San Clemente City Council
September 6, 2022

Community Center
100 N. Calle Seville
San Clemente, California
www.san-clemente.org
Mayor James
Mayor Pro Tem Duncan
Councilmember Ferguson
Councilmember Knoblock
Councilmember Ward
5:00 p.m. – Business Meeting I
6:00 p.m. – Closed Session
6:30 p.m. – Business Meeting II

CITY OF SAN CLEMENTE
Tuesday, September 6, 2022 5:00 PM
City Council
Regular and Special Meeting Agenda
Information concerning City Council Meeting protocols and procedures is contained at the end of this agenda.

RULES FOR ADDRESSING COUNCIL
• Members of the public may address the City Council on matters within the jurisdiction of the City of San Clemente.
• If you wish to address Council, please complete one of the blue speaker cards located at the entrance to the Community Center Auditorium and turn it in to the City Clerk or Deputy City Clerk.
• Persons wishing to address Council concerning an agendized item will be invited to address Council during the time that Council is considering that particular agenda item.

Persons wishing to address Council concerning a non-agendized issue will be invited to address Council during the “Oral Communications” portion of the meeting. • When invited by the Mayor, please step to the podium, and if you wish, state your name and the City in which you reside, and make your presentation. Please limit your presentation to three minutes.

MISSION STATEMENT
The City of San Clemente, in partnership with the community we serve, will foster a tradition dedicated to:

Maintaining a safe, healthy atmosphere in which to live, work and play; Guiding development to ensure responsible growth while preserving and enhancing our village character, unique environment and natural amenities; Providing for the City’s long-term stability through promotion of economic vitality and diversity…
Resulting in a balanced community committed to protecting what is valued today while meeting tomorrow’s needs.

1 City Council Regular and Special Meeting Agenda September 6, 2022 BUSINESS MEETING PART 1 (5:00 P.M.)

CALL TO ORDER
INVOCATION – Michael Holmes, Student Director, Shoreline Community Church

PLEDGE OF ALLEGIANCE

ROLL CALL

1. Motion waiving reading in full of all Resolutions and Ordinances

2. Consideration of agendizing items requiring immediate action Any items agendized will be considered under New Business, unless otherwise determined by a majority vote of the City Council.

3. Oral Communications (Part 1)
Members of the audience who wish to address Council on matters that are within the jurisdiction of the City of San Clemente, but not separately listed on the agenda, may do so during the Oral Communications portion of the meeting. Speakers may address Council once during either Oral Communications Part 1 or Part 2. A total time limitation of 30 minutes is allocated for Oral Communications Part 1, with each speaker being allotted 3 minutes in which to give his or her presentation. Speaker order is determined by the order in which speaker cards are provided to the City Clerk or Deputy City Clerk at the meeting. Speakers that cannot be accommodated during Oral Communications Part 1 will be invited to address Council during Oral Communications Part 2, which appears on this agenda as Item No. 10. When invited by the Mayor, please step to the podium, and if you wish, state your name and the City in which you reside, and make your presentation. Subject to very limited exceptions, Council is not permitted to discuss or take action on items that do not appear on the agenda.

4. Consent Calendar
All items listed on the Consent Calendar are considered to be routine and will be enacted by one motion without discussion unless Council, Staff, or the public requests removal of an item for separate discussion and action.

A. City Council Minutes
Staff Recommendation
(1) APPROVE THE MINUTES OF THE REGULAR AND SPECIAL COUNCIL MEETING OF AUGUST 16, 2022.
(2) APPROVE THE MINUTES OF THE JOINT CITY COUNCIL MEETING OF AUGUST 30, 2022.

2 City Council Regular and Special Meeting Agenda September 6, 2022 B. Commission/Committee Minutes
Staff Recommendation
Receive and file the following:
(1) PUBLIC SAFETY COMMITTEE REGULAR MEETING MINUTES OF MAY 24, 2022.
(2) PUBLIC SAFETY COMMITTEE REGULAR MEETING MINUTES OF JUNE 28, 2022.
(3) ZONING ADMINISTRATOR REGULAR MEETING MINUTES OF AUGUST 4, 2022.
(4) ZONING ADMINISTRATOR REGULAR MEETING MINUTES OF AUGUST 18, 2022.
(5) PUBLIC SAFETY COMMITTEE REULAR MEETING MINUTES OF JULY 26, 2022.
(6) HUMAN AFFAIRS COMMITTEE SPECIAL MEETING MINUTES OF AUGUST 16, 2022.

C. Warrant Register
(1) Approve Wire Transfer Nos.
2699 through 2701 and Warrant Nos.
582951 through 583061, paid on
8-19-22, in the amount of…….……….……..…..…….…..… $ 648,171.86 (2) Approve Wire Transfer Nos.
2702 through 2706 and Warrant Nos.
583062 through 583175, paid on
8-26-22, in the amount of…….……….……..…..…….…..… $ 6,376,489.40 TOTAL WARRANT REGISTER……………………………….$ 7,024,661.26
Payroll Register
Warrant Nos. 875 through 877
Automatic Deposit Advises 80452
through 80774, for the period
8-8-22 through 8-21-22, paid
on 8-26-22, in the amount of………..……..…..………….………$ 485,946.05 TOTAL PAYROLL REGISTER………………………………….$ 485,946.05

3 City Council Regular and Special Meeting Agenda September 6, 2022 D. ORDINANCE NO. 1733 (SECOND READING) - PROHIBITING THE

UNLAWFUL POSSESSION OF CATALYTIC CONVERTERS
Staff Recommendation
Adopt Ordinance No. 1733 entitled AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN CLEMENTE ADDING CHAPTER 10.54 (UNLAWFUL POSSESSION OF A CATALYTIC CONVERTER PROHIBITED) OF TITLE 10 (VEHICLES AND TRAFFIC) TO THE SAN CLEMENTE MUNICIPAL CODE

ESTABLISHING REGULATIONS PROHIBITING THE UNLAWFUL
POSSESSION OF CATALYTIC CONVERTERS.

E. NOTICE OF COMPLETION - FY 2021 STREET IMPROVEMENT PROGRAM AND FY 2022 MAJOR STREET MAINTENANCE
Staff Recommendation

1. Accept the FY 2021 Street Improvement Program and FY 2022 Major Street Maintenance, from the contractor Roy Allan Slurry Seal, Inc., CIP Project Nos. 11306 and 22303.

2. Authorize the Public Works Director/City Engineer to execute and record the Notice of Completion for FY 2021 Street Improvement Program and FY 2022 Major Street Maintenance.

3. Authorize the City Clerk to release the Payment Bond 35 days from the recordation of the Notice of Completion upon verification with the Engineering Division that no liens have been levied against the Contractor, Roy Allan Slurry Seal, Inc.; and

4. Authorize the City Clerk to release the Performance Bond upon receipt of a Warranty Bond in the amount of 25% of the construction cost.

F. CONTRACT AWARD - FY 2023 PAVEMENT PRESERVATION PROGRAM Staff Recommendation

1. Approve the plans and specifications for FY 2023 Pavement Preservation Program, Project No. 23303.

2. Approve, and authorize the Public Works Director/City Engineer to execute, Contract No.C22-51, by and between the City of San Clemente and Palp Inc.

DBA Excel Paving Company, providing for FY 2023 Pavement Preservation Program, in the amount of $238,550.

4 City Council Regular and Special Meeting Agenda September 6, 2022 G. SUPPLEMENTAL APPROPRIATION FOR SLOPE ANALYSIS AT 100

AVENIDA PRESIDIO
Staff Recommendation
Approve an appropriation of $110,000.00 from the General Fund Unassigned Fund Balance into account 001-411-43690-000-00000, Development Engineering – Other Professional Services and authorize the Public Works Director/City Engineer to execute Contract No. C22-52 with the selected firm to perform the scope of services as depicted in their proposal and pursuant to their existing Professional Services Agreement.

H. CONTRACT AWARD - WORKERS’ COMPENSATION THIRD PARTY

ADMINISTRATIVE SERVICES AGREEMENT
Staff Recommendation
Approve, and authorize the City Manager to execute, Contract C22-53, by and between the City of San Clemente and AdminSure, Inc., providing for Workers’ Compensation Claims Administration Services, for a period of five years, in an amount not to exceed $190,000.

I. RECOMMENDATION OF THE PUBLIC SAFETY COMMITTEE TO CONSIDER SITE AT 380 AVENIDA PICO (THE CITY’S WATER RECLAMATION PLANT

PROPERTY) AS A POTENTIAL LOCATION FOR AN EMERGENCY FOOD

STORAGE UNIT
Public Safety Committee Recommendation
Approve the Public Safety Committee’s recommendation to allow a portion of the City’s Water Reclamation Plant property to be used for the placement of an emergency food-storage unit.

J. UPDATE TO POLICY AND PROCEDURE 601-8-19 (USE OF INFORMATION

TECHNOLOGY)
Staff Recommendation
Approve Policy and Procedure 601-8-19 (Use of Information Technology), effective September 6, 2022 and authorize the City Manager to update as needed.

K. PURCHASE OF WATER METERS FOR FISCAL YEAR 2022-23.

Staff Recommendation
Approve the purchase of water meters from Ferguson Waterworks and Metron-Farnier for Fiscal Year 2022-23 based on the fixed price quotes for a total amount not to exceed $102,000.

5 City Council Regular and Special Meeting Agenda September 6, 2022

5. Reports
A. Commissions and Committees
B. City Manager
C. City Attorney
D. Council Members
E. Council Subcommittee Updates
CLOSED SESSION (6:00 P.M.)
A. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION
Existing litigation pursuant to Government Code section 54956.9(d)(1) Number of Cases: 1
Case Name: City of San Clemente v. Urban Development Corp, et al.

Case Number: OCSC 30-2022-01261890-CU-OR-CJC
B. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
Pursuant to Government Code Section 54956.8
Property: 2.2 acre section of and 80 acre parcel on the southwest corner of Avenida La Pata and Vista Hermosa, Assessor’s Parcel Number 678-163-01 Agency Negotiators: City Manager
Negotiating Parties: City of San Clemente, Pacific Medical Buildings on behalf of Hoag Under Negotiation: Price and terms of payment
BUSINESS MEETING PART 2 (6:30 P.M.)

6. Closed Session Report - City Attorney

7. Special Presentations
A. Presentation of Commendation to City Manager Sund
Presentation of Commendation to City Manager Sund in recognition of his exemplary service to the City of San Clemente.

6 City Council Regular and Special Meeting Agenda September 6, 2022 B. Recognition of Out-Going Commission and Committee Members Presentation of City tiles to the following out-going members of the City’s Commissions and Committees:

Joe Janis
Public Safety Committee
John Bandaruk
Beaches, Parks and Recreation Commission
Vincent Hennessy
Beaches, Parks and Recreation Commission
Aaron Washington
Beaches, Parks and Recreation Commission
Shari Grace
Human Affairs Committee
William Kreutinger
Human Affairs Committee
Thomas Olds
Human Affairs Committee and Investment Advisory Committee C. Update on Homeless Issue (August Update to be Provided at September 20, 2022 Council Meeting)

8. Public Hearings
The Public Hearing process includes a staff presentation, a presentation by the applicant not to exceed ten (10) minutes, and public testimony (not to exceed three minutes per speaker). Following closure of the Public Hearing, the City Council will respond to questions raised during the hearing, discuss the issues, and act upon the matter by motion.

None.

9. Unfinished Business
None.

7 City Council Regular and Special Meeting Agenda September 6, 2022

10. New Business
A. ESTABLISHMENT OF A CITIZENS SUBCOMMITTEE TO FURTHER ANALYZE THE FEASIBILITY OF AN AMPHITHEATER (Agendized by Council at the August 16, 2022 City Council Meeting.)
Staff Recommendation

1. Staff Recommends that Council take one of the following actions:
a. Authorize the Legislative Administrator to advertise to fill 5 vacancies on the newly formed Amphitheater Citizens Committee and schedule a meeting to interview and appoint five committee members.

OR
b. Determine to have each Councilmember provide a recommended candidate to the Legislative Administrator to create the newly formed Amphitheater Citizens Committee.

AND

2. Determine whether to set term dates, or to have the Committee sunset after a period of two years.

B. REVIEW OF THE CITY’S CR&R SOLID WASTE AND RECYCLING AGREEMENT BY

MSW CONSULTANTS
Staff Recommendation

1. Authorize the City Manager to issue CR&R a notice of termination of the automatic renewal of the Franchise Agreement prior to September 30, 2022. This will result in the Franchise Agreement termination on June 30, 2024;

2. Direct City staff to:
a. Enter into negotiations with CR&R for a period not to exceed four months; and, b. If an agreement is not reached within four months, issue a Request for Proposals and solicit firms for a new solid waste and recycling Franchise Agreement;

3. Include an analysis for Street Sweeping services or revenue as part of recommended action number two; and

4. Approve and authorize the City Manager to execute, Amendment No. 1 to Contract AC-1046, by and between the City of San Clemente and MSW Consultants, providing for solid waste and recycling negotiations. This Amendment increases the contract from $25,000 to an amount not to exceed $65,000 (an increase of $40,000).

8 City Council Regular and Special Meeting Agenda September 6, 2022 C. APPROVAL OF LONG-TERM WASTEWATER SERVICES AGREEMENT

WITH SANTA MARGARITA WATER DISTRICT (SMWD)
Staff Recommendation

1. Approve, and authorize the City Manager to execute Contract No.C22-54, by and between the City of San Clemente and the Santa Margarita Water District, providing for wastewater treatment services and recycled water purchases from July 1, 2022 through June 30, 2052.

2. Transfer $11,800 from account no. 054-447-47250-000-12605 to account no. 054-477-45300-000-12206.

3. Authorize expenditures in the amount of $3,100,000 from account no. 054- 477-45300-000-12207 for Trampas Regional Recycled Water Reservoir and $611,800 for Pico Recycled Water Pump Station from account no. 054-477- 45300-000-12206.

D. POLICY AND PROCEDURE 1201-13 RELATING TO CITY COUNCIL USE OF LETTERHEAD AND STATIONARY (Agendized at the August 16, 2022 City Council Meeting by Mayor James, with support of Councilmember Ward and Councilmember Knoblock)
Staff Recommendation
Approve Policy and Procedure 1201-13 (Use of City of San Clemente Letterhead and Stationary).

E. APPOINTMENT OF SEAN JOYCE AS INTERIM CITY MANAGER
Interim City Manager Subcommittee Recommendation

1. Adopt Resolution No. 22-35 A RESOLUTION OF THE CITY COUNCIL OF

THE CITY OF SAN CLEMENTE, CALIFORNIA, AUTHORIZING THE

APPOINTMENT OF SEAN JOYCE AS INTERIM CITY MANAGER AND

APPROVING AN EMPLOYMENT AGREEMENT IN CONNECTION
THEREWITH.

2. Approve, and authorize the Mayor to execute, Contract No. C22-55, by and between the City of San Clemente and Sean Joyce, providing for Interim City Manager Services, at the rate of $133.70/hour.

9 City Council Regular and Special Meeting Agenda September 6, 2022

11. Reports (continued from Business Meeting Part 1)
A. Commissions and Committees
B. City Manager
C. City Attorney
D. Council Members
E. Council Subcommittee Updates

12. Oral Communications (Part 2)
Members of the audience who wish to address Council on matters that are within the jurisdiction of the City of San Clemente, but not separately listed on the agenda, may do so during the Oral Communications portion of the meeting. When invited by the Mayor, please step to the podium, and if you wish, state your name and the City in which you reside, and make your presentation, not to exceed three minutes. Subject to very limited exceptions, Council is not permitted to discuss or take action on items that do not appear on the agenda.

13. Adjournment
The next Regular Council Meeting is scheduled to take place on September 20, 2022.

Part 1 of the Regular Business Meeting will commence at 5:00 p.m. and Closed Session will begin at 6:00 p.m. Part 2 of the Regular Business Meeting will commence at 7:00 p.m. The meeting will take place in the Council Chambers, located at 910 Calle Negocio, 2nd Floor, San Clemente.

10 City Council Regular and Special Meeting Agenda September 6, 2022

CITY COUNCIL MEETING PROCEDURES

PRESENTATION OF WRITTEN MATERIALS TO COUNCIL
In order to ensure that Councilmembers have adequate time to consider written materials concerning agenda items, it is strongly recommended that such materials be submitted to the City Clerk by noon the date preceding the Council meeting.

MEETINGS RECORDED AND TELEVISED
City Council meetings are broadcast live and are replayed periodically on Cox Communications Local Access Channel 854. Meetings are also available for live-stream or post meeting viewing from the City’s website.

Meetings are also recorded via audio CD and/or DVD and retained as a City record in accordance with the City’s records retention schedule.

USE OF ELECTRONIC VISUAL AIDS BY PUBLIC AT MEETINGS
To allow staff adequate time to confirm software compatibility, individuals wishing to utilize electronic visual aids to supplement their oral presentations at the meeting, must submit the electronic files to the City Clerk by no later than 12:00 p.m. on the day of the meeting. Only compatible electronic formats will be permitted to be used on City audio/visual computer equipment. Staff makes no guarantee that such material will be compatible, but will use its best efforts to accommodate the request.

LENGTH OF MEETINGS
At 11:00 p.m., the City Council will determine which of the remaining agenda items can be considered and acted upon at this meeting and will continue all other agenda items to a future meeting.

AMERICANS WITH DISABILITIES ACT
Pursuant to the Americans with Disabilities Act, persons with a disability who require a disability-related modification or accommodation in order to participate in a meeting, including auxiliary aids or services, may request such modification or accommodation from the City Clerk at (949) 361-8200. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to assure accessibility to the meeting.

COMMUNICATION DEVICES
To minimize meeting distractions and sound system interference, please be sure all personal communication devices are turned off or on silent mode.

MEETING SCHEDULE
Regular Council Meetings are held on the first and third Tuesdays of each month in the Council Chambers, located at 910 Calle Negocio, 2nd floor, San Clemente. Part 1 of the Business Meeting will begin at 5:00 p.m. and Closed Session begins at 6:00 p.m. Part 2 of the Business Meeting will commence at 7:00 p.m. Additional meetings of the City Council may be called as needed.

AGENDAS, ADMINISTRATIVE REPORTS AND SUPPLEMENTAL WRITTEN MATERIALS Agendas and Administrative Reports are available for review and/or copying at the City Clerk’s Department as soon as agendas are posted (a minimum of 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting). Agendas and Administrative Reports can also be viewed at the San Clemente Library, located at 242 Avenida Del Mar, or by accessing the City’s website at www.san-clemente.org. An “Inspection Copy” of agenda materials is also located at the entrance to the Community Center during meetings for public review. All written material distributed to a majority of the Council after the original agenda packet was distributed is available for public inspection in the City Clerk’s Department, located at 910 Calle Negocio, San Clemente, during normal business hours.

The City Clerk’s Department offers an agenda packet subscription service free of charge. If you wish to receive email copies of City Council agendas, which include hyperlinks to staff reports and other back-up material, register at http://san-clemente.org/enotification.

11 AGENDA REPORT

CITY OF SAN CLEMENTE
City Council Meeting
Community Center
100 N. Calle Seville
San Clemente, California
www.san-clemente.org
Meeting Date: 9/6/2022 Agenda Item: (1)
Department: Choose an item.

Prepared By: Click or tap here to enter text.

Click or tap here to enter text.

Agendized by: Click or tap here to enter text.

Subject:

APPROVE THE MINUTES OF THE REGULAR AND SPECIAL COUNCIL MEETING OF AUGUST 16, 2022
Fiscal Impact:

Click or tap here to enter text.

Summary:

Click or tap here to enter text.

Background:

Click or tap here to enter text.

Discussion:

Click or tap here to enter text.

Recommended Actions:

Staff Recommendation
Click or tap here to enter text.

Attachment:

Click or tap here to enter text.

Notification:

Click or tap here to enter text.

CITY OF SAN CLEMENTE Page 1 of 1 Printed on 9/7/2022
powered by Legistar™ 12

CITY OF SAN CLEMENTE
City Council Minutes
Regular and Special Meeting – August 16, 2022
These minutes reflect the order in which items appeared on the meeting agenda and do not necessarily reflect the order in which items were actually considered.

A Regular and Special Meeting of the San Clemente City Council was called to order by Mayor James on August 16, 2022 at 5:00 p.m. in the San Clemente Community Center Auditorium, located at 100 N. Calle Seville, San Clemente.

PRESENT DUNCAN, FERGUSON, KNOBLOCK*, WARD, MAYOR JAMES

ABSENT NONE
*Arrived at 5:07 p.m.

STAFF PRESENT Erik Sund, City Manager; Elizabeth Hull, Deputy City Attorney; Joanne Baade, City Clerk; Laura Campagnolo, Legislative Administrator; Megan Jimenez, Deputy City Clerk
* * *
BUSINESS MEETING PART 1

INVOCATION
Doug Roland with Shoreline Community Church gave the invocation.

PLEDGE OF ALLEGIANCE
Aaron Washington led the Pledge of Allegiance.

1. WAIVER TO READING IN FULL OF ALL RESOLUTIONS AND ORDINANCES

MOTION BY MAYOR PRO TEM DUNCAN, SECOND BY MAYOR JAMES,
CARRIED 4-0 (COUNCILMEMBER KNOBLOCK ABSENT), to waive reading in full of all Resolutions and Ordinances.
13 City Council Minutes – Regular and Special City Council Meeting of August 16, 2022 Page 2

2. CONSIDERATION OF AGENDIZING ITEMS REQUIRING IMMEDIATE ACTION Municipal Code 8.48 (Relating to Amplified Sound or Noise from Public Parks)
Anonymous, San Clemente, presented a PowerPoint concerning immediate action on Municipal Code 8.48.090 and 8.48.010. A hard copy of the presentation is on file with the City Clerk.

In response to Council inquiry, Deputy City Attorney Hull indicated that she will request that the City Attorney provide an opinion concerning the potential noise of pickleball at San Gorgonio Park exceeding the 80 decibels allowed in Municipal Code Section 8.48.

REORGANIZATION OF AGENDA

MOTION BY COUNCILMEMBER WARD, SECOND BY COUNCILMEMBER
FERGUSON, CARRIED 4-1 (COUNCILMEMBER KNOBLOCK VOTING NOE), to consider Item 10G (Discussion of Email Redactions) ahead of other items on the agenda.

Please reference page 14 of these minutes for a summary of the action.

3. ORAL COMMUNICATIONS (Part 1)
City Management
Brad (no last name provided) commented on City Manager Sund’s resignation and the opportunity to hire a new City Manager and City Attorney.

Max Berg Plaza Park
Sarah (no last name provided), San Clemente, commented on violent incidents at Max Berg Plaza Park.

Mindy (no last name provided) commented on her experience on July 25, 2022 at Max Berg Plaza Park.

Christian (no last name provided) spoke on violent incidents at Max Berg Plaza Park.

Sanctuary for Life City
Lay Brother Steven Gerard Sidlovsky commented on San Clemente becoming a charter city and personhood; provided a bookmark with contact information, that is on file with the City Clerk.
14 City Council Minutes – Regular and Special City Council Meeting of August 16, 2022 Page 3 Carolynn Blair, San Clemente, spoke in support of San Clemente becoming a sanctuary for life city and the Special City Council Meeting of August 6, 2022.

Mary Herron spoke on the August 6, 2022 City Council Meeting and San Clemente becoming a sanctuary for life.

Mary Farrell spoke on San Clemente becoming a sanctuary for life.

Transportation Projects
Martina (no last name provided) commented on the TCA and transportation projects within San Clemente.

Skate Park/ Park Design
James Gilbert, San Clemente, commented on the San Clemente skate park and the design of the pump track at Richard Steed Park.

San Clemente Police Services Captain Benfield and City Manager Sund updated Council on action being taken to increase safety at Max Berg Plaza Park.

Mayor Pro Tem Duncan, with the support of Mayor James and Councilmember Knoblock, agendized consideration of increasing resources for Orange County Sheriff’s Department including the financial impacts of adding additional deputies.

4. CONSENT CALENDAR

MOTION BY COUNCILMEMBER KNOBLOCK, SECOND BY MAYOR PRO TEM DUNCAN, CARRIED 5-0, to approve the Consent Calendar, with the removal of Items 4C (Warrant Register Portion), 4E, 4F, 4H.

A. City Council Minutes

MOTION BY COUNCILMEMBER KNOBLOCK, SECOND BY MAYOR PRO
TEM DUNCAN, CARRIED 5-0, to:
(1) Approve the minutes of the Adjourned Regular City Council Meeting of July 19, 2022.
(2) Approve the minutes of the Special City Council Meeting of August 6, 2022.
15 City Council Minutes – Regular and Special City Council Meeting of August 16, 2022 Page 4 B. Commission/Committee Minutes

MOTION BY COUNCILMEMBER KNOBLOCK, SECOND BY MAYOR PRO
TEM DUNCAN, CARRIED 5-0, to receive and file the following:
(1) Planning Commission Regular Meeting minutes of June 22, 2022. (2) Zoning Administrator Regular Meeting minutes of June 23, 2022. (3) Golf Course Committee Regular Meeting minutes of May 5, 2022. (4) Beaches, Parks and Recreation Regular Meeting minutes of June 14, 2022.
(5) Zoning Administrator Regular Meeting minutes of July 21, 2022. (6) Planning Commission Regular Meeting minutes of March 2, 2022.

C. Payroll Register

MOTION BY COUNCILMEMBER KNOBLOCK, SECOND BY MAYOR PRO
TEM DUNCAN, CARRIED 5-0, to:

Approve Automatic Deposit Advises
79835 through 80141, for the period
7-11-22 through 7-24-22, paid
on 7-29-22, in the amount of………..……..…..………….…….$ 484,735.72 Approve Warrant Nos. 873 through
874 Automatic Deposit Advises 80142
through 80451, for the period
7-25-22 through 8-7-22, paid
on 8-12-22, in the amount of………..……..…..………….…….$ 478,892.25 TOTAL PAYROLL REGISTER………………….$ 963,627.97
D. Notice of Completion – Calle Vista Torito Storm Drain Repair

MOTION BY COUNCILMEMBER KNOBLOCK, SECOND BY MAYOR PRO
TEM DUNCAN, CARRIED 5-0, to:

1. Accept the Calle Vista Torito Storm Drain Repair, from the contractor, O’Connell Engineering & Construction, Inc., Project No. 22002.

Motion continued on following page
16 City Council Minutes – Regular and Special City Council Meeting of August 16, 2022 Page 5

2. Authorize the Public Works Director/City Engineer to execute and record the Notice of Completion for the Calle Vista Torito Storm Drain Repair.

3. Authorize the City Clerk to release the Payment Bond 35 days from the recordation of the Notice of Completion upon verification with the Engineering Division that no liens have been levied against the contractor, O’Connell Engineering & Construction, Inc.

G. Declaration of Surplus and Disposition of Retired Fleet Equipment

MOTION BY COUNCILMEMBER KNOBLOCK, SECOND BY MAYOR PRO
TEM DUNCAN, CARRIED 5-0, to declare the vehicles identified on Attachment No. 1 of the Administrative Report dated August 16, 2022 and on file with the City Clerk, as surplus and approve, and authorize, Ken Porter Auctions for the public auctioning of City of San Clemente surplus vehicles.

I. Special Event Permit – World Surfing League Press Conference

MOTION BY COUNCILMEMBER KNOBLOCK, SECOND BY MAYOR PRO
TEM DUNCAN, CARRIED 5-0, to approve the exclusive use of the end of the pier by the World Surfing League for a one-time special event to be held on September 6, 2022.

J. Lease Amendment – Communications Site Lease at 721 Avenida Salvador

MOTION BY COUNCILMEMBER KNOBLOCK, SECOND BY MAYOR PRO
TEM DUNCAN, CARRIED 5-0, to approve, and authorize the Mayor to execute, Amendment No. 4 to Contract No. C89-49, a communications site lease agreement, related to the property at 721 Avenida Salvador, by and between the City of San Clemente and San Diego Gas and Electric, for a five-year term with three additional five-year extensions for a total of 20 years.

K. Lease Agreement – Communications Site Lease at 5 Avenida La Pata

MOTION BY COUNCILMEMBER KNOBLOCK, SECOND BY MAYOR PRO
TEM DUNCAN, CARRIED 5-0, to:

1. Approve, and authorize the Mayor to execute, Contract No. C22-47, a communications site lease agreement, related to the property at 5 Avenida La Pata, by and between the City of San Clemente and TMotion continued on following page 17 City Council Minutes – Regular and Special City Council Meeting of August 16, 2022 Page 6 Mobile, for a five-year term with three additional five-year extensions for a total of 20 years.

2. Appropriate $6,500 from the General Fund Unassigned Fund Balance into account 001-631-43425-000-00000 (Maintenance of Landscaping)

ITEMS REMOVED FROM THE CONSENT CALENDAR FOR DISCUSSION
C. Warrant Register
Following discussion of the Best Best and Krieger warrants, MOTION BY MAYOR PRO TEM DUNCAN, SECOND BY COUNCILMEMBER WARD, CARRIED 3-2 (COUNCILMEMBER FERGUSON AND COUNCILMEMBER KNOBLOCK
VOTING NOE), to:

Approve Wire Transfer Nos.
2685 through 2686 and Warrant Nos.
582308 through 582440, paid on
7-22-22, in the amount of…….……….……..…..…….…..… $ 3,030,567.57 Approve Wire Transfer Nos.
2687 through 2690 and Warrant Nos.
582441 through 582651, paid on
7-29-22, in the amount of…….……….……..…..…….…..… $ 3,915,266.30 Approve Wire Transfer Nos.
2691 through 2694 and Warrant Nos.
582652 through 582756, paid on
8-5-22, in the amount of…….……….……..…..…….…..…... $ 1,044,886.31 Approve Handwrite Nos. 582950
Wire Transfer Nos. 2695
through 2698 and Warrant Nos.
582757 through 582949, paid on
8-12-22, in the amount of…….……….……..…..…….…..…... $ 3,174,341.94 TOTAL WARRANT REGISTER……..……….$ 11,165,062.12
18 City Council Minutes – Regular and Special City Council Meeting of August 16, 2022 Page 7 E. Contract Award – Steed Park Sports Field Lighting Replacement Project Anonymous, San Clemente, commented on the process for asking questions of staff concerning Administrative Reports.

MOTION BY COUNCILMEMBER WARD, SECOND BY COUNCILMEMBER
KNOBLOCK, CARRIED 5-0, to:

1. Approve the plans and specifications for the Steed Park Sports Field Lighting Replacement Project, CIP Project No. 12161.

2. Approve, and authorize the City Manager to execute, Contract No. C22-46, by and between the City of San Clemente and Musco Sports Lighting, providing for Sports Field Lighting Replacement at Steed Park, in the amount of $1,694,885.

3. Approve, and authorize the City Manager to execute a purchase order with Musco Sports Lighting for Sports Field Lighting Replacements at Steed Park in accordance with the BuyBoard National Purchasing Cooperative Agreement Contract No. 592-19 (Master Project No. 196290) in the amount of $1,694,885.

F. Update to Policy and Procedure 1201-11 (City Council Meeting and Operating Procedures)

MOTION BY COUNCILMEMBER WARD, SECOND BY COUNCILMEMBER
KNOBLOCK, CARRIED 5-0, to approve Policy and Procedure 1201-11 (City Council Meeting and Operating Procedures), effective August 16, 2022, with the modification that Section 4.5.10 be updated to include Oral Communications Part 1 and Part 2.

H. Purchase of a Standby Generator and Electrical Distribution System for the City Hall Building Located at 910 Calle Negocio
Public Works Director/City Engineer Koger responded to Council inquiries concerning the specifications of the project.

MOTION BY MAYOR JAMES, SECOND BY MAYOR PRO TEM DUNCAN,
CARRIED 5-0, to approve, and authorize the Public Works Director/City Engineer to execute, Contract No. C22-49, a purchase order with Caterpillar Inc., providing for a standby generator and related distribution systems, in accordance with the Sourcewell National Purchasing Cooperative Agreement (Contract No. 120617- CAT), in an amount not to exceed $350,000.
19 City Council Minutes – Regular and Special City Council Meeting of August 16, 2022 Page 8

5. REPORTS
Continued to Business Meeting Part 2 (See page 15 of these minutes for action)

CLOSED SESSION
Closed Session Item A – Public Employee Appointment
Brad (no last name provided) spoke on the selection of an Interim City Manager/City Manager and the process for selection.

Martina (no last name provided) commented that the selection of a City Manager should wait until after the November 8, 2022 election and that Best Best and Krieger should be replaced as the City’s legal Counsel.

Closed Session Item B – Conference with Labor Negotiators Brad (no last name provided) opined that the process for selection of an interim or permanent City Manager should be discussed in open session.

MOTION BY MAYOR PRO TEM DUNCAN, SECOND BY MAYOR JAMES, CARRIED 5- 0, to recess to closed session at 6:10 p.m. to discuss the following:

A. PUBLIC EMPLOYEE APPOINTMENT
Pursuant to Government Code section 54957
Title: Interim City Manager/City Manager
B. CONFERENCE WITH LABOR NEGOTIATORS
Pursuant to Government Code section 54957.6
Agency Designated Representatives: Mayor
Unrepresented Prospective Employee: Interim City Manager/City Manager BUSINESS MEETING PART 2
Council reconvened at 6:33 p.m., with all Councilmembers present.

6. Closed Session Report - City Attorney.

Deputy City Attorney Hull announced that Council made a motion to appoint a City Manager but the motion failed.

MOTION BY COUNCILMEMBER WARD, SECOND BY MAYOR JAMES,
CARRIED 5-0, to appoint the Mayor and Mayor Pro Tem to a subcommittee to recruit for and hire an Interim City Manager.
20 City Council Minutes – Regular and Special City Council Meeting of August 16, 2022 Page 9

7. Special Presentations.

REORGANIZATION OF AGENDA
Council considered item 7D – Wall of Recognition 2022 Honorees ahead of other Special Presentations. See page 10 of these minutes for the action.

A. Permit Streamlining Implementation
Community Development Director Gallardo-Daly and Deputy Community Development Director Atamian presented a PowerPoint entitled “Permit Streamlining Implementation” and responded to Council inquiries. A hard copy of the presentation is on file with the City Clerk.

B. Third Quarter Financial Report
Financial Services Officer Rahn provided an overview on the third quarter financial report and responded to Council inquiries.

Councilmember Knoblock, with the support of Mayor James and Councilmember Ferguson, agendized the analysis of the $1 million designated for the 115 trust and an additional $1 million from the General Fund.

The City Attorney is to provide Council with an article authored by a Best Best and Krieger attorney concerning 115 trusts.

C. Update on Homeless Issue (May, June, July update)
Donna Vidrine, San Clemente, opined on the need for Council to address public health.

Kathy Esfahani, San Clemente, commented on the homeless crisis and the need for affordable housing.

Deputy Community Development Director Atamian and Community Outreach Worker Hunter reviewed the May, June and July 2022 City Outreach and Engagement Report and responded to Council Inquiries. A hard copy of the May, June and July 2022 report is on file with the City Clerk.
21 City Council Minutes – Regular and Special City Council Meeting of August 16, 2022 Page 10 D. Wall of Recognition 2022 Honorees
Mayor James, along with all members of the City Council, presented Certificates of Recognition to the 2022 Wall of Recognition Honorees Don Brown and Fred Swegles.

ORAL COMMUNICATIONS (Part 1 Continued)
Catherine Dobrenchuk commented on the August 6, 2022 Special City Council Meeting and the sanctuary for life resolution.

Amanda Q expressed concern regarding Orange County Transportation Authority and the information provided on the I-5 HOV project.

Anonymous, San Clemente, commented on the five park master plan updates and the public’s access to receive information from staff.

City Manager Sund provided a status report to Council on the Parks Master Plan update.

Susan Ambrose, San Clemente, commented on the conditions at Max Berg Plaza Park.

Donna Vidrine, San Clemente, commented on the Inflation Reduction Act.

MEETING RECESSED
Council recessed at 7:42 p.m. and reconvened at 7:47 p.m., with all Councilmembers present.

8. PUBLIC HEARINGS
A. Consideration of Establishing a Processing Fee for Urban Lot Split and Two-Unit Project Application (7:45 p.m.)
Public Hearing to consider establishing a processing fee for urban lot split and two-unit project applications.

Mayor James opened the Public Hearing.

There being no one desiring to speak, the Public Hearing was closed.

Senior Planner Toma reviewed the contents of the Administrative Report concerning the processing fee for urban lot split and two-unit project applications and responded to Council inquiries.

MOTION BY COUNCILMEMBER WARD, SECOND BY MAYOR PRO TEM
DUNCAN, CARRIED 3-2 (COUNCILMEMBER FERGUSON AND
COUNCILMEMBER KNOBLOCK VOTING NOE), to adopt Resolution No. 22 City Council Minutes – Regular and Special City Council Meeting of August 16, 2022 Page 11 22-34 entitled A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SAN CLEMENTE, CALIFORNIA, ESTABLISHING A PERMIT FEE FOR

PROCESSING URBAN LOT SPLIT AND TWO-UNIT PROJECT
APPLICATION UNDER SENATE BILL (SB) 9; AND FINDING THE ACTION

TO BE EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY
ACT (CEQA).

9. UNFINISHED BUSINESS
None.

10. NEW BUSINESS
A. Update of Legislative and Transportation Activities
Report from the Assistant to the City Manager concerning updates on Legislative and Transportation Activities.

Amanda Q expressed concerns regarding Senate Bill 1224 (SB1224) Watersheds: wildlife habitat: Counties of Orange and San Diego regarding wildlife conservation and the potential for protecting areas against a toll road being built.

Assistant to the City Manager Savage reviewed the contents of the Administrative Report.

Marc Aprea of Aprea and Micheli provided an update of legislative activities in the State Legislature and responded to Council Inquiries.

Stan Oftelie of the Oftelie Company provided updates to Council concerning the I-5 HOV lane project and the Orange County Transportation Authority scoping meeting.

MOTION BY MAYOR JAMES, SECOND BY COUNCILMEMBER
KNOBLOCK to schedule a town hall meeting in the next 30-45 days to discuss the process/scope of the I-5 HOV lane project in-person and via Zoom.

Mayor James announced the transportation subcommittee sent a letter to Caltrans/Orange County Transportation Authority opposing any eminent domain claims. The letter will be posted on the City’s website. 23 City Council Minutes – Regular and Special City Council Meeting of August 16, 2022 Page 12 B. Code Amendment – Urgency Ordinance Enacting Local Campaign Contribution Limits and Policy Regarding Contractor Disclosure of Political Contributions (Agendized at the May 25, 2022 City Council Meeting by Mayor James with the support of Council).

Report from the City Clerk and City Attorney concerning enacting local campaign contribution limits and policy regarding contractor disclosure of Political Contributions.

City Clerk Baade responded to Council inquiries concerning the potential challenges with publishing a summary of Form 460’s and Form 497’s.

MOTION BY MAYOR JAMES, SECOND BY COUNCILMEMBER
KNOBLOCK, CARRIED 5-0, to create a link on the homepage to FPPC filings related to upcoming City elections.

MOTION BY MAYOR JAMES, SECOND BY COUNCILMEMBER
KNOBLOCK, CARRIED 5-0, to table this Item.

C. Code Amendment – Prohibiting Unlawful Possession of Catalytic Converters
Report from the City Attorney concerning the introduction of an ordinance prohibiting the unlawful possession of catalytic converters.

Deputy City Attorney Hull presented on the proposed Code amendment.

Captain Benfield of San Clemente Police Services reported to Council the potential impact adoption of the ordinance will have on enforcement.

MOTION BY COUNCILMEMBER KNOBLOCK, SECOND BY MAYOR PRO
TEM DUNCAN, CARRIED 5-0, to introduce Ordinance No. 1733 entitled

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN
CLEMENTE ADDING CHAPTER 10.54 (UNLAWFUL POSSESSION OF A CATALYTIC CONVERTER PROHIBITED) OF TITLE 10 (VEHICLES AND

TRAFFIC) TO THE SAN CLEMENTE MUNICIPAL CODE ESTABLISHING

REGULATIONS PROHIBITING THE UNLAWFUL POSSESSION OF
CATALYTIC CONVERTERS.

D. Consideration of a Future Amphitheater Site and Development of a Related Citizen Committee (Agendized at the April 19, 2022 Council Meeting by Councilmember Ferguson, with the support of Councilmember Knoblock and Mayor James).

Report from the Beaches, Parks and Recreation Director and the Economic Development Officer concerning the consideration of a 24 City Council Minutes – Regular and Special City Council Meeting of August 16, 2022 Page 13 future amphitheater site and development of a related citizens committee.

Economic Development Officer Lightfoot and Beaches, Parks and Recreation Director Wylie presented on the potential for the development of an amphitheater and previous action on an amphitheater project.

MOTION BY COUNCILMEMBER FERGUSON, SECOND BY MAYOR
PRO TEM DUNCAN, CARRIED 4-1 (COUNCILMEMBER WARD VOTING
NOE), to establish a Citizens Committee with each Councilmember appointing one member to further analyze the feasibility of an amphitheater.

Staff will agendize for the September 6, 2022 City Council Meeting a process for advertising/appointing of citizens to the committee.

E. Use of Unmanned Aviation Systems or “Drones” to Inspect Open Space Areas (Agendized at the May 25, 2022 City Council Meeting by Mayor James, with the support of Mayor Pro Tem Duncan and Councilmember Knoblock)
Report from Deputy Community Development Director concerning the use of unmanned aviation systems or “Drones” to inspect open space areas.

Deputy Community Development Director Atamian presented on the use of unmanned aviation systems or “Drones” to inspect open space areas and responded to Council inquiries.

MOTION BY MAYOR JAMES, SECOND BY COUNCILMEMBER WARD,
CARRIED 5-0, to contract with the County to provide unmanned aircraft (drone) inspection services until the next budget cycle. Staff, as a part of the next budget cycle, will provide analysis of having an in-house unmanned aircraft (drone) program that will include costs for equipment and staff.

F. Consideration of a Resolution calling on the California Legislature to Enhance the Confidence of the Voting Public in Election Outcomes Through Improved Election Processes (Agendized at the July 19, 2022 Council Meeting by Councilmember Knoblock, with the support of Mayor James).

Robbin Ward spoke in opposition to the Resolution.

Lisa Hazelton spoke in support to the Resolution.

Donna Vidrine, San Clemente, spoke in opposition to the Resolution. 25 City Council Minutes – Regular and Special City Council Meeting of August 16, 2022 Page 14 David Hatoff, San Clemente, spoke in opposition to the Resolution.

Louise Herbert, San Clemente, in opposition to the Resolution.

Trudy Podobas, San Clemente, in opposition to the Resolution.

Dennis Kamp, San Clemente, spoke in opposition to the Resolution.

Amanda (no last name provided) spoke in support to the Resolution.

Dara Cortes, San Clemente, spoke in opposition to the Resolution.

Kourtney Morrow, San Clemente, spoke in opposition to the Resolution.

Mark Enmier, San Clemente, spoke in opposition to the Resolution.

Marjorie Sosa, San Clemente, spoke in opposition to the Resolution.

Jack Thorworth, spoke in opposition to the Resolution.

Petti Van Rekom, San Clemente, spoke in opposition to the Resolution.

Mike (no last name provided), San Clemente, spoke in support to the Resolution.

Gene (no last name provided), San Clemente, spoke in support to the Resolution.

MOTION BY COUNCILMEMBER KNOBLOCK, SECOND BY
COUNCILMEMBER FERGUSON, FAILED 2-3 (COUNCILMEMBER

WARD, MAYOR PRO TEM DUNCAN AND MAYOR JAMES VOTING
NOE), to adopt a resolution calling on the California legislature to enhance the confidence of the voting public in election outcomes through improved election processes.

G. Discussion of Email Redactions (Agendized at the July 19, 2022 Meeting by Councilmember Ferguson, with support of Councilmember Knoblock) Martina (no last name provided) opined the City is not transparent and doxed members of the public.

Brad (no last name provided) commented on the redaction practices by the City and free speech.

MOTION BY COUNCILMEMBER WARD, SECOND BY MAYOR PRO TEM
DUNCAN, CARRIED 3-2 (COUNCILMEMBER FERGUSON AND
COUNCILMEMBER KNOBLOCK VOTING NOE), to table this item. 26 City Council Minutes – Regular and Special City Council Meeting of August 16, 2022 Page 15 H. Lease Agreement for Concession Operations at the T-Street Concession Building
Report from the Economic Development Officer concerning the lease agreement for the T-Street Concession Building.

Economic Development Officer Lightfoot reviewed the contents of the Administrative Report and responded to Council inquiries.

MOTION BY COUNCILMEMBER FERGUSON, SECOND BY MAYOR
PRO TEM DUNCAN, CARRIED 4-1 (COUNCILMEMBER WARD VOTING
NOE), to:

1. Approve, and authorize the City Manager to execute, Contract No.

C22-48, a building lease agreement, by and between the City of San Clemente and Organic Concepts, LLC., for a five year lease term.

2. Waive any permit fees associated with tenant-initiated improvements to the T-Street Concession building.

MEETING RECESSED
Council recessed at 10:20 p.m. and reconvened at 10:24 p.m., with all Councilmembers present.

11. ORAL COMMUNICATIONS (Part 2)
Audrey Brunier spoke on San Clemente becoming a sanctuary for life city.

Pastor Juli Patten commented on homelessness in San Clemente.

12. REPORTS (continued from Business Meeting Part 1).

A. Commissions and Committees
(1) Accept the Resignation of Amy Tallakson – Public Safety Committee

MOTION BY MAYOR JAMES, SECOND BY COUNCILMEMBER
KNOBLOCK, CARRIED 5-0, to:

1. Accept the resignation of Amy Tallakson from the Public Safety Committee, with regret.

Motion continued on following page
27 City Council Minutes – Regular and Special City Council Meeting of August 16, 2022 Page 16

2. Direct staff to solicit applications for a technical professional with a public safety background to fill the position.

B. City Manager
City Manager Sund reported that the following professional services contracts were executed under his signature authority: 1) Trauma Intervention Programs – Trauma Intervention Services in the amount of $8,085; 2) BKF Engineers – First Amendment to Montalvo Canyon Outlet Improvements in the amount of $48,280 (an increase of $40,000); 3) Jilk Heavy Construction – Maintenance and Inspection Services Mariposa Pedestrian Beach Trail Bridge in the amount of $39,900; 4) Eckersall – GIS Consulting Services in the amount of $24,950; 5) Sancon – Concordia Elementary School Field Sewer Line Rehabilitation in the amount of $24,490; 6) Mike Linares – CDBG Program Administration in the amount of $30,500.

C. City Attorney
None.

D. Council Members
Council requested copies of the noise report associated with pickleball play at San Gorgonio Community Park.

Councilmember Knoblock, with the support of Mayor Pro Tem Duncan requested that the City Manager research and email Council with regard to canyon lighting at 3187 La Rambla and code enforcement action.

Councilmember Ward requested that staff research State grants to help homeowner associations remove trash from canyons.

Council requested that the City Manager schedule Council subcommittee meetings with Salty Turf with regard to its interest in installing a miniature golf course on the 1.3 acres of land located adjacent to the solar panels at the Vista Hermosa Sports Park. It was noted that the City would issue a Request for Proposals to enable other operators to submit proposals if a miniature golf course is determined to be a desired amenity for Vista Hermosa Sports Park.

Mayor James, with support of Councilmember Knoblock and Councilmember Ward, agendized the possibility if establishing a policy that addresses the use of City letterhead by members of the City Council.

E. Council Subcommittee Updates
28 City Council Minutes – Regular and Special City Council Meeting of August 16, 2022 Page 17 None.

13. Adjournment.

MOTION BY MAYOR JAMES, SECOND BY COUNCILMEMBER KNOBLOCK, CARRIED 5-0, to adjourn at 10:47 p.m, to an Adjourned Regular Meeting to be held on August 30, 2022 at 6:00 p.m. for the purpose of meeting in joint session with Commissions and Committees. The meeting will take place at the Municipal Golf Course banquet room, located at 150 Avenida Magdalena, San Clemente.

CITY CLERK of the City of
San Clemente, California
MAYOR of the City of
San Clemente, California
29 AGENDA REPORT

CITY OF SAN CLEMENTE
City Council Meeting
Community Center
100 N. Calle Seville
San Clemente, California
www.san-clemente.org
Meeting Date: 9/6/2022 Agenda Item: (2)
Department: Choose an item.

Prepared By: Click or tap here to enter text.

Click or tap here to enter text.

Agendized by: Click or tap here to enter text.

Subject:

APPROVE THE MINUTES OF THE JOINT CITY COUNCIL MEETING OF AUGUST 30, 2022 Fiscal Impact:

Click or tap here to enter text.

Summary:

Click or tap here to enter text.

Background:

Click or tap here to enter text.

Discussion:

Click or tap here to enter text.

Recommended Actions:

Staff Recommendation
Click or tap here to enter text.

Attachment:

Click or tap here to enter text.

Notification:

Click or tap here to enter text.

CITY OF SAN CLEMENTE Page 1 of 1 Printed on 9/7/2022
powered by Legistar™ 30

CITY OF SAN CLEMENTE
Joint City Council/Commissions/Committees Meeting Minutes August 30, 2022
These minutes reflect the order in which items appeared on the meeting agenda and do not necessarily reflect the order in which items were actually considered.

A Joint City Council/Commissions/Committees Meeting was called to order on August 30, 2022 at 6:03 p.m. at the Municipal Golf Course Banquet Room, located at 150 E.

Magdalena, San Clemente, California, by Mayor James.

CITY COUNCIL DUNCAN, FERGUSON, WARD, MAYOR JAMES

MEMBERS PRESENT

CITY COUNCIL KNOBLOCK

MEMBERS ABSENT
PLANNING COMMISSION DAVIS, CRANDELL , McCAUGHAN, McKHANN,

MEMBERS PRESENT PRESCOTT-LOEFFLER,

PLANNING COMMISSION CAMP, COSGROVE

MEMBERS ABSENT

GOLF COURSE AZZOLLINI, DIVEL, HAMILTON, VEALE

COMMITTEE MEMBERS

PRESENT

GOLF COURSE PAGE

COMMITTEE MEMBERS
ABSENT

BEACHES, PARKS AND ELLIOTT, FEUERSTEIN, MAE-WEINSTEIN
RECREATION COMMISSION MEMBERS

PRESENT

BEACHES, PARKS AND AMBROSE, CAMPOPIANO, FOREMASTER,

RECREATION COMMIS- ROUSSEAU

SION MEMBERS ABSENT
31 Joint City Council/Commissions/Committees Meeting of August 30, 2022 Page 2

HUMAN AFFAIRS ANDERSON, BROOKS, EDONE, JOHNSON,

COMMITTEE MEMBERS WASHINGTON

PRESENT

HUMAN AFFAIRS SALAS, SCHACHTER

COMMITTEE MEMBERS
ABSENT

PUBLIC SAFETY COMMITTEE BERKUTA, HANRAHAN, HIGHTOWER, LOEFFLER

MEMBERS PRESENT PLUS EX-OFFICIO, NON-VOTING MEMBER

CAPTAIN BENFIELD

PUBLIC SAFETY COMMITTEE EX-OFFICIO, NON-VOTING MEMBERS CAPTAIN

MEMBERS ABSENT MELLOT AND CHIEF CAPOBIANCO

INVESTMENT ADVISORY BOURQUE, CARTER, SMITH

COMMITTEE MEMBERS

PRESENT

INVESTMENT ADVISORY TAYLOR, KNOBLOCK

COMMITTEE MEMBERS
ABSENT
* * *

1. CALL TO ORDER
The Joint Meeting was called to order by Mayor James at 6:03 p.m.

2. Pledge of Allegiance
Charlie Smith led the Pledge of Allegiance.

3. COMMISSION/COMMITTEE REPORTS
Planning Commission
Chair McKhann reported that the Planning Commission is evaluating permit streamlining opportunities, reviewing specific plan updates, continuing to update the Housing Element and continuing work on the Local Coastal Plan with the California Coastal Commission.
32 Joint City Council/Commissions/Committees Meeting of August 30, 2022 Page 3 Golf Course Committee
Chair Divel reviewed the history of the municipal golf course and reported the municipal golf course has seen a 10% increase in rounds over the previous year; acknowledged the hard work of staff to maintain the facility.

Investment Advisory Committee
Committee Member Carter reported on the priorities of the Investment Advisory Committee and the long term planning to allow funds to be available for City projects. Additionally Committee Member Carter addressed the current economic inflation, how it has affected the City’s investments and the removal of super national investments from the City’s portfolio.

Human Affairs Committee
Chair Edone reported that the Human Affairs Committee is establishing priorities for the upcoming year and has started working on several new programs within the City that include: a trade program for students who are not college bound, homeless resource fair, and every 15 minutes and safe rides program for high school students.

Beaches, Parks and Recreation Commission
Commissioner Feuerstein reviewed the Beaches, Parks and Recreation Commission’s accomplishments for the previous year which included updates on the site specific master plans, playground alternatives for San Gorgonio and Steed Parks, review of the recreation reservation system, and the review of mural placement. For the upcoming year, the Commission plans to work on the following projects: sand replenishment, fee study, process review for sports partnership, and site-specific plan for Steed Park.

Public Safety Committee
Committee Member Loeffler provided an overview of the Public Safety Committee’s accomplishments for the previous year, which includes working with staff, Council and Public Safety (Orange County Sheriff’s Department, Orange County Fire Authority, and Marine Safety) to address storage of private property on public property, removal of shopping carts, and maintenance of bicycles in public. Additionally, the committee has worked with the community and the I-5 Freedom Network to reduce human trafficking. For the upcoming year, the Committee will work on e-bike safety, emergency planning, and establishing citywide neighborhood watch programs.
33 Joint City Council/Commissions/Committees Meeting of August 30, 2022 Page 4

4. Overview of Brown Act and Parliamentary Procedures
This presentation took place after the meeting was adjourned.

5. ORAL COMMUNICATIONS
Concerned Citizen commented on the integrity of staff and information provided to Council and Commission/Committees and equal quality of life.

Warren Vidrine commented in support of various projects within the City including sand replenishment, e-bike safety, desalination, energy alliance and voting by district.

Donna Vidrine commented on the Public Safety Committee and the need for action on emergency preparedness and neighborhood watch program.

Amanda Q commented on the town hall meeting concerning Max Berg Plaza Park and efforts to clean the area.

6. ADJOURNMENT

MOTION BY MAYOR JAMES, SECOND BY COUNCILMEMBER WARD,
CARRIED 4-0 (COUNCILMEMBER KNOBLOCK ABSENT), to adjourn at 6:46 p.m. to an Adjourned Regular Meeting to be held on August 31, 2022 at 5:00 p.m., for the purpose of conducting a Joint Study Session with City Council and Planning Commission concerning the project at 654 Camino de los Mares. The meeting will take place in the Community Center Auditorium, located at 100 N. Calle Seville, San Clemente.

The next regular business meeting is scheduled for September 6, 2022. * The Brown Act and Parliamentary Procedure Presentation that appeared on the agenda as Item #4 occurred immediately after the meeting was adjourned.

CITY CLERK of the City of
San Clemente, California
MAYOR of the City of
San Clemente, California
34 AGENDA REPORT

CITY OF SAN CLEMENTE
City Council Meeting
Community Center
100 N. Calle Seville
San Clemente, California
www.san-clemente.org
Meeting Date: 9/6/2022 Agenda Item: (1)
..agendizedby
Subject:

PUBLIC SAFETY COMMITTEE REGULAR MEETING MINUTES OF MAY 24, 2022 CITY OF SAN CLEMENTE Page 1 of 1 Printed on 9/7/2022
powered by Legistar™ 35
36 37
38 39
40 AGENDA REPORT

CITY OF SAN CLEMENTE
City Council Meeting
Community Center
100 N. Calle Seville
San Clemente, California
www.san-clemente.org
Meeting Date: 9/6/2022 Agenda Item: (2)
Department: Choose an item.

Prepared By: Click or tap here to enter text.

Click or tap here to enter text.

Agendized by: Click or tap here to enter text.

Subject:

PUBLIC SAFETY COMMITTEE REGULAR MEETING MINUTES OF JUNE 28, 2022 Fiscal Impact:

Click or tap here to enter text.

Summary:

Click or tap here to enter text.

Background:

Click or tap here to enter text.

Discussion:

Click or tap here to enter text.

Recommended Actions:

Staff Recommendation
Click or tap here to enter text.

Attachment:

Click or tap here to enter text.

Notification:

Click or tap here to enter text.

CITY OF SAN CLEMENTE Page 1 of 1 Printed on 9/7/2022
powered by Legistar™ 41
42 43
44 45
46 47

AGENDA REPORT

CITY OF SAN CLEMENTE
City Council Meeting
Community Center
100 N. Calle Seville
San Clemente, California
www.san-clemente.org
Meeting Date: 9/6/2022 Agenda Item: (3)
Department: Choose an item.

Prepared By: Click or tap here to enter text.

Click or tap here to enter text.

Agendized by: Click or tap here to enter text.

Subject:

ZONING ADMINISTRATOR REGULAR MEETING MINUTES OF AUGUST 4, 2022 Fiscal Impact:

Click or tap here to enter text.

Summary:

Click or tap here to enter text.

Background:

Click or tap here to enter text.

Discussion:

Click or tap here to enter text.

Recommended Actions:

Staff Recommendation
Click or tap here to enter text.

Attachment:

Click or tap here to enter text.

Notification:

Click or tap here to enter text.

CITY OF SAN CLEMENTE Page 1 of 1 Printed on 9/7/2022
powered by Legistar™ 48
49 50
51 AGENDA REPORT

CITY OF SAN CLEMENTE
City Council Meeting
Community Center
100 N. Calle Seville
San Clemente, California
www.san-clemente.org
Meeting Date: 8/18/2022 Agenda Item: (4)
Department: Choose an item.

Prepared By: Click or tap here to enter text.

Subject:

ZONING ADMINISTRATOR REGULAR MEETING MINUTES OF AUGUST 18, 2022 Fiscal Impact:

Click or tap here to enter text.

Summary:

Click or tap here to enter text.

Background:

Click or tap here to enter text.

Discussion:

Click or tap here to enter text.

Plan and Policy Consistency:

The (project/action/approval) is consistent with the following General Plan Goals and Policies:
· (Insert Name of General Plan Element) Goal: (Insert goal) · Policy XX-X.XX. (Insert policy)
· Policy XX-X.XX. (Insert policy)
· (Insert Name of General Plan Element) Goal: (Insert goal) · Policy XX-X.XX. (Insert policy)
In addition, the (project/action/approval) is consistent with the following (goal/policy) of the (CIP Plan/Bicycle and Pedestrian Master Plan/Parks Master Plan/insert other adopted plan or policy) in that (explain why the project/action/approval is consistent).

Council Strategy:

The (project/action/approval) is consistent with Council Strategy X - (insert strategy) - in that (explain why the project/action/approval is consistent).

Recommended Actions:

Staff Recommendation
Click or tap here to enter text.

CITY OF SAN CLEMENTE Page 1 of 2 Printed on 9/7/2022
powered by Legistar™ 52
Meeting Date: 8/18/2022 Agenda Item: (4)
Attachment:

Click or tap here to enter text.

Notification:

Click or tap here to enter text.

