Agenda packet, regular meeting — Paramount City Council, June 25, 2024 (part 2 of 2)

WHEREAS, the City General Fund therefore will lend the Water Fund $850,000 immediately and $850,000 in fiscal year 2024-25 on the terms and conditions set out in the Agreement Regarding Interfund Loan Between Water Fund and General Fund attached as Exhibit “A”; and
WHEREAS, repayment of the interfund loan with 4% simple interest will occur after June 30, 2026 to the extent that funds are available and such repayment shall be subordinate to all outstanding agreements with I-Bank.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARAMOUNT AS FOLLOWS:

SECTION 1. The above recitations are true and correct.

SECTION 2. The City Council finds that it is necessary to provide such interfund loans from the General Fund to the Water Fund on the terms set out in the Agreement to meet the terms and conditions of the I-Bank agreements, to support upgrades to the water system and to benefit water customers and the residents of the City.

SECTION 3. The City Council approves the Agreement Regarding Interfund Loan Between Water Fund and General Fund attached and incorporated as Exhibit “A” and authorizes and directs the City Manager or designee to carry out its terms and conditions.

SECTION 4. This Resolution shall take effect immediately upon its adoption.

PASSED, APPROVED, and ADOPTED by the City Council of the City of Paramount this 25th day of June 2024.

Annette C. Delgadillo, Mayor
ATTEST:

Heidi Luce, City Clerk
1 Agreement Regarding Interfund Loan Between Water Fund and General Fund This Agreement is between the Water Fund (“Water Fund”) and the City of Paramount through its General Fund (“General Fund”), as approved by the City of Paramount City Council (“City Council”) effective as of June 25, 2024.

Recitals
A. In May 2010, the City entered into an Enterprise Fund Installment Sale Agreements BC08-095 and BC08-122 with California Infrastructure and Economic Development Bank ( “I-Bank”). The agreement between I-Bank and the City of Paramount was a loan of $5,500,000 to construct a water well and other water treatment facilities. The loan is to be repaid by August 2039, over 30 years at

3.31% annual interest. As of June 30, 2023, the outstanding balance is $3,826,306.

B. In May 2018, another agreement was made between the I-Bank and the City for a loan of $6,700,000 to construct a water well (Well 16) and other water treatment facilities. The loan is to be repaid by August 2047, over 30 years at 3.03% annual interest. The City has pledged net system revenues of the Water Fund to the repayment of the note. As of June 30, 2023, the outstanding balance is $6,082,734.

C. Per the Installment Sales Agreement, the City is required to demonstrate that Net System Water Enterprise Revenues will exceed 1.2 Maximum Annual Debt Service (MADS) in any future fiscal year.

D. Due to various factors, Well 16 is not yet operational and the City must purchase costlier imported water for its residents. Exacerbated by the spiraling inflation that occurred since the Pandemic, the unanticipated imported water expense has increased the annual operating costs by approximately $2M per year. Once Well 16 is approved to provide potable water, the Water Fund expenses should see a reduction. At present, the State’s Division of Drinking Water is monitoring the well and it is not certain when Well 16 will be approved to provide potable water.

E. On December 12, 2023, the City Council approved the financing of $11,236,354 to purchase and install Advanced Metering Infrastructure (AMI) water meters in an effort to improve water revenue collection, conservation and operational efficiencies. The $11M 20-year term loan is to be repaid utilizing the savings recovered from the accuracy of the residential and commercial water bills and the City’s reduced maintenance cost. However, the full installation of the AMI meters is not expected to be completed until October 2024, and in addition, the City Council gave staff policy direction to phase in full cost recovery of the increased water bills over a 12-month period. Therefore, the Water Fund will not immediately recover sufficient revenues to pay its initial $897K debt service payment for FY 2025.
2 F. These conditions led the Water Fund to the point that the net revenues from the operation will be insufficient to meet the debt service coverage ratio required for the I-Bank agreements, and its fund balance is reduced to an unacceptable level.

The Water Department and City have developed the following plan to remedy these situations.

G. The City Council now wish to document an interfund loan agreement between the Water Fund and General Fund.

Now, therefore, the Parties agree as follows:

1. Recitals. The Recitals set out above are true and correct.

2. Interfund Loan: Effective as of the date of this Agreement, the City Council authorizes an interfund loan to the Water Fund and the recognition of debt between the General Fund and Water Fund in the amount of $850,000 for FY 2023-24 and $850,000 for 2024-2025. (the “Loan Amounts”).

A. Debt to the City: Any and all such Loan Amounts shall become a debt of the Water Fund to the General Fund at the time they are due and shall be shown as such on the City books, records and budget.

B. Interest: The City shall charge interest on the interfund loan at the rate of 4% simple interest per annum. Interest accrual will begin on July 1, 2026, if the interfund loan is not completely repaid to the General Fund by June 30, 2026. Interest accrual will only be on the outstanding principal balance of the loan.

C. Debt Service Schedule. If the Loan Amounts have not been paid in full by June 30, 2026, the Water Fund shall provide the City with a debt payment service schedule which includes the 4% interest rate set out in (B) above. The repayment shall occur to the extent any net revenues are available after payment of all operating expenses and installment payments required to be paid under the Installment Sale Agreements with the I-Bank. The obligation of the Water Enterprise Fund to repay the General Fund shall be subordinate to its obligations under the Installment Sale Agreements.

3. Water Rate Study. In Fiscal Year 2024-25, the Water Fund will conduct a Comprehensive Water Rate Study to determine the most appropriate water rates for the next five years.

4. Term. This Agreement shall continue until terminated by mutual written agreement of the City and Water Fund.
3 5. Miscellaneous. This Agreement may be amended only in writing, executed by both Parties. No waiver of any term or conditions of this Agreement shall be a continuing waiver thereof.

