San Clemente City Council
February 4, 2025

EXHIBIT E
Case 8:25-cv-00026 Document 1-5 Filed 01/07/25 Page 4 of 5 Page ID #:79 146
Probation Department (Probation)
Probation does not permit ICE to have access to any juvenile in Probation's custody or under Probation's supervision. This is in accord with Welfare and Institutions Code section 831, which prohibits disclosure of juvenile information to federal officials absent a court order from the Juvenile Court.

Probation has briefed its officers about the legal requirements for ICE access to adults. Probation has not had a situation where it has allowed ICE access to an adult in Probation's custody or under Probation's supervision in 2022.

FINANCIAL IMPACT:

NIA
STAFFING IMPACT:

NIA
REVIEWING AGENCIES:

Sheriffs Department
Probation Department
ATT ACHMENT(S):

Attachment A - Government Code sections 7283 and 7283.1; Welfare & Institutions Code section 831 Attachment B - OCSD's Jail Policy Section 1206 (Immigration) Attachment C- OCSD's Inmate Interview Consent Fom1 and Notification Form Attachment D - Orange County Jail - Immigration Detainer Data - 2022 Attachment E - Inmates with Immigration Detainers - 2022

EXHIBIT E
Case 8:25-cv-00026 Document 1-5 Filed 01/07/25 Page 5 of 5 Page ID #:80 147

ORANGE COUNTY BOARD OF SUPERVISORS

MINUTE ORDER
March 26, 2024
Submilling Agencv(Department: County Counsel
Pursuant to Government Code Section 7283.1 conduct public hearing regarding Transparent Review of Unjust Transfers and Holds (TRUTH) Act; and receive and file information from County law enforcement departments regarding Immigration and Customs Enforcement's access to individuals in 2023 - A ll Districts The following is action taken by the Board of Supervisors:

APPROVED AS RECOMM EN DED O OTHER 181

RECEIVED AND FILED
Unanimous O (I) DO: (2) SARMIENTO: (3) WAGNER: (4) CHAFFEE: (5) FOLEY:

Vote Key: Y= Yes; N=No; A =Abstain; X=Excused; B.O. =Board Order Documents accompanying this matter:
0 Resolution(s)
0 Ordinances(s)
D Contract(s)
Item No. 38
Special Notes:

Copies sent to:

County Counsel
4/ 1/24
I certify that the foregoing is a true and correct copy o f the Minute Order adopted by the Board of Supervisors , Orange County , State o f California.

Robin Stieler, Clerk of the Board
OocuSlgncd by:

By: ____ alt. _ s_So..lA,_b_o.,_f;-'---t'"_·v.J, __ Dep 0341202eEoBE475 ...

EXHIBIT F
Case 8:25-cv-00026 Document 1-6 Filed 01/07/25 Page 1 of 4 Page ID #:81 148

Agenda Item

AGENDA STAFF REPORT
ASR Control 24-000182
MEETING DATE: 03/26/24
LEGAL ENTITY TAKING ACTION: Board of Supervisors
BOARD OF SUPERVISORS DISTRICT(S): All Districts
SUBMITTING AGENCY/DEPARTMENT: County Counsel (Approved) DEPARTMENT CONTACT PERSON(S): Leon J. Page (714) 834-3300 Nicole A. Sims (714) 834-3300
SUBJECT: Transparent Review of Unjust Transfers and Holds (TRUTH) Act Community Forum

CEO CONCUR COUNTY COUNSEL REVIEW CLERK OF THE BOARD
Concur No Legal Objection Public Hearing
3 Votes Board Majority
Budgeted: N/A Current Year Cost: N/A Annual Cost: N/A
Staffing Impact: No # of Positions: Sole Source: N/A
Current Fiscal Year Revenue: N/A
Funding Source: N/A County Audit in last 3 years: No
Levine Act Review Completed: N/A
Prior Board Action: 3/14/2023 #S38C, 3/22/2022 #S46A, 2/23/2021 #S15C RECOMMENDED ACTION(S):

1. Pursuant to Government Code section 7283.1, conduct public hearing regarding access to individuals that has been provided to Immigration and Customs Enforcement by County law enforcement departments during 2023.

2. Receive and file information from County law enforcement departments regarding Immigration and Customs Enforcement’s access to individuals in 2023.

SUMMARY:

California’s Transparent Review of Unjust Transfers and Holds (TRUTH) Act (Government Code sections 7283 and 7283.1) requires that a Community Forum be held each year, to provide the public with information about what access to individuals had been provided to Immigration and Customs Enforcement by County law enforcement departments during the preceding year.

EXHIBIT F
Case 8:25-cv-00026 Document 1-6 Filed 01/07/25 Page 2 of 4 Page ID #:82 149

BACKGROUND INFORMATION:

In accord with Government Code sections 7283, subdivision (a) and 7283.1, subdivision (d), the Board has held a public hearing at its meetings on February 23, 2021, March 22, 2022, and March 14, 2023, to provide the public with information about what access to individuals had been provided to Immigration and Customs Enforcement (ICE) by County law enforcement departments during the preceding year.

Government Code section 7283, subdivision (d), defines “ICE access” as follows:
“ICE access” means, for the purposes of civil immigration enforcement, including when an individual is stopped with or without their consent, arrested, detained, or otherwise under the control of the local law enforcement agency, all of the following:
(1) Responding to an ICE hold, notification, or transfer request. (2) Providing notification to ICE in advance of the public that an individual is being or will be released at a certain date and time through data sharing or otherwise. (3) Providing ICE non-publicly available information regarding release dates, home addresses, or work addresses, whether through computer databases, jail logs, or otherwise. (4) Allowing ICE to interview an individual.
(5) Providing ICE information regarding dates and times of probation or parole check-ins.

Sheriff’s Department (OCSD)
Following the enactment of state laws limiting law enforcement agencies’ cooperation with ICE except as provided, OCSD implemented a jail policy and created forms to meet the laws’ requirements. OCSD’s jail policy 1206 (Attachment B) prohibits any transfer of an inmate to ICE’s custody unless in accordance with state law. As required by the TRUTH Act, OCSD uses forms by which OCSD requests an inmate’s written consent to be interviewed by ICE (“TRUTH Act Interview Consent Form”) and also notifies an inmate if the inmate qualifies to be transferred to ICE’s custody following the inmate’s release from OCSD’s custody (“TRUTH Act Notification Form”) (Attachment C).

OCSD provided the following information for 2023 (also see Attachment D):
• In calendar year 2023, a total of 547 inmates released from the Orange County Jail had ICE detainers, meaning ICE requested that OCSD notify them when the inmates were being released from local custody. The purpose of this notification is for ICE to meet their responsibility to take the released inmate into their custody. OCSD notified ICE about 302 of those 547 inmates upon the inmates’ completion of their time in local custody. Those inmates were all individuals whose criminal convictions met the state law’s requirement for transfer to ICE’s custody. Of the individuals eligible for notification, 221 were transferred to ICE’s custody. With respect to the other 81 individuals who, under state law, were eligible for transfer to ICE, ICE took no action and these individuals were released back into the community. A total of 40 of these individuals were re-arrested for new crimes in Orange County.

EXHIBIT F
Case 8:25-cv-00026 Document 1-6 Filed 01/07/25 Page 3 of 4 Page ID #:83 150

• State law prohibited OCSD from notifying ICE of the release of 245 inmates who had ICE detainers. Of the 245 inmates with ICE detainers who were released back into the community, 27 were re-arrested for new crimes in Orange County.

Probation Department (Probation)
Probation does not permit ICE to have access to any juvenile in Probation’s custody or under Probation’s supervision. This is in accord with Welfare and Institutions Code section 831, which prohibits disclosure of juvenile information to federal officials absent a court order from the Juvenile Court.

Probation has briefed its officers about the legal requirements for ICE access to adults. Probation has not had a situation where it has allowed ICE access to an adult in Probation’s custody or under Probation’s supervision in 2023.

FINANCIAL IMPACT:

N/A
STAFFING IMPACT:

N/A
REVIEWING AGENCIES:

Orange County Sheriff's Department
Orange County Probation Department
ATTACHMENT(S):

Attachment A – Government Code sections 7283 and 7283.1; Welfare & Institutions Code section 831 Attachment B – OCSD’s Jail Policy Section 1206 (Immigration) Attachment C – OCSD’s Inmate Interview Consent Form and Notification Form Attachment D – Orange County Jail – Immigration Detainer Data – 2023

EXHIBIT F
Case 8:25-cv-00026 Document 1-6 Filed 01/07/25 Page 4 of 4 Page ID #:84 151
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: February 4, 2025 Agenda Item: 10B.

Submitted By: City Manager
Prepared By: Andy Hall, City Manager
Subject:
..titl e

DISCUSSION REGARDING THE INCREASE OF UNLICENSED WATERCRAFT (AKA

PANGAS) COMING ASHORE IN SAN CLEMENTE
..body
Fiscal Impact:

None.

Summary:

On January 14, 2025, the City Council directed staff to agendize a discussion about the increase of “pangas” reaching the beach in the City of San Clemente.

Background:

A panga is a small watercraft that is often used to transport undocumented persons into the United States. Often, if the passengers are not detained by Customs and Border Patrol (CBP) the watercraft is abandoned on the beach.

In recent months, there has been an increase in the number of these unlicensed watercraft vessels that have come
ashore in San Clemente. In some cases, the passengers are still aboard, but in many instances, the panga is abandoned.

The discovery of the pangas is often made by residents who will contact the Orange County Sheriff’s Department (OCSD) or the San Clemente Lifeguards.

While this is a correct action, the law enforcement jurisdiction for vessels carrying undocumented persons is the purview of the CBP. Following discussions with OCSD, staff would recommend that residents who discover a panga on or approaching the beach contact CBP as the first action, followed by contact with OCSD. Following a discussion with CBP, the best contact number for San Clemente is (562) 283-7951 which is the Maritime Coordination Center (MCC) in Long Beach. The MCC provides dispatch for CBP, the Coast Guard and other relevant agencies. If directed by the City Council, staff will place a link on the City’s website with the contact information for CBP.

Council Options:
 Receive and file the report.
 Receive and file the report and direct staff to place the contact information for Customs and Border Patrol on the City’s Website.
152
Meeting Date: February 4, 2025 Agenda Item: 10B.

CITY OF SAN CLEMENTE 2
 Provide additional direction to staff.

Environmental Review/Analysis:

This is not a “project” as defined by the California Environmental Quality Act.

Recommended Actions:

Staff Recommendation ..recommendation
Place the contact information for the Customs and Border Patrol on the City’s Website for residents to contact if they discover a panga on or approaching the beach in San Clemente. ..end
Attachment:

None.

Notification:

None.
153
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: February 4, 2025 Agenda Item: (1)
154
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org
Council Chambers

CITY OF SAN CLEMENTE
Tuesday, January 14, 2025
City Council
Special Meeting Minutes
5:00 p.m. - Special Meeting
Mayor Knoblock
Mayor Pro Tem Enmeier
Councilmember Cabral
Councilmember Loeffler
Councilmember Wu
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 Special Meeting of the San Clemente City Council was called to order by Mayor Knoblock on January 14, 2025 at 5:00 p.m., in memory of Orange County Fire Authority Fire Apparatus Engineer Kevin Skinner, in the San Clemente City Council Chambers, located at 910 Calle Negocio, 2nd Floor, San Clemente.

PRESENT: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock STAFF PRESENT: Andy Hall, City Manager; Elizabeth Mitchell, City Attorney; Laura Campagnolo, City Clerk; Megan Jimenez, Deputy City Clerk

SPECIAL MEETING

1. Pledge of Allegiance
Councilmember Wu led the Pledge of Allegiance.

2. New Business
A. EMERGENCY WILDFIRE PREPAREDNESS, ACCEPTING DONATIONS,

APPROVING AND ACCEPTING WAIVERS FROM VOLUNTEERS,

AUTHORIZING NEGOTIATION AND EXECUTION OF RIGHT OF ENTRY

AGREEMENTS, AND FINDING THE ACTIVITIES EXEMPT FROM THE

CALIFORNIA ENVIRONMENTAL QUALITY ACT
City Clerk Campagnolo announced that the liability waiver, release and assumption of risk agreement for volunteer wildfire abatement activities form is available for public review.

Mayor Knoblock narrated a PowerPoint presentation concerning the importance of wildfire preparedness and highlighted areas of concern within the community.

Additionally, Mayor Knoblock announced that resources are available for residents to better prepare their property and household in the event of a wildfire in San Clemente. A hard copy of the presentation is on file with the City Clerk.

Amanda Quintanilla narrated a PowerPoint presentation entitled "Measure M2

155
City Council Special Meeting Minutes January 14, 2025
Funds". A hard copy of the presentation is on file with the City Clerk.

James Gilbert, San Clemente, suggested that the City utilize multipurpose winding paths through the community that can be utilized by bikes, skateboards and other recreational users.

City Manager Hall spoke on efforts the City is currently undertaking concerning emergency preparedness and planning; responded to City Council inquiries.

Public Works Director/City Engineer Rebensdorf responded to City Council inquiries.

Councilmember Loeffler suggested that the City consider adopting an Ordinance concerning construction/maintenance activities within the City during red flag warnings or high fire risk days be limited or prohibited.

Motion by Councilmember Loeffler, second by Councilmember Cabral, CARRIED 5-0, to:

1. Receive a report on emergency wildfire preparations.

2. Declare Wildfire Prevention Week in San Clemente and declare Wildfire Prevention Week in October annually.

3. Ratify and authorize the City Manager’s acceptance of donations of equipment and supplies from local hardware supply companies for abatement.

4. Approve, and authorize the City Manager to accept fire abatement services from volunteers upon their signing of a waiver, release and assumption of the risk agreement to participate in canyon clearing.

5. Authorize the City Manager to negotiate and execute Right of Entry Agreements with property owners in support of wildfire prevention activities.

6. Organize a future Wildfire Prevention Forum.

7. Find the activities statutorily exempt from the California Environmental Quality Act (CEQA) as an emergency project under Section 15269 of the state CEQA Guidelines (14 CCR 15269).

AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None

3. Adjournment
The City Council adjourned by consensus at 5:48 p.m. to the Adjourned Regular Meeting of January 14, 2025 at 5:30 p.m. (immediately following this meeting).

156
City Council Special Meeting Minutes January 14, 2025
AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None
_______________________________
MAYOR of the City of
San Clemente, California
_______________________________
CITY CLERK of the City of
San Clemente, California

157
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: February 4, 2025 Agenda Item: (2)
158
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org
Council Chambers

CITY OF SAN CLEMENTE
Tuesday, January 14, 2025
City Council
Adjourned Regular Meeting Minutes
5:30 p.m. - Business Meeting
Mayor Knoblock
Mayor Pro Tem Enmeier
Councilmember Cabral
Councilmember Loeffler
Councilmember Wu
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.

An Adjourned Regular Meeting of the San Clemente City Council was called to order by Mayor Knoblock on January 14, 2025 at 5:48 p.m. in the San Clemente City Council Chambers, located at 910 Calle Negocio, 2nd Floor, San Clemente.

PRESENT: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock STAFF PRESENT: Andy Hall, City Manager; Elizabeth Mitchell, City Attorney; Laura Campagnolo, City Clerk; Megan Jimenez, Deputy City Clerk

CLOSED SESSION
None.

BUSINESS MEETING

INVOCATION
Desiree Sarnowski, Communications Specialist, The Church of Jesus Christ of Latter Day Saints, gave the invocation.

PLEDGE OF ALLEGIANCE
Councilmember Loeffler led the Pledge of Allegiance.

1. Special Presentations
None.

2. Council Member Reports
Councilmember Loeffler:
· Met with Congressman Levin on January 10, 2025 regarding concerns with the Mariposa Bridge and adjacent slope failure/mitigation and the San Onofre Nuclear Generating Station (SONGS) and the long-term storage of nuclear waste.

159
City Council Adjourned Regular Meeting Minutes January 14, 2025 · Attended the Tri-Chamber mixer at MetroLux Theatres in San Clemente on January 9, 2025.
· Attended ribbon cuttings for Mathnasium and Primrose Boutique on January 10, 2025.

Councilmember Cabral:
· Attended the San Onofre Nuclear Generating Station (SONGS) Community Engagement Panel meeting to establish the 2025 meeting schedule and set priorities related to long-term storage and related legislation. · Announced that the City will hold a reception for the new Base Commander at Camp Pendleton in the near future.
· Attended an event at the historic Governor’s Mansion on Camp Pendleton. · Announced that the Investment Advisory Committee is working towards establishing a 115 trust to address the pension liability. · Commented on the sand movement on San Clemente beaches and the ongoing study of sand movement.
· Met with the United States Army Corps of Engineers (USACE) on January 13, 2025 concerning the Sand Replenishment Project.
· Announced that University of California, Irvine, graduate students will be collaborating with the City to evaluate the best locations to get sand and most cost-effective methods for transporting sand to the City.

Councilmember Wu:
· Walked San Clemente beaches to observe the current conditions. · Met with Congressman Levin on January 10, 2025 and urged the Congressman to continue to seek financial resources to benefit San Clemente and continue to work on the removal of nuclear waste from the San Onofre Nuclear Generating Station (SONGS).

Mayor Pro Tem Enmeier:
· Attended Christmas Nights at Casa Romantica on December 12, 2024. · Attended the Retired Senior Volunteer Program (RSVP) Christmas party on December 12, 2024.
· Attended the 5th night of Hanukkah at the pier on December 29, 2024.

160
City Council Adjourned Regular Meeting Minutes January 14, 2025 · Met with Congressman Levin on January 10, 2025 concerning issues in San Clemente.
· Met Joseph Alexander, Holocaust survivor, who spoke at the High School on January 14, 2025.
· Announced his appointment as Vice Chair for the Cal Cities Coastal Leadership Group.

Mayor Knoblock:
· Met with Congressman Levin on January 10, 2025 concerning issues related to illegal immigration.

3. Oral Communications (Part 1)
Linda Williams, San Clemente, expressed concerns regarding trees in Verde Park.

Amanda Quintanilla narrated a PowerPoint presentation entitled "Ballot Integrity". A hard copy of the presentation is on file with the City Clerk.

Naomi Bailey, San Clemente, spoke in opposition to the closure of pickleball courts at San Gorgonio Park; urged the City Council to allow pickleball lessons to be held at San Gorgonio Park.

Kevin Paugh, San Clemente, opposition to the closure of pickleball courts at San Gorgonio Park; urged the City to build additional pickleball courts.

Reva Buck spoke on communication from the homeowners on Calle Felicidad concerning the Broadmoor Homeowners Association's failure to respond to set a date to address trees exceeding the height restrictions; urged the City Council to take additional action.

Paul Buck spoke on communication from the homeowners on Calle Felicidad concerning the Broadmoor Homeowners Association's failure to respond to set a date to address trees exceeding the height restrictions; urged the City Council to take additional action.

Paul Lefcourt, San Clemente, spoke on communication from the homeowners on Calle Felicidad concerning the Broadmoor Homeowners Association's failure to respond to set a date to address trees exceeding the height restrictions; urged the City Council to take additional action.

Eric Fermin, San Clemente, spoke on communication from the homeowners on Calle Felicidad concerning the Broadmoor Homeowners Association's failure to respond to set a date to address trees exceeding the height restrictions; urged the City Council to take additional action.

161
City Council Adjourned Regular Meeting Minutes January 14, 2025 Joe Wilson, San Clemente, narrated a PowerPoint presentation concerning current conditions of San Clemente beaches. A hard copy of the presentation is on file with the City Clerk.

Suzie Whitelaw, Save Our Beaches San Clemente, opined that sand placement on the beaches is an efficient method to protect the railway; encouraged the community to attend the Save Our Beaches San Clemente event at the San Clemente Community Center on January 27, 2025 from 6:00 - 7:30 p.m.

Suzi Lantz, San Clemente Chamber of Commerce, announced the upcoming community affairs meeting on January 29, 2025 at 12:00 - 1:00 p.m. in the VIP Lounge at the San Clemente Outlets.

Ruth, San Clemente, displayed a photograph showing a panga boat on a San Clemente Beach; commented on pickleball players playing on the tennis courts at San Gorgonio Park. A hard copy of the photograph is on file with the City Clerk.

Mike Kay commented on the City utilizing goats to clear brush on City owned parcels.

4. Motion waiving reading in full of all Resolutions and Ordinances Motion by Mayor Pro Tem Enmeier, second by Councilmember Loeffler, CARRIED 5-0, to waive reading in full of all Resolutions and Ordinances.

AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None

5. Consideration of agendizing items requiring immediate action None.

6. Closed Session Report - City Attorney
None.

7. Staff Communications
A. CASA ROMANTICA
Deputy Public Works Director Ryan narrated a PowerPoint presentation regarding an update to repairs at Casa Romantica and responded to City Council inquiries. A hard copy of the presentation is on file with the City Clerk.

Meeting Recessed
The meeting was recessed at 6:48 p.m. and reconvened at 7:00 p.m. with all City Councilmembers present.

162
City Council Adjourned Regular Meeting Minutes January 14, 2025

8. Public Hearings
None.

9. Unfinished Business
None.

10. New Business
10A. CONSIDERATION OF ADOPTING A POLICY REGARDING USE OF THE

TITLES OF MAYOR AND MAYOR PRO TEMPORE ONCE THE TERMS HAVE

CONCLUDED AND USE OF THE CITY SEAL FOR OFFICIAL CITY BUSINESS ONLY
City Clerk Campagnolo reviewed the contents of the City Council initiated Administrative Report and responded to City Council inquiries.

Kathy Ward, San Clemente, commented on the ethics of the proposed policy; urged the City Council to take action to reduce confusion in the community as it relates to use of the title of mayor.

Amanda Q commented on ballot integrity and actions taken by former City Councilmember Duncan.

Tom Streeter commented on the ability of Councilmembers to express their opinions concerning items of importance to the City.