CITY OF SAN CLEMENTE Page 2 of 2 Printed on 9/7/2022
powered by Legistar™ 53
These minutes will be approved by the Zoning Administrator on 9/22/2022

CITY OF SAN CLEMENTE

MINUTES OF THE REGULAR MEETING

OF THE ZONING ADMINISTRATOR
AUGUST 18, 2022
San Clemente City Hall
First Floor Community Room
910 Calle Negocio
San Clemente, California 92673

1. CALL TO ORDER
Zoning Administrator Gallardo-Daly called the Regular Meeting of the City of San Clemente Zoning Administrator to order on August 18, 2022 at 3:00 p.m. The meeting was held in the First Floor Community Room of City Hall, 910 Calle Negocio, San Clemente, California.

Staff Present: Cecilia Gallardo-Daly, Zoning Administrator Adam Atamian, Deputy Community Development Director
David Carrillo, Assistant Planner
Tamara Tatich, Office Specialist

2. MINUTES
A. Receive and file the minutes of the Regular Zoning Administrator Meeting held on August 4, 2022.

3. ORAL AND WRITTEN COMMUNICATION
None

4. PUBLIC HEARING
A. 149 Avenida Del Mar – Minor Conditional Use Permit 21-204, Captain Mauri’s Beer and Wine ( Morales)
A request to provide beer and wine service for indoor consumption at an existing deli restaurant daily from 7 a.m. to 9 p.m.

Staff recommends that the project be found Categorically Exempt from CEQA pursuant to State CEQA Guidelines Section 15301 (Class 1: Existing Facilities).
54 Minutes of the Zoning Administrator Meeting August 18, 2022 Page 2 On behalf of Community Development Technician Karla Morales, Deputy Community Development Director Adam Atamian summarized the staff report.

Having no questions of staff, ZA Gallardo-Daly opened the public hearing.

There being no public comments, ZA Gallardo-Daly closed the public hearing.

ZA Gallardo-Daly reviewed the staff reports and visited the site. Beer and wine service within restaurants is a conditionally permitted use in the zone and is consistent with the General Plan. The project will be maintining the primary use of the site as a restaurant with proposed alcohol service as an ancillary use. The propsed sale and consumption of beer and wine is contained entirely within the building, and the proposed hours are consistent with other restaurants in the area. The project doesn’t increase seating beyond what is approved and the proposed addition of beer and wine will not be determental to public health or safety. Further, the project will be required to comply with the Conditions of Approval of the permit and also Alcoholic Beverage Control licensing requirements, including the reqirement of employees to receive alcoholic service training.

Based on the information in the staff report and subject to the required Findings and Conditions of Approval, ZA Gallardo-Daly determined the project Categorically Exempt from CEQA pursuant to State CEQA Guidelines Section 15301 (Class 1: Existing Facilities).

Action: The Zoning Administrator adopted Resolution ZA22-016, and approved Minor Conditional Use Permit 21-204, Captain Mauri’s Beer and Wine, subject to the Conditions of Approval.

B. 101 W. Avenida Vista Hermosa – Special Activities Permit 22-195, Saddleback Grocery Distribution (Carrillo)
A request to hold a maximum of eight food distribution events in 2022 at the southeast parking lot at the San Clemente Outlets located at 101 Avenida Vista Hermosa. Event hours are between 10:00 a.m. and 12:00 p.m., with setup at 7:30 a.m. and breakdown at 12:00 p.m. Expected attendance throughout each event is 250 people.

Staff recommends that the project be found Categorically Exempt from CEQA pursuant to CEQA Guidelines Section 15301 (Class 1: Existing Facilities) and Section 15311 (Class 11: Accessory Structures).

Assistant Planner David Carrillo summarized the staff report. 55 Minutes of the Zoning Administrator Meeting August 18, 2022 Page 3 ZA Gallardo-Daly asked the applicant if she would like make a presentation, whereby applicant Susan Langley thanked the City of San Clemente staff and introduced the Saddleback Church staff and volunteers that were in attendance.

Langley presented a summary of previous efforts, stated their successes based on the number of families and individuals served, and reviewed their experience organizing grocery distributions.

Having no questions of the applicant, ZA Gallardo-Daly opened the public hearing.

There being no public comments, ZA Gallardo-Daly closed the public hearing.

ZA Gallardo-Daly reviewed the staff reports and visited the site. ZA GallardoDaly stated that there is ample parking to support this added distribution event twice a month, the proposed area has sufficient space for the set up, the outlets have a proven record of posting events very well, and these events will occur during the week in that it will not interfere with other operations.

Based on the information in the staff report and subject to the required Findings and Conditions of Approval, ZA Gallardo-Daly determined the project Categorically Exempt from CEQA pursuant to CEQA Guidelines Section 15301 (Class 1: Existing Facilities) and Section 15311 (Class 11: Accessory Structures).

Action: The Zoning Administrator adopted Resolution ZA22-017, and approved Special Activities Permit 22-195, Saddleback Grocery Distribution, subject to the Conditions of Approval.

C. 115 W. Avenida Cadiz Minor Exception Permit 22-091 McCormick Residence (Carrillo)
A request to reduce the required minimum front yard setback by less than one foot to accommodate a second-story addition, and to exceed the maximum height limit for walls in the front yard setback area by nine inches, for a retaining wall in the public right-of-way adjoining the subject single-family residence.

Staff recommends that the project be found Categorically Exempt from CEQA pursuant to State CEQA Guidelines Section 15301 (Class 1: Existing Facilities) and 15305 (Class 5: Minor Alterations in Land Use Limitations).

Assistant Planner David Carrillo summarized the staff report.

Having no questions, ZA Gallardo-Daly asked the applicant if they had any comments. Applicant and architect for the project, Christine Lampert gave a presentation that the original house was not built to the front yard setback. They are requesting a waiver to maintain the front of the house as it is and then add a 56 Minutes of the Zoning Administrator Meeting August 18, 2022 Page 4 second story. There is also a non-conforming setback on the westside caused by an over-hang in the sideyard setback, which will be removed to be in compliance.

The eastside is a driveway that is next to the neighbors driveway allowing 20 feet between houses. The applicant explained the finanicial impacts of additional construction if they are not able to obtain a Minor Exception Permit.

ZA Gallardo-Daly stated that the neighborhood consists mainly of single story homes and that a property owner is allowed to add a second story. ZA GallardoDaly asked the applicant/architect if they are able to adhere to the required setbacks in the new addition, adding variation to the front design by stepping back the second story; whereby the applicant/architect stated that it was more affordable to go straight up.

The architectural drawings were passed around to those that were in attendance and the applicant/architect Lampert gave a review of the drawings.

ZA Gallardo-Daly opened the public hearing.

Roger Sahn, neighbor read his letter of opposition to the proposed second story.

Letter is received and filed.

Rob Fenerstein, neighbor asked for clarification on the design and expressed opposition.

Cybil Street, neighbor expressed opposition to allowing exemptions on setbacks.

Denise Vlosky, neighbor expressed opposition to allowing exemptions on setbacks.

Cybil Street read a letter from Tom & Pam Ender, neighbor that expressed opposition to allowing exemptions on setbacks.

Debra Ritchi, neighbor expressed opposition to allowing exemptions on setbacks.

There being no further public comments, ZA Gallardo-Daly closed the public hearing.

ZA Gallardo-Daly reviewed the staff reports and visited the site. ZA GallardoDaly can legalize the wall height for the front yard wall and can make the Findings for maintaining the existing first floor, non-conforming front yard setback in order for the applicant to not tear down or demolish five inches to redevelop the property. ZA Gallardo-Daly expressed concern that the second story addition does not adhere to the setback as new construction. Although minimal, the encroachment length into the front yard setback is approximately thirteen feet in 57 Minutes of the Zoning Administrator Meeting August 18, 2022 Page 5 length. A compelling reason for not stepping back the second story was not accomplished, which would also provide some variation in the front façade. ZA Gallardo-Daly heard the testimony from the neighbors that expressed concern with the request. Minor Exemption Permit that the Zoning Administrator considers is often to allow a property owner to maintain a setback that is nonconforming and has existed a long period of time. In order to make a change or add anything to the property with a non-conforming condition, they need to come to the Zoning Administrator. Even if the addition is in compliance with the code, there is still a non-confomring condition to memorialize. ZA Gallardo-Daly stated that she can make the Findings to memorialize the existing non-conforming condition to the front yard, but she cannot allow it on the second floor. ZA Gallardo-Daly stated that the second story additional shall adhere to the required setback.

ZA Gallardo-Daly informed those in attendance with concern of views that the City does not regulate views, that they are not identified in our municipal code and not standard of review. Therefore, we do not protect private property views.

Alternatively, we utilitize the development standards of setback and heighth limitations to regulate mass, scale and form of structure.

Based on the information in the staff report and subject to the required Findings and Conditions of Approval, Gallardo-Daly determined the project Categorically Exempt from CEQA pursuant to State CEQA Guidelines Section 15301 (Class 1:

Existing Facilities) and 15305 (Class 5: Minor Alterations in Land Use Limitations).

Action: The Zoning Administrator adopted Resolution ZA22-014, and approved Minor Exception Permit 22-091, McCormick Residence, with the following changes: 1) that the Findings in the Resolution which reference the second story addition as included in the Minor Exception Permit be modified to remove the second story addition from those Findings, 2) to clarify that the Minor Exception Permit only applies to the first story, 3) that the addition is required to comply with the setbacks of the code, and is subject to the Conditions of Approval.

5. NEW BUSINESS
None

6. OLD BUSINESS
None

7. ADJOURNMENT
58 Minutes of the Zoning Administrator Meeting August 18, 2022 Page 6 The meeting adjourned at 3:53 p.m. to the Regular Meeting of the Zoning Administrator, which will be held Thursday, September 22, 2022 at 3:00 p.m. at Community Development Department, City Hall, First Floor Community Room, located at 910 Calle Negocio, San Clemente, California.

Respectfully submitted,

SAN CLEMENTE ZONING ADMINISTRATOR
__________________________________
Cecilia Gallardo-Daly, Zoning Administrator
59 AGENDA REPORT

CITY OF SAN CLEMENTE
City Council Meeting
Community Center
100 N. Calle Seville
San Clemente, California
www.san-clemente.org
Meeting Date: 9/6/2022 Agenda Item: (5)
Department: Choose an item.

Prepared By: Click or tap here to enter text.

Click or tap here to enter text.

Agendized by: Click or tap here to enter text.

Subject:

PUBLIC SAFETY COMMITTEE REULAR MEETING MINUTES OF JULY 26, 2022 Fiscal Impact:

Click or tap here to enter text.

Summary:

Click or tap here to enter text.

Background:

Click or tap here to enter text.

Discussion:

Click or tap here to enter text.

Recommended Actions:

Staff Recommendation
Click or tap here to enter text.

Attachment:

Click or tap here to enter text.

Notification:

Click or tap here to enter text.

CITY OF SAN CLEMENTE Page 1 of 1 Printed on 9/7/2022
powered by Legistar™ 60
61 62
63 64
65 66
67 AGENDA REPORT

CITY OF SAN CLEMENTE
City Council Meeting
Community Center
100 N. Calle Seville
San Clemente, California
www.san-clemente.org
Meeting Date: 9/6/2022 Agenda Item: (6)
Department: Choose an item.

Prepared By: Click or tap here to enter text.

Click or tap here to enter text.

Agendized by: Click or tap here to enter text.

Subject:

HUMAN AFFAIRS COMMITTEE SPECIAL MEETING MINUTES OF AUGUST 16, 2022.

Fiscal Impact:

Click or tap here to enter text.

Summary:

Click or tap here to enter text.

Background:

Click or tap here to enter text.

Discussion:

Click or tap here to enter text.

Recommended Actions:

Staff Recommendation
Click or tap here to enter text.

Attachment:

Click or tap here to enter text.

Notification:

Click or tap here to enter text.

CITY OF SAN CLEMENTE Page 1 of 1 Printed on 9/1/2022
powered by Legistar™ 68
These minutes will be considered for approval at the Special Meeting of the Human Affairs on 9/13/22.

CITY OF SAN CLEMENTE

MINUTES OF THE SPECIAL MEETING OF THE

HUMAN AFFAIRS COMMITTEE
August 16, 2022

1. CALL TO ORDER/ROLL CALL
Chair Edone called the Special Meeting of the City of San Clemente Human Affairs Committee to order on August 16, 2022 at 3:42 p.m. The meeting was held in the Friends Room at the San Clemente Aquatic Center.

Committee
Members Present: Stuart Anderson, Lisa Edone, Angeline Johnson, Rosemary Salas, Jill Schachter and Aaron Washington

Absent: Michelle Brooks
Guests: Mayor Gene James (arrived at 4:11 p.m.)
Staff Present: Janet Batchelor, Management Analyst
Tamara Tatich, Office Specialist

2. PLEDGE OF ALLEGIENCE
The Pledge was led by Committee member Washington.

3. APPROVAL OF MINUTES
A. Minutes from the June 14, 2022 Regular Meeting of the Human Affairs Committee.

MOTION BY COMMITTEE MEMBER SALAS, SECONDED BY COMMITTEE MEMBER SCHACHTER AND CARRIED 6-0-1, (Michelle Brooks-absent) to approve the minutes from the June 14, 2022 Regular Meeting of the Human Affairs Committee as submitted.

4. NEW BUSINESS
At Committee member Edone’s request, all Committee members and staff introduced themselves and gave a brief background summary.

A. Nominations and Selection of Human Affairs Committee Chair and Vice Chair
69

Minutes of the Regular Meeting of the Human Affairs Committee of August 16, 2022

A MOTION TO APPOINT LISA EDONE AS CHAIR OF THE HUMAN AFFAIRS

COMMITTEE WAS MADE BY COMMITTEE MEMBER AARON WASHINGTON AND SECONDED BY COMMITTEE MEMBER JILL SCHACHTER. MOTION PASSED 6-0-1 (Brooks absent).

A MOTION TO APPOINT AARON WASHINGTON AS VICE CHAIR OF THE

HUMAN AFFAIRS COMMITTEE WAS MADE BY COMMITTEE MEMBER JILL

SCHACHTER AND SECONDED BY COMMITTEE MEMBER ROSEMARY
SALAS. MOTION PASSED 6-0-1 (Brooks absent).

B. Consideration and Development of the Human Affairs Committee Work Plan
Chair Edone prefaced the discussion with a historical overview of the 2021-22 work plan development. Chair Edone requested that each Committee member review the five work plan projects, determine two to three that they would like to work on, then bring their choices to the next meeting. Chair Edone explained that the Committee does not have a budget; however the Chair is able to request funds for events and other essentials to meet the objectives of the Committee’s work plan.
 Project #1. Homeless Town Hall & Community Resource Fair Chair Edone summarized the various types of resources that are available to the community and the concept of an event that would be hosted at the Community Center. At the conclusion of a discussion, a date for the event would be determined if the project is accepted by the Committee.  Project #2. Resources Directory:

Chair Edone summarized the need to update the current Human Affairs Committee’s online directory resources, and that the page be organized in categories as “tiles” that roll down into “quick links.” The purpose is to enhance the site visitor experience and make resources more accessible.  Project #3. Overall Homelessness Strategy:

Chair Edone advised that the responsibility of solving the homeless issues in San Clemente rests on the City Council. The Human Affairs Committee can assist, but the overall reaching responsibility is the City and the County. Discussion followed and it was determined that the Chair will address the Mayor for more direction.
70

Minutes of the Regular Meeting of the Human Affairs Committee of August 16, 2022  Project #4. Mentorship Program for Young Adults & Grades 6-12 “A Day in the Life”:

Chair Edone gave a conceptual overview of the mentorship program that will engage local businesses and young adults. The work group will decide what the scope of the mentorship may be. Several Committee members expressed their interest in joining the work group.
 Project #5. “Every 15 Minutes” DUI Prevention Program:

Chair Edone gave a conceptual overview of the simulation program that would be held on the San Clemente High School campus and shared the efforts of Committee Member Salas. Discussion followed that supported this project.
 SCHS Humanitarian Award:

Chair Edone stated that this is an award that is presented every year to a San Clemente High School student. All agreed that this project will remain as part of the work plan.

Chair Edone will review any new items being added to the new 2022-23 work plan with Mayor Gene James, the outcome of which will be presented at the next Human Affairs Committee meeting.

The work plan is to be presented to the City Council on October 4, 2022, therefore a Special Meeting of the Human Affairs Committee is necessary to meet the timeline.

By consensus, the Committee approved to hold a Special Meeting on September 13, 2022 at 3:30 p.m. The purpose of the September Special Meeting is to focus on the work plan, add any additional content, break out into four work groups with two to three members in each based on the priority of the projects they prefer, and finalize the 2022-23 work plan.

5. ORAL AND WRITTEN COMMUNICATION
Mayor Gene James welcomed the members to the Human Affairs Committee and thanked each for their service to the community.
71

Minutes of the Regular Meeting of the Human Affairs Committee of August 16, 2022

6. COMMUNICATIONS FROM COMMITTEE MEMBERS AND STAFF
Staff circulated a Human Affairs Committee members’ contact directory and asked that each member approve their information and authorize staff to distribute to the other Committee members.

ADJOURNMENT
CHAIR EDONE ADJOURNED THE MEETING AT 4:28 P.M. TO THE JOINT

COUNCIL/COMMISSION/COMMITTEE MEETING TO BE HELD ON AUGUST 30, 2022 AT 6:00 P.M. AT WEDGEWOOD AT THE SAN CLEMENTE
MUNICIPAL GOLF COURSE LOCATED AT 150 E. MAGDALENA, SAN
CLEMENTE, CALIFORNIA.

Respectfully submitted,
______________________________
Lisa Edone, Chair
Attest: ______________________________
Janet Batchelor, Management Analyst
72 AGENDA REPORT

CITY OF SAN CLEMENTE
City Council Meeting
Community Center
100 N. Calle Seville
San Clemente, California
www.san-clemente.org
Meeting Date: 9/6/2022 Agenda Item: (1)
Department: Choose an item.

Prepared By: Click or tap here to enter text.

Click or tap here to enter text.

Agendized by: Click or tap here to enter text.

Subject:

Approve Wire Transfer Nos.
2699 through 2701 and Warrant Nos.
582951 through 583061, paid on
8-19-22, in the amount of…….……….……..…..…….…..… $ 648,171.86 Fiscal Impact:

Click or tap here to enter text.

Summary:

Click or tap here to enter text.

Background:

Click or tap here to enter text.

Discussion:

Click or tap here to enter text.

Recommended Actions:

Staff Recommendation
Click or tap here to enter text.

Attachment:

Click or tap here to enter text.

Notification:

Click or tap here to enter text.

CITY OF SAN CLEMENTE Page 1 of 1 Printed on 9/7/2022
powered by Legistar™ 73
74 75
76 77
78 79
80 81
82 83

AGENDA REPORT

CITY OF SAN CLEMENTE
City Council Meeting
Community Center
100 N. Calle Seville
San Clemente, California
www.san-clemente.org
Meeting Date: 9/6/2022 Agenda Item: (2)
Department: Choose an item.

Prepared By: Click or tap here to enter text.

Click or tap here to enter text.

Agendized by: Click or tap here to enter text.

Subject:

Approve Wire Transfer Nos.
2702 through 2706 and Warrant Nos.
583062 through 583175, paid on
8-26-22, in the amount of…….……….……..…..…….…..… $ 6,376,489.40 Fiscal Impact:

Click or tap here to enter text.

Summary:

Click or tap here to enter text.

Background:

Click or tap here to enter text.

Discussion:

Click or tap here to enter text.

Recommended Actions:

Staff Recommendation
Click or tap here to enter text.

Attachment:

Click or tap here to enter text.

Notification:

Click or tap here to enter text.

CITY OF SAN CLEMENTE Page 1 of 1 Printed on 9/7/2022
powered by Legistar™ 84
85 86
87 88
89 90
91 92
93 94
95 96
97 98

AGENDA REPORT

CITY OF SAN CLEMENTE
City Council Meeting
Community Center
100 N. Calle Seville
San Clemente, California
www.san-clemente.org
Meeting Date: 9/6/2022 Agenda Item: D.

Department: Choose an item.

Prepared By: Click or tap here to enter text.

Click or tap here to enter text.

Agendized by: Click or tap here to enter text.

Subject:

ORDINANCE NO. 1733 (SECOND READING) - PROHIBITING THE UNLAWFUL POSSESSION OF

CATALYTIC CONVERTERS
Fiscal Impact:

Click or tap here to enter text.

Summary:

Click or tap here to enter text.

Background:

Click or tap here to enter text.

Discussion:

Click or tap here to enter text.

Recommended Actions:

Staff Recommendation
Click or tap here to enter text.

Attachment:

Click or tap here to enter text.

Notification:

Click or tap here to enter text.

CITY OF SAN CLEMENTE Page 1 of 1 Printed on 9/7/2022
powered by Legistar™ 99
ORDINANCE NO. ---

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN
CLEMENTE ADDING CHAPTER 10.54 (UNLAWFUL POSSESSION OF
A CATALYTIC CONVERTER PROHIBITED) OF TITLE 10 (VEHICLES

AND TRAFFIC) TO THE SAN CLEMENTE MUNICIPAL CODE

ESTABLISHING REGULATIONS PROHIBITING THE UNLAWFUL

POSSESSION OF CATALYTIC CONVERTERS
WHEREAS, citizens nationwide have experienced nsing rates of catalytic converter thefts, numbering approximately 26,000 through May 2021; and WHEREAS, citizens statewide have experienced rising rates of catalytic converter thefts, numbering approximately 8,000 through May 2021; and WHEREAS, citizens countywide have experienced rising rates of catalytic converter thefts, numbering approximately 2,000 this year to date; and WHEREAS, the citizens of San Clemente have experienced catalytic converter thefts from automobiles over the past several years; and WHEREAS, there is currently no City, State, or Federal legislation applicable within the City of San Clemente to define and punish catalytic converter thefts absent an identifiable victim; and
WHEREAS, there is currently no City, State, or Federal legislation applicable within the City of San Clemente requiring individuals to provide proof to law enforcement as to how they obtained catalytic converters, thus limiting law enforcement's ability to (1) protect the public by preventing catalytic converter thefts and (2) seize suspected stolen catalytic converters when no victim is present; and
WHEREAS, catalytic converter thefts are on the rise because individuals are incentivized to commit catalytic converter thefts for multiple reasons including, but not limited to: (1) the ease and undetectable nature of committing such thefts, potentially in a matter of seconds and through the use of common tools such as a reciprocating saw; (2) the ability to recycle catalytic converters at scrap metal yards for high dollar returns ranging from $200 to $1,200 per catalytic converter; and (3) loopholes in legislation protecting criminals from prosecution unless a victim can be identified; and WHEREAS, preventing these crimes at present is nearly impossible due to the ease and speed with which catalytic converter thefts can be committed and the difficulty of tracing a particular catalytic converter back to its prior owner (the victim), because catalytic converters typically have no identifying markers; and WHEREAS, the citizens of San Clemente and the Orange County Sheriff's Department are in need of legislation criminalizing mere possession of catalytic converters absent proof of ownership or lawful possession, for multiple reasons including, but not limited to: (1) achieving deterrence by establishing zero-tolerance for catalytic 8-16-22 / 1 0C-3
100
101
102
103

AGENDA REPORT

CITY OF SAN CLEMENTE
City Council Meeting
Community Center
100 N. Calle Seville
San Clemente, California
www.san-clemente.org
Meeting Date: 9/6/2022 Agenda Item: E.

Department: Public Works
Prepared By Masako Hennequin, Associate Civil Engineer
Subject:

ACCEPTANCE AND NOTICE OF COMPLETION FOR THE FY 2021 STREET IMPROVEMENT PROGRAM AND FY 2022 MAJOR STREET MAINTENANCE, CIP PROJECT NOS. 11306 AND 22303
Fiscal Impact:

Yes. The project was completed within the approved budget of $1,333,351.

Summary:

Roy Allan Slurry Seal, Inc. has completed the construction contract within budget and staff recommends Council acceptance.

Background:

The construction contract was awarded to Roy Allan Slurry Seal, Inc. on February 15, 2022 to construct the subject project in the areas shown in the location map provided in Attachment 1 and other locations throughout the City. The purpose of the contract was to perform various types of roadway maintenance to extend the service life of the pavement.

Project cost summary is as follows:

Administration and Engineering Design (rounded up) $34,000 Construction Management and Inspection (rounded up) 47,000 Construction (rounded up) 1,157,000
Total Project Cost (rounded up) $1,238,000
Discussion:

None
Plan and Policy Consistency:

The project is consistent with the following General Plan Goals and Policies:
· Urban Design - Maintenance Goal: Achieve a sustained level of maintenance and improvement of properties, buildings, landscaping and infrastructure that protects property values, encourages additional public and private investments and promotes San Clemente’s high quality of life.
· Policy UD-4.06. Maintenance of Infrastructure and Public Realm. As resources allow, we maintain and where appropriate, improve infrastructure and the public realm, including CITY OF SAN CLEMENTE Page 1 of 2 Printed on 9/7/2022
powered by Legistar™104
Meeting Date: 9/6/2022 Agenda Item: E.
landscaping, sidewalks, signage, furniture and other streetscape elements.

Council Strategy:

The project is consistent with Council Strategy 3 - Update and maintain infrastructure that reflects best available technology and service - in that the project maintains City infrastructure.

Recommended Actions:

STAFF RECOMMENDS THAT the City Council:

1. Accept the FY 2021 Street Improvement Program and FY 2022 Major Street Maintenance, CIP Project Nos. 11306 and 22303;

2. Authorize the Public Works Director to execute and record the Notice of Completion for FY 2021 Street Improvement Program and FY 2022 Major Street Maintenance, CIP Project Nos. 11306 and 22303;

3. Authorize the City Clerk to release the Payment Bond 35 days from the recordation of the Notice of Completion upon verification with the Engineering Division that no liens have been levied against the Contractor, Roy Allan Slurry Seal, Inc.; and

4. Authorize the City Clerk to release the Performance Bond upon receipt of a Warranty Bond in the amount of 25% of the construction cost.

Attachment:

1. Location Map

2. Notice of Completion

3. Staff Report Dated February 15, 2022 (without attachments) Notification:

None
CITY OF SAN CLEMENTE Page 2 of 2 Printed on 9/7/2022
powered by Legistar™105
W. CANADA

AVE PRESIDIO

PUERTO ROYAL

MARBLEHEAD

ELEMENTARY
SCHOOL
PA4 SEWER LIFT

STATION

AVE MESITA

VIA DURAZNO VIA CLAVEL

VIA IRIS

CARRETERA

CM VERA CRUZ

COSTERO VISTA

COSTERO RISCO COSTA SALADA

SARMENTOSO

VIA SOLANA

SARMENTOSO

CRESTA BABIA

MAR ESCARPA

AIRE DE LA SAL

COSTA ESPUMA

CM ESCOLLO

CM COSTADO

AQUA DEL CABALLETE CM CACHONES

COSTA ESCONDIDA CM BOSQUECILLO

CM MOJADO

CM DE LOS MARES

PORTICO DEL SUR

CL CARMELITA

CL DOMINGO

CL VECINO

CL CLASICO CL PORTADA CL MARDARINA

CL PROSPERO

AV FORTUNA

DOMADOR

MIRA DEL SUR MIRA DEL NORTEMIRA DEL OESTE

MIRA VELERO MIRA ADELANTE

MIRA ALLENDE

MIRA LAS OLAS

MIRA COLLADO MIRA PUERTA

PENASCO

VILLAMAR

VIA AMAPOLA

CL VALLARTA

CL HERALDO

CL ESTEBAN

CL FRONTERA

CL EMBOCADURA

CL AMABLE

CL DULCE

CL CONTENTA

CL BRISA

CL GANADERO CL HIDALGO

CL VALLARTA

CL FIERROS

VIA MORADA

CL GUADALAJARA

CL CUMBRE

VIA BELLOTA

CL PIEDRAS

CL DONCELLA

VIA BLANCO

CL HERALDO

PAVOREAL
OTERO

CL GUADALAJARA
ARROYO

PANADERO

CAMINANTE

NOVILUNIO

RIACHUELO
CERCA

LLANO DEL NORTE

ARENILLAS

RIACHUELO
PELODO

LLANO DEL SUR

DEL CABO

ROSALINDA

LAS POSAS

GANADO VIA HOMBRE CL EMILIA

PANTANO

VIA SAGE

COSTERO RISCO

ACANTILADO

ARBOLADO

CM VERA CRUZ

CAMPO RASO
CHARCO
COSTA

TORRENTERRA

VIA SOLANA VIA VIEJO

CM DE LOS MARES

CM DE LOS MARES

CL VERANO

CL CASINO
MARANA
TESORO

CL LA QUINTA

CL AGUA

CL CASITA

CL ALTA VIS

CL GOMERO

ASEO PEREGRINO

CL CETRO

CL PLUMA

CL PERLINO

CL CAMISA

CL LIMA

CL DIVINO

CAMPANILLA
CANCHA

CANTILENA

VIA TUNAS

CRESTA DEL SOL CL LOS OLIVOS

MARBELLA

VIA OLAS

CL CANASTA

CL VICENTE

VIA GOLETA

VIA SUENO

MARBELLA
MARANA

MADRIGAL

VIA CHAPALA

VIA PASA

CL ZORRA

SAN REMO
ZOCALA
MERCED

MAR DEL REY

VIA FLORITAS

VIA FAISAN VIA ZAFIRO

CL ONICE CL JADE

CL AQUAMARINA

CORTE TOPACIO

CL OPALO

VIA MERO

CORTE AMATISA

VIA BARRACUDA

CL ONICE

AVE PICO

COAST HWY

EL CAMINO REAL

EL CAMINO REAL (COAST HWY)

EL CAMINO REAL

VIA SOCORRO

CL DE LOS MOLINOS

EBB TIDE DR

BREAKER DR

PALM DR SEA BREEZE DR BEACH DR CM SAN CLEMENTE

CL ESMERALDA

AVE PICO

VIA SAN ANDREAS

LOS OBREROS LN

VIA BALLENA

AVE MASTIL

AVE ESPADA
A. T. & S. F. R. R.

CL TINAJA

VIA SENDA

CL LAGO

CL DESHECHA

AVE PICO AVE ESTACION SENDA DE LA PLAYA

BUENA VISTA CL SACRAMENTO

AVE HACIENDA

CL LAS BOLAS

VIA CHALUPA CL BURROCL CUADRA

VIA ARBOLEDA

VIA MONTECITO VIA SANTO TOMAS

VIA VISTOSA

VIA CASA LOMA

AVE VAQUERO

VIA VERBENA

VIA MONTEZUMA

AVE VAQUERO

VIA MONTEGO

VIA BANDITA VIA LADO

VIA MONTECITO

CL VISTA TORITOVIA MONTEGO

VIA ALEGRE

CL BARANDA CL GAUCHO CL DESCANSO

CL JUAREZ VIA JUAREZ

CL MACHO

CL SORPRESO CL LUEGO

CL FRONTERA

CL AMIGO

VIA HIDALGO

CL LOBINA

VIA SARGO

AVE MAREJADA CL BALANDRA

VIA MERLUZA

CORTE MERLANGO CORTE CALAMAR

VIA MERLUZA

CM FARO

CM GALEON

CM ANCLA

CL PAISANO

CL CHUECA

VIA CHUECA

CL REATACL GUADALAJARA

CL CORRAL

CM CORSO RIO CM BUCANERO

CL ALMIRANTE

LA PLACENTIA

CL VALLE

AVE DE LA ESTRELLA

CL REDONDEL

CL BONITO

CL MIRADOR

AVE DEL REPOSO

EL PRADO

RINCON CT

CHIQUITA

EL PORTAL

LA RONDA

AVE SIERRA

AVE SIERRA

REVUELTA CT

CL DE INDUSTRIAS AVE NAVARRO

CL OLA VERDE VIA MANTARAYA VIA CONCHA

AVE LAS FLORES

AVE DE LA ESTRELLA

AVE DE LA ESTRELLA

EL PORTAL

CL CAMPO

AVE FACETA

CM LAUREL

VIA TECA

VIA AGUILA

VIA GAVILAN

AVE PLATANAR

CL CIDRA

AVE OLIVA VIA CEREZA

VIA PALMITO

VIA PERA

VIA ZUMAQUE

CL CHAYOTE

VIA GOLONDRINA

PASEO LARO

VIA MANGO

VIA MERLA

VIA NAUTILA

CORTE CARDELINA

AVE AZOR

AVE VISTA HERMOSA VIA TURQUEZA
A. T. & S. F. R. R.

A. T. & S. F. R. R.

A. T. & S. F. R. R.

AVE DE LA GRULLA

AVE ARAGON

AVE PELAYO EL PORTAL

DIJE CT

CAPISTRANO LN

ARENOSO LN LINDA LN
W. MARIPOSA W. MARQUITA

CORTO LN

ALAMEDA LN
WEST MARQUITA LA PALOMA W. CANADA W. MARIPOSA
AVE DEL PONIENTE W. ESCALONES

CL PUENTE

ENCINO LN
W. ESCALONES AVE DEL PONIENTE

CL SEVILLE

ACEBO LN

AVE PALIZADA

LOMA LN

PASEO AGUILA

SEASCAPE CIR

PASEO FLAMENCO

VIA LORO

VIA PAJARO

VIA SARATOGA

DEL GADO RD

SARA WY

PASEO GANSO

SEAVIEW DR

VIA PATO

VIA BREVE

VIA CASCADITA BAY DR

SANDY DR

SHELL DR

SURF DR OCEAN DR

PACIFIC DR
A. T. & S. F. R. R.

BEACH RD

AVE VAQUERO
A. T. & S. F. R. R.

COAST HWY

VISTA DE DONS CL GRANDE VISTA

VIA SAN GORGONIO

VIA SAN JACINTO

CL PRIMA CM CAPISTRANO

VIA VALOR

DEL REY

CL LA VETA

VIA BELLA VISTA AZUL CM MIRA COSTA

VIA PICHON

CL BORREGO

CM ALONDRA

PASEO VIENTO

PASEO HALCON

VIA DE DAUM

LA VENTANA

VISTA DE TODO

VIA NADA

VIA CORBINA

CL QUIETO CL GRANDE VISTA

VIA PAVON

CL ARCO

CL CAMPANA

VIA MARBRISA VIA ONDA

VIA SONRISA

CL MARAVILLA

VIA PACIFICA

AVENIDA MERIDA

AVE PICO

VIA PALACIO

EL CAMINO REAL (COAST HWY)

VISTA ENCANTA

VISTA DEL PONTO

LA ESPERANZA

VISTA CAYENTA

VISTA CANTORA

VIA LA JOLLA

VIA CATALINA

VIA AVILA

AVE CORDOBA

LADERO LN

AVE ARLENA

LA ESPERANZA

AVE PRESIDIO

VIA LA MESA

VIA ROBINA CL PATRICIA

AVE ARLENA VISTA VALINDA

CL ESMARCA CL ALTA VISTA ALCEDO

VIA ASALEA CL PARADISO

CL EMPALME

AVE CABALLEROS
SOLANO

EL ORIENTE

AVE DE LA PAZ

AVE PIZARRO

AVE LA CUESTA

CL MIGUEL

AVE PRESIDIO

CL ESCUELA CL FIESTA CL NEBLINA

CL DEL JUEGO

CL SALIDA

CL SANDIA

CL EMPALME

CL DEL CERRO
W. AVE BARCELONA

EL LEVANTE

AVE SANTA BARBARA AVE MONTEREY
W. AVE CADIZ TRAFALGAR LN

AVE SERRA

AVE DEL MAR AVE CABRILLO

AVE GRANADA

AVE MIRAMAR

AVE VICTORIA

AVE MATEO AVE ROSA

AVE ALGODON

AVE PRESIDIO

MARACAY

BURRIANA

SEGOVIA

AVE COLUMBO

CL PESCADOR

CL VILLARIO

CL DORADO

CL FELICIDAD

CL DE SOTO CL SONORA

CL DE ANZA CL SONORA

CL CORTEZ

EL LEVANTEAVE SAN CARLOS

CL BALBOA

CL RICA

AVE SALVADOR

CL NINA

AVE TERESA

CL FAMILIA

CL DELICADA

CL PUEBLO

CL ROBLES CL FAMILIA

CL MENDOZA

AVE PRESIDIO

PUERTO MORANT

PUERTO CARAVACA

PUERTO VALDEMO

MONTILLA

CL AMANECER

CL NEGOCIO
LORCA

VIA SONRISA

COSTA RUSTICO

AVE VISTA MONTANA
ARISTA

TERRAMAR

DEL CABO

VIA MECHA LA ESPERANZA

SHORECLIFFS GOLF COURSE

MARBLEHEAD

COASTAL

COAST HWY

CM CAPISTRANO

CM FARO

AVE DEL MAR

AVE SERRA
S. OLA VISTA

AVE VISTA HERMOSA

AVE MIRAMAR

AVE GRANADA AVE VICTORIA AVE ROSA

BERNICE AYER MIDDLE SCHOOL

EL CAMINO REAL

SAN GORGORNIO PARK

SHORECLIFFS GOLF COURSE

SHORECLIFFS GOLF COURSE

SHORECLIFFS GOLF COURSE

TRUMAN BENEDICT ELEMENTARY SCHOOL

SHORECLIFFS MIDDLE SCHOOL

AVE PALIZADA

AVE GRANADA

AVE CABRILLO

COMMUNITY CENTER/LIBRARY

AVE PICO

CL DESHECHA

AVE MONTEREY AVE DEL MAR

AVE VICTORIA
CL OSO

LAS PALMAS

ELEMENTARY
SCHOOL

MAX BERG

PLAZA PARK

BUENA VISTA

AVE PELAYO

CL PUENTE

CL DE LOS MOLINOS

CL VALLARTA

CL FRONTERA

CL GAUCHO

VIA BLANCO

AVE FACETA

AVE FRONTERA

CL VALLARTA AVE VAQUERO

MIRA PUERTA CL NUEVO

CL GUADALAJARA

CM CAPISTRANO
5 5

AVE PALIZADA

CL MIGUEL

AVE LA CUESTA CL DORADO

AVE SANTA BARBARA

VISTA OLA

ELORIENTE
AVE

FLORENCIA

BOCA DE LA PLAYACL COLINA

CL CORDILLERA

MONTEREY LN

VIA MANZANA

AVE BUENA
SUERTE

CL FIESTA CL NEBLINA

CL PUEBLO

CL FAMILIA CL DELICADA

TERRAZA VISTA BAHIA

AVE PATERO DE ORO

AVE PATERO DE ORO

MONTE VISTA

AVE VISTA HERMOSA

PICO PARK

JIM JOHNSON MEMORIAL PARK

VISTA HERMOSA

SPORTS PARK

AVE SIERRA

BELLO PANORAMA

VERDE PARK

FORSTER RANCH

COMMUNITY PARK

LOMA CL BELLA SEGURO CL PASEO GALLITA

CL DE LOS MOLINOS
N. OLA VISTA

C I T Y O F S A N C L E M E N T E
910 CL Negocio, Suite 100
San CLEMENTE, CA 92673
Tel (949) 361-6100
Fax (949) 361-8316

LOCATION MAP
i:\cd\engineering\secure\projects\pn 11306-22303 - fy 21 sip-fy 22 msm (parking lots)\06-admin reports\cad\pn11306 fy21 sip location map.dwg 12.14.2021

ATTACHMENT 1
FY 21 STREET IMPROVEMENT PROGRAM
FY 22 MSM (Parking Lot Maintenance)
Project No. 11306 & 22303 106
5 CL LASUEN

AVE SAN LUIS REY
W. AVE ALESSANDRO CL DE LOS ALAMOS

CL LAS PALMAS

AVE LA COSTA LOS BAUTISMOS LN

AVE CRESPI
S. OLA VISTA

AVE LOBEIRO

AVE MONTALVO AVE CALAFIA

PLAZA A LA PLAYA CL CAPRI CL MADIERA

CL MONTE CARLO

CL MAJORCA

PASEO DE LA SERENATA

CL DEL PACIFICO
W. AVE MAGDALENA

CL CITA

AVE DOMINGUEZ

AVE SANTA INEZ

AVE MAGDALENA

AVE SANTA MARGARITA

AVE COSTANSO

AVE COTA

CL BAHIA

ARDILLA LN

CL GOMEZ

AVE MAGDALENA CL DEL
CL DEL

CL BAHIA
A. T. & S. F. R. R.

VISTA AZUL

VIA RANCHO

CL CAMPESINO

CL MARLENA

CL ISABELLA

CL LISA CL ARIANA

CL LOUISA

AVE DE LAS PALMERAS

AVE VISTA DEL OCEANO

CL ARIANA

CL FRANCESCA

CL TIARA

VIA CALANDRIA

VIA COLORSO

VIA ADELIA

VIA JAZMIN

CL DE LAS FOCAS

CL POTRANCA CL DEL ESTABLO

VISTA BLANCA

CL TIBURON

CL POTRO

EL CAMINO REAL (COAST HWY)
A. T. & S. F. R. R.

A. T. & S. F. R. R.

AVE LUCIA

AVE DOLORES

AVE BUENA VENTURA AVE SAN FERNANDO

AVE SAN DIEGO

AVE SAN DIMAS

AVE PALA

AVE SANTA MARGARITA

AVE CARMELO

VISTA MARINA

CAPISTRANO LN

ARENOSO LN LINDA LN

ALAMEDA LN

CORONADO LN

AVE VICTORIA MONTEREY LN

CORTO LN

ALAMEDA LN

STA ANA LN
WEST MARQUITA LA PALOMA W. MARIPOSA

ESCALONES

ENCINO LN

ESPLANADE

ELENA LN

PASADENA CT

CORONA LN

CL SEVILLE

ACEBO LN

AVE PALIZADA

CL ALCAZAR

EL CAMINO REAL (COAST HWY)

VIA MIMOSA

EL CAMINO REAL

VISTA ENCANTA

VISTA DEL PONTO
S. OLA VISTA

AVE SALVADOR

AVE PRINCESA

AVE ACAPULCO

AVE CORNELIO
W. AVE RAMONA W. AVE CORNELIO
W. AVE SAN ANTONIO W. AVE ALESSANDRO
W. AVE SAN ANTONIO
W. AVE JUNIPERO

AVE SAN PABLO

AVE JUNIPERO

AVE SAN GABRIEL AVE SAN GABRIEL CL LA SERNA

VISTA CAYENTA

AVE SAN JUAN

VISTA CANTORA

AVE SAN JUAN
W. PASEO DE CRISTOBAL W. AVE CORDOBA W. AVE GAVIOTA W. AVE VALENCIA

AVE VERDE AVE DE LOS LOBOS MARINOS CL MARIA

VIA LA JOLLA

VIA CATALINA

VIA AVILA

AVE CORDOBA

LADERO LN

AVE ARLENA

LA ESPERANZA

VIA LA MESA

VIA ROBINA CL PATRICIA

AVE ARLENA VISTA VALINDA

CL ESMARCA CL ALTA

VIA ENSUENO

CERRITO CIELO

AVE RAMONA

CL REGLA

AVE TRIESTE

CL LETICIA

LA CIMA

CL AMENO

VISTA ALCEDO

VISTA VALINDA

AVE SAN PABLO

AVE MAGDALENA

AVE ADOBE

AVE BAJA

AVE ACAPULCO

CL CUERVO

AVE ADOBE

VIA TOLUCA

VIA PROMONTORIO

AVE DEL VERDOR VIA COLIBRI

VIA DELFIN

VIA FLORIDA

VIA DESEO

VIA ZAPATA

VIA CISCO

ESPLANADE

CL MARINA
AVE SANTIAGO W. AVE BARCELONA
CL SERENA A. T. & S. F. R. R.

CL TOLEDO

BOCA DEL CANON

LA RAMBLA

LA RAMBLA

CL ROCA VISTA

CL PRIMAVERA

AVE SANTA BARBARA AVE MONTEREY

CAZADOR LN

POCO PASEO

AVE MADRID
S. OLA VISTA
W. AVE CADIZ TRAFALGAR LN

AVE DEL MAR AVE CABRILLO

AVE GRANADA AVE VICTORIA

AVE MATEO AVE ROSA

AVE ALGODON

AVE PRESIDIO

SAN CLEMENTE

STATE BEACH

AVE AMADIS

AVE ESPLANDIAN

LA ESPERANZA

AVE SAN JUAN AVE SAN ANTONIO

CERRITO

AVE DEL MAR

AVE SERRA
S. OLA VISTA
S. OLA VISTA

AVE SAN LUIS REY

AVE MIRAMAR

AVE GRANADA AVE VICTORIA AVE ROSA

AVE LA COSTA

PACIFIC OCEAN SAN CLEMENTE MUNICIPAL GOLF COURSE

AVE DEL PRESIDENTE

CALAFIA
PARK

SAN LUIS REY PARK

PACIFIC OCEAN

PACIFIC OCEAN

CONCORDIA

ELEMENTARY SCHOOL

AVE DEL PRESIDENTE

AVE PALIZADA

AVE GRANADA

AVE CABRILLO
S. EL CAMINO REAL

CL DEL COMERCIO

SAN CLEMENTE

STATE BEACH

COMMUNITY CENTER/LIBRARY

AVE JUNIPERO AVE CORNELIO AVE RAMONA

OLA VISTA
TRAFALGAR LN W. AVE BARCELONA ESPLANADE

AVE MONTEREY AVE DEL MAR

AVE VICTORIA
RITO

AVE SAN PABLO

AVE MONTALVO
W. PASEO DE CRISTOBAL

AVE SAN PABLO

CL MONTE CRISTO

CL MONACO

AVE DE LA RIVERA
5 AVE VICTORIA

AVE SANTA BARBARA

VISTA OLA
W. PASEO DE CRISTOBAL
W. PASEO DE CRISTOBAL

CL CONCHITA

AVE DE LA RIVIERA
W. AVE DE LOS

LOBOS MARINOS

MONTEREY LN

AVE DEL PRESIDENTE

ARRIBA LINDA

AVE BUENA
SUERTE
W. AVE GAVIOTA W. AVE VALENCIA

AVE BUENOS AIRES

SAN CLEMENTE MUNICIPAL GOLF COURSE

CL MAYITA

AVE ORTEGA
W. AVE DE LOS

LOBOS MARINOS

ENTRADA PARAISO
N. OLA VISTA

C I T Y O F S A N C L E M E N T E
910 CL Negocio, Suite 100
San CLEMENTE, CA 92673
Tel (949) 361-6100
Fax (949) 361-8316

LOCATION MAP
i:\cd\engineering\secure\projects\pn 11306-22303 - fy 21 sip-fy 22 msm (parking lots)\06-admin reports\cad\pn11306 fy21 sip location map.dwg 12.20.2021

ATTACHMENT 1
FY 21 STREET IMPROVEMENT PROGRAM
FY 22 MSM (Parking Lot Maintenance)
Project No. 11306 & 22303 107

Recording Requested By:

City of San Clemente
When Recorded, Mail To:

Public Works Department
City of San Clemente
910 Calle Negocio
San Clemente, CA 92673
Recorded for the benefit of the City of San
Clemente and exempt from recording fees
pursuant to Government Code Section 27383.

Space above this line is for Recorder’s Use Only

NOTICE OF COMPLETION
Notice is hereby given by the City of San Clemente, a Municipal Corporation, that a public work of improvement has been completed as follows:

1. Project title or description of work: FY 2021 Street Improvement Program and FY 2022 Major Street Maintenance, CIP Project Nos. 11306 and 22303.

2. Date of completion: July 26, 2022.

3. Street address or legal description of the project site: Various streets

4. Name of owner: City of San Clemente.

5. Interest or estate of owner: Public Facility; Owned in Fee.

6. Address of owner: 910 Calle Negocio, Suite 100, San Clemente, CA 92673

7. Name and address of contractor: Roy Allan Slurry Seal, Inc., 12643 Emments Way, Santa Fe Springs, CA 90670.

I am the Public Works Director / City Engineer for the City of San Clemente, a Municipal Corporation, the owner of the indicated interest or estate in the property described above.

I make this verification on behalf of the City of San Clemente. I have read this Notice of Completion and know its contents. I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct.

Executed on __________________________ in San Clemente, California. _________________________________
Kiel Koger, Public Works Director / City Engineer
City of San Clemente
108
109
110

AGENDA REPORT

CITY OF SAN CLEMENTE
City Council Meeting
Community Center
100 N. Calle Seville
San Clemente, California
www.san-clemente.org
Meeting Date: 9/6/2022 Agenda Item: F.

Department: Public Works
Prepared By Masako Hennequin, Associate Civil Engineer
Subject:

APPROVAL OF CONSTRUCTION CONTRACT FOR FY 2023 PAVEMENT PRESERVATION PROGRAM, CIP PROJECT NO. 23303 WITH PALP INC. DBA EXCEL PAVING COMPANY Fiscal Impact:

Yes. The estimated total project cost of $249,950 is within the total approved budget amount of $250,000 (Account Number 001-416-45730-000-23303).

Summary:

Staff recommends that the City Council approve a construction contract with Palp Inc. DBA Excel Paving Company in an amount not to exceed $238,550 for the purpose of constructing FY 2023 Pavement Preservation Program, CIP Project No. 23303.

Background:

This project consists of asphalt concrete pavement repair to include cold milling and asphalt installation, utility manhole adjustments on various streets within the Forester Ranch area to prepare for next year’s slurry seal program. (See Location Map in Attachment 1) Discussion:

Bids were opened on August 11, 2022 and the results are presented on the Bidders List (Attachment 2). Bids ranged from $238,550 to $637,000, and the lowest responsive bidder was Palp Inc. DBA Excel Paving Company with a bid amount of $238,550.

Project cost summary is as follows:

Construction $238,550
Management & Inspection (approx. 1%) 2,400
Project Contingency (approx. 4%) 9,000
Estimated Total Project Cost $249,950
Plan and Policy Consistency:

The project is consistent with the following General Plan Goals and Policies:
· Urban Design - Maintenance Goal. Achieve a sustained level of maintenance and improvement of properties, buildings, landscaping and infrastructure that protects property values, encourages additional public and private investments and promotes San Clemente’s high quality of life.
· Policy UD-4.06. Maintenance of Infrastructure and the Public Realm. As resources allow, we maintain and where appropriate, improve infrastructure and the public realm, CITY OF SAN CLEMENTE Page 1 of 2 Printed on 9/1/2022
powered by Legistar™111
Meeting Date: 9/6/2022 Agenda Item: F.
allow, we maintain and where appropriate, improve infrastructure and the public realm, including landscaping, sidewalks, signage, furniture and other streetscape elements.

In addition, the project is consistent with the FY 2022-23 Annual Budget and Capital Improvement Program (CIP) in that the project is an approved CIP project.

Council Strategy:

The project is consistent with Council Strategy 3 - Update and maintain infrastructure that reflects best available technology and service - in that the project will maintain City infrastructure.

Recommended Actions:

STAFF RECOMMENDS THAT the City Council:

1. Approve the plans and specifications for FY 2023 Pavement Preservation Program, CIP Project No. 23303; and

2. Approve and authorize the Public Works Director/City Engineer to execute, Contract No. C22- 51, by and between the City of San Clemente and Palp Inc. DBA Excel Paving Company in the amount of $238,550, for FY 2023 Pavement Preservation Program, Project No. 23303 Attachment:

1. Location Map

2. Bidders List

3. Contract
Notification:

None
CITY OF SAN CLEMENTE Page 2 of 2 Printed on 9/1/2022
powered by Legistar™112

VIA DURAZNO VIA PIMPOLLO VIA CALENDULA

BRILLANTE

DIAMANTE

LEGENDARIO

CEPA UNO

CARTA DE PLATA

CARTA TAZA

VINA VIAL

SANGRE DE TORO
RIOJA

PENEDES

VIA SOLANA

SARMENTOSO

CM DE LOS MARES

PORTICO DEL SUR

CL CARMELITA

CL DOMINGO

CL VECINO

CL CLASICO CL PORTADA CL MARDARINA

CL PROSPERO

AV FORTUNA

DOMADOR

MIRA ALLENDE

MIRA LAS OLAS

MIRA COLLADO MIRA PUERTA

PENASCO

VILLAMAR

VIA AMAPOLA

VIA MORADA CL HERALDO

PAVOREAL
OTERO

CL GUADALAJARA
ARROYO

PANADERO

CAMINANTE

NOVILUNIO

RIACHUELO
CERCA

LLANO DEL NORTE

ARENILLAS

RIACHUELO
PELODO

LLANO DEL SUR

ENSENADA

GERALDO
CADENA

ALDEANO ALTURA

DEL CABO

INCLANADO

ROBERTO

ROSALINDA

ESTAMPIDA

AFLORAMIENTO

SOMBREADO

CABALLISTA DEL SUR

CERCADO

LAS POSAS

VIA SAGE
GANADO
FELIPE

ANABELLA

ENRIQUE

NOVILLA

ESTANCIAHIERRO
ARREOS

VIA HOMBRE CL EMILIA

PANTANO

VIA SAGE

VIA NARCISO

VIA VIOLETA

DOMADOR

BONANZA
VACUNO

ESTRIBO

EMINENCIA DEL NORTE

PORTICO DEL NORTE

BONANZA

OBRAJERO

ALFORJA CABALLISTA DEL NORTE
JINETE
REBANO

CM VERA CRUZ

CAMPO RASO
CHARCO
COSTA

TORRENTERRA

VIA TULIPAN

VIA SOLANA VIA VIEJO
MARANA

SAN REMO
MERCED

VIA TULIPAN

BRILLANTE
ARISTA

TERRAMAR

DEL CABO

JULIANA

RENALDO

BERNICE AYER MIDDLE SCHOOL

CITY LIMIT

MIRA PUERTA

CL NUEVO

CM DE LOS MARES

CM DEL RIO

EMINENCIA DEL SUR

C I T Y O F S A N C L E M E N T E
910 CL Negocio, Suite 100
San CLEMENTE, CA 92673
Tel (949) 361-6100
Fax (949) 361-8316

LOCATION MAP
i:\cd\engineering\secure\projects\pn 23303 - fy2023 pavement preservation program\06-admin reports\cad\pn23303 fy2023 ppp location map.dwg 7.11.2022

ATTACHMENT 1
FY 23 PAVEMENT PRESERVATION PROGRAM
Project No. 23303 113
i:\cd\engineering\secure\projects\pn 23303 - fy2023 pavement preservation program\05-bidding\pn23303 bidders listing.docx

BIDDER'S
LISTING BID OPEN TIME: 2:00 PM
BID OPEN DATE: 8-11-2022
PRESENT:

ELECTRONIC BID
MH
Subject: Bid Opening: FY2023 Pavement Preservation Program (Project No. 23303)
No. of Bids: 4
Company Information Bid Bond, Etc. City Bidder is
From
1#
Addendums
NO

ADDENDUM
Amount
Palp, Inc. DBA Excel
Paving Yes
Long
Beach, CA $238,550.00
ONYX Paving
Company, Inc. Yes
Anaheim,
CA $272,000.00
All American Asphalt
Yes
Corona, CA
$399,993.00
Hardy & Harper, Inc.

Yes
Lake Forest,
CA $637,000.00

114
DRAFT
55452.01510\32905704.2
34 SECTION 00500

CONTRACT
SECTION 00500

CONTRACT
THIS CONTRACT is made this _____ day of _________, 2022, in the County of Orange, State of California, by and between the City of San Clemente hereinafter called City, and Palp, Inc DBA Excel Paving Company, hereinafter called Contractor. 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 compliance with the Contract Documents as specified in Article 5 below for the following Project:

FY 2023 PAVEMENT PRESERVATION PROGRAM, Project No. 23303 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 15 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 Two hundred thirty-eight thousand five hundred fifty Dollars ($238,550.00). Payment shall be made as set forth in the General Conditions.

At any time during the term of the Contract, City may, pursuant to the terms and provisions of the Contract Documents, request that the Contractor perform additional work. Contractor shall not perform, nor be compensated for, additional work without written authorization from the City pursuant to the terms and provisions of the Contract Documents.

ARTICLE 4. LIQUIDATED DAMAGES/EARLY COMPLETION INCENTIVE. IN ACCORDANCE WITH GOVERNMENT CODE SECTION 53069.85, IT IS AGREED THAT THE CONTRACTOR WILL PAY CITY THE SUM OF $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 EXCLUDE RECOVERY OF OTHER DAMAGES SPECIFIED IN THE CONTRACT DOCUMENTS.

ARTICLE 5. COMPONENT PARTS OF THE CONTRACT. The “Contract Documents” include the following:

Notice Inviting Bids
115
DRAFT
SECTION 00500

CONTRACT
55452.01510\32905704.2
35 SECTION 00500

CONTRACT
Instructions to Bidders
Bid Form
Contractor’s Certificate Regarding Workers’ Compensation Bid Bond
Designation of Subcontractors
Information Required of Bidders
Non-Collusion 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 CLERK, CITY OF SAN CLEMENTE 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.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed on the respective dates set forth opposite of their signatures. 116
DRAFT
SECTION 00500

CONTRACT
55452.01510\32905704.2
36 SECTION 00500

CONTRACT

CITY OF SAN CLEMENTE
By:________________________________
ATTEST: Its:_______________________________
______________________________ Dated: ____________________, 20____ CITY CLERK of the City of
San Clemente, California
APPROVED AS TO FORM:

BEST BEST & KRIEGER
____________________________
City Attorney

APPROVED AS TO AVAILABILITY
OF FUNDING:
________________________________
Finance Authorization
__________________________
(“CONTRACTOR”)
By:_____________________________
Its:_____________________________
Dated: __________________, 20____

END OF CONTRACT
117

AGENDA REPORT

CITY OF SAN CLEMENTE
City Council Meeting
Community Center
100 N. Calle Seville
San Clemente, California
www.san-clemente.org
Meeting Date: 9/6/2022 Agenda Item: G.

Department: City Manager
Prepared By: Jonathan Lightfoot, Economic Development Officer Subject:

SUPPLEMENTAL APPROPRIATION FOR SLOPE ANALYSIS AT 100 PRESIDIO Fiscal Impact:

Yes. Staff anticipates an unbudgeted cost of $110,000. The Public Works department already has active Professional Service Agreements with three on-call geotechnical consultants. Staff will solicit bids from amongst those firms on a time and materials basis for not to exceed $110,000.

Summary:

The proposed scope of services is to perform a geotechnical landslide evaluation of the ancient landslide beneath the area of Old City Hall at 100 Avenida Presidio. Regional geologic maps of the area and previous subsurface, geotechnical evaluations depict the subject site and surrounding community as underlain by a large, suspected ancient landslide, although only limited subsurface data has been gathered to date. Staff will seek to expand that knowledge base through contracting for additional geotechnical investigation and modeling to demonstrate the depth and lateral extent of the ancient landslide. Based on this model, the City will have a better understanding of the current stability of the landslide and whether any actions or mitigations could be undertaken to improve the stability. This information will inform what scale of future development may be suitable on this City owned property.

Background:

The City Council declared the former City Hall site as surplus property on May 4, 2021. Staff subsequently initiated the state-required Surplus Land Act (SLA) procedures, including providing a Notice of Availability (NOA) to the California Department of Housing and Community Development (HCD) to other public agencies and interested affordable housing developers. The City received multiple letters of interest through the 60 day waiting period and proceeded into the required 90-day negotiation stage. The City has exceeded that period of time; however, to complete good faith negotiations, it is important to gain a better understanding of the geotechnical conditions of the site in order to complete negotiations.

Discussion:

Typically, the City would evaluate soils reports and geotechnical information during the building permit review of construction drawings. However, given the known (or assumed) ancient landslide under this site, and the requirement to specifically address unit counts of proposals and corresponding offers for sale or lease, the City must evaluate the environmental implications of development prior to entering into any form of disposition agreement. This additional analysis by a qualified on-call geotechnical consultant will assist the City in determining whether any special mitigation activity will be required in order to support development at the site. This information is necessary for the City to conclude its good faith negotiations with the parties that have submitted CITY OF SAN CLEMENTE Page 1 of 2 Printed on 9/1/2022
powered by Legistar™118
Meeting Date: 9/6/2022 Agenda Item: G.
necessary for the City to conclude its good faith negotiations with the parties that have submitted qualified offers pursuant to the SLA process.

