Agenda packet — Lakewood City Council, October 25, 2022

AGENDA

REGULAR CITY COUNCIL MEETING

COUNCIL CHAMBERS
5000 CLARK AVENUE

LAKEWOOD, CALIFORNIA
October 25, 2022, 7:30 p.m.

CALL TO ORDER
INVOCATION: Father Alidor Mikobi, St. Cyprian Catholic Church PLEDGE OF ALLEGIANCE: Scout Troop 134
ROLL CALL: Mayor Steve Croft
Vice Mayor Ariel Pe
Council Member Cassandra Chase
Council Member Todd Rogers
Council Member Jeff Wood
ANNOUNCEMENTS AND PRESENTATIONS:

Presentation by Vice President Diana Craighead, Long Beach Unified School District Board of Education, Regarding Dual Immersion Program and Facilities Update Presentation to Young Marines Regarding Red Ribbon Week Presentation by Captain Dan Holguin, Lakewood Sheriff’s Station, Regarding Quarterly Public Safety Report
ROUTINE ITEMS:

All items listed within this section of the agenda are considered to be routine and will be enacted by one motion without separate discussion. Any Member of Council may request an item be removed for individual discussion or further explanation. All items removed shall be considered immediately following action on the remaining items.

RI-1 MEETING MINUTES - Staff recommends City Council approve Minutes of the Meetings held October 11, 2022
RI-2 PERSONNEL TRANSACTIONS - Staff recommends City Council approve report of personnel transactions.

RI-3 REGISTERS OF DEMANDS - Staff recommends City Council approve registers of demands.

RI-4 CITY COUNCIL COMMITTEES’ ACTIVITIES - Staff recommends City Council receive and file the report.

RI-5 MONTHLY REPORT OF INVESTMENT TRANSACTIONS - SEPTEMBER 2022 - Staff recommends City Council receive and file the report.

RI-6 QUARTERLY SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 2022 - Staff recommends City Council receive and file report.

City Council Agenda
October 25, 2022

Page 2 ends

In compliance with the Americans with Disabilities Act, if you are a qualified individual with a disability and need an accommodation to participate in the City Council meeting, please contact the City Clerk’s Office, 5050 Clark Avenue, Lakewood, CA, at 562/866-9771, ext. 2200; or at [email protected] at least 48 hours in advance to ensure that reasonable arrangements can be made to provide accessibility to the meeting.

Agenda items are on file in the Office of the City Clerk, 5050 Clark Avenue, Lakewood, and are available for public review during regular business hours. Any supplemental material distributed after the posting of the agenda will be made available for public inspection during normal business hours in the City Clerk’s Office. For your convenience, the agenda and the supporting documents are available in an alternate format by request and are also posted on the City’s website at www.lakewoodcity.org ROUTINE ITEMS: - Continued
RI-7 RESOLUTION NO. 2022-75, FINDING AND DETERMINATION OF NEED TO CONTINUE

EMERGENCY ACTION REGARDING REPAIRS TO BOLIVAR PARK STORMWATER CAPTURE BUILDING AND EQUIPMENT - Staff recommends City Council adopt proposed resolution.

RI-8 RESOLUTION NO. 2022-76; SETTING THE TERMINATION DATE FOR ALL COMMISSIONERS’ TERMS - Staff recommends City Council adopt proposed resolution.

RI-9 CUSTOMER INFORMATION AND UTILITY BILLING SYSTEM AGREEMENTS - Staff recommends City Council to enter into three-year agreements with Advanced Utility System, Paymentus Corporation, and WaterSmart.

RI-10 AGREEMENT TO VACATE UTILITY EASEMENT AND ENTER PARTIAL TERMINATION OF AGREEMENT WITH CITY OF LONG BEACH - Staff recommends City Council approve the Partial Termination of Agreement with City of Long Beach and vacate existing easement within the City of Long Beach as shown in Exhibit A; and authorize its execution by the Mayor on behalf of the City upon approval of the City Attorney as to form.

RI-11 PURCHASE OF WATER METERS FOR REPLACEMENT FOR FY 2022-23 - Staff recommends the City Council appropriate an additional $100,000 in Water Fund reserves for the purchase of water meters for replacement for FY 2022-23.

RI-12 PROPOSITION A TRANSIT FUND EXCHANGE AND ASSIGNMENT AGREEMENT - Staff recommends City Council approve the Proposition A Transit Fund Exchange and Assignment Agreement with the City of West Hollywood and authorize the City Manager and Director of Finance & Administrative Services to execute the agreement.