Tony Rubolino spoke in support of the proposed policy; commented on actions by former Councilmember Duncan.

Motion by Councilmember Loeffler, second by Mayor Pro Tem Enmeier, to adopt Policy 1201-14: "Use of Titled after the Term has Concluded and Use of City Seal for Official City Business."
Substitute motion by Mayor Knoblock, second by Councilmember Loeffler, CARRIED 5-0, to adopt Policy 1201-14: "Use of Titles after the Term has Concluded and Use of City Seal for Official City Business Only" with the removal of section 3.1.5 from the policy and modification to the language in section 3.1.2 to read as follows: "The Mayor, Mayor Pro Tempore and Councilmembers speaking as private citizens at a public meeting or in any public setting shall not represent that they are speaking on behalf of the City unless authorized to do so.

The prohibition of this section shall not prevent anyone speaking in public from accurately communicating any title which has been properly bestowed upon them."
AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None

163
City Council Adjourned Regular Meeting Minutes January 14, 2025 10B. RESIDENT PARKING PROGRAM - MAX BERG PLAZA PARK
Assistant City Engineer Ponsen narrated a PowerPoint presentation entitled "Resident Parking Program - Max Berg Plaza Park" and responded to City Council inquiries. A hard copy of the presentation is on file with the City Clerk.

Amanda Quintanilla commented on available parking in the area surrounding Max Berg Plaza Park; spoke in support of maintaining the current parking restrictions.

San Clemente Police Services Captain Christian responded to City Council inquiries.

Motion by Councilmember Cabral, second by Mayor Pro Tem Enmeier, CARRIED 5-0, to receive and file the Administrative Report dated January 14, 2025, and on file with the City Clerk.

AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None
10C. REVIEW OF REQUIREMENTS FOR BOARDING HOUSES, RESIDENTIAL

CARE FACILITIES, AND SOBER LIVING HOMES
Community Development Director Atamian reviewed the contents of the Administrative Report and responded to City Council inquiries. A map was displayed showing where boarding houses are allowed in San Clemente during the presentation and a hard copy of the map is on file with the City Clerk.

Sarah Schneider commented on the operation of sober living homes.

Motion by Councilmember Cabral, second by Councilmember Wu, CARRIED 5-0, to receive and file the Administrative Report dated January 14, 2025, and on file with the City Clerk.

AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None

164
City Council Adjourned Regular Meeting Minutes January 14, 2025 10D. CONSIDERATION OF A RESOLUTION TO INITIATE A GENERAL PLAN

AMENDMENT AND A ZONING AMENDMENT TO THE SAN CLEMENTE

MUNICIPAL CODE TO ESTABLISH A GATEWAY OVERLAY DISTRICT,

WHICH WOULD ESTABLISH GATEWAY SPECIFIC DEVELOPMENT

STANDARDS TO ENCOURAGE DEVELOPMENT THAT SUPPORTS THE

ECONOMIC DEVELOPMENT AND URBAN DESIGN GOALS OF THE
GENERAL PLAN; ACCEPTING GRANT FUNDING; AND MAKING A RELATED

SUPPLEMENTAL APPROPRIATION
Community Development Director Atamain narrated a PowerPoint presentation entitled "Initiation of Gateway Overlay" and responded to City Council inquiries.

A hard copy of the presentation is on file with the City Clerk.

Kathy Ward, San Clemente, commented on gateways throughout the City; opined that specific lots should be identified in each gateway area.

Don Hickman, San Clemente, commented on potential impacts of rooftop decks on nearby neighborhoods.

Amanda Q spoke in opposition to the initiation of a gateway overlay.

During the course of discussion, the City Council expressed interest in also adding incentives for developments in under-utilized or under-developed areas of the City.

Motion by Councilmember Cabral, second by Mayor Pro Tem Enmeier, CARRIED 5-0, to:

Adopt Resolution No. 25-02, which will:

1. Initiate an amendment to the General Plan and the San Clemente Municipal Code (SCMC) Title 17, Zoning (“Zoning Ordinance”), in a similar form and substance to Attachment 3, to establish a Gateway Overlay District, which would establish gateway specific development standards to encourage development that supports the economic development and urban design goals of the General Plan.

2. Accept grant revenues in the amount of $150,000 to Account No. 001-000- 33446 (Coastal Grant Revenue).

3. Approve a supplemental appropriation of $150,000 to Account No. 001- 433-43890 (other contractual services) to cover the costs for staff and legal counsel review, and processing of required California Environmental Quality Act (CEQA) analysis.

AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock

165
City Council Adjourned Regular Meeting Minutes January 14, 2025 NOE: None
10E. CONSIDERATION OF A RESOLUTION RE-ESTABLISHING THE UTILITY

BOX ART PROGRAM AND FINDING THE PROJECT CATEGORICALLY

EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
Beaches, Parks and Recreation Director Wylie narrated a PowerPoint presentation entitled "Consideration of Re-Establishing the Utility Box Art Program" and responded to City Council inquiries. A hard copy of the presentation is on file with the City Clerk.

Motion by Councilmember Wu, second by Mayor Pro Tem Enmeier, CARRIED 5-0, to:

Adopt Resolution No. 25-03, which will:

1. Determine that the program is categorically exempt from the California Environmental Quality Act (CEQA) under 14 CCR Section 15301 (Class 1:

Existing Facilities) of the State CEQA Guidelines.

2. Approve the re-establishment of the Utility Box Street Art program as described in Exhibit A to the Resolution with the removal of the age restriction for artists and require parental consent for participation of minors in the program.

3. Authorize the Beaches, Parks & Recreation Director, in coordination with the Arts and Culture Committee, to begin Phase 1 and secure funding sources for future phases as resources become available.

AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None

11. Consent Calendar
A. City Council Minutes
Motion by Councilmember Cabral, second by Councilmember Loeffler, CARRIED 5-0,to:
(1) APPROVE THE CITY COUNCIL REGULAR MEETING MINUTES OF DECEMBER 10, 2024.

AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None

166
City Council Adjourned Regular Meeting Minutes January 14, 2025 B. Commission/Committee Minutes
Motion by Councilmember Cabral, second by Councilmember Loeffler, CARRIED 5-0, to receive and file the following:
(1) BEACHES, PARKS AND RECREATION REGULAR MEETING MINUTES OF OCTOBER 8, 2024.
(2) DESIGN REVIEW SUBCOMMITTEE SPECIAL MEETING MINUTES OF DECEMBER 18, 2024.
(3) ZONING ADMINISTRATOR REGULAR MEETING MINUTES OF DECEMBER 19, 2024.

AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None
C. Warrant Register
Motion by Councilmember Cabral, second by Councilmember Loeffler, CARRIED 5-0, to:
(1) APPROVE WARRANT NOS.
600971 THROUGH 601147, PAID ON
11-22-24, IN THE AMOUNT OF $931,658.37
(2) APPROVE WIRE TRANSFER NOS.
3151 THROUGH 3156 AND WARRANT NOS.
601148 THROUGH 601276, PAID ON
11-29-24, IN THE AMOUNT OF $1,551,670.72
(3) APPROVE WIRE TRANSFER NOS.
3157 THROUGH 3158 AND WARRANT NOS.
601277 THROUGH 601370, PAID ON
12-6-24, IN THE AMOUNT OF $5,852,324.53
(4) APPROVE WIRE TRANSFER NOS.
3159 THROUGH 3164 AND WARRANT NOS.
601371 THROUGH 601568, PAID ON
12-13-24, IN THE AMOUNT OF $3,473,960.44
(5) APPROVE WARRANT NOS.
601569 THROUGH 601773, PAID ON
12-20-24, IN THE AMOUNT OF $2,580,485.73
(6) APPROVE WIRE TRANSFER NOS.
3165 THROUGH 3173 AND WARRANT NOS.
601774 THROUGH 601859, PAID ON
12-27-24, IN THE AMOUNT OF $1,562,836.76
TOTAL WARRANT REGISTER $15,952.936.55
AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None

167
City Council Adjourned Regular Meeting Minutes January 14, 2025 Payroll Register
Motion by Councilmember Cabral, second by Councilmember Loeffler, CARRIED 5-0, to:

APPROVE WARRANT NOS. 959 THROUGH 961,
AND AUTOMATIC DEPOSIT ADVISES 99057
THROUGH 99392, FOR THE PERIOD
11-11-24 THROUGH 11-24-24, PAID
ON 11-29-24, IN THE AMOUNT OF $524,618.48
APPROVE WARRANT NO. 962 AND
AUTOMATIC DEPOSIT ADVISES 99393
THROUGH 99720, FOR THE PERIOD 11-25-24
THROUGH 12-8-24, PAID ON 12-13-24,
IN THE AMOUNT OF $698,394.33
APPROVE WARRANT NOS. 963 THROUGH 964,
AND AUTOMATIC DEPOSIT ADVISES 99721
THROUGH 100040, FOR THE PERIOD
12-9-24 THROUGH 12-22-24, PAID
ON 12-27-24, IN THE AMOUNT OF $528,978.65
TOTAL PAYROLL REGISTER $1,751,991.46
AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None
11D. ADOPT ORDINANCE NO. 1787 (SECOND READING) - PASSENGER AGE

RESTRICTIONS FOR ELECTRIC BICYCLES AND OTHER FORMS OF

ELECTRIC TRANSPORTATION AND FINDING THE ORDINANCE NOT

SUBJECT TO THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
Motion by Councilmember Cabral, second by Councilmember Loeffler, CARRIED 5-0, to adopt Ordinance No. 1787 entitled AN ORDINANCE OF THE

CITY COUNCIL OF THE CITY OF SAN CLEMENTE, CALIFORNIA, AMENDING CHAPTER 10.62 OF THE SAN CLEMENTE MUNICIPAL CODE TO INCLUDE

PASSENGER TRANSPORT AGE RESTRICTIONS AND UPDATING

DEFINITIONS FOR ELECTRIC BICYCLES AND OTHER FORMS OF

ELECTRIC TRANSPORTATION AND FINDING THE ORDINANCE NOT
SUBJECT TO THE CALIFORNIA ENVIRONMENTAL QUALITY ACT.

AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None

168
City Council Adjourned Regular Meeting Minutes January 14, 2025 11E. RECORDS DESTRUCTION
Motion by Councilmember Cabral, second by Councilmember Loeffler, CARRIED 5-0, to adopt Resolution No. 25-04 entitled A RESOLUTION OF THE

CITY COUNCIL OF THE CITY OF SAN CLEMENTE, CALIFORNIA,

AUTHORIZING THE DESTRUCTION OF CERTAIN CITY RECORDS AS
PROVIDED BY SECTION 34090 OF THE GOVERNMENT CODE OF THE STATE OF CALIFORNIA.

AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None
11F. NOTICE OF COMPLETION - PAVEMENT PRESERVATION PROGRAM -

CRACK FILLING
Motion by Councilmember Cabral, second by Councilmember Loeffler, CARRIED 5-0, to:

Adopt Resolution No. 25-05, which will:

1. Accept the Pavement Preservation Program - Crack Filling, CIP Project No. 25304, from the contractor, Roy Allan Slurry Seal, Inc.

2. Authorize the Public Works Director/City Engineer to execute and record the Notice of Completion for the Pavement Preservation Program - Crack Filling.

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.

4. Authorize the City Clerk to release the performance bond for this project upon receipt of a warranty bond in a form acceptable to the Public Works Director in the amount of 25% of the total construction cost.

AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None
11G. NOTICE OF COMPLETION - RESERVOIR NO. 4 EXTERIOR COATING Motion by Councilmember Cabral, second by Councilmember Loeffler, CARRIED 5-0, to:

Adopt Resolution No. 25-06, which will:

1. Accept the Reservoir No. 4 Exterior Coating, CIP Project No. 23404, from the contractor, United Field Corporation.

169
City Council Adjourned Regular Meeting Minutes January 14, 2025

2. Authorize the Public Works Director/City Engineer to execute and record the Notice of Completion for the Reservoir No. 4 Exterior Coating.

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, United Field Corporation.

4. Authorize the City Clerk to release the performance bond for this project upon receipt of a warranty bond in a form acceptable to the Public Works Director in the amount of 25% of the total construction cost.

AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None
11H. CONTRACT AWARD - SIDEWALK TRIP HAZARD REMOVAL AND

ASSESSMENT SERVICES, AND FINDING THE PROJECT CATEGORICALLY

EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
Motion by Councilmember Cabral, second by Councilmember Loeffler, CARRIED 5-0, to:

Adopt Resolution No. 25-07, which will:

1. Find the Sidewalk Trip Hazard Removal and Assessment, Project No. 25305, categorically exempt from the California Environmental Quality Act (CEQA) under Class 1 (Existing Facilities, 14 CCR section 15301) of the State CEQA Guidelines.

2. Award a contract to Southern California Precision Concrete, Inc., dba Precision Concrete Cutting, as the responsible and responsive bidder for the Sidewalk Trip Hazard Removal and Assessment, Maintenance Services Contract.

3. Approve, and authorize the City Manager to execute, Contract No. C25-01, by and between the City of San Clemente and Southern California Precision Concrete, Inc., dba Precision Concrete Cutting, providing for the Sidewalk Trip Hazard Removal and Assessment, Maintenance Services, in an amount not to exceed $200,000 in a form substantially similar to Contract No. C25-01 (Attachment 2).

AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None

170
City Council Adjourned Regular Meeting Minutes January 14, 2025 11I. CONTRACT AWARD - CONSTRUCTION INSPECTION SERVICES FOR THE

PICO/PRESIDIO DIP REPLACEMENT
Motion by Councilmember Cabral, second by Councilmember Loeffler, CARRIED 5-0, to:

Adopt Resolution No. 25-08, which will:
..recommendation

1. Award a Professional Consultant Services Agreement to PDM Consulting, Inc. for construction inspection services for the Pico/Presidio DIP Replacement, CIP Project No. 13411.

2. Approve, and authorize the City Manager to execute, Contract No. C25- 02, by and between the City of San Clemente and PDM Consulting, Inc., providing for construction inspection services for the Pico/Presidio DIP Replacement, in an amount not to exceed $109,620.

AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None
11J. CONTRACT AWARD - SAN GORGONIO PARK PLAYGROUND SUBSTRATE SURFACE REPLACEMENT, APPROVING A 10% PROJECT CONTINGENCY, ACCEPTING A $20,000 DONATION FROM THE FRIENDS OF SAN

CLEMENTE BEACHES, PARKS & RECREATION FOUNDATION AND

FINDING THE PROJECT CATEGORICALLY EXEMPT FROM THE

CALIFORNIA ENVIRONMENTAL QUALITY ACT
Motion by Councilmember Cabral, second by Councilmember Loeffler, CARRIED 5-0, to:

Adopt Resolution No. 25-09, which will:

1. Find the San Gorgonio Park Playground Substrate Surface Replacement project to be categorically exempt from the California Environmental Quality Act (CEQA) under Class 2 (Replacement or Reconstruction, 14 CCR section 15302) of the State CEQA Guidelines.

2. Award a contract to Robertson Industries, Inc., as the lowest responsible and responsive bidder, for all items listed in the scope of work.

3. Approve, and authorize the City Manager to execute, Contract No. C25-03, by and between the City of San Clemente and Robertson Industries, Inc., providing for the removal and replacement of the San Gorgonio Park Playground Substrate Surfacing, in an amount not to exceed $144,595.

4. Approve a 10% construction contingency of $14,495 for this Project.

5. Accept a $20,000 donation from the Friends of San Clemente Beaches,

171
City Council Adjourned Regular Meeting Minutes January 14, 2025 Parks & Recreation Foundation for this Project.

AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None
11K. CONSIDERATION OF RESOLUTION AUTHORIZING AN EXEMPTION TO THE

FORMAL SOLICITATION PROCESS FOR THE COOPERATIVE PURCHASE

OF SYNTHETIC TURF FOR THE VISTA HERMOSA SPORTS PARK

ARTIFICIAL SOCCER FIELD TURF REPLACEMENT, AND FINDING THE

PROJECT CATEGORICALLY EXEMPT FROM THE CALIFORNIA

ENVIRONMENTAL QUALITY ACT
Motion by Councilmember Cabral, second by Councilmember Loeffler, CARRIED 5-0, to:

Adopt Resolution No. 25-10, which will:

1. Determine that the project is categorically exempt from the California Environmental Quality Act (CEQA) under Class 1 (Existing Facilities), Section 15301 of the State CEQA Guidelines (14 CCR 15301).

2. Authorize an exemption to the formal competitive bidding requirements under Section XI.A.1.4.3(b) of City Purchasing Policy 201-2-1.

3. Award an agreement for the purchase of RootZone 3DM to AstroTurf Corporation for synthetic turf for the soccer fields at Vista Hermosa Sports Park.

4. Approve, and authorize the City Manager to execute, Contract No. C25- 04, by and between the City of San Clemente and AstroTurf Corporation, providing for the purchase of RootZone 3DM synthetic turf, under the same terms and conditions of Sourcewell contract No. 031622-AST, in an amount not to exceed $932,294.

AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None

172
City Council Adjourned Regular Meeting Minutes January 14, 2025 11L. CONSIDERATION OF A RESOLUTION AUTHORIZING AN EXEMPTION TO

THE FORMAL SOLICITATION PROCESS, AWARDING A PIGGYBACK

CONTRACT FOR AN ENTERPRISE LICENSE AGREEMENT TO MICROSOFT, INC. FOR MICROSOFT PRODUCTS AND SERVICES
Motion by Councilmember Cabral, second by Councilmember Loeffler, CARRIED 5-0, to:

Adopt Resolution No. 25-11, which will:

1. Authorize an exemption to the formal solicitation process under Section XI.A.1.4.3 of City Policy 201-2-1.

2. Award and authorize the City Manager to execute a piggyback agreement for the purchase of the Microsoft Enterprise License Agreement from Dell Marketing, L.P. under terms and conditions substantially similar to Attachment 3 - Riverside Agreement No. ITARC-00934 for the Microsoft Enterprise License Agreement in an amount not to exceed $187,847 per year over a three-year term.

3. Approve, and authorize the City Manager to execute, Contract No. C25- 05, by and between the City of San Clemente and Dell Marketing, L.P., providing for the Microsoft Enterprise License, in an amount not to exceed $187,847 per-year for a three-year term in a form substantially similar to Attachment 2 of the Administrative Report dated January 14, 2025.

AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None
11M. CONSIDERATION OF A RESOLUTION DECLARING A SOLE SOURCE

EXEMPTION TO THE FORMAL SOLICITATION PROCESS, AWARDING AND

AUTHORIZING EXECUTION OF AN AGREEMENT FOR SOFTWARE

MAINTENANCE AND SUPPORT
Motion by Councilmember Cabral, second by Councilmember Loeffler, CARRIED 5-0, to:

Adopt Resolution No. 25-12, which will:

1. Declare a sole source exemption to the formal solicitation process under Section XI.A.1.7 of City Policy 201-2-1 for the Eden Enterprise Resource Planning (ERP) system.

2. Award an agreement to Tyler Technologies, Inc. for ongoing maintenance and support of the Eden ERP system for two years effective January 1, 2025.

3. Approve, and authorize the City Manager to execute, Contract No. C25-

173
City Council Adjourned Regular Meeting Minutes January 14, 2025 06, by and between the City of San Clemente and Tyler Technologies, Inc., for ongoing maintenance and support of the Eden Enterprise Resource Planning (ERP) system, in an amount not to exceed $141,040 for a two-year period.

AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None

12. Oral Communications (Part 2)
Karen Newe, Broadmoor Homeowners Association, commented on concerns raised earlier in the evening by homeowners on Calle Felicidad regarding trees that exceed the height restrictions in the Broadmoor Community.

Tony Rubolino spoke on the incoming presidential administration.

13. Future Agenda Items
Shared Parking Standards
Councilmember Wu suggested that the Council direct Staff to develop shared parking guidelines for future development projects that are better aligned with the conditions in San Clemente. This request was withdrawn by Councilmember Wu.

Broadmoor Homeowners Association
Councilmember Cabral, with the support of Councilmember Loeffler and Mayor Knoblock, agendized an update concerning the Broadmoor Homeowners Association failure to enforce certain covenants, conditions and restrictions (CC&Rs) for March 2025.

After-School Program at Max Berg Plaza Park
Councilmember Loeffler, with the support of Mayor Pro Tem Enmeier and Councilmember Cabral, agendized consideration of evaluating the after-school program policy at Max Berg Plaza Park.

Parking Permit Program for Residents
Councilmember Loeffler, with the support of Mayor Knoblock, agendized consideration of a parking permit program for residents. Councilmember Loeffler will provide a report to the City Council.
"Sanctuary State" Lawsuit
Mayor Knoblock, with the support of Councilmember Loeffler and Councilmember Cabral, agendized for the February 4, 2025 City Council meeting, a Closed Session and Open Session discussion concerning the possibility of joining the City of Huntington Beach's lawsuit in opposition to SB 54 "Sanctuary State Law" against the State of California.

Pickleball at San Gorgonio Park
Councilmember Cabral requested a report at the February 13, 2025 City Council

174
City Council Adjourned Regular Meeting Minutes January 14, 2025 retreat providing an update on the feasibility of pickleball courts next to the freeway at San Gorgonio Park.

City Council Requested Updates
The City Council requested that City Manager Hall provide memos to the City Council concerning 1) Status of dogs on the beach and 2) Verde Park and Marblehead Homeowners Association trees.

14. Reports
A. Commissions and Committees
None.

B. Council Subcommittee Updates
None.

C. City Attorney
None.

D. City Manager
City Manager Hall reported that the following contracts were executed under his signature authority:

1. Community Counterparts Services Corp., providing for Professional Planning Consulting Services, in the amount of $60,000.

