospective programs, and present recommendations for City Council consideration. Staff recommends the City Council direct funding to Small Business Development Center programs, combine the remaining budget allocations for Restaurant Industry Assistance and Other Impacted Industry Assistance, and initiate a new bulk gift card purchasing program for local employers.
BACKGROUND:
SEIP
On February 15, 2022, the City Council approved the SEIP. The SEIP established a budget for economic development programs to help local businesses recover from the COVID-19 pandemic. It assigns $8,303,350 in economic support funds to three business types: restaurants, hotels, and other businesses impacted by COVID-19.
The initial allocations of SEIP funds by category can be seen in Table 1 below.
Table 1: SEIP Business Support Allocations
Category Allocation
Restaurant Industry Assistance $3,803,350
Hotel Industry Assistance $2,500,000
Other Impacted Industry Assistance $2,000,000
Total Business Support $8,303,350
Following the establishment of SEIP, the City Council Audit Committee and staff began formulating economic development programs for City Council consideration. The following background summarizes four SEIP initiatives that have been enacted since the approval of the program and program expenses to date.
Community Gift Card Program BOGO
On October 4, 2022, the City formally authorized the Community Gift Card Program (“CGCP”) BOGO. The BOGO provides residents and visitors with an opportunity to buy community gift cards and receive an electronic, matching gift card of the same value for free. The City covers the cost of the bonus card, plus the fees associated with card issuance. The gift cards can only be used at Lake Forest businesses that apply for and receive approval to participate in the program.
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On December 6, 2022, the City opened the online portal and allowed residents to begin buying gift cards. The BOGO was the first major program funded in response to the City Council’s approval of the SEIP. The gift card is only redeemable at businesses in Lake Forest that have been approved to participate.
The matching gift card automatically expires six months after the issue date.
To date, the City Council has approved six funding phases of the BOGO. The BOGO experiences an increase in demand with the roll out of each phase.
Catalytic Converter Programs
On December 20, 2022, the City Council formally authorized the program guidelines and associated contract documents to establish the catalytic converter P&E and Shield Programs. On February 21, 2023, the City Council approved a resolution allocating an additional $60,000 toward the City’s two catalytic converter programs ($30,000 each). As of December 21, 2023, five local businesses were approved to provide P&E services and Shield Program services. The City has approved 258 P&E applications and 155 Shield Program applications.
Under the P&E Program, participating local businesses are provided $125 on a reimbursement-basis from the City to provide P&E Program services on resident’s vehicles. Under the Shield Program, residents are provided a $250 gift card toward the purchase and installation of a theft deterrent catalytic converter shield at a participating local automotive shop. The City provides an electronic gift card to residents after their application to participate is approved. The gift card is only redeemable at businesses in Lake Forest that have been approved to participate. The gift card automatically expires after six months from the date issued. In accordance with the Shield Program Agreement with Yiftee, the City is charged an eight-dollar fee for each $250 gift card issued. This eight-dollar fee includes a $0.50 per card fee and an additional fee based on three percent of each card’s valuation.
Hotel Industry Assistance
On June 20, 2023, the City Council approved updates to the City's 2023-2030 Strategic Plan including Strategic Plan Initiative #21- Hotel Marketing Campaign.
This update introduced a strategy to launch a Hotel Marketing Campaign, aimed at revitalizing the local hotel industry following the COVID-19 pandemic. The campaign includes the procurement of a marketing consultant tasked with creating and implementing a 'Stay in Lake Forest' marketing initiative to boost occupancy rates and support hotels in their recovery efforts.
A budget of $2.5 million in SEIP funds was allocated to provide direct assistance to the local hotel industry. Staff proactively engaged local hotels by conducting a Item: 16
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survey to gauge needs and preferences for utilizing this funding in support of each hotel. However, the responses from hotels were limited, and the feedback received did not adequately represent the entirety of Lake Forest’s hotel industry.
The Audit Committee discussed expanding the proposed hotel marketing campaign to include a comprehensive City-wide branding strategy. Staff will present this item to the Audit Committee on April 23, 2024, with recommendations for the campaign. Staff will also discuss the potential to use funds intended for the Hotel Industry category for a City-wide effort that addresses hotel industry needs.
Taste
The Taste has been a partnership event between the City and Lake Forest Chamber of Commerce (“Chamber”) since 2012. The event was last held in the fall of 2019. The Taste will return on May 11, 2024, at Heritage Hill Historical Park. On July 5, 2023, the City Council approved a resolution amending the 2023-2025 Operating Budget, allocating $75,000 for event expenditures.
Expenditures include costs for marketing, permits, and rentals; a pilot agreement with the Chamber; participation sponsorship; entertainment; event operating supplies; and costs associated with food waste, recycling, and trash receptacles.
SEIP Spending Summary
Table 2 outlines the funds that have been appropriated for SEIP related programming to date.