REPORTS:

3.1 LAKEWOOD LEADERSHIP ACADEMY PROGRAM - The Community Promotions Committee recommends that the City Council approve the Lakewood Leadership Academy program and appropriate the $10,000 in grants received for funding of the program.

3.2 QUARTERLY BUDGET REPORT OF MAJOR FUNDS AS OF SEPTEMBER 30, 2022 - Staff recommends City Council receive and file the report.

3.3 AGREEMENT WITH THE BOARD OF WATER COMMISSIONERS OF THE CITY OF LONG

BEACH FOR DESIGN, CONSTRUCTION, AND OPERATION OF A SECOND INTERCONNECTION - Staff recommends City Council approve Agreement with the Board of Water Commissioners of the City of Long Beach for Design, Construction, and Operation of a Second Interconnection; and authorize its execution by the Mayor on behalf of the City.

ORAL COMMUNICATIONS:

ADJOURNMENT

RI-1
Routine Item 1 – City Council Minutes
will be available prior to the meeting.

Investment Performance Review
For the Quarter Ended September 30, 2022
Client Management Team PFM Asset Management LLC
Sarah Meacham, Managing DirectorRobert Cheddar, CFA, Managing DirectorRichard Babbe, CCM, Senior Managing Consultant 213 Market Street
Harrisburg, PA 17101-2141
717-232-2723
633 W 5th St., 25th Floor
Los Angeles, CA 90071
213-415-1699
NOT FDIC INSURED : NO BANK GUARANTEE : MAY LOSE VALUE
For Institutional Investor or Investment Professional Use Only - This material is not for inspection by, distribution to, or quotation to the general public City of Lakewood
© PFM Asset Management LLC pfmam.com

CITY OF LAKEWOOD
For the Quarter Ended September 30, 2022
Portfolio Snapshot
|
Yield and duration calculations exclude cash and cash equivalents. Sector allocation includes market values and accrued interest.The portfolio’s benchmark is currently the ICE BofAML 1-5 Year U.S Treasury Index. Prior to 3/31/19 it was the ICE BofAML 1-3 Year U.S Treasury Index. Source: Bloomberg.

An average of each security’s credit rating was assigned a numeric value and adjusted for its relative weighting in the portfolio.

1. Credit Quality - S&P
12%
32%
23%
19%
13%
4%
36%
26%
21%
12%
0%
10%20%30%40%
0-1 Yr 1-2 Yrs 2-3 Yrs 3-4 Yrs 4-5 Yrs
Portfolio Benchmark
Duration Distribution
U.S. Treasury | 46%Corporate | 28%Federal Agency | 9%
ABS | 7%
Municipal | 5%Supranational | 4%Negotiable CD | 1%
Agency CMBS | <1%
Sector Allocation
AAA | 11%AA+ | 58%AA | 2%AA- | 2%A+ | 6%A | 6%A- | 8%A-1 | 1% BBB+ | 4%Not Rated | 2%
Portfolio Effective Duration 2.36 yearsBenchmark Effective Duration 2.48 yearsPortfolio Credit Quality AA Yield At Market 4.23%
Yield At Cost 1.51%
$37,118,982.04
Securities Sub-Total $36,836,993.77Cash $144,179.76
Accrued Interest $137,808.51
Portfolio Snapshot¹
Portfolio Statistics
Total Market Value
12 © PFM Asset Management LLC pfmam.com

CITY OF LAKEWOOD
For the Quarter Ended September 30, 2022
Account Summary
|

7.3%

27.6%

0.8%

5.4%

3.5%

0.0%

9.4%

46.1%

0.0% 20.0% 40.0% 60.0% 80.0% 100.0%
ABS - $2,688,351
Corporate - $10,189,348
Negotiable CD - $290,910
Municipal - $1,992,059
Supranational - $1,289,578
Agency CMBS - $4,969
Federal Agency - $3,470,748
U.S. Treasury - $17,048,838
Portfolio Allocation Sector Limit for Analysis*
Sector Allocation Analytics
For informational/analytical purposes only and is not provided for compliance assurance. Includes accrued interest.*Sector Limit for Analysis is as derived from our interpretation of your most recent Investment Policy as provided. 13 © PFM Asset Management LLC pfmam.com

CITY OF LAKEWOOD
For the Quarter Ended September 30, 2022
Portfolio Activity
|
Net Activity by Sector
($ millions)
U.S. Treasury
Supranational
Agency CMBS
ABS
Federal Agency
Corporate
U.S. Treasury
Supranational
Agency CMBS
ABS
Federal Agency
Corporate
($3.0) ($2.0) ($1.0) $0.0 $1.0 $2.0
Based on total proceeds (principal and accrued interest) of buys, sells, maturities, and principal paydowns. Detail may not add to total due to rounding.