2. Sancon Technologies, Inc., providing for 216 Avenida La Cuesta Sewer Line Rehabilitation, in the amount of $58,760.

3. Torres Sanitation Systems Construction, providing for SSGM-13540 and SSGM-13548 Sanitary Sewer Line, in the amount of $49,980.

4. Digital Mapping Incorporated, providing for Aerial Data Collection, in the amount of $47,393.01.

5. Amendment No. 2 with Eckersall, LLC., providing for Geographic Information System (GIS), in the amount of $60,000 (an increase of $11,000).

175
City Council Adjourned Regular Meeting Minutes January 14, 2025

15. Adjournment
Motion by Mayor Knoblock, second by Councilmember Loeffler, CARRIED 5-0, to adjourn at 9:39 p.m. in memory of Coastal Animal Services (CASA) Animal Control Officer Dana Friedman, Orange County Fire Authority Fire Apparatus Engineer Kevin Skinner and the victims of the Los Angeles area fires. The next Regular Meeting will be held on February 4, 2025. Closed Session will begin at 4:30 p.m. The Business Meeting will commence at 5:30 p.m. The meeting will take place at City Hall Council Chambers, located at 910 Calle Negocio, 2nd Floor, San Clemente.

AYE: Cabral, Enmeier, Loeffler, Wu and Mayor Knoblock
NOE: None
_______________________________
MAYOR of the City of
San Clemente, California
_______________________________
CITY CLERK of the City of
San Clemente, California

176
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: February 4, 2025 Agenda Item: (1)
177
Approved at the Regular Meeting of the Coastal Advisory Committee on November 21, 2024.

CITY OF SAN CLEMENTE

MINUTES OF THE REGULAR MEETING OF THE

COASTAL ADVISORY COMMITTEE
SEPTEMBER 19, 2024

CALL TO ORDER/ROLL CALL
Chair Ambrose called the Regular Meeting of the City of San Clemente Coastal Advisory Committee to order on September 19, 2024, at 4:04 p.m. The meeting was held at San Clemente City Hall, Second Floor Council Chambers, located at 910 Calle Negocio, San Clemente, California.

Committee
Members Present: Members John Dolegowski, John Dow, Matthew Schmitt (arrived at 4:33 p.m.), Diek Van Nort, Vice Chair Brian Jacobs and Chair Susan Ambrose
Members Absent: Richard Ayer
Staff Present: Zach Rehm, Principal Planner
Adam Atamian, Community Development Director
Leslea Meyerhoff, Coastal Administrator
Niki Beach, Environmental Programs Analyst
Maile Stivers, Public Information Coordinator

PLEDGE OF ALLEGIENCE
The Pledge was led by Member Dolegowski.

1. APPROVAL OF MINUTES
A. July 18, 2024 Coastal Advisory Committee Meeting

MEMBER JACOBS MOVED AND MEMBER DOW SECONDED A MOTION TO APPROVE THE MINUTES. THE MOTION CARRIED 5-0, MEMBERS AYER AND SCHMITT ABSENT.

2. SPECIAL PRESENTATIONS
A. Sand Acquisition
i. North Beach Sand Placement Project update
ii. Offshore Sand Source Investigation Update
iii. SANDAG Regional Beach Sand III Project Update
178
Minutes of the Regular Meeting of the Coastal Advisory Committee of September 19, 2024 Page 2 Coastal Administrator Meyerhoff reported on the North Beach Sand Placement Project; Offshore Sand Source Investigation; and SANDAG Regional Beach Sand III Project.

In response to Committee questions, Coastal Administrator Meyerhoff explained the reinforcement areas; data on sand retention and monitoring; North Beach Sand Placement Project budget; loss of infrastructure and emergency driving the North Beach project; length and funding for the project; difficulty in obtaining the County permit for MO2; ease of obtaining the Coastal Commission permit; required Army Corps permit; prior projects in 2005 and 2016; purpose of the Offshore Sand Source Investigation; potential location of dredges; types of sand source surveys; Dana Point and County MOUs with SANDAG; dredging with Army Corps permit; utilization of sand sources in conjunction with Army Corps projects; Manson Portland District of the Army Corps of Engineers Hopper dredge contract; plan to widen beaches; and status of OCTA sand replenishment.

The Committee discussed the successful completion of the North Beach Sand Placement Project; and Army Corps of Engineers and Coastal Commission missions.

B. Sand Retention
i. Nature Based Coastal Resiliency Project Feasibility Study Update ii. Shoreline Monitoring Update
Coastal Administrator Meyerhoff provided updates on the Nature Based Coastal Resiliency Project Feasibility Study and Shoreline Monitoring.

In response to Committee questions, Coastal Administrator Meyerhoff explained the funding phases; means of shoreline monitoring survey; and State of the Beach.

The Committee discussed the potential push back from community; cost; and need for continual sand restoration.

The Committee requested a binder of ongoing projects.

C. Water Quality
i. Beach Water Quality Update
ii. Prima Deshecha Landfill Water Quality Program
iii. Upcoming Events
Environmental Programs Analyst Beach presented staff reports outlining the Beach Water Quality Update and Prima Deshecha Landfill Water Quality Program and announced upcoming events.

In response to Committee questions, Environmental Programs Analyst Beach explained the timeline for the Beach Water Quality Update; and testing for bacteria at the beach.
179
Minutes of the Regular Meeting of the Coastal Advisory Committee of September 19, 2024 Page 3 The Committee discussed past experiences during Coastal Clean Up Day; and encouraged participation on the H20 for HOAs event.

3. ORAL AND WRITTEN COMMUNICATION
Amanda Quintanilla discussed OCTA meetings at which it was indicated that there were jurisdictional problems with the Coastal Commission and Army Corps of Engineers and the need for a full environmental impact report. She discussed prior sand replenishment projects.

4. UNFINISHED BUSINESS AND UPDATES
A. Subcommittee Updates on Work Plan Items:
i. Sand Acquisition Subcommittee – Ayer, Dow, Van Nort
Member Dow indicated the newly constituted subcommittee had not yet met but he suggested efforts to encourage and pressure OCTA to put the sand on the beach as indicated and the Committee review OCTA’s` progress.

In response to Committee questions, Principal Planner Rehm explained the SCOUP Permits.

Chair Ambrose discussed her conversation with Community Development Director Atamian regarding how the Subcommittee could help with sand acquisition.

Community Development Director Atamian explained the use of consultants and coordination between staff and the Committee.
ii. Sand Retention Subcommittee - Dolegowski, Jacobs, Schmitt Chair Ambrose suggested Member Dolegowski chair the subcommittee.

Member Schmitt requested the subcommittee meet.

Community Development Director Atamian explained that many of the Committee’s purview related to existing projects being undertaken by staff.

Member Dow discussed a forthcoming update on current projects and requested information on the Shoreline Monitoring Program.
iii. Water Quality Subcommittee – Ambrose, Dolegowski, Van Nort Chair Ambrose discussed meetings of the subcommittee and staff and the invitation to promote projects.
180
Minutes of the Regular Meeting of the Coastal Advisory Committee of September 19, 2024 Page 4 B. Consideration and Development of Coastal Advisory Committee FY 2024-2025 Work Plan
Review and discussion pursuant to the Committee's required functions and duties to develop a Committee work plan to be submitted to the City Council by October 1, 2024.

MEMBER SCHMITT MOVED AND MEMBER DOW SECONDED A MOTION TO EXTEND THE EXISTING WORK PLAN. THE MOTION CARRIED 6-0, MEMBER AYER ABSENT.

5. NEW BUSINESS
A. Beach Priority Matrix Discussion
Chair Ambrose discussed the request for Chris Webb to prepare a matrix.

Principal Planner Rehm indicated it would be part of the State of the Beaches presentation and explained the SCOUP Permit.

B. Consideration of Providing Coastal Advisory Committee Presentation on Water Quality to City Council
Chair Ambrose discussed efforts by her and Member Dolegowski on water quality.

Member Dolegowski presented a PowerPoint outlining testing and runoff at Poche Beach and the treatment plant, and water quality monitoring.

The Committee discussed potential modifications to the slides.

Environmental Programs Analyst Beach provided input on the recommendations.

MEMBER JACOBS MOVED AND MEMBER SCHMITT SECONDED A MOTION

TO DIRECT REFINEMENTS TO THE PRESENTATION FOR STAFF REVIEW FOLLOWED BY A PRESENTATION TO THE CITY COUNCIL BY NOVEMBER 1.

THE MOTION CARRIED 6-0, MEMBER AYER ABSENT.

6. ITEMS FROM STAFF
A. Coastal Items Updates
Community Development Director Atamian discussed upcoming matters for consideration by the Committee.
181
Minutes of the Regular Meeting of the Coastal Advisory Committee of September 19, 2024 Page 5

7. ITEMS FROM COMMITTEE MEMBERS
A. Committee Member Items
Member Schmitt requested presentations be under 10 minutes.

Member Dow discussed Measure BB on the upcoming ballot. Chair Ambrose confirmed allowable campaign activity.

8. ADJOURNMENT

MEMBER JACOBS MOVED AND MEMBER DOW SECONDED A MOTION TO ADJOURN THE MEETING AT 6:57 P.M. TO THE REGULAR COASTAL ADVISORY COMMITTEE MEETING TO BE HELD ON NOVEMBER 21, 2024, AT 4:00 P.M. AT

SAN CLEMENTE CITY HALL, SECOND FLOOR COUNCIL CHAMBERS, LOCATED AT 910 CALLE NEGOCIO, SAN CLEMENTE, CALIFORNIA. THE MOTION CARRIED 6-0, MEMBER AYER ABSENT.

Respectfully submitted,
______________________________
Susan Ambrose, Chair
Attest: ______________________________
Zach Rehm, Principal Planner
182
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: February 4, 2025 Agenda Item: (2)

..ag endizedby
..end
Subject:
..titl e
INVESTMENT ADVISORY COMMITTEE SPECIAL MEETING MINUTES OF NOVEMBER 4, 2024. ..body
..recommendation
..end
183

CITY OF SAN CLEMENTE
Investment Advisory Committee Minutes
Special Meeting – November 4, 2024
A Special Meeting of the City of San Clemente Investment Advisory Committee was called to order by City Treasurer, Charlie Smith, on November 4, 2024 at 5:35 p.m. in the Community Conference Room at City Hall, 910 Calle Negocio, San Clemente, California. (1) PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was led by Jeff Willardson.
(2) ROLL CALL
PRESENT: Investment Advisory Committee Members:

Charlie Smith, Victor Cabral, Art Carter, Jeff Willardson, Matthew Koelliker
Staff:

Sandee Chiswick, Melissa Anderson, Jake Rahn, Andy Hall, Brian Brower
ABSENT: None

CHANDLER
REPRESENTATIVE: Jayson Schmitt
PUBLIC: Jack Raub
(3) APPROVAL OF MINUTES
Minutes from the August 5, 2024 meeting were approved. Motion was made to approve by Victor Cabral, seconded by Art Carter. Approved 5-0. (4) DISCUSS SECTION 115 TRUST ACCOUNT
Jennifer Meza of PARS and Keith Stribling of PFM Asset Management presented on creating a Section 115 Trust Account with PARS. The committee discussed the options presented along with alternatives. A motion was made by Charlie Smith to form a subcommittee to research further and come back with a recommendation to the committee, seconded by Matt Koelliker, Approved 5-0.
(5) INVESTMENT REPORT – 1ST QUARTER FY 2024-25
The first quarter investment report was introduced by City Treasurer, Charlie Smith.

Jayson Schmitt, Chandler Asset Management representative, reviewed the report and 184
Investment Advisory Committee Minutes November 4, 2024 Page 2 answered questions. Art Carter moved to approve the 1
st Quarter Investment Report,
seconded by Jeff Willardson. Approved 5-0.
(6) DISCUSS PORTFOLIO ALLOCATION, CURRENT ECONOMIC

ENVIRONMENT AND OTHER RELATED TOPICS
None
(7) ANNUAL INVESTMENT POLICY REVISIONS
The committee will review the current investment policy and discuss at the next meeting.
(8) PENSION CASH FLOW REQUIREMENTS
Jake Rahn provided a report on cash flow requirements of the City of San Clemente Employee Retirement Plan (CSCERP), which is a plan consisting of inactive and past retirees. The Investment Advisory Committee will be taking over managing this plan and will need to establish a contribution policy. Motion was made by Charlie to keep the cash reserve portion of the allocation for the CSCERP at 10%. Seconded by Matt Koelliker, approved 5-0.
(9) PENSION INVESTMENT POLICY REVIEW
Jake Rahn provided a report for the committee to review along with the current Investment Policy and Procedures and recommended changes. The committee made revisions and will further discuss. The committee would like to meet with a representative from Empower.
(10) PUBLIC INPUT
Andy Hall, City Manager, discussed that if Measure BB passes to increase sales tax

0.5% for beach maintenance, the Investment Advisory Committee will manage that trust.
(11) ADJOURNMENT
Motion was made by Art Carter, seconded by Jeff Willardson, carried 5-0 to adjourn to a Regular Meeting to be held on January 27, 2025 at 5:30 pm in the Community Conference Room at City Hall, 910 Calle Negocio, San Clemente, California. _________________________________
Charlie Smith
Chair-Investment Advisory Committee
Future Meeting Dates:

April 28, 2025
July 28, 2025
October 27, 2025
January 26, 2026
185
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: February 4, 2025 Agenda Item: (3)
Submitted By: Choose an item.

Prepared By:

Subject:
..titl e
HUMAN AFFAIRS COMMITTEE MEETING OF NOVEMBER 12, 2024 ..body Fiscal Impact:

Summary:

Background:

Council Options:

Environmental Review/Analysis:

Recommended Actions:

Staff Recommendation ..recommendation
..end
Attachment:

Notification:
186
187
188
189
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: February 4, 2025 Agenda Item: (4)
Submitted By: Choose an item.

Prepared By:

Subject:
..titl e
PLANNING COMMISSION REGULAR STUDY SESSION MINUTES OF NOVEMBER 20, 2024 ..body Fiscal Impact:

Summary:

Background:

Council Options:

Environmental Review/Analysis:

Recommended Actions:

Staff Recommendation ..recommendation
..end
Attachment:

Notification:
190
These minutes will be considered for approval at the Planning Commission meeting of 2-4-2025.

MINUTES OF THE STUDY SESSION

OF THE CITY OF SAN CLEMENTE

PLANNING COMMISSION
November 20, 2024 @ 5:00 p.m.

San Clemente City Hall Council Chamber
910 Calle Negocio, San Clemente, CA 92673
Teleconference via www.san-clemente.org

CALL TO ORDER
Chair Cosgrove called the Study Session of the Planning Commission of the City of San Clemente to order at 5:00 p.m. The meeting was offered in person at San Clemente City Hall Council Chambers, 910 Calle Negocio, San Clemente, California, 92673, and also via live stream from the City’s YouTube Channel.

ROLL CALL
Commissioners Present: Barton Crandell; Scott McKhann; Chair Pro Tem Gary P.

McCaughan, M.D., Chair Cameron Cosgrove and Brent Davis (arrived at 5:05 p.m.)
Commissioners Absent: Karen Prescott-Loeffler
Staff Present: Jonathan Lightfoot, City Planner
Zach Rehm, Principal Planner
Christopher Wright, Senior Planner
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. Local Coastal Plan projects funded by a Coastal Commission Grant The California Coastal Commission awarded a $1.5 Million grant in July of 2024, and the grant agreement was executed in October. The agreement covers several tasks, listed below, which staff will preview for the Planning Commission. These tasks are scheduled to be completed by the end of 2026.
• Task 1: South Orange County Sand Source Investigation • Task 2: Complete LCP Implementation Plan, including a Parking and Transportation Demand Management Plan as well as a Lidar survey and geotechnical analysis
• Task 3: Targeted Land Use Plan Amendment(s) to incorporate findings & recommendations
City Planner Jonathan Lightfoot explained the purpose for the session and summarized the grant agreement that was awarded in October for the project that includes:
191
Minutes of Planning Commission Study Session of November 20, 2024 Page 2 • Local Sand Source Investigation: $800k
• Staff Support: $305k
• Geotechnical: $100k
• Parking/Mobility: $250k
Overall purpose is to advance the LCP inclusive of the Land Use Plan (LUP) and the City Implementation Plan (CIP) that is not yet complete. The grant is focused on the CIP that is projected to be presented to the Planning Commission the end of 2025 or early 2026.

City Planner Lightfoot reviewed an abridged version of the “Local Sand” presentation that was presented in the October City Council meeting. The objective is to identify areas close to San Clemente where sand can be borrowed.

City Planner Lightfoot continued with the “Staff Support” presentation that requests a reimbursement of City and contracted staff time dedicated to the project.

Questions to staff included the ability to utilize sand and dirt from other projects rather than paying to export. Principal Planner Rehm responded that the City requires a lot of sand that is from any qualified source through a SCOOP permit, and advised of a Coastal Advisory Committee meeting with three speakers presenting onshore and offshore sand opportunities is being held in the City Council Chambers tomorrow, November 21, 2024 at 4:00 p.m. An audio file of the meeting will be available on the City’s website for those unable to attend.

A video of the “LIDAR” process was presented before Senior Planner Wright summarized the “Geotechnical” presentation inclusive of:
• Aerial data
• Bluff analysis
• Study effect of existing process
• Recommendation of policy and standards
• Develop checklist for applications
Senior Planner Wright reported that a consultant will compile historical analysis with rate of erosion data that will be a guide to develop better policies and regulations for a Coastal Development Permit. The aerial data can also be used to create a scale model of the City.

Commissioners requested staff to forward the video or copy of a previous Study Session on Sea Level Rise. Principal Planner Rehm directed Commissioners to the Sea level Rise Vulnerability Assessment that is found on the City’s Coastal Planning webpage.

City Planning Lightfoot answered Commissioners’ request for an update on Casa Romantica by explaining two phases: 1) given it was declared an emergency, the priority was to stabilize and later inform the California Coastal Commission (CCC) that 192
Minutes of Planning Commission Study Session of November 20, 2024 Page 3 emergency work is being performed; 2) is to follow up the with the CCC to obtain a Coastal Development Permits to replace plants, patios and other structures.

Senior Planner Wright followed up stating that Public Works is conducting an Alternatives Analysis and explained the process and objectives of the project’s restoration. A discussion on future uses ensued, which will be conveyed to the Public Works Director.

The last part of the grant is the “Parking and TDM (Traffic Demand Management) Study,” which was presented by Principal Planner Rehm. The study will facilitate economic development by developing parking options and alternatives. Vehicles with 360° cameras will drive specified routes to collect parking data. Studies will be conducted twice to capture off season (January) and peak season (July) scenarios.

The consultant will evaluate parking ratios for policy options and will develop an economic analysis of parking and mobility solutions. The consultant will collaborate with staff to translate data into GIS mapping that staff can maintain.

Commissioners expressed a desire for data to be granular enough to evaluate issues like parking and overflow from employers/employees into time limited parking areas or residential streets. Principal Planner Rehm noted that recommendations will address specific hours for parking and enforcement, options for paid parking, shared parking agreements, offsite employee parking areas and suitability of a parking structure. City Planner Lightfoot added that the final report will include a pro forma alongside recommended actions so that the City has a clear understanding of the operations and infrastructure costs associated with the various recommendations.

The consultant will interact with the Planning Commission and Downtown Business Association; conducting outreach via surveys from the public as part of their contract; and reach out to other local cities on parking plans that are comparable. City Planner Lightfoot added that the Land Use Plan (LUP) supports parking alternatives such as bikes, EVs and other vehicles; however, there isn’t an objective standard in place to accomplish this. The parking study can provide data to establish such a standard.

Copies of all the presentations made in the Study Session are on file in the Planning Division.
193
Minutes of Planning Commission Study Session of November 20, 2024 Page 4

ADJOURNMENT

IT WAS MOVED BY CHAIR COSGROVE TO ADJOURN THE STUDY SESSION UNTIL ITS NEXT REGULARLY SCHEDULED MEETING ON DECEMBER 18, 2024, AT 5:00 P.M.

Respectfully submitted,
Cameron Cosgrove, Chair
Attest:

Jonathan Lightfoot, City Planner
194
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: February 4, 2025 Agenda Item: (5)
195
Approved at the Regular Meeting of the Coastal Advisory Committee on January 16, 2025.

CITY OF SAN CLEMENTE

MINUTES OF THE REGULAR MEETING OF THE

COASTAL ADVISORY COMMITTEE
NOVEMBER 21, 2024

CALL TO ORDER/ROLL CALL
Chair Ambrose called the Regular Meeting of the City of San Clemente Coastal Advisory Committee to order on November 21, 2024, at 4:10 p.m. The meeting was held at San Clemente City Hall, Second Floor Council Chambers, located at 910 Calle Negocio, San Clemente, California.

Committee
Members Present: Members Richard Ayer, John Dolegowski, John Dow, Matthew Schmitt, Diek Van Nort, and Chair Susan Ambrose Members Absent: Vice Chair Brian Jacobs
Staff Present: Zach Rehm, Principal Planner
Maile Stivers, Public Information Coordinator
Leslea Meyerhoff, Coastal Administrator

PLEDGE OF ALLEGIENCE
The Pledge was led by Member Van Nort.

1. APPROVAL OF MINUTES
A. September 19, 2024 Coastal Advisory Committee Meeting

MEMBER SCHMITT MOVED AND MEMBER DOW SECONDED A MOTION TO APPROVE THE MINUTES. THE MOTION CARRIED 6-0, VICE CHAIR JACOBS ABSENT.