To: Honorable City Council
From: John Moreno, City Manager
By: Heidi Luce, City Clerk
Date: June 25, 2024
SUBJECT: AMENDING THE CITY OF PARAMOUNT POLICY FOR

REIMBURSEMENT OF EXPENSES INCURRED FOR OFFICIAL CITY
BUSINESS AND APPROVING THE FISCAL YEAR 2024-2025

AUTHORIZED CONFERENCE LISTING

BACKGROUND
On October 7, 2005, the Governor signed into law AB 1234 which requires all public agencies to adopt a policy for the reimbursement of expenses incurred for official city business. AB 1234 was codified under Government Code Section 53232 et. seq.

On August 15, 2006, the City Council formally adopted a policy (“Policy”) consistent with the requirements under AB 1234 and is applicable to the City Council, and all the Boards and Commissions of the City that are subject to the Brown Act.

On March 21, 2017, the City Council adopted Resolution No. 17:009 amending the Policy pursuant to Government Code Section 1223 which authorizes a city to provide a vehicle allowance to its City Councilmembers in lieu of reimbursing actual vehicle expenses after such expenses are incurred.

Subsequently, on March 19, 2019, the City Council adopted Resolution No. 19:006 amending the Policy to provide clarification on what is defined as “authorized” and “unauthorized” expenses; to consolidate the rules for reimbursement as they relate to air travel; and to provide Members with more objective guidance in determining whether expenses meet both the spirit and intent of AB 1234.

Most recently, on January 24, 2023, the City Council adopted Resolution No. 23:003 amending and restating the policy to clarify the sections pertaining to Lodging and Outof-Town Meal Expenses.

During the Fiscal Year 2024-2025 budget review process, concern was expressed regarding the steady increase in conference expenses over the last few years and the conference budget was modified to address those concerns for the coming fiscal year.

However, looking at the process holistically, it may be prudent to incorporate language in the Policy to provide a process whereby the City Council reviews and approves authorized conferences annually.

Agenda Report June 25, 2024
RESOLUTION NO. 24:025 Page 2

DISCUSSION
Proposed Policy Amendments
Staff has prepared a proposed amendment to the Policy to incorporate language in Section

3. Specific Occurrences Qualifying for Reimbursement of Expenses Incurred in Official City Business to incorporate language requiring annual City Council approval of authorized conference attendance (shown in redline below):

A. Authorized Expenses
Only that travel/attendance which serves a municipal purpose and is deemed necessary and/or advantageous to the City of Paramount shall be authorized, including:
▪ Communicating with representatives of regional, state and national government on City adopted policy positions;
▪ Attending educational seminars designed to improve officials’ skill and information levels;
▪ Participating in regional, state, national, and international organizations whose activities affect the City’s interests; (e.g. California Contract Cities, League of California Cities, National League of Cities, etc.) as approved by the City Council each year, as part of the budget adoption process; ▪ Attending City Sponsored events;
▪ City business-related reading and educational materials and organizational memberships;
▪ International Travel, with prior approval of the City Council.

Additionally, to provide greater clarification regarding reimbursement for out of town meal expenses, staff is recommending a change to Section 4 Transportation, Meals and Other Reimbursement pertaining to Lodging and Out-of-Town Meal Expenses (shown in redline below).

Out-of-Town Meals
Reasonable and customary expenses for meals are authorized for Members as required to conduct official City duties. Members traveling on City business shall be entitled to reimbursement of expenses incurred for necessary meals not to exceed breakfast, lunch, and dinner in any one day. Reimbursement for meal expenses will be based on the current Internal Revenue Service rates U.S. General Services Administration Per Diem rates for Meals and Incidentals. The allowed sum per meal may be split among meals combined for each given day of travel, as desired, but cannot exceed the total Per Diem rate and should will be reduced accordingly for business taking less than a full business day.

Agenda Report June 25, 2024
RESOLUTION NO. 24:025 Page 3
Fiscal Year 2024-2025 Authorized Conferences
If the Policy as amended above is approved, staff will bring the proposed list of authorized conferences to the City Council for approval as part of the budget adoption process each year. The list below shows the authorized conferences included in this year’s budget.

ORGANIZATION CONFERENCE AUTHORIZED ATTENDEES
California Contract Cities
Association (CCCA)
Annual Municipal Seminar All
California Contract Cities
Association (CCCA)
Fall Educational Summit Delegate + Mayor + Optional*
California Contract Cities
Association (CCCA)
Sacramento Legislative Tour Delegate + Mayor + Optional* California Joint Powers
Insurance Authority (CJPIA)
Elected Officials Summit Delegate + Mayor + Optional*
California Joint Powers
Insurance Authority (CJPIA)
Newly Elected Officials Academy Delegate + Mayor + Optional* California Joint Powers
Insurance Authority (CJPIA)
Risk Management Educational
Forum
All
League of California Cities
(CalCities)
Annual Conference & Expo All
League of California Cities
(CalCities)
City Leaders Summit Delegate + Mayor + Optional*
League of California Cities
(CalCities)
New Mayors & Councilmembers
Academy
Delegate + Mayor + Optional*
National Association of Latino
Elected Officials (NALEO)
Annual Conference Optional*
Southern California Association
of Governments( SCAG)
Regional Conference & General
Assembly
Delegate + Mayor + Optional*
US Conference of Mayors Winter Meeting (Washington DC) Mayor * Councilmembers may select one additional conference of their choice to attend as an optional conference.

Notes:
(1) A Councilmember may trade funding for one of the predetermined conferences for another conference of equal or lesser value.
(2) Mayor may designate an alternate to attend in her place if she elects not to attend a conference.
(3) If the primary delegate is unable to attend, the alternate delegate may attend in their place.

Agenda Report June 25, 2024
RESOLUTION NO. 24:025 Page 4

FISCAL IMPACT
None.

VISION, MISSION, VALUES, AND STRATEGIC OUTCOMES
The City’s Vision, Mission, and Values set the standard for the organization, establish priorities, uniformity and guidelines; and provide the framework for policy decision making. The Strategic Outcomes were implemented to provide a pathway to achieving the City’s Vision. This item aligns with Strategic Outcome No 6: Efficient, Effective, and Fiscally Responsible - Deliver an efficient and effective City government in a fiscally responsible, transparent and collaborative manner.

RECOMMENDED ACTION
A. Read by title only and adopt Resolution No. 24:025.