Sector Net ActivityCorporate $703,218Federal Agency $282,183 ABS $194,255Agency CMBS ($42)
Supranational ($264,058)U.S. Treasury ($781,051)Total Net Activity $134,504 Sales/Maturities Purchases
Portfolio Activity
14 © PFM Asset Management LLC pfmam.com

CITY OF LAKEWOOD
For the Quarter Ended September 30, 2022
Portfolio Characteristics
|
Only includes fixed-income securities held within the separately managed account(s) and LGIPs managed by PFMAM. 49%
9%4%5%
1%
26%
7%
Jun-22
46%
9%4%5%
1%
28%
7%
Sep-22
Portfolio Activity
15 © PFM Asset Management LLC pfmam.com

CITY OF LAKEWOOD
For the Quarter Ended September 30, 2022
Portfolio Performance
|

1. The lesser of 10 years or since inception is shown. Since inception returns for periods one year or less are not shown. Performance inception date is December 31, 2007.2. Interest earned calculated as the ending accrued interest less beginning accrued interest, plus net interest activity.3. Returns for periods one year or less are presented on a periodic basis. Returns for periods greater than one year are presented on an annualized basis.4. The portfolio’s benchmark is currently the ICE BofAML 1-5 Year U.S Treasury Index. Prior to 3/31/19 it was the ICE BofAML 1-3 Year U.S Treasury Index. Source: Bloomberg. -8.0%-6.0%-4.0%-2.0%

0.0%2.0%
Return
Portfolio Benchmark
Portfolio Performance
Market Value Basis Earnings 3 Months 1 Year 3 Years 5 Years 10 Years¹Interest Earned² $149,015 $538,437 $1,918,555 $3,340,507 $5,394,109 Change in Market Value ($889,948) ($3,077,710) ($2,615,647) ($2,110,076) ($2,587,146) Total Dollar Return ($740,933) ($2,539,274) ($697,092) $1,230,431 $2,806,963 Total Return³
Portfolio -1.96% -6.40% -0.62% 0.68% 0.77%Benchmark⁴ -2.28% -6.78% -0.97% 0.39% 0.51% 3 Months 1 Year 3 Years 5 Years 10 Years
Difference 0.32% 0.38% 0.35% 0.29% 0.27%
16 © PFM Asset Management LLC pfmam.com

CITY OF LAKEWOOD
For the Quarter Ended September 30, 2022
Portfolio Performance
|

1. Performance on trade-date basis, gross (i.e., before fees), in accordance with the CFA Institute’s Global Investment Performance Standards (GIPS).2. Income returns calculated as interest earned on investments during the period.3. Price returns calculated as the change in market value of each security for the period.4. Returns are presented on a periodic basis.

Quarterly Sector Performance
Total Return by Sector Contribution to Total Return
Cash
ABS
Corporate
Negotiable CD
Municipal
Supranational
Agency CMBS
Federal Agency
U.S. Treasury
-2.00%-1.50%-1.00%-0.50%

0.33%

0.55%

0.15%

0.40%

0.10%

0.81%

0.12%

0.39%

0.00%
-0.94%
-2.17%

0.24%
-1.90%
-0.91%
-0.78%
-2.16%
-2.95%
-8.0% -5.8% -3.6% -1.4% 0.8% 3.0%
Return
17 © PFM Asset Management LLC pfmam.com

CITY OF LAKEWOOD
For the Quarter Ended September 30, 2022
Portfolio Performance
|

1. The lesser of 10 years or since inception is shown. Performance inception date is December 31, 2007.2. Interest earned calculated as the ending accrued interest less beginning accrued interest, plus net interest activity.3. Realized gains / (losses) are shown on an amortized cost basis.