2. SPECIAL PRESENTATIONS
Item C was moved before Item A.

A. San Clemente Shoreline Monitoring Program “State of the Beach”, Coastal Frontiers (Scheduled approximately 4:05pm) –
Greg Hearon provided background on shoreline monitoring; findings from Fall 2024 survey; and offshore sand source investigation.
196
Minutes of the Regular Meeting of the Coastal Advisory Committee of November 21, 2024 Page 2 In response to Committee questions, Mr. Hearon explained the production of sediment from San Juan Creek; weather and population impacts on Southern California beaches; sand nourishment in the 1960s and 1970s; process of boat and land survey; seasonal consistency in monitoring; years of data; measurements from mean high tide; impacts of the railroad and revetment; mapping of thickness of sediment; efforts to determine best locations for finding sand; efforts to avoid the San Mateo site due to potential effect of the surf location; Oceanside use of material from further south; and goal for borrow sites lasting decades.

C. Shoreline Monitoring, Professor Brett Sanders (scheduled approximately 4:45pm)

Professor Brett Sanders explained efforts to understand sand movement including impacts from San Juan and San Mateo Creeks, cliff erosion; and restoration projects.

In response to Committee questions, Professor Sanders explained the coastline stabilization from Doheny Beach; aerial survey photos; monthly erosion calculations; effects of shorter and longer period waves; satellite data; needed quantity for sand replenishment; and efforts to restore natural processes.

B. City of Oceanside Coastal Program, Jayme Timberlake, Oceanside Coastal Administrator (scheduled approximately 4:25pm)
Jayme Timberlake provided an update on the Re-beach Oceanside project.

In response to Committee questions, Ms. Timberlake explained issues with San Luis Rey; sources of sand for the project; advantage of the chevron shape and potential surf space; funding sources; approval of offshore site off the pier; and concept of fully submerged reef park.

3. ORAL AND WRITTEN COMMUNICATION
Amanda Quintanilla expressed appreciation to the presenters; indicated support for OCTA and its grant funding for beaches.

George Gregory suggested building a harbor; removing vehicles from the 5 Freeway; harvesting sand; and need for cooperation from the Railroad.

4. UNFINISHED BUSINESS AND UPDATES
A. Subcommittee Updates on Work Plan Items:
i. Sand Acquisition Subcommittee – Ayer, Dow, Van Nort
Member Dow discussed focus to identify a borrow site for sand replenishment. ii. Sand Retention Subcommittee - Dolegowski, Jacobs, Schmitt 197
Minutes of the Regular Meeting of the Coastal Advisory Committee of November 21, 2024 Page 3 None.
iii. Water Quality Subcommittee – Ambrose, Dolegowski, Van Nort Chair Ambrose discussed continued work on the Poche project.

Member Dolegowski discussed the change to emphasize public education on problem, done to date and plans for the future on Poche.

B. Consideration of Providing Coastal Advisory Committee Presentation on Water Quality to City Council
Chair Ambrose discussed the goal to move forward in the near future.

5. NEW BUSINESS – None.

6. ITEMS FROM STAFF
A. Coastal Items Updates
Senior Planner Rehm reported on the Water Quality Subcommittee visits in October.

B. AB1234 Training Update
Senior Planner Rehm announced the required Ethics Training.

7. ITEMS FROM COMMITTEE MEMBERS
A. Committee Member Items
Member Dow discussed the failure of Measure BB and the need for funding sources and encouraged the Committee to redouble its efforts to educate the public.

The Committee requested an upcoming agenda item providing an overview of the ballot measure and Committee discussion. Chair Ambrose encouraged community education efforts. Member Ayer advocated for public education and the need to counter OCTA messaging.

8. ADJOURNMENT

MEMBER AYER MOVED AND MEMBER SCHMITT SECONDED A MOTION TO ADJOURN THE MEETING AT 6:57 P.M. TO THE REGULAR COASTAL ADVISORY COMMITTEE MEETING TO BE HELD ON THURSDAY, JANUARY 16, 2025, AT 4:00 198
Minutes of the Regular Meeting of the Coastal Advisory Committee of November 21, 2024 Page 4 P.M. AT CITY HALL COUNCIL CHAMBERS, LOCATED AT 910 CALLE NEGOCIO, SAN CLEMENTE, CALIFORNIA. THE MOTION CARRIED 6-0, VICE CHAIR JACOBS ABSENT.

Respectfully submitted,
______________________________
Susan Ambrose, Chair
Attest: ______________________________
Zach Rehm, Principal Planner
199
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: February 4, 2025 Agenda Item: (6)

..ag endizedby
..end
Subject:
..titl e
PUBLIC SAFETY COMMITTEE REGULAR MEETING MINUTES OF NOVEMBER 26, 2024. ..body
..recommendation
..end
200
DRAFT
These minutes will be considered for approval at the Public Safety Committee Meeting of 12/17/2024.

CITY OF SAN CLEMENTE

MINUTES OF THE REGULAR MEETING OF THE

PUBLIC SAFETY COMMITTEE
NOVEMBER 26, 2024
City Hall
Council Chambers, 2nd Floor
910 Calle Negocio
San Clemente, CA 92673

1. CALL TO ORDER
Chair Berkuta called the Regular Meeting of the Public Safety Committee of the City of San Clemente to order at 3:01 p.m.

2. PLEDGE OF ALLEGIANCE
Dave Adams of the American Red Cross led the Pledge of Allegiance.

3. ROLL CALL
Committee
Members Present: Vice Chair Michael Greenwald
Mark Rhoden
Captain Jay Christian
Chief Cheyne Maule
Tom Hazelton
Committee Members Absent:

Chief Rod Mellott
Chair Nick Berkuta
Staff Present: Adam Atamian, Community Development Director Meredith Scott, Community Development Coordinator
Danielle Sorahan, Code Compliance Manager
Trevor Milosch, Park Ranger Supervisor

4. SPECIAL ORDERS OF BUSINESS / PRESENTATIONS
A. Presentation by Dave Adams, Government Operations Volunteer, American Red Cross on Local and National Red Cross Programs 201
DRAFT

Minutes of the Regular Meeting of the Public Safety Committee of November 26, 2024 Dave Adams discussed the history of the Red Cross; importance of volunteer work; Disaster Assistance Team; shelter services; Hurricane Harvey; and thanked the City for its commitment to the program.

In response to Committee questions, Mr. Adams discussed the one-hour response time.

The Committee commended the Red Cross for its services.

B. Presentation by Community Development Director Adam Atamian on the City’s Update to the Local Hazard Mitigation Plan (LHMP) Community Development Director Atamian provided an overview of the purpose and requirements of a local hazard mitigation plan; last update in 2004; update process; components of the plan; mitigation actions; community outreach and engagement; public review period; plan adoption; and future updates to other emergency operation plans and programs.

In response to Committee questions, Community Development Director Atamian discussed the five-year life of the plan; grant opportunities; communication preparedness in disaster; timeframe for the plan update; and provided a synopsis of how this plan fits into the currently-identified work plan in the City’s Emergency Management program.

5. MINUTES
A. Minutes from the Regular Public Safety Committee Meeting of October 22, 2024

MOTION BY VICE CHAIR GREENWALD, SECOND BY COMMITTEE MEMBER RHODEN, AND CARRIED 3-0-1 (CHAIR BERKUTA ABSENT) to approve the minutes.

6. ORAL AND WRITTEN COMMUNICATION
None.

7. REVEWS AND RECOMMENDATIONS
A. OCSD Performance Measures FY2024 Q4
Captain Christian provided an overview of the Q4 performance measures.

In response to Committee questions, Captain Christian discussed the response time under five minutes; and discrepancies based on the older database. 202
DRAFT

Minutes of the Regular Meeting of the Public Safety Committee of November 26, 2024 B. OCFA Performance Measures FY2024 Q4
Chief Maule provided an overview of the Q4 performance measures.

C. Marine Safety Performance Measures FY2024 Q4
This item was deferred.

8. NEW BUSINESS
None.

9. UNFINISHED BUSINESS
A. Public Safety Committee Annual Work Plan FY2024-2025 (1) Communications and Disaster Preparedness Project Update Member Hazelton announced an upcoming conference call with CALOES regarding tsunami signage.
(2) Homelessness and Best Management Practices for Public Safety Personnel Project Update
Member Rhoden discussed current homelessness and clearing on the south end. Captain Christian discussed efforts by the Community Outreach team.

Vice Chair Greenwald requested that Community Outreach provide a count of homeless. Code Compliance Manager Sorahan indicated the data was on the website.

In response to Member Hazelton, Community Development Director Atamian indicated Community Outreach provided updates to the Human Affairs Committee.
(3) Neighborhood Watch
Vice Chair Greenwald discussed the existing signs and proposed new signs. Community Development Director Atamian indicated he would confirm whether Council approval was necessary.
(4) Statistical Information and Review
None.
203
DRAFT

Minutes of the Regular Meeting of the Public Safety Committee of November 26, 2024 (5) Human Trafficking
None.
(6) E-Bicycle/Traffic Safety
None.
(7) Technology Review
None.
(8) Review of Urgent Matters
None.
(9) Park Ranger Program
Park Ranger Supervisor Milosch discussed the current process for incident reporting and tracking; and proposed software solutions to better track, and forecast, Park Ranger actions.

In response to Committee questions, Supervisor Milosch discussed use by State Parks; HIPPA compliance; use of cell phones; and cost of software.

Vice Chair Greenwald encouraged staff to acquire more data on current staff time and costs to justify new technology solutions.

10. REPORTS OF COMMITTEE MEMBERS AND STAFF
A. Police Services – Orange County Sheriff’s Department Capt. Christian Captain Christian reported on calls, arrests and citations; child custody exchange spaces; Carve with a Cop event; and National Prescription Take Back Day.

B. Fire Services – Orange County Fire Authority, Chief Maule Chief Maule discussed recent incidents; the Quarterly Division 3 Newsletter; Firefighter and Deputy of the Year awards; QRF helicopter program; and SAFER grant allowing the additional of a fourth position to engines; C. Marine Safety – Marine Safety Division Capt. Mellott None.
204
DRAFT

Minutes of the Regular Meeting of the Public Safety Committee of November 26, 2024 D. Committee Chair
None.

E. Committee members
None.

F. City Staff
(1) AB1234 Training Update
Community Development Director Atamian announced the upcoming training.

He indicated Seth Neri had resigned and the Council would consider options for appointment at its December 10, 2024 meeting.

Committee Member Rhoden relayed apologies on behalf of Mr. Neri.

11. ADJOURNMENT

MOTION BY VICE CHAIR GREENWALD, SECOND BY COMMISSIONER
HAZELTON, AND CARRIED 3-0-1 (CHAIR BERKUTA ABSENT), to adjourn the meeting at 4:26 p.m., and to move the Regularly Scheduled Meeting of the Public Safety Committee from Tuesday, December 24, 2024 to Tuesday, December 17, 2024, at 3:00 p.m. at City Hall in Council Chambers at 910 Calle Negocio, San Clemente, California.

Respectfully submitted,
______________________________
Nick Berkuta, Chair
Attest:
_______________________________
Danielle Sorahan, Code Compliance Manager
205
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: February 4, 2025 Agenda Item: (7)

..ag endizedby
..end
Subject:
..titl e
PUBLIC SAFETY COMMITTEE REGULAR MEETING MINUTES OF DECEMBER 17, 2024. ..body
..recommendation
..end
206
DRAFT
These minutes will be considered for approval at the Public Safety Committee Meeting of 1/28/2025.

CITY OF SAN CLEMENTE

MINUTES OF THE REGULAR MEETING OF THE

PUBLIC SAFETY COMMITTEE
DECEMBER 17, 2024
City Hall
Council Chambers, 2nd Floor
910 Calle Negocio
San Clemente, CA 92673

1. CALL TO ORDER
Chair Berkuta called the Regular Meeting of the Public Safety Committee of the City of San Clemente to order at 3:06 p.m.

2. PLEDGE OF ALLEGIANCE
Vice Chair Greenwald led the Pledge of Allegiance.

3. ROLL CALL
Committee
Members Present: Chair Nick Berkuta
Vice Chair Michael Greenwald
Tom Hazelton
Captain Jay Christian
Committee
Members Absent: Chief Rod Mellott
Chief Cheyne Maule
Mark Rhoden
Staff Present: Adam Atamian, Community Development Director Racheal Perez, Administrative Assistant, Public Works
Danielle Sorahan, Code Compliance Manager
Trevor Milosch, Park Ranger Supervisor
Natanya Wilcher, Office Specialist II

4. SPECIAL ORDERS OF BUSINESS / PRESENTATIONS
None.
207
DRAFT

Minutes of the Regular Meeting of the Public Safety Committee of December 17, 2024

5. MINUTES
A. Minutes from the Regular Public Safety Committee Meeting of November 26, 2024
Chair Berkuta provided suggested amendments as follows: Item 4B-change the word “timeframe” to two words “time frame”, Item 11-change the title of COMMISSIONER to COMMITTEE MEMBER.

MOTION BY VICE CHAIR GREENWALD, SECOND BY COMMITTEE
MEMBER HAZELTON, AND CARRIED 3-0-1 (MEMBER RHODEN
ABSENT) to approve the minutes with suggested amendments.

6. ORAL AND WRITTEN COMMUNICATION
Tom Streeter Co-Chair San Clemente Homeless Collaborative, discussed consideration of a series of churches hosting homeless tents and requested Committee input. He stated the City’s Municipal Code would need to be amended to allow churches to have temporary tents for homeless people.

MOTION BY VICE CHAIR GREENWALD, SECOND BY COMMISSIONER
HAZELTON, AND CARRIED 3-0-1 (MEMBER RHODEN ABSENT) to bring back discussion to consider amending the City Municipal Code to allow temporary tent camping on selected church properties.

7. REVIEWS AND RECOMMENDATIONS
A. Marine Safety Performance Measures FY2024 Q4 (deferred from previous meeting)
This item was deferred.

B. Code Compliance Performance Measures FY2024 Q4
Code Compliance Manager Sorahan provided an overview of the Q4 performance measures.

In response to Committee questions, Code Compliance Manager Sorahan explained elimination of anonymous reporting; and statistics for Code Compliance Officers.

C. Park Ranger Performance Measures FY2024 Q4
Park Ranger Supervisor Milosch presented the Q4 performance measures. 208
DRAFT

Minutes of the Regular Meeting of the Public Safety Committee of December 17, 2024 In response to Committee questions, Park Ranger Supervisor Milosch provided details on public contacts, limitations on issuing citations due to training requirements, the use of radios, and the need for report-writing software and additional equipment to enhance accessibility and ensure safety.

8. NEW BUSINESS
None.

9. UNFINISHED BUSINESS
A. Public Safety Committee Annual Work Plan FY2024-2025 (1) Communications and Disaster Preparedness Project Update Chair Berkuta presented a video on Tsunami Preparedness in Southern California. He indicated the Committee would work with Rachel Perez on signage and education efforts.
(2) Homelessness and Best Management Practices for Public Safety Personnel Project Update
None.
(3) Neighborhood Watch
Vice Chair Greenwald requested an update on the sign inventory. Director Atamian stated he would provide an update in January.
(4) Statistical Information and Review
None.
(5) Human Trafficking
None.
(6) E-Bicycle/Traffic Safety
None.
(7) Technology Review
None.
209
DRAFT

Minutes of the Regular Meeting of the Public Safety Committee of December 17, 2024 (8) Review of Urgent Matters
None.
(9) Park Ranger Program
In response to Committee questions, Park Ranger Supervisor Milosch explained the different City parks and facilities patrolled by the Park Rangers.

10. REPORTS OF COMMITTEE MEMBERS AND STAFF
A. Police Services – Orange County Sheriff’s Department Capt. Christian Captain Christian reported on incidents and investigations. In response to Committee questions, Captain Christian explained enforcement of the e-bike ordinance.

B. Fire Services – Orange County Fire Authority, Chief Maule None.

C. Marine Safety – Marine Safety Division Capt. Mellott None.

D. Committee Chair
Chair Berkuta introduced Rachel Perez, the Administrative Assistant for the Public Works Department. He highlighted her recent trainings and her significant contributions to the City's emergency preparedness initiatives, especially noting her efforts in the absence of an Emergency Disaster Coordinator.

E. Committee members
Vice Chair Greenwald asked the process from filling the vacancy on the Committee. Community Development Director Atamian anticipated the Council would fill the vacancy in July of 2025.

F. City Staff
Community Development Director Atamian announced the City’s Holiday and Furlough Schedule, detailing that due to this schedule, operational hours would be shortened and the number of staff available would be 210
DRAFT

Minutes of the Regular Meeting of the Public Safety Committee of December 17, 2024 reduced during the holiday period. Additionally, Director Atamian presented a separate update on the City's emergency management planning, emphasizing the ongoing strategies to enhance citywide preparedness and safety.

11. ADJOURNMENT

MOTION BY VICE CHAIR GREENWALD, SECOND BY COMMITTEE MEMBER HAZELTON, AND CARRIED 3-0-1 (MEMBER RHODEN ABSENT), to adjourn the meeting at 4:26 p.m., to the Next Regular Meeting of the Public Safety Committee scheduled to be held on Tuesday, January 28, 2025, at 3:00 p.m. at City Hall in Council Chambers at 910 Calle Negocio, San Clemente, California.

Respectfully submitted,
______________________________
Nick Berkuta, Chair
Attest:
_______________________________
Danielle Sorahan, Code Compliance Manager
211
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: February 4, 2025 Agenda Item: (8)
Submitted By: Choose an item.

Prepared By:

Subject:
..titl e
PLANNING COMMISSION REGULAR STUDY SESSION MINUTES OF DECEMBER 18, 2024 ..body Fiscal Impact:

Summary:

Background:

Council Options:

Environmental Review/Analysis:

Recommended Actions:

Staff Recommendation ..recommendation
..end
Attachment:

Notification:
212
These minutes will be considered for approval at the Planning Commission meeting of 2-5-2025.

MINUTES OF THE STUDY SESSION

OF THE CITY OF SAN CLEMENTE

PLANNING COMMISSION
December 18, 2024 @ 5:00 p.m.

San Clemente City Hall Council Chamber
910 Calle Negocio, San Clemente, CA 92673
Teleconference via www.san-clemente.org

CALL TO ORDER
Chair Cosgrove called the Study Session of the Planning Commission of the City of San Clemente to order at 5:21 p.m. The meeting was offered in person at San Clemente City Hall Council Chambers, 910 Calle Negocio, San Clemente, California, 92673, and also via live stream from the City’s YouTube Channel.

ROLL CALL
Commissioners Present: Barton Crandell, Scott McKhann, Karen Prescott-Loeffler, Chair Cameron Cosgrove, and Brent Davis
Commissioners Absent: Chair Pro Tem Gary P. McCaughan, M.D.

Staff Present: Jonathan Lightfoot, City Planner
Gena Burns, Deputy City Attorney
Tamara Tatich, Recording Secretary
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. Wireless Telecommunications Alternative Site Analysis Process A study session focused on reviewing the Wireless Telecommunications Alternate Site Analysis Process.

A Presentation by Robert May, Managing Partner at Telecom Law Firm, who provided an educational overview of federal laws and best practices for evaluating wireless applications.

Federal Telecommunications Laws:
• Section 332: Governs personal wireless service facilities and prohibits unreasonable discrimination.
• Section 253: Addresses telecommunications services and infrastructure in public rights-of-way.
• Section 1455a: Focuses on modifications to existing facilities. 213
Minutes of Planning Commission Study Session of December 20, 2024 Page 2 Key Concepts Discussed:
• Effective Prohibitions: Denial of applications must not prevent providers from closing service gaps or inhibit fair competition.
• Least Intrusive Means: Applicants must explore alternative sites. Cities can suggest less intrusive alternatives if proposed sites conflict with local values. • Material Inhibition Standard: Local rules must not materially inhibit competition, though not all challenges or costs qualify as material. • RF Compliance: Cities can enforce compliance with FCC exposure standards but cannot impose stricter rules. Testing for compliance before approval and monitoring compliance over time are permitted.
• Wireless Master Plan: San Clemente's existing Wireless Master Plan outlines preferred locations and design standards. Updates to the plan may be considered in the future.
• General Guidelines for Local Policies: Emphasis on clear, comprehensive, and ranked preferences for wireless facility placement and design to align with local values.
• Annual Compliance Checks: Cities cannot mandate annual RF testing but can require annual affirmations of compliance by qualified engineers. • Educational Objective: The session aimed to inform Commissioners about their decision-making framework and federal guardrails, rather than to develop new standards.

ADJOURNMENT

IT WAS MOVED BY CHAIR COSGROVE TO ADJOURN THE STUDY SESSION UNTIL ITS NEXT REGULARLY SCHEDULED MEETING ON JANUARY 22, 2025, AT 5:00 P.M.

Respectfully submitted,
Cameron Cosgrove, Chair
Attest:

Jonathan Lightfoot, City Planner
214
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: February 4, 2025 Agenda Item: (9)
Submitted By: Choose an item.

Prepared By:

Subject:
..titl e
PLANNING COMMISSION REGULAR MEETING MINUTES OF DECEMBER 18, 2024 ..body Fiscal Impact:

Summary:

Background:

Council Options:

Environmental Review/Analysis:

Recommended Actions:

Staff Recommendation ..recommendation
..end
Attachment:

Notification:
215

MINUTES OF THE REGULAR MEETING

OF THE CITY OF SAN CLEMENTE

PLANNING COMMISSION
December 18, 2024 @ 6:00 p.m.

San Clemente City Hall Council Chamber
910 Calle Negocio, San Clemente, CA 92673
Teleconference via www.san-clemente.org

CALL TO ORDER
Chair Cosgrove called the Regular Meeting of the Planning Commission of the City of San Clemente to order at 6:20 p.m. The meeting was offered in person at San Clemente City Hall Council Chambers, 910 Calle Negocio, San Clemente, California, 92673, and also via live stream from the City’s YouTube Channel.

2. PLEDGE OF ALLEGIANCE
Chair Cameron Cosgrove led the Pledge of Allegiance.

3. ROLL CALL
Commissioners Present: Chair Pro Tem M. Steven Camp; Barton Crandell; Chair Cameron Cosgrove; Brenton Davis and Karen Prescott-Loeffler
Commissioners Absent: Vice Chair Gary P. McCaughan, M.D Staff Present: Jonathan Lightfoot, City Planner
Gena Burns, Deputy City Attorney
Zachary Ponsen, Assistant City Engineer
Ryan Kim, Senior Civil Traffic Engineer
Tamara Tatich, Recording Secretary
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.