B. Approve the Fiscal Year 2024-2025 Authorized Conference List.

CITY OF PARAMOUNT

LOS ANGELES COUNTY, CALIFORNIA
RESOLUTION NO. 24:025

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARAMOUNT

AMENDING THE CITY OF PARAMOUNT POLICY FOR

REIMBURSEMENT OF EXPENSES INCURRED FOR OFFICIAL CITY

BUSINESS
WHEREAS, California Government Code Sections 36514.5 and 53232 et. seq. provide that City Councilmembers may be reimbursed for actual and necessary expenses incurred in the performance of official duties; and
WHEREAS, on August 15, 2006, the City Council adopted a policy (“Policy”) for the reimbursement of expenses incurred for official City business as provided for in Government Code Section 53232.2; and
WHEREAS, California Government Code Section 53232.2(f) requires that all expenses that do not fall within the adopted travel reimbursement policy shall be approved by the governing body, in a public meeting before the expense is incurred, except as provided in subdivision (d); and
WHEREAS, on March 21, 2017, the City Council adopted Resolution No. 17:009 amending the Policy pursuant to California Government Code Section 1223 which authorizes a city to provide a vehicle allowance to its City Councilmembers in lieu of reimbursing actual vehicle expenses after such expenses are incurred; and WHEREAS, on March 19, 2019, the City Council adopted Resolution No. 19:006 to clarify the City’s policies in connection with both authorized and unauthorized expenses and air travel expenses and costs associated with performing official duties; and WHEREAS, on January 24, 2024, the City Council adopted Resolution No. 24:003 amending and restating the policy to clarify the sections pertaining to Lodging and Outof-Town Meal Expenses; and WHEREAS, the purpose of this Resolution is to amend the City’s policies to incorporate a list of authorized conference attendance and provide greater clarity regarding reimbursement of expenses related to Local Lodging and Out-of-Town Meals.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARAMOUNT AS FOLLOWS:

SECTION 1. The above recitations are true and correct and incorporated herein.

SECTION 2. The City of Paramount Policy for Reimbursement of Expenses Incurred for Official City Business is hereby amended and restated as shown in Exhibit “A” attached hereto and incorporated herein by reference.

Resolution No. 24:025

Page 2 ends

SECTION 3. This Resolution shall take effect on July 1, 2024.

PASSED, APPROVED, AND ADOPTED by the City Council this 25th day of June 2024.
________________________________
Annette C. Delgadillo, Mayor
ATTEST:
_____________________________
Heidi Luce, City Clerk
Resolution No. 24:025

Page 3 ends

EXHIBIT “A”

CITY OF PARAMOUNT

AMENDED AND RESTATED POLICY

REIMBURSEMENT OF EXPENSES INCURRED

FOR OFFICIAL CITY BUSINESS

PURPOSE
The purpose of this policy is to define and clarify authorized reimbursable expenses in accordance with California Government Code Section 53232 et seq. It includes, but is not limited to travel, business meals, lodging, conference expenses, professional memberships, employee functions, and other related expenditures incurred while conducting City business, and to establish procedures for authorization and reimbursement of such expenses.

BACKGROUND
This policy was adopted under the legal requirements of AB 1234, signed by the Governor on October 7, 2005, and adopted accordingly by the City Council of the City of Paramount on March 19, 2019. This policy may be amended from time to time as required to provide further clarification concerning the policies herein.

POLICY
This policy is applicable to the City Council, and all Boards, Agencies, and Commissions, (hereafter “Agencies”) of the City that are subject to the Brown Act. This includes, but is not limited to the Successor Agency for the Paramount Redevelopment Agency, the Planning Commission, the Parks and Recreation Commission, the Public Safety Commission, the Public Works Commission, and the Senior Services Commission.

In accordance with Government Code Section 53232.2(f), all expenses that do not fall within the adopted travel reimbursement policy must be approved for Members, by the related Agency in a public meeting before the expense is incurred, if possible.

1. Definitions
For the purpose of this policy, the following definitions will be used:
▪ Elected Officials: those individuals elected by the Citizens to office ▪ Appointed Officials: members of all Paramount Commissions, Boards and Agencies appointed and subject to the Brown Act
▪ Agency: the City Council, and all Paramount Commissions, Boards and Agencies ▪ Member: any elected or appointed official subject to this policy ▪ Reimbursable Expense: expenses incurred and paid for by Members Resolution No. 24:025

Page 4 ends

2. Pre-Payment by City
Whenever possible, Members should arrange for the City to be directly billed or prepay by City credit card for expenses incurred for official City business, including travel arrangements and lodging. Expenses paid directly by the City are not “reimbursable expenses” within the meaning of this Policy.

3. Specific Occurrences Qualifying for Reimbursement of Expenses Incurred in Official City Business
Government Code Section 53232.2(b) requires the City to specify the types of occurrences that qualify a Member to receive reimbursement of expenses relating to travel, meals, lodging, and other actual and necessary expenses. Accordingly, the following list contains expense classifications in determining expenses authorized to be expended for official City business, including travel and related expenses, memberships in professional organizations, and subscriptions to business-related newspapers and journals. The principle of "actual and necessary" should be used when deciding to expend taxpayer money.

Resolution No. 24:025

Page 5 ends

B. Unauthorized Expenses
The following expenditures incurred by Members in the course and scope of their official duties shall not be reimbursed without prior City Council approval:
▪ The personal portion of any trip;
▪ Family expenses, including those of a partner when accompanying Members on official business, child or pet care;
▪ Entertainment expenses, including theatre, shows, movies (either in room or at the theatre), sporting events (including gym, massage, and/or golf related expenses), or other cultural events;
▪ Political or charitable contributions or events;
▪ Traffic and parking citations/fines;
▪ Personal losses incurred while on City business, subject to the City’s claims procedures

4. Transportation, Meals and Other Reimbursement
All travel on City business shall be planned to provide for the most economical mode of transportation reasonably available. Reasonable travel modes include:
▪ Air
▪ Private car
▪ City-owned car
Travel expenses shall be allowed or reimbursed for days actually spent on City business, for programmed days of a conference or meetings, and for time spent in travel to and from these events. Expenses shall be computed for the days of the conference or event attended and for travel days not to exceed one day before and after the event and shall be allowed only if time and/or travel schedules prohibit travel at reasonable hours on the actual beginning and ending days of a conference.