Table 2: SEIP Program Spending Summary
Phase Approval
Date
Funding
Amount
Summary
Agreement
with HdL
6/21/2022 $124,790 City Council awarded
agreement to HdL to develop
and manage SEIP funded
programs.
BOGO
Phase 1
10/4/2022 $575,000 Initial program launch.
Launch included three
funding rounds, with
marketing prioritizing Lake
Forest residents. Funding
amount included a $10,000
contract with the Chamber to
assist with business
recruitment.
Catalytic
Converter
10/4/2022 $111,154 City Council approved two
catalytic converter programs.
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Phase Approval
Date
Funding
Amount
Summary
Program
Phase 1
$30,000 for P&E, $29,154 for
Shield Program, and $55,000
for LED message boards.
BOGO
Phase 2
2/21/2023 $565,000 Second phase of BOGO.
Program was advertised
broadly to the public. Staff
and HdL instituted new
vendor agreement system
and established new program
guidelines to enhance the
integrity of the program. $25
gift card increment is
removed to mitigate fee costs.
Catalytic
Converter
Program
Phase 2
2/21/2023 $60,000 City Council provides $60,000
total to catalytic converter
theft prevention efforts.
$30,000 for P&E and $30,000
for the Shield Program.
Taste 7/5/2023 $75,000 City Council approved the
budget for the 2024 Taste.
Budget will cover marketing,
permits/rentals,
entertainment, event
operating supplies,
participation sponsorship, and
a pilot agreement with the
Chamber.
BOGO
Phase 3
8/15/2023 $565,000 Third phase of funding.
Marketed broadly to the
public.
BOGO
Phase 4
10/17/2023 $565,000 Fourth phase of funding.
Marketed broadly to the
public.
BOGO
Phase 5
11/21/2023 $565,000 Fifth phase of funding.
Marketed broadly to the
public.
BOGO
Phase 6
1/16/2024 $565,000 Sixth phase of funding.
Marketed broadly to the
public.
Total: $3,770,944
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As demonstrated by Table 2, approximately $3.8 million dollars have been allocated to SEIP related programs.
Strategic Plan Initiative and Audit Committee Meeting
The updated 2023-2030 Strategic Plan included an initiative to develop and present a plan to reformulate the City’s SEIP, Strategic Plan Initiative #23 – SEIP
2.0. On November 13, 2023, the City Council Audit Committee met to discuss potential programming for the allocation of remaining SEIP funds. The Audit Committee provided input on viable uses for the remaining funds. Following the Audit Committee’s recommendations, staff have outlined potential programming below.
DISCUSSION:
Staff is seeking direction regarding the allocation of remaining SEIP funds. To provide a more comprehensive understanding of the current state of SEIP, the following discussion outlines the most up-to-date status of SEIP initiatives and potential uses for remaining funds. Staff, in collaboration with HdL, and responding to recommendations from the Audit Committee, have outlined prospective programs that could effectively make use of the unallocated SEIP funds. These programs encompass the continuation of existing initiatives, such as the BOGO program, as well as the introduction of new programs as outlined below.
Taste 2025:
The updated 2023-2030 Strategic Plan included a strategy to reintroduce the annual Taste to the community, Strategic Plan Initiative #20 – Taste of Lake Forest 2.0. Through the development of the SEIP, the City Council included $160,000 to host the event in Fiscal Year (“FY”) 2023-24 and FY 2024-25. On July 5, 2023, the City Council approved a resolution amending the 2023-2025 Operating Budget, allocating $75,000 for event expenditures.
The Taste will be held on May 11, 2024. If the event meets its objectives and garners positive feedback from both attendees and businesses, staff would return to the Audit Committee and the City Council to seek future appropriation of SEIP funds for the 2025 event.
Small Business Development Center (“SBDC”) Programs:
The SBDC collaborates with cities to deliver tailored programs that provide crucial resources, knowledge, and funding to support local businesses.
According to the results of the 2023 Business and Resident Satisfaction Survey, Item: 16
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more than half of the surveyed businesses expressed a desire to enhance their profitability through improved marketing and advertising strategies. Additionally, a similar proportion of respondents highlighted the importance of updating their business websites to attract a broader customer base. Over 40% of businesses expressed their anticipation for growth.
City staff and HdL conducted research on various SBDC programs and, in line with the Audit Committee’s recommendation, identified the Main St. Digital Training and Grant Program ("Main St. Digital") and the Level Up Training and Grant Program ("Level Up") as the most suitable options for the City's business demographic. Furthermore, these programs offer resources and information that align with the needs highlighted in the 2023 Business and Resident Satisfaction Survey.
Main St. Digital:
Main St. Digital is a virtual training program that typically takes place over seven weeks and aims to assist brick-and-mortar retail businesses with creating a digital presence for their business. All sessions take place in a group format and are coupled with individual one-on-one consulting with an SBDC consultant.
There are certain eligibility requirements set by the SBDC and the partnering City that a business must meet to participate in the program. The program would offer a grant from the City to fund the participating businesses’ paid online advertising.