4. SPECIAL ORDER OF BUSINESS/SPECIAL PRESENTATION
None.

5. MINUTES
A. Receive and file Minutes from the Planning Commission Regular Meeting of November 20, 2024.

IT WAS MOVED BY COMMISSIONER MCKHANN, SECONDED BY COMMISSIONER DAVIS, AND CARRIED 6-0, COMMISSIONER MCCAUGHAN ABSENT, TO RECEIVE AND 216
Minutes of Regular Planning Commission Meeting of December 18, 2024 Page 2

FILE THE MINUTES FROM THE PLANNING COMMISSION REGULAR MEETING OF NOVEMBER 20, 2024.

6. ORAL AND WRITTEN COMMUNICATION
None.

7. CONSENT CALENDAR
None.

8. PUBLIC HEARING
None.

9. NEW BUSINESS
A. Camino Mira Costa Pedestrian Refuge Island
Assistant City Engineer Zachary Ponsen and Senior Civil Traffic Engineer Ryan Kim presented a PowerPoint “Pedestrian Refuge Island on Camino Mira Costa near Mira Costa Park.” A copy of the Presentation is on file in the Planning Division.

Assistant City Engineer Ponsen explained that the project is before the Planning Commission to review, provide feedback to staff and approve the project be presented to City Council with or without any modifications.

Assistant City Engineer Ponsen presented a history of the Camino Mira Costa’s development over time; and that local residents, many of which are seniors or families with young children, requested the installation of a pedestrian refuge island due to a high pedestrian use along the street for residents walking to the park, accessing shopping centers, restaurants and other business services; and that the street is also overflow parking for many of the neighborhoods. It was also explained that drivers in the surrounding communities frequently use Camino Mira Costa, making it a highly used street. Assistant City Engineer Ponsen stated that the street is 65’ wide, and that part of the analysis is the time it takes to cross the street, and that there is a worksheet that provides the calculations that determined the number of pedestrians crossing the street is less than 90 to100 per hour during peak usage, which is not high enough to warrant a crosswalk. Therefore, the recommendation is to shorten the distance to cross by installing an island in the median that gives pedestrians a safe-harbor to safely cross the street. It is believed that a raised median will also slow the speed of traffic, and it is recommended that 30’ of red curb be installed to prevent parking where pedestrians are to cross.

There is also a concern with a crosswalk that it creates a false sense of security.

Discussion Summary:
217
Minutes of Regular Planning Commission Meeting of December 18, 2024 Page 3 • Commissioners expressed concern that too many signs will result in visual clutter.
• Suggestion of flashing crosswalk, similar to downtown area, whereby staff stated this could happen in the future if there is a need. • Replacing the existing smaller signs with larger signs for better visibility is included in the project.

Chair Cosgrove opened the public hearing.

Public Comments:

Heather Pepper, resident supported the project and stated it would make crossing while walking her dogs to the park safer, and stated that signage is lost due to the high number of cars and RVs parked on the street.

Angie Mascari, Mira Costa Villa resident supported the project, thanked staff for their work on the project, and stated that children and families cross the street often throughout the day.

Daniel Zonca, thanked the staff and commissioners for the opportunity to speak and stated that many seniors enjoying walking every day, but many are too afraid to cross the street to walk to the park and suggested a crossing guard.

Carolyn Nouoty, Seascape Village resident supported the project and stated that there are a lot of young families and seniors would benefit from the refuge island.

Chair Cosgrove closed the public hearing.

Comments/Suggestions:
• The Commissioners supported the refuge island and see this as a viable solution to make the crossings safer.
• Staff expressed concerned with installing rumble stripes because of noise issues.
• Staff preferred installing a stamped red concrete on raised medians rather than installing landscape for budgetary reasons, line of sight issues and long-term maintenance.

Modifications to Recommendation:
• Add street markings such as “x-ing pedestrian” or “crossing ahead” to alert drivers. Staff is to research phrase for the markings to be presented to City Council.
• Add street markings in bike lanes to alert electric bike riders to slow down. • Replace the “no left or u-turn” sign with smaller yellow pedestrian sign. • Keep the double yellow striping in the 10’ crossing area. • Install a sign to advise pedestrians that cars do not stop. 218
Minutes of Regular Planning Commission Meeting of December 18, 2024 Page 4

IT WAS MOVED BY COMMISSIONER MCKHANN, SECONDED BY COMMISSIONER DAVIS, AND CARRIED 6-0, COMMISSIONER MCCAUGHAN ABSENT, TO RECOMMEND

TO THE CITY COUNCIL TO DETERMINE THAT THE PROJECT IS CATEGORICALLY

EXEMPT FROM THE REQUIREMENTS OF THE CEQA PURSUANT TO CEQA GUIDELINES SECTIONS 15306 (CLASS 6, INFORMATION COLLECTION) AND 15301.K (CLASS 1, EXISTING FACILITIES) OF THE STATE CEQA GUIDELINES; TO

RECOMMEND THAT THE CITY COUNCIL APPROVE A PEDESTRIAN REFUGE ISLAND

ON CAMINO MIRA COSTA WITH THE ABOVE-REFERENCED MODIFICATIONS, AND TO ALLOW STAFF TO CONTINUE TO REFINE THE RECOMMENDATION.

B. iPad IOS and Application Review
City Planner Jonathan Lightfoot advised the Commissioners that the staff member assigned to present the application review of the new iPads being distributed this evening is ill and unable to attend; and the intent is that Commissioners would be able to access meeting materials, General Plan and other documents, and their City emails more efficiently. City Planner Lightfoot suggested any Commissioner in need of a one-on-one with staff to please reach out before the next meeting.

Implementation to phase out paper materials is January, 2025.

10. OLD BUSINESS

11. REPORTS OF COMMISSIONERS AND STAFF
City Planner Lightfoot thanked everyone for being in attendance recognizing the time of year.

City Planner Lightfoot gave an update on the Local Coastal Program (LCP) Grant:

1. Lidar Survey of the City that will provide a better understanding of the bluffs, canyons edges and other features. The fly-over is expected in the next month.

There will be public announcements through the City’s media channels.

2. Principal Planner Zach Rehm is working with the consultant on a parking study, and were present at the Glitz and acquired 127 intercept surveys from the public in attendance. In January 2025, the first low-season parking count will occur after Martin Luther King holiday weekend, and the peak will be done midJuly 2025. Surveys will also include the downtown businesses.

City Planning Lightfoot announced that City Hall will be closed at 12:00 p.m. Tuesday, December 24, 2024, and reopen at 7:30 a.m. Monday, January 6, 2025.

Chair Cosgrove announced that he would not be present for the January 22, 2025 meeting.

A. Tentative Future Agenda
B. Administrative Development Permit Report
219
Minutes of Regular Planning Commission Meeting of December 18, 2024 Page 5

12. ADJOURNMENT

THERE BEING NO OTHER BUSINESS BEFORE THE COMMISSION, IT WAS

MOVED BY CHAIR COSGROVE, SECONDED BY COMMISSIONER MCKHANN, AND CARRIED 6-0, COMMISSIONER VICE CHAIR CAMP ABSENT, TO ADJOURN THE MEETING AT 7:15 P.M. TO THE REGULAR PLANNING COMMISSION MEETING TO BE HELD IN-PERSON ON JANUARY 22, 2025, AT 6:00 P.M., AT THE SAN CLEMENTE CITY HALL COUNCIL CHAMBERS LOCATED AT 910 CALLE NEGOCIO, 2
nd FLOOR, SAN CLEMENTE, CALIFORNIA.

Respectfully submitted,
Cameron Cosgrove, Chairman
Attest:

Jonathan Lightfoot, City Planner
220
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: February 4, 2025 Agenda Item: (1)
..ag endizedby
..end
Subject:
..titl e
Approve Wire Transfer Nos.
3174 through 3181 and Warrant Nos.
601860 through 601937, paid on
1-10-25, in the amount of $3,580,124.89
..end
221
222
223
224
225
226
227
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: February 4, 2025 Agenda Item: (2)
..ag endizedby
..end
Subject:
..titl e
Approve Warrant Nos.
601938 through 602123, paid on
1-17-25, in the amount of $1,548,477.76
..end
228
229
230
231
232
233
234
235
236
237
238
239
240
241
242
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: February 4, 2025 Agenda Item: (3)
..ag endizedby
..end
Subject:
..titl e
Approve Wire Transfer Nos.
3182 through 3185 and Warrant Nos.
602124 through 602238, paid on
1-24-25, in the amount of $1,863,689.49
..end
243
244
245
246
247
248
249
250
251
252
253
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: February 4, 2025 Agenda Item: (4)
..ag endizedby
..end
Subject:
..titl e
Approve Warrant Nos.
602239 through 602362, paid on
1-31-25, in the amount of $1,578,015.63
TOTAL WARRANT REGISTER $8,570,307.77 ..end
254
255
256
257
258
259
260
261
262
263
264
265
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: February 4, 2025 Agenda Item:
..ag endizedby
..end
Subject:
..titl e
Approve Warrant No. 965 and
Automatic Deposit Advises 100041
through 100314, for the period
12-23-24 through 1-5-25, paid
on 1-10-25, in the amount of $511,365.70
..end
266
267
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: February 4, 2025 Agenda Item:
..ag endizedby
..end
Subject:
..titl e
Approve Warrant Nos. 966 through 967
and Automatic Deposit Advises 100315
through 100629, for the period
1-6-25 through 1-19-25, paid
on 1-24-25, in the amount of $515,970.29
TOTAL PAYROLL REGISTER $1,027,335.99 ..end
268
269
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: February 4, 2025 Agenda Item: 11D.

Submitted By: Beaches, Parks and Recreation
Prepared By: Samantha Wylie, Beaches, Parks & Recreation Director Subject:
..titl e

CONSIDERATION OF A RESOLUTION TO ACCEPT AND FILE NOTICES OF COMPLETION FOR THE SAN GORGONIO PARK PLAYGROUND EQUIPMENT REPLACEMENT, CIP NO. 11148, AND STEED MEMORIAL PARK PLAYGROUND EQUIPMENT REPLACEMENT, CIP NO. 12107..body
Fiscal Impact:

The Steed Memorial Park Playground Equipment Replacement, CIP No. 12107, and San Gorgonio Park Playground Equipment Replacement, CIP No. 11148, were funded through the Park Asset Replacement Fund in the 2022-2023 Capital Improvement Program (Fund 820). The final cost of the contract was $766,783.

Summary:

The Steed Memorial Park and San Gorgonio Park Playground Equipment Replacements have been completed and the projects are ready to accept and file the Notice of Completion.

Background:

The scope of work included purchasing and installing new playground equipment at San Gorgonio Park (2916 Via San Gorgonio) and Richard T. Steed Memorial Park (247 Avenida La Pata). Both playgrounds were identified as crucial asset replacements based on the 2015 playground priority replacement schedule adopted and approved by City Council and were completed by Kompan California, Inc.

The San Gorgonio Park playground was completed on September 22, 2023; and the Steed Memorial Park playground was completed on July 17, 2023.

Playground Equipment Replacement Costs
San Gorgonio Park Playground $619,895
Steed Memorial Park Playground $146,888
Total $766,783
270
Meeting Date: February 4, 2025 Agenda Item: 11D.

CITY OF SAN CLEMENTE 2
Steed Memorial Park Old Playground Steed Memorial Park New Playground San Gorgonio Park Old Playground San Gorgonio Park New Playground Note that the San Gorgonio Park playground substrate surface replacement is underway and being completed as a separate project.

Council Options:
 Adopt Resolution No. 25-14, which would accept the completed Steed Memorial Park Playground Equipment Replacement, CIP No. 12107, and San Gorgonio Park Playground Equipment Replacement, CIP No. 11148.
 Modify and adopt Resolution No. 25-14.
 Continue the item with direction to provide additional information.

Environmental Review/Analysis:

These projects were previously determined to be categorically exempt from the California Environmental Quality Act (CEQA) under Class 1 (Existing Facilities, 14 CCR section 15301) of the State CEQA Guidelines.
271
Meeting Date: February 4, 2025 Agenda Item: 11D.

CITY OF SAN CLEMENTE 3
Recommended Actions:

Staff Recommendation ..recommendation
Staff recommends that the City Council Adopt Resolution No. 25-14, which will:

1. Accept the Steed Memorial Park Playground Equipment Replacement, CIP No. 12107, and San Gorgonio Park Playground Equipment Replacement, CIP No. 11148, from Kompan California, Inc.; and

2. Authorize the Public Works Director to execute and record Notices of Completion for the Steed Memorial Park Playground Equipment Replacement, CIP No. 12107, and San Gorgonio Park Playground Equipment Replacement, CIP No. 11148; and

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, Kompan California, Inc.; and

4. Authorize the City Clerk to release the performance bond for these projects upon receipt of a warranty bond or bonds in a form acceptable to the Public Works Director in the amount of 25% of the total construction cost.
..end
Attachment:

1. Resolution No. 25-14

2. Notice of Completion San Gorgonio Playground

3. Notice of Completion Steed Park Playground
Notification:

None.
272
Attachment 1
RESOLUTION NO. 25-14

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SAN CLEMENTE, CALIFORNIA, ACCEPTING THE WORKS

OF IMPROVEMENT AND AUTHORIZING THE

RECORDATION OF NOTICES OF COMPLETION FOR THE
RICHARD T. STEED MEMORIAL PARK AND SAN

GORGONIO PARK EQUIPMENT REPLACEMENTS (CIP
NOS. 11148 AND 12107)
WHEREAS, on September 20, 2022, the City Council awarded a construction contract to Kompan California, Inc. for the Steed Memorial Park Playground Equipment Replacement, CIP No. 12107, and San Gorgonio Park Playground Equipment Replacement, CIP No. 11148; and
WHEREAS, the work consisted of the replacement of all playground equipment and substrate surfacing at both sites; and
WHEREAS, the Project Manager has duly certified to the construction and completion of the projects in a manner satisfactory for the City of San Clemente.

NOW, THEREFORE, the City Council of the City of San Clemente does hereby resolve as follows:

Section 1. The Richard T. Steed Memorial Park (CIP No. 12107) and San Gorgonio Park Playground (CIP No. 11148) Equipment Replacements have been completed and are hereby accepted from Kompan California, Inc.

Section 2. The Public Works Director/City Engineer of the City of San Clemente is hereby authorized and directed to execute and file Notices of Completion for the acceptance of said projects.

Section 3. The City Clerk is authorized and directed to release the payment bond 35 days from the recordation of the respective Notices of Completion upon verification with the Engineering Division that no liens have been levied against the Contractor, Kompan California, Inc.

Section 4. The City Clerk to release the performance bond for these projects upon receipt of a warranty bond or bonds in a form acceptable to the Public Works Director in the amount of 25% of the total construction cost.

Section 5. The City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.

PASSED AND ADOPTED this _____ day of ____________________, _______. 273
Resolution No. 25-14 Page 2
ATTEST:
___________________________ __________________________
City Clerk of the City of Mayor of the City of San
San Clemente, California Clemente, California

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) §

CITY OF SAN CLEMENTE )
I, LAURA CAMPAGNOLO, City Clerk of the City of San Clemente, California, do hereby certify that Resolution No. 25-14 was adopted at a regular meeting of the City Council of the City of San Clemente held on the _______ day of _______________________, _________, by the following vote:

AYES:

NOES:

ABSENT:

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Clemente, California, this _____ day of _________________, ________. __________________________
CITY CLERK of the City of
San Clemente, California
Approved as to form:
___________________________
Elizabeth A. Mitchell, City Attorney
274
Attachment 2
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: San Gorgonio Park Playground Equipment Replacement, CIP No. 11148

2. Date of completion: September 22, 2023.

3. Street address or legal description of the project site: 2916 Via San Gorgonio, San Clemente, CA.

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: Kompan California, Inc., 22431 Antonio Parkway, Suite B160-426, Rancho Santa Margarita, CA 92688.

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. _________________________________
Dave Rebensdorf, Public Works Director / City Engineer
City of San Clemente
275
Attachment 3
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: Richard T. Steed Memorial Park Playground Equipment Replacement, CIP No. 12107

2. Date of completion: July 17, 2023.

3. Street address or legal description of the project site: 247 Avenida La Pata, San Clemente, CA 92672.

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: Kompan California, Inc., 22431 Antonio Parkway, Suite B160-426, Rancho Santa Margarita, CA 92688.

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. _________________________________
Dave Rebensdorf, Public Works Director / City Engineer
City of San Clemente
276
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org

AGENDA REPORT

CITY OF SAN CLEMENTE

CITY COUNCIL MEETING
CITY OF SAN CLEMENTE 1
Meeting Date: February 4, 2025 Agenda Item: 11E.

Submitted By: Finance and Administrative Services
Prepared By: Brian Brower, Administrative Services Director Matthew Schmelzel, Senior Management Analyst
Subject:
..titl e

CONSIDERATION OF A RESOLUTION AWARDING CONTRACTS FOR TAX AND FEE

CONSULTING SERVICES TO HDL, APPROVING A PROJECT CONTINGENCY AND

AUTHORIZING THE CITY MANAGER TO EXECUTE THE AGREEMENTS, AND A

RESOLUTION DESIGNATING PERSONS AUTHORIZED TO OBTAIN SALES TAX INFORMATION ..body
Fiscal Impact:

The total 5-year contract charges for Tax and Fee Consulting Services are $626,535, excluding the annual CPI escalator and contingent fees for recovered revenue and excluding the 19% project contingency. A portion of contract costs are anticipated to be offset by recovered revenue.

Funding is available within the FY 2024-25 and 2025-26 Adopted Budgets in accounts 001-142- 43570, 001-142-43690, 001-144-43890 and 063-241-43456.

Summary:

The City conducted a Request for Proposal (RFP) for Tax and Fee Consulting Services, encompassing property tax, sales and use tax, business tax, and transient occupancy tax services. After evaluating the proposals, staff determined that Hinderliter, de Llamas & Associates and HdL Coren and Cone (collectively “The HdL Companies”) were the most qualified consultants. Before the City Council is the award of two professional services agreements to The HdL Companies, which would achieve a comprehensive solution for tax administrative, analytical and reporting services.

Background:

The City currently engages professional consultants with expertise in sales and property tax management services. For FY 2024-25, these tax categories are projected to contribute approximately $59.3 million, accounting for 70% of General Fund revenue. Hinderliter de Llamas & Associates and HdL Coren and Cone have provided these services to the City for some time.

With the conclusion of the current agreements, the City had the opportunity to search for local consultants, solicit new proposals and explore enhancements for these services.

In addition, staff assessed business license and transient occupancy tax administrative programs.

The City employs software services from CentralSquare Technologies, LLC to manage various processes including Building, Planning, Engineering, Business License, and Code Compliance.

Although this software was intended to enhance collaboration and streamline business license administration, the upgrade of the legacy system in 2021 revealed that the business license module had limited functionality and lacked essential features for effective management. This 277
Meeting Date: February 4, 2025 Agenda Item: 11E.

CITY OF SAN CLEMENTE 2
limitation was compounded by the absence of transient occupancy tax software to support administration. For fiscal year 2024-25, business license tax and transient occupancy tax revenues are expected to generate approximately $1.2 million and $3.5 million for General Fund revenue, underscoring the need for improved technology to effectively manage these programs.

To comprehensively address these critical services and revenue sources, staff issued a Request for Proposals in July 2024 via PlanetBids aimed at implementing a complete solution for administrative, analytical, auditing and reporting services relating to city tax revenues.

Consultants had the opportunity to submit proposals for each of the following project categories individually or collectively:
- Sales and Use Tax Audit, Recovery, Analysis and Information Services - Property Tax Audit, Recovery, Analysis and Reporting Services - Transient Occupancy Tax (TOT) Audit Analysis and Reporting Services - Business License and Transient Occupancy Tax Software Solution to Support Administration and Online Payment
The City received four proposals, each offering diverse methodologies to meet project objectives.

Proposals were submitted by GovOS, Avenue Insights, Hinderliter, de Llamas & Associates and HdL Coren and Cone, with 5-year cost of services projected in the amounts of $1,178,510, $782,500, $421,500 and $105,000, respectively (which amounts exclude annual CPI escalators and contingent fees). There were no proposals received from local vendors. Following the rating and interview process, The HdL Companies (located in Brea, California) emerged as the most cost efficient and qualified candidates, and they offered a complete solution.

The HdL Companies submitted the most comprehensive proposals, aligning with the City’s vison of achieving all project objectives, which included administration of sales and use tax, property tax, transient occupancy tax services and a software system to support business license and TOT operations. As part of the proposal, optional services were offered to compliment certain analytical, administrative and compliance project categories for future initiatives.

In evaluating the proposals, careful consideration was given to ensure a comprehensive approach to tax administration and project management. Although all firms were qualified to perform their proposed engagement categories, staff concluded that The HdL Companies had the most qualified and all-inclusive proposals, effectively addressing all project objectives. Property tax consulting services are offered under HdL Coren and Cone in the amount of $105,000, while sales tax, TOT, and software services are offered by sister company, Hinderliter, de Llamas & Associates in the amount of $421,500 for the five-year contract period.

Discussion:

As the recommended choice for government agencies serving 31 of the 34 Orange County Cities and 44 counties in California, The HdL Companies have an impressive history of audit recovery and revenue forecasting and enhancement, recovering more than $3 billion in new sales and use tax revenues for client agencies to date. The HdL Companies maintain the largest privately held sales, property and business tax databases in California. Additionally, their business license and TOT software application are best in class and vetted by numerous government agencies.

Engaging The HdL Companies for tax and fee consulting services offers significant advantages 278
Meeting Date: February 4, 2025 Agenda Item: 11E.