Reasonable hours are defined as between 7 a.m. and 11 p.m.

Air Travel
Allowable costs for air travel shall be calculated by using the shortest and most direct route with the least number of en-route stops. All air travel shall be booked as far as advance as possible, so as to receive the lowest fares possible except where the lowest fare is for an overnight flight, which may be chosen by a Member but is not required. Members shall use government and group rates for travel offered in conjunction with the event when available. Members shall not be reimbursed for the cost of first-class air travel except in extraordinary circumstances and approved by the City Council. Pre-payment by the City is the preferred method of payment, but where circumstances require it, travel can be paid for on a personal credit card.

Credit card purchases will be reimbursed only for the actual round-trip fare and only after the trip. Members may at their own expense pay to upgrade their airline accommodations.

Resolution No. 24:025

Page 6 ends

Private Automobile
Members will be reimbursed actual mileage for the use of their private cars in travel to and from designated place(s) on City business outside the City. The reimbursement rate will be at the current Internal Revenue Service Rate. Private automobile reimbursement shall not apply to City Councilmembers as those Members receive a vehicle allowance for the use of their vehicles in performance of City functions.

Garage and Parking Expenses
Expenses for necessary parking and storage of private or City vehicles are authorized. Receipts should be provided to obtain reimbursement.

Vehicle Rentals, Taxi, Public Transit, and Ride-Hailing (e.g. Uber & Lyft) Services Out-of-town expenses for such transportation may be authorized where reasonable and necessary to conduct City business. Receipts shall be provided to obtain reimbursement for vehicle rentals and, when feasible, for taxi, transit and ride-hailing expenses. When vehicle rental is chosen over other transportation services, there should be a business reason or economic benefit to support the rental decision. If vehicle rental is subsequently denied, the related parking fees will also be denied and the employee will be reimbursed the round trip shuttle or taxi charges.

A rental car used as the primary source of transportation from a Member’s home to and from the destination is considered a private automobile and will be reimbursed actual expenses not to exceed mileage allowance.

Lodging
Expenses will be allowed for adequate lodging. Price is an issue in selecting “adequate lodging.” Prudence and good stewardship should be used when selecting a hotel. Itemized receipts for lodging must be provided to obtain reimbursement.

Lodging in connection with a conference or event held in a hotel qualifies as adequate lodging for purposes of this policy. If lodging at the event hotel is not available, the Member shall select lodging at a hotel that is comparable in quality and location and consistent with the requirements of this policy.

Lodging expenses are limited to the cost of the room plus related taxes and will be reimbursed after the stay. Personal expenses incurred at the hotel, such as movies and laundry, are not reimbursable.

Local lodging, defined as within 50 miles or less than a 45-minute one-way commute from City Hall, will not be reimbursed without prior approval by the City Manager.

Specific events that may qualify for approval include being a conference presenter before 9 a.m., or an early morning start following a meeting/function the night before that ends after 9 p.m.

Resolution No. 24:025

Page 7 ends

Out-of-Town Meals
Reasonable and customary expenses for meals are authorized for Members as required to conduct official City duties. Members traveling on City business shall be entitled to reimbursement of expenses incurred for necessary meals not to exceed breakfast, lunch, and dinner in any one day. Reimbursement for meal expenses will be based on the current U.S. General Services Administration Per Diem rates for Meals and Incidentals. The allowed sum per meal may be combined for each given day of travel, as desired, but cannot exceed the total Per Diem rate and will be reduced accordingly for business taking less than a full business day.

General Business Meals
Members who, during the normal course of performing their duties, must provide meals for representatives of other governmental agencies or other persons doing business with the City in order to most effectively execute their responsibilities are authorized to exceed the meal allowance, but must use prudent judgment and are subject to challenge for excessive amounts. In such cases, the meal must be documented with a description of the purpose of the meal(s), including an explanation of its necessity to the City; and a list of all persons, including other Members who were in attendance, specifying their organization and/or title.

Tips and Gratuities
Reasonable expenses for tips are allowable for meals (as limited above), hotel, and transportation purposes, with or without a receipt.

Registration Fees
Convention or meeting registration fees qualify for reimbursement. The City will prepay conference registrations prior to the date of the event. In cases where early registration is not possible, a receipt or registration form documenting the fee must be provided with the reimbursement request. In all cases, a brochure or registration document must accompany the payment voucher or petty cash voucher.

Telephone and Fax
Telephone and fax expenses may be incurred only for the conduct of City business.

One daily telephone call to a Member's family for a reasonable duration will be reimbursed by the City. Members are encouraged to use cell phones when available.

No Shows and Late Cancellation
This section addresses situations where a Member fails to attend a conference or general business meeting, after incurring expenses for that event. Such expenses may include conference fees, prepaid hotel charges, and airline charges. If a Member is unable to attend a planned trip, including a conference or general business meeting, it is the Member’s responsibility to ensure that another Member or City employee takes his/her place or that any prepaid fees are refunded to the City. For any fees not fully refunded, the Member shall attach a written explanation to the Travel Reimbursement Request form addressing the reason(s) the Member Resolution No. 24:025

Page 8 ends

was unable to attend.

Miscellaneous
All items of expense otherwise unclassified shall be considered in this category.

Examples of such expenses which may be authorized are public stenographer fees, duplicating expenses, memberships in professional City-related organizations, and the cost of publications of value to the City or to the Member in furtherance of his/her official duties. Other expenses as necessary when traveling on City business may be allowed and should be included within this classification when requesting reimbursement.

It is the policy of the City that no Member shall sustain personal monetary loss as a result of duties performed in the service of the City. However, all expenditures and requests for reimbursement shall logically relate to the conduct of City business and shall be “necessary” to accomplish the purposes of such business and shall be “reasonable” in amount.