Plan and Policy Consistency:

The action is consistent with the following General Plan Goals and Policies:
· Safety Element Goal: Minimize risk to life, property, economic and social dislocation and disruption of vital services that could result from geologic and seismic hazards. o Policy S-1.01. Up to Date Information. We collect and maintain relevant data on fault locations, soils reports and other information that can help identify seismic or liquefaction potential and areas at risk of landslides.
o Policy S-1.04. Landslide Risk. Where development is proposed on unstable terrain, excessively-steep slopes and other areas deemed hazardous due to landslide risk, it is prohibited unless acceptable mitigation measures are implemented. o Policy S-1.05. Assessment and Mitigation. Where appropriate, we require new development to assess the potential for liquefaction, slope instability and landslides and require that appropriate measures be incorporated into the project to mitigate such hazards.

The action is also consistent with Purchasing Policies, including:
· 201-10-4: Supplemental Appropriations, which requires that supplemental appropriations and transfers between budget funds be reviewed and approved by the City Council; and · 201-2-2: Purchasing Policies and Procedures for Public Works Projects, which requires that staff solicit bids from a list of qualified contractors for projects that are estimated between $30,001 - $125,000. The City estimates this project to be under $125,000 and will solicit bids from the previously established on-call geotechnical consultant list.

Council Strategy:

The action is consistent with Council Strategy 1 - Ensure financial stability as demonstrated by low debt, high ratings, and new revenue generation - in that it furthers the City’s opportunity of receiving one time or recurring revenues through the disposition of surplus property.

Recommended Actions:

Staff Recommendation
Staff recommends that the City Council approve an appropriation of one hundred and ten thousand dollars ($110,000.00) from the General Fund Unassigned Fund Balance into account 001-411-43690- 000-00000, Development Engineering - Other Professional Services and authorize the Public Works Director to execute a contract with the selected firm to perform the scope of services as depicted in their proposal and pursuant to their existing Professional Services Agreement.

Attachment:

None
Notification:

None
CITY OF SAN CLEMENTE Page 2 of 2 Printed on 9/1/2022
powered by Legistar™119

AGENDA REPORT

CITY OF SAN CLEMENTE
City Council Meeting
Community Center
100 N. Calle Seville
San Clemente, California
www.san-clemente.org
Meeting Date: 9/6/2022 Agenda Item: H.

Department: Finance and Administrative Services
Prepared By: Elora Dutra, HR Analyst - Risk Management, and Johanne Thordahl, HR Manager Subject:

WORKERS’ COMPENSATION THIRD PARTY ADMINISTRATIVE SERVICES AGREEMENT Fiscal Impact:

Yes, funds are included in the FY 2022-23 budget in the amount of $30,000 for this ongoing service.

Summary:

Staff seeks Council approval on a professional services agreement with AdminSure, Inc. for the purpose of providing Workers’ Compensation claims administration services.

Background:

The City of San Clemente has been self-insured for Workers’ Compensation since 2002. The City self-insures for the first $300,000 per claim and purchases excess insurance coverage through Public Risk Innovation, Solutions, and Management (PRISM), formerly CSAC Excess Insurance Authority (CSAC-EIA). Previous research by staff and Bickmore Actuarial concluded that the current selfinsurance arrangement is the most cost effective option. The City is classified by its excess insurance carrier as low risk for workers’ compensation and their required actuarial reports indicate selfinsurance continues to be the best way for the City to cover its workers’ compensation obligation under the laws of the State of California.

As a self-insured employer, the City uses the services of a third party administrator (TPA) to administer the claims process. Administering claims is very complex as there are numerous mandated deadlines and a wide body of law and court cases that must be followed. PRISM provides oversight of the claims administrators of its member agencies. They conduct biennial audits to assist in assessing the performance of the TPA and report the results to the member agency. The City received the latest claims audit report in February 2021 and the next audit is scheduled to begin January 2023. In addition, PRISM provides members with support in selecting a TPA by designating five preferred service providers and providing a comparison of services and costs on a baseline with providers ranking above or below the baseline. The City has contracted with AdminSure, Inc. for claims administration services since September 2008. Staff recommends continuing to utilize their services based on performance, continuity, and cost.

Discussion:

The City has contracted with AdminSure, Inc. since September 2008 for workers’ compensation claims administration services. They were selected through the Request for Proposal process and, at that time, Council approved the recommended three-year agreement. Council approved additional years based on staff recommendation in 2011 and 2017. The term of the contract is expiring on September 27, 2022 and staff is recommending the Council approve an additional five-year agreement. Continuity of this service is important to provide injured employees as well as the Human CITY OF SAN CLEMENTE Page 1 of 3 Printed on 9/1/2022
powered by Legistar™120
Meeting Date: 9/6/2022 Agenda Item: H.
agreement. Continuity of this service is important to provide injured employees as well as the Human Resources (HR) staff consistent interaction with a provider and claims adjuster that has history with the claimants.

HR staff continue to be very satisfied with the service AdminSure, Inc. provides. They have extensive experience handling public agency claims and provide claims administration services for 55 other PRISM members. They are familiar with our tail claims and internal policies. A minimum of a five-year agreement for claims administration services is standard in the workers’ compensation industry and long-term service relationships can continue for fifteen years or more. The City used its previous claims administrator for thirteen years before they “left the market” necessitating a change. Another example is California JPIA, our liability pool; they have been with their workers’ compensation TPA for twenty years.

AdminSure, Inc. - Previous
Expenditures
Year Total Cost
2017-2018 $30,162
2018-2019 $27,352
2019-2020 $25,223
2020-2021 $20,627
2021-2022 $21,942
In addition to being satisfied with the services and the desire for a long-term service relationship, cost is a consideration as well. The cost matrix provided by PRISM indicates that AdminSure, Inc. fees are 9% below the baseline for workers’ compensation claims administration. The industry standard for a public entity is $146 per-open claim, and the City currently pays $106 per open claim. AdminSure, Inc. is proposing to keep the annual fee increase limited as shown in the table below. Because the City averages 18 open claims per month, the fee increase is approximately $700 per year.

Proposed 5 year contract -
cost per open claim fee
structure
Year Term Per Open Claim Anticipated Yearly
Cost
1 October 2022- September 2023 $110 $23,760
2 October 2023- September 2024 $113 $24,408
3 October 2024- September 2025 $116 $25,056
4 October 2025- September 2026 $119 $25,704
5 October 2026- September 2027 $122 $26,352
City Policy and Procedure #201-2-3, Selection of Professional Contractors, establishes the methods for selecting service providers and includes a competitive bid process. The City Council has the authority to determine that the procedure need not be followed when direct selection of a professional services contractor is in the interest of the public in certain situations. AdminSure, Inc. is a PRISM CITY OF SAN CLEMENTE Page 2 of 3 Printed on 9/1/2022
powered by Legistar™121
Meeting Date: 9/6/2022 Agenda Item: H.
services contractor is in the interest of the public in certain situations. AdminSure, Inc. is a PRISM preferred provider for workers’ compensation claims administration with a proven service record and continuity of service with them is desirable. They offer a fee structure 9% below the baseline cost for PRISM preferred providers and have proposed to limit the annual fee increase to three dollars per open claim, per year starting in year 2. Due to these reasons, staff is requesting the Council authorize an exemption to the selection process for the proposed contract based on Exemption 7.1.2 of the policy; the proposed professional services provider has unique familiarity with the project, subject area, or possesses other attributes that make the professional services provider uniquely qualified to provide the services.

Recommended Actions:

Staff recommends that the City Council approve, and authorize the City Manager to execute, Contract C22-53, by and between the City of San Clemente and AdminSure, Inc., providing for Workers’ Compensation Claims Administration Services, for a period of five years not to exceed a total amount of $190,000.

Attachment:

Professional Services Agreement
Notification:

Alithia Vargas-Flores, President, AdminSure, Inc.

CITY OF SAN CLEMENTE Page 3 of 3 Printed on 9/1/2022
powered by Legistar™122

CITY OF SAN CLEMENTE

PROFESSIONAL SERVICES AGREEMENT

1. PARTIES AND DATE.

This Agreement is made and entered into this 27th day of September, 2022, by and between the City of San Clemente, a municipal corporation, organized under the laws of the State of California, with its principal place of business at 910 Calle Negocio, San Clemente, California, 92673 ("City") and AdminSure, Inc., an incorporation with its principal place of business at 3380 Shelby Street, Ontario, CA 91764 ("Contractor"). City and Contractor are sometimes individually referred to herein as "Party" and collectively as "Parties."

2. RECITALS.

2.1 Contractor.

Contractor desires to perform and assume responsibility for the provision of certain professional workers’ compensation administration services required by the City on the terms and conditions set forth in this Agreement. Contractor represents that it is experienced in providing professional workers’ compensation administration services to public clients, is licensed in the State of California, if applicable, and is familiar with the plans of City.

2.2 Project.

City desires to engage Contractor to render such professional workers’ compensation administration services for the City as set forth in this Agreement.

3. TERMS.

3.1 Scope of Services and Term.

3.1.1 General Scope of Services. Contractor 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 workers’ compensation administration services necessary ("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 September 27, 2022 to October 31, 2027 unless earlier terminated as provided herein. Notwithstanding the forgoing, the City Manager or his/her designee shall have the authority on behalf of the city to administratively approve extensions to the term hereof not to exceed a cumulative total of one hundred eighty (180) days. Contractor shall complete the Services within the term of this Agreement, and shall meet any other established schedules and deadlines.

3.2 Responsibilities of Contractor.

3.2.1 Independent Contractor; Control and Payment of Subordinates. The Services shall be performed by Contractor or under its supervision. Contractor will determine the means, methods and details of performing the Services subject to the requirements of this Agreement. City retains Contractor on an independent contractor basis and not as an employee. Contractor retains 123
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 Contractor shall also not be employees of City and shall at all times be under Contractor's exclusive direction and control.

Neither City, nor any of its officials, officers, directors, employees or agents shall have control over the conduct of Contractor or any of Contractor's officers, employees, or agents, except as set forth in this Agreement. Contractor 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.

Contractor 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. Contractor 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. Contractor represents that it has the professional and technical personnel required to perform the Services in conformance with such conditions. In order to facilitate Contractor's conformance with the Schedule, City shall respond to Contractor's submittals in a timely manner. Upon request of City, Contractor 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 Contractor shall be subject to the approval of City.

3.2.4 Substitution of Key Personnel. Contractor 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, Contractor may substitute other personnel of at least equal competence upon written approval of City. In the event that City and Contractor 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 Contractor at the request of the City. The key personnel for performance of this Agreement are as follows: Sherry Lancaster, Workers’ Compensation Claims Manager.

3.2.5 City's Representative. The City hereby designates Johanne Thordahl, Human Resources Manager, or 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 Contractor but not the authority to enlarge the Scope of Work or change the total compensation due to Contractor 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 Contractor's total compensation subject to the provisions contained in Section 3.3 of this Agreement. Contractor shall not accept direction or orders from any person other than the City Manager, City's Representative, or her designee.

3.2.6 Contractor's Representative. Contractor hereby designates Alithia VargasFlores, President or his/her designee, to act as its representative for the performance of this Agreement ("Contractor's Representative"). Contractor's Representative shall have full authority to represent and act on behalf of the Contractor for all purposes under this Agreement. The Contractor'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. 124

3.2.7 Coordination of Services. Contractor agrees to work closely with City staff in the performance of Services and shall be available to City's staff, contractors and other staff at all reasonable times.

3.2.8 Standard of Care; Performance of Employees. Contractor 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. Contractor represents and maintains that it is skilled in the professional calling necessary to perform the Services. Contractor warrants that all employees and subcontractors shall have sufficient skill and experience to perform the Services assigned to them. Finally, Contractor represents that it, its employees and subcontractors 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, Contractor 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 Contractor's failure to comply with the standard of care provided for herein. Any employee of the Contractor or its sub-contractors 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 Contractor and shall not be re-employed to perform any of the Services or to work on the Project.

3.2.9 Laws and Regulations. Contractor 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. Contractor shall be liable for all violations of such laws and regulations in connection with Services. If Contractor performs any work knowing it to be contrary to such laws, rules and regulations, Contractor shall be solely responsible for all costs arising therefrom. Contractor 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. Contractor shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out its Services, the Contractor 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 subcontractors, 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. Contractor agrees to procure and maintain, at Contractor’s expense all insurance specified in Exhibit “C” attached hereto and by this reference incorporated herein.

Contractor shall require all subcontractors to carry the same policies and limits of insurance that the Contractor is required to maintain, unless otherwise approved in writing by the City. 125

3.3 Fees and Payments.

3.3.1 Compensation. Contractor shall receive compensation, including authorized reimbursements, for all Services rendered under this Agreement at the rates set forth in Exhibit "D" attached hereto and incorporated herein by reference. The total compensation shall not exceed the per open claim fee per year and a five (5) year total cost of $190,000 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.

3.3.2 Payment of Compensation. Contractor shall submit to City a monthly invoice which indicates work completed and hours of Services rendered by Contractor. 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 Contractor's fees, the City shall give written notice to Contractor within thirty (30) days of receipt of an invoice of any disputed fees set forth therein.

3.3.3 Reimbursement for Expenses. Contractor shall not be reimbursed for any expenses unless authorized in writing by City, or included in Exhibit "D" of this Agreement.

3.3.4 Extra Work. At any time during the term of this Agreement, City may request that Contractor 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. Contractor shall not perform, nor be compensated for, Extra Work without written authorization from the City.

3.4 Accounting Records.

3.4.1 Maintenance and Inspection. Contractor shall maintain complete and accurate records with respect to all costs and expenses incurred under this Agreement. All such records shall be clearly identifiable. Contractor 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. Contractor shall allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period of four (4) years from the date of final payment under this Agreement.

3.5 General Provisions.

3.5.1 Termination of Agreement.

3.5.1.1 Grounds for Termination. City may, by written notice to Contractor, terminate the whole or any part of this Agreement at any time, with or without cause, by giving written notice to Contractor of such termination, and specifying the effective date thereof, at least seven (7) days before the effective date of such termination. Upon termination, Contractor shall be compensated only for those services which have been adequately rendered to City, and Contractor shall be entitled to no further compensation. Contractor may not terminate this Agreement except for cause.

3.5.1.2 Effect of Termination. If this Agreement is terminated as provided herein, City may require Contractor to provide all finished or unfinished Documents and Data and other information of any kind prepared by Contractor in connection with the performance of Services under this Agreement. Contractor shall be required to provide such document and other information 126
within fifteen (15) days of the request.

3.5.1.3 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.

3.5.2 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:

Contractor: AdminSure, Inc.
3380 Shelby Street
Ontario, CA 91764
ATTN: Alithia Vargas-Flores, President
City: City of San Clemente
910 Calle Negocio
San Clemente, CA 92673
ATTN: Johanne Thordahl, Human Resources Manager
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.

3.5.3 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.

3.5.4 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.

3.5.5 Indemnification.

3.5.5.1 To the fullest extent permitted by law, Contractor shall defend (with counsel of City’s choosing), indemnify and hold the City, its directors, 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 Contractor, its officials, officers, employees, subcontractors, contractors or agents in connection with the performance of the Contractor's Services, the Project or this Agreement, including without limitation the payment of all damages, expert witness fees and attorney’s fees and other related costs and expenses. Contractor’s obligation to indemnify shall not be restricted to insurance proceeds, if any, received by Contractor, the City, its officials, officers, employees, agents, or volunteers.

3.5.5.2 If Contractor’s obligation to defend, indemnify, and/or hold harmless arises out of Contractor’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, Contractor’s indemnification obligation shall be limited to claims that arise 127
out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Contractor, and, upon Contractor obtaining a final adjudication by a court of competent jurisdiction, Contractor’s liability for such claim, including the cost to defend, shall not exceed the Contractor’s proportionate percentage of fault.

3.5.6 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.

3.5.7 Governing Law. This Agreement shall be governed by the laws of the State of California. Venue shall be in Orange County.

3.5.8 Time of Essence. Time is of the essence for each and every provision of this Agreement.

3.5.9 Successors and Assigns. This Agreement shall be binding on the successors and assigns of the parties.

3.5.10 Assignment or Transfer. Contractor 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.

3.5.11 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 Contractor include all personnel, employees, agents, and subcontractors of Contractor, 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.

3.5.12 Amendment; Modification. No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing and signed by both Parties.

3.5.13 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.

3.5.14 No Third-Party Beneficiaries. There are no intended third party beneficiaries of any right or obligation assumed by the Parties.

3.5.15 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.

3.5.16 Prohibited Interests. Contractor maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for 128
Contractor, to solicit or secure this Agreement. Further, Contractor 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 Contractor, 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.

3.5.17 Equal Opportunity Employment. Contractor represents that it is an equal opportunity employer and it shall not discriminate against any subcontractor, 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.

Contractor 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.

3.5.18 Labor Certification. By its signature hereunder, Contractor 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.

3.5.19 Authority to Enter Agreement. Contractor 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.

3.5.20 Counterparts. This Agreement may be signed in counterparts, each of which shall constitute an original.

3.6 Subcontracting.

3.6.1 Prior Approval Required. Contractor 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.
129
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed on the respective dates set forth opposite of their signatures.

CITY OF SAN CLEMENTE
By:________________________________
ATTEST: Its:_______________________________
______________________________ Dated: ____________________, 20____ CITY CLERK of the City of
San Clemente, California
APPROVED AS TO FORM:

BEST BEST & KRIEGER
____________________________
City Attorney

APPROVED AS TO AVAILABILITY
OF FUNDING:
________________________________
Finance Authorization

__________________________
(“CONTRACTOR”)
By:_____________________________
Its:_____________________________
Dated: __________________, 20____
130
EXHIBIT "A"

SCOPE OF SERVICES
Service requirements
Contractor shall perform all services required to supervise and administer a self-insured workers' compensation program for the City of San Clemente, and to act as the City of San Clemente's representative in matters relating to the City of San Clemente's obligations under the workers' compensation laws of the State of California. Contractor shall perform but is not limited to the following Services on behalf of the City of San Clemente.

A. Program Administration

1. Program Administration Expectations
• Administer all claims except "first aid only" claims, promptly upon receipt of notice of injury. First Aid claims are to be administered by the City of San Clemente.
• Administer all claims as described under Claims Administration section. • Identify the need for investigation, coordinate investigations, and ensure that they are conducted discreetly and sensitively while keeping the City of San Clemente informed and involved.
• Set appropriate reserves and review overall adequacy at least annually. • Keep the City of San Clemente informed and involved in all accepted claims via phone contact and copies of all correspondence relating to claims. • Negotiate settlements and make settlement payments that are authorized by the City of San Clemente. Keep the City of San Clemente informed and involved in all settlement decisions prior to sending pertinent documentation to employees. • Pay benefits to claimants in accordance with State Law. • Establish and maintain individual Workers' Compensation claim files. • Closely monitor temporary disability and permanent disability cases. • Coordinate and control vocational rehabilitation activities. • Actively participate with attorneys when cases are litigated. • Actively participate in strategy sessions on same employee workers' compensation and employer liability issues.
• Arrange periodic file reviews with the City of San Clemente. • Conduct supervisory file review to ensure timely file closure, settlement, and adequate reserving.
• Work openly and closely with the City of San Clemente to assist in returning injured workers to modified or regular duty as outlined in the Return-to-Work Program section.
• Ensure that all documentation sent out is accurate and professional. • Return employer and employee telephone calls as soon as possible but in all cases within 24 hours.
• Coordinate with the City of San Clemente for the designation of which physicians/facilities are to be used.
• Maintain a list of all provider referrals by specialty. The City of San Clemente 131
reserves the right to approve all providers.
• Ensure defense counsel sends copies of all correspondence to the City of San Clemente at the time of mailing the original, when requested. • Review and explain claim-reporting requirements to the City of San Clemente representatives as requested.
• Report claims to excess insurers in accordance with policy terms and collect excess payments.
• Respond in a timely manner to all requests by identified representatives of the City of San Clemente for information, reports, calculations, history, or backup data. • Examiner caseloads to be maintained at no more than 150 active claim files per examiner in order to meet the claims services expectations as established by the City of San Clemente. All open caseloads will be periodically re-evaluated, and additions to the claims handling unit/team made as necessary. The examiner assigned to the account must have a minimum of five years full-time experience as a workers' compensation claims examiner in California, and have a California Self-Insured Workers' Compensation Certificate.

2. Ownership Of Records - All records, products and all claim files shall be the property of the City of San Clemente. Administrator shall be responsible for providing program tapes, data tapes, and system documentation to the City of San Clemente upon request for data from the Administrator's data system at Administrator's expense.

Administrator shall make claim files available to the City of San Clemente upon request.

3. Forms - Provide all printed Workers' Compensation forms which the City of San Clemente may require and printed checks for the Workers' Compensation checking account.

4. Payment Of Benefits - The City of San Clemente maintains a Workers' Compensation claims trust checking account. The Administrator shall be responsible for payments of benefits from this account.

5. Assessments - Administrator shall be responsible for all penalties assessed whether by the Administrative Director, Office of Self-Insurance Plans, or the Office of Benefits and Enforcement, unless said penalties are for late indemnity payments which were caused by the City of San Clemente's late report of claim. If any penalty shall accrue as a result of the City of San Clemente's personnel practices, then the City of San Clemente shall be responsible and shall be billed by the Administrator. 132
1 6. Experience Modification - Recommend appropriate methodology for the calculation of the X-mod factor for the City of San Clemente. Provide backup information and explanation of calculations, development, and other rating information to the City of San Clemente.

B. Claims Administration

1. The Administrator will assign a dedicated or designated claims examiner to handle the City of San Clemente claim files. Other, non-dedicated personnel (e.g. file clerks, data entry clerks, etc.) may be used for administrative functions.

2. Review all initial claims and make telephone contact with injured employee(s) within 48 hours.

3. Send a letter to injured workers within three days or within the laws governing the state obligations of knowledge of injury informing them of their rights and benefits. .

4. Keep the City of San Clemente informed and involved in all accepted claims prior to sending acceptance letters to employees. Send acceptance letters to employees within three working days when a claim has been accepted and any temporary disability has been determined.

5. Furnish copies of all correspondence to the City of San Clemente that is sent to employees on the same day that the original is sent to the employee.

6. Provide to the City of San Clemente, permanent disability information within 3 days of knowledge, prior to sending that permanent disability information to the employee.

7. Notify the City of San Clemente within 3 days when any previously closed claim is reopened and provide the rationale for reopening.

8. Take an active part in handling initial medical control to facilitate appropriate medical care and reduce self-procured medical treatment. Coordinate and contact by phone initial treatment facilities when indicated; and/or take control over claims where the injured employee has not initially gone to a designated facility.

9. Closely monitor temporary disability and permanent disability cases.

11.Closely and openly work with the City of San Clemente as outlined in the Return-to-Work Program section.

12.Review and process all claims for workers' compensation benefits in accordance with the requirements of the Industrial Relations Department for reporting and notification.

13. Determine the Compensability of claimed injuries and illnesses in accordance with the State of California workers' compensation laws.

14. Determine eligibility for, and recommend payment of, medical benefits and authorize examinations to determine the nature and extent of disability when appropriate.

15. Set appropriate reserves and review for adequacy at least every 30 days. .

16. Obtain and evaluate medical expert opinion as to the nature, extent, and duration of temporary disability and the amount of any residual permanent disability to be anticipated.

17. Review, compute, recommend, and authorize payment of temporary disability and permanent disability benefits due an injured employee whether paid 133
2 voluntarily or under Decisions, Orders, or Findings and Awards of Workers' Compensation Appeals Board (WCAB). Relative to permanent disability, this includes informal advisory ratings and consultative evaluations.

18. Refer litigated cases to attorneys utilizing legal firms acceptable to the City of San Clemente. Assist the attorneys in the preparation of litigated cases, negotiations of compromise and release settlements, and subrogation actions.

19. Participate in strategy sessions with the City of San Clemente, defense counsel, and employers for same employee workers’ compensation and employer liability issues.

20. Investigate or arrange for investigation of, as necessary and appropriate, questionable cases and the status of disabled employees in order to adjust all cases and to assist in the trial or settlement of litigated cases.

21. Maintain records on, and effect collections from, excess reinsurer on behalf of the City of San Clemente.

22. Maintain all payroll and loss records as is done by the California Inspection Rating Bureau.

23. Adjust liens and attend hearings as requested by the City of San Clemente.

24. Conduct supervisory file reviews to ensure timely file closure, reserving, and oversight of settlement strategies.

25. Report to the Excess Insurance Carriers in accordance with the Excess Carriers policy-reporting requirements, including any and all subsequent reporting with copies to the City of San Clemente. Provide appropriate documentation and demands for reimbursement by the excess carriers on all applicable cases in accordance with the excess carrier policy.

26. Utilize the following procedures in the settlement of claims:
a. The claims administrator shall be granted settlement authority up to ten thousand dollars ($10,000) after agreement with written approval from the Human Resources Manager of the City of San Clemente.
b. Any lump-sum voluntary settlement of $10,000 requires a written, caption report with copies of necessary medical reports and/or legal evaluations mailed to, and telephone consultation with, the City of San Clemente prior to making the offer. c. The claims administrator shall be required to obtain approval from the City of San Clemente for claims over ten thousand dollars ($10,000).

C. Return-to-Work Program

1. Support the City of San Clemente RTW Program.

2. Submit to the City of San Clemente a completed data spreadsheet to report Temporary Disability and Work Restriction information.

3. Actively communicate (Phone/Fax/Email) with the City of San Clemente to review new claims (as needed), and discuss possibility of modified assignments for employees continuing on temporary disability.

4. Forward to the City of San Clemente copies of all necessary medical reports and other information that relate to the coordination of returning injured employees to work in regular or modified work assignments.

5. Claims examiner to participate in meetings with the City of San Clemente regularly (Minimum of 2 times per year) to review temporary disability files 134
3 and Return-to-Work issues.

D. Medical Administration and Control

1. Submit to the City of San Clemente a copy of the contracted Medical Provider Network for review by the City of San Clemente. The City of San Clemente may choose not to participate in the offered Medical Provider Network and may choose to create their own or none at all. The administrator agrees to utilize the City of San Clemente's designated medical care providers for the treatment of injured employees in accordance with statutory guidelines and shall recommend a panel of specialists as may be required for long term or other disabilities requiring special treatment.

2. Monitor treatment programs for injured employees, including review of all "Doctor's First Report of Work Injury," to assure that treatment is related to a compensable injury or illness

3. Maintain close liaison with treating physicians to assure that employees receive proper care and to identify and prevent over treatment.

4. Authorize hospitalization, surgery, and other types of approved treatment as required after determination of liability in conformance with Labor Code Sections 4600 and 4601.

5. Submit to the City of San Clemente a copy of the administrators state submitted Utilization Review process for review by the City of San Clemente and make changes accordingly to adhere to established rules and regulations as well as policies and procedures of the City of San Clemente.

Request for treatment overrides by the City of San Clemente shall be considered by the administrator.

6. Review, audit, compute, and authorize payment of all medical bills in conformance with the Recommended Minimum Fee Schedule as set forth by the Division of Industrial Accidents. Penalties assessed in conjunction with late payments of bills due to the fault of the administrator shall not be the responsibility of the City of San Clemente. Any and all bill reductions as recommended by the bill reviewers shall be defended by the administrator and or third party vendor used to reduce the bills.

7. Complete administration and processing of all lifetime medical cases awarded or ordered by the Workers' Compensation Appeals Board.

E. Legal Services

1. Retain a panel of attorneys, approved by the City of San Clemente, who are specialists in the defense of workers' compensation litigation for defense of cases before the Appeals Board. Monitor and manage all litigated cases from the time an application is filed with the Appeals Board until final disposition is rendered.

2. Ensure timely filing and serving of Answers to Applications and of medical records.

3. Review and consult with the City of San Clemente on proposed settlements and secure approval before a Compromise and Release or Stipulated 135
4 Settlement is filed with the Appeals Board for approval. All settlement authority must be authorized by designated City of San Clemente personnel.

4. Identify opportunities for subrogation and, at the City of San Clemente's direction, pursue them. Protect the interests of the City of San Clemente in third party cases, including filing of complaints in Subrogation, where appropriate.

5. The City of San Clemente shall be provided with copies of all correspondence and legal documents including hearing notices, applications, lawsuits, pleadings, motions, interrogations, dismissals, and correspondence between defense counsel and Administrator upon request.

F. Reporting Services and Record Retention

1. Provide the City of San Clemente with regular monthly and quarterly reports in the format and number requested by the City of San Clemente. Such reports include, but may not be limited to, the following:
• Loss Experience Reports
• Management Summary Reports
• Weekly Claims Register
• Monthly Claims Summary Reports
• Monthly Claims Register Reports
• Annual Report to the State
• Annual Tax Statements, including Federal Form 1099 an State form 599 as appropriate ·
• Large Loss Reports-Over $25,000 and $100,900
•Required Excess Insurance carrier reporting in accordance with Excess Carrier's written policy and contract.
·
· 2. Monthly computer-produced claims information data will be required to be provided.
• A detailed listing of open claims
• Summaries of all open and closed claims
• A monthly reconciliation of the Workers' Compensation checking account. • Specialized loss reports as requested by the City of San Clemente.

G. Workers' Compensation Trust Fund Checking Account
The City of San Clemente shall establish a trust fund checking account to cover payments and reimbursements applicable to the self-insured workers' compensation program. The trust fund checking account shall be established in the name of the contractor as agent of the City of San Clemente. Deposits shall be made to the account as required to ensure that funds are available for payment of claims for settlement and allocated loss expenses upon presentation of check or warrant. The administrator shall provide the bank checks stock. Checks shall be protected with state-of-the-art security features. Contractor shall not draw on the trust fund checking account for any purpose other than adjustment of 136
5 claims and payment of allocated loss expenses. Once each week, Contractor shall provide the City of San Clemente with a detailed accounting of all workers' compensation benefits and allocated loss expenses paid from the fund. The detailed accounting shall include the date and check number of all benefit and allocated loss payments and shall also include appropriate supporting documentation for allocated loss expense payments. A monthly check register summary shall be provided. Contractor is responsible for erroneous payments made from the account by their error. The amount of any such erroneous payments made from the account shall be deducted from administrative fee payments.

Contractor shall develop, implement, and maintain security procedures to ensure safeguard of funds in the account and the bank checks. Such procedures shall be approved by the City of San Clemente.
137
1 EXHIBIT "B"

SCHEDULE OF SERVICES
Services under this agreement shall be for a term of 5 years as follows:

Year 1: September 27, 2022 – September 30, 2023
Year 2: October 1, 2023 – September 30, 2024
Year 3: October 1, 2024 – September 30, 2025
Year 4: October 1, 2025 – September 30, 2026
Year 5: October 1, 2026 – September 30, 2027
See rate table for schedule of service fee structure.

Description Type Fees and Options AdminSure
Per Claim Basis Indemnity/MedicalOnlyYear 1 - $110 per month, per open
claim
Indemnity/MedicalOnlyYear 2 - $113 per
month, per open
claim
Indemnity/MedicalOnlyYear 3 - $116 per
month, per open
claim
Indemnity/MedicalOnlyYear 4 - $119 per
month, per open
claim
Indemnity/MedicalOnlyYear 5 - $122 per
month, per open
claim
Fees Years 1-5
Additional Charges Bill Review 1. PPO Discounts $12.50 flat fee per bill reviewed

2. Fee Schedule Plus not to exceed
25% of PPO savings,
if any, no other fees
Utilization Review 1. State Mandated 5% of all medical bill review charges,
capped @ $750

2. Peer Review Physician fee billed
separately @ $200
per hour. City
approves reviews > 1
hour
Vendor Fees 3. Field Case
Manager
All at cost

4. Telephonic Case
Manager
All at cost
138
2 5. Manager All at cost

1. Legal Fees All at cost

2. Expert Fees All at cost

3. Investigation Fees All at cost

4. Other Fees All at cost

1. Annual Other Included in per claim
fee rate
System Fees 1. System Access No fees

2. Data Transfer No fees

3. Conversion Fees No fees
Medical Provider
Network (MPN)
Provider Name –
Annual Costs
MPN services at
cost. Blue Cross 25%
savings OR Interplan
20% of savings
Excluded Costs List all Excluded
Costs
All vendor costs will
be at-cost and no
additional fees will be
added.

Termination Terms of
Cancellation
Pro-rated monthly
service fee.

Cancellation Fees Pro-rated monthly
service fee.

File Transfer No cost.

End of Contract
Claims Handling
Fees

1. Medical Only

2. Indemnity
Pro-rated monthly
service fee.
139
EXHIBIT “C”

INSURANCE REQUIREMENTS

3.2.12 Insurance.

3.2.12.1 Time for Compliance. Contractor 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, Contractor shall not allow any subcontractor to commence work on any subcontract until it has provided evidence satisfactory to the City that the subcontractor has secured all insurance required under this section.

3.2.12.2 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 Contractor, 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, Contractor 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 Contractor’s profession with limits of not less than $1,000,000 per claim. 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.

3.2.12.3 Insurance Endorsements. Required insurance policies shall contain the following provisions, or Contractor shall provide endorsements on forms approved by the City to add the following provisions to the insurance policies:
140
(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 Contractor; or (4) contain any other exclusions contrary to the terms or purposes of this Agreement. For all policies of Commercial General Liability insurance, Contractor shall provide endorsements in the form of ISO CG 20 10 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.

3.2.12.4 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.

3.2.12.5 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.

3.2.12.6 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.

3.2.12.7 Waiver of Subrogation. All policies of Commercial General Liability and Automobile Liability insurance shall specifically allow Contractor or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Contractor 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 subcontractors.
141

3.2.12.8 Deductibles and Self-Insured Retentions. Any deductible or selfinsured retention greater than $5,000 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.

3.2.12.9 Evidence of Insurance. The Contractor, 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, Contractor 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.

3.2.12.10 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 Contractor or City will withhold amounts sufficient to pay premium from Contractor payments. In the alternative, City may cancel this Agreement effective upon notice.

3.2.12.11 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.

3.2.12.12 Enforcement of Agreement Provisions (non estoppel).

Contractor acknowledges and agrees that actual or alleged failure on the part of the City to inform Contractor of non-compliance with any requirement imposes no additional obligation on the City nor does it waive any rights hereunder.

3.2.12.13 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.

3.2.12.14 Insurance for Subcontractors. Contractor shall include all subcontractors engaged in any work for Contractor relating to this Agreement as additional insureds under the Contractor's policies, or the Contractor shall be responsible for causing subcontractors 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 subcontractor's policies. All policies of Commercial General Liability insurance provided by Contractor’s subcontractors performing work relating to this Agreement shall be endorsed to name the City, its officials, officers, employees, agents and 142
volunteers as additional insureds using endorsement form ISO CG 20 38 04 13 or an endorsement providing equivalent coverage. Contractor shall not allow any subcontractor to commence work on any subcontract relating to this Agreement until it has received satisfactory evidence of subcontractor’s compliance with all insurance requirements under this Agreement, to the extent applicable. The Contractor shall provide satisfactory evidence of compliance with this section upon request of the City.
143

AGENDA REPORT

CITY OF SAN CLEMENTE
City Council Meeting
Community Center
100 N. Calle Seville
San Clemente, California
www.san-clemente.org
Meeting Date: 9/6/2022 Agenda Item: I.

Department: Community Development
Prepared By: Adam Atamian, Deputy Community Development Director Subject:

RECOMMENDATION OF THE PUBLIC SAFETY COMMITTEE TO CONSIDER SITE AT 380 AVENIDA PICO (THE CITY’S WATER RECLAMATION PLANT PROPERTY) AS A POTENTIAL

LOCATION FOR AN EMERGENCY FOOD STORAGE UNIT
Fiscal Impact:

None.

Summary:

On June 28, 2022, the Public Safety Committee (PSC) approved forwarding a recommendation to the City Council to consider providing space at the City’s Water Reclamation Plant located at 380 Avenida Pico for a food storage unit.

Background:

As part of the PSC’s 2021-2022 Annual Work Plan, the PSC received a special presentation by Abound Food Care (AFC) related to disaster preparedness and planning, specifically methods to make food available for distribution during an emergency. The food-storage units are typically manufactured from shipping containers, measuring 20 ft. by 8 ft. by 8.5 ft.

Discussion:

AFC has worked with other local government agencies and organizations in Orange County to place emergency, food-storage units around the County. The meals inside would be available for distribution to the community in case of a natural disaster or other serious emergency. If no emergency occurs, the meals are distributed to local nonprofits at regular intervals, then new meals are prepared for storage in the unit.

AFC staff indicated to the PSC that they are looking for a location in San Clemente for placement of a food-storage unit. Attachment 1 provides a location map of the proposed area. AFC has grant funding to cover expenses related to the preparation of the food and provision of the food-storage unit, no costs of this program are required to be paid by the City. This consideration relates only to the approval of a location on City property for the potential placement of a food-storage unit at a date in the future which is currently unknown.

Should Council accept the PSC’s recommendation to allow the use of the City’s Water Reclamation Plant property for the purpose of an emergency, food-storage unit, future applicants, such as AFC, would be required to submit a request to the City for the use of said property. This request may require a lease agreement with the City to ensure the long-term maintenance of the unit and the City’s property. In addition, due to its location in the Coastal Zone, prior to the placement of a foodstorage unit within the proposed area, applicants would be required to apply for, and receive, CITY OF SAN CLEMENTE Page 1 of 3 Printed on 9/1/2022
powered by Legistar™144
Meeting Date: 9/6/2022 Agenda Item: I.
storage unit within the proposed area, applicants would be required to apply for, and receive, approval of the project from the California Coastal Commission.

Plan and Policy Consistency:

The Centennial General Plan’s Safety Element includes the Goal to, “[continue] to be a safe, disaster -resilient community that is prepared through effective community outreach, proactive monitoring, and efficient emergency services, response, recovery and mitigation.” This goal is achieved through implementation of Policy S-7.04, Interdepartmental and Interagency Collaboration, which states, “We collaborate among City departments and with organizations outside of the City for a comprehensive approach to emergency services and disaster preparedness, response and recovery, including continuity of operations (e.g. information technology and financial services).” Environmental Review (CEQA):

The Community Development Department completed an environmental assessment for the proposed project in accordance with the California Environmental Quality Act (CEQA). Staff recommends the City Council hereby finds and determines that the proposed project is categorically exempt from CEQA pursuant to State CEQA Guidelines Section 15303 (Class 3: New Construction or Conversion of Small Structures), 15304 (Class 4: Minor Alterations to Land), and Section 15311 (Class 11:

Accessory Structures).

The Class 3 exemption specifically exempts from further CEQA review, the construction and location of limited numbers of new, small facilities or structures, such as accessory and appurtenant structures. The Class 4 exemption specifically exempts minor alterations in the condition of land, water, and/or vegetation that do not involve the removal of healthy, mature, scenic trees. The Class 11 exemption specifically exempts the construction or replacement of minor structures accessory or appurtenant to existing commercial, industrial, or institutional facilities, such as mobile food units.

Here, the project involves the placement of a non-permanent, food-storage unit, potentially involving minimal grading to create a level pad, accessory to the existing use of the proposed property location.

Furthermore, none of the exceptions to the use of the Class 3, 4 and 11 categorical exemptions identified in State CEQA Guidelines section 15300.2 apply. The project will not result in a cumulative impact from successive projects of the same type in the same place, over time. There are no unusual circumstances surrounding the project that result in a reasonable possibility of a significant effect on the environment. There are no sensitive resources, such as endangered species, on the project site or in the vicinity. The project will not damage scenic resources, including trees, historic buildings, rock outcroppings, or similar resources.

Recommended Actions:

Public Safety Committee Recommendation
Approve the recommendation to allow a portion of the City’s Water Reclamation Plant property to be used for the placement of an emergency food-storage unit.

Attachment:

Location Map
CITY OF SAN CLEMENTE Page 2 of 3 Printed on 9/1/2022
powered by Legistar™145
Meeting Date: 9/6/2022 Agenda Item: I.

Notification:

None.

CITY OF SAN CLEMENTE Page 3 of 3 Printed on 9/1/2022
powered by Legistar™146
Location Map ATTACHMENT 1
Area for Emergency Food-Storage Unit
147

AGENDA REPORT

CITY OF SAN CLEMENTE
City Council Meeting
Community Center
100 N. Calle Seville
San Clemente, California
www.san-clemente.org
Meeting Date: 9/6/2022 Agenda Item: J.

Department: Information Technology
Prepared By: Brian Brower, IT Manager
Subject:

INFORMATION TECHNOLOGY POLICY AND PROCEDURE UPDATE
Fiscal Impact:

None.

Summary:

STAFF RECOMMENDS THAT the City Council approve and adopt City Policy 601-8-19 Use of Information Technology.

Background:

The City of San Clemente maintains a Policies and Procedures manual, which includes the major systems and procedures relating to the interaction of its organizational departments. The Policies and Procedures manual is intended to represent a unified and consistent approach to sound municipal government and is designed to provide public documentation describing overall policy, rules of procedure, and methods of operation.

Discussion:

A number of City Policies and Procedures pertain to the Information Technology Division. A core component of Information Technology best practices is the establishment, dissemination and enforcement of policies and procedures. Effective policies and procedures guide the use of technology to ensure a secure, reliable, and supportable environment. These policies provide a framework for the usage of technology, technical and security controls, and best practices in order to ensure the confidentiality, integrity and availability of the data at City of San Clemente.

Staff has identified a need to update existing Information Technology policies to align with best practices and has undergone a process of reviewing and updating existing policies, as well as developing new policies. Some existing policies have been revised, while others have been completely replaced. In addition, several new policies have been added which are not new ideas altogether, but rather memorialize best practices that are already being adhered to. The proposed policy updates have undergone a review and approval process involving the City’s IT Steering Committee and the City Attorney’s office.

Policy 601-8-19 represents a compilation of policy updates which define and regulate the acceptable use of the City's technology-related systems, including computers, tablets, mobile devices, telephones, software, electronic files, data, email, network and Internet systems, and establishes guidelines for use of these systems provided by the City to employees for the purpose of performing job functions. This policy will supersede Policy 601-8-17 (September 2, 2008), 1001-1-1 (July 1, CITY OF SAN CLEMENTE Page 1 of 2 Printed on 9/7/2022
powered by Legistar™148
Meeting Date: 9/6/2022 Agenda Item: J.
1992), 1001-1-3 (July 1, 1991), and 1001-1-5 (July 1, 1991).

Upon City Council approval, staff will be required to review and acknowledge these policies. In the future, these policies shall be reviewed by the Information Technology Manager on an annual basis and may be updated as needed with City Manager approval.

Plan and Policy Consistency:

This policy is consistent with the Information Technology Strategic Plan.

Recommended Actions:

Staff Recommendation
STAFF RECOMMENDS THAT the City Council approve and adopt City Policy 601-8-19 Use of Information Technology and authorize the City Manager to update as needed.

Attachment:

1. Policy 601-8-19 Use of Information Technology
Notification:

None.

CITY OF SAN CLEMENTE Page 2 of 2 Printed on 9/7/2022
powered by Legistar™149

POLICY AND PROCEDURE
Subject: Use of Information
Technology
Index: Human Resources
Number: 601-8-19
Effective Date: September 6, 2022 Prepared By: Information Technology Supersedes: 1001-1-1, 1001-1-3,
1001-1-5, 601-8-17
Approved By:

1. PURPOSE:

The purpose of this policy is to define and regulate the acceptable use of the City's technologyrelated systems, including computers, tablets, mobile devices, telephones, software, electronic files, data, email, network and Internet systems, and to establish guidelines for use of these systems provided by the City to its employees for the purpose of performing job functions.

The objectives of this Policy are:
• To maximize and ensure the efficient and effective use of the City’s information technology resources;
• To maintain the integrity and security of computer based information and systems; • To meet applicable federal and state laws and regulations regarding public access to information; and
• To protect the City from liability.

2. ORGANIZATIONS AFFECTED:

This policy applies to all City employees and officials, persons working as an agent of the City, contractors, vendors, volunteers, interns, and other authorized persons who use any Information Technology (IT) equipment or other communication device owned and provided by the city, who have been provided with City email accounts, or who are granted access to the City’s network or computing resources.

3. REFERENCES:

City of San Clemente Employee Personnel Rules
California Public Records Act

4. DEFINITIONS:

4.1. “City” shall mean the City of San Clemente
150

4.2. “User” shall mean a city employee or official who is authorized to utilize the System

4.3. “System” shall mean and include the City's electronic data processing and communication systems. These include computers, printers, networks, online and offline storage media and related equipment, software, and data files that are owned, managed, or maintained by the City. For example, IT Systems include departmental and city wide information systems, internet access, e-mail, desktop computers, laptop computers, servers, networking equipment, printers, scanners, PDA mobile devices, phones, cell phones and other devices supported by IT.

4.4. “Public record” includes any writing containing information relating to the conduct of the public’s business prepared, owned, used, or retained by any state or local agency regardless of physical form or characteristics.

4.5. “Record Retention Schedule” shall mean a document, adopted by the City Council, which identifies the period of time for which various types of records shall be retained.

5. POLICY:

5.1. Ownership
All electronic systems, hardware, software, temporary or permanent electronic files, electronic mail and electronic documents, and any related systems or devices are the property of the City. These include, but are not limited to, computers, tablets, telephones, mobile devices, network equipment, software, documents, spreadsheets, emails, and other electronic files which reside in part or in whole on any City electronic system or equipment. Any software, including databases, custom reports, graphics, or other work product developed while using a City resource or developed for use on the City network becomes the property of the City.

The City has the authority to inspect the contents of any city owned computing device and/or file(s) in the normal course of business and may request Information Technology staff to extract information, files, documents, email messages, etc., through authorization by the City Manager, City Attorney, or designee. Reasons for review include, but are not limited to, system hardware or software problems, general system failure, a legal action taken against the City, California Public Records Act Requests, suspected unlawful activity or violation of policy, or a need to perform work or repairs on technology systems.

5.2. Computer Usage
The City supplies computer hardware, software, systems and appropriate technology training to City employees in order to enable employees to perform their job duties effectively and efficiently. Computer hardware, software, and electronic equipment are provided to employees for the sole purpose of conducting the City’s business. 151

Prohibited uses of City electronic systems and information include, but are not limited to, the following:

1. Illegal activities, including threats, harassment, slander, or defamation.

2. Transmitting messages or accessing content deemed sexually or racially offensive, obscene, discriminatory, lewd, sexually explicit, pornographic, defamatory, unprofessional, or otherwise objectionable.

3. Displaying, downloading, or distributing any hostile, offensive or sexually explicit material.

4. Personal commercial activities for profit or financial gain.

5. Soliciting, advancing or proselytizing for religious or political causes, commercial ventures, outside organizations, or other non-job-related solicitations.

6. Activity which could expose the City to liability or cause an adverse public perception.

7. Removing equipment, software or data from City premises without prior authorization.

8. Accessing, without a work-related need to know and authorization from management, any database or file containing confidential information, including but not limited to personnel records, financial records, or criminal histories, whether or not the confidential information is disseminated to any other person.

9. Executing any form of network monitoring that will intercept data not intended for the employee’s computer, unless this activity is a part of the employee’s normal job/duty.

10. Circumventing user authentication or security of any host, network, or account.

11. Using hardware or related computer equipment and software not authorized and/or owned by the City.

12. Manipulation of data files for the purpose of personal gain.

13. Any use that is inconsistent with City Policies and Procedures.

14. Storage, reproduction, or transmittal of any copyrighted files or information other than in accordance with the requirements and allowances of the copyright holder.

15. Launch of network attacks of any kind including port scans, DoS/DDoS, packet floods, replays or injections, session hijacking or interception, or other such activity with malicious intent.

16. Transmittal of malicious software such as viruses, Trojan horses, and worms.

17. Surreptitious installation of software or configuration changes to any device or application, or execution of key loggers, or other executable or active application or script.

5.3. Personal Use
Incidental personal use is acceptable unless it interferes with work duties or violates any stipulations within this Policy. Employees may occasionally use internet during breaks for personal use, provided such use does not interfere with job performance, consume significant amounts of time, distract other employees, does not potentially cause discredit to the City, does not result in personal profit or gain, and is done in a safe, professional and courteous manner. All other provisions of this policy are in effect when resources are used for personal use, including prohibited uses of City electronic systems and information contained in Section

4.2 of this Policy. The City reserves the right to filter, log, and/or monitor Internet usage by City employees.
152

5.4. Privacy
The use of the City’s computer and/or electronic systems is not guaranteed to be under any degree of privacy. System support personnel have the right to access all files, documents, and records which are appropriate to accomplish their tasks. Managers have the right to access all files, documents, and records created by their department staff.

The City reserves the right to access and review all software programs, documents, electronic mail, notes, journal entries, or any electronic data created or stored on and/or sent over the City’s computer network, including files or messages transmitted via e-mail and Internet access. Access may occur for reasons of, but not be limited to, situations indicating impropriety, violation of City policy, legal requirements, suspected criminal activities, suspected breach of electronic mail security, locating substantive information that is not more readily available by some other means, or for the performance of routine maintenance. Any material placed on the System is subject to inspection and copying at any time. Employees should not consider their Internet usage or email communications to be private.

Employees should be aware that any technology media or communication involving the City’s technology resources are considered at all times to be City property, and may be considered public record subject to disclosure under the California Public Records Act or other lawful requests. The City shall comply with all lawful requests for information and obligations under federal and state law.

5.5. New/Departing Users
Access to the City’s information and communications systems and equipment is controlled and administered by the Information Technology Division. The Information Technology section of a New Employee Onboarding Checklist must be completed and submitted to Human Resources prior to granting access for a new user of the City’s information systems.

Upon the termination of an employee, the Human Resources Division shall notify the IT Division prior to the employee’s final day of work. Employee access to IT systems shall be disabled at close-of-business on the employee’s final day on the job. In cases where the employee is terminated without notice, IT shall be notified immediately so that access to City IT systems can be blocked.

5.6. User Accounts and Passwords
Each computer user will be assigned a unique user account and will set their own password subject to the City’s password policy. The user is solely responsible for all actions taken while using his or her user account. Users should lock their computer when leaving their workstation unattended. Computers that are inactive for fifteen (15) minutes will be automatically locked.

The employee must enter their password to unlock their computer.

Passwords are considered “confidential” and should not be disclosed to other users or any outside party under any circumstances. Users shall not reveal their password to any other person or allow any other person to login to a computer using their user account. Passwords shall not be left written down in any area within the City’s facilities where they can be easily 153

accessed. If a password is written down on a piece of paper it must be shredded immediately after its use. The City's Information Technology (IT) Division does not store employee’s passwords. If an employee needs to reset their password, they may submit a request to the Information Technology (IT) Division to reset their password, which will be tracked in the City’s helpdesk system.

It is the responsibility of each employee to remember and safeguard his/her system passwords.

The City network policy will force each user to change their password every 180 days.

Passwords must meet the following criteria:
• The password cannot contain significant portions of the user’s name • Minimum of 8 characters in length
• Contain characters from three of the following four categories:
• English uppercase characters (A through Z)
• English lowercase characters (a through z)
• Numeric digits (0 through 9)
• Non-alphabetic characters (Ex. @ ! $ # %)

5.7. Hardware / Software Purchases, Licensing and Installation All computer software and hardware purchases and installation must be coordinated through the Information Technology Division in order to assure that it meets standards that are compatible and supported by the current network infrastructure.

Equipment and software must be purchased from reputable, vendor-authorized resellers who can provide maintenance, warranty coverage or technical support services, and certified licensed software.

All hardware and software installations and upgrades on City workstations must be performed by authorized personnel. Employees may not install, relocate, or upgrade workstation hardware or software without the authorization from IT Division staff.

All software used on the City network must be legally licensed by the City and approved by the Information Technology Division.

No software may be downloaded or installed without the prior authorization and installation by the Information Technology Division.

The City and its employees shall abide by the terms of license agreements. City employees shall not duplicate, modify, or manipulate software licensed by the City. Software held by the City under a license agreement may not be supplied to an outside party unless the license agreement permits such use.

Employees are not authorized to install personally owned copies of software on City workstations. Use of commercial software not licensed by the City, but licensed to a City employee, may not be used on a City owned computer.
154

5.8. Use of Computer Equipment not owned by the City
Employees, consultants, and any other individuals are strictly prohibited from connecting personal laptops or any other computing devices directly to the City network, either directly or through the remote VPN portal, unless authorized by the Information Technology Division.

The City provides guest wireless access in City Hall and other City facilities for connection to the Internet for devices not owned by the City.

Use of personal devices including USB devices such as flash drives, smartphones, music devices, etc., may not be used on a City owned PC or attached to any City owned network device without prior approval and authorization by the IT Division.

Authorized City employees may use their personal devices for limited work related tasks.

Access from personally owned devices is limited to the City’s email system, which includes remote access to email, calendar and contacts. Access to any other internal City network resources from personally owned devices is not permitted. Devices must meet standards and security requirements established by the Information Technology Division. The device should be current with a recent, supported operating system, which allows for the latest security patches to be in place. No personal device is authorized if it is “jailbroken” or programmed to bypass the manufacturer’s restrictions put on the device.

City employees understand that electronic communications regarding City business are subject to the City’s records retention policy, even if those electronic communications are or were created, sent, received or stored on a personally-owned electronic computing account or device.

The user must not store or access City information on a personally-owned device without authorization. When electronic communications that pertain to City business are received on a personally-owned email account or personally-owned device, the user must either (a) copy (“cc”) the electronic communication from the personal email account or personally-owned device to the user’s City email account or (b) forward the associated electronic communication to the user’s City email account, no later than 10 days after the original creation or transmission of the electronic communication.

Users are required to delete all City data when replacing / decommissioning a personal device, when no longer using the personal device to support City duties, or when no longer continuing to work for the City. If a user replaces or upgrades a device, they are responsible for contacting the IT Help Desk to have the decommissioned device removed from the management system on its last day of service.

The IT Division will only provide support to personal devices for the following tasks:
• Configuration/access to City email account
• Connection to the City’s wireless networks
The Information Technology department will not provide support to personal devices for the following:
• Configuration of personal email accounts
• Cellular network connectivity.
• Device hardware or software support.
155

5.9. Electronic Mail Systems
Electronic Mail and Internet systems enable employees to improve efficiency in the performance of job duties and to assist and facilitate business communications and workrelated research. These systems are to be used in accordance with generally accepted business practices and current law (i.e. California Public Records Act). These services are for legitimate business use only in the course of employees' assigned duties.

5.9.1. City employees and persons working as an agent of the City, including contractors and elected/appointed officials, may be provided with City email accounts for the conduct of City business.

5.9.2. All messages transmitted over the City email system should be limited to those that involve City business activities or contain information essential to its employees for the accomplishment of business-related tasks.

5.9.3. Employees must use extreme caution when opening email attachments received from unknown senders. Email attachments from unknown senders may contain viruses or other malicious code. When in doubt, contact the IT Help Desk prior to opening this type of email.

5.9.4. All email communication from City Staff to City Councilmembers must be cleared through the City Manager's office before it is sent, and the City Manager should be copied on all correspondence to City Councilmembers.

5.9.5. To avoid Brown Act issues including serial meetings, City officials should avoid "replying all" to email communications when other City officials are copied to the email.

5.9.6. City personnel and elected/appointed officials should only use their City email account to conduct City business. The use of personal email accounts to transmit messages regarding City business is prohibited. If you receive an email that pertains to City business on your personal account, you shall either (a) copy (“cc”) any communication from your personal account to your City email account; or (b) forward the associated email to your City email account no later than 10 days after the original creation or transmission of the electronic communication to ensure a copy exists in the City email system.

5.9.7. City personnel and officials understand that email regarding City business is subject to the City’s records retention policy, even if the email is or was created, sent, received or stored on a personal electronic messaging account.

5.9.8. City personnel are expected to remember that e-mail sent from City email accounts is a representation of the City. All City personnel must use normal standards of professional and personal courtesy and conduct when drafting email messages. Email messages should be drafted with the same care and in the same manner as any communication printed on City letterhead.
156

5.9.9. Deletion of Material
Any material within the City’s Email System may be considered public record subject to the same rules and regulations as paper-based communications. City email users may delete messages from their "Deleted Items” file, or any other email folder, when such material is deemed to be unnecessary for operational reasons. All deleted emails, including material “permanently” deleted and no longer visible to the users, shall be retained by the City's Email System for a two year period from the date sent or received. All emails, including items residing in the Inbox, Sent, Calendar Items, and any other system or user-created folders, shall be retained for a two year period.

Following expiration of the two year retention period, all emails shall be automatically purged from the email system.

5.9.10. Email Retention and Public Records
The email system is intended as a medium of communication only and should not be used for long term storage or maintenance of documentation or official public records.

However, the city does recognize that when retained in the normal course of business, email may be subject to applicable records retention requirements outlined in the City’s Record Retention Schedule.

Emails typically fall into two basic retention categories:

1. Emails that are retained within the email system for two years from inception or receipt: General correspondence relating to City business that is retained in the normal course of business, shall be retained for two years as outlined in the City’s Record Retention Schedule.

2. Emails that are considered Public Records or must otherwise be preserved for a legally required time period greater than two years in accordance with the City’s Record Retention Schedule: Any email deemed to be a public record, that by the nature of its content must be retained longer than the limits outlined within this email policy shall be stored outside of the City’s email system in an appropriate long term storage area. These items shall be either printed and filed in accordance with the City’s Record Retention Schedule, or saved outside of the email system in the City’s Electronic Document Management System (EDMS), or other designated platform for the long term storage of electronic records. Similarly, any email subject to any type of litigation hold shall also be stored in an appropriate long term storage area.

It is the responsibility of the end user to determine which of the two options listed above is appropriate for a particular email. If an email is a Public Record, the user is responsible for the preservation of the record for the legally required time period in accordance with the City’s Record Retention Schedule.
157

To determine if an email qualifies as a Public Record or must otherwise be retained, individuals should apply the same criteria routinely used in determining the retention requirements for communications and documents. Questions about message retention should be directed to the City Clerk's Office.

5.9.11. Public Records Requests for Email
Upon approved requests, IT can search all email that is currently "live” on the City's email system. Live emails are defined as emails that currently exist in users' Inboxes, Sent, and Deleted Items folders, as well as any other user-created folders within the user’s mailbox. Email records that reside within the live email system, and that are not exempt from disclosure by virtue of the Public Records Act, are subject to disclosure.

The contents of email may be disclosed within or outside of the City without the employee’s permission or knowledge.

In the event a Public Records Act request is received by the City seeking electronic communications of City personnel or officials, which specifies items that may be stored within personal devices or systems not owned or controlled by the City, the City Clerk’s office shall promptly transmit the request to the applicable individuals whose electronic communications are sought. It shall be the duty of each Cityaffiliated individual within 10 days of receiving such a request from the City Clerk to promptly conduct a good faith and diligent search of his/her personal electronic accounts and devices for responsive electronic communications that reflect the public’s business (and are not purely personal communications), and must then promptly transmit any responsive electronic communications to the City Clerk to review. City personnel, the City Clerk and the City Attorney will work in consultation to determine whether the responsive electronic communications produced from personal electronic messaging accounts and devices are related to the public’s business and are disclosable under the Public Records Act. Failure of City personnel to comply with these required searches in response to a Public Records Act request may be subject to discipline.

5.9.12. Email Archives
Users who archive email files outside the live email system shall be responsible for the production of those documents in the event of a Public Records Act request.