CITY OF SAN CLEMENTE 3
for the City, primarily through enhanced revenue maximization, auditing and revenue forecasting.

The HdL Companies specialize in identifying misallocations and reporting errors, ensuring that the City captures all potential tax revenue. Their extensive sales tax database allows City staff to access critical data for informed decision-making.

The HdL Companies’ expert audit services are designed to recover lost revenue due to inaccuracies and reporting misallocations. By preparing the necessary documentation to the California Department of Tax and Fee Administration (CDTFA), they streamline the sales tax recovery process, allowing the City to efficiently reclaim revenues that would otherwise remain uncollected. Additionally, quarterly reports provided by The HdL Companies offer valuable insight into economic trends and tax performance, enabling proactive adjustments to strategies based on current data. Seamless system integration provides real-time data that improves the identification of unregistered businesses and ensures compliance with licensing requirements.

It is important to note that the City is already funding sales and property tax consulting services at equivalent costs. The expanded project parameters will introduce new software and services to manage business license and transient occupancy tax, both of which urgently need enhancements for efficient administration. The current lack of system integration and technology limits the City’s ability to monitor compliance and collect revenues. Additionally, professional TOT auditing services will further assist in identifying unreported revenue and afford valuable training to hotel staff on compliance and best practices. By implementing these services, the City can address revenue shortfalls and strengthen relationships with the business community. The TOT auditing services are classified as optional in the contract, offering staff flexibility to phase in these services in alignment with software implementation schedules.

As part of this project, there are opportunities to engage in additional services to augment program administration. Supplementary services are offered by Hinderliter, de, Llamas and Associates for tax compliance, discovery, analytical studies, software customizations, training and special projects. After full implementation of the base contract services, staff will evaluate service gaps and implement additional services to enhance program management where needed. Project contingency reserves are budgeted to fund these services as well as unanticipated implementation costs.

The table below illustrates the 5-year cost for services and recommended contingency for supplemental services.

Service
Category Year-1 Year-2 Year-3 Year-4 Year-5 5-Year Total Property Tax $ 21,000 $ 21,000 $ 21,000 $ 21,000 $ 21,000 $ 105,000 Sales Tax $ 6,600 $ 6,600 $ 6,600 $ 6,600 $ 6,600 $ 33,000 Software
Services $ 127,500 $ 31,500 $ 31,500 $ 31,500 $ 31,500 $ 253,500 TOT Services $ 27,000 $ 27,000 $ 27,000 $ 27,000 $ 27,000 $ 135,000 Contract
Services $ 182,100 $ 86,100 $ 86,100 $ 86,100 $ 86,100 $ 526,500 Contingency
(19%) $ 20,007 $ 20,007 $ 20,007 $ 20,007 $ 20,007 $ 100,035 279
Meeting Date: February 4, 2025 Agenda Item: 11E.

CITY OF SAN CLEMENTE 4
*Contract costs exclude the annual CPI escalator and contingent fees for recovered revenues.

Finally, because sales tax information is confidential, the State of California and Taxation Code section 7056(b) provides that only designated staff or specifically authorized persons can obtain sales tax information. In 2017, the Taxpayer Transparency and Fairness Act transitioned responsibility of sales and use, fuel and cigarette taxes from the State Board of Equalization to the CDTFA. City Resolution No. 11-45 references the State Board of Equalization, which is no longer accurate and the CDTFA requires a new resolution to reflect the appropriate tax agency and further authorizing Hinderliter, de Llamas & Associates access to sales tax data on the City’s behalf. In addition, this creates an opportunity to update designated individuals to receive confidential sales and use tax information. Staff is requesting that the resolution update these individuals to the City Manager, Administrative Services Director, City Treasurer and Finance Manager, and their designees, and employees of Hinderliter, de Llamas & Associates.

Council Options:
 Adopt Resolution No. 25-15, which would award two agreements for Tax and Fee Consulting Services to The HdL Companies in an amount not to exceed $626,535 (excluding the annual CPI escalator and contingent fees for recovered revenue), approve a 19% project contingency, and authorize the City Manager to execute the agreements and adopt Resolution No. 25-16, which would repeal and replace Resolution No. 11-45, authorizing Hinderliter, de Llamas & Associates access to Sales and Use Tax Records and Documents and designating City Staff pursuant to California Revenue & Taxation Code Section 7056(b).  Modify and adopt Resolution No. 25-15 and/or Resolution No. 25-16.  Continue the item and provide staff with alternative direction.  Do not approve the proposed contracts and resolutions related to tax and fee consulting services, and provide direction to seek alternative services, which would delay the continuity of tax management services.

Environmental Review/Analysis:

Not a “project” under the California Environmental Quality Act.

Recommended Actions:

Staff Recommendation
City staff recommends that City Council adopt Resolution Nos. 25-15 and 25-16, which would accomplish the following:
..recommendation

1. Award a five-year contract to HdL Coren & Cone for Property Tax Services in an amount not to exceed $105,000, excluding the annual CPI escalator and contingent fees, and authorize the City Manager to execute the agreement and exercise two additional one-year extension options in the exercise of his discretion;

2. Award a five-year contract to Hinderliter, de Llamas and Associates for Sales and Use Tax, Transient Occupancy Tax Services, Business License and Transient Occupancy Tax Software Services in an amount not to exceed $521,535, excluding annual CPI escalator and contingent 280
Meeting Date: February 4, 2025 Agenda Item: 11E.

CITY OF SAN CLEMENTE 5
fees, and authorize the City Manager to execute the agreement and exercise two additional oneyear extension options in the exercise of his discretion;

3. Approve a 19% project contingency; and

4. Authorize City staff and Hinderliter, de Llamas & Associates to have access to sales or use tax records and documents pursuant to California Revenue & Taxation Code Section 7056(b). ..end
Attachment:

1. Resolution No. 25-15

2. Resolution No. 25-16

3. Hinderliter, de Llamas & Associates Professional Services Agreement

4. HdL Coren & Cone Professional Services Agreement
Notification:

All proposers.
281
Attachment 1
RESOLUTION NO. 25-15

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SAN CLEMENTE, CALIFORNIA, AWARDING FIVE-YEAR

PROFESSIONAL SERVICE AGREEMENTS TO

HINDERLITER, DE LLAMAS & ASSOCIATES AND HDL

COREN AND CONE FOR TAX AND FEE CONSULTING

SERVICES, AUTHORIZING THE CITY MANAGER TO
EXECUTE THE AGREEMENTS AND APPROVING A 19%

PROJECT CONTINGENCY
WHEREAS, the City routinely engages professional consultants with expertise in tax and fee revenue management services; and
WHEREAS, in 2024, the City conducted a formal request for proposal for property tax, sales and use tax, business tax, and transient occupancy tax consulting services (Tax and Fee Consulting Services); and
WHEREAS, on July 16, 2024, City staff publicly advertised the Tax and Fee Consulting Services Request for Proposals on the City’s electronic bidding system Planet Bids; and
WHEREAS, four proposals were received, offering services for project categories individually and collectively, with 5-year cost of services projected in the amounts of $1,178,510, $782,500, $421,500 and $105,000 for the desired project objectives; and WHEREAS, City staff reviewed the proposals, conducted interviews with all four prospective bidders and rated them according to the weighted criteria listed in the Request for Proposals and determined that Hinderliter, de Llamas and Associates and HdL Coren & Cone are qualified to perform the services, have fair and reasonable fees, and ranked the highest with the most competitive all-inclusive service and pricing options that aligned with project objectives.

NOW, THEREFORE, the City Council of the City of San Clemente does hereby find, determine and resolves as follows:

SECTION 1. That the above recitations are true and correct and incorporated fully herein.

Section 2. That a five-year Professional Services Agreement is hereby awarded to Hinderliter, de Llamas & Associates for Sales and Use Tax, Transient Occupancy Tax Services, Business License and Transient Occupancy Tax Software Services.

Section 3. That the City Manager is authorized and directed to execute a Professional Consultant Services Agreements with Hinderliter, de Llama and Associates for Sales, Use Tax, Transient Occupancy Tax and Business Tax Services in an amount not to exceed $521,535, plus an annual escalator and contingent fees, for a term of five (5) years with two 282
Resolution No. 25-15 Page 2
additional optional one-year extensions exercisable in the City Manager’s discretion in a form substantially similar to that presented to the City Council on February 4, 2025.

Section 4. That a five-year Professional Services Agreement is hereby awarded to HdL Coren & Cone for Property Tax Services.

Section 5. That the City Manager is authorized and directed to execute a Professional Consultant Services Agreement with HdL Coren & Cone for Property Tax Services in an amount not to exceed $105,000, plus an annual escalator and contingent fees, for a term of five (5) years with two optional one-year extensions exercisable in the City Manager’s discretion in a form substantially similar to that presented to the City Council on February 4, 2025.

Section 6. That a 19% project contingency for the tax and fee consulting project is hereby approved. The City Manager is authorized to utilize the project contingency to the extent necessary and proper for additional services at the rates set forth in such agreements.

Section 7. That City staff is authorized and directed to execute such other documents and take such other and further actions as are necessary and proper to accomplish the purposes of this resolution.

Section 8. That the City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.

PASSED AND ADOPTED this _____ day of ____________________, 2025.

ATTEST:
___________________________ __________________________
City Clerk of the City of Mayor of the City of San
San Clemente, California Clemente, California
283
Resolution No. 25-15 Page 3

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) §

CITY OF SAN CLEMENTE )
I, LAURA CAMPAGNOLO, City Clerk of the City of San Clemente, California, do hereby certify that Resolution No. 25-15 was adopted at a regular meeting of the City Council of the City of San Clemente held on the _______ day of _______________________, _________, by the following vote:

AYES:

NOES:

ABSENT:

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Clemente, California, this _____ day of _________________, ________. __________________________
CITY CLERK of the City of
San Clemente, California
Approved as to form:
____________________________
Elizabeth A. Mitchell, City Attorney
284
Attachment 2
RESOLUTION NO. 25-16

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SAN CLEMENTE, CALIFORNIA, AUTHORIZING THE

EXAMINATION OF SALES OR TRANSACTIONS AND USE

TAX RECORDS
WHEREAS, pursuant to Ordinance Number 618, the City of San Clemente (City) entered into a contract with the California Department of Tax and Fee Administration (Department) to perform all functions incident to the administration and collection of sales and use taxes; and
WHEREAS, the City Council of the City of San Clemente deems it desirable and necessary for authorized officers, employees and representatives of the City to examine confidential sales or transactions and use tax records of the Department pertaining to sales and use taxes collected by the Department for the City pursuant to that contract; and WHEREAS, Section 7056 of the California Revenue and Taxation Code sets forth certain requirements and conditions for the disclosure of Department records, and Section 7056.5 of the California Revenue and Taxation Code establishes criminal penalties for the unlawful disclosure of information contained in, or derived from, the sales or transactions and use tax records of the Department.

NOW, THEREFORE, the City Council of the City of San Clemente does hereby find, determine and resolve as follows:

Section 1. That the City Manager, Administrative Services Director, City Treasurer, Finance Manager, or other officer or employee of the City designated in writing by the City Manager to the California Department of Tax and Fee Administration is hereby appointed to represent the City with authority to examine sales or transactions and use tax records of the Department pertaining to sales and use taxes collected for the City by the Department pursuant to the contract between the City and the Department.

Section 2. That the information obtained by examination of Department records shall be used only for purposes related to the collection of City sales and use taxes by the Department pursuant to that contract, and for purposes related to the following governmental functions of the City:
(a) Tracking and Economic Development;
(b) Forecasting and Budget Related Functions; and
(c) Detection of Misallocations and Deficiencies.

The information obtained by examination of Department records shall be used only for those governmental functions of the City listed above.
285
Resolution No. 25-16 Page 2
Section 3. That Hinderliter de Llamas & Associates is hereby designated to examine the sales and use tax records of the Department pertaining to sales and use taxes collected for the City by the Department. The person or entity designated by this section meets all of the following conditions, which are also included in the contract between the City and Hinderliter de Llamas & Associates:
a) has an existing contract with the City to examine those sales or transactions and use tax records;
b) is required by that contract to disclose information contained in, or derived from, those sales or transactions and use tax records only to the officer or employee authorized under Section 1 of this resolution to examine the information.
c) is prohibited by that contract from performing consulting services for a retailer during the term of that contract;
d) is prohibited by that contract from retaining the information contained in, or derived from those sales or transactions and use tax records, after that contract has expired.

BE IT FURTHER RESOLVED that the information obtained by examination of Department records shall be used only for purposes related to the collection of City sales and use taxes by the Department pursuant to the contract between the City and the Department and for those purposes relating to the governmental functions of the City listed in section 2 of this resolution.

Section 4. That this resolution supersedes all prior resolutions of the City Council of the City of San Clemente adopted pursuant to subdivision (b) of Revenue and Taxation Code section 7056.

Section 5. That the City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.

PASSED AND ADOPTED this _____ day of ____________________, 2025.

ATTEST:
___________________________ __________________________
City Clerk of the City of Mayor of the City of San
San Clemente, California Clemente, California
286
Resolution No. 25-16 Page 3

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) §

CITY OF SAN CLEMENTE )
I, LAURA CAMPAGNOLO, City Clerk of the City of San Clemente, California, do hereby certify that Resolution No. 25-16 was adopted at a regular meeting of the City Council of the City of San Clemente held on the _______ day of _______________________, _________, by the following vote:

AYES:

NOES:

ABSENT:

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Clemente, California, this _____ day of _________________, ________. __________________________
CITY CLERK of the City of
San Clemente, California
Approved as to form:
____________________________
Elizabeth A. Mitchell, City Attorney
287
Attachment 3

CITY OF SAN CLEMENTE

PROFESSIONAL CONSULTANT SERVICES AGREEMENT

1. PARTIES AND DATE.

This Agreement is made and entered into this _____ day of ________, 20___, 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 Hinderliter, de Llamas & Associates, a California Corporation, with its principal place of business at 120 S. State College Blvd., Suite 200, Brea, CA 92821 ("Consultant"). City and Consultant are sometimes individually referred to herein as "Party" and collectively as "Parties."

2. RECITALS.

2.1 Consultant.

Consultant desires to perform and assume responsibility for the provision of certain professional Tax and Fee Consulting Services required by the City on the terms and conditions set forth in this Agreement. Consultant represents that it is experienced in providing professional Tax and Fee Consulting 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 Consultant to render such professional Tax and Fee Consulting Services for the Sales Tax, Transient Occupancy Tax and Business License Tax Administration project ("Project") as set forth in this Agreement.

3. TERMS.

3.1 Scope of Services and Term.

3.1.1 General Scope of Services. Consultant promises and agrees to furnish to the City all labor, materials, tools, equipment, services, and incidental and customary work necessary to fully and adequately supply the professional Tax and Fee Consulting Services necessary for the Project ("Services"). The Services are more particularly described in Exhibit "A" attached hereto and incorporated herein by reference. All Services shall be subject to, and performed in accordance with, this Agreement, the exhibits attached hereto and incorporated herein by reference, and all applicable local, state and federal laws, rules and regulations.

Additionally,

3.1.2 Term. The term of this Agreement shall be from the Commencement Date to March 31, 2030, unless earlier terminated as provided herein. The City shall have the unilateral option, at its sole discretion, to renew this Agreement automatically for no more than two additional one-year terms. Consultant shall complete the Services within the term of this Agreement, and shall meet any other established schedules and deadlines.

3.2 Responsibilities of Consultant.

3.2.1 Independent Contractor; Control and Payment of Subordinates. The Services shall be performed by Consultant or under its supervision. Consultant will determine the means, methods and details of performing the Services subject to the requirements of this Agreement. City retains Consultant on an independent contractor basis and not as an employee. 288
4897-6861-4162 v1 2
55452.01100\31193624.5
Consultant retains the right to perform similar or different services for others during the term of this Agreement. Any additional personnel performing the Services under this Agreement on behalf of Consultant shall also not be employees of City and shall at all times be under Consultant's exclusive direction and control, the City being only concerned with the finished results of the work being performed. Neither City, nor any of its officials, officers, directors, employees or agents shall have control over the conduct of Consultant or any of Consultant's officers, employees, or agents, except as set forth in this Agreement. Consultant shall pay all wages, salaries, and other amounts due such personnel in connection with their performance of Services under this Agreement and as required by law. Consultant shall be solely 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. Neither Consultant nor Consultant's employees shall in any event be entitled to any benefits to which City employees are entitled, including, but not limited to, overtime, retirement benefits, workers’ compensation benefits, injury leave or other leave benefits. Consultant is solely responsible for all such matters, as well as compliance with social security and income tax withholding and all other regulations and laws governing such matters.

3.2.2 PERS Eligibility and Employee Payments Indemnification. In the event that Consultant's employee providing services under this Agreement claims or is determined by a court of competent jurisdiction or the California Public Employees Retirement System (PERS) to be eligible for enrollment in PERS of the City, Consultant shall indemnify, defend, and hold harmless City for the payment of any employer and employee contributions for PERS benefits on behalf of the employee as well as for payment of any penalties and interest on such contributions that would otherwise be the responsibility of the City. Notwithstanding any other agency, state or federal policy, rule, regulation, law or ordinance to the contrary, Consultant's employees providing service under this Agreement shall not qualify for or become entitled to, and hereby agree to waive any claims to, any compensation and benefit including but not limited to eligibility to enroll in PERS as an employee of City and entitlement to any contributions to be paid by City for employer contributions and/or employee contributions for PERS benefits. Consultant agrees to defend and indemnify the City for any obligation, claim, suit or demand for tax, retirement contribution including any contribution to the PERS, social security, salary or wages, overtime payment, or workers’ compensation payment that the City may be required to make for work done under this Agreement. The provisions of this section 3.2.2 are continuing obligations that shall survive expiration or termination of this Agreement.

3.2.3 Schedule of Services. Consultant shall perform the Services expeditiously, within the term of this Agreement, and in accordance with the Schedule of Services set forth in Exhibit "B" attached hereto and incorporated herein by reference. Consultant represents that it has the professional and technical personnel required to perform the Services in conformance with such conditions. In order to facilitate Consultant's conformance with the Schedule, City shall respond to Consultant's submittals in a timely manner. Upon request of City, Consultant shall provide a more detailed schedule of anticipated performance to meet the Schedule of Services.

3.2.4 [Reserved].

3.2.5 Conformance to Applicable Requirements. All work prepared by Consultant shall be subject to the approval of City.

3.2.6 Substitution of Key Personnel. Consultant has represented to City that certain key personnel will perform and coordinate the Services under this Agreement. Should one or more of such personnel become unavailable, Consultant may substitute other personnel of at least equal competence upon written approval of City. In the event that City and Consultant 289
4897-6861-4162 v1 3
55452.01100\31193624.5
cannot agree as to the substitution of key personnel, City shall be entitled to terminate this Agreement for cause. As discussed below, any personnel who fail or refuse to perform the Services in a manner acceptable to the City, or who are determined by the City to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project or a threat to the safety of persons or property, shall be promptly removed from the Project by the Consultant at the request of the City. The key personnel for performance of this Agreement are as follows:

3.2.7 City's Representative. The City hereby designates Brian Brower, Administrative Services Director, or his/her designee, to act as its representative in all matters pertaining to the administration and performance of this Agreement ("City's Representative").

City's Representative shall have the power to act on behalf of the City for review and approval of all products submitted by Consultant but not the authority to enlarge the Scope of Work or change the total compensation due to Consultant under this Agreement. The City Manager shall be authorized to act on City's behalf and to execute all necessary documents which enlarge the Scope of Work or change the Consultant's total compensation subject to the provisions contained in Section 3.3 of this Agreement. Consultant shall not accept direction or orders from any person other than the City Manager, City's Representative or his/her designee.

3.2.8 Consultant's Representative. Consultant hereby designates Joshua Davis, VP of TFA, or his/her designee, to act as its representative for the performance of this Agreement ("Consultant's Representative"). Consultant's Representative shall have full authority to represent and act on behalf of the Consultant for all purposes under this Agreement. The Consultant's Representative shall supervise and direct the Services, using his/her best skill and attention, and shall be responsible for all means, methods, techniques, sequences, and procedures and for the satisfactory coordination of all portions of the Services under this Agreement.

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

3.2.10 Standard of Care; Performance of Employees. Consultant shall perform all Services under this Agreement in a skillful and competent manner, consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California. Consultant represents and maintains that it is skilled in the professional calling necessary to perform the Services. Consultant warrants that all employees and subconsultants shall have sufficient skill and experience to perform the Services assigned to them. Finally, Consultant represents that it, its employees and subconsultants have all licenses, permits, qualifications and approvals of whatever nature that are legally required to perform the Services, and that such licenses and approvals shall be maintained throughout the term of this Agreement.

As provided for in the indemnification provisions of this Agreement, Consultant shall perform, at its own cost and expense and without reimbursement from the City, any services necessary to correct errors or omissions which are caused by the Consultant's failure to comply with the standard of care provided for herein. Any employee of the Consultant or its sub-consultants who is determined by the City to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project, a threat to the safety of persons or property, or any employee who fails or refuses to perform the Services in a manner acceptable to the City, shall be promptly removed from the Project by the Consultant and shall not be re-employed to perform any of the Services or to work on the Project.

3.2.11 Laws and Regulations. Consultant shall keep itself fully informed of and in 290
4897-6861-4162 v1 4
55452.01100\31193624.5
compliance with all local, state and federal laws, rules and regulations in any manner affecting the performance of the Project or the Services, including all Cal/OSHA requirements, and shall give all notices required by law. Consultant shall be liable for all violations of such laws and regulations in connection with Services. If Consultant performs any work knowing it to be contrary to such laws, rules and regulations, Consultant shall be solely responsible for all costs arising therefrom. Consultant shall defend, indemnify and hold City, its officials, directors, officers, employees, agents, and volunteers free and harmless, pursuant to the indemnification provisions of this Agreement, from any claim or liability arising out of any failure or alleged failure to comply with such laws, rules or regulations.