5. Procedures for Reimbursement of Travel Expenses
Members shall submit Expense Reports within 60 days after incurring the expense, and the reports shall be accompanied by the receipts documenting each expense.

Required documentation may include, but is not limited to:
▪ Credit card slip or meal receipt
▪ Hotel receipt
▪ Conference brochure
▪ Meeting agenda
▪ Statement of trip or meeting purpose
▪ List of other attendees at a meal or meeting
The reason for the expenses should be clearly documented on the Expense Report or in the attached documents, if not otherwise obvious.

Public Trip Meeting Report
In accordance with Government Code Section 53232.3(d), a Member requesting reimbursement shall provide a brief report on meetings attended at the expense of the local Agency at the next regular meeting of the Agency. Reports may be oral or in writing. If written, reports may be considered on the consent calendar of the agenda, if feasible.

Resolution No. 24:025

Page 9 ends

6. Ethics Training
Each Member shall receive at least two hours of training in general ethics principles and ethics laws relevant to his or her public service every two years, with the initial training occurring before January 1, 2007. Newly elected/appointed Members shall receive ethics training no later than one year from the first day of service and every two years thereafter. The form of such training shall meet the requirements of California Government Code Section 53234 et seq.

To: Honorable City Council
From: John Moreno, City Manager
By: Margarita Matson, Public Safety Director
Danny Elizarraras, Management Analyst
Date: June 25, 2024
SUBJECT: CARDIO AND WEIGHT ROOM FITNESS EQUIPMENT

BACKGROUND
On December 4, 2023, Public Safety staff generated a digital survey for Los Angeles County Sheriff’s Department personnel assigned to Paramount for Substation amenities.

The survey was intended to see if LASD personnel were content with the current Substation amenities and provided an opportunity for deputies to share any suggested amenities. The survey was a three-question survey with a multiple-choice format and a fourth question that allowed deputies to provide input for new or enhanced amenities.

The survey results were shared with the Public Safety Director on January 11, 2024.

Twenty-five Paramount-assigned deputies participated in the survey. Thirteen comments were provided in the input question. Of those 13 comments, ten were related to new or enhanced fitness equipment for the Substation gym.

DISCUSSION
Request For Proposal
On April 15, 2024, the City posted a request for proposals (RFP) for cardio and weight room fitness equipment for the Substation gym equipment. The RFP closed on May 9, 2024. The City received one proposal for the fitness equipment enhancements. On May 23, 2024, an interview was conducted. The interview panel was composed of City and Paramount-assigned LASD personnel. Based on the evaluation criteria established on the RFP, the proposer was evaluated on the firm’s qualifications, work plan, project staff, cost, references, support, timeline, and project management.

Proposed Cardio and Fitness Equipment
After a comprehensive RFP evaluation, staff recommends Coast Fitness for the fitness equipment enhancements for the Substation gym. Coast Fitness is an exercise equipment sales and service provider that has been in business since 1990 and specializes in small—to medium-sized commercial gyms. Their client list includes many Agenda Report June 25, 2024
AWARD OF CONTRACT Page 2
public sector entities, such as the Anaheim Police Department, Fontana Police Department, Newport Beach Police, Orange County Sheriff’s Department, and Santa Ana Fire Department.

Cost
In their RFP submission, Coast Fitness provided 17 fitness equipment items (Attachment A). During the evaluation interview, staff chose 13 of the 17 proposed items (Attachment B). The 13 recommended items align with the comments shared by LASD in the Substation amenities survey. The Coast Fitness exercise equipment will come with a 10- year frame warranty, a 5-year parts warranty, and a 3-year labor warranty. In addition, a 1-year free maintenance plan (4 visits) is included. The cost of the 13 commercial-grade fitness equipment items is $49,051.33. The cost includes delivery, installation, and sales tax.

FISCAL IMPACT
An appropriation in the amount of $50,000 for this service was included in the FY 2024- 25 Adopted Budget utilizing the Equipment Replacement Fund.

VISION, MISSION, VALUES, AND STRATEGIC OUTCOMES
The City’s Vision, Mission, and Values set the standard for the organization, establish priorities, uniformity and guidelines; and provide the framework for policy decision making. The Strategic Outcomes were implemented to provide a pathway to achieving the City’s Vision. This item aligns with Strategic Outcome No 5: Attractive and WellMaintained Infrastructure - Develop and maintain City-owned infrastructure, parks, facilities, and amenities that enhance quality of life and the attractiveness of the community.

RECOMMENDED ACTION
Award the contract for cardio and weight room fitness equipment to Coast Fitness in the amount of $49,051.33.

Estimate
DATE
5/21/2024
ESTIMATE #
8776

NAME / ADDRESS
City Of Paramount

DANNY ELIZARRARAS
Management Analyst | City of Paramount
[email protected]
P: (562) 220-2002
4130 Tigris Way
Riverside, Ca. 92503
Phone: (951) 736-7406
Fax: (951) 736-9662

TERMS REP
CG
[email protected]
TOTAL
Please Sign and Fax Back
Approved By:___________________________
Signature_________________ Date:________
Office Use Only
Date Faxed:________________________
Parts Ordered:______________________
Completion Date:____________________

DESCRIPTION QTY COST TOTAL
Nautilus Freedom rack Nautilus
W: 75 IN (191 CM)
L: 83 IN (211 CM)
H: 90 IN (229 CM)
STACK WEIGHT: N/A
OVERALL WEIGHT: 655 LBS (297 KG)
SHIPPING WEIGHT: 829 LBS (376 KG)
Warranty :

FRAME:10 Years
PARTS:5 Years
LABOR:1 Year
1 5,399.00 5,399.00T
Startrac Treadmill(s) S SERIES TRX TREADMILL W/LCD
W: 32 IN (81 CM)
L: 81 IN (206 CM)
H: 63 IN (160 CM)
MAX USER WEIGHT: 500 LBS (227 KG)
PRODUCT WEIGHT: 425 LBS (193 KG)
10 years frame
5 years parts
3 years Labor
2 5,400.00 10,800.00T