Upon termination of employment, the IT division will archive the user’s emails residing within the live email system. Archived email items will be retained for 2 years from the date they are sent or received, and are subject to discovery. 158

5.10. No City Representation
Only authorized employees may communicate on the Internet on behalf of the City organization. Employees may not express opinions or personal views that could be misconstrued as being those of the City unless they are acting in an official capacity.

Employees may not state their City affiliation on the Internet unless required as part of their assigned duties.

5.11. Mobile Computing Device Use for City Business
For employees whose job duties require or benefit from working on an electronic device when located away from the office, the City may issue a City-owned device or authorize an employee to utilize a personally-owned device for City business. Users must protect the device at all times from loss, theft, or damage. In the event of loss, theft, or damage, the employee must notify the IT division so that appropriate action can be taken. In the event that a user is terminated or resigns from the City, the device must be returned to the City. At any time upon request, the Information Technology (IT) Division may require the user to provide any City-owned device for inspection.

Any employee that is issued a city device shall not install or uninstall any applications, or modify any security configurations, without prior authorization from the IT Division. These devices are for legitimate business use only in the course of employees' assigned duties.

If a mobile device covered under this policy cannot be located, the user is responsible for reporting the lost device to the IT Help Desk by the next business day after the loss. The IT Division will attempt to locate the device and may perform a remote “device wipe” to erase City data from the device.

5.12. Mobile Device Management Policy
The City may use a Mobile Device Management (MDM) software system that allows IT administrative control over city issued tablets, smartphones, and laptops. This system allows for management of passwords, remote connection settings, increased device security, control of allowed applications, and location of lost or stolen devices. This software may not be removed or tampered with while the device is being used for City business.

Download of applications may be restricted, or applications may be removed, if those applications are considered inappropriate, unrelated to City business, or they are considered a threat or significant risk to the City network environment.

From time to time, mobile device users may be asked to present their device to IT for a software update, or receive instructions on how to download and update themselves. Mobile Device users must promptly comply with these requests.

Mobile Devices are used as convenience and productivity enhancing tools. Due to their somewhat volatile nature, the data on these devices is considered as transient convenience 159

copies. Users are required to maintain a copy of any data that needs to be retained per City policy within a city file system other than local storage on the mobile device.

5.13. Mobile Access to Email
Only mobile devices that support Exchange ActiveSync technology for City e-mail synchronization are supported by the IT Division (Ex. iPhone/Android). Exchange ActiveSync mobile devices are designed to integrate with the City’s email system and sync wirelessly without physical connection to City networks and do not require the installation of special software. Exchange ActiveSync maintains a synchronized copy of email system data such that all data is maintained within the City email system. For non-exempt employees, access to City Email from a personal computer or mobile device must be approved using the Remote Email Access form available on the City Employee Intranet. The request form must be signed by the employee’s Supervisor and Department Head. Employees must protect their personal devices with a screen lock or password and should notify the IT Department immediately if the device is lost or stolen. The City is not responsible for troubleshooting or repair of non-City owned devices.

5.14. Public Records Requests and Mobile Devices
Any City-related electronic communication and any City-owned information stored on a City-owned or personally-owned electronic computing account or device may constitute a record subject to disclosure under the California Public Records Act (CPRA), the California Code of Civil Procedure, the Federal Rules of Civil Procedure, or other applicable statutes, regulations, or legal authorities. City employees and agents shall have no expectation of privacy or confidentiality in these records and shall cooperate with the City in producing them when requested as described in additional detail within the City’s Electronic Mail Policy. Such cooperation includes conducting a good faith and diligent search of one’s personal electronic messaging accounts and devices, as well as any City-issued electronic devices, for responsive electronic communications that reflect the public’s business (and are not purely personal communications) in response to a Public Records Act request received by the City. This search must be completed within 10 days of receiving notice that a Public Records Act request served on the City requires such a search and must be transmitted to the City Clerk within that time.

5.15. Remote Network Access
Access to the City’s network is available via a secure VPN or web remote access portal for employees and support personnel that need to work remotely. Employees desiring this capability may submit a written request, subject to Department Head, Human Resources, and IT approval. Installation of any unauthorized remote access software is strictly prohibited.

The City’s VPN is to be used only for official City business only. The VPN can be accessed only on City-owned and controlled computers; exceptions may be granted as needed for remote support from approved vendors. VPNs that are created for support from outside vendors will be enabled only for the time period that they are active and/or need to provide service. When they are finished with their task, the account will be deactivated until next use. 160

5.16. File Management
All documents, files, and electronic data should be electronically stored on the network file server in order to preserve the information via regular daily system backups performed by the Information Technology Division. Appropriate locations for file storage are the departmental directories on the (I:\) drive or the employee’s individual directory on the Personal (P:\) drive.

Employees should not store any files on their local computer (c:\drive) or any other local drive on their desktop computers as these files will not be backed up and may be lost due to a system failure or corruption.

All original City documents and records are the property of the City and shall be maintained in accordance with federal, state, local laws, and City policies and procedures.

Employees/agents shall ensure that City records will be retained in accordance with the City’s records retention policy.

Employees should regularly review files they have created and placed on the shared drives to decide what can be deleted or purged from the system in accordance with the City’s records retention policy.

Storage of City data on Mobile Devices, personally-owned devices such as smartphones, laptops, or home computers, or on unapproved Internet or “Cloud” based services, is prohibited.

Storage of copyrighted multimedia files (including music and videos) on City computers or servers is prohibited.

Any material found on City computers or servers that does not directly relate to the job duties of the employee and/or the employee’s department may be deleted and the employee’s supervisor and/or department manager notified.

5.17. Service Requests
Problems with computer equipment, software, or other related problems shall be reported to the IT staff immediately. Employees shall not attempt to resolve any unfamiliar problems without IT assistance. All service requests regarding hardware, software, or network problems should be directed to the Helpdesk at [email protected]. In order to serve the City efficiently, avoid contacting individual IT staff members directly.

5.18. Security Awareness and Education
The City takes protecting the organization, its intellectual property and any personal or confidential information extremely seriously. To help protect the City, training will be provided to all staff members who use a computer to perform their duties. The goal is to help individuals understand the risks in using today’s technology and how to effectively defend against cyber threats, both at work and at home.
161

All personnel will be required to take annual training, usually in the form of on-line video training or onsite workshops. The City may also provide reinforcement training such as newsletters, webcasts and other means. In addition to training, the City’s security awareness and education program will include unscheduled awareness assessments to assure compliance with the training. Any employee who fails to take required training, or who continually fails periodic assessments may be subject to disciplinary action as outlined in the City of San Clemente Personnel Rules.

Virus protection software is installed on each computer. Users shall not disable this software.

Users will notify the IT staff of any virus detection messages they receive on their system.

City Employees must report suspected information security incidents immediately to the Information Technology division. All suspected intrusions of the City Network by unauthorized employees or other individuals are to be reported to the Information Technology Division immediately.

Users should inform the appropriate Information Technology personnel when the user's software does not appear to be functioning correctly. If the user, or the user's manager or supervisor, suspects a computer virus infection, these steps should be taken immediately:
• Stop using the computer
• Do not try to save data.
• Turn off the computer.
• If possible, physically disconnect the computer from networks to which it is attached. • Contact IT.

5.19. Enforcement and Violations
The City reserves the right to audit networks and systems on a periodic basis to ensure compliance with this policy.

Violations of this policy will be reviewed on a case-by-case basis and may result in disciplinary action as outlined in the City of San Clemente Personnel Rules.

6. PROCEDURE:

6.1. This policy will be reviewed by the Information Technology Manager on an annual basis and may be updated as needed with City Manager approval.

6.2. Any violation of this policy may result in loss of computer access and disciplinary action, up to and including termination.

6.3. All City employees and individuals subject to the provisions of this policy will receive a copy of the policy and be required to sign an acknowledgment form.

Individual signed forms will be retained in the employee personal file or other appropriate file in the Human Resources Division.
162

ACKNOWLEDGMENT OF RECEIPT AND UNDERSTANDING OF THE USE OF

INFORMATION TECHNOLOGY POLICY
This will acknowledge that I have received my copy of the City of San Clemente Acceptable Use of Technology policy and that I have read the policy and understand my rights and obligations under the policy. Furthermore, I understand that I have no reasonable expectation of privacy with respect to my use of the City’s technology related systems, electronic equipment, or other communication devices.

I understand that employees and authorized individuals must sign an acknowledgment that they fully understand the policy and will comply with the procedures set forth in the policy. My signature below signifies that I have read this policy and that I accept and will abide by all of its provisions.

PRINT FULL NAME __________________________________________________ SIGNATURE _________________________________________________________ DATE SIGNED _______________________________________________________ 163

AGENDA REPORT

CITY OF SAN CLEMENTE
City Council Meeting
Community Center
100 N. Calle Seville
San Clemente, California
www.san-clemente.org
Meeting Date: 9/6/2022 Agenda Item: K.

Department: Utilities
Prepared By: Julie Schmidt, Management Analyst II
Subject:

PURCHASE OF WATER METERS FOR FISCAL YEAR 2022-23.

Fiscal Impact:

Yes. The funding for water meter purchases and replacements was approved in the Fiscal Year 2022- 23 Budget. New water meters related to development are budgeted in the amount of $2,000 from the Water Operating Fund, Account Number 052-463-42495. Replacement of existing meters are budgeted in the amount of $100,000 from the Water Fund Depreciation Reserve, Account Number 052-466-43420-000-23401.

Summary:

Staff recommends the City Council approve expenditures for Fiscal Year 2022-23 for water meter purchases and replacements from Ferguson Waterworks and Metron-Farnier based on the attached fixed price quotes.

Background:

The City’s water service area contains approximately 17,500 water meters ranging in size from one to six inches. Utilities staff periodically replaces old or damaged meters as needed, and meters are also installed for new water services. For smaller water meters (one to two inches), which are the most commonly purchased meters, the City purchases Neptune meters through Ferguson Waterworks. Utilities staff previously researched and tested various meter brands and determined that Neptune meters were the most reliable, the highest quality, and were the best fit for the City’s needs for small meters. Ferguson Waterworks is the only distributor in Southern California for Neptune water meters. For large meters (three to 12 inches), Utilities staff previously evaluated multiple vendors and discussed meter performance with other local agencies. Staff chose MetronFarnier based on performance and due to the exceptional accuracy with the large range from low to high flows that the meters are capable of reading. Metron-Farnier is the only distributor for these types of meters.

City Policy Number 201-2-1 “Purchasing Policies & Procedures for Supplies, Materials and Equipment” allows for these types of purchases as follows:
· Section 6.2.3 of the Policy allows these types of purchases under a “Contract Purchase Order” which is an agreement whereby the terms and conditions, pricing, and special provisions are agreed to and apply to individual commitments within a pre-established time period. The price quotes attached for Fiscal Year 2022-23 from Ferguson Waterworks and Metron-Farnier would result in Contract Purchase Orders. · Section 6.2.3.1 of the Policy regarding “Exclusive Requirements” would apply to these CITY OF SAN CLEMENTE Page 1 of 3 Printed on 9/7/2022
powered by Legistar™164
Meeting Date: 9/6/2022 Agenda Item: K.
· Section 6.2.3.1 of the Policy regarding “Exclusive Requirements” would apply to these Contract Purchase Orders since no guarantee is made as to the quantity to be purchased, but it is agreed any and all requirements will be purchased only under each Contract Purchase Order and from no other sources.
· Section 6.17.2 of the Policy allows for exemption from the Informal and Formal Bidding Process for “Sole Source” suppliers which allows approval of the attached price quotes with these vendors since Ferguson Waterworks is the only distributor in Southern California for Neptune Meters, and Metron-Farnier is the only distributor for the large meters the City purchases.

Attached are the fixed price quotes from Ferguson Waterworks and Metron-Farnier for Fiscal Year 2022-23. The prices for the smaller meters from Ferguson Waterworks reflect an average 18% increase from Fiscal Year 2021-22 due to rising costs of raw materials (copper), shipping, and operating costs. The justification provided by Ferguson for their increase in pricing is as follows:
· Raw materials - PPI Index for Metal Products Copper Base Castings - USBLS • Inflation September 2021 versus September 2020 was 29.9% • Pre-Covid Inflation (March 2020 versus March 2019) was -1.62% · Wages - Employment Cost Index - Wages and salaries for private industry workers in all industries and occupations - USBLS
• Inflation August 2021 versus August 2020 was 9.49%
• Pre-Covid Inflation (March 2020 versus March 2019) was 2.8% · Freight - Cass Freight Index - Cass Information Systems • Inflation September 2021 versus September 2020 was 31.4% • Pre-Covid Inflation (March 2020 versus March 2019) was 1% The Fiscal Year 2022-23 prices for the larger meters from Metron-Farnier will remain the same as Fiscal Year 2021-22 with the exception of one of the 3” meters which increased by 1.5%.

Plan and Policy Consistency:

The approval is consistent with the following General Plan Goals and Policies:
· Goal: Maintain and improve a comprehensive system of potable water supply, storage and distribution, and wastewater treatment, reclamation, and reuse to meet daily and emergency needs in San Clemente.
· Policy PSFU-5.05 Water Supplies. We provide and maintain adequate water supplies and distribution facilities capable of meeting existing and future daily and peak demands, including fire flow requirements.

The approval is consistent with the City’s Purchasing Policy Number 201-2-1 as discussed in the Background section above.

CITY OF SAN CLEMENTE Page 2 of 3 Printed on 9/7/2022
powered by Legistar™165
Meeting Date: 9/6/2022 Agenda Item: K.

Council Strategy:

The approval is consistent with Council Strategy 3 - Update and maintain infrastructure that reflects best available technology and service - in that Utilities is replacing its meter infrastructure to maintain accurate water use to improve its service to City customers.

Recommended Actions:

Staff Recommends That the City Council Approve the purchase of water meters from Ferguson Waterworks and Metron-Farnier for Fiscal Year 2022-23 based on the attached fixed price quotes for a total amount not to exceed $102,000...recommendation
Attachments:

1. Price quote for small water meters from Ferguson Waterworks for Fiscal Year 2022- 23 including information about price increases.

2. Price quote for large water meters from Metron-Farnier for Fiscal Year 2022-23.

3. City Policy 201-2-1 “Purchasing Policies & Procedures for Supplies, Materials and Equipment.” Notification:

None.

CITY OF SAN CLEMENTE Page 3 of 3 Printed on 9/7/2022
powered by Legistar™166
Date:
1 2
3 4
5 6
7 $0.00
San Clemente, City of 07072022
Extended
0 0
1" Neptune T-10 D/R, BRZ BTM, PLS TOP, CF (ED2F22R8F1SA51) $191.00 $82.00
$0.00
$0.00
Quotation #
Project:

AMI Specialists: Adam Milauskas
7/7/2022
Ship to:

Julie Schmidt Annual Direct Read Meter Quote
Reclaim 2" Neptune T-10 D/R, CF (ED2J11RCF3SA51)
$0.00
Estimated Sales Tax 7.75%
$0.00
Sub Total
0 0
Total Investment
$0.00
$546.00
Ship Date
12 Months
Taxable Freight
Freight
2" Neptune T-10 D/R, CF (ED2J11R8F2SA51)
7/1/22-6/30/23
San Clemente, City of
380 Avenida Pico Valid Until:

San Clemente, CA 92672
$657.00
0 $657.00
Net Thirty Days
5/8"x3/4" Neptune T-10 D/R, BRZ BTM, PLS TOP, CF
(ED2B22R8F1SA51)
Product or Service Description
$0.00
Terms:

Item Quantity Per Item

1.5" Neptune T-10 D/R, CF (ED2H11R8F2SA51)
$0.00
11909 Tech Center Ct.

Poway, CA 92064
Phone: 949.467.4758
Fax: 858.391.5958

Attachment 1
167
Date:

Quotation # San Clemente, City of 07072022
7/7/2022
11909 Tech Center Ct.

Poway, CA 92064
Phone: 949.467.4758
Fax: 858.391.5958
Prices quoted are for this project only and do not include sales or use taxes, if any. Quoted prices are based upon receipt of the total quantity for immediate shipment or shipments within thirty (30) days of a bid opening only, and are offered contingent upon the Buyer's acceptance of Seller's terms and conditions. Seller objects to all terms and conditions. Future shipments subject to price changes. Seller not responsible for delays caused beyond our control. Purchaser's sole warranties, if any, are those provided by the manufacturer. SELLER DISCLAIMS ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING ALL IMPLIED WARRANTIES OF MERCHANT ABILITY OR FITNESS OR FITNESS FOR A PARTICULAR PURPOSE. IN NO EVENT WILL

SELLER BE LIABLE FOR ANY INCIDENTAL, PUNITIVE, SPECIAL OR CONSEQUENTIAL DAMAGES ARISING DIRECTLY OR INDIRECTLY FROM THE OPERATION OR USE OF THE PRODUCT. SELLER'S LIABILITY, IF ANY, SHALL BE LIMITED TO THE NET SALES PRICE RECEIVED BY SELLER. All returns are subject to Ferguson and/or Manufacutures return policy and maybe subject to a restocking fee. Complete terms and conditions are available upon request or can be view at www.ferguson.com/sales-terms.html

Dear Valued Neptune Customer:

After much consideration, we at Neptune Technology Group have judged it necessary to increase our prices to keep pace with our rising costs in raw materials, shipping, and operating costs. Our price increase will be effective on July 1, 2022. Any orders submitted before July 1 will be subject to current pricing and terms.

Included with this letter is a Frequently Asked Questions (FAQs) document that will explain how our business has been affected, just as all others in our industry, with inflationary pressures. If you have any questions not addressed in the FAQs, please feel free to contact your Neptune sales representative.

This was a difficult, but necessary decision to make; and we understand how it impacts our customers. Therefore, we would like to express our appreciation for your ongoing support, and we are confident these changes will help us to continue providing you with the quality products and services that help you, our valued customers, #WinYourDay.

Regards,
Andy Bohn
District Manager CA/NV
Cell: 415-710-2046
[email protected]
169
Neptune Price Increase Frequently Asked Questions (FAQs) Your price increase letter references “rising costs in raw materials, shipping, and operating costs” can you explain to what extent you are affected? As reported by the Bureau of Labor Statistics, the average annual inflation rate for the United States has risen to 5.4%. This number is an aggregate of all economic activity in the United States. In Neptune’s sector, we are primarily driven by the following economic areas: raw materials (copper), wages, and freight. Let’s drill down into each of these areas (as found at US Bureau of Labor Statistics and Cass Information Systems):
• Raw materials – PPI Index for Metal Products Copper Base Castings - USBLS o Inflation September 2021 versus September 2020 was 29.9% o Pre-Covid Inflation (March 2020 versus March 2019) was -1.62% • Wages – Employment Cost Index - Wages and salaries for private industry workers in all industries and occupations - USBLS
o Inflation August 2021 versus August 2020 was 9.49%
o Pre-Covid Inflation (March 2020 versus March 2019) was 2.8% • Freight – Cass Freight Index - Cass Information Systems o Inflation September 2021 versus September 2020 was 31.4% o Pre-Covid Inflation (March 2020 versus March 2019) was 1% As you can see, our business environment has been significantly affected by inflationary pressure.

This pressure is much higher than the 5.4% reported as the aggregate inflation rate.

Why is this price increase happening now?
In the time since our last price increase Neptune has absorbed the pricing pressure that we documented above. We absorbed that pricing pressure so we would not impact your vital business. However, we have reached a point where we are required to raise pricing so that we can maintain the same levels of quality and service that you, as our valued partner, appreciate.

Should I expect further price increases from Neptune?
Economists generally agree that we will continue to see higher than average inflationary pressure throughout 2022 and into 2023. Our current price increase anticipates short-term inflationary pressure, and we will re-evaluate pricing levels as it becomes necessary. 170
Grand Total $27,040.00
Total Price $27,040.00
Subtotal $27,040.00
- All priced w/ innov8 Register
- This price list is good for fiscal year July 1, 2022 - June 30, 2023 Description
Programming -- None --
Bill To Name San Clemente Ship To Name San Clemente
Email [email protected]
Phone (303) 453-9706
Prepared By Dustin Rivas
Expiration Date 7/22/2022
Created Date 6/22/2022
5665 Airport Blvd Quote Number 00004650
Boulder, CO 80301
US
Company Address
Quantity Product Line Item Description Sales Price Total Price

1.00 Altair 5/8x3/4 7.5" LL Altair20 $185.00 $185.00

1.00 Spectrum 30DL 3/4" 9" LL 3/4'' S30 Measurer 9'' LL $185.00 $185.00

1.00 Spectrum 50DL 1" 10.75" LL S50 1" Top Load Brass Measurer $320.00 $320.00

1.00 Spectrum 88DL 1.5" 13" LL Spectrum 88 1.5'' Measurer 13'' LL $570.00 $570.00

1.00 Spectrum 130D 2" 10" LL S130 2" Top Load Measurer $950.00 $950.00

1.00 Spectrum 175D 3" 12" LL S175 3'' Top Load $1,675.00 $1,675.00

1.00 Spectrum 500D 3" S500 3'' Top Load Measurer $2,095.00 $2,095.00

1.00 Spectrum 500D 4" S500 4'' Top Load Measurer $2,595.00 $2,595.00

1.00 Spectrum 1000D 4" S1000 4'' Top Load Measurer $3,095.00 $3,095.00

1.00 Spectrum 1000D 6" S1000 6'' Top Load Measurer $3,975.00 $3,975.00

1.00 Enduro 2800D 6" Top Load Enduro 6'' Meter $5,500.00 $5,500.00

1.00 Enduro 2800D 8" Top Load Enduro 8'' Meter $5,895.00 $5,895.00 Attachment 2
171
Attachment 3
172
173
174
175
176
177
178
179
180
181
182

AGENDA REPORT

CITY OF SAN CLEMENTE
City Council Meeting
Community Center
100 N. Calle Seville
San Clemente, California
www.san-clemente.org
Meeting Date: 9/6/2022 Agenda Item: A.

Department: City Clerk
Prepared By: Laura Campagnolo, Legislative Administrator Agendized by: Agendized by Council at its meeting of August 16, 2022.

Subject:

ESTABLISHMENT OF A CITIZENS SUBCOMMITTEE TO FURTHER ANALYZE THE FEASIBILITY OF AN AMPHITHEATER (Agendized by Council at the August 16, 2022 City Council Meeting.) Fiscal Impact:

None.

Summary:

At its meeting of August 16, 2022, Council voted 4-1 to establish a Citizens Committee, with each Councilmember appointing one member, to further analyze the feasibility of an amphitheater. This report provides two options for Council to establish the committee:

1. In order to form the subcommittee, Council can direct the City Clerk to advertise and accept applications to fill five vacancies on the newly formed Amphitheater Citizens Committee, and schedule a meeting for Council to interview and appoint five Committee members.

2. Alternatively, Council may determine to each provide a recommended candidate to the Legislative Administrator to create the newly formed Amphitheater Citizens Committee.

The City Council would manage the Citizens Amphitheater Committee to ensure the committee’s work aligns with specific Council goals; no staff time would be used for the committee.

Recommended Actions:

Staff Recommendation

1. Staff Recommends that Council Take one of the following actions:
a. Authorize the Legislative Administrator to advertise to fill 5 vacancies on the newly formed Amphitheater Citizens Committee and schedule a meeting to interview and appoint five committee members.

OR
b. Determine to have each Councilmember provide a recommended candidate to the Legislative Administrator to create the newly formed Amphitheater Citizens Committee.

CITY OF SAN CLEMENTE Page 1 of 2 Printed on 9/7/2022
powered by Legistar™183
Meeting Date: 9/6/2022 Agenda Item: A.

AND

2. Determine whether to set term dates, or to have the Committee sunset after a period of two years.

Attachment:

None.

Notification:

None.

CITY OF SAN CLEMENTE Page 2 of 2 Printed on 9/7/2022
powered by Legistar™184

AGENDA REPORT

CITY OF SAN CLEMENTE
City Council Meeting
Community Center
100 N. Calle Seville
San Clemente, California
www.san-clemente.org
Meeting Date: 9/6/2022 Agenda Item: B.

Department: Utilities
Prepared By: David Rebensdorf, Utilities Director
Subject:

REVIEW OF THE CITY’S CR&R SOLID WASTE AND RECYCLING AGREEMENT BY MSW CONSULTANTS.

Fiscal Impact:

Yes, there is available funding for the proposed $40,000 expenditure in account number 058-518- 43690.

Summary:

MSW Consultants reviewed and analyzed the City’s Franchise Agreement with CR&R, Inc. (CR&R), neighboring agencies’ Solid Waste and Recycling Contracts, and current market conditions and made recommendations as outlined in the “Recommendation Regarding the City’s Solid Waste Franchise Agreement with CR&R” (Attachment 1).

Background:

The City has a Franchise Agreement with CR&R for solid waste and recycling handling and hauling services from residential and commercial properties in the City. The City is mandated by the State to provide for CalRecycle requirements as to waste handling and hauling in the City. The Franchise Agreement with CR&R has been amended several times over the years to provide additional services to meet mandates. The Fiscal Year 2021-22 budget included funding for the City to hire a specialty consultant to assist staff with review of the existing agreement with CR&R as to the City’s compliance with current State mandates, competitiveness of City’s services as to rates charged by CR&R and the franchise fee paid to the City, and to identify service improvements that may be implemented.

To facilitate an analysis, City staff solicited a Request for Proposals (RFP) from qualified consultants through PlanetBids and the City Manager approved a contract with MSW Consultants in the amount of $25,000 to evaluate the City’s Franchise Agreement with CR&R.

Discussion:

MSW Consultants prepared a report titled “Recommendation Regarding the City’s Solid Waste and Franchise Agreement with CR&R” (Attachment 1) which provides information related to trends within the industry, information about the current market, a list of companies currently providing solid waste and recycling services within Orange County, an overview of the franchise agreements, and recommendations for the City. In addition, the report compares the risks and benefits of issuing CR&R a notice to terminate the automatic contract extension. Based on the City’s existing Franchise Agreement, if the City does not issue a notice prior to July 1, the Franchise Agreement automatically renews for three years starting July 1. If notice is given, the Franchise Agreement will terminate in two years beginning on July 1, 2024, which allows the City time to potentially acquire a new hauler or CITY OF SAN CLEMENTE Page 1 of 3 Printed on 9/7/2022
powered by Legistar™185
Meeting Date: 9/6/2022 Agenda Item: B.
two years beginning on July 1, 2024, which allows the City time to potentially acquire a new hauler or modify its existing Franchise Agreement. Due to scheduling challenges, CR&R has extended the July 1 deadline to September 30, 2022.

Based on the report by MSW Consultants, the recommendation is to issue CR&R a notice to terminate service prior to June 30, 2022 and negotiate with CR&R for up to six months from June 30, 2022. CR&R is interested in negotiating a new contract with the City and has provided a proposal to the City (Attachment 2) outlining proposed changes to the Franchise Agreement. In the event a revised Franchise Agreement cannot be finalized within the next four months, the recommendation is to conduct an RFP, which will provide the City approximately 18 months to complete the RFP process and bring on a new hauler if one is chosen by the City Council.

As part of the negotiation, staff is recommending including Street Sweeping or a mechanism for collecting fees for Street Sweeping as part of the Solid Waste and Recycling Franchise Agreement.

Revenue for Street Sweeping was previously included as part of the Clean Ocean Fee which requires voter approval for funding. This is an opportunity to establish a consistent revenue source to clean trash and debris from public City streets. The current Street Sweeping program requires approximately $300,000 in revenue with a total program cost of approximately $600,000 annually with $300,000 from violations.

To facilitate an evaluation of proposed rates by CR&R, preparation of a revised Franchise Agreement and negotiations, staff is recommending a First Amendment to the Professional Services Agreement with MSW Consultants. As part of MSW Consultants proposal from January 24, 2022, there was a scope of work for negotiating in the amount of $40,000 and conducting a competitive bid process for $110,000. Based on CR&R’s willingness to fast track the negotiation given their initial proposal to the City, it is anticipated less than $40,000 will be required, the First Amendment contract work will be billed on actual expenses not-to-exceed $40,000.

Plan and Policy Consistency:

The approval is consistent with the following General Plan Goals and Policies:
• Goal: Continue to implement a cost-effective solid waste management program (consisting of source reduction, collection, recycling and disposal that meets or exceeds State and Federal waste diversion and recycling standards. • Policy PSFU-8.01 Coordination. We coordinate with contractors and other public agencies to identify and implement cost-effective solid waste and recycling strategies. • Policy PSFU-8.08. Collection. We provide solid waste collection for commercial, industrial, and residential uses and developments, in accordance with State law.

Council Strategy:

The approval is consistent with Council Strategy 2 - Grow resident confidence and value in City services and operations - in that the City is evaluating its contractual services to make improvements and continue to meet changing environmental regulatory requirements.

Recommended Actions:

Staff Recommends That the City Council:

1. Authorize the City Manager to issue CR&R a notice of termination of the automatic renewal of the Franchise Agreement prior to September 30, 2022. This will result in the CITY OF SAN CLEMENTE Page 2 of 3 Printed on 9/7/2022
powered by Legistar™186
Meeting Date: 9/6/2022 Agenda Item: B.
renewal of the Franchise Agreement prior to September 30, 2022. This will result in the Franchise Agreement termination on June 30, 2024;

2. Direct City staff to:
a. Enter into negotiations with CR&R for a period not to exceed four months; and, b. If an agreement is not reached within four months, issue a Request for Proposals and solicit firms for a new solid waste and recycling Franchise Agreement;

3. Include an analysis for Street Sweeping services or revenue as part of recommended action number two; and

4. Approve and authorize the City Manager to execute, Amendment No. 1 to Contract AC1046, by and between the City of San Clemente and MSW Consultants, providing for solid waste and recycling negotiations. This Amendment increases the contract from $25,000 to an amount not to exceed $65,000 (an increase of $40,000).

Attachments:

1. Recommendations Regarding the City’s Solid Waste and Franchise Agreement with CR&R prepared by MSW Consultants.

2. CR&R Solid Waste Management System Proposal to the City of San Clemente dated 8/16/2022.

3. City of San Clemente Franchise Agreement with CR&R.

4. Professional Services Agreement with MSW Consultants.

5. First Amendment to the Professional Services Agreement with MSW Consultants.

6. Presentation from MSW Consultants titled “Solid Waste Agreement: Negotiate or RFP.” Notification:

None.

CITY OF SAN CLEMENTE Page 3 of 3 Printed on 9/7/2022
powered by Legistar™187
Recommendation Regarding
the City’s Solid Waste Franchise Agreement with CR&R
Prepared by
Solid Waste Consultants
to Local Government
June 7, 2022
Attachment 1
188
Page intentionally left blank
189
i
Table of Contents
1 EXECUTIVE SUMMARY ...................................................................................................................... 1 2 RECENT TRENDS IN THE SOLID WASTE INDUSTRY.................................................................................. 2

2.1 SB 1383 – SHORT-LIVED CLIMATE POLLUTANTS .............................................................................................2

2.2 FACTORS CREATING UPWARD PRESSURE ON OPERATING COSTS .......................................................................3 3 SOLID WASTE MARKET IN ORANGE COUNTY ....................................................................................... 4

3.1 HAULER MARKET SHARE AND MAJOR SOLID WASTE FACILITIES.........................................................................4

3.2 RECENT EVENTS AND CIRCUMSTANCES...........................................................................................................5

3.3 RATE COMPARISON .....................................................................................................................................7 4 SAN CLEMENTE’S AGREEMENT WITH CR&R........................................................................................ 9

4.1 2010 FRANCHISE AGREEMENT......................................................................................................................9 5 BASIS FOR RECOMMENDATION ........................................................................................................ 11

5.1 GENERAL PROS AND CONS OF NEGOTIATING VS. ISSUING AN RFP ...................................................................11

5.2 APPLICATION OF GENERAL PROS AND CONS TO THE CITY OF SAN CLEMENTE.....................................................12

5.3 CONSIDERATION OF PROS AND CONS OF GIVING NOTICE TO END AUTOMATIC EXTENSION.................................12 6 SUMMARY OF RECOMMENDATIONS ................................................................................................. 15 190

1 Executive Summary
In March 2022, the City retained our firm to provide a recommendation to the City whether it should either:
• Enter into sole-source negotiationsfor a new solid waste franchise agreement with its current waste hauler, CR&R Incorporated (CR&R) or;
• Issue an RFP and solicit competitive proposals a new agreement.

In developing our recommendation, we:

1. Considered recent trends in the solid waste industry.

2. Surveyed the solid waste market in Orange County.

3. Reviewed the City’s current solid waste agreement.

4. Outlined the general pros and cons of conducting sole-source negotiations vs. issuing an RFP.

5. Analyzed those pros and cons in relation to the City’s current agreement.

Based on our review and analysis, we recommend that the City:
• Enter into negotiations now with CR&R, for a period not to exceed six (6) months. • In addition, prior to June 30, 2022, give CR&R a notice of termination of the automatic renewal of the term of the current franchise agreement. As a result of this action, the term of the current agreement will be set to end on June 30, 2024.

If the City does not give notice of automatic termination on or before June 30, 2022, due to provisions in the agreement, the term of the current agreement will automatically be extended for an additional year to June 30, 2025. • If the City and CR&R are not able to successfully negotiate a new agreement within six (6) months, conduct a competitive procurement process by developing and issuing an RFP to other qualified firms.
191

2 Recent Trendsin the Solid Waste Industry
The two most significant trends today in the solid waste industry in California are the implementation of SB 1383, and a combination of economic factors that are creating upward pressure on solid waste collection and recycling operating costs.

2.1 SB 1383 – Short-lived Climate Pollutants
In 2016, the State adopted SB 1383, the most significant change to solid waste handling regulations in 30 years. SB 1383 requires cities to implement programs to significantly reduce the amount of organic waste and recoverable edible food sent to landfills. The goals of SB 1383 are to reduce by 75% the amount of organic waste going to landfills by 2025, and reduce by 20% the amount of recoverable edible food that is currently landfilled.

While this new law was adopted in 2016, the final regulations that implemented the law were not finalized until November of 2020, and it did not become effective until January 2022. Although waste and recycling companies will perform many of the tasks of SB 1383, the regulatory requirements of this new law are placed squarely on the backs of local governments. SB 1383 requires local jurisdictions to:
• Amend their municipal codes to enforce the requirement that essentially all waste generators recycle their organics, including dry organics (cardboard, paper, etc.). • Ensure that their waste haulers provide organics collection service. • Estimate the amount of organic waste and recoverable edible food generated within their boundaries and provide that information to their county for facility planning purposes.
• Enhance existing edible food recovery programs to reduce the amount of recoverable edible food sent to landfills.
• Ensure that all newly constructed buildings have readily accessible space for recycling.
• Ensure that all new construction be designed with water efficient landscape. • Develop inspection and compliance review programs to ensure that waste generators fulfill the requirements of SB 1383 and the jurisdiction’s municipal code.
192

• Conduct periodic education and outreach to all waste generators, and specifically, generators of edible recoverable food.
• Ensure that the City’s hauler performs annual route inspections to minimize contamination.
• Procure a minimum quantity of recovered organic waste products. • Prepare and submit annual compliance reports to CalRecycle.

While SB 1383 is a major driver of the recent increase in solid waste customer rates across the State, there are several other economic factors that are contributing to this trend.

2.2 Factors Creating Upward Pressure on Operating Costs In addition to SB 1383, a significant trend in the solid waste industry today is the conflation of economic factors that are creating upward pressure on waste hauler’s operating costs, and thereby, causing increases in customer rates. These economic trends include:
• A shift in tonnage volume per unit from the commercial sector to the residential sector
• Continuing shortage of qualified truck drivers
• Continuing impact of China virtually banning the import of recyclables (China Sword)
• Supply chain constraints
• Steel prices
• Increased fuel costs
• General Inflation
193

3 Solid Waste Market in Orange County
Our survey of the solid waste market in South County is comprised of: 1) an overview of hauler market share and major waste facilities, 2) a description of recent events and circumstances, and, 3) a comparison of current rates.

3.1 Hauler Market Share and Major Solid Waste Facilities Chart 1 below shows the current market share of waste haulers in Orange County, as well as major waste facilities. This chart shows that one hauler (Republic) has most of the market in North County, and that two haulers, CR&R and Waste Management (WM), have all the market in South County. Chart 1 also shows that, of the three haulers with the most market share, CR&R’s facility of the Ortega Highway (and its planned facility near the Prima Desheca Landfill) are the closest to the City of San Clemente of the three haulers with the most market share.

Chart 1 – Waste Hauler Market Share and Major Facilities (Draft) 194

Table 1 below lists the operating facilities of the major waste haulers that are able to serve South County along with the distance of each facility from the City of San Clemente. This list shows that CR&R currently has the closest facility to the City (9 miles), and that its planned facility near the Prima Desheca Landfill will result in CR&R’s operating facility being only 4 miles away from the City.

Table 1 – Operating Facilities of Major Waste Haulers
Facility Name Hauler Location Distance from
San Clemente
CVT MRF Republic
Services
In Anaheim near intersection of 57 and 91
Freeways 38
CR&R South County
MRF CR&R Ortega Highway off of Gibby Road 9
CR&R Recycling and
Transfer (Planned for
2024)
CR&R La Pata Avenue near the Prima Desheca
Landfill 4
Sunset Environmental WM Near the intersection of Barranca and Jamboree Rd. in Irvine 28
Madison Resource
Recovery
WARE
Disposal
In Santa Ana on Fourth St. between
downtown and the I-5 Freeway 30

3.2 Recent Events and Circumstances
Table 2 the following page describes some recent events and circumstances cities in South County related to solid waste franchise agreements. Chart 2 on the following page compares the solid waste contract expiration dates of each of the cities in South County. 195

Table 2 – Recent Events and Circumstances in Orange County City Event
Aliso Viejo
CR&R has served the city since 2005. On November 2021 the city negotiated Amended and Restated the Franchise Agreement with CR&R. The current term of the city’s agreement is set to end in October 2027.

Dana Point
CR&R had served the city since 1996, when it acquired Solag Disposal. In 2019, the city amended its agreement with CR&R. As a result, the current term of the city’s agreement is set to end in June 2024. The city is currently in the process of negotiating amended and extended agreement; likely by 5 years.

Irvine
WM has the exclusive right (and obligation) to serve only the single-family residential sector. Several haulers openly compete for customers in the commercial and multi-family sector. WM has served the residential sector in the city for several decades. The current term of the city’s agreement is set to end in August 2026. The city is currently in negotiations with WM.

Laguna Beach
WM has served the city since 1993. The current term of the city’s agreement is set to end in June 2023. In May 2021, the city Council decided to begin a competitive procurement process. The city is now developing an RFP.

Laguna Hills
The current term of the city’ agreement with CR&R is set to end in June 2024. Lake Forest and Laguna Hills are now collaboratively conducting a single competitive procurement process.

Laguna Niguel
CR&R has served the city since 1996, when it acquired Solag Disposal. In 2018, the city negotiated a new agreement with CR&R. As a result, the current term of the city’s agreement is set to end in December 2028.

Laguna Woods
In April 2021, with less than two years remaining on its contract, and a potential option to extend its term by 5 years, WM notified the city that it would not object if the city issued an RFP. In July 2021, the City issued an RFP, and received two (2) proposals; from WM and CR&R. The city awarded the contract to CR&R in October 2021. The term of the new contract extends to 2032.

Lake Forest
The current term of the city’s agreement with CR&R is set to end in December 2028.

Lake Forest and Laguna Hills are now collaboratively conducting a single competitive procurement process.

Mission Viejo
Mission Viejo’s city code requires the city to competitively procure waste collection every 10 years. The city issued an RFP in July 2019. City received proposals from CR&R, Republic Services, and WM. CR&R and WM were shortlisted. In December 2019, city awarded an eight-year agreement to WM. As a result, the current term of the city’s agreement is set to end in December 2028.

Rancho Santa
Margarita
CR&R had served the city since 2004, when it was awarded the contract via a competitive procurement. In October 2021, city negotiated a 5-year Amended and Restated the Franchise Agreement with CR&R. As a result, the current term of the city’s agreement is set to end in June 2024.

San Juan
Capistrano
CR&R has served the city since 1996, when it acquired Solag Disposal. In May 2019, the city conducted a limited RFI (request for information) process. Three haulers submitted responses: CR&R, Republic, and WM. CR&R was selected. The new agreement has 10-year term with two options to extend the term by 5 years. 196

Chart 2 – Current South County Solid Waste Contract Expiration Dates

3.3 Rate Comparison
A comparison of customer rates for the most common levels of residential and commercial service are shown below in Chart 3 and Chart 4, respectively. The top portion of each bar in these charts reflects the portion of the rate that is retained by the city or attributable to street sweeping. The bottom portion reflects the portion that is retained by the hauler for solid waste collection service. The amounts shown in Chart 3 and Chart 4 are listed in Table 3 and Table 4 on the following page.

Chart 3 – Monthly Single-family Solid Waste Rates in South County Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec M J S D M J S D M J S D M J S D M J S D M J S D M J S D Aliso Viejo
Dana Point
Irvine
Laguna Beach
Laguna Hills
Laguna Niguel
Laguna Woods
Lake Forest
Mission Viejo
Rancho Santa Margarita
San Clemente
San Juan Capistrano City of San Juan Capistrano negotiated a new agreement in 2020.

City
Automatially extended by two years beginning on October 31, 2025. Remaining term is 2-years until further notice.

City of Dana Point is currently negotiating with CR&R.

City of Irvine is currently negotiating with WM.

City of Laguna Beach is currently undertaking an RFP process.

City of Laguna Hills is currently undertaking an RFP process in concert with Lake Forest. 2032 2033 2034 2035
Automatic Extension
City of Laguna Woods has option to extend by 5-years beginning on February 28, 2032 City of Lake Fores is currently undertaking an RFP process in concert with Laguna Hills.

City of Mission Viejo completed an RFP process in 2019.

City of Rancho Santa Margarita negotiated new agreement in 2021. 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
197

Chart 4 – Monthly Commercial Solid Waste Rates in South County Table 3 – Monthly Single-family Solid Waste Rates in South County Table 4 – Monthly Commercial Solid Waste Rates in South County Customer Rate City Fees Hauler Portion
Laguna Woods $12.73 $0.64 $12.09
Irvine $13.01 $0.65 $12.36
Laguna Hills $15.55 $0.00 $15.55
Dana Point $16.79 $0.84 $15.95
Lake Forest $17.79 $0.89 $16.90
Aliso Viejo $19.48 $1.39 $18.09
Rancho Santa Margarita $21.09 $1.05 $20.04
Mission Viejo $21.78 $1.74 $20.04
Laguna Niguel $21.69 $1.08 $20.61
San Juan Capistrano $22.36 $1.12 $21.24
Laguna Beach $22.05 $0.00 $22.05
San Clemente $23.51 $1.18 $22.33
City
Monthly Rate
Customer Rate City Fees Hauler Portion
Lake Forest $97.70 $4.89 $92.82
Rancho Santa Margarita $101.42 $5.07 $96.35
Laguna Woods $120.39 $6.02 $114.37
Aliso Viejo $126.81 $9.07 $117.74
Laguna Hills $124.10 $0.00 $124.10
Laguna Niguel $145.20 $7.26 $137.94
Mission Viejo $153.34 $12.27 $141.07
Dana Point $155.74 $11.68 $144.06
San Juan Capistrano $154.53 $7.73 $146.80
San Clemente $165.11 $17.75 $147.36
Laguna Beach $167.86 $16.79 $151.07
Monthly Rate
City
198

4 San Clemente’s Agreementwith CR&R

4.1 2010 Franchise Agreement
Under the terms of the current franchise agreement, CR&R has the exclusive right and obligation to provide waste and recyclables collection service to all of the City’s singlefamily, multi-family, and commercial customers. CR&R’s relationship with the City dates back to 1996 when CR&R acquired the City’s then long-time hauler, Solag Disposal.

Term of the 2010 Agreement
The City’s current Agreement with CR&R was negotiated in 2010. The initial term of the current Agreement was for an eleven and one half (11 ½) year term through June 30, 2022. The Agreement provides that, beginning on July 1, 2020, the term of the Agreement is to be automatically extended each year on July 1st for an additional year. The term of the Agreement will continue to be extended each year unless either the City or CR&R notifies the other party prior to June 30th of any year of its intent to end the term of the Agreement.

As a result, if neither party notifies the other, the Agreement will continually have a remaining term of between two and three years. As of the date of this letter, the remaining term of the Agreement extends to June 30, 2024. If neither the City or CR&R notifies the other party of its intent to end the term by June 30, 2022, the term of the Agreement will automatically extend for another year to June 30, 2025.

The 2016 Amendment
Also in 2016, the City amended its Agreement with CR&R to direct the company to transport organic waste collected in the City to CR&R’s anaerobic digestion facility (AD facility) in the City of Perris. As a result of redirecting its organic waste away from landfills and to CR&R’s AD facility, the City’s organic waste collection program is in compliance with SB 1383.

The 2021 Amendment
Although2016 amendment to the Agreement enabled the City to comply with much of SB 1383, the SB 1383 regulations that were promulgated in November 2020 included some requirements that are not addressed in the City’s current Agreement with CR&R. These additional requirements include waste characterizations, route reviews, and edible food recovery programs.

Favorable Diversion Rates Compared to CalRecycle Targets During CR&R’s tenure, the City has met its AB 939 waste diversion requirements. AB 939 requires that cities implement waste reduction and recycling programs such that the amount of 199

landfilled waste originating in the city does not exceed a certain maximum allowable amount.

The actual and maximum allowable amounts are expressed in the average disposal per person per day.

From 2007 through 2019 (the most recent year that disposal data is available),the City’s average actual disposal per person per day has been below the maximum allowable amount set by CalRecycle. This is shown below in Chart 5.

Chart 5 – Actual Per Capital Disposal Compared to Maximum Allowed Rate Recent Service Issues
According to City staff, CR&R has a history of providing high quality service. However, in the last two years, the City has received many more complaints about CR&R’s service than in previous years. These complaints have been primarily about spillage, missed pickups, and improperly commingling recyclables in the same truck as regular trash (which defeats the purpose recycling). The City is in frequent communication with CR&R about service complaints, and CR&R has represented that it is working to improve service and significantly reduce the number of complaints.

Based on City staff conversations with other cities that have other waste haulers, the increase in complaints do not seem to be unique to the City of San Clemente. City staff expects that CR&R will be able to improve service quality to what it was in the past. 200

5 Basis for Recommendation
To develop our recommendation, we: 1) considered the general pros and cons of sole source negotiation verses a competitive procurement, 2) applied these general pros and cons to the specific circumstances of the City of San Clemente, and, 3) considered the advantages and disadvantages of providing CR&R with notice to terminate the automatic extension.

5.1 General Pros and Cons of Negotiating vs. Issuing an RFP Table 4 below lists the advantages of negotiating vs. the advantages of soliciting competitive proposalsthat would generally apply to any jurisdiction.

Table 5 – Solid Waste Agreement Negotiate vs. Competitive Procurement Advantages of Negotiating with Incumbent Hauler Advantages of Soliciting Competitive Proposals from Several Haulers
▪ If there is adequate time remaining on the
current contract term, allows the City to
subsequently issue an RFP if the negotiations
are not successful.
▪ Avoids the risk of problems arising from the
transition to a new service provider (e.g.,
changed pickup days, a new hauler will not be
familiar with the City’s unique service
requirements, etc.).
▪ Avoids the problems that may occur if the City
receives a ‘low-ball’ bid; avoids the risk of
creating a high-profile and controversial
contractor selection process.
▪ Allows the City to achieve much of the same
assurances that it has obtained a fair deal by
comparing its rates, services and terms to those
in nearby jurisdictions.
▪ May require less City Council and staff time.
▪ Provides more assurance that City has obtained
the greatest value.
▪ Provides more assurance to the public that
contractor was selected in a fair manner.
▪ City benefits from the technical creativity of
several firms in identifying a menu of program
and service options to achieve the waste
diversion requirements.
▪ Allows the City to choose from several haulers.
▪ Allows the City to ‘mix ‘n match’ features from
multiple proposals.
▪ May require more City Council and staff time.
▪ Provides opportunity for Council members to
learn about solid waste issues.

Bottom line:

More appropriate when City is already meeting its
solid waste program objectives:
▪ Hauler provides high quality, reliable service;
and,
▪ Rates are reasonable; and,
▪ City meeting diversion mandates; and,
▪ Scope of services will not change.

Bottom line:

More appropriate when City is not meeting its solid
waste program objectives:
▪ City is less satisfied with hauler, or
▪ Rates are higher than nearby, comparable
jurisdictions; or,
▪ City not meeting diversion goals; or,
▪ City intends to make significant changes to the
scope of services.
201

5.2 Application of General Pros and Cons to the City of San Clemente Reasons to renegotiate with CR&R:
• According to City staff, CR&R has a history of providing high-quality service.

Although CR&R has had some recent services issues, these appear to be related to COVID-19 and other challenging industry trends. Based on staff discussions with other jurisdictions, other solid waste haulers in other cities have experienced similar service issues. CR&R’s history of providing high-quality service (and CR&R’s professed intention to regain its reputation for delivering high-quality service) helps to justify entering into negotiations with CR&R for a new agreement. • The City does not intend to make significant changes to the scope of services. The 2016 amendment provided for the organics collection services needed to comply with SB 1383, and the 2021 amendment to CR&R’s agreement addressed many of the scope requirements of SB 1383. As a result, the City does not need to make any significant changes to the scope of the agreement.
• The City is meeting its diversion mandates. As shown above in Chart 5, the City has been meeting its waste diversion targets. CalRecycle has recently requested the City to prepare a Formal Plan due to low participation rates among its commercial businesses. However, this is primarily due to businesses in the City electing to not recycle.

Reason to conduct a competitive procurement:
• The City’s rates are higher than other cities in South County.

5.3 Consideration of Pros and Cons of Giving Notice to End Automatic Extension Reasons to not give notice:
• There is some risk to the City of terminating the automatic extension and setting in motion a negotiation/procurement process. If the City and CR&R are not able negotiate an agreement, and the City issues an RFP, the City may undertake curtained risks. Other haulers may perceive that CR&R (as the incumbent and with facilities that are closest to the City) has a competitive advantage. There may be a risk that the City does not receive adequate competitive proposals in response to the RFP. There is a risk that other haulers may not offer competitive rates due to their relatively higher operating costs due to their distance from the City. There is also a risk that the rates bid by CR&R in response to an RFP might be higher than those that the City might otherwise be able to negotiate. 202

• If the City does not give notice (and assuming that CR&R does not give notice to the City), the City would be able to enjoy continued uninterrupted service at stable (although relatively higher) rates over time.

Reasons to give notice:
• With a firm contract expiration date, both parties will be more earnest in negotiations. If the City does not give notice, both parties would have less incentive to hurry, and the process may be prolonged.
• Due to its location in the southern-most part of the County, and its relative distance from the operating yards of other competing waste haulers, the City has less negotiating leverage for waste services than other cities to its north. Due to the current negotiations and procurements of these other nearby cities, this negotiating leverage may diminish even more in the next two years as these cities renegotiate or reprocure their waste agreements. The City of San Clemente may have more negotiation leverage with CR&R now than in the next two years. • There is a risk that WM may exit the waste market in Orange County. As shown below in Table 6, twenty years ago, WM was the exclusive provider in eight cities in Orange County. This year (with the transfer of the City of Santa Ana to Republic Services), WM will be the exclusive provider in only three Orange County cities.

Table 6 – WM Decrease in Orange County Market Share
OC Contracts Held by
WM in 2002
OC Contracts Held by
WM July 2022
Irvine Irvine
La Habra
Laguna Beach Laguna Beach
Lake Forest
Mission Viejo Mission Viejo
Orange
Santa Ana
Tustin
One of these three cities is the difficult-to-serve City of Laguna Beach, which is currently in the RFP process. Another is the City of Lake Forest in which WM has the exclusive obligation to service all residential customers at some of the lowest rates in the County, while it openly competes with other haulers in the more lucrative commercial sector. WM’s other city is the City of Mission Viejo, which selected WM in an RFP process in 2019. As a result, WM has far fewer customers 203

over which to spread its fixed costs than it did twenty years ago, and its remaining cities may not provide the company with high profit margins.

If WM were to retain Laguna Beach, and acquire Lake Forest and Laguna Niguel, it would be less likely that it would exit the waste market in Orange County.

However, these outcomes may not be as likely given the lack of competitiveness WM demonstrated in Laguna Woods.

If another waste company were to offer to purchase WM’s contracts in Orange County, it may be more economic for WM to sell these contracts than to continue to operate at thin margins. Moreover, due to CR&R’s presence in South County, at some purchase price, WM’s current contracts in Irvine and Mission Viejo may be more valuable to CR&R than they are to WM. For all these reasons, there is a risk that WM may exit the waste market in Orange County. If this were to happen, the City of San Clemente would have even less negotiating leverage. 204

6 Summary of Recommendations
The reasons to initially negotiate with CR&R are summarized below in Table 7. The reasons to issue a notice to terminate the automatic extension are summarized below in Table 8.

Table 7– Reasons to Initially Negotiate with CR&R
Key Reasons Why San Clemente Should Initially Conduct Negations with CR&R ▪ CR&R has the infrastructure in place (Perris AD facility) to process the City’s organics in compliance with SB 1383.
▪ The City’s current agreement with CR&R includes all the services the City needs to comply with SB 1383
▪ Due to its market share and facilities in South County, CR&R has the ability to bring economies of scale, and thereby, more competitive rates to the City of San Clemente.
▪ The City may be able to negotiate more favorable rates. ▪ If the City and CR&R are not able to successfully negotiate a new agreement within six months, the City will still have adequate time to conduct a competitive procurement.

Table 8– Reasons to Issue a Notice to Terminate the Automatic Extension Key Reasons to Issue a Notice to Terminate
▪ Both parties will be more earnest, and an agreement would be negotiated more quickly.
▪ The City has less negotiating leverage for waste services than other cities to its north, and this negotiating leverage may diminish more over time due to other contracts becoming finalized in the next two years.
▪ There is a risk that WM may exit the waste market in Orange County in the nottoo-distant future resulting in even less negotiating leverage for the City. 205
Attachment 2
206
207
208
209
210
211
212
384/062266-0187
2120575,1 a06/02111

AMENDED AND RESTATED AGREEMENT

BETWEEN THE

CITY OF SAN CLEMENTE
AND

CR&R,INCORPORATED

FOR SOLID WASTE HANDLING SERVICES
EFFECTIVE JANUARY 1, 2011
Attachment 3
213

TABLE OF CONTENTS

1. RECITALS 2

2. DEFINITIONS 2
A. AB 939 2
B. Affiliate 2
C. Anilnal Waste 3
D. Bins 3
E. Board 3
F. Bulky Iten1s 3
G. Cart 3
H. City 4
I. City Lin1its 4

1. City Manager 4
1<.. Collect/Collection 4
L. Commercial Premises 4
M. Container 4
N. Contractor 4
O. County Agreement 4
P. Customer 5
Q. Dwelling Unit 5
R. Effective Date 5
S. Environmental Laws 5
T. Franchise Area 5
U. Franchise Fee 5
V. Gross Receipts 5
W. Hazardous Substance 6
X. Hazardous Waste 6
Y. Household Special Wastes 6
Z. Multi-Family Dwelling 7
AA. Municipal Code 7
BB. Person 7
CC. Premises 7
DD. Recyclable Material 7
EE. Residential Premises, 8
FF. RolloffBox 8
GG. Single Family Dwelling 8
HH. Solid Waste 8
II. Solid Waste Handling Services 8
J1. Special Wastes 8
1<.1<.. Temporary Service 9
LL. Term 9
384/062266-0187
2120575.1 a06/02111 -1-
214

3. GRANT OF EXCLUSIVE FRANCHISE FOR SOLID WASTE HANDLING

SERVICES FROM ALL RESIDENTIAL AND COMMERCIAL PREMISES,

AND FOR PROVIDING TEMPORARY SOLID WASTE HANDLING
SERVICE 9
A. Scope of Franchise 9
B. Matters Excluded From Scope of Franchise 9
C. Enforcelnent ofExclusivity 10

4. ACCEPTANCE; WAIVER 10

5. TERM 11

6. SERVICES PROVIDED BY CONTRACTOR 11
A. GeneraL 11
B. Residential Solid Waste Handling Service 15
C. Commercial Solid Waste Handling Services 18
D. Telnporary Services 20
E. Recycling Obligations and Public Education Program 22 F. Additional Services 25
G. Special Services 26

7. MINIMUM STANDARDS FOR COLLECTION VEHICLES 27
A. GeneraL 27
B. Air Quality/Fuel Requirements 27
C. Specific Requirements 27
D. Costs of Operation and Damages 29
E. City Inspection 29
F. Correction of Defects and Removal of Vehicles from Use within City 29

8. CONTRACTOR'S PERSONNEL 29
A. Unifonns 29
B. Identification of Employees 29
C. Employee List 30
D. Driver's License 30
E. Screening of Field Employees 30
F. Discontinued Use of Unsatisfactory Employees 30
G. Training and Legal Compliance 30
H. Hiring of Undocumented Workers Prohibited 30

9. CONTRACTOR'S CONSIDERATION 30
A. Franchise Fee 31
B. Services at City Facilities 31
C. Public Refuse Fund 31

10. ADDITIONAL CHARGES AND INTEREST FOR LATE PAyMENTS 32

11. FAITHFUL PERFORMANCE 32
384/062266-0187
2120575.1 a06/02111 -11-
215

12. INSURANCE COVERAGE 33
A. Scope of Insurance Coverage 33
B. Environmental Pollution Control Insurance 34
C. Adjustments to Coverage 35
D. Deductibles and Self-Insured Retention 35
E. Verification of Coverage 35
F. Subcontractors 35
G. Loss or Reduction in Insurance 35

13. ASSIGNMENT, SUBLETTING, AND TRANSFER; REQUIREMENTS
AND LIMITATIONS 36

14. FRANCHISE TRANSFER; FEES AND SECURiTy 37

15. CITY'S REMEDIES; DEFAULT AND TERMINATION 37
A. Notice of Default 37
B. Failure to Cure 37
C. Review by City Manager 38
D. City Council Review 38
E. Performance During Reviews 38
F. Termination without Right to Cure 38

16. CONTRACTOR'S REMEDIES; ADMINISTRATIVE HEARING 39
A. Adlninistrative Hearing 39
B. Other Remedies; Claims 39
C. Actions for Damages 40

17. CITY'S ADDITIONAL REMEDIES 40

18. RIGHTS OF CITY TO PERFORM DURING EMERGENCy 40
A. Provision of Service 40
B. Possession of Equiplnent 41
C. Exclusions from Right to Possession of Equipment without Compensation 41

19. PRIVACy 41

20. REPORTS AND ADVERSE INFORMATION 41
A. Annual Reports 41
B. Adverse Information 42
C. Tonnage Report 43
D. Failure to Repoli 43

21. COMPENSATION 43
A. Contractor's Rates 43
B. Annual Producer Price Index Adjustments to Contractor Component and Processing COlnponent 43
384/062266-0 \87
2\20575.\ a06/02/\1 -111-
216
C. Annual Adjustments to Disposal Component 44
D. Discretionary Adjustments 44
E. Resolution of Disputes Regarding Rate Adjustments 45 F. Billing and Paylllent 45
G. Delinquent Accounts 45
H. Refunds 45

1. Recyclable Material Revenue 46

1. Additional Charges 46

22. IDENTIFICATION OF CONTRACTOR 46

23. PUBLIC ACCESS TO CONTRACTOR 46
A. Office Hours 46
B. Service COlllplaints 46
C. GovenUllent Liaison Person 47

24. RESOLUTION OF DISPUTED CUSTOMER COMPLAINTS 47
A. Notification of Arbitration Procedure 47
B. Customer Requests for Review; Time Limits 47
C. Referral of Complaints to Contractor 47
D. City Manager Review of Complaints 47
E. Records of Complaints 47

25. FLOW CONTROL; COUNTY AGREEMENT 47

26. INDEMNIFICATION 48
A. General. 48
B. Hazardous Substances Indemnification 49

27. CONTRACTOR'S BOOKS AND RECORDS; AUDITS 51
A. Maintenance and Inspection ofRecords 51
B. CERCLA Defense Records 51

28. TRANSITION OBLIGATIONS 51

29. GENERAL PROVISIONS 52
A. Force Majeure 52
B. Independent Contractor 52
C. Pavement Damage 52
D. Property Damage 52
E. Right of Entry 53
F. City's Authorized Agent 53
G. Law to Govern; Venue 53
H. Amendment 53

1. Notices 53

1. Savings Clause 54
IZ. Exhibits Incorporated : 54
384/062266-0187
2120575.1 a06/02111 -lV217
L. Joint Drafting 54
M. Attorneys' Fees and Litigation Costs 54
N. Corporate Resolution 54
O. Integration 54
P. Section Headings 54
Q. Conlpliance with Law 55

EXHIBITS
A. RATE SCHEDULE
B. MINIMUM BIN AND CONTAINER SPECIFICATIONS
C. SPECIFICATIONS FOR HOUSEHOLD SPECIAL WASTE COLLECTION

SERVICES
D. SPECIFICATIONS FOR SOLID WASTE CONTAINER ORDINANCE ASSISTANCE 384/062266-0187
2120575.\ a06/02/11 -v218

AGREEMENT
This Exclusive I:ranchise Agreement ("Agreement") is entered into to be effective as of the day of JtlIlv.ary, 2011, by and between the City of San Clemente ("City") and CR&R Incorporated ("Contra'ctor") (collectively, the "Parties") to provide an exclusive franchise for Solid Waste Handling Services within the City.