Accrual Basis EarningsInterest Earned²Realized Gains / (Losses)³Change in Amortized CostTotal Earnings 3 Months
$149,015
($55,919)
($7,487)
$85,609
1 Year
$538,437
($35,258)($47,223)
$455,956
3 Years
$1,918,555
$482,260
($8,250)
$2,392,565
5 Year
$3,340,507
$254,079
$38,476
$3,633,062
10 Year¹
$5,394,109
$484,707
($386,391)
$5,492,426
Accrual Basis Earnings
18 PFM Asset Management LLC
For the Quarter Ended March 31, 2022
California Affiliated Risk Management Authorities CLIENT NAME Market Update For the Quarter Ended September 30, 2022
Market Update
© PFM Asset Management LLC | pfmam.com
Fixed-Income Sector Outlook – 4Q 2022
Sector Our Investment Preferences

C O M M E R C I A L P A P E R
/ C D

T R E A S U R I E S
T-Bill
T-Note

F E D E R A L A G E N C I E S
Bullets
Callables

S U P R A N A T I O N A L S

C O R P O R A T E S
Financials
Industrials

S E C U R I T I Z E D
Asset-Backed
Agency Mortgage-Backed
Agency CMBS

M U N I C I P A L S
Negative Slightly Negative Neutral Slightly Positive Current outlook Outlook one quarter ago Positive

CITY OF LAKEWOOD
For the Quarter Ended September 30, 2022
Market Update
© PFM Asset Management LLC pfmam.com |
19 RESOLUTION NO. 2022-75

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

LAKEWOOD FINDING AND DETERMINING THAT THERE

IS A NEED TO CONTINUE TAKING EMERGENCY ACTION

REGARDING THE NEED TO MAKE REPAIRS TO THE

BOLIVAR PARK STORMWATER CAPTURE BUILDING AND
EQUIPMENT.

WHEREAS, on September 13, 2022, the City Council adopted Resolution No. 2022-70, finding and determining that it was necessary to take emergency action due to the fact that the Bolivar Park Stormwater Capture Building and Equipment were damaged as a result of a traffic collision; and
WHEREAS, the City has not completed the actions authorized by Resolution No. 2022-70;

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKEWOOD HEREBY RESOLVES AS FOLLOWS:

SECTION 1. Based on the evidence contained in the staff report submitted herewith, the City Council finds and determines that there is a need to continue the action authorized by Resolution No. 2022-70.

SECTION 2. The City Manager and his designees are hereby directed and authorized to implement the actions taken by the City Council to address this emergency.

SECTION 3. If any section, subsection, subdivision, paragraph, sentence, clause or phrase in this Resolution, or any part hereof, is held invalid or unconstitutional, such decision shall not affect the validity of the remaining sections or portions of this Resolution. The City Council hereby declares that it would have adopted each section, subsection, subdivision, paragraph, sentence, clause or phrase in this Resolution irrespective of the fact that any one or more sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases may be declared invalid or unconstitutional.

SECTION 4. The City Clerk shall certify to the adoption of this Resolution.

ADOPTED AND APPROVED THIS 25TH DAY OF OCTOBER, 2022.
___________________________________
Mayor
ATTEST:
_______________________________
City Clerk

RESOLUTION NO. 2022-76

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

LAKEWOOD SETTING THE TERMINATION DATE FOR ALL
COMMISSIONERS’ TERMS.

THE CITY COUNCIL OF THE CITY OF LAKEWOOD DOES RESOLVE AS FOLLOWS:

SECTION 1. Henceforth, all terms of members of the Planning and Environment Commission, the Community Safety Commission, and the Recreation and Community Services Commission shall terminate with the first Regular City Council meeting held after the meeting at which the City Council certifies the results of a General Municipal Election.

SECTION 2. The termination date set forth in this Resolution shall supersede all prior termination dates established for such terms of office.

SECTION 4. The City Clerk shall certify to the adoption of this Resolution.

ADOPTED AND APPROVED THIS 25TH DAY OF OCTOBER, 2022.
___________________________________
Mayor
ATTEST:
_______________________________
City Clerk

City of Lakewood - Utility Billing System Workflow
Customer Services and Applications City Staff
Water Meter Neptune
Paymentus
WaterSmart

AUS CIS
Customer Portal
Telephone/
Walk In
Water
Resources
(WR)
Customer
Service
(FA)
Water Usage
Data Analytics (WR)
Mailbox Bill Print File (FA)
Account Updates (FA)
Customer Service (FA)
Work Orders(WR)
F&M Bank
Lockbox Paper Checks (FA)
Account Balance (FA)
Online Payments (FA)
IVR Payments (FA)
Payment File (FA)
Payment
File (FA)
Water
Service
Requests
(FA)
Consumption (FA)
Bills (FA)
Readings (WR)
Hourly
Usage
(WR)
Payment
Transactions (FA)
Account Inquiries
and Updates (FA)
Walk in
Payments
(FA)
(WR) Water Resources
(FA) Finance Administration
Telephone Payments
InfoSend
1st Amendment to Software Subscription Agreement
WHEREAS, there was a certain Software Subscription Agreement (the "Agreement"), effective on 13th of December 13, 2019 (the "Effective Date") by and between the City of Lakewood, California ('Organization") and N. Harris Computer Corporation ("Harris").