Page 1 ends

Estimate
DATE
5/21/2024
ESTIMATE #
8776

NAME / ADDRESS
City Of Paramount

DANNY ELIZARRARAS
Management Analyst | City of Paramount
[email protected]
P: (562) 220-2002
4130 Tigris Way
Riverside, Ca. 92503
Phone: (951) 736-7406
Fax: (951) 736-9662

DESCRIPTION QTY COST TOTAL

S SERIES RECUMBENT BIKE, W/LCD - BLACK
10 years frame
5 years parts
3 years Labor
1 2,810.00 2,810.00T
Stairmaster Step-Mill 4 SERIES 4G LCD
Width: 29in (74cm)
Length: 54in (137cm)
Height: 64in (163cm)
Max User Weight: 350lb (159kg)
Product Weight: 348 LBS (158 KG)

10 years frame
5 years parts
2 years Labor
1 5,700.00 5,700.00T
Assult Cycle Elite 1 1,199.00 1,199.00T
Nautilus Instinct Multi Bench Press

WARRANTY
FRAME10 Years
PARTS5 Years
LABOR1 Year
1 2,995.00 2,995.00T

Page 2 ends

Estimate
DATE
5/21/2024
ESTIMATE #
8776

NAME / ADDRESS
City Of Paramount

DANNY ELIZARRARAS
Management Analyst | City of Paramount
[email protected]
P: (562) 220-2002
4130 Tigris Way
Riverside, Ca. 92503
Phone: (951) 736-7406
Fax: (951) 736-9662

DESCRIPTION QTY COST TOTAL
Kamway Olympic bar 7 foot Gympak 7ft / 20 KG Olympic Hybrid Power Lifting Bar - 1,000 lb SKU: B1000PB
1 year warranty against Manufacturer defects
1 175.00 175.00T
Flat Bench Nautilus Instinct

WARRANTY
FRAME10 Years
PARTS5 Years
LABOR1 Year
1 895.00 895.00T
Nautilus Instinct Adjustable bench

WARRANTY
FRAME10 Years
PARTS5 Years
LABOR1 Year
1 895.00 895.00T
Nautilus Instinct Circuit Machine Lat Pull down

WARRANTY
FRAME10 Years
PARTS5 Years
LABOR1 Year
1 2,995.00 2,995.00T

Page 3 ends

Estimate
DATE
5/21/2024
ESTIMATE #
8776

NAME / ADDRESS
City Of Paramount

DANNY ELIZARRARAS
Management Analyst | City of Paramount
[email protected]
P: (562) 220-2002
4130 Tigris Way
Riverside, Ca. 92503
Phone: (951) 736-7406
Fax: (951) 736-9662

DESCRIPTION QTY COST TOTAL
Nautilus Instinct Circuit Machine Leg Press

WARRANTY
FRAME10 Years
PARTS5 Years
LABOR1 Year
1 3,633.00 3,633.00T
Nautilus Instinct Circuit Machine Cable Machine

WARRANTY
FRAME10 Years
PARTS5 Years
LABOR1 Year
1 3,995.00 3,995.00T
Delivery And Installation of New Fitness Equipment 1 3,000.00 3,000.00T

Page 4 ends

Estimate
DATE
5/21/2024
ESTIMATE #
8776

NAME / ADDRESS
City Of Paramount

DANNY ELIZARRARAS
Management Analyst | City of Paramount
[email protected]
P: (562) 220-2002
4130 Tigris Way
Riverside, Ca. 92503
Phone: (951) 736-7406
Fax: (951) 736-9662

DESCRIPTION QTY COST TOTAL
*****MAINTENANCE***** $1200.00 value : FREE! 1st year, 4 total visits.

Coast Fitness Repair Shop Preventive Maintenance programs are a great way to get the most out of your equipment investment! We work with you to set up monthly, quarterly or bi-annual routine maintenance schedules.

During preventive maintenance visits we:
- Inspect and test product safety features / mechanisms - Inspect and adjust drive, timing and running belts
- Check for worn cables, belts and pulleys
- Check and log mileage, amp draw and diagnostics / error codes - Check auto-lube wax levels and motor brushes / commutator - Clean and lubricate chains, bearings and guide rods
- Adjust / tighten loose hardware, cables and belts, belt tracking - Perform full functional tests
- Thoroughly wipe down equipment, vacuum under motor cover Routine maintenance can identify potential failures before they occur, eliminating un-scheduled service calls and equipment down-time. In general, industry pros recommend that maintenance be performed every 250 hours of use to ensure equipment safety and reasonable service life. Call for a Preventive Maintenance Program price quote. 1 0.00 0.00T
Sales Tax 10.25% 4,560.33

Page 5 ends

$49,051.33
To: Honorable City Council
From: John Moreno, City Manager
By: Adriana Figueroa, Public Works Director
Date: June 25, 2024
SUBJECT: LED LIGHTING CONVERSION (CITY PROJECT NO. 9490)

BACKGROUND
Funding for this project was included in the Fiscal Year (FY) 2023-24 Capital Improvement Projects Budget. The project included the replacement of interior and exterior lighting to light-emitting diode (LED) lighting at the City Yard. This was done to further our energy efficiency practices while at the same time bringing much brighter and higher visibility lighting into employee workspace areas.

On February 22, 2024, the Director of Public Works opened bids for the project, and the project was awarded to AMTEK Construction at the City Council meeting on March 12, 2024.

DISCUSSION
The work performed under this contract has been inspected under the supervision of the Public Works Director, in conformance with Section 6-8 of the Standard Specifications for Public Works Construction.

The project was completed on April 21, 2024, and the Notice of Completion will be filed with the Los Angeles County Recorder’s Office after approval by the City Council. The contract retention of $8,407 will be held for thirty-five (35) days from that date.

The final project cost is $84,070, which included the necessary change order is within the budgeted amount of $87,926.30

FISCAL IMPACT
The project was completed within the budgeted amount. No additional appropriations are needed.