A. The Legislature of the State of California, by enactment of the California Integrated Waste Management Act of 1989 ("AB 939"), has declared that it is in the public interest to authorize and require local agencies to make adequate provision for the disposal of all Solid Waste within their jurisdictions.

B. Pursuant to California Public Resources Code Section 40059(a)(l), the City Council of the City of San Clemente has determined that the public health, safety, and welfare require that an exclusive franchise agreement be awarded to a qualified solid waste enterprise for Solid Waste Handling Services within the City Limits.

C. City previously entered a franchise agreement for Solid Waste Handling Services with Contractor dated August 6, 1997 (the "Prior Agreement"). The Prior Agreement has been amended three (3) times previously. It is the desire of the parties by entering this Amended and Restated Agreement to restate existing obligations in a single document, and, with respect to specific newly adopted provisions supersede the Prior Agreement, as more fully set forth herein.

D. City and Contractor are mindful of the provisions of the laws governing the safe collection, transpOli, recycling, and disposal of Solid Waste, including AB 939, the Resource Conservation and Recovery Act ("RCRA"), and the Comprehensive Environmental Response, Compensation and Liability Act ("CERCLA"). City and Contractor desire to leave no doubts as to their respective roles, and to memorialize that by entering into this Agreement. City is not thereby becoming an "arranger" or a "generator" as those terms are used in CERCLA, and that it is Contractor, not City, who is "arranging for" the collection, transpOli for disposal, composting, and recycling of municipal Solid Waste in the City which may contain hazardous substances.

City and Contractor understand and agree that it is Contractor, and not City, who will anange to collect Solid Waste, that City has not, and, by this Agreement does not, instruct Contractor on its collection methods, nor supervise the collection process, nor do the Parties intend to place title to such Solid Waste in City, but rather intend that whatever, if any, title in and to such Solid Waste that otherwise might exist in or with City in the absence of this Agreement is hereby transferred to Contractor, and fmiher that if Contractor gains title to such Solid Waste it is by operation of law and agreement with its Customers and is not the result of this Agreement. By entering this Agreement City and Contractor fmiher desire to confirm that Contractor has agreed to indemnify the City in connection with any claims relating to the inadvelient or intentional collection, transpOliation and/or disposal of hazardous materials that may occur in connection with Contractor's performance under this Agreement.
384/062266-0187
2120575.1 a06/02/11 219
E. Contractor has agreed, as part of this Agreement, to provide such services as are necessary or desirable to ensure City complies with the requirements of AB 939 and Public Resources Code Section 40000, et seq.

F. City desires, among other things, to ensure adequate landfills remain available to meet the public's need for the safe handling and disposal of Solid Waste, and fmiher desires to ensure its citizens do not incur undue costs in safely disposing of Solid Waste they generate, and has thus entered into the County Agreement (as defined herein.) Contractor has agreed, as part ofthis Agreement, to provide such services and take such actions as are necessary or desirable to ensure City complies with its obligations pursuant to the County Agreement.

Based upon the foregoing Recitals and for good and valuable consideration, the receipt and sufficiency of which is acknowledged by each of the Patiies, City and Contractor hereby agree as follows:

1. RECITALS.

The Parties acknowledge the above recitals are true and correct and incorporate them herein as ifthey were fully restated.

2. DEFINITIONS.

Whenever any term used in this Agreement has been defined by the California Public Resources Code, the definition of such term set f01ih therein shall apply unless the term is otherwise defined in this Agreement.

A. AB 939.
"AB 939" shall mean the California Integrated Waste Management Act of 1989, currently codified as California Public Resources Code Section 40000 et seq. as it may be amended from time to time.

B. Affiliate.
"Affiliate" means a business in which Contractor owns a direct or indirect ownership interest, a business (including corporations, limited and general patinerships and sole proprietorships) which has a direct or indirect ownership interest in Contractor and/or a business which is also owned, controlled or managed by any business or individual which has a direct or indirect ownership interest in Contractor. For purposes of determining whether an indirect ownership interest exists, the constructive ownership provisions of Section 318(a) ofthe Internal Revenue Code of 1986, as in effect on the date of this Agreement, shall apply; provided, however, that (i) "ten percent (10%)" shall be substituted for "fifty percent (50%)" in Section 318(a)(2)(C) and in Section 318(a)(3)(C) thereof; and (ii) Section 3l8(a)(5)(C) shall be disregarded. For purposes of determining ownership under this paragraph and constructive or 384/062266-0187
2120575.1 a06/02111 -2-
220
indirect ownership under Section 318(a), ownership interest of less than ten percent (10%) shall be disregarded and percentage interests shall be determined on the basis of the percentage of voting interest or value which the ownership interest represents, whichever is greater.

C. Animal Waste.
"Animal Waste" shall mean animal carcasses, dead animals, and/or palis or pOliions of dead animals. Animal Waste shall not include manure.

D. Bins.
"Bins" shall mean a metal or plastic Container, including dumpsters, compactors, and any similar such devices with a capacity of under ten (10) cubic yards.

E. Board.
"Board" shall refer to CalRecyle, the agency currently charged with enforcing and implementing regulations related to AB 939, the successor to the former California Integrated Waste Management Board, and any successor agency.

F. Bulky Items.
"Bulky Items" means Solid Waste that cannot and/or would not typically be accommodated within a Cali including specifically: furniture (including chairs, sofas, mattresses, and rugs); appliances (including refrigerators with and without Freon, ranges, washers, dryers, water heaters, dishwashers, plumbing, small household appliances and other similar items, commonly known as "white goods"); Residential wastes (including wood waste, tree branches, scrap wood, in the aggregate not exceeding one cubic yard per Collection); and clothing. For purposes of this Agreement, and notwithstanding any provision hereof to the contrary, Bulky Items shall specifically include items commonly known in the waste industry as "brown goods," "e-waste" and "universal waste" (including, without limitation all types of electronic waste, stereos, televisions, computers and monitors, cellular phones, VCRs, microwaves and other similar type of equipment and products), batteries, and fluorescent light tubes. Bulky Items do not include car bodies, Construction and Demolition Debris or (with the exception of appliances/white goods described above) items that cannot reasonably be moved with equipment ofthe type which, pursuant to industry standards would normally be carried in a truck Collecting Bulky Items. In the event a question arises as to whether a specific item, or category of items meets the definition of Bulky Items, the City Manager shall be responsible to determine whether said definition shall apply, which determination shall be final and binding on the Paliies.

G. Cali.
"Cart" means a plastic Container with a hinged lid and wheels serviced by an automated or semi-automated process, as opposed to a manual process oflifting and dumping. 384/062266-0187
2120575.1 a06/02111 -3-
221
H. City.
"City" shall mean the City of San Clemente, a municipal corporation, located in Orange County, California.

I. City Limits.
"City Limits" shall mean the territorial boundaries of the City together with all amendments and changes thereto, which boundaries are depicted on maps, incorporated herein by reference, that are kept on file in the office ofthe City Clerk ofthe City of San Clemente, and which are from time to time amended to reflect changes.

J. City Manager.
"City Manager" shall mean the City Manager of the City of San Clemente or his or her designee.

K. Collect/Collection.
"Collect" or "Collection" shall mean to take physical posseSSIOn of, transport, and remove Solid Waste from a premises.

L. Commercial Premises.
"Commercial Premises" means Premises upon which business activity is conducted, including but not limited to retail sales, services, wholesale operations, manufacturing and industrial operations, but excluding Residential Premises upon which business activities are conducted when such activities are permitted under applicable zoning regulations and are not the primary use of the propeliy. Notwithstanding any provision to the contrary herein, in the Municipal Code, or otherwise, for purposes of this Agreement, Premises upon which hotels and motels are operated shall be deemed to be Commercial Premises.

M. Container.
"Container" means any and all types of Solid Waste receptacles, including Carts and Bins.

N. Contractor.
"Contractor" shall mean CR&R Incorporated, the entity granted the franchise pursuant to this Agreement, or any party permitted pursuant to the terms hereof to become the successor or assignee thereof.

O. County Agreement.
"County Agreement" shall mean that celiain waste disposal agreement entered between various Orange County cities, including specifically the City of San Clemente, and the County of Orange relating to the use of County landfills for the disposal of Solid Waste collected in such 384/062266-0 \87
2120575.\ a06/02/11 -4-
222
cities, and which is on file in the office of City's City Clerk, as the same may be amended from time to time.

P. Customer.
"Customer" shall mean any person recelvmg Solid Waste Handling Services from Contractor within the Franchise Area.

Q. Dwelling Unit.
"Dwelling Unit" shall mean one or more rooms designed for occupancy by one family for living and sleeping purposes and containing kitchen facilities or an area designed for the preparation offood for use solely by one family.

R. Effective Date.
"Effective Date" shall mean January 1,2011.

S. Environmental Laws.
"Environmental Laws" means all federal and state statutes, county, local and City ordinances concerning public health, safety and the environment including, by way of example and not limitation, the Comprehensive Environmental Response, Compensation and Liability Act of 1980,42 USC §9601 et seq.; the Resource Conservation and Recovery Act, 42 USC §6901 et seq.; the Federal Clean Water Act, 33 USC §1251 et seq.; the Toxic Substances Control Act, 15 USC §2601 et seq.; the Occupational Safety and Health Act, 29 USC §651 et seq.; the California Hazardous Waste Control Act, California Health and Safety Code §25100 et seq.; the CarpenterPresley-Tanner Hazardous Substance Account Act, California Health and Safety Code §25300 et seq.; the Porter-Cologne Water Quality Control Act, California Water Code §13000 et seq.; the Safe Drinking Water and Toxic Enforcement Act, California Health and Safety Code §25249.5 et seq.; as currently in force or as hereafter amended, and all rules and regulations promulgated thereunder.

T. Franchise Area.
"Franchise Area" shall mean all Premises within the City Limits, including Premises which may be annexed and thereby added to the City Limits following the Effective Date.

U. Franchise Fee.
"Franchise Fee" shall mean the franchise fee set forth and more fully defined in Section 9 hereof.

V. Gross Receipts.
"Gross Receipts" shall mean and include all monies, fees, charges, consideration, and revenue received, charged or imputed to Contractor and any Affiliate of Contractor, in connection with, arising from, or in any way attributable to the Solid Waste Handling Services 384/062266-0187
2120575.1 a06/02/11 -5-
223
carried out by or on behalf of Contractor pursuant to this Agreement. Gross Receipts includes, without limitation, monthly Customer charges for the Collection of Solid Waste and any other materials Collected hereunder, any franchise fees or other fees imposed and collected pursuant to this Agreement, sums collected in connection with Temporary Services, and tipping and/or disposal fees charged to and collected from Customers. Notwithstanding any provision to the contrary herein, Gross Receipts shall not include revenues received by Contractor from the sale ofRecyclable Materials.

W. Hazardous Substance.
"Hazardous Substance" shall mean any of the following: (a) any substances defined, regulated or listed (directly or by reference) as "Hazardous Substances," "hazardous materials," "Hazardous Wastes," "toxic waste," "pollutant" or "toxic substances" or similarly identified as hazardous to human health or the environment, in or pursuant to (i) the Comprehensive Enviromnental Response, Compensation and Liability Act of 1980, 42 USC §9601 et seq. (CERCLA); (ii) the Hazardous Materials Transportation Act, 49 USC §5l01, et seq.; (iii) the Resource Conservation and Recovery Act, 42 USC §6901 et seq.; (iv) the Clean Water Act, 33 USC §1251 et seq.; (v) California Health and Safety Code §§25115-25117, 25249.8, 25281, and 25316; (vi) the Clean Air Act, 42 USC §740l et seq.; and (vii) California Water Code §13050; (b) any amendments, rules or regulations promulgated thereunder to such enumerated statutes or acts currently existing or hereafter enacted; and (c) any other hazardous or toxic substance, material, chemical, waste or pollutant identified as hazardous or toxic or regulated under any other applicable federal, state or local laws or regulations, including any of the Environmental Laws, currently existing or hereinafter enacted, including, without limitation, friable asbestos, polychlorinated biphenyl's ("PCBs"), petroleum, natural gas and synthetic fuel products, and byproducts.

X. Hazardous Waste.
"Hazardous Waste" means all substances defined as Hazardous Waste, acutely Hazardous Waste, or extremely Hazardous Waste by the State of California in Health and Safety Code §25110.02, §25115, and §25117 or in the future amendments to or recodifications of such statutes or identified and listed as Hazardous Waste by the US Environmental Protection Agency (EPA), pursuant to the Federal Resource Conservation and Recovery Act (42 USC §6901 et seq.), all future amendments thereto, and all rules and regulations promulgated thereunder. y. Household Special Wastes.
"Household Special Wastes" means the following waste materials when they are used at and discarded from a Residential Premises, but does not include any of the following waste if generated in the course of operating a business concern at a Residential Premises: (i) "Household Pharmaceutical Waste" meaning unused or expired prescription and non-prescription human medications, veterinary drugs, and diagnostic agents, nutritional supplements and personal care products such as fragrances, cosmetics, and sun-screen agents [but excluding controlled substances and medical waste not specifically described herein]; (ii) Sharps as defined in Section 117671 of Title 22 of the California Code of Regulations, including hypodermic needles, pen needles, intravenous needles, lancets, and other devices that are used to penetrate the skin for the 384/062266-0187
2120575.1 a06/02111 -6-
224
delivery of medications; (iii) Universal Waste as defined in Section 66261.9 of Title 22 of the California Code of Regulations, including but not limited to: fluorescent bulbs and tubes; household batteries (e.g. D, C, AA, button-type, etc.); non-empty aerosol cans; electronic devices (e.g. televisions, computer monitors, cell phones, radios, video cassette recorders, etc.); and mercury containing devices (e.g. thermometers, thermostats, gauges, etc.); and (iv) "Household Hazardous Waste" meaning any Hazardous Waste generated at a Residential Premises including but not limited to: automotive maintenance and repair products (e.g. motor oil, oil filters, antifreeze; lead-acid batteries, brake fluid, etc.); lawn and garden chemicals (e.g. pesticides, herbicides, fungicides, etc.); cleaning products (e.g. bathroom cleaners, drain cleaners, chlorine bleach, solvents, oven cleaners, etc.); and home improvement supplies (e.g. stains, paints, varnish, paint thinners, chemical strippers, glue, pool chemicals, etc.).

Z. Multi-Family Dwelling.
"Multi-Family Dwelling" means any Residential Premise containing more than one Dwelling Unit at which Contractor determines (and City agrees) the Dwelling Units must receive Solid Waste Handling Services through the use of Bins rather than Calis. Generally speaking, this will occur when: (i) a City approved enclosure for a Bin(s) exists; and (ii) there is sufficient space on the Customer's property to provide safe access for Contractor's collection equipment; and (ii) either, (a) the Customer's property is comprised of four or more dwelling units on a single assessor's parcel or (b) the Customer's property is comprised of three or less dwelling units on a single assessor's parcel and Contractor obtains City's approval to use Bin service in place of Calis. Any ambiguity or dispute as to whether a Customer's Premises qualifies for purposes of this Agreement as a Single Family Dwelling, which may be serviced using Carts, or Multi-Family Dwelling, which may be serviced using Bins, shall be resolved by the City Manager whose decision shall be final.

AA. Municipal Code.
"Municipal Code" shall mean City's Municipal Code.

BB. Person.
"Person" shall mean any individual, firm, association, organization, palinership, corporation, business trust, joint venture, the United States, the State of California, the County of Orange, towns, cities, and special purpose districts.

CC. Premises.
"Premises" shall mean any land, building, and/or structure within the City Limits where Solid Waste is generated or accumulated.

DD. Recyclable Material.
"Recyclable Material" or "Recyclables" shall mean that Solid Waste discarded within the Franchise Area which is capable of being recycled.
384/062266-0187
2120575.1306/02/11 -7-
225
EE. Residential Premises.
"Residential Premises" shall mean all premises upon which Dwelling Units exist.

Notwithstanding any provision to the contrary herein, in the Municipal Code, or otherwise, for purposes of this Agreement, Premises upon which hotels and motels exist shall be deemed to be Commercial Premises.

FF. RolloffBox.
"Rolloff Box" means Solid Waste Collection Containers of ten (10) yards or larger, including compactors.

QQ. Single Family Dwelling.
"Single Family Dwelling" means a building or lot containing one Dwelling Unit, and for purposes of this Agreement includes buildings and lots with more than one Dwelling Unit where such Dwelling Units are determined by the City to be reasonably able to receive individualized Solid Waste Handling Service by the automated process utilizing Calis contemplated herein. It is generally assumed by the Paliies, although not required by this Agreement, that any Residential Premises upon which between one (1) and three (3) or Dwelling Units exists will be deemed to be a Single Family Dwelling and receive services utilizing Carts rather than Bins.

Any ambiguity or dispute as to whether a Customer's Premises qualifies as a Single Family Dwelling or Multi-Family Dwelling shall be resolved by City.

HH. Solid Waste.
"Solid Waste" shall mean and include all discarded putrescible and nonputrescible solid, semisolid, and liquid wastes, including garbage, trash, Refuse, rubbish, construction waste, industrial waste, commercial Solid Waste, Bulky Items, and any other discarded solid, semisolid, and liquid waste permitted to be disposed of at a Class III landfill and which are included within the definition of "Nonhazardous Solid Waste" set forth in the California Code of Regulations, as it may be amended from time to time. Solid Waste does not include hazardous (Class I) waste, low-level radioactive waste, untreated medical waste, or Special Wastes as defined herein.

II. Solid Waste Handling Services.
"Solid Waste Handling Services" means the Collection, transfer, transpOli, recycling, processing, and disposal of Solid Waste.

J1. Special Wastes.
"Special Wastes" shall mean wastes other than Solid Waste including sewage, sludge, industrial sludge, asbestos, auto bodies, tires, used motor oil, hazardous waste, Animal Waste, explosive substances, radioactive materials, sharps, pharmaceutical waste, universal waste, household hazardous waste, and other materials which may not be disposed of at a Class III landfill or which require special handling.
384/062266-0187
2120575.1 a06/02111 -8-
226
KK. Temporary Service.
"Temporary Service" shall mean Solid Waste Handling Services provided by Contractor on an as-needed and temporary basis to any Premises within the City in conjunction with construction, demolition, cleanup or other projects, and by use of temporarily placed Bins or Rolloff Boxes.

LL. Term.
"Term" shall have the meaning ascribed in Section 5 ofthis Agreement.

3. GRANT OF EXCLUSIVE FRANCHISE FOR SOLID WASTE HANDLING

SERVICES FROM ALL RESIDENTIAL AND COMMERCIAL PREMISES, AND

FOR PROVIDING TEMPORARY SOLID WASTE HANDLING SERVICE
A. Scope of Franchise.

Except as hereinafter expressly set forth, City hereby grants to Contractor and Contractor hereby accepts from City, for the Term hereof, the exclusive contract, right, and privilege to Collect, transport, and dispose of all Solid Waste generated or accumulated within the Franchise.

Area. The exclusive franchise, right and privilege to provide Solid Waste Handling Services within City granted to Contractor by this Agreement shall be interpreted to be consistent with all applicable state and federal laws, now in effect and adopted during the term of this Agreement, and the scope of this Agreement shall be limited by all applicable current and developing laws and regulations. In the event that future interpretations of current law or future enactments limit the ability of City to lawfully grant Contractor the scope of services as specifically set forth herein, Contractor agrees that the scope of this Agreement will be limited to those services and materials which may be lawfully provided, and that City shall not be responsible for any lost profits claimed by Contractor as a result thereof.

B. Matters Excluded From Scope of Franchise.

Notwithstanding any other provisions set forth in this Agreement to the contrary, the exclusive franchise granted herein shall exclude:
(1) the collection, transpOliation, recycling, and disposal of any Solid Waste otherwise within the scope of this Agreement which is transported to an appropriate disposal facility by an occupant of the premises upon which the Solid Waste was generated (but not including any agent, representative, or contractor ofsuch occupant); (2) the collection, transpOliation, recycling, and disposal of any Solid Waste otherwise within the scope of this Agreement which is transpOlied to an appropriate disposal facility by an officer or full time permanent employee of the commercial, construction, or industrial enterprise that generated the Solid Waste (but not including any independent contractor, non-employee agent, or representative, or other contractor ofsuch enterprise); (3) the sale or donation of Recyclable Material by the person or entity that generated such Recyclable Material (the "Generator") to any person or entity other than 384/062266-0187
2120575.1 n06/02111 -9-
227
Contractor; provided, however, to the extent permitted by law, ifthe Generator is required to pay monetary or non-monetary consideration for the Collection, transpOliation, transfer, or processing of Recyclable Material to any person or entity other than Contractor, the fact that the Generator receives a reduction or discount in price (or in other terms of the consideration the Generator is required to pay) shall not be considered a sale or donation; (4) any Solid Waste otherwise within the scope of this Agreement which is Collected or transpOlied to a disposal or recycling facility by City employees in the course and scope oftheir employment with City;
(5) the Collection, transpOliation, or disposal of Hazardous Waste; Universal Waste; E-Waste; biohazardous waste; untreated medical waste; infectious waste; Animal Waste; used cooking fats, oils, grease and similar waste; or other materials which do not constitute Solid Waste;
(6) the Collection, transpOliation, and disposal of Construction and Demolition Waste by a contractor, handyman, repairman, or other similar service provider, using its own equipment, as an incidental part of the services provided to its Customers, rather than as a hauling service, provided that such waste is not Collected or transported by a third patiy hired for the primary purpose of Collecting and transpOliing said materials; (7) the Collection, transpOliation, and disposal of green waste and related Solid Waste by a gardener, or landscaper, as an incidental part of the gardening or landscaping services provided to its customers, rather than as a hauling service provided that such Solid Waste is not collected or transported by a third patiy hired for the primary purpose of Collecting and transporting said materials;
(8) Solid Waste Handling Services provided by any Person having a legal right to continue doing so, pursuant to Public Resources Code Section 49520, et. seq., or otherwise, as long as and to the extent such legal right continues to exist, except that to the degree any territory in which Contractor has a franchise granted by another governmental entity is annexed into City during the Term, Contractor agrees the provisions of this Agreement shall apply to such territory and fmiher acknowledges that this Agreement constitutes any notice required by the Public Resources Code in connection therewith.

C. Enforcement of Exclusivity.

Contractor shall be responsible for enforcing the exclusivity of this Agreement. City shall have the right to enforce the exclusivity provisions hereof if, in its absolute and sole discretion, it chooses to do so, but shall have no obligation to do so for the benefit of Contractor or otherwise. City additionally shall have the right, but not the obligation, to request that Contractor enforce the exclusivity provisions hereof. Contractor shall have an affirmative obligation to enforce such exclusivity provisions when requested to do so by City.

4. ACCEPTANCE; WAIVER
Contractor agrees to be bound by and comply with all the requirements of this Agreement. Contractor waives Contractor's right to change the terms of this Agreement under 384/062266-0187
2120575.1 a06/02/11 -10-
228
Federal, State, or local law, or administrative regulation. Contractor waives any right or claim to serve the City or any part of the City under any prior grant of franchise, contract, license, or permit issued or granted by any governmental entity including any right under Section 49520 of the Public Resources Code. Additionally, by and upon the execution of this Agreement, Contractor agrees to the termination of the Prior Agreement as of the Effective Date, agrees to waive any and all rights under the Prior Agreement, and agrees to release and hold the City harmless from any of the City's obligations thereunder (excepting, however, the right to compensation for services provided at the rates approved by City as of the Effective Date); provided, however, nothing contained in this provision is intended to or shall relieve Contractor from any obligation existing under the Prior Agreement peliaining to insurance, indemnification, or other legal obligations to City or Customers (as opposed to obligations to provide service pursuant to the terms thereof), or from any obligation set forth in the Prior Agreement which are called out as surviving the termination thereof, and all such obligations, including specifically those indemnification obligations relating to Environmental Laws, general liability, and AB 939 shall survive the termination ofthe Prior Agreement.

5. TERM
The term ofthis Agreement (the "Term") shall be for the period of time commencing on January 1,2011, and ending July 1,2022, unless this Agreement is terminated sooner pursuant to Section 15 hereof, or otherwise. On July 1,2020, and on July 1 of each subsequent year unless a Party has provided a notice of nonrenewal as provided below, the Term of the Agreement shall be extended (without further action by the Patiies) for an additional year (the "Automatic Renewal") so that the remaining term ofthe Agreement shall be two (2) years. Either Party may give notice oftermination ofthe Automatic Renewal on or before midnight on June 30, 2020, or on or before midnight on June 30 of each subsequent year. Once notice of the termination of the Automatic Renewal is given by either Patiy no further Automatic Renewals shall occur, and this Agreement shall remain in effect only for its then remaining two-year term.

6. SERVICES PROVIDED BY CONTRACTOR
A. General.

Contractor shall furnish all labor, superVlSIOn, materials, supplies, and equipment necessary to provide for all services required by the terms of this Agreement; and shall comply with all ofthe following provisions:
(1) Performance Standards
Contractor shall perform Solid Waste Handling Services as required hereunder in a workmanlike manner consistent with good housekeeping standards and all relevant provisions of the Municipal Code. Contractor's equipment shall be maintained so as to both: (1) meet the highest industry standards with regards to effOlis to prevent liquid from leaking and to the degree possible be "wateliight" and "leak-proof' and, (2) at all times comply with the provisions of all laws and regulations, including any applicable National Pollution Discharge Elimination Systems ("NPDES") permit, with regards to leaking of materials. Contractor shall immediately clean up any spills from its equipment of which it becomes or is made aware. 384/062266-0187
2120575,1806/02/11 -11-
229
(2) Noise and Disruption
Contractor shall perform Solid Waste Handling Services as required hereunder in such a manner as to minimize noise and other disruptive impacts including, without limitation, those upon traffic. Contractor shall use its best effOlis to coordinate its Collection schedules such that street sweeping on any given street shall occur the business day following Collection of Solid Waste by Contractor.
(3) Collection Times
Contractor shall not commence Solid Waste Handling Services for Customers at Commercial Premises until 6:00 a.m. and for Customers at Residential Premises until 7:00 a.m., nor shall such activities occur after 7:00 p.m. for Customers at Commercial Premises and 7:00 p.m. for Customers at Residential Premises. The City Manager may require Contractor to comply with time frames applicable to Residential Premises in connection with Solid Waste Handling Services for Customers at Commercial Premises whose premises are in close proximity to Residential Premises. Bulky Item Collection may occur on Saturdays. No Solid Waste Handling Services shall occur on Sundays at Residential Premises, except in exceptional circumstances for which specific approval is given by the City Manager. Solid Waste Handling Services may occur at Commercial Premises on Sundays; provided, however, no such service shall occur on Sundays in connection with any Premises at which the City Manager determines such service would be contrary to the public interest.
(4) Collection Schedule
Contractor shall establish Collection routes and a Collection schedule which shall be approved by the City Manager such that Customers at all Residential and Commercial Premises within the City will have not less than one established Collection day each week. Contractor shall provide notice to each Customer of its established Collection day(s), and shall provide at least one week's notice to Customers of any change in their established Collection day(s).

Notwithstanding any provision herein to the contrary, should any established Collection date fall on a legal holiday, or on any other holiday which is observed by either a landfill or other lawful disposal site to which Solid Waste is taken for disposal, or a recycling facility to which Recyclable Material is taken, Contractor shall provide for Collection one (1) day later during the pick-up week, and the regular pick-up schedule shall be resumed the following week. A pick-up week shall be defined as Monday through Saturday. Contractor may not change its established Collection schedules without obtaining the prior written consent ofthe City Manager. (5) Commingling ofRoutes
Contractor shall not during its Collection process commingle Solid Waste Collected hereunder with Solid Waste Collected in any other City, or on behalf of any other entity operating or existing within City that is not subject to this Agreement, and is specifically prohibited from combining Collection routes related to services provided pursuant to this Agreement with Collection routes for other jurisdictions it may service. Notwithstanding the forgoing, if Contractor desires to commingle routes with and Solid Waste Collected from other jurisdictions, it may present a proposal for doing so to the City Manager. Such proposal shall 384/062266-0187
2120575.1 a06/02/11 -12-
230
include an explanation for the reason to commingle routes/Solid Waste as well as the methodology proposed to properly allocate Solid Waste generated in the City. The City Manager may approve any such proposal in his discretion, or, alternatively, the City Manager may, in his discretion, refer any such proposal to the City Council for its consideration. Any proposal approved pursuant to this Section may be revoked by the City Manager, at any time, if in his discretion he determines it is not in the City's best interest. (6) Replacement of Containers
Contractor shall, whenever possible, place Cmis in the street gutter, adjacent to the curb upon completing Collection. Contractor shall replace all Bins in the location upon the propeliy of each Customer utilizing Bins designated for storage of Bins, and shall secure gates, doors, and/or enclosures when applicable.
(7) Contractor's Containers
a. Contractor shall be responsible to maintain and replace, as necessary, all of its Containers.
b. All Contractor's Containers shall comply with the specifications set fOlih in Exhibit B, and shall be maintained by Contractor in good repair with any question as to the meaning ofthis standard to be resolved by the City Manager. c. All Cmis and Bins shall be maintained by Contractor m a wateliight condition.
d. Contractor shall replace any damaged Cmis at no charge to Customers, provided, however, Contractor shall be entitled to charge Customers for the replacement of any Cart that has been damaged by a Customer, ordinary wear and tear excepted, with such charges being subject to City's approval.
e. Contractor shall replace any lost or stolen Carts within three business days, at no cost to Customers. Contractor shall only be obligated to replace a lost or stolen Cart for a Customer at no charge two times. For each replacement of a lost or stolen Cmi thereafter, Contractor shall be entitled to charge Customers provided the rates charged by Contractor shall be subject to City's approval, and shall not exceed Contractor's actual costs. f. Contractor shall at Customer's request annually refurbish, replace, and steam clean as necessary all Bins and Rolloff Boxes at no charge to Customers; provided, however, City may require the steam cleaning or replacement ofBins utilized at restaurants, bars and grocery stores/markets more frequently if it determines such action is needed to protect public health and safety. Additional steam cleaning shall be provided to any Customers who request it at a charge not to exceed the maximum rate set fOlih in Exhibit A hereto, or alternatively Contractor shall provide a replacement Bin/RolloffBox to Customers at no charge. g. Contractor shall remove any graffiti that appears on its Containers within twenty-four (24) hours after becoming aware of it. 384/062266-0187
2120575.1 a06/02/1 I -13-
231
h. All Bins and Rolloff Boxes shall be kept freshly painted in a uniform fashion and shall be identified with Contractor's name and phone number in letters not less than three inches high on its exterior so as to be visible when the Container is placed for use. i. At a Customer's request, Contractor shall provide Bins with locking lids and locks and may charge rates to Customers for locking Bins which do not exceed the maximum rates set fOlih on Exhibit A.
(8) Missed Pick-ups
In case of a missed pick-up called in by a Customer, Contractor shall Collect Solid Waste and Recyclable Material from such Customer no later than the next day of the pick-up week following the date of the call. Records of the addresses of all missed pick-ups shall be maintained by Contractor, and shall be repOlied to City upon request. If Contractor demonstrates to the satisfaction ofthe City Manager a pattern of ongoing late "set-outs" by a given Customer, missed pick-ups resulting from late set-outs by that Customer shall not be counted as missed pick-ups in evaluating Contractor's performance hereunder. The Customer service phone system required by Section 23 hereof is intended, among other things, to serve as a "hotline" for Customers to call in the event Solid Waste placed for Collection is not Collected by Contractor and to facilitate having such Solid Waste Collected as soon as reasonably possible, and in no event later than as required by the provisions hereof.
(9) Record of Non-collection
As more fully set forth herein, Contractor shall Collect all Solid Waste placed for Collection by Customers, excepting materials that are specifically called out herein (such as hazardous materials.) Whenever Contractor determines not to Collect any Solid Waste deposited for Collection, Contractor shall leave a tag at least 2" by 6" in size, indicating the reason for Contractor's refusal to do so. This information may be either handwritten or left by means of a check system (i.e., checking off boxes on a preprinted form). The tag shall provide Contractor's business name and its local telephone number and shall be securely fastened to the Container or the atiicle refused. Contractor shall maintain a record of all such taggings at its place of business. Such record shall contain the date of such notice, street address, reason for noncollection, and a summary of any communications between Contractor and the Customer involved. Such notice shall be retained so that it may be conveniently inspected by representatives of City upon request.
(10) Waste Required to be Collected
Contractor shall only be required to collect Solid Waste and Recyclable Material which has been placed, kept, or accumulated and completely enclosed in Carts or Bins, and is only required to do so with respect to those Calis or Bins that are placed at curbside or other designated pick-up locations pre-approved by City and Contractor prior to Contractor's normal Collection time.
384/062266-0187
2120575, I a06/02/l1 -14-
232
B. Residential Solid Waste Handling Service.
(1) Single Family Dwellings - Automated Collection.

Contractor shall provide each Customer at a Single Family Dwelling with the Customer's choice of either one (1) thirty-five (35) gallon or one (1) sixty-seven (67) gallon Cali designated for the Collection of mixed Solid Waste (a "Refuse Cart"). Contractor shall Collect all Solid Waste placed out for Collection in Refuse Calis by each Customer at a Single Family Dwelling not less than once per week using an automated Collection system at rates that do not exceed the maximum rates set fOlih in Exhibit A. Upon request from any Customer at a Single Family Dwelling, Contractor shall provide such Customer with one or more additional Refuse Carts, and shall Collect all Solid Waste placed for Collection in such additional Refuse Carts at rates which do not exceed the maximum rates set forth in Exhibit A. Wherever feasible, Customers shall be directed by Contractor to place Calis for Collection either in the street gutter, against the curb, in front of their Premises, or adjacent to their Premises in the alley or easement in the rear of their Premises. If a Customer and Contractor cannot agree upon a Collection location, or if City determines the selected location may cause safety or other concerns, City may make the final determination ofthe Collection location.
(2) Walk-Out Service.

Contractor shall provide eligible Single Family Dwelling or Multi-Family Dwelling Customers with "walk-out service" as set fOlih in this paragraph at no additional charge. This service shall require Contractor to use its own forces to bring a Customer's Carts from a Customer's backyard, side yard, or such other location at which the Customer's Containers are regularly stored, to Contractor's Collection Vehicle; and, after disposal of the contents thereof, returning said Containers to the location where they are regularly stored. To be eligible for this service a Customer shall have a DMV issued disabled person placard/license plates, or be a person who provides a physician's letter as described herein. Each Customer desiring walk-out service shall cause a letter to be submitted to Contractor from a physician confirming the Customer is unable to move his/her Calis to the curb, and that to the best of his knowledge there is no other capable persons living in the Customer's household to provide this service.

Contractor may require each eligible Customer to provide a new letter from a physician on an annual basis in order to maintain eligibility for walk-out service. In order to receive walk-out service, a Customer will be required to sign a standardized agreement, the terms of which shall be subject to City's approval, that authorizes entry onto the Customer's property and holds Contractor harmless for any liability (including specifically liability related to pets escaping) associated with Contractor providing the service. Any dispute regarding a Customer's eligibility for walk-out service shall be resolved by the City Manager. Single Family Dwelling or MultiFamily Dwelling Customers who do not qualify for "free" walk-out service may contract with Contractor for such services at rates not exceeding those set fOlih on the attached Exhibit A. (3) Use ofBins for Single Family Dwelling Customers Prohibited.

Contractor may not supply Single Family Dwelling Customers with Bins in place of Calis, or otherwise use Bins for Single Family Dwelling Solid Waste Handling Services, 384/062266-0187
2120575.1 "06/02111 -15-
233
excepting, however, Temporary BinJRolloff Services provided to Single .family Dwelling Customers in the manner authorized herein.
(4) Recycling Program for Single Family Dwellings.

Contractor shall provide each Customer at a Single Family Dwelling to whom it provides a Refuse Cali with the Customer's choice of either one (1) thirty-five (35) gallon or one (1) sixty-seven (67) gallon Cali designated for the Collection of Recyclables (a "Recycling Cart") at no additional charge. Upon request from any Customer at a Single Family Dwelling, Contractor shall provide such Customer with one (1) additional Recycling Cart at no additional charge.

Contractor shall Collect Recyclable Material placed in Recycling Calis for Collection from each Customer at a Single Family Dwelling on the same day as such Customer's Refuse Cart is Collected, utilizing an automated Collection process. Customers shall be directed to place Recycling Calis in the same location for Collection as Refuse Calis. At a minimum the following materials shall be allowed to be deposited by Customers for Collection in Recycling Calis: aluminum cans; glass jars and bottles; bi-metal, and tin cans; empty aerosol containers; polyethylene terephthalate plastic ("PET"); high density polyethylene plastic ("HDPE"); plastics types 3 -7; plastic bags, shrink wrap, plastic toys and tools, and other plastic materials (ifreadily identifiable as being recyclable); juice boxes and milk cartons (aseptic packaging, Tetra Pak© and waxed cardboard); coat hangers and metal foil; newspaper; mixed paper (e.g., ledger, computer, junk mail, magazines, paperback books cereal boxes, envelopes, paper shopping bags and non-metallic wrapping paper); corrugated cardboard; and telephone books. (5) Green Waste Program for Single Family Dwellings.

Contractor shall provide each Customer at a Single Family Dwelling to whom it provides a Refuse Cart with the Customer's choice of either one (1) thitiy-five (35) gallon or one (1) sixty-seven (67) gallon Cali designated for the Collection of commingled green waste (a "Green Waste Cali") at no additional charge. Upon request from any Customer at a Single Family Dwelling, Contractor shall provide such Customer with one (1) additional Green Waste Cali at no additional charge. Contractor shall Collect green waste placed in Green Waste Calis for Collection from each Customer on the same day as such Customers' Refuse Cali is Collected, using an automated collection process. Customers shall be directed to place Green Waste Calis in the same location for Collection as Refuse Calis. Contractor shall identify, to City's satisfaction, neighborhoods in the City where Green Waste Calis will not be provided due to lack of Green Waste generation. Customers in those neighborhoods shall receive only Solid Waste and Recycling Calis and the maximum rates applicable to such Customers shall not exceed the rates designated as "Set of 2 Carts" as set fOlih on the attached Exhibit A. (6) Use ofBins for Multi-Family Residential Customers.

Contractor shall supply Customers at Multi-Family Dwellings with Bins for Solid Waste Handling Services ("Refuse Bins"). Contractor shall provide a number of Bins reasonably needed for Solid Waste Collection at each Premises at which Multi-Family Dwellings exist bearing in mind both the number of Dwellings Units and space limitations. Contractor shall endeavor to provide at least one (1) Refuse Bin for every ten (10) Dwelling Units located at each Multi-Family Dwelling. The size of Refuse Bins utilized, and the frequency of their Collection, 384/062266-0187
2120575.1 a06/02/11 -16-
234
shall be mutually agreed upon by Contractor and its Customers, except that Collection shall occur not less than one time per week and City shall have the right to impose minimum requirements for Bin sizes and more frequent Collection should it determine such action is needed to protect public health, safety and welfare. In the event of any dispute as to the adequacy of the number of Bins at any given Multi-Family Dwelling, the City Manager shall have the ability to approve the number of Refuse Bins used at such location. Contractor may charge rates for each Bin provided to a Multi-Family Dwelling that do not exceed the maximum rates set forth in Exhibit A. All Solid Waste Collected by Contractor from Refuse Bins at MultiFamily Dwellings shall be taken for processing to a properly permitted, large volume transfer processing facility, meeting the requirements ofthe County Agreement, and all such Solid Waste shall be processed (not merely transferred to a landfill) in order to recover Recyclable Materials. (7) Bulky Items.
a. Residential Bulky Item Service.

Contractor shall provide unlimited Bulky Item Collection services to all Customers at Residential Premises on an on-call basis for a rate not exceeding the maximum flat rate set fOlih in Exhibit A. Each Customer at a Residential Premises shall be entitled to up to four (4) Bulky Item pick-ups per year at no cost ("No Charge Pick-ups"). One No Charge Pick-up will be deemed to have occurred each time Contractor Collects up to four (4) Bulky Items at the same time. Thus, for instance, if Contractor is required to Collect between five and eight Bulky Items at the same time, two No Charge Pick-ups shall be deemed to have occurred. On-call Bulky Item Collection service, whether for a fee or a No Charge Pick-up, shall be responded to within a reasonable time but not longer than seven (7) days from the date of the Customer's call for service, or the next scheduled Collection day excluding Saturdays, whichever shall occur sooner.

Contractor shall produce, keep current, and provide public information specifically outlining the Bulky Item pick-up service.
b. Bulky Item Diversion.

Bulky Items Collected pursuant to this Agreement may not be disposed of in a landfill until the following hierarchy of diversion effOlis has been followed by Contractor:
(i) Reuse as is (if energy efficient);
(ii) Disassemble for reuse or Recycling;
(iii) Recycle, Transformation, other means of diversion; and (iv) Disposal.
c. Proper Handling ofBulky Items.

Contractor shall properly handle all materials required to be collected as Bulky Items, including specifically items that require special handling pursuant to the Environmental Laws, such as materials that constitute "universal waste" and/or "e-waste." 384/062266-0187
2120575.1 a06/02/11 -17-
235
(8) Household Special Wastes.
a. Program Description.

A general description of the Household Special Waste Collection service to be provided is set fOlih in the accompanying Exhibit C. If and to the degree any discrepancies, ambiguities, or conflicts exist between Exhibit C and the terms of this Agreement, the terms of this Agreement shall control.
b. Household Special Waste Collection Service.

Each Customer at a Residential Premises shall be entitled to up to four (4) Collections per calendar year, on an on-call basis, of Household Special Wastes at no cost ("No Charge Collections"). On-call Household Special Waste Collection service shall be responded to within a reasonable time but not longer than seven (7) days from the date of the Customer's call for service, or the next scheduled Collection day excluding Saturdays, whichever shall occur sooner.

To the degree Household Special Waste Collection service described in this Section is duplicative in any way of the Bulky Item Collection services set fOlih herein (i.e., such as with regards to certain electronic waste which is meets the definitions of both Bulky Waste and Household Universal Waste), the services set forth in this Section are intended to be in addition to such Bulky Item service, and hence Customers shall be entitled to both including the No Charge aspects of both. Contractor shall produce, keep current, and provide public information specifically outlining its Household Special Waste Collection service. c. Implementation of Household Pharmaceutical Waste Container Collection.

As of the Effective Date, Contractor does not have the requisite regulatory approvals to Collect Household Pharmaceutical Waste. Contractor shall diligently pursue such approvals and implement a program at the earliest time possible to provide for the Collection ofthis waste in a manner consistent with the terms set forth herein, as well as the program concepts set fOlih in Exhibit C. Once necessary approvals have been secured, Contractor shall provide a detailed program description to City, and the final program to be implemented shall be subject to the approval ofthe City Manager.
(9) Additional Collection Services.

Contractor may provide special pickup procedures or additional services in addition to the services described herein for Customers who request such services at rates agreed upon by Contractor and such Customers. All such rates must be reasonable as determined by the City Manager, and shall be subject to City Manager approval
C. Commercial Solid Waste Handling Services.
(1) Commercial Bins and RolloffBoxes.
a. Contractor shall provide all Customers at Commercial Premises ("Commercial Customers") with at least one Bin and/or Rolloff Box for Collection of mixed 384/062266-0187
2120575,1 a06/02/11 -18-
236
Solid Waste, and shall Collect all Solid Waste placed therein for Collection not less than once pet week, at rates that do not exceed the maximum rates set f01ih in Exhibit A. Contractor shall provide additional Containers to Customers and shall provide additional Collections upon request, or as may be required by City's Municipal Code, health and safety requirements, or by the City Manager, and may charge rates for such services which do not exceed the maximum rates set f01ih in Exhibit A. Bins and Rolloff Boxes shall be Collected by Contractor from the location upon each Customer's property designated for their storage, and replaced to that location with gates and/or doors secured, as applicable, after Collection is completed, unless different arrangements are agreed upon by the Customer and Contractor. It is the paliies intent that all Rolloff Boxes (including compactors) provided to Commercial Customers for service pursuant to this section will be taken for processing to a properly permitted, large volume transfer processing facility, meeting the requirements of the County Agreement, and all such Solid Waste shall be processed (not merely transferred to a landfill) in order to recover Recyclable Materials. Nevertheless, the parties recognize that the content of waste generated by certain Commercial Customers may not be appropriate for processing, and Contractor shall have the discretion in such cases to transport Rolloff Boxes to the County Landfill, with any dispute regarding such decision being resolved by the City Manager's in his discretion. Contractor may charge Commercial Customers utilizing Rolloff Boxes an amount not exceeding the "contractor component" set f01ih in Exhibit A for such services plus an amount equal to the actual tonnage disposed of multiplied by the processing component or disposal component as applicable, depending upon whether the Solid Waste in question is taken to a processing facility or landfilled.
(2) Commercial Calis.

As an alternative to the requirements of the preceding Section, Contractor shall offer Collection in Refuse and Recycling Calis to Commercial Customers that do not have space for, or do not generate enough Solid Waste to require the use of Bins for Collection. Rates for Customers receiving such service shall not exceed the maximum rates set forth on Exhibit A.

All Commercial Customers that are provided Refuse Carts shall also be provided a Recycling Cart, and such Customers shall have a choice between a set of sixty seven (67) gallon Calis or a set of ninety (90) gallon Carts. Upon request from any Commercial Customer using Carts rather than Bins for Collection service, Contractor shall provide such Customer with one or more additional Refuse or Recycling Calis at rates which do not exceed the maximum rates set forth in Exhibit A. If Contractor and a Commercial Customer have a disagreement as to whether use of Calis rather than Bins for Collection service is appropriate, or if City determines Collection for such a Customer using Carts causes health and safety or other concerns, City shall make the final determination as to whether Collection utilizing Calis may occur. (3) Commercial Bulky Item Service.

Contractor shall provide unlimited Bulky Item Collection services to Commercial Customers on an on-call basis. Contractor may charge rates for such services which shall not exceed the maximum rates set f01ih in the attached Exhibit A. Bulky Item Collection service calls shall be responded to within a reasonable time but not longer than seven (7) days from the date of the Customer's call for service. Contractor shall produce, keep current, and provide public information specifically outlining the Bulky Item pick-up service. Bulky Items Collected 384/062266-0187
2120575.1 a06/02/11 -19-
237
pursuant to this Section are subject to the diversion and handling requirements set forth in Sections 6.B(7)(b) and 6.B(7)(c).
(4) Additional Collection Services.

Contractor may provide special pickup procedures or additional services, in addition to the services described herein for Customers who request such services at rates agreed upon by Contractor and such Customers. All such rates must be reasonable as determined by the City Manager, and shall be subject to City Manager approval
(5) Commercial Recycling.

Contractor shall conduct an annual waste audit of all Commercial Customers utilizing Bins for Collection service to determine their Recyclable Material content. The purpose of such audits is to determine whether individual Customers are discarding Recyclable Material of a quantity that is sufficient to warrant such Customer's patiicipation in recycling programs. The process used to conduct this waste audit shall be shared with City, to ensure compliance and acceptance, and shall be subject to City Manager approval. Upon completion of such audit, and upon approval by City, those Customers whose waste stream is found to contain a significant Recyclable Material content shall be provided a Recycling Cart or Bin ("Recycling Bin") for Recyclable Material. Contractor shall Collect all Recyclable Material placed in Recycling Carts or Bins at least once per week, and more often as may be agreed upon with its Commercial Customers. Contractor may charge Commercial Customers who are provided with Recycling Carts or Recycling Bins rates for such service not exceeding the maximum rates set forth in the attached Exhibit A. In addition, any Commercial Customer who so desires, may be provided with Rolloff Boxes for clean, source separated loads of greenwaste, dili, concrete, asphalt, wood, metal, and paper/cardboard, with the maximum rates set fOlih in the following section related to Temporary Services being applicable to such services.

D. Temporary Services.

Contractor shall provide Temporary Services on an on call basis to any Customer requesting such service, pursuant to the following conditions:
(1) Temporary Bins: Three (3) cubic yard Bins that meet the standards set forth in the accompanying Exhibit B may be used for Temporary Service; provided, however, Bins used for such service shall not remain at the same address for a period that exceeds four consecutive weeks. Contractor shall charge Customers a flat rate for Temporary Services utilizing Bins, which rate shall not exceed that set out in Exhibit A, and may charge Customers such rate in advance of providing Temporary Service. No contractor or processing component is associated with said flat rate and Customers may be required to pay the full flat rate charged by Contractor without regard to actual processing fees incurred. (2) Temporary RolloffBoxes:
a. Temporarily placed Rolloff Boxes, and specifically either fOliy (40) cubic yard drop off boxes ("Drop Off Boxes") or ten (10) cubic yard lowboy containers ("Lowboy Containers"), that meet the standards ofthe attached Exhibit B may be used for larger 384/062266-0187
2120575.1 a06/02/11 -20-
238
projects such as construction and demolition or the collection of dirt and concrete; provided, however, Rolloff Boxes used for such service shall not be placed in any public rights-of-way so as to create a safety hazard or so as to block any rights-of-way to a degree that it is not reasonably usable; moreover, they shall not remain in any public rights-of-way for a period exceeding two consecutive weeks.
b. It is the patiies intent that all Rolloff Boxes used in connection with Temporary Service shall be delivered by Contractor for processing to a properly permitted facility, which complies with the County Agreement, that is specifically designed to process for recycling purposes, as appropriate: construction and demolition waste; dirt, concrete or asphalt; or, greenwaste. Neveliheless, the patiies recognize that the content of waste generated by certain Customers may not be appropriate for processing, and Contractor shall have the discretion in such cases to transpOli Rolloff Boxes to the County Landfill, with any dispute regarding such decision being resolved by the City Manager's in his discretion. c. Contractor may charge Customers utilizing Rolloff Boxes for Temporary Service an amount not exceeding the "contractor component" set forth in Exhibit A for such services plus an amount equal to the actual tonnage disposed of multiplied by the processing component or disposal component as applicable, depending upon whether the Solid Waste in question is taken to a processing facility or landfilled. To encourage recycling a discounted maximum rate applicable to the processing component for clean, source separated 40 cubic yard Drop Off Box loads of greenwaste is set fOlih on Exhibit A; and, fmiher, a maximum flat rate is set forth on Exhibit A as the "contractor component" (to which no processing or disposal component applies) for both clean, source separated 10 cubic yard Lowboy Container loads of dili, concrete, asphalt, and clean, source separated 40 cubic yard Drop Off Box loads of wood, metal, and paper/cardboard. For purposes ofthis section, a "clean, source separated load" shall mean a Solid Waste separated into a separate container at its point of generation that contains not less than 90% ofthe designated materials.
d. Contractor may charge Customers in advance of providing Temporary Services utilizing RolloffBoxes, by charging an amount not exceeding the contractor component set forth in Exhibit A for such services and a deposit calculated by multiplying the actual tipping fee Contractor will incur by 11 tons (i.e., on the Effective Date $50.53/ton x 11 tons for processed Solid Waste or $29.95/ton for landfilled Solid Waste.) After Contractor disposes of Solid Waste collected in temporarily placed Rolloff Boxes, it shall refund Customers utilizing such Temporary Service all amounts exceeding the actual per ton tipping fee incurred by Contractor. If the Rolloff Box is filled in excess of 11 tons by a Customer, Contractor may bill for and collect from such Customer any actual tipping fee Contractor incurs in excess of the above noted deposit.
(3) Placement of Temporary Bins and RolloffBoxes.

The placement of Temporary Bins and Rolloff Boxes in the public right-of-way, and maximum duration of such placement, shall be in accordance with the Municipal Code. In the event of any conflict between this Agreement and the Municipal Code, the Municipal Code shall govern.
384/062266-0187
2120575.1 306/02/11 -21-
239
E. Recycling Obligations and Public Education Program.
(l) Minimum Requirements for Recyclable Materials.

Contractor shall utilize a truck dedicated for the purpose of Collecting green waste from Customers, such that green waste which has been separated prior to Collection, once Collected, is not commingled with other Solid Waste (including Recyclable Material). Similarly, Contractor shall utilize a truck dedicated for the purpose of Collecting Recyclable Materials, such that Recyclable Material Collected in Recycling Cmis, once Collected, is not commingled with other Solid Waste (including green waste). All material Collected by Contractor in Recycling Carts pursuant to this Agreement shall be delivered to a properly permitted facility for recycling and reuse purposes. All green waste separated prior to Collection and thereafter Collected by Contractor pursuant to this Agreement (including specifically materials Collected in Green Waste Calis or Customer provided Containers as well as Holiday Trees) shall be delivered to a properly permitted facility for recycling, mulching, composting, or alternative uses for which diversion credit is provided as may be approved by the Board. (2) Extent of Applicable Franchise Rights.

Nothing in this Agreement shall be construed as giving Contractor the right to Collect Recyclable Material which has not been discarded and placed for Collection by Contractor in the location designated for that purpose.
(3) AB 939 Obligations, Guarantee, and Indemnification. a. Warranties and Representations.

Contractor wan-ants and represents that it is aware of and familiar with City's Source Reduction and Recycling Element (the "SRRE"), that it is familiar with City's waste stream, and that it has the ability to and will provide sufficient programs and services to ensure City will meet or exceed the diversion requirements (including, without limitation, amounts of Solid Waste to be divelied, time frames for diversion, and any other requirements) set forth in AB 939, and all amendments thereto, and that it shall do so without imposing any costs or fees other than those set forth on the attached Exhibit A (including if new programs are implemented which are not called out herein).
b. Mutual Cooperation.

City and Contractor shall reasonably cooperate in good faith with all effOlis by each other to meet City's diversion and other compliance requirements. imposed by AB 939. In this regard, City's obligations shall include, without limitation, making such petitions and applications as may be reasonably requested by Contractor for time extensions in meeting diversion goals, or other exceptions from the terms of AB 939.
c. Waste Reduction and Program Implementation.

Contractor shall implement the programs identified in the Source Reduction and Recycling Element (SRRE) and Household Hazardous Wastes Element (HHWE) of the City's 384/062266-0187
2120575.1 a06/02/11 -22-
240
General Plan immediately upon the Effective Date hereof, and will implement any programs required by any amendments or modifications thereto. In meeting this obligation Contractor shall be mindful of and comply with all requirements of the County Agreement, including specifically, without limitation, the requirements thereof generally relating to (i) the delivery of Solid Waste only to transfer stations that provide quarterly certifications of Solid Waste delivered, and (ii) the disposal of residual Solid Waste that remains after recycling processes have been completed. Contractor shall provide City with monthly, qUaIierly and annual written repOlis in a form adequate to meet City's AB 939 related filing and repOliing requirements to the Board and to the County of Orange throughout the Term of this Agreement wherein City's performance under the above programs shall be set fOlih in detail. 'Contractor shall be responsible to prepare, or assist City with the preparation of, all reports and other information as may be required by any agency, including specifically, the State of California, in order to comply with AB 939.
d. Public Education Fund.

Contractor shall continually maintain a "Public Education Fund" for the sole purpose of supplying public education and information about source reduction, recycling, and composting.

The Fund shall be comprised sums to be set aside by Contractor from its charges to Residential Customers for collection services, in an amount equaling $.09 per month per Residential Customer. The public Education Fund shall be held in an interest bearing bank account, separate from other funds utilized by Contractor, and shall be made available for audit review upon request of the City. All interest earned in this fund shall remain as part of the fund. Contractor may only use sums in this Fund for the purposes set forth in this provision, unless other uses are approved in writing by the City Manager. Any amounts in this fund upon expiration ofthe Telm or earlier termination ofthis Agreement shall be delivered to the City. e. Guarantee and Indemnification.

Contractor warrants and guaranties that it will carry out its obligations under this Agreement such that: (i) both it and City will at all times be in compliance with the requirements of AB 939, and (ii) the City will meet or exceed the diversion requirements (including, without limitation, amounts of Solid Waste to be diverted, time frames for diversion, and any other requirements) set fOlih in AB 939, and all amendments thereto. In this regard Contractor agrees that it will, in addition to any other requirement contained herein, at its sole cost and expense:
(i) to the extent legally permitted, defend, with counsel approved by City, indemnify, and hold harmless City and City's officials, employees, and agents from and against all fines and/or penalties and other liabilities which may be imposed by the Board or any other regulatory agency if: (l) Contractor fails or refuses to timely provide information relating to its operations which is required pursuant to this Agreement or AB 939 and such failure or refusal prevents or delays City from submitting reports required by AB 939 in a timely manner.; or (2) the source reduction and recycling goals, diversion goals, program implementation requirements, or any other requirements of AB 939 are not met with respect to the waste stream Collected under this Agreement;
384/062266-0187
2120575.1 a06/02/11
(ii) assist City in responding to inquires from the Board; -23-
241
(iii) assist City in preparing for, and pmiicipating in, the Board's biannual review of City's SRRE pursuant to Public Resources Code Section 41825; (iv) assist City in applying for any extension, including under Public Resources Code Section 41820, ifso directed by City; (v) assist City in any hearing conducted by the Board relating to City's compliance with AB 939;
(vi) assist City with the development of and implement a public awareness and education program that is consistent with the City's SRRE and Household Hazardous Waste Element, as well as any related requirements of AB 939; (vii) provide City with recycling, source reduction, and other AB 939 related technical assistance;
(viii) defend, with counsel acceptable to City, City and City's officials, employees, and agents against the imposition of fines and/or penalties, or any other liabilities, issued by the Board pursuant to AB 939;
(ix) be responsible for and pay, any fees, penalties or other costs imposed against the City by the Bom'd, and indemnify and hold harmless City from and against any fines, penalties, or other liabilities, levied against it for violation of AB 939's diversion requirements, or violation of any other provision of AB 939, arising from or in any way related to Contractor's performance ofits obligations under this Agreement. (4) Waste Generation/Characterization Studies.