3.2.12 Safety. Consultant shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out its Services, the Consultant shall at all times be in compliance with all applicable local, state and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed. Safety precautions, where applicable, shall include, but shall not be limited to: (A) adequate life protection and lifesaving equipment and procedures; (B) instructions in accident prevention for all employees and subconsultants, such as safe walkways, scaffolds, fall protection ladders, bridges, gang planks, confined space procedures, trenching and shoring, equipment and other safety devices, equipment and wearing apparel as are necessary or lawfully required to prevent accidents or injuries; and (C) adequate facilities for the proper inspection and maintenance of all safety measures.

3.2.13 Insurance. Consultant agrees to procure and maintain, at Consultant’s expense all insurance specified in Exhibit “C” attached hereto and by this reference incorporated herein. Consultant shall require all subconsultants to carry the same policies and limits of insurance that the Consultant is required to maintain, unless otherwise approved in writing by the City.

3.3 Fees and Payments.

3.3.1 Compensation. Consultant shall receive compensation, including authorized reimbursements, for all Services rendered under this Agreement at the rates set forth in Exhibit "A" attached hereto and incorporated herein by reference. The total compensation shall not exceed the service rates set forth in Exhibit “A” without written approval of the City Council or City Manager as applicable. Extra Work may be authorized, as described below, and if authorized, will be compensated at the rates and manner set forth in this Agreement.

3.3.2 Payment of Compensation. Consultant shall submit to City a monthly, quarterly or annual invoice which indicates work completed and hours of Services rendered by Consultant. The invoice shall describe the amount of Services provided since the initial commencement date, or since the start of the subsequent billing periods, as appropriate, through the date of the invoice. City shall, within 30 days of receiving such invoice, review the invoice and pay all non-disputed and approved charges thereon. If the City disputes any of Consultant's fees, the City shall give written notice to Consultant within thirty (30) days of receipt of an invoice of any disputed fees set forth therein.

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

3.3.4 Extra Work. At any time during the term of this Agreement, City may request that Consultant perform Extra Work. As used herein, "Extra Work" means any work which 291
4897-6861-4162 v1 5
55452.01100\31193624.5
is determined by City to be necessary for the proper completion of the Project, but which the Parties did not reasonably anticipate would be necessary at the execution of this Agreement.

Consultant shall not perform, nor be compensated for, Extra Work without written authorization from the City.

3.3.5 Rate Increases. In the event that this Agreement is renewed pursuant to Section 3.1.2, the rate set forth in Exhibit “A” may be adjusted each year at the time of renewal as set forth in Exhibit “A.”

3.3.6 Labor Code Requirements.

3.3.6.1 Prevailing Wages. Consultant is aware of the requirements of California Labor Code Section 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Section 16000, et seq., ("Prevailing Wage Laws"), which require the payment of prevailing wage rates and the performance of other requirements on "public works" and "maintenance" projects. If the Services are being performed as part of an applicable "public works" or "maintenance" project, as defined by the Prevailing Wage Laws, and if the total compensation is $1,000 or more, Consultant agrees to fully comply with such Prevailing Wage Laws. Consultant shall make copies of the prevailing rates of per diem wages for each craft, classification or type of worker needed to execute the Services available to interested parties upon request, and shall post copies at the Consultant's principal place of business and at the project site. Consultant shall defend, indemnify and hold the City, its officials, officers, employees, agents, and volunteers free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws.

3.3.6.2 Registration. If the Services are being performed as part of an applicable “public works” or “maintenance” project, in addition to the foregoing, then pursuant to Labor Code sections 1725.5 and 1771.1, the Consultant and all subconsultants must be registered with the Department of Industrial Relations (“DIR”). Consultant shall maintain registration for the duration of the project and require the same of any subconsultants. This project may also be subject to compliance monitoring and enforcement by the DIR. It shall be Consultant’s sole responsibility to comply with all applicable registration and labor compliance requirements, including the submission of payroll records directly to the DIR. Notwithstanding the foregoing, the contractor registration requirements mandated by Labor Code sections 1725.5 and 1771.1 shall not apply to Services performed on a public works project that is exempt pursuant to the small project exemption specified in Labor Code sections 1725.5 and 1771.1.

3.4 Accounting Records.

3.4.1 Maintenance and Inspection. Consultant shall maintain complete and accurate records with respect to all costs and expenses incurred under this Agreement. All such records shall be clearly identifiable. Consultant shall allow a representative of City during normal business hours to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement. Consultant shall allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period of 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 292
4897-6861-4162 v1 6
55452.01100\31193624.5
Consultant, terminate the whole or any part of this Agreement at any time, with or without cause, by giving written notice to Consultant of such termination, and specifying the effective date thereof, at least forty-five (45) days before the effective date of such termination. Upon termination, Consultant shall be compensated only for those services which have been adequately rendered to City, and Consultant shall be entitled to no further compensation.

Consultant may not terminate this Agreement except for cause.

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

3.5.1.3 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:

Consultant: Hinderliter, de Llamas & Associates
120 S. State College Blvd, Suite 200
Brea, CA 92821
ATTN: HDL Contracts
City: City of San Clemente
910 Calle Negocio
San Clemente, CA 92673
ATTN: Laura Campagnolo, City Clerk and Brian
Brower, Administrative Services Director
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 Ownership of Materials and Confidentiality.

3.5.3.1 Documents & Data; Licensing of Intellectual Property. This Agreement creates a non-exclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, and other intellectual property embodied in plans, specifications, studies, drawings, estimates, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings or data magnetically or otherwise recorded on computer diskettes, which are prepared or caused to be prepared by Consultant under this Agreement ("Documents & Data"). Consultant shall require all subconsultants to agree in writing that City is granted a non-exclusive and perpetual license for any Documents & Data the subconsultant prepares under this Agreement. Consultant represents and warrants that Consultant has the legal right to license any and all Documents & Data.

Consultant makes no such representation and warranty in regard to Documents & Data which were prepared by design professionals other than Consultant or provided to Consultant by the City. City shall not be limited in any way in its use of the Documents & Data at any time, provided 293
4897-6861-4162 v1 7
55452.01100\31193624.5
that any such use not within the purposes intended by this Agreement shall be at City's sole risk.

This does not include any software, programs, methodologies or systems used in the creation of such work product, nor does it include any drafts, notes or internal communications prepared by Consultant in the course of performing the Services that were not otherwise provided to City in either hardcopy or electronic form, all of which may be protected by Consultant or others’ copyrights or other intellectual property.

3.5.3.2 Confidentiality. All ideas, memoranda, specifications, plans, procedures, drawings, descriptions, computer program data, input record data, written information, and other Documents & Data either created by or provided to Consultant in connection with the performance of this Agreement shall be held confidential by Consultant. Such materials shall not, without the prior written consent of City, be used by Consultant for any purposes other than the performance of the Services. Nor shall such materials be disclosed to any person or entity not connected with the performance of the Services or the Project. Nothing furnished to Consultant which is otherwise known to Consultant or is generally known, or has become known, to the related industry shall be deemed confidential. Consultant shall not use City's name or insignia, photographs of the Project, or any publicity pertaining to the Services or the Project in any magazine, trade paper, newspaper, television or radio production or other similar medium without the prior written consent of City.

3.5.3.3 Confidential Information. The City shall refrain from releasing Consultant’s proprietary information ("Proprietary Information") unless the City's legal counsel determines that the release of the Proprietary Information is required by the California Public Records Act or other applicable state or federal law, or order of a court of competent jurisdiction, in which case the City shall notify Consultant of its intention to release Proprietary Information.

Consultant shall have five (5) working days after receipt of the Release Notice to give City written notice of Consultant's objection to the City's release of Proprietary Information. Consultant shall indemnify, defend and hold harmless the City, and its officers, directors, employees, and agents from and against all liability, loss, cost or expense (including attorney’s fees) arising out of a legal action brought to compel the release of Proprietary Information. City shall not release the Proprietary Information after receipt of the Objection Notice unless either: (1) Consultant fails to fully indemnify, defend (with City's choice of legal counsel), and hold City harmless from any legal action brought to compel such release; and/or (2) a final and non-appealable order by a court of competent jurisdiction requires that City release such information.

3.5.4 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.

3.5.5 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.

3.5.6 Indemnification.

3.5.6.1 To the fullest extent permitted by law, Consultant shall, 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 Consultant, its officials, officers, employees, subcontractors, consultants or 294
4897-6861-4162 v1 8
55452.01100\31193624.5
agents in connection with the performance of the Consultant's Services, the Project or this Agreement, including without limitation the payment of all damages, expert witness fees and attorney’s fees and other related costs and expenses. Consultant’s obligation to indemnify shall not be restricted to insurance proceeds, if any, received by Consultant, the City, its officials, officers, employees, agents, or volunteers. Notwithstanding anything to the contrary, in no event will Consultant be (a) liable for claims, liabilities or damages in connection with the issuance, non-issuance or revocation of any registration, license, permit, or exemption; nor (b) required to provide a defense in connection with any indemnification or hold harmless provisions under this Agreement.

3.5.6.2 If Consultant’s obligation to defend, indemnify, and/or hold harmless arises out of Consultant’s performance as a “design professional” (as that term is defined under Civil Code section 2782.8), then, and only to the extent required by Civil Code section 2782.8, which is fully incorporated herein, Consultant’s indemnification obligation shall be limited to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant, and, upon Consultant obtaining a final adjudication by a court of competent jurisdiction, Consultant’s liability for such claim, including the cost to defend, shall not exceed the Consultant’s proportionate percentage of fault.

3.5.7 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.

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

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

3.5.10 City's Right to Employ Other Consultants. City reserves right to employ other consultants in connection with this Project.

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

3.5.12 Assignment or Transfer. Consultant shall not assign, hypothecate, or transfer, either directly or by operation of law, this Agreement or any interest herein without the prior written consent of the City. Any attempt to do so shall be null and void, and any assignees, hypothecates or transferees shall acquire no right or interest by reason of such attempted assignment, hypothecation or transfer.

3.5.13 Construction; References; Captions. Since the Parties or their agents have participated fully in the preparation of this Agreement, the language of this Agreement shall be construed simply, according to its fair meaning, and not strictly for or against any Party. Any term referencing time, days or period for performance shall be deemed calendar days and not work days. All references to Consultant include all personnel, employees, agents, and subconsultants of Consultant, except as otherwise specified in this Agreement. All references to City include its elected officials, officers, employees, agents, and volunteers except as otherwise specified in this Agreement. The captions of the various articles and paragraphs are for convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content, or intent of this Agreement.
295
4897-6861-4162 v1 9
55452.01100\31193624.5

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

3.5.15 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.

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

3.5.17 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.

3.5.18 Prohibited Interests. Consultant maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Consultant, to solicit or secure this Agreement. Further, Consultant warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability. For the term of this Agreement, no member, officer or employee of City, during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.

3.5.19 Equal Opportunity Employment. Consultant represents that it is an equal opportunity employer and it shall not discriminate against any subconsultant, employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex or age. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination. Consultant shall also comply with all relevant provisions of City, state and federal grant requirements and related programs, policies and guidelines currently in effect or hereinafter enacted.

3.5.20 Labor Certification. By its signature hereunder, Consultant certifies that it is aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for Worker's Compensation or to undertake self-insurance in accordance with the provisions of that Code, and agrees to comply with such provisions before commencing the performance of the Services.

3.5.21 Authority to Enter Agreement. Consultant has all requisite power and authority to conduct its business and to execute, deliver, and perform the Agreement. Each Party warrants that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and bind each respective Party.

3.5.22 Counterparts/Electronic Signatures. This Agreement may be signed in counterparts, each of which shall constitute an original. This Agreement may be signed with the same force and effect as original ink signatures.
296
4897-6861-4162 v1 10
55452.01100\31193624.5

3.6 Subcontracting.

3.6.1 Prior Approval Required. Consultant shall not subcontract any portion of the work required by this Agreement, except as expressly stated herein, without prior written approval of City. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement.

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:________________________________
Andy Hall, City Manager
ATTEST: Dated: __________________, 20____
_________________________
CITY CLERK of the City of
San Clemente, California
APPROVED AS TO FORM:
_____________________________
Elizabeth A. Mitchell, City Attorney

APPROVED AS TO AVAILABILITY
OF FUNDING:
_____________________________
Finance Authorization
Hinderliter, de Llamas & Associates
(“CONSULTANT”)
By:_____________________________
Robert Nickerson, CEO
Dated: __________________, 20____
By:_____________________________
Gary Lott, Secretary
Dated: __________________, 20____
297
4897-6861-4162 v1 11
55452.01100\31193624.5
EXHIBIT "A"

SCOPE OF SERVICES
Consultant shall perform the following services for the City (collectively, the “Services”) to the City’s satisfaction:

Sales and Use Tax

1. Sales and Use Tax and Economic Analysis/Forecasting Services/Reports

1.1. Establish a special database identifying the name, address, and quarterly allocations of all sales tax producers within the City. This database will be utilized to generate special reports for the City on major sales tax producers by rank and category, sales tax activity by categories, or business districts, identification of reporting aberrations, and per capita and outlet comparisons with regional and statewide sales.

1.2. Provide periodic updated reports to City identifying changes in sales by individual businesses, business groups and categories, and by geographic area. These reports may include, without limitation, quarterly aberrations due to State audits, fund transfers, and receivables, along with late or double payments, and quarterly reconciliation worksheets to assist with budget forecasting. Consultant shall meet quarterly by in person or virtually with City.

1.3. Shall additionally provide following each calendar quarter a summary analysis for City to share with Council Members, Chamber of Commerce, other economic development interest groups and the public that analyze City’s sales tax trends by major groups and geographic areas without disclosing confidential individual tax records.

1.4. Establish a special database with California Department of Tax and Fee Administration (“CDTFA”) registration data for businesses within applicable district boundaries holding seller’s permit accounts.

1.5. Periodically license for the limited, non-exclusive, non-transferable use by City’s staff certain of Consultant’s web-based sales, use and/or transactions tax program(s) containing sellers permit, registration, allocation and related information for business outlets within City’s jurisdiction registered with the CDTFA.

1.6. Provide periodic updated reports endeavoring to identify and assist with budget forecasting (i) changes in allocation totals by individual businesses, business groups and categories, and (ii) aberrations due to State audits, fund transfers, and receivables, along with late or double payments.

2. Allocation and Audit Recovery Services

2.1. Conduct (when mutually agreed with City) initial and on-going sales and use tax audits of businesses to help identify and correct distribution and allocation errors, and to proactively affect favorable registration, reporting or formula changes thereby generating previously unrealized sales and use tax income for the City and/or recovering misallocated tax from registered taxpayers. Common errors that will be monitored and corrected include but are not limited to: transposition errors resulting in misallocations; erroneous consolidation of multiple outlets; formula errors; misreporting of “point of sale” to the wrong location; delays in reporting new outlets; misallocating use tax payments to the allocation pools or wrong jurisdiction; and erroneous fund transfers and adjustments.

2.2. Initiate contacts with the CDTFA and sales management and accounting officials in companies that have businesses where a probability of error exists to endeavor to help 298
4897-6861-4162 v1 12
55452.01100\31193624.5
verify whether current tax receipts accurately reflect the local sales activity. Such contacts will be conducted in a professional and courteous manner.

2.3. Prepare and submit to the CDTFA information for the purpose of correcting any identified allocation errors, and follow-up with individual businesses and the CDTFA to promote recovery by the City of back or prospective quarterly payments that may be owing.

2.4. If, during the course of its audit, Consultant finds businesses located in the City’s jurisdiction that are properly reporting sales and use tax but have the potential for modifying their operation to provide an even greater share to City, Consultant may so advise City and collaborate with those businesses and City to encourage such changes.

Business License, Transient Occupancy Tax & Short-Term Rental Tax Software Solution

1. Software Implementation

1.1. Consultant's responsibilities

1.1.1. Project manager - Consultant will provide a project manager (PM) to guide the software implementation process. The primary responsibility for the Consultant PM is to ensure successful and timely completion of each step of the software implementation schedule. The Consultant PM will work closely with the City's designated project manager to define the software implementation schedule, identify City needs and configure the software accordingly, validate the data conversion, and provide user training.

1.1.2. IT support - Consultant will provide a dedicated IT staff member to provide IT support during the software implementation process.

1.1.3. Management support - Consultant will assist the City in evaluating current policies and procedures in order to enhance operational efficiency. This may include suggestions to redesign forms/reports, implement new processes, or adopt new strategies for improving communication with the business community and other City departments.

1.1.4. Training - Consultant will provide software training for City users as defined in the fees schedule. The timing, size and participants of each training session will be determined by the Consultant’s and City’s PMs.

1.2. City's responsibilities

1.2.1. Project manager - City will designate a staff member to serve as the City's project manager (PM). This individual must be intimately involved in the daily business processes which the software will automate, and be empowered to make, or quickly secure from management, decisions required for the configuration and implementation of the software. The primary responsibility for the City PM is to ensure that all City responsibilities during the software implementation process are met according to the agreed upon software implementation schedule. The City PM will be instrumental in the successful implementation of the software; working closely with the Consultant PM to verify data conversion, review and approve reports, establish business rules, and confirm configuration and behavior of the software. 299
4897-6861-4162 v1 13
55452.01100\31193624.5

1.2.2. IT support - City will designate an IT staff member to work with Consultant staff throughout the software implementation process. This individual must be knowledgeable about the City's computing environment and be authorized to access any equipment or services required for proper access to and operation of the software.

1.3. Data Conversion - Consultant will convert the City’s existing data as provided by City.

City agrees to provide its current data in a format agreed upon by Consultant and City.

Acceptable formats include Microsoft SQL Server backup file, Excel, Access, and ASCII delimited text file. City will provide all available documentation to assist with identifying the contents of the data files, including but not limited to file layout documentation, database schema, and screenshots from five (5) sample accounts. City will provide the data a minimum of two times during the conversion process. City understands that the second (and any subsequent) data must be provided in the same format and layout as the first data set. Any inconsistencies between the first and final data sets will result in a delayed installation date and additional charges for conversion.

1.4. Schedule – The timeline for software implementation (including “Go Live”) will be collaboratively determined by Consultant’s and City’s designated Project Managers, and will start upon receipt of all discovery materials.

2. Software Hosting Services – Consultant’s hosting services offload the majority of IT concerns to Consultant’s hosting team; including system upgrades, hardware and software maintenance, database management, and disaster recovery. City will be responsible for maintaining its workstations and a reliable internet connection. Consultant will handle the rest.

Website functionality will be hosted using a City specific sub-domain on Consultant’s special purpose hdlgov.com domain.

2.1. Workstation Specifications – Workstations will access the software through a remote application session with Consultant’s hosting service. All workstations require 4+GB Memory, 1280x1024 screen resolution, and MS Windows 10/11 operating system.

2.2. Network Specifications – Consultant’s hosted service requires reliable, high speed internet connectivity. High-speed local area network connections are always helpful, but the service will also run without difficulty over slower WAN connections such as T1 or mobile broadband.

2.3. Printer Specifications - The software is designed to work with laser printers. A PCL compliant laser printer is recommended. Each make and model of printer has different drivers and therefore has slightly different results when printing. Consultant designs forms/reports using HP LaserJet printers.

3. Software Support

3.1. City Support - Consultant will provide City’s users no charge support by telephone, email and the web during the term of this Agreement. In the United States support is available as follows: For customer support between the hours of 8:00 am and 5:00 pm Pacific time, Monday through Friday, email [email protected] or call (909) 861-4335 and ask for software support. For urgent off hours support before 8:00 am or after 5:00 pm Pacific time, Monday through Friday (or anytime Saturday), email [email protected] and Consultant’s on call support personnel will be notified. 300
4897-6861-4162 v1 14
55452.01100\31193624.5
Please only include your name, agency and contact # in emails to [email protected]. City will be contacted as soon as possible.

3.2. Response Time – In the event that City encounters an error and/or malfunction whereby the software does not conform to expected behavior in accordance with the software design, Consultant will assign one of the following severity levels and render support services in a timely manner consistent with the urgency of the situation.

3.2.1. Severity Level 1 – a critical problem has been encountered such that the software is essentially inoperable and without a reasonable workaround. Consultant will respond within one (1) business hour to diagnose the problem. A response is defined as an email or call to the City’s designated support contact. Consultant and City will work diligently and continuously to correct the problem as quickly as possible.

3.2.2. Severity Level 2 – a problem has been encountered that does not prevent use of the software, but the software is not operating correctly. Consultant will diagnose the problem within 48 hours and advise City of any available work-around. Upon Consultant’s confirmation that the software is not operating correctly, Consultant will provide a software update to repair the defect and confirm with City that the update resolved the issue.

3.2.3. Severity Level 3 – a minor problem has been encountered. The software is usable but could be improved by correction of a minor defect or addition of a usability enhancement. Consultant will assess the request within fifteen (15) business days and, depending on priorities, schedule a software update for a future release, advise City that the request will not be implemented, or offer the option of implementing the request as a custom software enhancement at additional cost.

3.3. Support Policy Regarding Reports - Consultant will assist with modifications to reports as needed during the term of this agreement. Typical report modifications require 7 to 10 business days to complete. Very complex reports or reports required in a very short time frame may incur development costs, in which case an estimate will be provided for approval before the work is begun.

3.4. Software Upgrades - Except to the extent that upgrades of the software include new modules or features not previously offered as part of the software as of the date hereof, City is entitled to upgrades of the software within the terms of this Agreement. Additional costs may apply depending on the extent of the upgrade. Potential additional costs include training, consulting, configuration, or other requested services and will be at the prior written request of the City.