WHEREAS, the Organization wishes to extend its use of the Software Subscription Agreement, and Harris wishes to provide such extension.

NOW THEREFORE, in consideration of the mutual covenants set out in this Hosting Service Agreement and for other good and valuable consideration (the receipt and sufficiency of which is hereby acknowledged), the parties agree to the following First Amendment to the Software Subscription Agreement, as follows:

I. Amendment to Article 2.2 of the Agreement, Term of Agreement Article 2.2, Term of Agreement, is hereby superseded and replaced with the following new text The initial term of this Agreement, which began on December 13, 2019, and will continue for a total of six (6) years, through and including December 13, 2025. Thereafter, this Agreement may be renewed for additional two (2) year period(s) upon mutual agreement of the parties in writing.

Organization shall provide Harris not less than ninety (90) days’ notice in writing prior to the end of the term or of its intent not to renew the Agreement. The initial term and any Renewal Terms shall collectively be referred to as the “Term.”
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II. Amendment to Article 5.1 of the Agreement, Fees
It is expressly understood that pricing for the additional extended term shall be as follows:

Schedule “B”
Fee Structure
2023 $2.32
2024 $2.43
2025 $2.55
Minimum Number of Bills = 7,000/month
Price Per Bill/Month does not include Bill Print
Paymentus Transaction Fees
The following Paymentus Pricing Model options are included as part of this agreement. These fees arc iii addition to the Per Bill/Monthly fees noted above.

Absorbed Fee Model- Paid by Customer (Organization)
ACH/eCheck $0.25
Absorb credit card (Visa, MC, Discover, Amex) $1.63
Absorb Advanced Payment Methods (Amazon, PayPal, Venmo) $1.63 Absorb non-qualified 2.65%
III. Amendment to Schedule F, Schedule A of the Agreement, Paymentus Service Fee Schedule a. The following language is hereby deleted from Appendix A:
“In addition the customer agrees to amend section 8.1 in the original agreements to include the following new paragraph at the end of the section to read as:
"Paymentus' obligation to indemnify Customer under the section

8.1 shall not apply to any claims related to Customer's failure set forth in the Statement of Work regarding any and all actions by card associations against Paymentus and/or Customer as a result of such refusal shall be solely the Customer's responsibility and the Customer shall hold harmless Paymentus from any claims related to such refusal."
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Any notification from card associations regulations or requirements needing to be addressed will be made available to Paymentus and the Customer understands that some pricing models may be against card brand regulations and could result in noncompliance.” b. Appendix A of Schedule F is hereby deleted, and the following is substituted in lieu thereof:
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Appendix A
Paymentus Service Fee Schedule (Absorb Model)
Paymentus Service Fee charged to the Customer (Organization) will be based on the following table:

Paymentus Service Fees– Absorbed Fee Model
Average Bill Amount: Varies
ACH/eCheck $0.25
Credit/Debit Card $1.63
(Visa, MasterCard, Discover, American Express)
Advanced Payment Methods $1.63
(Amazon, PayPal, PayPal Credit, Venmo, and others as offered by Payments from time to time) Non-Qualified Transactions 2.65%
Chargebacks and returned checks will be billed at $9.95 per chargeback/returned check.

Note: Maximum Amount per Payment is $10,000.00
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Except as expressly stated otherwise in this 1st Amendment, all other terms and conditions of the Software Services Agreement remain unchanged.

IN WITNESS WHEREOF, Harris and the Organization have duly executed this Hosting Service Agreement to be effective on the Effective Date first written above, N. HARRIS COMPUTER CORPORATION CITY OF LAKEWOOD, CALIFORNIA Per: Per:

Name:

Title:

Date:

Name:

Title:

Date:

ASSIGNMENT AGREEMENT

PROPOSITION A LOCAL RETURN FUND EXCHANGE
This Assignment Agreement is made and entered into this 25th day of October, 2022, by the City of Lakewood, California and the 7th day of November, 2022 by the City of West Hollywood, California with respect to the following facts:

A. The City of West Hollywood provides two community shuttles, demand-response services as well as bus pass and on-call transportation subsidies to serve people with disabilities and the general public. Given the grave traffic congestion and parking problems of the City, West Hollywood is committed to reducing auto dependency by providing alternative modes of transportation. Adequate Proposition A Local Return funding for transit services is not available given the limited amount of West Hollywood's Local Return allocation and the needs of other priority transit projects in the City.