Contractor acknowledges that City must perform Solid Waste generation and Disposal characterization studies periodically to comply with the requirements of AB 939. Contractor agrees to participate and cooperate with City and its agents and to accomplish studies and data collection and prepare repOlis, as needed and directed by City, to determine weights and volumes of Solid Waste Collected and characterize Solid Waste generated, disposed, transformed, divelied or otherwise handled/processed to satisfy the requirements of AB 939. (5) Implementation of Additional Diversion Services.

In the event City does not meet the current diversion goal of 50% imposed by AB 939 with respect to all waste generated in City, City may direct Contractor to perform additional services (including the implementation of new diversion programs) or modify the manner in which it performs existing services, and Contractor agrees to do so at no additional charge. Pilot programs and innovative services which may entail new Collection methods, and use of new or alternative waste processing and disposal technologies are included among the kinds of changes which City may direct. In the event that the State increases the minimum diversion goal to greater than the current 50% goal imposed by AB 939, City may direct Contractor to perform pilot programs, at Contractor's expense, to provide additional services or implement new diversion programs. City and Contractor shall negotiate rates for any new permanent programs or services needed, after the conclusion ofthe pilot programs, to meet increased minimum diversion goals. 384/062266-0187
2120575.1 a06/02/11 -24-
242
F. Additional Services.

As pmi of the consideration for entering this Agreement, Contractor shall provide the following additional services at no charge, and Contractor shall not be entitled to adjust the Maximum Rates set fOlih in Exhibit A attached hereto to offset costs incurred in providing any ofthe following services:
(l) Contractor shall provide Bins to any qualified or cetiified non-profit group, e.g. Boy Scouts, Boys' and Girls' Clubs, churches, Emih Clubs, etc. The rates charged by Contractor to such groups shall not exceed the actual transportation costs incurred by Contractor in dropping off and picking up the Bins; and, Contractor shall impose no such charge for this service unless the non-profit group in question receives a monetary payment from recycling any materials collected in the Bins and such proceeds exceed Contractor's actual transportation costs.

Contractor shall appropriately dispose of or divert for recycling pursuant to the terms hereof any Solid Waste or Recyclable Material collected in Bins it provides pursuant to this paragraph, and shall pay non-profit organizations the prevailing market rate for any Recyclable Material collected in Bins provided by Contractor pursuant to this paragraph. (2) Contractor shall, free of charge, assist and cooperate with City in organizing City cleanup days. Contractor shall provide annually a total of up to fOliy Bins at no charge to City for organized cleanup days or otherwise, at least twenty (20) of which shall be not less than 36 cubic yard Bins. City shall pay all tipping fees associated with such Bins, and Contractor shall pay all other costs, including without limitation labor and transpOliation costs. (3) Contractor shall, free of charge, clean out any overflowing Bins or Bin enclosures within the Franchise Area within twenty-four (24) hours of notification by City.

Contractor shall work with the City Manager in identifying continual problems in Customer Bins or Bin enclosures. Contractor shall create a specific work order in response to each call received from City departments and shall provide City with a annual "Summary of clean out Item Work Orders Completed." Said summary shall include, but not be limited to the date, time, hours spent, and type of items collected.
(4) Contractor shall respond to calls from City's Maintenance and Code Enforcement Divisions and from authorized representatives of the Orange County Sheriffs Department and Orange County Fire Authority ("OCFA") to dispose of Bulky Items and other Solid Waste as a result of illegal or unauthorized dumping occurring within the City Limits, and shall provide Solid Waste handling services in connection with such Solid Waste. Contractor shall respond to up to twenty (20) such calls each month, and provide Solid Waste handling services in connection therewith, free of charge. Contractor may charge City for Solid Waste handling services associated with calls in excess of the above noted twenty (20) per month at rates not exceeding the maximum rates set forth in the attached Exhibit A relating to Residential Bulky Item collection service, as such maximum rates may be adjusted from time to time pursuant to the terms hereof. Contractor shall create a specific work order in response to each call and/or written request received from City depmiments and Sheriffs Depmiment and OCFA representatives and shall provide City with a qumierly summary thereof. Said summary shall 384/062266-0 \87
2\20575.\ a06/02/1\ -25-
243
include but not be limited to the date, time, hours spent, type ofitems collected, and what, if any, charge was incurred by City.
(5) Contractor shall assist persons designated by City (whether City employees or private individuals) who are responsible to coordinate special events or events in large venues (such as concelis or sporting events) in the implementation of recycling programs.

Contactor shall be responsible to prepare and submit to City a "waste reduction and recycling plan" prior to such events, and within 30 days following each such event shall submit a "waste characterization report" listing the amount of each material collected for disposal and recycling at the event.
(6) Contractor shall, free of charge, pickup all Holiday trees on the first two regularly scheduled pickup days for each Customer after Christmas Day. The trees shall be divelied from the landfill if possible, either by deposit at a composting facility or grinding operation.
(7) Contractor shall, free of charge, supply City with a total of ten (10) Emihquake/Catastrophe Preparedness Containers (not including contents). Each Emihquake/ Catastrophe Preparedness Container shall be a fully enclosed storage container, at least 30 cubic yards in volume, weather resistant and lockable. The location and contents of each Emihquake/Catastrophic Preparedness Container shall be approved by City before distribution.

Additionally, free of charge, and upon request by City, Contractor shall provide transpOli trucks to move, service, and/or exchange Earthquake/Catastrophe Preparedness Containers. (8) Contractor shall provide Bins and Containers, in quantities requested by City, as well as Solid Waste handling, including specifically collection of Solid Waste and Recyclable Material, for seven (7) special events per year, selected by City, i.e., parades, carnivals, run/walk races, etc., at no charge to City, the event organizer, or otherwise. (9) Contractor shall, free of charge, collect, transport and process the City's street sweeping debris.
(10) Contractor shall provide, free of charge, enforcement of the City's solid waste container Ordinance which provides certain requirements on the timing and duration Containers may be left on the street for Collection, as more fully set fOlih and described in the accompanying Exhibit D.

G. Special Services.

Contractor may provide special pickup procedures or services in addition to the services described herein for Customers who request or require such services at reasonable rates established by Contractor, which rates are subject to approval by the City Manager. Contractor shall notify the City Manager of any such services prior to such time as they are provided in order to allow the City an opportunity to conduct necessary inspections, review the proposed rate, and impose appropriate regulations.
384/062266-0187
2120575.1 a06102/1i -26-
244

7. MINIMUM STANDARDS FOR COLLECTION VEHICLES
A. General.

Contractor shall provide vehicles for the Collection of Solid Waste ("Collection Vehicles") that are sufficient in number and capacity to efficiently perform the work required by this Agreement in strict accordance with its terms. Contractor is expressly obligated to provide such Collection Vehicles and routes as are required to meet the service standards set forth herein.

Contractor shall have available on Collection days sufficient back-up vehicles for each type of Collection Vehicle used to respond to complaints and emergencies. Upon request by City, Contractor shall provide City with copies of all repOlis relating to its California Highway Patrol's Bi-annual Inspection of Terminal (so called "BIT Inspection RepOlis").

B. Air Quality/Fuel Requirements.

Contractor's Collection Vehicles shall comply with all rules and regulations of the South Coast Air Quality Management District, the Air Resource Board, and any other regulatory body that may be in effect during the term ofthis Agreement, as well as other Federal, State and local laws and regulations that may be enacted during the term of this Agreement. Contractor's Collection Vehicles shall meet or exceed such air quality standards as may be adopted by the forgoing regulatory bodies during the Term.

C. Specific Requirements.

Each Collection Vehicle utilized by Contractor in the performance of this Agreement shall meet the following minimum standards:
(l) Each Collection Vehicle shall be registered with the California Department of Motor Vehicles.
(2) Each Collection Vehicle shall be inspected regularly by Contractor to ensure it meets the requirements of the California Vehicle Code and the California Highway Patrol. Contractor shall provide copies of its Biannual Inspection of Terminal ("BIT") inspection reports and shall make available all records related to its vehicles, including Contractor's maintenance records, to City upon request by the City Manager. (3) Each Collection Vehicle shall be equipped with devices capable of covering every open section of the vehicle in which Solid Waste may be placed and, while operating upon the public rights-of-way, shall be covered so as to prevent any Solid Waste from falling or being blown or otherwise dislodged from the vehicle. (4) Each Collection Vehicle shall be continuously maintained so as to both:
(1) meet the highest industry standards with regards to efforts to prevent liquid from leaking and to the degree possible ensure each Collection Vehicle is "watertight" and "leak-proof' and, (2) at all times comply with the provisions of all laws and regulations including the Vehicle Code and any applicable NPDES permit, with regard to materials leaking from Collection Vehicles.

Contractor shall be responsible to promptly clean any spillage or Solid Waste that leaks or otherwise escapes the vehicle.
384/062266-0187
2120575.1 a06/02/11 -27-
245
(5) Each Collection Vehicle shall be painted periodically, which shall include all necessary body work, and shall be regularly cleaned, so that such vehicles do not become unsightly, as determined by the City Manager;. Each vehicle shall be painted with Contractor's colors and identifying information as required herein.
(6) Contractor's name, local or toll free telephone number, and a vehicle number shall be visibly printed or painted in letters not less than three (3) inches in height on both sides of each Collection Vehicle.
(7) Each Collection Vehicle shall be maintained in a clean and sanitary condition both inside and out and shall be washed at least once every seven (7) calendar days and steam cleaned on a regular basis.
(8) Each Collection Vehicle shall carry a broom, shovel, and operable fire extinguisher, and shall be equipped with a communication device sufficient to allow the driver to communicate directly with Contractor's dispatcher and/or main office. (9) Each Collection Vehicle shall be kept in good repair and working order, and shall be equipped with appropriate safety equipment, including any new safety related technologies that become standard in the waste industry, and at a minimum shall have a video monitor based back-up system, or its equivalent. Contractor shall keep a sufficient supply of replacement parts and equipment on hand to ensure adequate vehicle maintenance and timely and continuous performance ofthe services contemplated by this Agreement. (10) Contractor shall inspect each Collection Vehicle daily to ensure that all equipment is operating properly. Collection Vehicles which are not operating properly shall be removed from service until repaired and operating properly. Contractor shall perform all scheduled maintenance functions upon Collection Vehicles in accordance with the manufacturer's specifications and schedule. Contractor shall repair, or arrange for the repair of, all of its vehicles and equipment for which repairs are needed because of accident, breakdown or any other cause so as to maintain all equipment in a safe and operable condition. Contractor shall keep accurate records of all Collection Vehicle maintenance and repair, recorded according to date and mileage, including signed verifications that repairs and maintenance has been properly performed, and shall make such records available to City upon request. (11) No Collection Vehicle shall be utilized if it is lealdng brake, hydraulic, or other fluids, and Contractor shall clean up any leaks or spills from their vehicles per the NPDES permit in effect at the time. No fluids shall be washed into storm drains at any time. All NPDES dry-cleaning measures shall be complied with. All Collection Vehicles must be equipped with absorbent for such cleanup effOlis.
(12) Upon request, Contractor shall furnish City a written inventory of all equipment, including Collection Vehicles, used in providing service pursuant to this Agreement.

This inventory shall list all equipment by manufacturer, ID number, date of acquisition, type and capacity.
(13) Contractor shall utilize Collection Vehicles of a size, weight, nature, and type so as to not be unreasonably intrusive on the community with respect to noise, emissions, 384/062266-0187
2120575.1 a06/02/11 -28-
246
maneuverability, safety, and other factors and to avoid or minimize pavement damage and wear and tear ofthe street or adjacent properties, as approved by the City Manager. (14) Contractor shall not load Collection Vehicles in excess of the manufacturer's recommendations or limitations imposed by state or local laws or regulations.

Noise levels of equipment used for Collection shall not exceed 75db (seventy-five decibels) when measured at a distance of twenty-five (25) feet from the vehicle, five (5) feet from the ground.
(15) Any Collection Vehicle that the City Manager deems inappropriate for use in City for any reason (including its appearance) shall be removed from service in City, until such time as (and if) the City Manager determines his concern regarding said Collection Vehicle are corrected.

D. Costs of Operation and Damages.

Contractor shall be responsible for any costs incurred in connection with ensuring all Collection Vehicles comply with all applicable laws and regulations, including without limitation any such laws and regulations that may now exist or hereinafter be adopted relating to noise, fuels, emission standards, or weight limits.

E. City Inspection.

City may cause or require any Collection Vehicle used in performance of this Agreement to be inspected and tested at any time and in such manner as may be appropriate to determine that the vehicle is being maintained in compliance with the provisions ofthis Agreement.

F. Correction of Defects and Removal of Vehicles from Use within City.

Contractor agrees to immediately remove from service, and replace or repair, to the City's satisfaction, any Collection Vehicle which City determines to be of unsightly appearance, unsafe, unsanitary, leaking, out of compliance with any law or regulation or this Agreement, or otherwise in an unsatisfactory operating condition; and any such vehicle shall not be returned to service until the City Manager gives his written consent for its return..

8. CONTRACTOR'S PERSONNEL
A. Uniforms.

Each of Contractor's Collection employees shall wear a clean uniform bearing the Contractor's name.

B. Identification of Employees.

Contractor shall provide identification badges, cards or similar devices, for all of its employees, and all authorized subcontractors, who may make personal contact with residents of the City. City may require Contractor to notify Customers yearly of the form of said identification.
384/062266-0187
2120575.1 a06/02111 -29-
247
C. Employee List.

Contractor shall provide a list of current employees and authorized subcontractors to City upon request.

D. Driver's License.

Each employee operating a vehicle as pati of his duties shall, at all times, carry a valid operator's license for the type of vehicle he or she is operating. All employees who may have contact with Customers in the course of performing their duties shall be able to speak English.

E. Screening of Field Employees.

Contractor shall make reasonable effOlis to determine if its employees working in the field (i.e., drivers of Collection Vehicles, and employees otherwise involved in Collection at Customer Premises) have been convicted of a felony, and shall identify any such employees known to it to City. City shall have the ability to require that any employee so identified by Contractor not work in the field within City.

F. Discontinued Use of Unsatisfactory Employees.

No employee shall continue to have any involvement whatsoever with regard to any work in anyway relating to or arising from this Agreement if City gives notice to Contractor that such employee is determined by City to be discourteous, disorderly, inefficient, or otherwise objectionable (provided the term "otherwise objectionable" shall not permit City to "ban" an employee for reasons that violate public policy; and, further, City shall give a reason for requesting the "ban" of any employee from engaging in work related to this Agreement).

G. Training and Legal Compliance.

Contractor shall provide operating and safety training that meet mInImUm OSHA standards for all personnel, and shall comply with all laws and regulations applicable to its employees and personnel.

H. Hiring of Undocumented Workers Prohibited.

Contractor shall not hire or employ any person to perform work within the City of San Clemente or allow any person to perform work required under this Agreement unless such person is a United States citizen or is properly documented and legally entitled to be employed within the United States, and Contractor shall verify, through E-Verify, or any other similar method approved by the Federal Government, that all persons employed by Contractor to perform work required under this Agreement are legally entitled to be employed within the United States.

9. CONTRACTOR'S CONSIDERATION
In addition to any other consideration set forth herein, as pati of its consideration for the extension ofthe Original Agreement, and for the exclusive right to provide Solid Waste handling 384/062266-0187
2120575.1 a06/02/11 -30-
248
services and Temporary Bin/Rolloff Services within the Franchise Area, Contractor shall provide the following:

A. Franchise Fee.

Contractor shall pay to City, in lawful money of the United States, a franchise fee equal to five percent (5%) of Contractor's annual Gross Receipts during the entire Term of this Agreement (the "Franchise Fee.") Said Franchise Fee shall be due to City in four (4) quarterly payments, which shall be due on or before the fifteenth (l5th) day after the end of each calendar qumier (i.e., on or before April 15, July 15, October 15, and January 15). The amount of each such payment shall be equal to five percent (5%) of Contractor's Gross Receipts in the preceding calendar qUalier. Franchise Fee payments shall be accompanied by a statement celiified by an officer of Contractor attesting to the accuracy ofthe amounts paid, and setting forth the basis for . their calculation in a manner acceptable to City. The Franchise Fee due hereunder shall apply to Gross Receipts of Contractor collected after the expiratioll of the Term hereof relating to Contractor's performance during the Term hereof.

B. Services at City Facilities
Contractor shall provide Collection services at all Premises owned and/or operated by the City (including without limitation all public buildings, parks, beaches, and bus stops), at no cost to City and shall provide Containers for such service as City deems appropriate for each of its various Premises (i.e., Carts, Bins or Rolloff Boxes). Such services shall be provided for all existing City facilities, as they may be expanded from time to time, as well as all new or additional facilities acquired/constructed during the Term hereof. Contractor shall carry out its obligations pursuant to this provision in a manner, and to a degree, approved by the City Manager
C. Public Refuse Fund.
(l) Contractor shall create and continually fund a "Public Refuse Fund" for the purpose of funding refuse related projects and programs as may be created and implemented by City.
(2) Contractor shall make payments into the Public Refuse Fund on or before the 15th day of each month during the Term hereof. Monthly payments shall be in a sum equal to $9.49 multiplied by the number of Refuse Bin's used for weekly Solid Waste handling services at Commercial Premises or Multi-Family Dwellings in the preceding month (i.e., this would not include Recycling Bins or Bins used for Temporary Services.) The Public Refuse Fund shall be held in an interest bearing ballle account at an institution of City's choosing, and shall not be accessible to Contractor. All interest earned in the Public Refuse Fund shall remain as part ofthe Fund. City may withdraw funds from the Public Refuse Fund for the purpose of funding refuse related projects and programs, or for such other purposes as it may deem appropriate (including without limitation any purposes for which General Fund expenditures could occur). 384/062266-0187
2 J20575. J a06/02/1 J -31-
249

10. ADDITIONAL CHARGES AND INTEREST FOR LATE PAYMENTS
In the event Contractor fails to timely make any ofthe payments to City that are provided for in this Agreement, Contractor shall pay to City, as additional consideration both of the following amounts:

A. A sum of money equal to five percent (5%) of the amount due. This amount is required in order to defray those additional expenses and costs incurred by City by reason of the delinquent payment including, but not limited to, the cost of administering, accounting for, and collecting said delinquent payment and the cost to City of postponing services and projects necessitated by the delay in receiving the revenue.

B. A sum of money equal to the lesser of (i) two percent (2%) ofthe amount due per month or (ii) interest on the delinquent sum (excluding the late payment charge referred to in clause A) at the maximum legal rate, with said sum to be applied as interest for loss of use ofthe money due.

11. FAITHFUL PERFORMANCE
A. Contemporaneously with execution of this Agreement, as security for Contractor's faithful performance of all obligations ofthis Agreement, Contractor shall provide a surety mechanism (the "Surety") as more fully defined below in the amount of One Hundred Thousand Dollars ($100,000.00). The Surety may be comprised of either a performance bond or an irrevocable letter of credit, or a combination of both. If a letter of credit utilized to satisfy some or all of the Surety requirement shall be drawn upon a financial institution with an office within one hundred (l00) miles of City, and otherwise in a form acceptable to the City Attorney.

The performance bond, if any, shall be issued by a duly authorized corporate surety company authorized to do business in California, and in a from acceptable to the City Attorney. The cost of the Surety shall be the sole responsibility of Contractor. The Surety shall be released within thitiy (30) days after both (i) the expiration ofthe Term of this Agreement; and (ii) Contractor's satisfactory performance of all obligations hereunder.

B. In the event Contractor shall for any reason become unable to, or fail in any way to, perform as required by this Agreement, City may declare a pOliion or all of the Surety, as may be necessary to recompense and make whole the City, forfeited to the City. Upon partial or full forfeiture of the Surety, Contractor shall restore the Surety to its original amount within thiliy (30) days of the City's notice to do so. Failure to restore the Surety to its full amount within thirty (30) days shall be a material breach ofthis Agreement.

C. Notwithstanding any provision hereof to the contrary, thitiy (30) days following City providing Contractor with written notice of its failure to pay City any amount owing under this Agreement, either the letter of credit or performance bond comprising the Surety may be utilized by City for purposes including, but not limited to:
(1) Payment ofsums due under the terms of this Agreement which Contractor has failed to timely pay to City, including specifically liquidated damages. 384/062266-0187
2120575.1 a06/02111 -32-
250
(2) Reimbursement of costs borne by City to correct violations of this Agreement not cOlTected by Contractor.

D. City may draw upon the entire letter of credit (if any) utilized to meet Contractor's obligations pertaining to the Surety, and convert it to a cash deposit, if Contractor fails to cause the letter of credit to be extended or replaced with another satisfactory letter of credit no later than sixty (60) days prior to its expiration.

12. INSURANCE COVERAGE
Contractor shall procure and maintain during the entire Term ofthis Agreement insurance against claims for death or injuries to persons, damages to property, and economic loss which may arise from or in connection with Contractor' performance hereunder or the actions or inactions of Contractor's officers, agents, representative, employees, or subcontractors in connection with Contractor's performance. The insurance requirements hereunder in no way limit Contractor's various indemnification obligations set forth herein.

A. Scope of Insurance Coverage.

Contractor shall procure and maintain during the entire Term of this Agreement, the following insurance coverages:
(1) Worker's Compensation Insurance.

Worker's Compensation insurance to cover Contractor's employees as required by the California Labor Code. Prior to City execution of this Agreement, but not later than ten (10) business days following Council approval of the contract, unless a waiver of this timing requirement is granted by City, Contractor shall file with City a signed Worker's Compensation Insurance Certification in substantially the following form:
"I am aware of, and will comply with Divisions 4 and 5 of the California Labor Code by securing, paying for, and maintaining in full force and effect for the duration of this Agreement, complete worker's compensation insurance, and shall furnish a celiificate of insurance. to the City before commencement of work under this Agreement."
(2) Comprehensive General Liability Insurance.

Comprehensive General Liability insurance covering death and personal injury and propeliy damage liability, automobile liability (both owned and leased) contractual liability, and independent contractor's liability, with minimum aggregate coverage of Ten Million ($10,000,000) and combined minimum liability limits of Three Million ($3,000,000) per occurrence, and a combined single limit of Three Million ($3,000,000) for automobile liability. 384/062266-0187
2120575.1 a06/02/11
a. Each such Policy of Insurance shall:
-33-
251
(i) Be issued by a company that holds a cunent policy holder's alphabetic and financial size category rating of not less than A VIII, according to the current Best's Key Rating Guide or a company of equal financial stability that is approved by City's Human Resources/Risk Manager for all coverages except surety. (ii) Cover the operations of Contractor pursuant to the terms of the Agreement.
(iii) Be written on an occurrence and not a claims-made basis. b. The general liability and automobile liability policies required hereunder shall contain, or be endorsed to contain, the following provisions:
(i) City, its employees, agents, contractors, officials, volunteers, and officers are to be covered as named insureds as respects: liability arising out of activities performed by or on behalf of Contractor; products and completed operations of Contractor; premises owned, occupied, or used by Contractor; and automobiles owned, leased, hired or borrowed by Contractor. The coverage shall contain no special limitations on the scope of protection afforded to City or its officials, employees, agents, contractors, and volunteers. (ii) This policy shall be considered primary insurance as respects City, its officials, employees, agents, contractors and volunteers. Any insurance or self-insurance maintained by City and its officials, employees, agents, contractors, and volunteers shall be excess of Contractor's insurance and shall not contribute with it. (iii) Any failure to comply with reporting provisions of the policies shall not affect coverage provided to City or its officials, employees, agents, contractors, or volunteers.
(iv) Contractor's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability.
(v) Thhiy (30) days prior written notice by certified mail, return receipt requested, shall be given to City prior to any suspension, cancellation, reduction in scope or limits of coverage, or non-renewal ofthis policy, for any reason whatsoever, becoming effective. Such notice shall be sent to the City Clerk.

B. Environmental Pollution Control Insurance.

Contractor maintain either an endorsement to its general liability policy, or a separate policy of insurance covering environmental pollution and contamination, that specifically covers Contractor's activities in connection with the Household Special Waste Collection services provided hereunder, and naming the City as an additional insured. Said coverage shall be in the amounts set fOlih in the preceding sub-section A with regard to Contractor's general liability insurance coverage, and shall substantially comply with all other provisions set forth in the preceding sub-section A.
384/062266-0187
2120575.1 a06/02/11 -34-
252
C. Adjustments to Coverage.

The types of coverage, limits of coverage, and insurance companies shall be subject to review and approval by City's Human Resources Manager every year. City may require that the coverage types or amounts, or companies of insurance, be increased or changed at that time such that they are at least equal to the quality, types, and amounts of coverage provided by City's own liability insurance, or any self-insurance or risk sharing pool City may have or participate in.

D. Deductibles and Self-Insured Retention.

Any deductible or self-insured retention amount must be declared to and approved by City. At the option of City, Contractor shall either:
(1) have the insurer reduce or eliminate such deductible or self-insured retention as respects City, its officials, employees, agents, contractors, and volunteers; or (2) provide to City a bond or inevocable letter of credit in an amount and form acceptable to the City Manager to guarantee payment of losses and related investigations, claims administration, and defense expenses which would otherwise be paid from Contractor's deductible or SIR.

E. Verification of Coverage.

Contractor shall furnish City with celiificates of insurance and original endorsements effecting coverage required by this section prior to commencement of services provided hereunder. The celiificates and endorsements for each insurance policy are to be signed by a person authorized by that insurer to issue binding coverage on its behalf. The certificates and endorsements are to be on forms approved by City. All certificates, letters, and endorsements are to be received and approved by City before work commences. City reserves the right to require complete, celiified copies of all required insurance policies, at any time.

F. Subcontractors.

In the event City provides its written consent for the use of subcontractors, Contractor shall include any such permitted subcontractors as insured under its policies or shall furnish separate celiificates and endorsements for each subcontractor. All coverage for subcontractors shall be subject to all ofthe requirements stated herein.

G. Loss or Reduction in Insurance.

In the event that Contractor fails to retain or maintain insurance with the scope and amounts of coverage required hereunder, City shall have the right, but not the obligation to either terminate this Agreement, or to obtain insurance coverage as required herein on behalf of Contractor and utilize funds from either the Cash Deposit or Performance Bond to pay the cost of providing such coverage.
384/062266-0187
2120575.1 a06/02/l1 -35-
253

13. ASSIGNMENT, SUBLETTING, AND TRANSFER; REQUIREMENTS AND

LIMITATIONS
A. The franchise granted by this Agreement shall not be sold, hypothecated, sublet, assigned, or otherwise transferred, nor shall any of the rights or privileges herein be hypothecated, leased, assigned, sold, or otherwise transferred, either in whole or in pali, nor shall title thereto, either legal or equitable, or any right, interest, or propeliy therein, pass to or vest in any person, except Contractor, either by action or inaction of Contractor or by operation of law, (collectively referred to as an "Assignment") without the prior approval by the City Council of the City. Any such Assignment made without the approval by the City Council of the City shall be void and the attempted Assignment shall constitute a material breach of this Agreement, and shall give rise to City's right, but not obligation, to terminate this Agreement.

B. For purposes of this Section the term "Assigmnent" shall be given the broadest possible interpretation, and (without limiting the preceding subsection in any way) shall include, but not be limited to: (i) a sale, exchange or other transfer ofsubstantially all ofthe Contractor's assets dedicated to service under this Agreement to a third party; (ii) a sale, exchange or other transfer of any membership interest of Contractor to a third paliy; (iii) any dissolution, reorganization, consolidation, merger, re-capitalization, stock issuance or re-issuance, voting trust, pooling agreement, escrow arrangement, liquidation or other transaction which results in a change of ownership or control of Contractor or any Affiliate or any "parent entity" that owns or controls Contractor; (iv) any assigmnent by operation of law, including those resulting from mergers or acquisitions by or of Contractor of any of its Affiliates, insolvency or bankruptcy, making assignment for the benefit of creditors, writ of attachment for an execution being levied against this Agreement, appointment of a receiver taking possession of Contractor's property, or transfer occurring in the event of a probate proceeding; and (v) any combination ofthe foregoing (whether or not in related or contemporaneous transactions) which has the effect of any such transfer or change of ownership, or change of control of Contractor. Any "change in control" of Contractor shall specifically be treated as an Assignment of this Agreement. Change in control of Contractor shall include any actual sale, transfer, or acquisition of Contractor; Contractor's grant of a management contract to any person or entity which is applicable to any aspect of Contractor's performance pursuant to this Agreement; or transfer ofthe beneficial interest of the cumulative amount of thirty percent (30%) or more of Contractor's voting stock to a person, entity, or group of persons acting in concert who, as of the effective date hereof, own less than 30% ofsuch voting stock (except that a transfer ofstock in trust to immediate family members of persons currently holding stock in Contractor shall not be considered in determining if a change in control is occurring so long as Contractor notifies City ofsuch transfer, in writing, prior to its occurrence.)
C. Contractor acknowledges that this Agreement involves rendering a vital service to City's residents and businesses, and that City has selected Contractor to perform the services specified herein based on (1) Contractor's experience, skill and reputation for conducting its Solid Waste Handling Services in a safe, effective and responsible fashion, at all times in keeping with applicable Environmental Laws, regulations and best Solid Waste management practices, and (2) Contractor's financial resources to maintain the required equipment and to support its indemnity obligations to City under this Agreement. City has relied on each of these 384/062266-0187
2120575.1 a06/02111 -36-
254
factors, among others, in choosing Contractor to perform the services to be rendered by Contractor under this Agreement.

D. City may impose conditions for its approval of any Assignment ofthis Agreement including, but not limited, to conditions requiring acceptance of amendments to this Agreement and payment of a transfer fee to be determined in the sole discretion ofthe City Council.

E. City may transfer its rights and obligations set forth in this Agreement to a joint powers authority for the management of Solid Waste and Recyclable Material within any area that includes the Franchise Area.

14. FRANCHISE TRANSFER; FEES AND SECURITY
A. Any request for approval of a franchise assignment or transfer or change in control of Contractor shall be made by an application presented in a manner prescribed by the City Manager. The application shall include a non refundable deposit in an amount to be determined by the City Manager to be applied to a transfer fee in an amount to be set by a Resolution of the City Council. The precise transfer fee, and deposit therefore, shall be determined at such time during the course of processing the application as the City Manager deems appropriate, and no transfer shall be effective until the transfer fee has been paid in full.

B. These franchise transfer fees are in addition to and not in lieu of any franchise fees specified in this Agreement.

15. CITY'S REMEDIES; DEFAULT AND TERMINATION
A. Notice of Default.

If the City Manager determines that Contractor has defaulted in the performance of any obligation hereunder, or that Contractor's performance pursuant to this Agreement with respect to such matters has not been in conformity with reasonable industry standards which are obtained in similar cities in Southern California, the provisions ofthis Agreement, the requirements of the Municipal Code, the requirements of the Board, including, but not limited to, requirements for source reduction and recycling or any other applicable Federal, State, or local law or regulation, including but not limited to the laws governing transfer, storage, or disposal of special wastes, or hazardous wastes, the City Manager may provide written notice to Contractor of such default.

The City Manager may, in such written notice, set a reasonable time within which correction of such default shall be made. Unless a longer or shorter time is otherwise specified by the City Manager, a reasonable time for correction shall be thiliy (30) days from the date such written notice is given.

B. Failure to Cure.

If Contractor fails to correct, to the satisfaction of the City Manager, all deficiencies contained in the written notice thereof within the specified time, or ifit is not reasonably possible to correct such deficiencies within the specified time, and Contractor fails to commence to correct or remedy such deficiencies within the specified time and diligently effect such 384/062266-0187
2120575.1 a06/02/11 -37-
255
correction or remedy thereafter, then the City Manager may refer the matter to the City Council for review, or review the matter himself.

C. Review by City Manager.

If the City Manager reviews the matter and determines that Contractor has failed to properly or adequately cure any default set fOlih above, the City Manager, in the exercise of his discretion, may terminate this Agreement, or take such other action as he deems appropriate to pursue any remedy available to City. A decision or order of the City Manager shall be final and binding on Contractor unless Contractor files a "Notice of Appeal" with the City Clerk within five (5) business days of the date the notice of the City Manager's decision is given. The City Manager shall schedule any appeal for consideration by the City Council at the earliest feasible City Council Meeting following the date a Notice of Appeal is given to City.

D. City Council Review.

In the event an appeal of a decision of the City Manager is filed, or if the City Manager refers the matter to the City Council without rendering a decision, the City Council shall set the matter for consideration before the City Council as a regular agenda item. In reviewing the matter the City Council may consider any information repOlied by the City Manager regarding the deficiencies, and shall give Contractor, or its representatives and any other interested person, a reasonable opportunity to be heard. The Council shall determine whether Contractor has failed to properly or adequately perform as set fOlih above, and if so whether to terminate the Agreement, or to pursue any other remedy available to City.

E. Performance During Reviews.

Contractor's performance under this Agreement is not excused during any period of time when its performance is under review as set forth above, including at any time prior to a final decision as to whether such performance is deficient.

F. Termination without Right to Cure.

The above right of termination as a result of Contractor's failure to timely cure any deficiency is in addition to City's right to terminate this Agreement without affording Contractor an opportunity to cure in circumstances where Contractor is determined by City to have materially breached this Agreement. City shall thus be afforded the right to terminate this Agreement in the event of any material breach hereof by Contractor without affording Contractor the right to cure as a result of any action, inaction or circumstance which is a legally defined material breach, or is defined herein as a material breach, and/or under any of the following circumstances which are hereby specifically defined as material breaches:
(1) If Contractor practices, or attempts to practice, any fraud upon City. (2) If Contractor becomes insolvent, unable, or unwilling to pay its debts, or upon listing of an order for relief in favor ofContractor in a bankruptcy proceeding. 384/062266-0187
2120575.1 a06/02/11 -38-
256
(3) If Contractor willfully violates any orders or rulings of any regulatory body having jurisdiction over Contractor relative to this Agreement. So long as City's rights are not prejudiced during the pendency of any challenge to such orders or rulings by Contractor, Contractor may contest any such orders or rulings by appropriate proceedings conducted in good faith, in which case no material breach of this Agreement shall be deemed to have occurred until a final ruling has been rendered.
(4) If Contractor ceases to provide Solid Waste Handling Services, including Collection of Solid Waste and/or Recyclable Material, as required under this Agreement over all or any portion of the Franchise Area for a period of seven (7) days or more, for any reason not specified as a force majeure event hereunder.
(5) If Contractor fails to materially comply with any msurance or indemnification requirement set fOlih in this Agreement. (6) If City is required to pay any fine or penalty, which is not paid on its behalf by Contractor or which Contractor fails, refuses, neglects or is unable to payor indemnify City against, relating to any diversion or other requirement of AB 939. (7) If Contractor, or any management level employee of Contractor is convicted of a crime that the City Council determines, in its discretion, is material to a decision as to whether to permit Contractor continue to hold the rights granted by this Agreement (examples of which may include, but are not limited to, offenses related to its financial dealings with other public entities and/or offenses related to public corruption such as bribery, conflicts of interest, and/or vote selling.)

16. CONTRACTOR'S REMEDIES; ADMINISTRATIVE HEARING
A. Administrative Hearing.

Should Contractor contend that City is in breach of any aspect of this Agreement, it shall give notice to the City Manager requesting an administrative hearing on the allegation. The hearing shall occur as soon as reasonably possible, or on such date as mutually agreed by the parties, and shall be held before an impartial hearing officer to be determined by the City Manager. The hearing officer shall make an advisory ruling on Contractor's allegations, and suggest a remedy if a breach by City is determined to exist. The hearing officer's ruling and recommendations shall become final and binding ifthe parties so agree in writing within 30 days ofthe date notice ofthe decision is given to both parties. Otherwise, the hearing officer's ruling shall have no fuliher force or effect.

B. Other Remedies; Claims.

Contractor shall be entitled to all available remedies in law or equity for City's breach of this Agreement; provided, however, Contractor shall not file or otherwise commence any action against City, in law or equity, in any court, until after an administrative hearing as set forth above has been completed, and the above noted 30 day period to accept the hearing officer's decision has passed, or either City or Contractor has given timely written notice to the other that it will not accept the hearing officer's decision.
384/062266-0187
2120575.1 n06/02111 -39-
257
C. Actions for Damages.

As a prerequisite to the filing and maintenance of any action for damages by Contractor against City arising out of this Agreement, Contractor shall present a claim to City, as required by Government Code section 910 et seq., within 30 days ofthe date ofthe occurrence giving rise to the claim for damages.

17. CITY'S ADDITIONAL REMEDIES
In addition to any other remedies set f01ih herein, City shall be entitled to any or all ofthe following rights and remedies in the event of a breach ofthis Agreement by Contractor:

A. The right to use Contractor's equipment for the purpose of Collecting, transporting, and/or disposing of Solid Waste, including Recyclable Material, for a period not to exceed six (6) months. In the case of equipment not owned by Contractor, Contractor shall assign to City, to the extent Contractor is permitted to do so under the instruments pursuant to which Contractor possesses such equipment, the right to use and possess the equipment. If City exercises its rights under this Section, City shall pay to Contractor the reasonable rental value of the equipment for the period of City's possession thereof (although payment may, if appropriate, occur in the form of a setoff against damages otherwise owed by Contractor pursuant to the terms hereof);
B. The right to license others to perform the services otherwise to be performed by Contractor hereunder, or to perform such services itself; and C. The right to obtain damages and/or injunctive relief. Both parties recognize and agree that in the event of a breach of this Agreement by Contractor, City will suffer irreparable injury and incalculable damages sufficient to supp01i injunctive relief, to specifically enforce the provisions ofthis Agreement, and to enjoin the breach hereof.

18. RIGHTS OF CITY TO PERFORM DURING EMERGENCY
A. Provision of Service.

Should Contractor, for any reason whatsoever, refuse or be unable to provide Solid Waste Handling Services for a period of more than seventy-two (72) hours, and if as a result thereof, Solid Waste should accumulate in City to such an extent or in such a manner that the City Manager finds that such accumulation endangers or menaces the public health, safety, or welfare, City shall have the right, upon twenty-four (24) hours prior written notice to Contractor, during the period of such emergency, to temporarily take possession of any or all equipment and facilities of Contractor previously used in providing Collection, transp01iation, and disposal of Solid Waste and provide, through its own forces or otherwise, Solid Waste Handling Services which Contractor otherwise would be obligated to provide pursuant to this Agreement.

Contractor agrees that in such event it shall fully cooperate with City to affect such a transfer of possession for City's use.
384/062266-0187
2120575.1 a06/02111 -40-
258
B. Possession of Equipment.

Contractor agrees, that in the event of circumstances described in Section 18A above, City may take temporary possession of and use all of said equipment and facilities without paying Contractor any rental or other charge. Upon Contractor giving City notice that it is able to resume its normal responsibilities under this Agreement City shall either relinquish possession of all ofthe above mentioned propeliy to Contractor.

C. Exclusions from Right to Possession of Equipment without Compensation.

Specifically excluded from the circumstances in which City may possess and utilize Contractor's equipment without compensation are circumstances in which Contractor fails or refuses to provide'Solid Waste Handling Services hereunder for any reason which is not a force majeure event as defined herein. In such circumstances City's right to utilize and possess Contractor's equipment shall be subject to the provisions ofthe above Section 17.

19. PRIVACY
Contractor shall strictly observe and protect the privacy rights of Customers. Information identifying individual Customers or the composition or contents of a Customer's Solid Waste stream, or any of the billing information peliaining to any Customers, shall not be revealed to any person, governmental unit, private agency, or company, unless upon the authority of a cOUli of law, by statute, ordinance, or regulation of a governmental agency having jurisdiction, or upon valid authorization of the Customer. This provision shall not be construed to preclude Contractor from preparing, participating in, or assisting in the preparation of waste characterization studies or waste audits which may be required by AB 939 or this Agreement.

Contractor shall not market or distribute, outside the normal course of its business, mailing lists with the names and addresses of Customers. The rights afforded Customers pursuant to this Section shall be in addition to any other privacy right afforded Customers pursuant to federal or state law.

20. REPORTS AND ADVERSE INFORMATION
A. Annual Reports.

On or before June 30 of each year during the Term of this Agreement and within fifteen (15) days prior to the end ofthe Term, Contractor shall submit a written annual repmi, at its sole expense, in a form approved by City, which includes, but is not limited to, the following information: '
(1) A summary of the previous year's activities including, but not limited to, services begun or discontinued during the repmiing year, and the number of Customers broken down on a monthly basis;
(2) A summary of the total tons of Solid Waste Collected in City in the preceding year as well as a summary of the total tOllilage diverted from the State's landfill systems during that time frame;
384/062266-0187
2120575.1806/02/11 -41-
259
(3) Information and reports required by City to meet its repOliing obligations imposed by AB 939 and the regulations implementing AB 939, in a form and content approved by the City Manager;
(4) A revenue statement, certified by the chief financial officer of Contractor, setting forth Franchise Fees and other fees paid or deposited pursuant to the terms hereof, and the basis for the calculation thereof, including specifically a breakdown of sources of revenue included in Gross Receipts and the amount ofrevenue derived from each such source comprising Gross Receipts;
(5) A list of Contractor's officers and the members of its Board of Directors. (if any), as well as a list identifying all Persons holding a membership interest in Contractor; and (6) A list of stockholders or other equity investors holding five percent (5%) or more ofthe interest in Contractor.

B. Adverse Information.

Contractor shall provide City two copies of all repOlis and other material adversely affecting the Agreement, submitted by Contractor to the United States Environmental Protection Agency, the Board, the California Regional Water Quality Control Board, and any other federal, state, regional, or local regulatory agency. Copies shall be submitted to City simultaneously with Contractor's filing of such matters with said agencies. Contractor's routine conespondence to said agencies need not be automatically submitted to City, but shall be made available to City upon written request.
(1) Contractor shall submit to City copies of all pleadings, applications, notifications, communications, and documents of any kind submitted by Contractor to, as well as copies of all decisions, correspondence, and actions by, any federal, state, and local cOUlis, regulatory agencies, and other government bodies relating in any manner to Contractor's performance of services pursuant to this Agreement. To the degree authorized by law, any confidential data exempt from public disclosure shall be retained in confidence by City and its authorized agents and shall not be made available for public inspection. (2) Contractor shall submit to City such other information or repOlis in such forms and at such times as City may reasonably request or require. (3) All reports and records required under this or any other section shall be furnished at the sole expense of Contractor.
(4) A copy of each of Contractor's annual and other periodic financial reports and those of its parent, subsidiary, and affiliated corporations and other entities, as City requests, shall be submitted to City within thirty (30) days after giving notice to Contractor of such a request.
384/062266-0187
2120575.1 a06/02/l1 -42-
260
C. Tonnage RepOli.

No later than twenty (20) days after the end of each calendar quarter during the Term of this Agreement, Contractor shall submit to the City Manager qUalierly reports setting fOlih the amount of tonnage of Solid Waste collected from within the City Limits and disposed of pursuant to this Agreement for the previous quarter and setting forth the cumulative year-to-date total amount of tonnage of such Solid Waste. Said repOlis shall be based upon the tonnage receipts provided to Contractor by any Solid Waste Facility. Contractor shall, upon demand by City provide true and accurate copies of the tonnage receipts in order to enable City to verify Contractor's qUalierly reports.

D. Failure to Report.

The refusal, failure, or neglect of Contractor to file any of the repolis required, or the inclusion of any materially false or misleading statement or representation made knowingly by Contractor in such repOli shall be deemed a material breach of the Agreement, and shall subject Contractor to all remedies, legal or equitable, which are available to City under this Agreement or otherwise.

21. COMPENSATION
A. Contractor's Rates.

Contractor shall provide services to Customers pursuant to this Agreement at rates it sets, charges to, and collects from Customers, which rates shall not exceed those set fOlih in the attached Exhibit A, which sets out the maximum rates that may be charged by Contractor, as such maximum rates may be adjusted from time to time pursuant to the terms hereof. It is intended that the maximum rates set forth in Exhibit A will apply at the commencement of this Agreement but nevertheless may be increased or decreased based on the provisions herein addressing maximum rate adjustments. The maximum rates set fOIih in Exhibit A for Solid Waste handling services are inclusive of all services to be provided, including transportation, disposal, Container and Bin costs (including the cost of providing standard Bins with or without lids or wheels), and costs associated with moving Bins from standard enclosures such distance as is reasonably necessary to dump them (but not including costs associated with moving Bins beyond such distance in unusual circumstances or due to special requests by Customers), and no other charges shall be imposed by Contractor for such services unless approved by the City Manager.

B. Annual Producer Price Index Adjustments to Contractor Component and Processing Component.

Commencing on July 1, 2011, the "contractor component" and the "processing component" associated with any ofthe maximum rates set forth on Exhibit A shall be adjusted, 1 and such components of said rates shall be adjusted annually thereafter on July 1 during the Term hereof (the "Adjustment Dates"), by a percentage equal to the percentage change in the Notwithstanding any other provision herein to the contrary, maximum rates related to Rolloff Boxes shall not be adjusted until July 1,2012.
384/062266-0187
2120575.1 a06/02/11 -43-
261
Orange County area Producer Price Index ("PPI") for the twelve-month period commencing fifteen (15) months prior to the applicable Adjustment Date and ending three (3) months prior to the applicable Adjustment Date. Notwithstanding the above, no annual adjustment in which the forging items would otherwise increase shall occur if either: (a) the City Manager determines that Contractor did not fully comply with all terms of this Agreement in the 12 month period preceding the increase, including without limitation, provisions hereof relating to reporting, diversion, and Customer service standards; or (b) Contractor is delinquent in the payment of any Franchise Fee to the City. At least fifteen (15) days prior to charging Customers any rate increased due to an increase in the PPI as set forth herein, Contractor shall notify the City Manager of its intent to do so, and receive the City Manager's approval therefor, which approval shall not be withheld unless it conflicts with the provisions hereof.

C. Annual Adjustments to Disposal Component.

It is the intention of the parties that the "disposal component" associated with any of the maximum rates as set forth in Exhibit A shall be adjusted no more often than annually on each Adjustment Date such that they reflect each Customers pro-rata share of any increase or decrease in the actual landfill tipping fees incurred by Contractor for disposal of Solid Waste Collected pursuant to this Agreement. To arrive at an appropriate adjustment formula to satisfy this intent, the parties have agreed that the "Disposal Component Tonnage Basis" set forth in Exhibit A is a fair estimate of the amount of Solid Waste generated and ultimately disposed of by each applicable Customer and/or service type. The initial maximum rate associated with the disposal component for various services set fOlih in Exhibit A has been arrived at by multiplying the Disposal Component Tonnage Basis for each applicable Customer and/or service type by $29.95 which is the per ton tipping fee charged by the Orange County Landfill System (where as of the Effective Date Solid Waste must be delivered for disposal per the County Agreement). The Disposal Component TOllilage Basis is premised upon historical data of the actual tonnage of Solid Waste generated by each Customer type. The Parties may annually evaluate the actual disposal tonnage data related to each Customer type and, if approved by the City Manager, the Disposal Component Tonnage Basis may be adjusted upward or downward, as appropriate, effective upon any Adjustment Date. If upon any Adjustment Date a change becomes effective in the tipping fees charged to Contractor at the Orange County Landfill system, pursuant to the County Agreement, the disposal component associated with any of the maximum rates set forth in Exhibit A shall be adjusted as of the Adjustment Date by similarly multiplying the Disposal Component Tonnage Basis for each applicable Customer and/or service type by the per ton tipping fee then in effect. In the event an increase becomes effective in applicable tipping fees at a time other than an annual Adjustment Date, Contractor may request an adjustment to the maximum rates applicable to the Disposal Component set fOlih on Exhibit A pursuant to Section 21D hereof.

D. Discretionary Adjustments.

Contractor may request an .adjustment to the maximum rates set forth in Exhibit A at reasonable times for unusual changes in the cost of providing service under this Agreement, or as a result of changes in the cost for processing Solid Waste. For each request for an adjustment to the maximum rates brought pursuant to this Section Contractor shall prepare a schedule documenting the extraordinary costs. Such request shall be prepared in a form acceptable to City 384/062266-0187
2120575.1 a06/02/11 -44-
262
with support for assumptions made by Contractor in preparing the estimate. City shall review the Contractor's request and, in the City Council's sole judgment and absolute, unfettered discretion, make the final determination as to whether an adjustment to the maximum rates will be made, and, if an adjustment is permitted, the appropriate amount of the adjustment.

Notwithstanding, and without limiting the forgoing, it is anticipated that increases to the processing component will occur based upon changes to the PPI in a manner similar to that set forth and without City may consider increases or decreases in the Contractor's total revenues and total cost ofservices when reviewing an extraordinary rate adjustment request.

E. Resolution ofDisputes Regarding Rate Adjustments.

Any dispute regarding an adjustment to the maximum rates Contractor may charge, or the computation thereof, shall be decided by the City Manager. The rates in effect at the time such dispute is submitted to the City Manager shall remain in effect pending resolution of such dispute. The effective date of the a.djusted IIlaxi11111111 tate following the tesolutiort of arty sUch dispute, whether retroactive or prospective, shall be determined by the City Manager.

F. Billing and Payment.

Contractor shall provide itemized bills, distinctly showing charges for all classifications of services, including charges for late payments. Contractor acknowledges that it, and not Customers, is to pay a franchise fee to City as consideration for this Agreement. Accordingly, Contractor's bills shall not include separate itemization of a "franchise fee" or other similar designation. Billings may be made monthly or quarterly and in advance for Commercial and Multi-Family Customers utilizing 3 yard Bins for weekly Solid Waste handling service, and may be made qUaIierly in advance for residential Customers. Billings shall be made in arrears on a monthly or qUaIierly basis for Customers utilizing Rolloff Boxes or compactors for weekly Solid Waste handling services. Retroactive adjustments shall be made on the basis of addresses of premises added and the date added. Premises ordering service after the first of the month shall be charged on a prorated daily basis.

G. Delinquent Accounts.

Contractor may discontinue service to any Customer as set fOlih in this Section.

Customers who have not remitted required payments within thiliy (30) days after the date of billing shall be notified on forms approved by City. Said forms shall contain a statement that services may be discontinued fifteen (15) days from the date of notice if payment is not made before that time. Upon payment of delinquent fees in an amount not in excess of the amount specified in Exhibit A, Contractor shall resume collection on the next regularly scheduled collection day.

H. Refunds.

Contractor shall refund to each Customer, on a pro rata basis, any advance service payments made by such Customer for service not provided when service is discontinued by the Customer.
384/062266-0187
2120575.1 a06/02/11 -45-
263

1. Recyclable Material Revenue.

Subject to the provisions of this Agreement, Contractor shall have the right to retain any benefit, revenue, or profit resulting from its right to retain, dispose of, or use Recyclable Material which it collects, and any such revenue shall not be considered as part of the Gross Receipts hereunder to which the Franchise Fee applies.

1. Additional Charges.

Contractor shall include any additional charges as may be approved by the City Manager on the billings.

22. IDENTIFICATION OF CONTRACTOR
Contractor has agreed to use the name "CR&R Incorporated" to identify itself to the public as the specific organization that shall provide all of the services under this Agreement.

This name shall be used for all correspondence, billing statements, directory listings, references, signs, and vehicle, Container, and Bin identification.

23. PUBLIC ACCESS TO CONTRACTOR
A Office Hours.

Contractor's office hours shall be, at a minimum, from 8:00 AM. to 5:00 P.M. daily, and 8:00 AM. to 12:00 P.M. on Saturdays, on all collection days. A representative of Contractor shall be available during office hours for communication with the public at Contractor's principal office. During normal office hours Contractor shall maintain either a local or toll free telephone number for calls within the City Limits. Contractor shall also maintain a local or toll free after-hours telephone number for use during other than normal business hours. Contractor shall have a representative or answering service available at said after-hours telephone number during all hours other than normal office hours.

B. Service Complaints.

Contractor shall address and manage all complaints in the following manner:
(l) All Customer complaints shall be directed to Contractor. Contractor shall maintain records listing the date of Customer complaints, the Customer's name, address and telephone number, description and nature ofthe complaint or request, and when and what action was taken by Contractor to resolve the complaint. All such records shall be maintained and shall be available for inspection by City, as described in Section 27, below. Contractor shall prepare monthly summaries of Customer complaints. The summaries shall be available and delivered monthly to the City Manager. Contractor agrees to use its best effOlis to resolve all complaints by close of business of the second business (waste collection) day following the date on which such complaint is received. Service complaints may be investigated by the City Manager. 384/062266-0187
2120575.1 a06/02/11 -46-
264
C. Government Liaison Person.

Contractor shall designate a "government liaison person" who shall be responsible for working with the City Manager to resolve Customer complaints.

24. RESOLUTION OF DISPUTED CUSTOMER COMPLAINTS
A. Notification of Arbitration Procedure.

Contractor shall notify all Customers of the complaint arbitration procedures set forth in this Section at the time Customers apply for or are provided service, and on or before every June 30 thereafter, as well as in connection with any complaint not immediately resolved in a manner apparently satisfactory to the Customer.

B. Customer Requests for Review; Time Limits.

A Customer dissatisfied with Contractor's decision regarding a complaint may ask the City Manager to review the complaint. To obtain this review, the Customer must request City review within 30 days of receipt of Contractor's response to the Complaint, or within 45 days of submitting the complaint to Contractor, if Contractor has failed to respond to the complaint. City may extend the time for good cause.

C. Referral of Complaints to Contractor.

Before reviewing the complaint, the City Manager shall refer it to Contractor. If Contractor fails to cure the complaint within ten (l0) days, the City Manager shall review the Customer's complaint and determine if further action is warranted. The City Manager may request written statements from Contractor and the Customer and/or oral presentations.

D. City Manager Review of Complaints.

The City Manager shall determine ifthe Customer's complaint is justified, and ifso, what remedy, if any, shall be imposed.

E. Records of Complaints.

Contractor shall maintain all records relating to Customer complaints for a period not less than one (l) year.

25. FLOW CONTROL; COUNTY AGREEMENT.

A. City shall have the option to direct and/or approve which transformation facility, recycling facility, material recovery facility, landfill, or other facility Contractor shall use to retain, recycle, process, and dispose of Solid Waste and construction materials generated within the Franchise Area as required to enable City to comply with the County Agreement. Contractor expressly consents to City's ability to direct the location for disposal of Solid Waste hereunder, and waives any and all rights to challenge City's ability to do so, including without limitation any rights under the Commerce Clause ofthe United States Constitution. 384/062266-0187
2120575.1 a06/02/11 -47-
265
B. Contractor expressly acknowledges its awareness ofthe County Agreement which has been adopted and entered into by City. Moreover, Contractor acknowledges that it has had an oppOliunity to review the County Agreement, and is aware of the provisions thereof that require all Solid Waste collected in the City Limits to be disposed of in the Orange County landfill system. Contractor fUliher acknowledges that the County of Orange is an intended third party beneficiary of Contractor's obligations relating in any way to the disposal of Solid Waste pursuant to this Agreement and the County Agreement. Contractor hereby adopts as its obligations hereunder such provisions ofthe County Agreement that require action or inaction by it as City's Solid Waste franchisee. Contractor represents and warrants that it can and will perform its duties in connection with this Agreement in such a manner as to ensure that City does not breach the terms ofthe County Agreement as a result of Contractor's actions or inactions.

C. Upon the effective date of this Agreement City is deemed to have exercised its flow control option set fOlih hereinabove as to Solid Waste required to be delivered to the Orange County landfill system pursUant t6 the County Agl'eeIi1.ent, by virtue of the fact City has entered the County Agreement; and, further, City is deemed to have exercised such option in a manner consistent with its obligations pursuant to the County Agreement. At any time during the Term of this Agreement the City Manager may notify Contractor in writing that City no longer desires to exercise its flow control option hereunder. In the event City so notifies Contractor of its desire to cease exercising its flow control option, Contractor shall have the absolute discretion to utilize any transformation facility, recycling facility, material recovery facility, landfill, or other facility of its choosing to retain, recycle, process, and dispose of Solid Waste and constmction materials generated within the Franchise Area, provided such facility meets all other requirements ofthis Agreement.

26. INDEMNIFICATION
A. General.
(l) Contractor hereby agrees to and shall indemnify and hold harmless City, its elected and appointed boards, commissions, officers, employees, and agents (collectively the indemnities) from and against any and all loss, liability, penalty, forfeiture, claim, demand, action, proceeding or suit in law or equity of any and every kind and description including, but not limited to, injury to and death of any Person and damage to propeliy, or for contribution or indemnity claimed by third patiies) arising out of, resulting from, and/or in any way connected with this Agreement including: (l) the negligence or willful misconduct of Contractor, its officers, employees, agents, Companies and/or subcontractors in performing services under this Agreement; (2) the failure of Contractor, its officers, employees, agents, Companies and/or subcontractors to comply in all respects with the provisions ofthis Agreement (including without limitation Contractor's obligation to ensure City complies with the requirements of the County Agreement), applicable laws (including, without limitation, the Environmental Laws), ordinances and regulations, and/or applicable permits and licenses; (3) the acts of Contractor, its officers, employees, agents, Companies and/or subcontractors in performing services under this Agreement for which strict liability is imposed by law (including, without limitation, the Environmental Laws); and (4) any challenge to the award of, or any provisions of this Agreement (including any claim that the application of any provision hereof violates any. provision ofthe California Constitution). The foregoing indemnity and hold harmless provisions 384/062266-0187
2120575.1 a06/02111 -48-
266
shall apply regardless of whether such loss, liability, penalty, forfeiture, claim, demand, action, proceeding, suit, injury, death or damage is also caused in part by any of the indemnities negligence, but shall not extend to matters resulting from the indemnities sole negligence, or willful misconduct. Contractor fmiher agrees to and shall, upon demand of City, at Contractor's sole cost and expense, defend (with attorneys acceptable to City) City, its elected and appointed boards and commissions, officers, employees, and agents against any claims, actions, suits in law or equity or other proceedings, whether judicial, quasi-judicial or administrative in nature, arising or resulting from any ofthe aforementioned events, and to reimburse the City for any and all costs and expenses City incurs in providing any such defense, either before, during or after the time Contractor elects to provide such defense, including any and all costs incurred in overseeing any defense to be provided herein by Contractor. (2) Contractor, upon demand of the City, made by and through the City Attorney, shall protect City and appear in and defend the City and its elected officials, officers, employees and agents, in any claims or actions by third paities, whether judicial, adl11il1.isttative or otherwise, including, but not limited to disputes and litigation over the definitions of "Solid Waste" or "Recyclable Material," the scope of the rights granted herein, conflicts between the rights granted herein and rights asserted by other Persons, or the limits of City's authority with respect to the grant of licenses, or agreements, exclusive or otherwise, asseliing rights under the Dormant Commerce Clause or any other federal or state laws to provide Solid Waste Handling Services in the City.
(3) The provisions of this Section shall not terminate or expire, shall be given the broadest possible interpretation and shall survive the expiration or earlier termination of this Agreement.