The grant amount per participating business is at the discretion of the City Council. The funds would be restricted to developing a paid advertising campaign for the purpose of increasing revenue to offset lost revenue due to COVID-19 impacts. Each applicant would need to sign and verify that the use of funds will be spent on a paid advertising campaign. In addition to the grants, there is an administrative fee of approximately $15,000 for SBDC to administer the program.
As examples of the grants offered at other cities through this program, the City of Tustin offered grants of $500 for each participating business, while the City of San Clemente offered grants of $1,000.
Level Up:
Level Up is a program developed to assist small business owners in expanding and driving their businesses to the next level. The program is typically four weeks and business owners work on putting together their path toward progress as they evaluate and develop their metrics, benchmarks, teams, financials, triggers, and strategies to reach the next level of growth. Specific categories of growth include the following: creating a new revenue stream, entering new market segments/expanding customer base, acquiring new technology/equipment, adding new/additional locations, and more. There are certain eligibility requirements set by the SBDC and the partnering City that a business must meet Item: 16
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to participate in the program. Similar to the Main Street Digital program, the Level Up program would require determining a budget for potential grants and costs would include an administrative fee of approximately $15,000. The City of Tustin offered grants of up to $10,000 for each participating business while the City of San Clemente did not participate in this program.
Both San Clemente and Tustin expressed their high satisfaction with partnering with the SBDC and the positive outcomes of the programs in which they participated. Tustin noted that both programs were excellent options, and their choice was influenced by budget considerations at the time. The City of Tustin reported roughly 40 participants across the Main St. Digital and Level Up Programs. The City of San Clemente experienced roughly 10 participants in its Main St. Digital Program. Tustin plans to continue participating in future SBDC programs.
The positive feedback from both Tustin and San Clemente regarding these programs encouraged the Audit Committee and staff to recommend them as feasible options for future SEIP funding. Staff recommend setting aside $50,000 to fund the related SBDC programs, which would cover the costs of the potential grant amounts and administrative costs associated with implementing the programs.
Bulk Community Gift Card Purchasing:
Many employers engage in existing programs that provide gift cards as rewards or incentives to their employees, typically from brands like Amazon or American Express. Yiftee, the firm that manages the gift card system, offers bulk gift card purchasing services.
Proactively reaching out to these large employers and encouraging them to consider using Community Gift Card Program gift cards, as opposed to generic alternatives, may yield an additional positive impact to the reach and success of the CGCP program. CGCP gift cards can be redeemed exclusively at local businesses, maximizing the benefit to the local economy. Yiftee offers a program tailored to collaborating with businesses that purchase gift cards in large quantities, potentially reducing or even eliminating processing fees. This can lead to a net gain for the employer by reducing their overall gift card procurement costs while actively promoting local shopping.
Staff recommend the City Council direct staff to work with Yiftee and HdL to develop program guidelines for a Bulk Gift Card Program and present them at a future meeting. The presented program guidelines would outline the SEIP funding necessary to cover administrative costs, contract amounts, and other costs associated with the program. The funds would be appropriated from available SEIP funds. The program guidelines would not permit a buy-one-get- Item: 16
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one deal but may include a specific quantity of City-bought matching cards as part of a bulk gift card purchase.
Consolidating CGCP funds
The Community Gift Card BOGO program has been well received by both businesses and residents, resulting in over two million dollars of gift card purchases within Lake Forest. Nearly 40% of these gift card purchases were made by Lake Forest residents. As of December 2023, approximately $1.6 million in purchases originated from neighboring South County cities, including Rancho Santa Margarita, Irvine, Mission Viejo, Dana Point, Laguna Hills, Aliso Viejo, Laguna Niguel, and beyond. Given the high demand and support for the BOGO program, exemplified by the rapid utilization of funds in each phase and purchases from outside Lake Forest, the Audit Committee and staff recommend continuing to fund the BOGO program.
Approximately $3.8 million have been allocated to SEIP related programs. This leaves approximately $2 million dollars remaining between the two categories for Restaurant Industry and Other Impacted Industry Assistance.
Staff and the Audit Committee suggest merging the SEIP funding intended for 'Restaurant Assistance' and 'Other Impacted Industry Assistance.' Currently, funds for each of these gift card spending categories are allocated and tracked separately. Enabling gift card holders to use gift cards interchangeably between restaurants and other businesses necessitates diligent tracking by staff to adhere to the allocated budget for each category. Should one category deplete its funds, the City would need to develop a strategy to limit gift card holders from using cards in that specific category. Combining these categories would result in fewer restrictions on gift card holders’ use of gift cards, reduce staff time in tracking purchases within distinct categories, and allow the free market to determine where funds are spent.
FISCAL IMPACT:
The fiscal impact is contingent on City Council direction.
ATTACHMENTS:
None.
Initiated By: Hope Hairrell, Management Assistant
Submitted By: Keith Neves, Assistant City Manager
Approved By: Debra Rose, City Manager
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