B. The City of Lakewood has uncommitted Proposition A Local Return funds which could be made available to West Hollywood to assist in providing the services discussed in Paragraph A of this Agreement. In exchange for the assignment by West Hollywood of the amount of its general funds indicated in Section 1 below, the City of Lakewood is willing to assign uncommitted Proposition A Local Return funds to West Hollywood for the purpose identified in Paragraph A.

Now, therefore, in consideration of the mutual benefits to be derived by the parties and of the premises herein contained, it is mutually agreed as follows:

1. Exchange. The City of Lakewood agrees to assign a total of $1,000,000 of its Proposition A Local Return funds to West Hollywood. The full $1,000,000 is from the City of Lakewood’s FY 21/22 fund balance. In return, West Hollywood agrees to assign $700,000 of its general funds to the City of Lakewood. The exchange rate is $.70/$1.00.

2. Consideration. The City of Lakewood shall assign the agreed upon Proposition A Local Return funds to West Hollywood in one lump-sum payment. West Hollywood shall assign the agreed upon general funds to the City of Lakewood in one lump-sum payment. The payments shall be due and payable upon execution of this Agreement, and upon approval by Los Angeles County Metropolitan Transportation Authority (LACMTA) of the City of West Hollywood’s project description. Each payment shall be based on the exchange rate in accordance with the exchange rate described in Paragraph 1 (above).

3. Term. This Agreement is effective on the date above written and for such time as is necessary for both parties to complete their mutual obligations under this Agreement.

4. Termination. Termination of this Agreement may be made by either party so long as written notice of intent to terminate is given to the other party at least five (5) days prior to the termination.

5. Notice Notices shall be given pursuant to this Agreement by personal service on the party to be notified, or by written notice upon such party deposited in the custody of the United States Postal Service addressed as follows:

Assignment Agreement
City of Lakewood Approval: October 25, 2022
City of West Hollywood Approval: November 7, 2022
LakewoodAGR2023
A. Thaddeus McCormack
City Manager
City of Lakewood
5050 Clark Ave.

Lakewood, CA 90712
B. David Wilson
City Manager
City of West Hollywood
8300 Santa Monica Blvd.

West Hollywood, CA 90069

6. Assurances
A. West Hollywood shall use the assigned Proposition A Local Return funds only for the purpose of providing the services discussed in Paragraph A of this Agreement and within the time limits specified in LA Metro’s Proposition A Local Return Program Guidelines.

B. Concurrently with the execution of this Agreement, West Hollywood shall provide LAC Metro with the Standard Assurances and Understandings Regarding Receipt and Use of Proposition A funds specified in the Guidelines regarding the use of the assigned Proposition A Local Return funds.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their respective officers, duly authorized, by the City of Lakewood on October 25, 2022, and by the City of West Hollywood on November 7, 2022.

CITY OF LAKEWOOD CITY OF WEST HOLLYWOOD
BY BY:

Jose Gomez, Director of Finance &
Administrative Services
Lorena Quijano, Director of Finance
and Technology Services
BY: BY:

Thaddeus McCormack , City Manager David Wilson, City Manager ATTEST:
______________________________ BY:

Jo Mayberry, City Clerk Melissa Crowder, City Clerk

1 RFA:bag A22-03037
00106011.DOC
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OFFICE OF THE CITY ATTORNEY
CHARLES PARKIN, City Attorney
411 West Ocean Boulevard, 9th Floor
Long Beach, CA 90802-4664

A G R E E M E N T
WD-_____
THIS AGREEMENT, is made and entered into this ________ day of ____________, 2022, by and between the CITY OF LAKEWOOD, a municipal corporation, hereinafter referred to as “Lakewood”, and the BOARD OF WATER COMMISSIONERS OF THE CITY OF LONG BEACH, acting on its own behalf and on behalf of the City of Long Beach, hereinafter referred to as “Board” or “LBWD”.