B. Hazardous Substances Indemnification.
(1) Without regard to any insurance coverage or requirements, and without limiting the above general indemnification obligation in any way, Contractor specifically agrees to and shall, to the maximum extent permitted by law, defend (with counsel acceptable to City) reimburse, indemnify, and hold City and its past and present officers, council members, employees, consultants and agents (hereinafter "Indemnified Pmiies") harmless from and against any and all claims, actions, liabilities, damages, demands, judgments, losses, costs, liens, expenses, suits, actions, attorneys' fees, consultant fees, penalties and any and all other losses, damages, fees and expenses of whatever kind or nature ("Claims") (including but not limited to response costs, investigative costs, assessment costs, monitoring costs, treatment costs, cleanup costs, removal costs, remediation costs, and similar costs, damages and expenses) that arise out of or are alleged to arise out of or in any way relate to any action, inaction or omission of Contractor that:
a. results in any demand, claim, notice, order, or lawsuit, asseliing that any Indemnified Party is liable, responsible or in any way obligated to investigate, assess, monitor, study, test, treat, remove, remediate, or otherwise cleanup, any Hazardous Contaminant (as defined herein); or
384/062266-0187
2\20575.1 a06/0211\ -49-
267
b. relates to material collected, transpotied, recycled, processed, treated or disposed of by Contractor.
(2) Contractor's obligations pursuant to this Section shall apply, without limitation, to:
a. any Claims brought pursuant to or based on the provisions of the Environmental Laws, including without limitation the Comprehensive Environmental Response, Compensation and Liability Act ("CERCLA"), 42 U.S.C. § 9601 et seq., the Resource Conservation and Recovery Act ("RCRA"), 42 U.S.C. § 6901 et seq., the Carpenter-PresleyTanner Hazardous Substances Account Act (California Health & Safety Code Sections 25300 et seq.), the California Hazardous Waste Control Laws (California Health and Safety Code Sections 25100 et seq.), the California Potier-Cologne Act (California Water Code Section 13000 et seq.), and any and all amendments and regulations thereto, and any other Federal, State, regional or local environmental statutory or regulatory provision;
b. any Claims based on or arising out of or alleged to be arising out of the ownership, use, lease, sale, design, construction, maintenance or operation by Contractor of any facility;
c. any Claims based on or arising out of or alleged to be arising out of the marketing, sale, distribution, storage, transpotiation, disposal, processing or use of any materials recovered by Contractor;
d. any Claims based on or arising out of or alleged to be arising out of any breach of any express or implied warranty, representation or covenant arising out of or in connection with this Agreement.
(3) The foregoing indemnity and defense obligations shall apply irrespective ofthe negligence or willful misconduct of Contractor or any Affiliate of Contractor. (4) For purposes of this Agreement, the term "Hazardous Contaminant" shall mean any "hazardous material," as that term is defined under California Health & Safety Code Section 25501(0); any "hazardous substance," as that term is defined herein or under California Health & Safety Code Sections 25281(h), 25501(p), 25501.1 and under Title 42, Section 9601(14) of the United States Code; any "hazardous waste," as that term is defined herein and under Title 42, Section 6903(5) of the United States Code and under California Health & Safety Code Section 25501(q); any chemical which the Governor has identified as a chemical known to the State to cause cancer or reproductive toxicity pursuant to California Health & Safety Code Section 25249.8; any crude oil or refined or umefined petroleum product or any fraction or derivative thereof; and any asbestos or asbestos-containing material. The term "Hazardous Contaminant" shall also include any and all amendments to the above-referenced statutory and regulatory provisions made before or after the date of execution ofthis Agreement. (5) The provisions ofthis Section shall not terminate or expire, shall be given the broadest possible interpretation and shall survive the expiration or earlier termination of this Agreement.
384/062266-0187
2120575.1 a06/02/11 -50-
268

27. CONTRACTOR'S BOOKS AND RECORDS; AUDITS
A. Maintenance and Inspection ofRecords.

Contractor shall maintain all records relating to the services provided hereunder, including but not limited to Customer lists, billing records, accounts payable records, maps, AB 939 compliance records, records reflecting the number of refuse, recycling and green waste routes and route hours by service category (such as residential, multi-family, commercial, rolloff, and special services), records demonstrating facilities, equipment and personnel used to perform services, records reflecting the number of refuse, recycling and green waste containers in service by frequency of collection for each customer group (such as single family, multifamily, commercial, roll-off); records reflecting the number of roll-off box pulls, and such other documents and materials which reasonably relate to Contractor's compliance with the provisions of this Agreement (the "Records"), for the full Term of this Agreement, and an additional period thereafter of not less than three (3) yeats, at any langeI' petiad tequired by law. City shall have the right, upon five (5) business days advance notice, to inspect the Records. Such Records shall be made available to City at Contractor's regular place of business, but in no event outside the County of Orange.

B. CERCLA Defense Records.

City views the ability to defend against the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) and related litigation as a matter of great importance. For this reason, the City regards the ability to prove where Solid Waste Collected in the City was taken for Disposal, as well as where it was not taken, to be matters of concern.

Contractor shall maintain data retention and preservation systems which can establish where Solid Waste Collected in the City was landfilled (and therefore establish where it was not landfilled) for not less than five (5) years following the termination of this Agreement, and agrees to notify City's Risk Manager, City Clerk and City Attorney before destroying such records thereafter. At any time, including after the expiration of the Term hereof, Contractor shall provide copies of such records to City. The requirements of this Section shall survive the expiration ofthe Term ofthis Agreement.

28. TRANSITION OBLIGATIONS
At the end ofthe Term, or in the event this Agreement is terminated for cause prior to the end of the Term, Contractor shall cooperate fully with City and any subsequent solid waste enterprise it designates to assure a smooth transition of services. Contractor's cooperation shall include, but not be limited to, providing route lists, billing information and other operating records needed to service all premises covered by this Agreement. The failure to cooperate with City following termination shall be conclusively presumed to be grounds for specific performance ofthis covenant and/or other equitable relief necessary to enforce this covenant.

Contractor shall provide any new solid waste enterprise with all keys, security codes and remote controls used to access garages, gates and bin enclosures. Contractor shall be responsible for coordinating transfer immediately after its final collection activities, so as to not disrupt services. Contractor shall provide City with detailed route sheets containing service names and 384/062266-0187
2120575.1 a06/02/11 -51-
269
addresses, billing names and addresses, monthly rate and service levels (number and size of containers and pickup days) at least 90 days prior to the transition date, provide an updated list two weeks before the transition, and a final updated list with any changes the day before the transition. Contractor shall provide means of access to the new solid waste enterprise at least one full business day prior to its first day of collection, and within sufficient time so as to not impede in any way the new solid waste enterprise from easily servicing all containers.

29. GENERAL PROVISIONS
A. Force Majeure.

Contractor shall not be in default under this Agreement in the event that its ability to provide Solid Waste Handling Services or Temporary Services, in compliance with its obligation to do so hereunder, is temporarily interrupted or discontinued for any of the following reasons:
riots, wars, sabotage, civil disturbances, insurrections, explosion, natural disasters such as floods; earthquakes, landslides, fires, strikes, lockouts, and other labor disturbances or "other catastrophic events" which are beyond the reasonable control of Contractor. The term "other catastrophic events" does not include: (i) the financial inability of Contractor to perform; (ii) failure of Contractor to obtain any necessary permits or licenses from other governmental agencies; (iii) the failure to obtain the right, or the loss of the right, to use the facilities of any public utility where such failure is due in substantial pmi to the acts or omissions of Contractor.

In the event a labor disturbance interrupts Solid Waste handling and/or Temporary Services by Contractor as required pursuant to this Agreement, City may elect to exercise its rights under 18 ofthis Agreement for the duration ofsuch dispute.

B. Independent Contractor.

Contractor is an independent contractor and not an officer, agent, servant, or employee of City. Contractor is solely responsible for the acts and omissions of its officers, agents, employees, and subcontractors, if any. Nothing in this Agreement shall be construed as creating a pminership or joint venture between City and Contractor. Neither Contractor nor its officers, employees, agents, or subcontractors shall obtain any rights to retirement or other benefits which accrue to City employees.

C. Pavement Damage.

Contractor shall be responsible for the cost of repair of any extraordinary damage to the City's public streets, alleys, and parking lots resulting from negligence that can be directly attributable to providing Solid Waste Handling Services or Temporary Services.

D. Property Damage.

Any physical damage caused by the negligent or willful acts or omissions of employees, agents, or subcontractors of Contractor to private or public property shall be promptly repaired or replaced by Contractor.
384/062266-0187
2120575.1 a06102/11 -52-
270
E. Right of Entry.

Contractor shall not have the right, until Contractor receives permIssIOn from the property owner, to enter or drive on any private street, court, place, easement, or other private prope1iy for the purpose of providing Temporary Services and/or Solid Waste Handling Services pursuant to this Agreement.

F. City's Authorized Agent.

Notwithstanding anything contained herein to the contrary, and excepting amendments hereto and such actions set forth herein specifically calling for City Council action or approval, the City Manager is designated as the City's authorized agent to take any action with regard to any matter, or enforce any right, set f01ih herein requiring action by the City.

G. Law to Govern; Venue.

The laws ofthe State of California shall govern this Agreement. In the event of litigation between the parties, venue shall lie exclusively in the Superior Comi ofthe State of California, in the County of Orange.

H. Amendment.

No amendment of this Agreement shall be valid unless in writing duly executed by the pmiies.

1. Notices.

All notices required or permitted to be given under this Agreement shall be in writing and shall be personally delivered, or sent bye-mail or fax, or United States first class mail, postage prepaid, and addressed as follows:

To City:

To Contractor:

City of San Clemente
Attn: City Manager
100 Avenida Presidio
San Clemente, California 92672
Phone: (949) 361-8322
Fax: (949) 361-8283
CR&R Incorporated
P. O. Box 125
Stanton, California 90680
Phone: (877) 728-0446
Fax: (714) 890-6347
or to such other address as either pmiy may from time to time designate by notice to the other given in accordance with this Section. Notice shall be deemed given when personally served or delivered by email or fax, or three (3) business days from the date such notice is deposited in the United States mail.
384/062266-0187
2120575.1 a06102/11 -53-
271

1. Savings Clause.

If any non-material provision of this Agreement is for any reason held to be invalid or unenforceable, the invalidity or unenforceability of such provision shall not affect the validity and enforceability of any ofthe remaining provisions ofthis Agreement.

K. Exhibits Incorporated.

Exhibits A through D are attached to and incorporated in this Agreement by reference.

L. Joint Drafting.

This Agreement shall be interpreted as if it were drafted jointly by the parties to the Agreement.

M. Attorneys' Fees and Litigation Costs.

In the event either party brings any action or proceeding to enforce or interpret the terms or provisions of this Agreement, the prevailing party in any such action or proceeding shall be entitled to recover its reasonable attorneys' fees and other litigation costs and expenses, including without limitation expert witness fees, consultant fees and costs. Without limiting its scope in any way, this provision is expressly intended to, and shall, apply to fees and costs incurred in any.appeal.

N. Corporate Resolution.

Concurrent with the execution of this Agreement, Contractor shall provide City with a corporate resolution of its Board of Directors demonstrating the authority for the undersigned to enter and lawfully bind Contractor to this Agreement.

O. Integration.

This Agreement contains the entire integrated agreement and understanding concerning the subject matter herein and supersedes and replaces any prior negotiations, promises, proposals, and agreements between the Patties, whether written or oral. The Parties acknowledges this document has been executed with the consent and upon the advice of counsel.

Each of the Parties acknowledges that no party or agent or attorney of any other party has made any promise, representation, or warranty, express or implied, not contained in this Agreement, to induce the other party to execute this instrument.

P. Section Headings.

The section headings in this Agreement are for convenience ofreference only and are not intended to be used in the construction of this Agreement nor to alter or affect any of its prOVIswns.
384/062266-0187
2120575.1 a06/02/l1 -54-
272
Q. Compliance with Law.

In providing the services required under this Agreement, Contractor shall at all times, at its sole cost, comply with all applicable laws and regulations of the United States, the State of California, the provisions of the Municipal Code, and any federal, state, regional or local administrative and regulatory agencies, now in force and as they may be enacted, issued or amended.

CITY OF SAN CLEMENTE
ATTEST:

APPROVED AS TO FORM:
/S/ Patrick Munoz
City Attorney
CR&R Incorporated
•
BY~~~~-
Title: ~L-.... \oJ1L\) h.t Pt?~t,.)dtnt.
~aArJ.
384/062266-0187
2120575.1 a06/02/11 -55-
273
384/062266-0187
2120575, I a06/02/11

EXHIBIT A
Rate Schedule
274
EXHIBIT "A"

CITY OF SAN CLEMENTE

MAXIMUM RATES FOR SOLID WASTE HANDLING SERVICES
January 1, 2011
Contractor Disposal Component Total Maximum Rate
Residential Component Tonnage Basis Disposal Component (monthly) Set of 2 Carts: 35 Gallon $13.39 0.0727 $2.18 $15.57
Standard 3 Carts: 35 Gallon $14.18 0.0727 $2.18 $16.36
Set of 2 Carts: 67 Gallon $13.86 0.0770 $2.31 $16.17
Standard 3 Carts: 67 Gallon $14.66 0.0770 $2.31 $16.97
Additional 35 Gallon Refuse Cart $3.73 0.0123 $0.37 $4.10 Additional 67 Gallon Refuse Cart $3.91 0.0130 $0.39 $4.30 on ractor ota MaXimum Rate
Multi-Family Bin Service Component Processing Component (monthly) 3 Yard xl/week $113.91 $47.84 $161.75
3 Yard x2/week $121.15 $95.67 $216.82
3 Yard x3/week $149.33 $143.51 $292.84
3 Yard x4/week $177.18 $191.33 $368.52
3 Yard x5/week $205.02 $239.17 $444.20
3 Yard x6/week $232.89 $287.01 $519.90
4 Yard xl/week $151.88 $63;79 $215.67
4 Yard x2/week $160.26 $127.56 $287.82
4 Yard x3/week $199.12 $191.33 $390.45
4 Yard x4/week $236.25 $255.12 $491.37
4 Yard x5/week $273.38 $318.89 $592.27
4 Yard x6/week $310.58 $382.68 $693.26
Contractor Disposal Component Total Maximum Rate
Commercial Bin Service Component Tonnage Basis Disposal Component (monthly) 3 Yard xl/week $112.32 0.7936 $23.77 $136.88
3 Yard x2/week $117.97 1.5872 $47.54 $167.10
3 Yard x3/week $144.56 2.3808 $71.31 $218.25
3 Yard x4/week $170.82 3.1744 $95.08 $269.08
3 Yard x5/week $197.07 3.9680 $118.85 $319.89
3 Yard x6/week $223.35 4.7616 $142.62 $370.73
4 Yard xl/week $149.76 1.0581 $31.69 $182.51
4 Yard x2/week $156.02 2.1162 $63.39 $221.52
4 Yard x3/week $192.76 3.1743 $95.08 $291.01
4 Yard x4/week $227.77 4.2324 $126.77 $358.77
4 Yard x5/week $262.78 5.2905 $158.46 $426.53
4 Yard x6/week $297.86 6.3486 $190.16 $494.36
Contractor Disposal Component Total Maximum Rate
Commercial Cart Service Component Tonnage Basis Disposal Component (monthly) 67 Gallon Set $19.97 0.1546 $4.63 $24.60
90 Gallon Set $20.64 0.2300 $6.89 $27.53
Extra 67 Trash $9.24 0.1546 $4.63 $13.87
Extra 90 Trash $9.26 0.2300 $6.89 $16.15
Extra 67 Recycle $8.66 $8.66
Extra 90 Recycle $8.88 $8.88
o a MaXimum Ra e
Recycling Bins Accompanying Commercial Bin Service (monthly regular Bin) 3 Yard xl/week $60.95
3 Yard x2/week $97.52
3 Yard x3/week $146.28
3 Yard x4/week $195.04
3 Yard x5/week $243.80
3 Yard x6/week $292.56
4 Yard xl/week $79.23
4 Yard x2/week $126.78
4 Yard x3/week $190.16
4 Yard x4/week $253.55
4 Yard x5/week $316.93
4 Yard x6/week $380.32
275
EXHIBIT "A"

CITY OF SAN CLEMENTE

MAXIMUM RATES FOR SOLID WASTE HANDLING SERVICES
January 1, 2011
o a M~ximum Ra e
Recycling Carts Accompanying Commercial Bin Service (monthly) 67 or 90 Gallon xl/week $18.28
67 or 90 Gallon x2/week $36.57
67 or 90 Gallon x3/week $54.85
67 or 90 Gallon x4/week $73.14
67 or 90 Gallon x5/week $91.42
67 or 90 Gallon x6/week $109.71
ontractor Processing
Roll-off (Commercial and Temporary Service) Component Component Disposal Component Roll off Boxs (except compactors) $176.02 $50.53/ton $31.53/ton Compactors $206.64 $50.53/ton $31.53/ton
Clean, Source Separated loads:

Dirt/Asphalt/Concrete (10 yd Lowboy) $355.21 n/a n/a
Wood, Metal, Paper/Cardboard (40 yd Drop Off Box) $285.21 n/a n/a Greenwaste (40 yd Drop Off Box) $176.02 $28.42
Bulky Item Collection
Residential (up to 4 items)
Commercial (up to 4 items)
Eech Additional Commerical Bulky Item
Temorary Service:

Bins (weekly flat rate)
Maximum Rate
$14.37
$50.26
$19.41
Maximum Flat Rate
$93.45
Service Fees
Walk-Out Residental Service (in addition to monthly service rates) $22.28 Additional Residential Pick Up $17.77 per pick up
Bin Cleaning Fee (in excess of one time per year) $31.50 per bin Convert Standard Bin to Locking $25.00 one time charge
Bin Roll-out Charges (25' -SO') $9.89 per month
Bin Roll-out Charges (SO' - 75') $19.71 per month
Additional Bin Pickup $77.15
Bin Overflow Charge $40.45
Locking Bin monthly Charge (Recyle or Refuse Bin) $14.56 Delinguency Fees
Residential After 90 days 1.5% of balance, minimum balance of $15.00, charged quarterly Commercial After 60 days 1.5% of balance, minimum balance of $15.00, charged monthly Temporary Service After 60 days 1.5% of balance, minimum balance of $15.00, charged monthly Administrative Fees
Stop Service $15.00
Refund Processing Fee $1.50
Container Replacement Charge (per Container) $50.00
276
I I I'

EXHIBITB
Minimum Bin and Container Specifications
Carts:

1. Contractor shall only use Carts approved by the City Manager.

2. Carts used by Contractor shall contain a small inscription plainly labeled as follows:
a. Calis designated for Solid Waste shall be labeled: "REFUSE ONLY". b. Calis designated for Recyclable Material shall be labeled: "RECYCLABLES ONLY".
c. Calis designated for Green Waste Shall be labeled: "GREEN WASTE ONLY".

3. Each Cali provided for Residential or Commercial Solid Waste handling services shall have a capacity of ninety (90), sixty-seven (67) or thirty-five (35) gallons and be constructed of rigid, durable, and Recyclable Material with a minimum ten (10) year life expectancy warranted by the manufacturer. Contractor shall be responsible for the replacement of Cart wheels, lids, hinges, axles, and handles.

4. Each Cali provided for Residential Solid Waste handling services shall be labeled by Contractor in a manner approved by the City Manager to provide notice of City's rules and regulations pertaining to the time limitations applicable to placing Calis out for collection by Contractor.

Bins/RolloffBoxes:

1. Contractor shall only use Bins and Rolloff Boxes approved by the City Manager. The following generic types of Bins and Rolloff Boxes are approved for use hereunder, subject to the City Manager's approval ofthe specific models of each type to be used:
a. 3 cubic yard Bins
b. 40 cubic yard RolloffBoxes (also called Drop OffBoxes) c. 10 cubic yard Rolloff Boxes (also called Lowboys)
d. Commercial compactors minimum size: 36 cubic yards

2. The three cubic yard Bins used by Contractor shall be constructed of steel or plastic, and shall have plastic lids.
384/062266-0187
2120575.1 a06/02/11
277
I, '

EXHIBITC
Specifications for Household Special Waste Collection Services Overview
The purpose of this program is to improve collection of universal, pharmaceutical, sharps and household hazardous waste items and to help the City meet the State's landfill diversion mandate. The program consists of door-to-door collection of these wastes for single family and multi-family residential customers. This program will be handled as an on-call and on-collection day basis similar to the bulky-item collection program. Customers call CR&R to schedule a special waste pickup once they have collected a minimum quantity of waste. CR&R will then be responsible for proper collection, transpOli, disposal or recycling ofthe waste materials.

Wastes accepted
• Wastes identified as universal wastes in Section 66261.9 of Title 22 of the California Code ofRegulations, generated by a single family or multifamily residence, including but not necessarily limited to:
o Fluorescent bulbs and tubes (not longer than 4 feet), and other mercury-containing lamps, including high intensity discharge (HID), metal halide, sodium, and neon bulbs;
o Common household batteries (e.g. D, C, AA, AAA, button-type, etc.); o Non-empty aerosol cans;
o Electronic devices (e.g. televisions; computers, monitors, keyboards, mice, printers, desk copiers, scanners and multi-function machines; VCR's and DVD/CD/Tape players; cell phones; microwaves, toasters, irons, stereos, speakers, and cables); and o Mercury containing devices (e.g. lamps, thermometers, thermostats, gauges, electronic switches, etc.).
• Waste identified as home generated sharps waste in Section 117671 of Title 22 of the California Code of Regulations, generated by a single family or multifamily residence, including but not necessarily limited to:
o Syringes; hypodermic needles, pen needles, intravenous needles, lancets, and other devices that are used to penetrate the skin for the delivery ofmedications. e Pharmaceutical and personal care product waste, generated by a single family or multifamily residence, including but not necessarily limited to the following:
o Prescription and over-the-counter human drugs, veterinary drugs, diagnostic agents (not including controlled substances);
384/062266-0187
2120575.1 a06/02/11 278
o Nutritional supplements; and
o Consumer products such as fragrances, cosmetics, and sun-screen agents. o This aspect of the program will not begin until all regulatory approvals are obtained, and CR&R shall diligently pursue obtaining such approvals.

GI Household hazardous waste, generated by a single family or multifamily residence, including but not necessarily limited to:
o Automotive maintenance and repair products (e.g. motor oil, oil filters, antifreeze; lead-acid batteries, brake fluid, etc.);
o Lawn and garden chemicals (e.g. pesticides, herbicides, fungicides, etc.); o Cleaning products (e.g. bathroom cleaners, drain cleaners, chlorine bleach, solvents, oven cleaners, etc.); and
o Home improvement supplies (e.g. stains, paints, varnish, paint thinners, chemical strippers, glue, pool chemicals, etc.).

Wastes Not Accepted
• Any waste generated in the course of operating a business concern at a residence, or other business-generated waste.
• Any waste that does not fall within the categories described above.

Notification and Outreach
GI CR&R to provide initial and ongoing notification to all residential accounts about the program via special flyer inserts in the qUaliedy solid waste bill, as well as information in the QUaliedy Recycle Newsletter, with such materials to be approved by City.

GI Information provided shall include but not necessarily be limited to:
o The toll-free number that customers will call to arrange for collection of accumulated wastes.
o How handle these wastes, store them until there is a quantity suitable for collection, and place them in a container (such as a cardboard box) for collection by CR&R crews.
o Thresholds for minimum quantities required for a pickup request, and also maximum quantities per pickup (to prevent abuse).
o Special assistance available for seniors and disabled persons. 384/062266-0187
2120575.1306/02111 -2-
279
, "
Basic Program Operation

1. Resident calls CR&R's toll-free number to schedule a pickup. At this time CR&R's Customer Service Representative (CSR) and resident will determine mutually, a safe and convenient location on their property for placement of the accumulated materials. The CSR will provide information on how to properly store and package accumulated materials, and when to place materials at the agreed upon location.

2. The pickup will generally be on the resident's normally-scheduled solid waste collection day. Any alternative collection day can only be established with written approval by the City.

3. On the scheduled day, the resident places packaged waste materials in the previously agreed upon location on their propeliy for collection.

4. On the scheduled day, a CR&R crew arrives and inspects the materials, and collects acceptable materials to the collection vehicle.

5. The materials are then sorted by hazard class and placed into proper containers within the collection vehicle.

6. If residents leave unacceptable materials, the unacceptable materials will be carefully repackaged (when safe to do so) inside a new bag, and an information card will be placed with the unacceptable materials informing the resident on proper disposal options or to call for fuliher instructions.

7. Before leaving, the CR&R crew will leave a receipt to document the time and date of collection, as well as the type and quantity ofmaterials that were collected.

8. CR&R will ensure that the collected materials are properly transpOlied to final recycling or disposal facilities.

Operations
" CR&R will use cube-type, two-axle vans for this collection service. The minimum standards for collection vehicles per Section 8 ofthis Agreement shall apply. ., CR&R will use a separate propeliy apart from any existing solid waste site for the consolidation and packaging ofthese materials for proper recycling or disposal. " CR&R shall strive to maximize recycling of collected wastes.

CD For non-program calls received by CR&R, CR&R shall refer these to the City's hotline number (949-366-1553) if appropriate.
• CR&R shall maintain Environmental Pollution Control Insurance coverage, naming the City as an additional insured.
384/062266-0187
2120575.1 a06/02111 -3-
280
1II Wastes collected within the City of San Clemente shall not be commingled with loads from other cities, unless CR&R provides a means acceptable to the City to accurately identify and repmi the waste collected from both outside and within City limits. 1II CR&R shall maintain registration as a registered hazardous waste transporter in good standing with the State of California.

It Vehicle drivers must have a Depatiment of Motor Vehicle issued HAZMAT endorsement on the operator's license.
o Collection personnel must have 8-hour of HAZWOPER training and current celiifications.
.. Prior to transpmi, collected materials must be separated and secured to avoid contact with incompatible substances; All materials must·be packaged and transpOlied in' compliance with applicable local, State and Federal regulations.
.. CR&R Customer Services Representatives will have listings of accepted wastes and required minimum and maximum per pickup thresholds. Storage of wastes until a minimum quantity is generated at a household will be pati of a CSR's training and ability to explain to a customer.

It Sharps collections will only be via special "one-way" containers. o Materials must be weighed or counted as appropriate at the time of pickup to ensure accurate repmiing of data. Estimated weights or quantities may be accepted subject to review and approval by City of CR&R estimation procedures.

RepOliing and Documentation
o CR&R to provide postage paid survey cards (mailed back to the City), create monthly repOlis, provide bi-annual comprehensive repmis and analysis, provide documentation of each collection, and provide proof of consolidation and ultimate disposal. o Reports shall detail all materials collected, pounds or quantities per home, and other relevant details as may be required by the City.

Pickup Thresholds
• CR&R to provide a listing, for review and approval by the City, of minimum and maximum material pickup quan~ities, and also to designate maximum pickup frequencies to be reviewed and approved by the City.
• Pickups under this program will be in addition to and separate from the bulky item Collection Service required by this Agreement.
384/062266-0187
2120575,1 a06/02/11 -4-
281

EXHIBITD
Specifications for Solid Waste Container Ordinance Assistance CR&R will provide assistance to the City of San Clemente at no added charges, in enforcing the provisions of the applicable portions of the City's Municipal Code which prescribes requirements and allowable durations for placement of containers for collection by CR&R.

CR&R shall:

1. Provide daily inspections of the service areas. This service will be provided daily between 7:00 AM and 7:00 PM on an agreed schedule for maximum effectiveness.

2. Place warning or violation tags, furnished by the City, on containers found to be in noncompliance. Take digital photoes) of containers found not to be in compliance. Make note ofserial number(s) of all containers found not to be in compliance.

3. Send duplicate notice (along with digital photos and container serial numbers) in a timely manner to the City so that City can notify residents of violations.

4. Provide vehicle and personnel to perform this service and who can communicate with residents if questions arise in the field.

5. Assist to resolve disputes with residents and City.
384/062266-0 \87
2\20575.1 a06/02/1i
282
283
284
285
286
287
288
289
290
291
292
293
294
295
296
297
298
299
300
301
302
303
304
Attachment 4
305
306
307
308
309
310
311
312
313
314
315
316
317
318
319
320
321
322
323
324
325

FIRST AMENDMENT TO

PROFESSIONAL CONSULTANT SERVICES AGREEMENT FOR

SOLID WASTE PROCUREMENT ASSISTANCE CONSULTING SERVICES
This First Amendment to Professional Consultant Services Agreement for professional SOLID WASTE PROCUREMENT ASSISTANCE consulting services (this “First Amendment”) is made and entered into on this ____day of ________, 2022, by and between the CITY OF SAN CLEMENTE, a California municipal corporation (“City”), and MSW CONSULTANTS (“Consultant”).

R E C I T A L S:

A. City and Consultant entered into that certain Professional Consultant Services Agreement for SOLID WASTE PROCUREMENT ASSISTANCE (the
“Agreement”) on March 21, 2022.

B. City and Consultant desire to amend the Agreement in the manner provided herein.

C O V E N A N T S:

Section 3.1 of the Agreement is hereby amended by adding services to provide for solid waste and recycling negotiations. In addition to the services to be performed by Consultant as referenced in Exhibit A to the Agreement, Consultant shall also perform those services described in Exhibit “A” to this First Amendment, which exhibit is attached hereto and incorporated herein by this reference.

Section 3.3 of the Agreement is hereby amended by increasing the not to exceed amount from Twenty Five Thousand Dollars ($25,000) to Sixty Thousand Dollars ($60,000) for the remainder of the Agreement.

Except as expressly amended by this First Amendment, the remaining portions of the Agreement shall remain in full force and effect.

Attachment 5
326
IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to be duly executed on the respective dates set forth opposite of their signatures.

CITY OF SAN CLEMENTE
By:________________________________
ATTEST: Its:_______________________________
______________________________ Dated: ____________________, 20____ CITY CLERK of the City of
San Clemente, California
APPROVED AS TO FORM:

BEST BEST & KRIEGER
____________________________
City Attorney

APPROVED AS TO AVAILABILITY
OF FUNDING:
________________________________
Finance Authorization

__________________________
(“CONSULTANT”)

By:_____________________________
Its:_____________________________
Dated: __________________, 20____
327
EXHIBIT “A”
SCOPE OF WORK -TASK 2 - NEGOTIATE WITH CR&R
Objective of Negotiation with CR&R
The main objective of a sole source negotiation is to realize the 'best of both worlds.' The objective is to avoid the potential risks involved with the selection and transition to a new service provider, while at the same time securing an agreement with CR&R that represents the same value that the City would have otherwise obtained if it had conducted a competitive procurement.

Scope of Work - Negotiate with CR&R
To accomplish this objective, we will perform the following tasks:

Task 2a - Negotiation Kickoff Meeting
If the City decides to begin negotiations with CR&R, we will conduct a kickoff meeting with City staff. We will also conduct a subsequent meeting with City staff and representatives from CR&R. The purpose of the meeting with City staff will be to confirm the project scope, schedule, key issues, deliverables, and the City's negotiating strategy. The purpose of the meeting with CR&R will be to discuss the project schedule, the information CR&R will need to provide, and potential modifications to the key terms and services in the franchise agreement.

Deliverables:
 Meeting agenda and notes
Task 2b - Gather Operational and Billing Information
We will gather from CR&R billing information about its customers in the City. This information will likely include the number of customers, number of dwelling units, and each residential customer's size and number of carts.

We will gather operational information from CR&R. For example, we will gather information about the number of routes they operate and the number of tons they collect. We will also gather information about the number of customers at each level of service, including the size and number of containers, and number of pickups per week, etc. We will analyze the information we gather and evaluate it for reasonableness. The purpose for gathering this information is to calculate the company's total revenue, disposal and fuel expense, as described below in Task 2c.1
We will also gather the bid results from other recent competitive solid waste procurements from other cities, including those in which CR&R may have participated. The purpose for gathering this market data is to gain a better understanding of CR&R's cost drivers and market objectives.

Deliverable:
 Information gathered from CR&R
1 This step will need to be performed whether the City negotiates or goes out to bid. If the City decides to subsequently issue an RFP, this operational data will be included in the RFP Package. The purpose for including this operational data in the RFP Package is to assist the proposers in estimating their cost of service.
328
Task 2c - Estimate Total Contract Revenue
We will use the information we gather in Task 2b above to estimate CR&R's total revenue in the City, as well as its disposal and fuel cost expense. The purpose for estimating the company's total revenue, disposal and fuel expense is to enable the City to understand the rate impact of various negotiating issues.

Deliverables:
 Workbook of CR&R's total current contract revenue
Task 2d - Develop Negotiating Strategy; Prepare Meeting Materials Based on the information we gather and our previous discussions with City staff, we will develop a negotiation strategy, and prepare meeting materials for use in our discussions with CR&R. We will develop a negotiation strategy by preparing an outline of the key contract terms, which will be accompanied by a 'preferred' and a 'fallback' outcome for each issue. The 'preferred' outcomes will be those that we believe would benefit the City and may be marginally acceptable to CR&R. The 'fallback' outcomes are those that would be marginally acceptable to the City, but not less favorable than the City might expect to achieve through a competitive procurement.

The purpose for developing such a negotiating strategy is not to necessarily prescribe the terms the City would be willing to accept. The City will always have the flexibility to 'call an audible,' and vary from its negotiating strategy. The primary purpose of having a written negotiation strategy is to cause the City to deliberate on all the issues, and thereby be better prepared for its discussions with CR&R.

We will also prepare written materials for use in negotiating meetings with CR&R. These materials will likely take the form of tables or exhibits listing all the issues. These materials will also include an updated version of the franchise agreement with the City's proposed changes 'redlined.' The purpose of the meeting materials will be to ensure that both parties have a common understanding of the issues, and to promote an organized and systematic approach to reaching an agreement that is best for the City.

Deliverables:
 Meeting materials
 Outline of negotiation strategy
Task 2e - Participate in Negotiating Sessions
We will prepare for and participate in up to four meetings with City staff and CR&R. At these meetings, we will listen to CR&R's proposals, and confirm our understanding of the company's objectives. We will also present the City's negotiating positions. To the extent that they will further the City's negotiating objectives, we will present various market information and cost analyses. We will seek to persuade CR&R to accept the City's proposals. The purpose of these meetings will be to systematically bring the parties closer together on the various issues, and to ultimately agree on a new franchise agreement that represents the best value for the City.

During the course the contract negotiations, we will perform other tasks such as preparing status reports for distribution to the Council Subcommittee, and revising our meeting materials (e.g., 'redlined' versions of the franchise agreement, etc.). 329
Deliverable:
 Meeting agenda and materials
Task 2f- Meet with Council Subcommittee
We have found that it is often beneficial to consult with a City Council subcommittee during the negotiation process. Therefore, after the negotiations are complete, we propose to meet once with the Council Subcommittee and review the results of the City's negotiations with CR&R. If the City and CR&R have agreed to terms for a new agreement, we will present those terms to the members of the Council Subcommittee.

If the City is not able to agree on terms with CR&R, we will describe the outstanding issues, outline each party's position, and explain why it is not in the City's interest to agree to CR&R's terms. The purpose of this task is to obtain the City's approval of the outcome of the negotiating process, and to formulate a recommendation to the City Council on how to move forward.

Deliverable:
 Meeting agenda and notes
Task 2g- Present Negotiation Results and Recommended Action to City Council We will prepare a Powerpoint summary of the results of the negotiations. If the negotiations result in the City and CR&R agreeing on terms for a new franchise agreement, we will prepare a City Council staff report and Power Point that outlines the services, rates, and key terms of the agreement. We will also present a rate comparison to other cities using the newly agreed-upon service rates.

If the negotiations are not successful, we will present, in general terms, the reasons why we found it not in the City's interest to agree to CR&R's proposed terms. However, we will be mindful to not present any information in public that may compromise the conduct of a competitive procurement. We will review this presentation with City staff, and revise it as necessary. We will attend a meeting of the City Council and present the outcome of the contract negotiations, and the recommended action.

Deliverables:
 City Council staff report
 Power Point presentation
 Presentation to City Council
330
9/6/2022
1 Solid Waste Consultants
to Local Government
MSW Consultants
Solid Waste Agreement:

Negotiate or RFP
September 6, 2022
Solid Waste Consultants
to Local Government
Residential Rates
• SB 1383
• Capital spending on organics facilities
• Decrease in recyclables market value
• Driver shortage
• Supply shortages; cost of material
• Cost of fuel; inflation
Attachment 6
331
9/6/2022
2 Solid Waste Consultants
to Local Government
Solid Waste Landscape in OC
Solid Waste Consultants
to Local Government
Solid Waste Landscape in OC
$0.00
$5.00
$10.00
$15.00
$20.00
$25.00
Single‐family Monthly Rate
Hauler Portion City Fees
332
9/6/2022
3 Solid Waste Consultants
to Local Government
Commercial Rates
$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
Lake Forest Rancho
Santa
Margarita
Laguna
Woods
Aliso Viejo Laguna
Hills
Laguna
Niguel
Mission
Viejo
Dana Point San Juan
Capistrano
San
Clemente
Laguna
Beach
Commercial Monthly Rate
3‐yard Bin Picked Up Once per Week
Hauler Portion City Fees
Solid Waste Consultants
to Local Government
City’s Agreement with CR&R
• Negotiated in 2010 for 11 ½ years
• Automatic extensions each July 1st
• Amended to include organics services
• Meeting diversion goals
• Recent service issues
333
9/6/2022
4 Solid Waste Consultants
to Local Government
More appropriate to Negotiate
• High quality, reliable service
• Rates are reasonable
• City meeting diversion goals
• Scope of service will not change
Solid Waste Consultants
to Local Government
RFP More Appropriate
• City is less satisfied with hauler
• Rates are high
• City not meeting diversion goals
• Significant changes to scope of service
334
9/6/2022
5 Solid Waste Consultants
to Local Government
Recommendation
• Notify CR&R to terminate automatic renewal
• Negotiate for six months
• If parties cannot agree; conduct RFP process
Solid Waste Consultants
to Local Government
David L. Davis, CMA
MSW Consultants
41760 Ivy St., Suite 203
Murrieta, CA 92562
(951) 694-4001
[email protected]
www.msw-consultants.com
Minerva™:
www.mswcompliance.com
Questions and Answers
335

AGENDA REPORT

CITY OF SAN CLEMENTE
City Council Meeting
Community Center
100 N. Calle Seville
San Clemente, California
www.san-clemente.org
Meeting Date: 9/6/2022 Agenda Item: C.

Department: Utilities
Prepared By: David Rebensdorf, Utilities Director
Subject:

APPROVAL OF LONG-TERM WASTEWATER SERVICES AGREEMENT WITH SANTA MARGARITA WATER DISTRICT (SMWD).

Fiscal Impact:

Yes. The City will receive approximately $800,000 per year in revenue for wastewater conveyance and treatment to the Sewer Operating Fund from SMWD. Future revenue for the sale of recycled water and for Advanced Water Treatment Capital expenditures will be received into the Water Operating Fund. The City will receive a one-time payment for the use of the City’s existing recycled water system in the amount of $1,100,000 to the Water Operating Fund.

The City will incur expenditures to purchase 100 acre-feet (AF) of capacity in SMWD’s Trampas Recycled Water Reservoir and the Pico Recycled Water Pump Station in the amounts of $3,100,000 from account number 054-477-45300-000-12207 and $611,800 from account number 054-477-45300 -000-12206. A transfer of $11,800 is recommended from account number 054-477-47250-000-12605 to account number 054-477-45300-000-12206.

Summary:

Staff recommends the City Council approve a mutually beneficial Long-Term Agreement (Agreement) with SMWD for the conveyance and treatment of wastewater from SMWD’s Talega Service Area, including future production of recycled water for sale to SMWD, which also provides the City storage rights in Trampas Regional Recycled Water Reservoir and capacity in the Pico Recycled Water Pump Station. The Agreement also requires the City to provide improved recycled water quality through the construction of an Advanced Water Treatment Facility. Benefits of the project include improved water quality for City customers, and revenue from recycled water sales to SMWD will reduce the City’s financial obligation for the project.

Background:

SMWD originally requested that the City accept and treat SMWD’s wastewater from the Talega Service Area due to several force main failures and odor issues created by the length of pipe from Talega to SMWD’s Chiquita Wastewater Plant. Due to reductions in indoor water use by City customers, the City’s Water Reclamation Plant (WRP) and collection system had excess capacity to accommodate SMWD’s request. In response, the City has been conveying and treating approximately 650,000 gallons per day since December 6, 2017 for $59,000 per month while an Agreement was developed. The City’s WRP was designed with a capacity of 6.976 million gallons per day (MGD), but due to the proliferation of water efficient plumbing devices and water conserving behaviors in its customers’ homes and businesses, current wastewater influent flows to the WRP are approximately only 3.6 MGD including flows from SMWD’s Talega service area.

CITY OF SAN CLEMENTE Page 1 of 4 Printed on 9/7/2022
powered by Legistar™336
Meeting Date: 9/6/2022 Agenda Item: C.

The Agreement has been delayed due to COVID-19 and differences in recycled water quality standards between the agencies’ respective systems. The City’s recycled water has a higher salt content due to the proximity to the ocean, urban runoff diverted to the City’s wastewater system, and water softeners within the City’s service area. The City’s current recycled water supply has a salt content, quantified as total dissolved solids (TDS), of approximately 1,350 parts per million (ppm).

To improve water quality and to allow the agencies to meet permit requirements, Trussell Technologies, Inc. has prepared a study to lower the TDS to 800 ppm through the construction of an Advanced Water Treatment Facility. The proposed facility will treat approximately 1.2 MGD of recycled water through microfiltration and reverse osmosis. This highly treated water is then blended with recycled water to produce final product water with a TDS below 800 ppm. The location of the facility is proposed to be at the City’s WRP with an estimated cost of $10.5 million.

SMWD is in need of additional recycled water supply to offset imported potable water and to meet its future irrigation customer demands. While the City is updating its Recycled Water Master Plan to evaluate an expansion of the system to include an approximate additional 300 acre-feet per year (AFY) of demand, there is stranded capacity in the WRP during the non-peak irrigation periods. The City can produce up to 3,360 AFY and has a current demand of approximately 1,200 AFY; the remaining 2,160 AFY is a stranded supply source that has a regional benefit to reduce imported potable water to South Orange County.

The Agreement is a unique opportunity for the City to utilize its stranded assets while cost sharing improvements with SMWD. It will create additional sources of revenue to offset future rate increases for the City’s customers and reduce the financial burden on the City of improving recycled water quality.

Discussion:

The proposed Agreement covers three primary issues: wastewater treatment/conveyance, recycled water production and distribution, and storage rights in the Trampas Regional Recycled Water Reservoir. The term is for 30-years due to the investment in infrastructure, with the option to extend for up to two additional 10-year terms if mutually agreed upon. Raftelis Financial Consultants, the City’s consultant hired to evaluate proposed contract rates, and the City Attorney have reviewed and provided comments on the proposed Agreement. The Agreement is retroactive to July 1, 2022 to include an entire fiscal year of expenses for wastewater services. The attached Agreement provides details related to each of the issues as described below.

Wastewater Treatment - Due to City customers’ indoor water use efficiency, the City has excess capacity within the WRP and conveyance system to accept approximately 650,000 gallons per day of raw wastewater from SMWD’s Talega service area. The Agreement includes operation and maintenance (O&M) payment based on a proportionate share of capacities by asset for administrative, fixed and variable costs. In addition, the City will receive payment from SMWD for capital costs based on the capacities of its various facilities. In total, the Agreement identifies approximately $582,000 in O&M and administration, and $219,000 in capital revenue in the first year.

All costs will be subject to a true-up process based on actual City costs incurred.

The City has already realized benefits to its collection system during the past several years of treating wastewater from SMWD. The increased flow has lowered maintenance for the Los Molinos CITY OF SAN CLEMENTE Page 2 of 4 Printed on 9/7/2022
powered by Legistar™337
Meeting Date: 9/6/2022 Agenda Item: C.
treating wastewater from SMWD. The increased flow has lowered maintenance for the Los Molinos Wet Well and the gravity sewer line along Avenida Pico has been self-cleaning. At the same time, no additional staff have been needed to treat and convey the wastewater.

Recycled Water - The City’s existing recycled water customer demand is approximately 1,200 AFY and the WRP has the capacity to produce up to 3,360 AFY. The City expanded its recycled water system and customer base in 2017 and is in the process of evaluating an expansion to include an approximate 300 AFY of additional demand from existing customers. At the same time, SMWD also needs additional recycled water to serve its customers, and they have the ability to store recycled water from the City during non-peak periods in the Trampas Regional Recycled Water Reservoir.

Under the Agreement, the City would commit to providing 1,000 AFY of recycled water to SMWD on a take-or-pay basis and would be able to sell recycled water, in excess of its own customers’ needs, to SMWD. In return, SMWD will contribute towards fixed and variable costs based on a percentage of flow and capacity, including a share of capital costs to construct and maintain the new Advanced Water Treatment Facility. SMWD will contribute $1.1 million to the City for future repair and replacements of the existing recycled water system for the initial term of the Agreement. The estimated revenue from recycled water sales to SMWD is expected to range from $875,000 for 1,000 AFY to $1.6 million for 2,195 AFY, depending upon how much SMWD purchases.

Prior to the City producing recycled water for distribution to SMWD, the Agreement requires the City to address the necessary improvements to its recycled water quality, so the City must award a construction contract for the Advanced Water Treatment Facility within 18 months of when the Agreement is adopted. In the event that this timeframe is not met by the City, all Agreement provisions regarding recycled water will terminate. However, the City and SMWD can mutually agree to extend the deadline.

Trampas Reservoir and Pico Recycled Water Pump Station Capacity - The City will purchase 100 AF of storage in the Trampas Reservoir for a cost of $3.1 million. At no additional cost, the City will also have access to a second 100 AF of capacity as a condition of the City selling its excess recycled water at a reduced rate. The City will benefit from the seasonal storage to serve its customers during peak demands and plant outages, and to improve service to Bella Collina Golf Course.

The City will also purchase approximately 24% of the capacity of SMWD’s Pico Recycled Water Pump Station for $611,800 to pump recycled water to the Trampas Reservoir, back feed the City’s system from SMWD through a pressure reducing system, and serve Bella Collina Golf Course. The City will pay a proportionate share of O&M costs, as well as capital repair and replacement costs for the facilities.

Plan and Policy Consistency:

The approval is consistent with the following General Plan Goals and Policies:
• Goal: Maintain and improve a comprehensive system of potable water supply, storage and distribution, and wastewater treatment, reclamation, and reuse to meet daily and emergency needs in San Clemente.
• Policy PSFU-5.05 Water Supplies. We provide and maintain adequate water supplies and distribution facilities capable of meeting existing and future daily and peak demands, including CITY OF SAN CLEMENTE Page 3 of 4 Printed on 9/7/2022
powered by Legistar™338
Meeting Date: 9/6/2022 Agenda Item: C.
fire flow requirements.

Council Strategy:

The approval is consistent with Council Strategy 3 - Update and maintain Infrastructure that reflects best available technology and service - in that Utilities is generating revenue from stranded assets and building infrastructure to improve its service to City customers.

Recommended Actions:

Staff Recommendation
STAFF RECOMMENDS THAT the City Council:

1. Approve and authorize the City Manager to execute, Contract No. C22-54, by and between the City of San Clemente and the Santa Margarita Water District, for wastewater Treatment Services and Recycled Water Purchases from July 1, 2022 to June 30, 2052;

2. Transfer $11,800 from account number 054-477-47250-000-12605 to account number 054-477-45300-000-12206; and

3. Authorize expenditures in the amount of $3,100,000 from account number 054- 477-45300-000-12207 for Trampas Regional Recycled Water Reservoir and $611,800 for Pico Recycled Water Pump Station from account number 054-477- 45300-000-12206.

Attachments:

1. Long-Term Wastewater Services Agreement between the City of San Clemente and the Santa Margarita Water District.

2. PowerPoint Presentation titled “Agreement for Wastewater Services and Recycled Water Purchases between the City and SMWD.”
Notification:

None.

CITY OF SAN CLEMENTE Page 4 of 4 Printed on 9/7/2022
powered by Legistar™339
55411.00000\40655632.1
1 AGREEMENT FOR WASTEWATER TREATMENT SERVICES AND RECYCLED

WATER PURCHASES
This Agreement for Wastewater Treatment Services and Recycled Water Purchases (“Agreement”) is made and entered into as of July 1, 2022 by and between the City of San Clemente, a California municipal corporation (“City”), and the Santa Margarita Water District, a California water district (“SMWD”), each individually referred to as a “Party” and collectively referred to as the “Parties.”

RECITALS
A. The City owns and operates a wastewater collection and treatment system (“City System”), which includes a wastewater reclamation plant that treats wastewater and produces recycled water that complies with Title 22 of the California Code of Regulations (“Plant”).

The Plant currently has excess capacity available for wastewater treatment.

B. SMWD’s service area for water and wastewater collection and treatment is within the City, specifically, the Talega planned community and golf course (“Talega Area”). SMWD currently provides wastewater, potable-water, and recycled-water services to Talega Area residents.

C. SMWD’s system for the delivery and storage of recycled water (“SMWD System”) includes the Trampas Canyon Dam and Reservoir (“Trampas Reservoir”).

D. Government Code section 56133(e) allows local agencies to contract for the sale of nonpotable and non-treated water outside their jurisdictional boundaries.

E. SMWD and the City have determined that it would be mutually beneficial and efficient for SMWD to deliver wastewater flows from the Talega Area (and potentially other areas in the future) to the Plant for treatment utilizing the excess capacity in the Plant.

F. SMWD and the City desire to enter into a long term wastewater treatment service agreement to enable SMWD to have SMWD System wastewater treated at the Plant that will facilitate operational and capital planning for the Parties within their respective service areas and provide for greater utilization of the Plant over the remainder of its useful life, all as set forth with particularity in the terms and conditions that are set forth herein.

G. Additionally, SMWD desires the option to purchase from the City recycled water generated from the SMWD System flows that the City treats at the Plant, as well as any excess recycled water available from the Plant, and the City desires to sell such recycled water to SMWD.

H. The City has encountered occasional difficulty providing recycled water service to its customers and seeks to purchase recycled water from SMWD to provide that service to its customers during an interim 30-month period, to meet demands such as during Plant production outages and peak customer demand.

Attachment 1
340
55411.00000\40655632.1
2 I. The purpose of this Agreement is for the Parties to share in the capitalization of the improvements necessary for the services contemplated hereunder, to maximize the efficiency and quality of their collective wastewater treatment and water recycling infrastructure, and to enhance water conservation and water quality.

IN WITNESS WHEREOF, in consideration of the foregoing recitals and the mutual covenants, conditions, and agreements in this Agreement, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows.

1. Effective Date; Term; General Provisions.

1.1 Effective Date. This Agreement will become effective as of the date first set forth above and the obligations of the Parties shall become binding and enforceable as of that date.

1.2 Term. The term of this Agreement shall commence on the Effective Date and shall continue thereafter for an initial term of thirty (30) years (“Initial Term”). [SMWD herby delegates to its General Manager and the City hereby delegates to its City Manager the authority to] [The Parties may] extend the initial term for two (2) additional terms of ten (10) years each (“Extension Term”) on terms identical to the term set forth herein. The parties may otherwise extend this Agreement on different terms subject to the approval of their respective governing bodies. The Initial Term and any Extension Term are collectively referred to herein as the “Term.”

1.3 Contract Year. A contract year for the purposes of this Agreement will run from July 1 to June 30. Any reference in this agreement to a “year” or “per annum” will refer to a contract year.

1.4 Consumer Price Index (“CPI”). Certain costs in the Agreement are indicated as subject to annual increases based on the year over year change in the Consumer Price Index – Los Angeles-Long Beach-Anaheim (All Urban Consumers) from January through December. Unless otherwise noted, such increases will occur each July, commencing July 1, 2023.

1.5 Wastewater Treatment Service Option. During the Term of this Agreement, City shall provide SMWD the right to City wastewater treatment services of up to 0.65 MGD of the wastewater treatment capacity of the Plant based on average dry weather flows of untreated raw sewage from the SMWD System (“Reserved Capacity”). The City shall set aside the capacity for the treatment of SMWD wastewater effluent conveyed by SMWD to the Plant. SMWD flows may exceed the Reserved Capacity from time to time in the event of peak or emergency flows from weather-related or other events beyond the reasonable control of SMWD, provided, however, that such peak or emergency flows do not cause exceedances in the capacity of the Plant and conveyance system and that SMWD bears the additional proportional cost of the use of such excess capacity in the same manner as if SMWD had contracted for Additional Services as set forth in Section 1.6. 341
55411.00000\40655632.1
3 1.6 Additional Wastewater Treatment Services. During the Term of this Agreement, no later than March 1 of each year, City shall notify SMWD if City has additional Plant capacity in excess of the Reserved Capacity during the upcoming fiscal year. SMWD shall have sixty (60) days to notify City in writing of its desire to have City dedicate all or a portion of the additional capacity, on an as-needed basis, for City to set aside during the upcoming fiscal year. The amount of capacity which SMWD chooses to utilize will be referred to in this Agreement as the “Additional Capacity.” The determination Additional Capacity will be in the sole discretion of the City and the City may reserve or withhold capacity for its use or the use of third parties. The City and SMWD may agree to allocate Additional Capacity on a multi-year basis by mutual agreement. The use of Additional Capacity will be subject to all of the terms and conditions of this Agreement. The Reserved Capacity and the Additional Capacity allocated during any given contract year shall be the “SMWD Capacity” for that contract year which will require modifications to capacity allocations, such as, capital, fixed and variable.

2. Fees for Treatment.

2.1 Definitions.

2.1.1 “Aggregate Capacity” shall mean the total aggregate average day liquid treatment capacity of the Plant on the Effective Date, excluding any Plant expansion after the Effective Date, without regard to actual capacity usage as the same may change from time to time. The Plant’s current aggregate average day liquid treatment capacity is 6.976 MGD.

2.1.2 “Capital Repair and Replacement Costs” shall mean the annual costs of capital repairs, replacements and modifications to the Plant, whether on a planned or emergency basis, as the City deems necessary to maintain the operation of the Plant in good condition and repair and with discharge effluent in compliance with applicable federal and state laws, permits and approvals. Capital Repair and Replacement Costs shall exclude:
i. The cost of expanding the Plant’s capacity beyond the Aggregate Capacity,
ii. Maintenance and repair costs constituting Fixed O&M costs as defined below, and
iii. Maintenance and repair costs constituting Variable O&M Costs as defined below.

2.1.3 “Fixed O&M Costs” means those operating and maintenance costs and expenses incurred regardless of actual treatment activities. The schedule attached hereto as Exhibit A defines Fixed O&M Costs based on the City’s current cost categories. Labor costs for the Plant shall be based on the actual salary and benefit costs paid for all employees operating and maintaining the Plant. Equipment, materials and supplies shall be charged at actual cost. Fixed O&M Costs exclude non-cash items such as depreciation, recognition of changes in pension liabilities, 342
55411.00000\40655632.1
4 or any obsolescent charges or any reserves therefore, or amortization of intangibles or other bookkeeping entries of similar nature.

2.1.4 “Variable O&M Costs” means those costs incurred in wastewater treatment and disposal that are dependent on the quantity of the wastewater treated, which includes power, chemicals, solids disposal, and other consumables. The schedule attached hereto as Exhibit A defines Variable O&M Costs based on the City’s current cost categories.

2.1.5 “Volumetric Flow Measurement” Influent from SMWD shall be measured at the Pico Lift Station. The actual total influent flow to the Plant from SMWD shall be measured by the plant influent meter in Avenida Pico adjacent to the Pico Lift Station. The meter shall be calibrated for accuracy annually unless the Parties agree otherwise so that wastewater flow measuring is accurate within 5% of actual flow throughout the anticipated flow range. SMWD volumetric flow information will be provided to the City as indicated in Section 3.4 – Flow Monitoring.

2.2 SMWD Payment for Treatment.

2.2.1 Treatment Service Payments - Plant. SMWD shall make quarterly estimated treatment service payments as follows:
i. SMWD’s share of Fixed O&M Expenses at the Plant based on the proportion of the Reserved Capacity to the Aggregate Capacity of the Plant. For example, based on the Reserved Capacity only, the share of Fixed O&M Expenses would be 9.32% (0.65 MGD divided by 6.976 MGD) SMWD’s share of Fixed O&M will be initially based on 0.65 MGD, which is subject to increase only if SMWD’s three (3) year rolling average flows increases more than 0.05 MGD; and ii. SMWD’s share of Variable O&M Expenses based on the proportion of SMWD Volumetric Flows to the total volumetric flows of the Plant.

This will be calculated at the end of each year based on actual flows, and will initially be 18.21%, based on the Reserved Capacity of 0.65 MGD divided by 3.57 MGD, the estimated current City and SMWD total volumetric flows.

SMWD’s estimated treatment service payments shall be subject to the City Invoice Process described in Subsection 2.3 below, with information provided in form of Exhibit A.

2.2.2 Future Adjustments to Variable O&M Expenses and Fixed O&M Expenses.
i. The share of Variable O&M Expenses will be subject to review if the solid loadings in the SMWD flow increase or decrease relative to the solid loadings in the City’s flow over each five (5) year period, the 343
55411.00000\40655632.1
5 intent being that both the SMWD and the City solid loadings remain consistent with typical domestic wastewater flows over time. The baseline for the City and the SMWD solid loading will be established based on 2022 flows to the Plant. For example, if the SMWD solid loading concentrations during the first five (5) year period were to increase relative to the City solid loading concentrations by ten (10) percent, then in year six through ten, the percentage of the Variable O&M Expense payable by SMWD would be increased to take into account the higher burden placed on the Plant as a result of higher solid loading in the SMWD flows. Similarly, if the City solid loading were to increase relative to the SMWD solid loading, then the percentage of the Variable O&M Expense payable by SMWD would be decreased to take into account the lower burden placed on the Plant as a result of the higher solid loading in the City flows. In the event the parties wish to bill for flows and loadings separately, the parties may agree on a cost allocation methodology or commission a study by an independent consultant to develop the methodology. The cost of the study will be shared evenly by both parties.
ii. SMWD’s share of Fixed O&M Expenses will be payable regardless of whether SMWD treatment services require the entire Reserved Capacity. O&M expenses do not include annual or emergency capital expenditures for repair and replacement. The estimated Fixed O&M Expenses and Variable O&M Expenses for the first year are indicated in Exhibit A. Notwithstanding the statements above, the City and SMWD may adjust the annual average flow and loading to account for one-time emergency events.

2.2.3 Collection System Services - Payment. SMWD will make quarterly payments to cover its allocable share of costs for that portion of the City System used to convey wastewater from the interconnection point to the Plant (“City System Expenses”) as follows:
i. Los Molinos Pump Station – Operating Costs shall be based SMWD’s proportionate share of flows at the Pump Station, and amounts will be based on actual costs and flows. Initial costs are $29,745 based on costs as indicated in Exhibit B. Subsequent year costs shall be based initially on estimated costs by the City and subject to year-end actual reconciliation.
ii. Los Molinos Pump Station - Capital Contributions will equal $30,950 in the first fiscal year of the contract and increase annually based on CPI.
iii. Pico Trunk Sewer Line - $13,126 per year for operation, maintenance, and capital costs. Costs will increase annually based on CPI. 344
55411.00000\40655632.1
6 The City will provide SMWD with quarterly invoices for the costs for the Pico Trunk Sewer Line and Los Molinos Pump Station – Capital Contributions, including applicable CPI information. The costs for the Los Molinos Pump Station – Operating Costs shall be subject to the City Invoice Process described in Section 3.2, with cost information provided in the form of Exhibit B.

2.2.4 Capital Charge. SMWD will pay an annual capital charge for its exclusive rights to the Reserved Capacity only, which amount is intended to compensate the City for Capital Repair and Replacement Costs associated with the use of the Plant (“Capital Charge”). The Capital Charge for the first year of the Agreement will be One Hundred and Seventy-Five Thousand Dollars ($175,000).