Agenda Report June 25, 2024
ACCEPTANCE OF WORK – LED LIGHTING CONVERSION Page 2

VISION, MISSION, VALUES, AND STRATEGIC OUTCOMES
The City’s Vision, Mission, and Values set the standard for the organization, establish priorities, uniformity and guidelines; and provide the framework for policy decision making. The Strategic Outcomes were implemented to provide a pathway to achieving the City’s Vision. This item aligns with Strategic Outcome No 5: Attractive and WellMaintained Infrastructure - Develop and maintain City-owned infrastructure, parks, facilities, and amenities that enhance quality of life and the attractiveness of the community.

RECOMMENDED ACTION
Accept the work performed by AMTEK Construction, Orange, California, for the LED Lighting Conversion (CIP 9490), and authorize payment of the remaining retention.

To: Honorable City Council
From: John Moreno, City Manager
By: John Carver, Planning Director
Leslie Corrales, Planning Intern
Date: June 25, 2024
SUBJECT: CITY COUNCIL PERMIT FOR LIVE ENTERTAINMENT – GRACIAS CAFÉ, LLC DBA GRACIAS CAFECITO

BACKGROUND
This application is a request by Gracias Café, LLC dba Gracias Cafecito for a City Council Permit for live entertainment at 15739 Downey Avenue in the C-3 (General Commercial) zone. Gracias Cafecito is a coffee shop and bakery. Soon after opening to strong business in March 2024, the owners began looking to enhance their customer experience by proposing live entertainment.

On February 7, 2024, the Planning Commission approved Conditional Use Permit (CUP) No. 953, allowing the applicant to operate a coffee shop with indoor customer seats at the subject suite at 15739 Downey Avenue in the Paramount Plaza.

DISCUSSION
Request
The applicant is requesting a City Council Permit for “music performances” and “poetry readings” on Fridays and Saturdays from 7:00 a.m. to 6:00 p.m. No more than 10 participants would participate on each date. The format is open to a mix of performers, including poets, literature readings, and acoustic musicians. There would be an amplified microphone, but it would be kept at a low to moderate level.

The stage area is depicted in the following floor plan as “Performance Area”.

Agenda Report June 25, 2024
RESOLUTION NO. 24:026 Page 2
Floor Plan
Below is the floor plan of the suite. The “Performance Area” is highlighted in orange.

Photo
Below are photos depicting the outside front view of the suite and the inside where the performance area will be.

Agenda Report June 25, 2024
RESOLUTION NO. 24:026 Page 3
Review
As required by the Municipal Code, the Public Safety Department and the Los Angeles County Sheriff’s Department have reviewed the application. They have no objections to the format of this application and recommend the inclusion of a six-month City Council review. The review is included as a condition of approval to ensure the long-term compliance of conditions of approval and safeguard the surrounding residential community and businesses.

Conditions of Approval
As with all applications requesting City Council authorization for live entertainment, conditions of approval are included. The following is the complete list of recommended conditions of approval:

1. The City Council Live Entertainment Permit shall not be effective for any purposes until the business owners/applicant have first filed with the Planning Department a sworn affidavit both acknowledging and accepting all conditions of approval to this Live Entertainment Permit. The affidavit shall be submitted by Friday, July 12, 2024. Failure to provide the City of Paramount with the requisite affidavit within the time stated hereinabove shall render the Live Entertainment Permit void.

2. Should the Public Safety Director or Planning Director determine that a number of incidents are occurring at the bakery/coffee shop arising from activity in connection with this Live Entertainment Permit or other interrelated business activity at the subject location and which are negatively impacting the public peace, health, safety, or general welfare, the City Council shall have the legal authority to conduct a public hearing to review the Live Entertainment Permit, and the City Council may suspend, revoke, or otherwise modify conditions of approval of this Permit in order to protect the public peace, health, safety, and general welfare.

3. The City Council shall review the status of compliance by the business owners or through their agents thereof with the approved conditions of approval of this Live Entertainment Permit at the first City Council meeting six (6) months after approved live entertainment performances commence on the premises.

4. At all times while this Live Entertainment Permit is effective, the applicant shall comply with all requirements and conditions of approval of Conditional Use Permit No. 953.

5. At all times while this Live Entertainment Permit is effective, the City Council expressly limits Live Entertainment on the premises to only “music performances” and “poetry readings” from 7:00 a.m. to 6:00 p.m. on Fridays and Saturdays throughout the year (“Approved Entertainment Format”).

Agenda Report June 25, 2024
RESOLUTION NO. 24:026 Page 4

6. All live entertainment shall be directly contracted through the business owners/applicant. Entertainment and other events produced by independent promoters are prohibited.

7. The business owner(s) shall maintain the existing security camera system or more technologically advanced versions of the approved system, including security cameras and network video recorder (NVR), in good working condition in perpetuity. The equipment shall be utilized at all times. In the event of an incident and upon request, the business owner(s) shall allow unimpeded access and inspection of the security camera system as well as the retrieval of data to law enforcement and/or City representatives. Damaged or missing cameras and/or camera recording system shall be promptly repaired or replaced. The Public Safety Department shall review and approve any future changes to security camera equipment, locations, and orientations.

8. Approved Entertainment Format shall not be audible beyond the area under control of the applicant or person designated to be responsible for the operation of the business. No amplified sound equipment shall be installed on the exterior of the building.

9. During the hours of entertainment, the owner, the manager, or a designated responsible person 18 years of age or older shall be on the premises and shall be responsible for the operations during the hours of entertainment. This person shall possess on his or her person a valid driver license or identification card issued by the California Department of Motor Vehicles (DMV). This person shall also be able to communicate effectively with regulatory officials and have the ability to immediately contact the owner. The person will immediately introduce himself or herself to any regulatory officials.

10. The owners, managers, and persons designated to be responsible for the operation of the business shall cooperate fully with all City of Paramount officials and law enforcement personnel, and shall not obstruct or impede their entrance onto the premises while in the course of their official duties.

11. An active City of Paramount business license shall be maintained and kept current at all times during operation of the business.

12. The person designated to be responsible for the operation of the business is prohibited from performing any official police or investigative activities but shall immediately report every violation of law and every unusual occurrence to the Paramount Sheriff’s Station.