WHEREAS, Board and Lakewood own, operate and maintain their own public water supply and distribution systems; and
WHEREAS, said municipal water supply and distribution systems, although contiguous, are not presently inter-connected at the proposed location; and WHEREAS, said public water supply and distribution systems are presently connected by an existing interconnection facility located at the corner of Carson Street and Palo Verde Avenue pursuant to Agreement WD-2437 between the Board and Lakewood; and
WHEREAS, it has been determined to be of mutual and equal benefit to Board and Lakewood that their respective systems be further physically and hydraulically inter-connected at a secondary location;
NOW, THEREFORE, it is hereby agreed by Board and Lakewood that a second inter-connection facility and pipeline extensions from each system to the interconnection facility, as defined in Section 1, between the public water supply and distribution systems of Lakewood and the LBWD shall be designed, constructed, operated and maintained in accordance with the following terms and conditions:

1. LOCATION, OWNERSHIP AND ACCESS. The interconnection facility shall be the meter, control valves, backflow preventor, and related piping between the isolation valves linking the Lakewood and LBWD water systems in the general vicinity of the southeast intersection of Cherry Avenue and Cover Street, adjacent to the common boundary between the City of Lakewood and the City of Long Beach (“Interconnection 2 RFA:bag A22-03037
00106011.DOC
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OFFICE OF THE CITY ATTORNEY
CHARLES PARKIN, City Attorney
411 West Ocean Boulevard, 9th Floor
Long Beach, CA 90802-4664
Facility”), as more particularly depicted on Exhibit “A” attached hereto, with the final exact location to be mutually approved by each party. The Interconnection Facility shall be jointly owned except as otherwise provided herein. The Interconnection Facility shall be installed in the public right-of-way of the City of Lakewood. All piping upstream of the Interconnection Facility and including the Interconnection Facility isolation valve on the upstream side shall be owned, operated, and maintained by Lakewood. All piping downstream of the Interconnection Facility and including the Interconnection Facility isolation valve on the downstream side shall be owned, operated, and maintained by Board. Lakewood shall allow LBWD employees unconditional access to the Interconnection Facility and all downstream valves and pipe owned by Board.

2. WATER TO BE MEASURED. All water passing through the
Interconnection Facility shall be metered. Board shall be responsible for meter reading and maintaining the meter reading records during the term of this Agreement, and shall maintain such metering records for one (1) year following termination. Lakewood shall have rights to audit the meter reading records. Meter readings shall be taken and recorded no less often than once every month. Readings shall be performed on the last day of the month or as soon thereafter as reasonably possible. The cost of meter reading and record keeping shall be borne entirely by Board. Board shall be responsible for gathering the information required to measure the flow of water through the Interconnection Facility.

Lakewood shall have rights to audit such measurement calculations upon reasonable advance written notice.

4. FACILITY DESIGN AND CONSTRUCTION. Interconnection Facility design shall be the responsibility of Lakewood and subject to LBWD approval. The cost of design of the Interconnection Facility shall be 100% borne by Lakewood. The construction and installation costs of the Interconnection Facility will be split evenly by Lakewood and the Board.

5. FACILITY OPERATION AND MAINTENANCE. LBWD shall provide for the periodic operation and preventive maintenance of the Interconnection Facility including 3 RFA:bag A22-03037
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OFFICE OF THE CITY ATTORNEY
CHARLES PARKIN, City Attorney
411 West Ocean Boulevard, 9th Floor
Long Beach, CA 90802-4664
testing, at no cost to Lakewood. Lakewood shall provide for major maintenance or repair, at no cost to Board. Lakewood and Board shall have free access to the Interconnection Facility at any time for the purpose of observation and inspection.

6. PAYMENT FOR WATER. The rate charged for water flowing through the Interconnection Facility from the Lakewood system to the LBWD system shall be based on the measurements taken from the Interconnection Facility. The rates shall be established pursuant to a separate agreement between Board and Lakewood.

7. ADMINISTRATION.

A. Each party shall appoint one Operating Representative and shall have the right to change the designation of its Operating Representative. Each party shall designate its initial Operating Representative within thirty (30) days after execution of this Agreement and shall provide notice of the name to the other party, as well as prompt notice of any subsequent change in the designation.

B. The Operating Representatives shall jointly:
(i) establish procedures and standard practices consistent with this Agreement for the guidance of dispatchers and other operating employees as to matters affecting delivery of water, interchange of water, and other similar operating matters; (ii) establish procedures and practices to determine costs in connection with transactions under this Agreement;
(iii) establish detailed arrangements for scheduling, communication and implementation of operating procedures; and
(iv) do such other things that are required by this Agreement or necessary to implement this Agreement provided, however, that the Operating Representatives shall have no authority to modify any part of this Agreement.