The City will provide SMWD with quarterly invoices for the Capital Charge. The Capital Charge will increase each year by CPI, with a true-up of the Capital Charge to the average annual actual Capital Repair and Replacement Costs at the end of each five (5) year period. If the amount collected from SMWD in the prior five (5) year period differs from SMWD’s proportional share of the actual expenditures over such period, then the difference will be credited or added to SMWD’s next invoice(s) for Capital Charges. SMWD’s Capital Charge shall also be reset based on the actual proportional share average over the prior five (5) year period and will remain subject to CPI annual increases over the next five (5) year period.

The Capital Charge will be based on a combination of capacity and volumetric capital expenditures as defined in 2.2.1 and as adjusted in 2.2.2. Capacity capital expenses will be considered structures, electrical, liquid piping and instrumentation/SCADA.

Volumetric capital expenses are considered pumps, motors, piping related to moving solids, electrical associated solid handling equipment and aeration, and equipment associated with headworks, primary, secondary and solid handling treatment. The Capital Charge will not include the replacement of the entire plant or a substantial portion thereof.

2.2.5 Administration Costs. As fees for City services, SMWD will pay its proportional share of City administrative charges that are properly allocated to the Plant (not inclusive of the City’s general collections system) based on the Reserved Capacity (“Administrative Charge”). In no event will the Administrative Charge exceed fifteen percent (15%) of Fixed O&M and Variable O&M Expenses paid by SMWD pursuant to the Agreement in any given year. The following costs will be excluded from administrative charges: South Orange County Wastewater Authority, Utility Billing, and the salary and benefit costs of the Utility Director.

Administration Costs shall be subject to the City Invoice Process described in Section

2.3 below, with cost information provided in the form of Exhibit C.

2.3 City Invoice Process. Where specified herein, the City will invoice SMWD for service charges under this Agreement through the following process (“City Invoice Process”): At the end of each of the first three (3) fiscal quarters of each year, the City will provide SMWD an invoice of estimated service fees calculated based on 25% the relevant costs from the City’s adopted budget for the current year. For the fourth fiscal 345
55411.00000\40655632.1
7 quarter, the City will send SMWD an invoice based on its actual operating expenses throughout the year, reconciling any over- or under-payments in the previous three quarters. The City will send the fourth quarter invoice by August 31, which shall include detailed cost information utilizing the relevant referenced Exhibit or comparable form agreed to by the two parties. SMWD will pay all invoices within thirty (30) days of receipt.

2.4 Cost Information. The City will provide SMWD with the detailed information necessary, on an annual basis, for SMWD to validate the charges owed for the Fixed O&M Expenses, Variable O&M Expenses, City System Expenses, Capital Charge, and Administrative Costs.

3. General Terms of Use for City Treatment Services.

3.1 Delivery of Wastewater. SMWD will be responsible for all costs of delivery through the SMWD System and interconnection with the City System and the maintenance of such facilities to the interconnection point in Avenida Pico near the intersection of Avenida La Pata. The City will be responsible for the maintenance of its facilities to convey wastewater from the interconnection point through the City System to the Plant.

3.2 Quantity of Wastewater. The flow of SMWD wastewater to the interconnection point shall not exceed a maximum peak of two million gallons per day so as not to overload the City System between the interconnection point and the Plant. The City may agree in writing to take higher daily volumes if there is sufficient capacity.

3.3 Quality of Wastewater. SMWD wastewater delivered to the interconnection point with the City System shall be of the quality normally associated with predominantly domestic sewage and shall meet all federal, state and local laws, rules and regulations and shall not result in any violation of the permits and approvals of the Plant, including its NPDES permit.

It is anticipated that SMWD and the City will require industrial pre-treatment with respect to solid loading of a commercial or industrial nature. SMWD shall be solely responsible for any actual direct costs associated with the violation of the quality requirements set forth herein. In the event additional primary solids pretreatment is necessary due to near limit or exceeds of the treatment plants solid design capacity, SMWD will be required to pay associated costs, such as, chemically enhanced pretreatments or other capital costs to meet treatment regulatory requirements.

3.4 Flow Monitoring. Subject to completing a feasibility and procurement process for the interconnection site, SMWD will install a real time flow meter at the interconnection point and the City will have access to the data from such meter. SMWD will provide flow data to the City on a monthly basis until real time monitoring becomes available. Twice annually, samples will be taken from SMWD’s sampling manhole upstream of the interconnection point by SMWD and results will be provided to the City.

Samples will be tested for a range of particulates to be agreed upon from time to time by SMWD and the City. Periodically, there may be a need for additional sampling and testing. Changes in flow rates and loading will be measured to provide a basis for adjustments to the capacity and volumetric calculations as set forth in Sections 2 2.1 and

2.2.2. 346
55411.00000\40655632.1
8 3.5 Covenant on Industrial Discharge. Neither the City nor SMWD will issue a permit or approval to a customer for the discharge of industrial wastewater in excess of one hundred (100) gallons per day without giving the other Party no less than thirty (30) days written notice prior to taking final action on such permit.

4. Purchase of City Recycled Water

4.1 Definition of City Recycled Water. For the purposes of this Agreement, “City Recycled Water” means liquid effluent which has been treated at the City Plant and made available for non-potable use as further defined in Title 22 of the California Code of Regulations.

4.2 Definition of Modified Permits. As of the Effective Date of the Agreement, SMWD and the City expect to be pursuing a modification of its existing recycled water permits with the appropriate regulatory agencies (“Modified Permits”). The Modified Permits are required to be in place for SMWD to purchase the City’s recycled water, deliver the City’s recycled water to the Talega area, and to transport or store any recycled water pursuant to the City’s Trampas Capacity Right under Section 4.11. The City and SMWD shall coordinate and utilize best efforts to assist each other in procuring the Modified Permits not later than 30 months following the Effective Date of this Agreement.

4.3 Definition of City Recycled Water Quality Threshold. The City intends to construct an additional treatment facility (the “Advanced Water Treatment Facility” to reduce the Total Dissolved Solids (“TDS”) of the City recycled water produced at the Plant. SMWD shall require TDS of 800 mg/l or less for City recycled water to be used and stored in the SMWD system. As of the Effective Date of the Agreement, the City recycled water does not meet the maximum TDS 800 mg/l level (“Water Quality Threshold”).

4.4 Requirement to meet the Water Quality Threshold; Partial Agreement Termination.

The City commits to undertake best efforts to achieve the Water Quality Threshold. The City shall award a contract for the construction of an Advanced Water Treatment Facility at the Plant within 18 months following the Effective Date of this Agreement. Such contract shall be mutually acceptable to both the City and SMWD, as evidenced by mutual written concurrence.

Notwithstanding the foregoing, however, the City and SMWD may extend the 18-month timeframe by mutual written concurrence.

4.5 Recycled Water Purchase Option. The City hereby grants to SMWD the option to purchase one thousand (1,000) acre feet (AF) (“Base Purchase Amount”) of recycled water each year (“Base Purchase Option”). SMWD shall pay the Base Purchase Option amount annually on a “take or pay basis,” subject to the following conditions: If the Base Purchase Amount is produced and made available by the City, SWMD will pay the City for the full amount, irrespective of the actual quantity of Base Purchase recycled water SMWD may request for delivery. SMWD will not, however, be obligated to pay the Base Purchase Amount for recycled water to the extent the City is unable to produce or deliver such quantities at the desired TDS pursuant to the Modified Permits. 347
55411.00000\40655632.1
9 4.6 Right of First Refusal. In addition to the Base Purchase Option, SMWD will have the right of first refusal to purchase additional recycled water the City generates at the Plant in excess of the Base Purchase Amount and the recycled water the City uses for its own retail customers (“Excess Recycled Water”).

During the Term of this Agreement, no later than March 1 of each year, City will provide SMWD with an estimate of the Excess Recycled Water it anticipates having for delivery during the upcoming fiscal year. SMWD will have sixty (60) days to notify City in writing of its desire to purchase all or a portion of the Excess Recycled Water for the upcoming fiscal year. Any remaining portion of Excess Recycled Water not purchased by SMWD would remain subject to the City’s sole discretion for sale within the upcoming fiscal year. The amount of Excess Recycled Water that SMWD agrees to purchase will be referred to in this Agreement as the “Additional Recycled Water” and the City will deliver such Additional Recycled Water to SMWD during the upcoming fiscal year subject to availability based on actual influent flows.

SMWD acknowledges that the actual availability of Excess Recycled Water is based on an estimate of recycled water production and City retail customer demand, both of which may vary during the actual contract year. The purchase of Additional Recycled Water will be subject to all of the terms and conditions of this Agreement. The Base Recycled Water and the Additional Recycled Water shall be collectively referred to as the “Purchased Recycled Water” for a contract year.

4.7 Purchase Price for Recycled Water. Purchased Recycled Water shall be charged to SMWD based on the Base Purchase Amount, plus actual purchases of Excess Recycled Water on a per acre-foot basis, utilizing the City Invoice Process described in Section 2.3. The charges shall be based on certain of the City’s adopted budgeted costs in its recycled water system, as shown in further detail in Exhibit D. The charges will be based on the following components defined below:

A. Fixed Costs per AF
The Fixed Costs means those operating and maintenance costs and expenses that are incurred regardless of actual treatment capacity use. The schedule attached hereto as Exhibit D indicates the Fixed Costs based on the City’s current cost categories. Labor costs shall be based on the actual salary and benefit costs paid for all employees operating and maintaining the system. Equipment, materials, and supplies shall be charged at actual cost. Fixed Costs do not include the cost to construct the Advanced Water Treatment Facility, capital repairs and replacements of any sort, or any non-cash items such as depreciation, recognition of changes in pension liabilities, or any obsolescent charges or any reserves therefore, or amortization of intangibles or other bookkeeping entries of similar nature.

Fixed Costs per AF shall be calculated based on the total Fixed Costs in a given Contract Year divided by the system’s total recycled water production capacity.

Total production capacity is 4,932 acre-feet as of the Effective Date. 348
55411.00000\40655632.1
10 B. Variable Costs per AF
Variable Costs means those costs which are incurred for treating and moving of recycled water, including primarily costs for power, chemicals, other related volumetric-driven supplies and costs. The schedule attached hereto as Exhibit D indicates the Variable Costs based on the City’s current cost categories. To the extent the City’s Plant has a single power meter (covering both wastewater treatment and recycled water production), variable power costs shall be allocated appropriately to recycled water production.

Variable Costs per AF shall be calculated based on the total Variable Costs for a given Contract Year divided by the actual acre-feet of recycled water produced.

Variable Costs per AF shall be reduced by SMWD’s proportional share of production use for any rebates, subsidies, or other revenues received by the City for its production of recycled water, such as from the Local Resources Program of the Metropolitan Water District of Southern California unless they are directly attributed to SMWD.

For billing purposes, and subject to the City Invoice Process described in Section

2.3, the Variable Cost per AF may initially be based on the recycled water expected to be produced.

C. Annualized Capital Costs for Advanced Water Treatment Facility per AF (Base Purchase Option)
The City expects to construct an Advanced Water Treatment Facility to meet the Water Quality Threshold requirements described under Section 5.3 and to fund the Facility with grants and bond or loan financing. Debt service on said financing in any given Contract Year may be recovered as an “Annualized Capital Cost” as provided below.

To the extent the City funds any portion of the Facility construction with cash (excluding any grant funding), such cash funding shall be converted to an amortized annual amount and recovered as an Annual Capitalized Cost, subject to the Parties’ mutual written concurrence. To the extent SMWD pre-pays all or a portion of its share of Facility capital costs with cash up front, such cash contribution shall be converted to an amortized annual amount which shall offset SMWD’s Annualized Capital Cost Requirements, subject to the Parties’ mutual written concurrence.

SMWD’s share of Annualized Capital Costs shall be based on its proportionate share of Plant production, including its share of the Base Purchase Amount as calculated below. If SMWD purchases Additional Recycled Water, the costs of such Additional Recycled Water shall be calculated as provided in Subsection (D) below.

SMWD’s share of the Annualized Capital Costs for the Base Purchase Option shall be calculated based on the total Annualized Capital Costs of the Facility multiplied by a fixed 46.2% (based on the Base Recycled Water amount (1,000 AF) divided by the total Base Recycled Water plus the current recycled water produced for the City’s customers (approximately 1,165 AF)).
349
55411.00000\40655632.1
11 D. Annualized Capital Costs for Advanced Water Treatment Facility per AF – Additional Recycled Water
If SMWD purchases Additional Recycled Water in a given year, SMWD shall pay additional Annualized Capital Costs for such water. Because a fixed percentage of such costs are recovered over the Base Purchase Option, the remaining amount owed for Additional Recycled Water will be calculated as follows:
1) SMWD’s percentage of total Plant recycled water production shall be determined as the total Additional Recycled Water purchased plus the Base Purchase Option, divided by the total Plant production in the given year.
2) SMWD’s total Annualized Capital Cost obligation shall be the product of the City’s total Annualized Capital Costs of the Facility and the percentage determined under 1)
3) SMWD’s net remaining Annualized Capital Costs owed shall be the amount determined under 2), reduced by the Annualized Capital Costs attributable to the Base Purchase Option.
4) SMWD’s net remaining Annualized Capital Costs determined under 3) shall be divided by the acre-feet of Additional Recycled Water purchased and included as a cost for the Additional Recycled Water.

The price for City recycled water paid by SMWD will depend on the total quantity delivered over a Contract Year based on the following formula:
• Tier 1 – Base Purchase Option
o Per AF for First 1,000 AF = [A] + [B] + [C]
• Tier 2 – Additional Recycled Water
o Per AF for Next 1,400 AF = [A] + [B] + [D]

4.8 Capital Repair and Replacement Costs for Advanced Water Treatment Facility.

In addition to its payments for recycled water described above, in accordance with Section

4.9 below, SMWD shall make a one-time payment to the City for SMWD’s proportionate share of capital repair and replacement projects related to the Advanced Water Treatment Facility, primarily expected to include membrane and filter replacements. The proportionate share shall be fixed at 46.2%, which is based on the Base Recycled Water amount (1,000 AF) divided by the total Base Recycled Water plus the current recycled water produced for the City’s customers (approximately 1,350 AF). Upon the completion of the Advanced 350
55411.00000\40655632.1
12 Water Treatment Facility, SMWD shall provide the City with an initial deposit of $30,000, which the City will deposit into a Short-Term Working Capital Fund (Fund). Additional funding required by SMWD for the Fund shall be determined annually based on an expected list of such repair and replacement projects developed by the City and agreed to by SMWD.

4.9 Existing System Capital Contribution.

No later than 60 days following the effective date, SMWD shall pay City $1,100,000 to fund future capital repair and replacement projects for the existing recycled water treatment facilities for the following thirty (30) years. The City may use these funds for capital repair and replacement at its discretion. However, if the City is unable to deliver the Base Purchase Right of 1,000 AF of recycled water to SMWD, it will repay SMWD three (3) percent of the original payment per year that Base Purchase Right is not delivered on each July 1 through and including 2052. If the project is not built, the City will repay SMWD $1,100,000 within 60 days upon written notice from SMWD 36 months after the Agreement is approved.

4.10 Delivery of Recycled Water.

4.10.1 SMWD will be responsible for all costs associated with the interconnection of the SMWD recycled water system with the City’s recycled water system. The City will be responsible for delivery of recycled water to the interconnection point with SMWD’s recycled water system pressurized from Reservoir 11 or equal. SMWD will be responsible for delivery from the interconnection to its customers or to storage.

Delivery of recycled water from the City to SMWD will be provided when there is capacity within the City’s system. During high demand periods throughout the summer months, the City may limit the delivery of recycled water to SMWD, but only as necessary to deliver water to City’s retail customers. City will provide SMWD with an estimate of delivery restrictions prior to the beginning of each month. The City and SMWD will communicate through a mutual control and communications system, which will be how the City indicates the volume per day of recycled water available, and how SMWD will indicate its daily call for recycled water. SMWD will operate the SMWD system such that a minimum water surface elevation in Reservoir 11 is maintained.

4.10.2 Recycled water delivered from the City to SMWD or from SMWD to City shall be measured at the interconnection point. The meters shall be calibrated for accuracy annually or at a mutually agreed upon lesser or greater frequency. Recycled water flow measuring shall be accurate within 5% of actual flow throughout the anticipated flow range.

4.11 Trampas Reservoir Capacity.

As additional consideration for the obligations of the City pursuant to this Section 4, and notwithstanding the Term of this Agreement, SMWD hereby grants to the City a right to storage capacity in the Trampas Reservoir of two hundred (200) AF (“Trampas Capacity Right”) for the useful life of the Reservoir. The City shall pay for the first one hundred (100) AF of this Capacity Right with a one-time capital contribution payment of $3,100,000 no later than sixty (60) days following the Effective Date. .Notwithstanding the Term of this Agreement, the City 351
55411.00000\40655632.1
13 shall retain its ownership of the first 100 AF of the Capacity Right for the useful life of the reservoir.

SMWD may use these funds at its discretion. However, if SMWD, once the Modified Permit is effective, is unable to store and transmit the City recycled water as contemplated under City’s Trampas Capacity Right, SMWD shall repay the City three (3) percent of the original payment per year that capacity is not provided on each July 1 through and including 2052. If the advanced recycled water quality project is not built, SMWD will repay the City $3,100,000 within 60 days upon written notice from SMWD 36 months after the Agreement is approved. .The City’s ledger for water delivered and stored in Trampas Reservoir will be subject to adjustment for losses incurred as a result of evaporation on an annual basis based on (i) data maintained and updated from time to time by SMWD; or (ii) such factors for evaporation loss as are generally utilized and accepted for use by public water agencies in the State of California.

At the signing of the agreement evaporation losses are estimated at 8%, annually.

4.12 Cost Allocations – Trampas and Recycled Water Conveyance System. The City will make quarterly payments to SMWD to cover its allocable share of the operational costs for the Trampas Reservoir, conveyance system, and pumping facilities. SMWD will provide the City with quarterly invoices basis, based on actual costs and operational usage, which shall include detailed backup information. The City will pay all invoices within thirty (30) days of receipt.

Payments shall be determined as follows:
i. Trampas Reservoir Storage Fee (Fixed, Variable, and Capital Components)
The City will pay fixed operating and maintenance costs for its proportionate share such costs based on its first 100 AF (2%) of capacity right. (Fixed operating and maintenance costs and expenses include those incurred regardless of actual use, including labor, equipment, materials and supplies, excluding any non-cash items such as depreciation, recognition of changes in pension liabilities, or any obsolescent charges or any reserves therefore, or amortization of intangibles or other bookkeeping entries of similar nature).

The City will pay variable operating and maintenance costs based on its proportionate share of water stored in Trampas Reservoir. Variable operating and maintenance costs will include those incurred for the storing and moving of water which are dependent on the quantity of water, for example costs of power, chemicals, and other material and supplies.

The City will also pay its proportionate share of capital repair and replacement costs at the Trampas Reservoir proportionate to its first 100 AF of capacity. ii. Pico Recycled Water Pump Station Costs (Power, Fixed, and Capital Components)
The City will pay for power costs based on its percentage share of actual metered water. 352
55411.00000\40655632.1
14 The City will pay for fixed operation and maintenance costs based on its ownership percentage of 24%, as described in Section 5. (Fixed operating and maintenance costs and expenses include those incurred regardless of actual use, including labor, equipment, materials and supplies, excluding any non-cash items such as depreciation, recognition of changes in pension liabilities, or any obsolescent charges or any reserves therefore, or amortization of intangibles or other bookkeeping entries of similar nature).

The City will pay for its proportionate share of capital repair and replacement costs based on its ownership percentage of 24%

4.13 Option to Repurchase. To the extent that SMWD has stored water purchased from the City in the Trampas Reservoir or another SMWD storage facility that SMWD has not contractually committed to provide to SMWD customers, the City will have the option, during a water emergency or such other event to be agreed upon with SMWD, to repurchase recycled water from SMWD in any given water year. The amount of recycled water that City repurchases and leaves in storage will be subject to adjustment for transportation and evaporation losses as determined pursuant to Section 4.11. The price for repurchased water will be the price paid by SMWD for the last tier of water acquired in the most recent calendar year as described in Section 4.7.D, plus the actual cost to deliver the recycled water back to the interconnection point with the City’s recycled water system. The quality of the repurchased water will be the quality of water held in the Trampas Reservoir.

5. Projects Under Construction and Future Coordination.

Pico Recycled Water Pump Station. SMWD has completed construction of the Pico Recycled Water Pump Station, which will facilitate the conveyance of recycled between the City and SMWD. The Pump Station consists of three pumps, one of which will specifically facilitate the City’s needs to provide recycled water service an area known as Bella Collina. In order for SMWD to provide recycled water from SMWD to the City, two pressure reducing valves have been incorporated into this pump station. The City shall pay SMWD $611,800 for an ownership share of 24% of the of the Pico Recycled Water Pump Station no later than sixty (60) days following the date that SMWD completes the project and provides the City with an invoice for its share of the final project costs. Notwithstanding the Term of this Agreement, the City shall retain its ownership in its share of the pump station for the useful life of the pump station. If the advanced recycled water quality project is not built, SMWD will repay the City $611,800 within 60 days upon written notice from SMWD 36 months after the Agreement is approved.

5.1 Coordination on Communication Systems. The City and SMWD contemplate coordinating the installation of mutually beneficial data gathering and telecommunication systems, such as antennae, metering, or other monitoring devices. The systems are intended to share information on the availability and movement of recycled water within the Talega Area, and to track usage and costs at the Pico Recycled Water Pump Station. The City and SMWD expect to grant mutual access to their respective facilities to install such systems in the area, as may be needed, to facilitate this mutually beneficial objective. SMWD will pay the cost for an antennae and installation on an existing tower at the City’s Reservoir 9 facility to complete a communications link between the City and the District for coordination of water recycled water 353
55411.00000\40655632.1
15 deliveries between the City and SMWD, and other operational communications. The antennae shall be acceptable to the City. The antennae is expected to be approximately 36-inch by 4- inch by 4-inch, with cable to switch box cabinet 16-inch by 12-inch by 6-inch. The City shall provide 120-volt ac power maximum 5 amps. Additional communications for the benefit of the City or the District may be provided through this antennae or other City or District facilities if mutually agreed upon.

5.2 Coordination on Mutually Beneficial Power Rates and Costs. The City and SMWD contemplate coordinating and pursuing the most advantageous power rates and costs for the Pico Recycled Water Pump Station and all other SMWD facilities related to the wastewater and recycled water intertie with the City in the Talega Area. The parties contemplate that, to the extent cost savings can be generated on facilities which the City does not pay a proportionate share of costs, the City would be entitled to receive up to 30% of such savings, in the form of an annual credit to charges owed to SMWD.

5.3 Financing of City Treatment Facility. The City contemplates constructing a new treatment facility adjacent to the Plant in order to meet the Water Quality Threshold, as discussed under Section 4. In the event the City seeks outside financing for the costs to construct the treatment facility, the Parties contemplate that SMWD and the City may seek to develop a mutually acceptable loan or financing arrangement. SMWD may consider loaning the City all or portion of the necessary funds, subject to repayment and legal provisions to be approved by the Parties’ governing bodies.

6. City Purchase of SMWD Recycled Water.

6.1 Definition of SMWD Recycled Water. For the purposes of this Agreement, “SMWD Recycled Water” will be liquid effluent which SMWD produces, stores, and delivers to the City for non-potable use as further defined in Title 22 of the California Code of Regulations.

6.2 Quantity of SMWD Recycled Water available to the City. For a period not to exceed 30 months from the effective date, the City shall inform SMWD, by March 1 of each year of its anticipated purchases for the upcoming Fiscal Year commencing July 1. SMWD commits to supply the City up to 200 AF of SWMD recycled water within each Fiscal Year. The quantity and timing requested of delivery of SMWD recycled water shall be at the discretion of the City but shall be subject to the delivery provisions and availability in Section 6.4. The purchase terms contained in Section 6 may be extended beyond the initial 30-month period, subject to mutual written agreement by the City and SMWD.

6.3 Purchase Price for SMWD Recycled Water. The City shall pay for water delivered based on the then-current SMWD recycled water rate charged for uniform commercial users ($2.51 per ccf or approximately $1,093 per AF as of January 1, 2022). SMWD shall provide the City with monthly invoices and payment shall be due within 30 days.

6.4 Delivery of Recycled Water by SMWD. SMWD will be responsible for delivery of SMWD recycled water to the interconnection point with SMWD’s recycled water system pressurized to the City upper pressure zone. Delivery of SMWD recycled water to the City will be provided when there is capacity within SMWD’s system, as determined by SMWD. 354
55411.00000\40655632.1
16 During high demand periods throughout the summer months, SMWD may limit the delivery of recycled water the City, but only as necessary to deliver water to SMWD’s retail customers. SMWD will provide the City with an estimate of delivery restrictions prior to the beginning of each month. The City and SMWD will communicate through a mutual control and communications system or other methods as may be mutually agreed upon.

6.5 Recycled water delivered from SMWD to City shall be measured at the interconnection point. The meters shall be calibrated for accuracy annually or at a mutually agreed upon lesser or greater frequency. Recycled water flow measuring shall be accurate within 5% of actual flow throughout the anticipated flow range.

7. Indemnity and Liability Provisions.

7.1 Indemnity by SMWD. SMWD hereby agrees, at its sole cost and expense, to indemnify, protect, hold harmless and defend City, its elected officials, officers, employees, agents, successors and assigns (collectively, the “SMWD Indemnified Parties”) from and against any and all claims, demands, damages, losses, liabilities, obligations, penalties, fines, actions, causes of action, judgments, suits, proceedings, costs, disbursements and expenses (including, without limitation, fees, disbursements and cost of attorneys, consultants and experts) (collectively "Damages") which may at any time be imposed upon, incurred, or suffered by, or asserted or awarded against, any SMWD Indemnified Party directly or indirectly relating to or arising from (i) the breach of the obligations of SMWD under this Agreement; (ii) the operation of the SMWD System; or (iii) the acceptance and treatment of wastewater from SMWD that is non-conforming with the quality requirements for wastewater set forth herein. This indemnity shall not apply to any Damages or Third Party Claims which result from the failure of the City to properly treat wastewater which conforms with the terms of this Agreement.

7.2 Indemnity by City. City hereby agrees, at its sole cost and expense, to indemnify, protect, hold harmless and defend SMWD, its elected officials, officers, employees, agents, successors and assigns (collectively, the “City Indemnified Parties”) from and against any and all Damages which may at any time be imposed upon, incurred, or suffered by, or asserted or awarded against, any City Indemnified Party directly or indirectly relating to or arising from (i) the breach of the obligations of City under this Agreement; (ii) the operation of the City System and the Plant; or (iii) the supply of recycled water to SMWD that does not meet the quality requirements for recycled water as described in this Agreement. This indemnity shall not apply to any Damages or Third Party Claims which are the responsibility of SMWD pursuant to Section 6.1.

7.3 Defense of Third Party Claims. Promptly following receipt of any written claim or legal proceeding asserted by a person or entity which is not a party to this Agreement (a “Third Party Claim”), the indemnified parties shall notify the indemnifying party. The indemnifying party shall have a period of 30 days (or such lesser period as may be required to timely respond to a Third Party Claim) following the receipt of such notice to undertake and diligently pursue the defense of the Third Party Claim with legal counsel reasonably acceptable to the indemnified parties. The indemnifying party shall reimburse the indemnified parties for any legal expense reasonably incurred by indemnified parties to 355
55411.00000\40655632.1
17 timely respond to a Third Party Claim prior to the indemnifying party assuming the defense thereof. The indemnifying party shall not consent to entry of judgment or enter into any settlement agreement, without the consent of the indemnified parties, which does not include a complete and unconditional release of the indemnified parties or which imposes injunctive or other equitable relief against the indemnified parties. If the indemnifying party fails to assume and diligently pursue the defense of a Third Party Claim, the indemnified parties may defend against such Third Party Claim in such manner as it may deem appropriate, including without limitation settlement thereof on such terms as the indemnified parties may reasonably deem appropriate, and to pursue such remedies as may be available to the indemnified parties against the indemnifying party.

8. Termination and Remedies. In the event of a material breach of any material term or provision of this Agreement by either party, and such breach is not cured within ninety (90) days after service of written notice of such breach upon the breaching party, then the non-breaching party shall have the right and option to terminate this Agreement, provided, however, that should the breaching party, prior to the expiration of the ninety (90) day cure period, diligently commences to cure such breach, but is unable to do so within the ninety (90) day period, then such period shall be extended for an additional ninety (90) day period. Default on the any of the following obligations shall not constitute a material breach of the Agreement and shall be subject to the specific remedies corresponding to these minor defaults, as described in the sections cited below:

8.1 The following shall be cause for termination of Section 4 of this Agreement by either Party and subject exclusively to the remedy of return of capital as prescribed under Sections

4.9, 4.11, and 5.1 within 30 days following termination:

8.1.1 The City’s and SMWD’s commitment to obtain Modified Permits as described in Section 4.2,

8.1.2 The City’s failure to award a contract for the construction of an Advanced Water Treatment Facility at the Plant within 18 months following the Effective Date Section 4 of the Agreement, which deadline may be extended by mutual written agreement of the Parties;

8.1.3 The City’s failure to complete the Advanced Water Treatment Facility within 36 months of the Approval of this Agreement;

8.1.4 The City’s commitment to achieve the Water Quality Threshold as described in Section 4.4;

8.1.5 The City’s commitment to deliver 1,000 AF of recycled water to SMWD pursuant to Section 4.5;

8.2 SMWD’s commitment to make Trampas Reservoir capacity available to the City pursuant to Section 4.11, subject exclusively to the remedies provided therein.

Except as noted above, each Party shall have all of the remedies available at law or equity for a breach of this Agreement by the other Party. Such remedies will include the remedy of 356
55411.00000\40655632.1
18 specific performance to enforce the terms of this Agreement. Notwithstanding the foregoing, neither Party shall be liable to the other for any special, indirect or consequential damages of any kind resulting from a breach of this Agreement, whether or not such damages were reasonably foreseeable by the other party.

8.3 Replacement of City Water Reclamation Plant, Los Molinos Pump Station and Pico Trunk Sewer Line. If during the Term it becomes necessary to do a major renovation or replacement of the Plant, the Los Molinos Pump Station or the Pico Trunk Sewer Line either as a result of a force majeure event or such facilities reaching the end of their normal design life, then City will give SMWD written notice of the need to undertake such renovation or replacement and SMWD will have the option to terminate the Agreement, continue a service arrangement on new terms agreed upon by the parties, or buy into the capacity of the Plant or other such facilities by paying its proportional share of the cost of such renovation or replacement. If SMWD has not given written notice of its election to the City within one hundred eighty (180) days of receipt of the City’s notice, then SMWD will be deemed to have elected to terminate.

9. California Law. In the event of a breach of any term or provision of this Agreement by either party, both parties shall have all rights and remedies granted by California law. Nothing contained in this Agreement shall be construed as limiting any of the rights and remedies of either party upon any breach of a term or provision of this Agreement.

10. Force Majeure. If by reason of acts of God, earthquakes, droughts, floods, storms, explosion, fires, labor troubles, strikes, insurrection, riots, acts of the public enemy, or federal, state, or local law, order, rule, or regulation, a Party is prevented, in whole or in part, from fulfilling its obligations under this Agreement, then such Party shall be excused from such non-performance for such reasonable period as is necessary to restore performance provided that the non-performing party is working diligently to mitigate the conditions created by the force majeure. Notwithstanding the foregoing, if the force majeure continues for a period in excess of one hundred eighty (180) days, then the other Party may terminate this Agreement.

11. Entire Agreement. This Agreement constitutes the entire agreement and understanding of the parties hereto with respect to the subject matter hereof and supersedes all prior agreements and understandings, both written and verbal, between the parties with respect to the subject matter hereof.

12. Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties thereto and their successors and assigns. The Agreement may not be assigned by either party without the prior written consent of the other party.

13. Amendments. This Agreement may not be amended, altered or modified except in writing signed by the parties hereto. No waiver by either party of any breach by the other party of any provisions of this Agreement shall be construed as a waiver of any subsequent breach, whether of the same or of any different provision of this Agreement. No course of conduct or series of dealings shall constitute a waiver hereunder.
357
55411.00000\40655632.1
19 14. Notice. In the event that written notice must or may be given hereunder, such notice shall be sent via a commercial overnight courier such as Federal Express or UPS to the other party at the following address or such other address as a party may notify the other in writing:

If to City: Utilities Director
City of San Clemente
380 Avenida Pico, Building N
City of San Clemente, CA 92672
If to SMWD: General Manager
Santa Margarita Water District
26111 Antonio Parkway
Rancho Santa Margarita, CA 92688
Notice shall be sent to the above referenced persons unless the parties are otherwise notified in writing of a change in the name or address of the person to be notified.

15. Governing Law. This Agreement shall be governed by and construed under the laws of the State of California and venue for any action arising out of this Agreement shall be in the Superior Court of the State of California located in the County of Orange.

16. Attorney's Fees and Costs. The prevailing party in any action brought to enforce the terms of this Agreement in court or arbitration shall be entitled to an award of its reasonable attorney's fees and costs, including without limitation, the costs of discovery and expert witnesses in connection with any such action.

Signature Page Follows
358
55411.00000\40655632.1
20 IN WITNESS WHEREOF, the parties hereto have by their duly authorized officers or representatives executed this Agreement all on the day and year first above written.

CITY OF SAN CLEMENTE
Dated: _______________ By:__________________________
Its: __________________________
ATTEST:
_________________________________
City Clerk of the City of
San Clemente, California

SANTA MARGARITA WATER

DISTRICT
Dated: ________________ By:__________________________
Its:__________________________
ATTEST:
_________________________________
Board Secretary of the
Santa Margarita Water District
359
City Sewer Fund (472) Cost Items* Cost
Categories
FY 2023
Amounts
Allocation
Basis
Allocation % SMWD Share
472-41010-000-00000 SALARIES, REGULAR FULL TIME Personnel $796,953 Capacity 9.3% $74,321 472-41030-000-00000 SALARIES, HOURLY PART TIME Personnel $0 Capacity 9.3% $0 472-41310-000-00000 REGULAR OVERTIME Personnel $0 Capacity 9.3% $0 472-41320-000-00000 PREMIUM OVERTIME - REGULAR Personnel $83,835 Capacity 9.3% $7,818 472-41330-000-00000 HOLIDAY PAY Personnel $0 Capacity 9.3% $0 472-41350-000-00000 ACCRUED LEAVE PAYOFF Personnel $5,283 Capacity 9.3% $493 472-41410-000-00000 EDUCATION INCENTIVE PAY Personnel $256 Capacity 9.3% $24 472-41460-000-00000 ASSIGNMENT PAY Personnel $50,642 Capacity 9.3% $4,723 472-41535-000-00000 PHONE ALLOWANCE Benefits $275 Capacity 9.3% $26 472-41710-000-00000 EDUCATIONAL REIMBURSEMENT Benefits $6,793 Capacity 9.3% $633 472-41951-000-00000 FICA Benefits $57,345 Capacity 9.3% $5,348 472-41954-000-00000 MEDICARE Benefits $13,656 Capacity 9.3% $1,274 472-41957-000-00000 STATE DISABILITY INSURANCE Benefits $9,991 Capacity 9.3% $932 472-41958-000-00000 A.D.& D. INSURANCE Benefits $133 Capacity 9.3% $12 472-41959-000-00000 LONG TERM DISABILITY INSURANCE Benefits $2,739 Capacity 9.3% $255 472-41961-000-00000 STATE UNEMPLOYMENT INSURANCE Benefits $2,063 Capacity 9.3% $192 472-41963-000-00000 WORKERS COMPENSATION INS. Benefits $42,783 Capacity 9.3% $3,990 472-41965-000-00000 LIFE INSURANCE Benefits $1,595 Capacity 9.3% $149 472-41967-000-00000 MEDICAL INSURANCE Benefits $150,466 Capacity 9.3% $14,032 472-41975-000-00000 SAN CLEMENTE RETIREMENT PREM. Benefits $82,724 Capacity 9.3% $7,715 472-41976-000-00000 RETIREMENT PREMIUM (LEGACY) Benefits $69,100 Capacity 9.3% $6,444 472-41977-000-00000 RETIREMENT PREM-CALPERS (UAL) Benefits $34,350 Capacity 9.3% $3,203 472-41978-000-00000 RETIREMENT EXPENSE Benefits $244,565 N/A 0.0% $0 472-41984-000-00000 DEFERRED COMPENSATION - P/T Benefits $0 Capacity 9.3% $0 472-42010-000-00000 OFFICE SUPPLIES Operations $0 Capacity 9.3% $0 472-42030-000-00000 POSTAGE Operations $0 Capacity 9.3% $0 472-42150-000-00000 CHEMICAL SUPPLIES Operations $292,410 Volume 18.2% $53,240 472-42170-000-00000 LABORATORY SUPPLIES Operations $19,130 Capacity 9.3% $1,784 472-42190-000-00000 JANITORIAL SUPPLIES Operations $0 Capacity 9.3% $0 472-42280-000-00000 PROTECTIVE SUPPLIES Operations $7,809 Capacity 9.3% $728 472-42360-000-00000 EDUCATIONAL MATERIAL Operations $168 Capacity 9.3% $16 472-42380-000-00000 OFFICE FURNITURE/EQUIPMENT (NON-CAP) Operations $99 Capacity 9.3% $9 472-42390-000-00000 SMALL TOOLS AND EQUIPMENT Operations $7,180 Capacity 9.3% $670 472-42410-000-00000 CLOTHING AND UNIFORMS Operations $999 Capacity 9.3% $93 472-42490-000-00000 OTHER OPERATING SUPPLIES Operations $45,056 Volume 18.2% $8,204 472-42530-000-00000 PAINTING SUPPLIES Operations $0 Capacity 9.3% $0 472-42590-000-00000 OTHER MAINTENANCE SUPPLIES Operations $90,664 Capacity 9.3% $8,455 472-42610-000-00000 PURCHASED WATER Operations $195,291 Capacity 9.3% $18,212 472-43050-000-00000 PRINTING AND BINDING Operations $0 Capacity 9.3% $0 472-43060-000-00000 TRAVEL AND TRAINING Operations $4,358 Capacity 9.3% $406 472-43320-000-00000 NATURAL GAS Operations $28,040 Volume 18.2% $5,105 472-43330-000-00000 ELECTRICITY Operations $638,414 Volume 18.2% $116,238 472-43340-000-00000 WATER Operations $5,988 Capacity 9.3% $558 472-43370-000-00000 LANDFILL FEES Operations $373,775 Volume 18.2% $68,054 472-43410-000-00000 MAINTENANCE OF BUILDINGS Operations $374 Capacity 9.3% $35 472-43440-000-00000 MAINTENANCE OF AUTO EQUIPMENT Operations $0 Capacity 9.3% $0 472-43450-000-00000 MAINTENANCE OF OPERATING EQUIP Operations $148,026 Volume 18.2% $26,952 472-43690-000-00000 OTHER PROFESSIONAL SERVICES Operations $19,097 Capacity 9.3% $1,781 472-43730-000-00000 RENTAL OF EQUIPMENT Operations $13,530 Capacity 9.3% $1,262 472-43890-000-00000 OTHER CONTRACTUAL SERVICES Operations $35,970 Volume 18.2% $6,549 472-44110-000-00000 DUES AND SUBSCRIPTIONS Operations $4,520 Capacity 9.3% $422 472-44260-000-00000 LICENSES AND PERMITS Operations $29,219 Capacity 9.3% $2,725 472-44800-000-00000 DEPRECIATION Non-cash $1,415,654 N/A 0.0% $0 472-44801-000-00000 DEPREC. RESERVE CONTRIBUTION Non-cash $200,000 N/A 0.0% $0 472-45500-000-00000 MACHINERY & EQUIPMENT Operations $0 Capacity 9.3% $0 472-46080-000-00000 INFORMATION TECHNOLOGY CHARGES Operations $108,100 Capacity 9.3% $10,081 472-46110-000-00000 COMMUNICATIONS CHARGES Operations $3,710 Capacity 9.3% $346 472-46130-000-00000 FLEET RENTAL CHARGES Operations $102,700 Capacity 9.3% $9,577 472-46510-000-00000 GENERAL FUND OVERHEAD CHARGES Operations $277,990 Capacity 9.3% $25,924 472-47130-000-00000 TRANSFER TO FLEET MAINT. FUND Operations $0 Capacity 9.3% $0 Totals $5,723,819 Total SMWD Share $499,010
SMWD Quarterly Invoice Amount $124,753
Allocation Basis Calculations (Initial) Component
Type
% Allocation SMWD Flows
(MGD)
City Flows
(MGD)
City Treatment
Plant Capacity
SMWD Share of Treatment Capacity Capacity 9.3% 0.65 NA 6.97 SMWD Share of Treatment Flows Volume 18.2% 0.65 2.92 NA SMWD Share of Treatment Loadings Loadings 18.2% 0.65 2.92 NA Percentages in "% Allocation column" will fluctuate each year based on actual SMWD and City Flows. *Cost items indicated are based on City's current cost detail and are intended to illustrate the methodology governed by the Agreement.

Cost items and classifications may evolve over time based on City accounts and accounting practices.

Exhibit A - Leased Wastewater Costs
360
i. Los Molinos Pump Station - Operating Costs - Initial Calculation Basis Subsequent annual amounts will be based on actual costs and usage as defined in the Agreement.

Operating Cost Components FY 2021 Data Calculation Basis / Notes Power $21,120 Actual Flows and Actual Costs
O&M based on Work Order Costs $7,209 SMWD Capacity Share and Actual Costs 5% Escalation Factor $1,416
Total Year One Amount* $29,745
Quarterly invoice amount $7,436
*Subject to year-end true-up under City Invoice Process. Future amounts subject to change based on actual data and estimates. ii. Los Molinos Pump Station - Capital Contribution - Initial Year Calculation Basis / Illustrative Only Subsequent annual amounts increase annually as defined in the Agreement.

Equipment Life Replacement Annual Capacity Flow Discount / SMWD Cost Cost Ratio Adjustment Share*
Concrete 50 $2,300,000 $46,000 25.80% 50% $5,934
Electrical equipment 20 $1,250,000 $62,500 25.80% 50% $8,063 Pumps & motors 5 $200,000 $40,000 25.80% 0% $10,320
Piping 50 $2,000,000 $40,000 25.80% 50% $5,160
Totals $5,750,000 $188,500 $29,477
Total Year 1 Amount (+5%) $30,950
Quarterly invoice amount $7,738
iii. Pico Trunk Sewer Line Costs - Initial Year Calculation Basis / Illustrative Only Subsequent annual amounts increase annually as defined in the Agreement.

Pico Trunk Sewer Line Capital Calculation
Cost per SMWD Percent Flow
Sewer Pipeline Description: Length *Cost/LF (liner) Liner Life year 67% 11,700 linear feet Transmission main 11,700 $ 125 1,467,937 75 $19,572 $13,126 *escalated to January 2022 dollars Total Year 1 Amount $13,126 Quarterly invoice amount $3,282
Capacity Based on Flow
Pipeline Reach CSC Ave. SMWD Ave. CSC Share % SMWD Share % SC001 0.13 0.65 0.17 83%
SC002 0.26 0.65 0.29 71%
SC003 0.4 0.65 0.38 62%
SC006 0.61 0.65 0.48 52%
Average 0.33 67%
* Costs calculated based on estimated annualized replacement cost multiplied by capacity or flow (pumps and motors) with a 50% discount rate due to limited wear and tear on equipment from the City receiving additional flow.

Exhibit B - Los Molinos Pump Station and Pico Trunk Sewer Line Costs 361
City Sewer Administration Fund (471) Cost Items* Initial City Amounts
Agreement
Reduction
Agreement
Reductions
Agreement FY
2023 Amounts
$347,261 Utility Director $127,899 $219,362
$0 $0
$85 $85
$7,868 $7,868
$2,100 $2,100
$292 $292
$18,708 $18,708
$5,061 $5,061
$3,255 $3,255
$66 $66
$1,125 $1,125
$772 $772
$7,646 $7,646
$807 $807
$52,370 $52,370
$32,431 $32,431
$29,890 $29,890
$0
$3,883 $3,883
$986 $986
$1,669 $1,669
$645 $645
$0 $0
471-42380-000-00000 OFFICE FURNITURE/EQUIPMENT (NON-CAP) $620 $620 $3,728 $3,728
$130 $130
$371 $371
$949 $949
$176,182 $176,182
$0 $0
$4,222 $4,222
$41,809 $41,809
$0 $0
$168,195 Utility Billing $127,899 $40,296
$21,830 $21,830
$2,549 $2,549
$2,292 $2,292
$2,428 $2,428
$6,976 $6,976
$182,377 SOCWA / Billing $176,111 $6,266
$0 $0
$1,655 $1,655
$598 $598
$750 $750
$210,770 $210,770 471-46050-000-00000 POSTAGE CHARGES $0 $0 471-46060-000-00000 DUPLICATING CHARGES $1,050 $1,050 471-46080-000-00000 INFORMATION TECHNOLOGY CHARGES $26,090 $26,090 471-46110-000-00000 COMMUNICATIONS CHARGES $19,930 $19,930 471-46130-000-00000 FLEET RENTAL CHARGES $7,510 $7,510 471-46340-000-00000 CHARGES FROM PARKS MAINTENANCE $0 $0 471-46510-000-00000 GENERAL FUND OVERHEAD CHARGES $124,260 Utility Billing $108,919 $15,341 Totals $1,524,190 $ 540,828 $ 983,361
*Cost items indicated are based on City's current cost detail and are intended to illustrate the methodology governed by the Agreement.

Cost items and classifications may evolve over time based on City accounts and accounting practices. $983,361
58%
$570,350

9.33%
$53,189
$13,297
471-41530-000-00000 AUTO ALLOWANCE
Exhibit C - Administrative Costs
471-41010-000-00000 SALARIES, REGULAR FULL TIME
471-41030-000-00000 SALARIES, HOURLY PART TIME
471-41320-000-00000 PREMIUM OVERTIME - REGULAR
471-41350-000-00000 ACCRUED LEAVE PAYOFF
471-41976-000-00000 RETIREMENT PREMIUM (LEGACY)
471-41535-000-00000 PHONE ALLOWANCE
471-41951-000-00000 FICA
471-41954-000-00000 MEDICARE
471-41957-000-00000 STATE DISABILITY INSURANCE
471-41958-000-00000 A.D.& D. INSURANCE
471-41959-000-00000 LONG TERM DISABILITY INSURANCE
471-41961-000-00000 STATE UNEMPLOYMENT INSURANCE
471-41963-000-00000 WORKERS COMPENSATION INS.
471-41965-000-00000 LIFE INSURANCE
471-41967-000-00000 MEDICAL INSURANCE
471-41975-000-00000 SAN CLEMENTE RETIREMENT PREM.
471-42130-000-00000 MEDICAL SUPPLIES
471-42360-000-00000 EDUCATIONAL MATERIAL
471-42410-000-00000 CLOTHING AND UNIFORMS
471-42490-000-00000 OTHER OPERATING SUPPLIES
471-41984-000-00000 DEFERRED COMPENSATION - P/T
471-42010-000-00000 OFFICE SUPPLIES
471-42030-000-00000 POSTAGE
471-42050-000-00000 DATA PROCESSING SUPPLIES
471-43690-000-00000 OTHER PROFESSIONAL SERVICES
471-43050-000-00000 PRINTING AND BINDING
471-43060-000-00000 TRAVEL AND TRAINING
471-43120-000-00000 PROPERTY INSURANCE
471-43410-000-00000 MAINTENANCE OF BUILDINGS
471-43420-000-00000 MAINTENANCE OF IMPROVEMENTS
471-43425-000-00000 MAINTENANCE OF LANDSCAPING
471-43450-000-00000 MAINTENANCE OF OPERATING EQUIP
471-43456-000-00000 MAINT. OF COMPUTER SOFTWARE
471-43480-000-00000 CONTRACTED CUSTODIAL SERVICES
471-43565-000-00000 ANSWERING SERVICE
471-43640-000-00000 OTHER LEGAL SERVICES
471-46030-000-00000 INSURANCE CHARGES
471-44260-000-00000 LICENSES AND PERMITS
471-44800-000-00000 DEPRECIATION
471-43750-000-00000 RENTAL OF UNIFORMS
471-43890-000-00000 OTHER CONTRACTUAL SERVICES
471-44015-000-00000 FINES & CITATIONS
471-44110-000-00000 DUES AND SUBSCRIPTIONS

6. Quarterly Invoice Amount (Step 5 *25%).

Steps for Allocating Administrative Costs to SMWD:

1. Determine applicable total amount, after deducting certain components as above.

2. Determine the proportion of the City's Treatment Costs (Fund 472) to the City's total Treatment Costs (472) + Collection System Costs (473).

3. Multiple the Step 1 amount by Step 2 percentage

4. Determine SMWD's share of City Plant treatment capacity (See Exhibit A)

5. Multiple Step 3 by Step 4 to get SMWD's share of Administrative Costs. 362
City Water Reclamation Fund (465) Cost Items* FY 2023 Amounts Cost Categories Allocation Basis Agreement Costs 465-41010-000-00000 SALARIES, REGULAR FULL TIME $265,180 Personnel Fixed Costs $265,180 465-41030-000-00000 SALARIES, HOURLY PART TIME $0 Personnel Fixed Costs $0 465-41310-000-00000 REGULAR OVERTIME $0 Personnel Fixed Costs $0 465-41320-000-00000 PREMIUM OVERTIME - REGULAR $33,613 Personnel Fixed Costs $33,613 465-41321-000-00000 PREMIUM OVERTIME - PART-TIME $0 Personnel Fixed Costs $0 465-41330-000-00000 HOLIDAY PAY $0 Personnel Fixed Costs $0 465-41350-000-00000 ACCRUED LEAVE PAYOFF $1,867 Personnel Fixed Costs $1,867 465-41410-000-00000 EDUCATION INCENTIVE PAY $45 Personnel Fixed Costs $45 465-41460-000-00000 ASSIGNMENT PAY $15,038 Personnel Fixed Costs $15,038 465-41535-000-00000 PHONE ALLOWANCE $49 Personnel Fixed Costs $49 465-41951-000-00000 FICA $18,888 Benefits Fixed Costs $18,888 465-41954-000-00000 MEDICARE $4,511 Benefits Fixed Costs $4,511 465-41957-000-00000 STATE DISABILITY INSURANCE $3,326 Benefits Fixed Costs $3,326 465-41958-000-00000 A.D.& D. INSURANCE $47 Benefits Fixed Costs $47 465-41959-000-00000 LONG TERM DISABILITY INSURANCE $667 Benefits Fixed Costs $667 465-41961-000-00000 STATE UNEMPLOYMENT INSURANCE $689 Benefits Fixed Costs $689 465-41963-000-00000 WORKERS COMPENSATION INS. $12,382 Benefits Fixed Costs $12,382 465-41965-000-00000 LIFE INSURANCE $547 Benefits Fixed Costs $547 465-41967-000-00000 MEDICAL INSURANCE $55,498 Benefits Fixed Costs $55,498 465-41975-000-00000 SAN CLEMENTE RETIREMENT PREM. $25,730 Benefits Fixed Costs $25,730 465-41976-000-00000 RETIREMENT PREMIUM (LEGACY) $20,180 Benefits Fixed Costs $20,180 465-42010-000-00000 OFFICE SUPPLIES $191 Operations Fixed Costs $191 465-42150-000-00000 CHEMICAL SUPPLIES $82,315 Operations Variable Costs $82,315 465-42170-000-00000 LABORATORY SUPPLIES $4,999 Operations Fixed Costs $4,999 465-42280-000-00000 PROTECTIVE SUPPLIES $2,384 Operations Fixed Costs $2,384 465-42390-000-00000 SMALL TOOLS AND EQUIPMENT $4,603 Operations Fixed Costs $4,603 465-42490-000-00000 OTHER OPERATING SUPPLIES $23,776 Operations Fixed Costs $23,776 465-42590-000-00000 OTHER MAINTENANCE SUPPLIES $30,984 Operations Fixed Costs $30,984 465-43060-000-00000 TRAVEL AND TRAINING $525 Operations Fixed Costs $525 465-43330-000-00000 ELECTRICITY $242,891 Operations Variable Costs $242,891 465-43450-000-00000 MAINTENANCE OF OPERATING EQUIP $45,387 Operations Fixed Costs $45,387 465-43450-000-00000 MAINTENANCE OF OPERATING EQUIP $45,387 Operations Fixed Costs $45,387 465-43690-000-00000 OTHER PROFESSIONAL SERVICES $2,475 Operations Fixed Costs $2,475 465-43691-000-00000 DEVELOPERS REIMBURSEMENTS $0 Operations N/A $0 465-43890-000-00000 OTHER CONTRACTUAL SERVICES $28,900 Operations Fixed Costs $28,900 465-44260-000-00000 LICENSES AND PERMITS $3,230 Operations Fixed Costs $3,230 465-44800-000-00000 DEPRECIATION $381,660 Operations N/A $0 465-44802-000-00000 DEPRECIATION - ASSET MODEL $23,000 Operations N/A $0 465-46080-000-00000 INFORMATION TECHNOLOGY CHARGES $7,460 Operations Fixed Costs $7,460 465-46110-000-00000 COMM CHARGES $620 Operations Fixed Costs $620 465-46130-000-00000 FLEET RENTAL CHARGES $14,020 Operations Fixed Costs $14,020 465-46510-000-00000 GENERAL FUND OVERHEAD CHARGES $67,790 Operations Fixed Costs $67,790 465-48170-000-00000 WATER FUND LOAN PRINCIPAL $649,785 Operations N/A $0 465-48470-000-00000 WATER FUND LOAN INTEREST $243,670 Operations N/A $0 Agreement Recycled Water Pricing Components: Cost Breakdown:
"A" Fixed Costs $740,987
"B" Variable Costs $325,205
Total Applicable Agreement Costs* $1,066,193
Total Recycled Water Capacity of the Plant 4,932 acre-feet Static / Not Expected To Change Total Actual AF produced by the City in FY 2021 1,165 acre-feet Changes Each Year Based On Actual Production Agreement Recycled Water Pricing Components: Cost Breakdown: $ per AF "A" Fixed Costs $150 Total Fixed Costs / Total RW Plant Capacity "B" Variable Costs $279 Total Variable Costs / Actual RW Production *Cost items indicated are based on City's FY 2021 actual category detail and are intended to illustrate the methodology governed by the Agreement.

Cost items and classifications may evolve over time based on City accounts and accounting practices. As indicated, Agreement costs shall not include any non-cash items such as depreciation or existing debt service allocated to the system. Certain costs, including power costs, may be based on an allocation of costs between wastewater treatment and recycled water production.

For Advanced Water Treatment Facility Cost Allocations, the Facility's Fixed and Variable Costs will be subsequently included in "A" and "B" components based on actual operating costs incurred. Annualized Capital Costs shall be a separate line item component based on actual such costs.

Agreement Cost Breakdown and Illustrative Per Acre-Foot Calculations:

Exhibit D - Recycled Water Costs
363
9/6/22
1 Utilities Department
David Rebensdorf, Utilities Director
Agreement for Wastewater Services and
Recycled Water Purchases between the City
and Santa Margarita Water District (SMWD)
September 6, 2022
Background
• SMWD approached City in 2017
• Chiquita Wastewater Plant Odors
• Forcemain Replacement
• Interim Agreement for Wastewater Treatment
• Long Term Agreement (Wastewater and Recycled Water Service) • Primary Long Term Agreement Components
• Wastewater Treatment
• Recycled Water
• Storage in Trampas Regional Recycled Water Reservoir & Pico Recycled Water Pump Station
Attachment 2
364
9/6/22
2 City Benefits
• Revenue Source for Stranded Capacity
• Cost Share Regional Project to Improve Recycled Water Quality • Seasonal Recycled Water Storage (Trampas Regional Reservoir) • Reduce Imported Potable Water during Plant Outages and Peak Demands • SMWD Talega Flow 0.65 MGD
• WRP Capacity 6.976 MGD
• Current Total WRP Inflow 3.6 MGD
Wastewater
365
9/6/22
3 Wastewater Agreement Components
• Rate Components
• Fixed O&M – Staffing, Permits, Supplies, Materials and Overhead • Variable O&M – Power, Chemicals and Solids Disposal
• Administration
• Capital – WRP, Pico Trunk Line and Los Molinos Pump Station • FY 2023 Total Revenue Estimated $801,000
• $582,000 O&M and Administration
• $219,000 Capital
• Quarterly Billing
• True-up Costs
Recycled Water
• City Capacity 3,360 AFY
• City Customer Demand 1,200 AFY
• Available Capacity 2,160 AFY
• Trampas Reservoir and Pico RWPS
• City’s TDS 1,350 ppm
366
9/6/22
4 Advanced Water Treatment
• Reduce TDS below 800 ppm
• Estimated Cost $10.5 M
• 18 months to award Construction
Contract
Recycled Water Agreement Components
• Rate Components
• Fixed O&M – Staffing, Permits, Supplies, Materials and Overhead • Variable O&M – Power and Chemicals
• Capital – New Advanced Water Treatment
• Future Revenue
• 1,000 AFY Take or Pay - $875,000
• 2,195 AFY - $1.6 M
• $1.1 M One-time Payment from SMWD to CSC
• 100 AF Storage Trampas Regional Reservoir - $3.1 M Value 367
9/6/22
5 Questions
368

AGENDA REPORT

CITY OF SAN CLEMENTE
City Council Meeting
Community Center
100 N. Calle Seville
San Clemente, California
www.san-clemente.org
Meeting Date: 9/6/2022 Agenda Item: D.

Department: City Clerk
Prepared By: Laura Campagnolo, Legislative Administrator Subject:

POLICY AND PROCEDURE 1201-13 RELATING TO CITY COUNCIL USE OF LETTERHEAD AND STATIONARY (Agendized at the August 16, 2022 City Council Meeting by Mayor James, with support of Councilmember Ward and Councilmember Knoblock) Fiscal Impact:

None.

Summary:

Council Policy and Procedure 1201-13 (Use of City of San Clemente Letterhead and Stationary) was created to establish guidelines for City Council use of City Letterhead and Stationary, and Staff time used to prepare and distribute City Council correspondence.

Following are the recommended guidelines for City Council use of City Letterhead and Staff time:

City Letterhead and Stationary
Councilmembers may use City of San Clemente letterhead and stationary for official City business consistent with policies and positions which have been approved by the City Council. All Council correspondence written with City resources (letterhead, typing Staff report, postage, etc.) will reflect the position of the full Council, not individual Councilmember’s positions. All Councilmember correspondence using City resources will be copied to the full Council and the City Clerk.

Individual Councilmember Letterhead and Stationary
City Councilmembers will be provided individual stationary for use of communications reflecting their personal positions, not the position of the full Council. These communications will be prepared by the individual Councilmembers. Councilmembers may utilize the City’s outgoing mail service.

Appropriate Use of Staff to Prepare Correspondence
The City Manager’s office will coordinate the typing of correspondence for communications reflecting the position of the full Council.

Recommended Actions:

Staff Recommendation
CITY OF SAN CLEMENTE Page 1 of 2 Printed on 9/1/2022
powered by Legistar™369
Meeting Date: 9/6/2022 Agenda Item: D.

Approve Policy and Procedure 1201-13 (Use of City of San Clemente Letterhead and Stationary).

Attachment:

Policy and Procedure 1201-13 (Use of City of San Clemente Letterhead and Stationary).

Notification:

None.

CITY OF SAN CLEMENTE Page 2 of 2 Printed on 9/1/2022
powered by Legistar™370