13. Any graffiti painted or marked upon the premises or on any adjacent area under the control of the property owner(s) or business owner(s) shall be removed or painted over to match the predominant surface color within twenty-four (24) hours.

Agenda Report June 25, 2024
RESOLUTION NO. 24:026 Page 5

14. The approved floor plan shall not be changed without prior approval by the Planning Department and the Sheriff’s Department.

15. The business owner(s), manager(s), persons designated to be responsible at all times for the operation of the business, and property owner(s) shall be responsible for maintaining free of litter the premises over which they have control.

16. A copy of all licenses, permits, and conditions of approval of this Live Entertainment Permit or permits of any applicable agency shall be posted and maintained in a place conspicuous and readable by all employees and customers of the location.

17. Any special events for the premises shall be reviewed in accordance with Special Event Permit regulations by the Planning Department. The applicant shall submit a Special Event Permit application no later than two (2) weeks in advance of a proposed event.

18. Landscaping shall be maintained in a thriving, clean condition for perpetuity.

19. All doors shall be kept closed during the hours of operation of the live entertainment except for ingress and egress.

20. The maximum number of occupants shall be established by the Fire Marshall according to each specific entertainment use and floor plan. A maximum occupancy placard shall be posted in a conspicuous location on the premises.

This occupancy limitation shall not be violated.

21. Tarps are prohibited from use as carports, patio covers, shade covers, and covers for outdoor storage in all front and side setback areas, rear yard areas, over driveways, and in parking and circulation areas.

22. The premises shall not be leased or rented for private events for any reason.

23. The sale, consumption, or possession of alcoholic beverages on or from the subject property is prohibited.

24. Final approval by the Planning Department is required before live entertainment shall be permitted. All conditions of approval shall be satisfied prior to final approval by the Planning Department.

25. No change or alteration to the Approved Entertainment Format shall be effective without prior approval, in writing, from the City Council at a public meeting.

26. City Council Live Entertainment Permits expire and have no further effect upon the sale or transfer of the business to a new business owner. Live Entertainment Permits do not run with the land.

Agenda Report June 25, 2024
RESOLUTION NO. 24:026 Page 6

27. Failure to comply with any of the conditions of approval of this Live Entertainment Permit and/or any applicable federal, state, or City laws shall be cause for the suspension or revocation of this permit pursuant to the procedures identified herein under Condition of Approval No. 2.

28. This permit is subject to written approval from the landlord and/or property owner.

Said approval shall be submitted to the Planning Department.

FISCAL IMPACT
None.

VISION, MISSION, VALUES, AND STRATEGIC OUTCOMES
The City’s Vision, Mission, and Values set the standard for the organization; establish priorities, uniformity, and guidelines; and provide the framework for policy decisionmaking. The City Council implemented the Strategic Outcomes to provide a pathway to achieving the Vision of a city that is safe, healthy, and attractive. This item aligns with Strategic Outcomes No. 1: Safe Community; No. 2: Community Health; and No. 3: Economic Health.

RECOMMENDED ACTION
Read by title only and adopt Resolution No. 24:026, approving a City Council Permit for live entertainment at Gracias Cafecito at 15739 Downey Avenue, subject to the Conditions of Approval contained in this report.

CITY OF PARAMOUNT

LOS ANGELES COUNTY, CALIFORNIA
RESOLUTION NO. 24:026

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARAMOUNT

SETTING FORTH ITS FINDINGS OF FACT AND APPROVING A
REQUEST BY GRACIAS CAFÉ , LLC DBA GRACIAS CAFECITO FOR A CITY COUNCIL PERMIT FOR LIVE ENTERTAINMENT AT 15739

DOWNEY AVENUE IN THE CITY OF PARAMOUNT
WHEREAS, the City Council of the City of Paramount has considered a request by Gracias Café, LLC dba Gracias Cafecito for a City Council Permit for live entertainment at 15739 Downey Avenue in the City of Paramount; and
WHEREAS, Section 5.28.020(F) of the Paramount Municipal Code requires the City Council to announce reasonable findings and determination that the applicant and its employees having the management or supervision of applicant's business are of good and moral character and reputation and that the proposed amusement or live entertainment operation under the permit will comport with the peace, health, safety, convenience, morals and general welfare of the public; and WHEREAS, Section 5.28.20(F) of the Paramount Municipal Code requires that any City Council Permit for live entertainment issued shall be subject to the requirements and conditions imposed by the City Council.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARAMOUNT AS FOLLOWS:

SECTION 1. The above recitations are true and correct.

SECTION 2. The City Council finds that it has conducted all of the proceedings necessary and in compliance with State Law and the Municipal Code of the City of Paramount.

SECTION 3. The City Council finds that the evidence presented does justify the granting of this application to approve the City Council Permit for live entertainment, subject to those requirements and qualifications stated in Section 5.28.20 of the Paramount Municipal Code and the following conditions:

RESOLUTION NO. 24:026

Page 2 ends

4. At all times while this Live Entertainment Permit is effective, the applicant shall comply with all requirements and conditions of approval of Conditional Use Permit No. 953.

5. At all times while this Live Entertainment Permit is effective, the City Council expressly limits Live Entertainment on the premises to only open to “music performances” and “poetry readings” from 7:00 a.m. to 6:00 p.m. on Fridays and Saturdays throughout the year. (“Approved Entertainment Format”).

6. All live entertainment shall be directly contracted through the business owners/applicant. Entertainment and other events produced by independent promoters are prohibited.

In the event of an incident and upon request, the business owner(s) shall allow unimpeded access and inspection of the security camera system as well as the retrieval of data to law enforcement and/or City representatives.

Damaged or missing cameras and/or camera recording system shall be promptly repaired or replaced. The Public Safety Department shall review and approve any future changes to security camera equipment, locations, and orientations.

RESOLUTION NO. 24:026

Page 3 ends

This person shall possess on his or her person a valid driver license or identification card issued by the California Department of Motor Vehicles (DMV). This person shall also be able to communicate effectively with regulatory officials and have the ability to immediately contact the owner.

The person will immediately introduce himself or herself to any regulatory officials.