8. FORCE MAJEURE. No party shall be considered in default, other than obligations of that party to pay amounts due under this Agreement, if prevented from performance by force majeure. The term “force majeure” means any cause beyond the reasonable control of the party, such as failure of or threat of failure of facilities, flood, 4 RFA:bag A22-03037
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OFFICE OF THE CITY ATTORNEY
CHARLES PARKIN, City Attorney
411 West Ocean Boulevard, 9th Floor
Long Beach, CA 90802-4664
earthquake, storm, fire, lightning, epidemic, war, economic embargo, riot, civil disturbance or disobedience, labor dispute, labor or material shortage, sabotage, or restraint by court order or public authority. No party shall, however, be relieved of liability for failure of performance if such failure is due to causes arising from its own negligence or causes which it fails to remove or remedy with reasonable dispatch. A party shall not be required to settle any strike or labor dispute in which it may be involved. A party unable to perform under this Agreement shall give prompt notice of that fact to the other party and shall exercise due diligence to remove its inability to perform with all reasonable dispatch.

9. NOTICES. Any notice identified in this Agreement or given or made in connection with this Agreement shall be in writing and personally delivered or deposited in the U.S. Postal Service, certified, return receipt, as follows:

To Board: General Manager
Long Beach Water Department
1800 E. Wardlow Road
Long Beach, CA 90807
To Lakewood: Director of Water Resources
City of Lakewood – Water Resources Dept.
5050 Clark Avenue
Lakewood, CA 90712
Notice shall be deemed given on the date shown on the return receipt or on the date personal delivery is made, whichever occurs first. A party may at any time, by notice, change the designation or the address stated above. This Section does not apply to notices and requests of a routine character in connection with delivery or receipt of water or in connection with operation of the Interconnection unless specifically required in this Agreement. Routine notices and requests shall be given in whatever manner the Operating Representatives from time to time mutually determine.

10. WAIVER. The acceptance of a delivery of water, the payment for a delivery of water, or any other performance shall not operate as a waiver of any part of this Agreement or of any right to indemnity stated in this Agreement. The waiver of a right or breach of this Agreement shall not constitute a waiver of any other right or breach. 5 RFA:bag A22-03037
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OFFICE OF THE CITY ATTORNEY
CHARLES PARKIN, City Attorney
411 West Ocean Boulevard, 9th Floor
Long Beach, CA 90802-4664

11. HOLD HARMLESS. Each party agrees to indemnify, defend and hold harmless the other party, its officers, agents, employees, representatives and volunteers from and against all claims, demands and actions in connection with the negligent conduct or willful misconduct of the indemnifying party, its officers, agents, employees, representatives and volunteers in the performance of this Agreement.

12. TERM. This Agreement shall remain effective until either party notifies the other at least six (6) months prior to the date the party wishes to terminate this Agreement. Upon such termination, Lakewood shall either remove its facilities within the City of Long Beach or close the connection to the satisfaction of both parties and LBWD shall pay for one-half of the cost thereof within 30 days of receipt of a bill from Lakewood.

IN WITNESS WHEREOF, each utility hereto has caused this Agreement to be executed in duplicate by its respective authorized officers.

CITY OF LAKEWOOD, a municipal
corporation
________________, 2022 By____________________________
Mayor
APPROVED AS TO FORM: ATTEST:
__________________________ _______________________________ City Attorney City Clerk
"Lakewood"
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OFFICE OF THE CITY ATTORNEY
CHARLES PARKIN, City Attorney
411 West Ocean Boulevard, 9th Floor
Long Beach, CA 90802-4664

BOARD OF WATER COMMISSIONERS

OF THE CITY OF LONG BEACH
________________, 2022 By ___________________________
General Manager
“Board”
This Agreement is approved as to form on___________________, 2022.

CHARLES PARKIN, City Attorney
By____________________________

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OFFICE OF THE CITY ATTORNEY
CHARLES PARKIN, City Attorney
411 West Ocean Boulevard, 9th Floor
Long Beach, CA 90802-4664

EXHIBIT A
LOCATION MAP – 2nd INTERCONNECTION (LONG BEACH & LAKEWOOD) Lakewood 12” Line
Long Beach 24” Line (Approx.) (Approx.)
Proposed
2nd Interconnection

Lakewood City CouncilOctober 25, 2022

Lakewood City Council
October 25, 2022