3.5. Out of Scope Support – City agrees to pay additional hourly fees according to Consultant’s then current hourly rates if the City requests in writing Consultant’s assistance for matters which are not caused by any defects in Consultant’s software and there is prior written approval for the same as additional services.

4. Online Payment Processing

4.1. Standard Payment Processing Solution – Consultant’s software includes PCI compliant payment processing services, supporting both credit card and eCheck transactions. Consultant guarantees continued support of the Standard Payment Processing Solution across all releases of Consultant’s software and the Standard Payment Processing Solution, at no cost to City.
301
4897-6861-4162 v1 15
55452.01100\31193624.5

4.1.1. Payment Processing - Consultant shall provide its Services to support payments remitted to City. Consultant shall transmit transactions for authorization and settlement through Consultant’s certified payment processor. Funds for transactions processed by Consultant hereunder shall be submitted to City’s designated bank account as follows: (i) no more than two (2) business banking days after all Transactions (other than electronic Check Transactions) that are successfully processed prior to 5:00 p.m. ET on each business banking day (e.g., a Transaction authorized at 2:00 p.m. ET on Monday will be submitted on Wednesday; a Transaction successfully processed at 8:00 p.m. ET on Monday will be submitted on Thursday); and (ii) no more than five (5) business banking days for all electronic Check Transactions that are successfully processed prior to 5:00 p.m. ET on each business banking day. Consultant makes no representation or warranty as to when funds will be made available by City’s bank.

4.1.2. Support - Consultant shall provide City with payment processing related customer service as needed. City shall timely report any problems encountered with the service. Consultant shall promptly respond to each report problem based on its severity, the impact on City’s operations and the effect on the service. Consultant shall either resolve the problem or provide City with the information needed to enable the City to resolve it.

4.1.3. Transaction Errors - Consultant’s sole responsibility for any Transaction error or reversed Transaction is to determine whether the result indicates a problem with Consultant’s service and, if necessary, reprocess and resubmit the Transaction without additional charge. In the event that a Transaction is reversed or refunded to any Customer of City, for any reason, Consultant may offset such amount against funds remitted to City, or invoice City for such amount, at Consultant’s discretion.

City shall pay any such invoice within 30 days of receipt.

4.1.4. Electronic Check Authorization - If City elects to accept electronic Checks as a form of payment, the following subsections apply. For the purpose of this section, “checks” means checks drawn on accounts held in the U.S. (“Check(s)”).

4.1.4.1. As part of the implementation plan, City shall select risk management controls governing Check acceptance and assumes sole responsibility for the choice of controls.

4.1.4.2. Consultant shall provide confirmation on a submitted ABA number as part of the Service to assist City with the decision whether to accept a Check and shall route accepted Checks.

4.1.4.3. City hereby authorizes Consultant to debit the City’s financial institution account in the amount of any returned item that is received by Consultant.

4.1.5. City Responsibilities

4.1.5.1. As a condition to its receipt of Consultant’s Standard Payment Processing Solution, City shall execute and deliver payment services/merchant applications with Consultant’s Standard Payment Processing Solution vendor to establish City’s merchant account for payments processing, and any and all applications, agreements, certifications or other documents required by Networks or other 302
4897-6861-4162 v1 16
55452.01100\31193624.5
third parties whose consent or approval is necessary for the processing of Transactions. This includes “Network” is an entity or association that operates, under a common service mark, a system which permits participants to authorize, route, and settle Transactions among themselves, including, for example, networks operated by VISA USA and Mastercard, Inc., NYCE Corporation, American Express, and Discover.

4.1.5.2. City represents, warrants, and agrees that it does and will comply with applicable Laws and regulations and Network rules, regulations or operating guidelines. City shall notify Consultant in writing as soon as possible in the event a claim is either threatened or filed against City by any governmental organization having jurisdiction over City or a Customer related to the Service.

City shall also notify Consultant in writing as soon as possible in the event a claim is either threatened or filed against City relating to Transactions or the Services or a fine or other penalty is assessed or threatened relating to Transactions or the Services.

4.1.5.3. City represents, warrants and agrees that it is and will continue to be in full compliance with all applicable requirements of the City Information Security Program of VISA, the Site Data Protection Program of MasterCard, and similar programs of other Networks, and any modifications to such programs that may occur from time to time. Upon the request of Consultant, City shall provide Consultant with documentation reasonably satisfactory to Consultant verifying compliance with this Section.

4.1.5.4. City hereby grants Consultant the full right, power and authority to request, receive and review any Data or records reflected in a Transaction report. City represents and warrants that it has the full right and authority to grant these rights.

4.2. Custom Payment Processing Solution - Should City require a different payment processing solution than Consultant’s designated standard solution, City will pay an initial custom development fee to establish the integration as well as an increase to the annual use fee to maintain the integration across regular maintenance releases of Consultant’s software and City’s custom payment processing solution. The annual use fee does not include significant redevelopment of the integration as may be required for major updates to Consultant’s software or City’s custom payment processing solution. Before commencing any work Consultant will provide a statement of work (SOW) defining the scope of work to be performed, timeline for development, and all associated costs. 303
4897-6861-4162 v1 17
55452.01100\31193624.5

OPTIONAL SERVICES
At the City’s request, Consultant shall perform the following services to the City’s satisfaction:

Business License Tax and Fees Compliance

1. Compliance Services: 1) Identify and register businesses which are subject to licensure or taxation, 2) collect known debt as pertains to business license or tax, and 3) identify underreported tax liability.

1.1. Discovery Services

1.1.1. Develop a list of businesses subject to City licensure or taxation.

1.1.2. Notify non-compliant businesses of their options to comply or dispute their noncompliant status. Notification and support to businesses will be facilitated through the website, mail, email, phone and fax.

1.1.3. Review information and forms submitted by the business for completion and accuracy, inclusive of any additional required documentation (i.e. home occupation permit). All submissions are filed and stored electronically and made available to City upon request.

1.1.4. Provide businesses with detailed invoicing and options to pay via website, mail, and phone.

1.1.5. Remit revenue to City no less than monthly, along with all business applications and any additional documentation.

1.2. Collection Services

1.2.1. Identify businesses subject to City licensure or taxation which have known debt to City and have failed to pay within an appropriate time frame.

1.2.2. Notify businesses of their options to comply or dispute their non-compliant status.

1.2.3. Provide businesses with detailed invoicing and options to pay via website, mail and phone.

1.2.4. Remit revenue to City no less than monthly.

1.3. Audit Services

1.3.1. Identify potential under-reporting and/or misclassified businesses.

1.3.2. Audit businesses mutually agreed to by City and Consultant that are identified as potential under-reporting businesses.

1.3.3. Submit audit summaries to City and discuss further actions.

1.3.4. Educate businesses on proper reporting practices.

1.3.5. Invoice and collect identified deficiencies.

2. Online Payment Processing – Consultant’s services include PCI compliant payment processing services which supports both credit card and eCheck transactions.

2.1. City Responsibilities

2.1.1. As a condition to its receipt of the Service, City shall execute and deliver any and all applications, agreements, certifications or other documents required by Consultant’s payment processor, Networks or other third parties whose consent or approval is necessary for the processing of Transactions by Consultant’s payment processor. “Network” is an entity or association that operates, under a common service mark, a system which permits participants to authorize, route, and settle Transactions among themselves, including, for example, networks operated by VISA USA and Mastercard, Inc., NYCE Corporation, American Express, and Discover. 304
4897-6861-4162 v1 18
55452.01100\31193624.5

2.1.2. City hereby grants Consultant the full right, power and authority to request, receive and review any Data or records reflected in a Transaction report. City represents and warrants that it has the full right and authority to grant these rights.

OPTIONAL SERVICES
At the City’s request, Consultant shall perform the following services to the City’s satisfaction:

Tax Ordinance / Fee Study Services
Consultant will provide the following Services relative to City’s business license tax administration:

3. Business License Tax Ordinance / Fee Study

3.1. Current Tax Registry Analysis – Consultant will conduct an analysis of the City’s business tax registration database. Data will be compiled on the number of businesses, current tax revenues received by the City, categories, and other related information to provide a baseline of the City’s current tax structure and to allow consultant to model the potential impact of changes to the current model. Contingent on data availability, this analysis will include the following:

3.1.1. An analysis of the trends within major economic sectors, including whether revenue is tracking the measure of the tax (or if the current tax structure is deviating from the trend of the underlying input/measure of the tax).

3.1.2. A review of the existing municipal code structure for both business license to indicate any opportunities for administrative improvements.

3.2. Fee Analysis and Comparative Study – Using the data compiled from the registration analysis, as well as data compiled from other sources, such as revenue data from the State, Consultant will prepare a report comparing the City model to those of neighboring cities. Contingent on data availability, this analysis will include the following.

3.2.1. Identification of a set of three similar jurisdictions to use for comparison.

3.2.2. Review of the total revenue trends for each of the four jurisdictions (three comparison jurisdictions and the City) along with key attributes like population and number of businesses, the last substantial update to the code, and primary business tax measure.

3.2.3. Visualization of the City’s business license tax revenue per capita and per business compared to the other three jurisdictions.

3.2.4. Creation of a basket of hypothetical businesses and comparison of how each of the four jurisdictions would tax those hypothetical businesses.

3.3. Modified Tax Structure Options – As a result of the findings of the comparison report, Consultant will prepare a report with three options for tax structure changes. Contingent on data availability, this analysis will include the following

3.3.1. An analysis of how the taxes paid by the hypothetical businesses in the basket of business identified in the comparison study would change for each model.

3.3.2. A comparison of the per-capita and per-business revenue for each of the three models against the three comparison jurisdictions and, where useful, against additional high-revenue cities identified by Consultant.

3.4. Additional Support – the following activities are included at no additional cost:

3.4.1. Staff Meetings – Consultant will schedule the following meetings to review deliverables and questions with City staff.

3.4.1.1. Kick-off meeting
305
4897-6861-4162 v1 19
55452.01100\31193624.5

3.4.1.2. Review and approve the comparison jurisdictions

3.4.1.3. Review of the interactive model

3.4.1.4. Review of the first draft of the report

3.4.1.5. Review of the revised final report

3.4.2. Meetings with Committees and Council - Consultant will make ourselves available for the following meetings with reasonable advance notice.

3.4.2.1. A presentation of the draft report to a committee

3.4.2.2. The presentation of a revised, final draft report to the committee. (Consultant can make changes that take less than a total of two hours to revise at no additional cost. Changes beyond that two-hour limit will be made on a time and material basis after written approval from the City.)

3.4.2.3. Presentation of the final report to City Council via Teams or Zoom.

3.4.2.4. A second meeting with Council to answer technical questions post-polling, again virtually.

3.4.3. Deliverables – The deliverables from the study will be:

3.4.3.1. Comparison jurisdiction set

3.4.3.2. Interactive model

3.4.3.3. Draft of report

3.4.3.4. PowerPoint for presentation of the report to the committee, Council, or both

3.4.3.5. Final report

3.4.4. Additional Support Activities

3.4.4.1. Consultant will also review and work with the City Attorney’s office to draft new ordinance language supporting a chosen model

3.4.5. Timeline - Once the contract is signed by both parties and the data is available to Consultant, the clock on the below timeline begins to run. For the timeline, Week 1 is the week on which the clock starts to run.

3.4.5.1. Schedule the kick-off meeting. (By week 2)

3.4.5.2. Meet to review the Jurisdiction comparisons (By week 3)

3.4.5.3. Meet to review the interactive model (By week 6)

3.4.5.4. Deliver the first draft report. (By week 10)

3.4.5.5. Deliver PowerPoint for presentations. (By week 11)

3.4.5.6. Deliver the final report. (TBD based on presentations to the Council and staff direction.)

3.4.6. A Note on Implementation – Once a model is chosen and initial polling is completed, Consultant can meet with the City to discuss options for implementation.

Changing the code also requires changes in forms, software set-up, process, and likely some community outreach ahead of renewal season. Consultant will be happy to meet with the City to discuss the additional scope of that work.

4. Transient Occupancy Tax Ordinance / Fee Study

4.1. Current Tax Registry Analysis – Consultant will conduct an analysis of the City’s transient occupancy tax registration database. Data will be compiled on the number of businesses, current tax revenues received by the City, to provide a baseline of the City’s current tax structure and to allow consultant to model the potential impact of changes to the current model.

4.1.1. A review of the existing municipal code structure for TOT to indicate any opportunities for administrative improvements.

4.2. Fee Analysis and Comparative Study – Using the data compiled from the registration analysis, as well as data compiled from other sources, such as revenue data from the 306
4897-6861-4162 v1 20
55452.01100\31193624.5
State, Consultant will prepare a report comparing the City model to those of three neighboring cities. Those three neighboring cities will be selected with the reasonable agreement with the City.

4.3. Modified Tax Structure Options – As a result of the findings of the comparison report, Consultant will prepare a report with two options for tax rate changes.

4.3.1. Additional Support Activities:

4.3.1.1. Consultant will also review and work with the City Attorney’s office to draft new ordinance language supporting a chosen model

4.3.1.2. Consultant will provide reasonable support to assist any polling or ballot firm the City chooses to understand the models

4.3.2. Timeline - Once the contract is signed by both parties and the data is available to Consultant, the clock on the below timeline begins to run. For the timeline, Week 1 is the week on which the clock starts to run.

4.3.2.1. Schedule the kick-off meeting. (By week 2)

4.3.2.2. Meet to review the Jurisdiction comparisons (By week 3)

4.3.2.3. Meet to review the interactive model (By week 6)

4.3.2.4. Deliver the first draft report. (By week 10)

4.3.2.5. Deliver PowerPoint for presentations. (By week 11)

4.3.2.6. Deliver the final report. (TBD based on presentations to the Council and staff direction.)

4.3.3. A Note on Implementation – Once a model is chosen and initial polling is completed, Consultant can meet with the City to discuss options for implementation.

Changing the code also requires changes in forms, software set-up, process, and likely some community outreach ahead of renewal season. Consultant will be happy to meet with the City to discuss the additional scope of that work.

OPTIONAL SERVICES
At the City’s request, Consultant shall perform the following services to the City’s satisfaction:

Transient Occupancy Tax Administration
Consultant will provide the following Services relative to City’s transient occupancy tax administration.

5. Operations Management Services

5.1. Establish and maintain database of City lodging providers.

5.2. Receive and process registrations, tax returns and payments in a timely fashion.

5.3. Provide lodging providers multiple options for submitting registrations, tax returns, payments, or support requests (including via website, email, mail, phone, and fax.

Consultant tax specialists will be available for live interactions Monday through Friday, 8:00am to 5:00pm Pacific).

5.4. Remit revenue to City no less than monthly.

5.5. Provide City staff access to website portal offering lodging provider registry inquiry and reporting capabilities.

5.6. Endeavor to ensure accurate filings of returns by consistently monitoring returns, providing compliance audits, and educating lodging providers as mutually agreed to by City and Consultant.
307
4897-6861-4162 v1 21
55452.01100\31193624.5

5.7. Provide analysis reports monthly and annually provide revenue trends and key insights on City lodging providers.

6. Online Payment Processing – Consultant’s services include PCI compliant payment processing services which supports both credit card and eCheck transactions.

6.1. City Responsibilities

6.1.1. As a condition to its receipt of the Service, City shall execute and deliver any and all applications, agreements, certifications or other documents required by Consultant’s payment processor, Networks or other third parties whose consent or approval is necessary for the processing of Transactions by Consultant’s payment processor. “Network” is an entity or association that operates, under a common service mark, a system which permits participants to authorize, route, and settle Transactions among themselves, including, for example, networks operated by VISA USA and Mastercard, Inc., NYCE Corporation, American Express, and Discover.

6.1.2. City hereby grants Consultant the full right, power and authority to request, receive and review any Data or records reflected in a Transaction report. City represents and warrants that it has the full right and authority to grant these rights.

OPTIONAL SERVICES
At the City’s request, Consultant shall perform the following services to the City’s satisfaction:

Transient Occupancy Tax Audits
Consultant will provide the following Services relative to City’s transient occupancy tax administration.

7. Audit Services

7.1. Analyze City transient occupancy tax ordinance and business procedures, and recommend possible improvements or best practices for processes, form design, and ordinance.

7.2. Analyze lodging provider data and review analysis findings with City. Analysis will include the most recent thirty-six (36) months of tax filings along with supplemental data as available (including number of rooms, occupancy rate, physical condition, and business dynamics).

7.3. Recommend lodging providers who merit additional investigation or examination to determine their compliance with City’s ordinance.

7.4. Lodging providers identified by Consultant and approved by City for audit are scheduled for a compliance analysis audit.

7.5. Review records of the lodging provider for information related to compliance with City regulations (including endeavoring to validate taxable gross rents, exemptions, bank statements, daily/monthly summaries, and other relevant compliance-related information). Supporting documentation for relevant items such as exemptions will also be reviewed.

7.6. Generate lodging provider compliance report (including results of the compliance analysis audit and recommended actions). Review report with City and determine next steps.

7.7. Notify deficient lodging providers of the findings as well as instructions for payment and appeal processes. Schedule appointments with lodging providers to review findings and educate regarding proper filing procedures in order to prevent future errors and deficiencies.
308
4897-6861-4162 v1 22
55452.01100\31193624.5

7.8. Send compliant lodging providers a letter of commendation, thanking them for their cooperation and compliance.

7.9. Invoice lodging providers found to be underreporting through the standard City approved collections process.

OPTIONAL SERVICES
At the City’s request, Consultant shall perform the following services to the City’s satisfaction:

Short-Term Rentals Transient Occupancy Tax Administration Consultant will provide the following Services relative to City’s short-term rentals transient occupancy tax administration.

8. Identification and Monitoring

8.1. Monitor short-term rental sites to identify new listings and closures.

8.2. Match listings to specific parcels using GIS and property tax assessor data.

8.3. Identify properties which are already registered and paying taxes.

8.4. Provide a visual map of listing locations in City’s jurisdiction.

8.5. Record listing details (including start date, sites linked to, and other information necessary for documenting evidence of short-term rental activity).

9. Education, Registration, and Compliance

9.1. Notify non-compliant lodging providers of their status and any actions necessary to become compliant.

9.2. Provide short-term rentals website with links to FAQs, education packets, and support for registering, filing returns, and making payments.

9.3. Follow-up with non-compliant entities and assist as needed to obtain compliance.

9.4. Work with City to identify additional requirements and ensure collection of data necessary for enforcement procedures.

10. Operations Management Services

10.1. Establish and maintain database of City’s short-term rental lodging providers.

10.2. Receive and process registrations, tax returns and payments in a timely fashion.

10.3. Provide lodging providers multiple options for submitting registrations, tax returns, payments, or support requests (including via website, email, mail, phone, and fax.

Consultant tax specialists will be available for live interactions Monday through Friday, 8:00am to 5:00pm Pacific).

10.4. Remit revenue to City no less than monthly.

10.5. Provide City staff access to website portal offering lodging provider registry inquiry and reporting capabilities.

10.6. Provide analysis reports monthly and annually provide revenue trends and key insights on City lodging providers.

11. Online Payment Processing – Consultant’s services include PCI compliant payment processing services which supports both credit card and eCheck transactions.

11.1. City Responsibilities

11.1.1. As a condition to its receipt of the Service, City shall execute and deliver any and all applications, agreements, certifications or other documents required by Consultant’s payment processor, Networks or other third parties whose consent or approval is necessary for the processing of Transactions by Consultant’s payment 309
4897-6861-4162 v1 23
55452.01100\31193624.5
processor. “Network” is an entity or association that operates, under a common service mark, a system which permits participants to authorize, route, and settle Transactions among themselves, including, for example, networks operated by VISA USA and Mastercard, Inc., NYCE Corporation, American Express, and Discover.

11.1.2. City hereby grants Consultant the full right, power and authority to request, receive and review any Data or records reflected in a Transaction report. City represents and warrants that it has the full right and authority to grant these rights.

12. Consulting and Other Optional Services
Consultant may from time to time request to consult with City’s staff, including without limitation, regarding (i) technical questions and other issues related to sales and use tax, (ii) utilization of reports to enhance business license collection efforts; (iii) sales tax projections for proposed annexations, economic development projects and budget planning, (iv) negotiating/review of tax sharing agreements, (v) establishing purchasing corporations, (vi) meeting with taxpayers to encourage self-assessment of tax obligations, and (vii) other sales and use tax revenue-related matters. Such services shall be approved in writing in advance by City.
310
4897-6861-4162 v1 24
55452.01100\31193624.5
FEES
In full compensation for the Services actually rendered by the Consultant under this Agreement, the total amount of the consulting and other optional services shall not exceed $521,535, plus an annual escalator and contingent fees. The City shall pay the Consultant the following fees for each category of service:

Sales and Use Tax

1. Sales and Use Tax and Economic Analysis/Forecasting Services/Reports

1.1. Fees for performing the sales tax and economic analysis/forecasting Services as described above shall initially be $550.00 per month, commencing with the month of the Effective Date (hereafter referred to as “monthly fee”). The monthly fee shall be invoiced quarterly in arrears and shall be paid by City no later than 30 days after the invoice date.

1.2. Consultant will increase the non-hourly Fees established above once a year with reference to the 12-month percent change in the most recently published annual Consumer Price Index for All Urban Consumers (CPI-U), as reported by the U.S. Bureau of Labor Statistics (the “CPI Change”).

2. Allocation and Audit Recovery Services

2.1. Fees for performing the allocation and audit recovery Services described above shall be 15% of all new, increased and recovered sales and use tax revenue received by the City as a result, in whole or in part, of the allocation audit and recovery services (hereafter referred to as “audit fee”). The fee shall be paid notwithstanding any related City assistance, work in parallel, and/or incurrence of attorneys’ fees or other costs or expenses in connection, with the relevant Services.

2.2. The Fee described above include, without limitation, State fund transfers received for back quarter reallocations and monies received in the first eight (8) consecutive reporting quarters following completion of Consultant’s allocation audit and confirmation of the corrections by the CDTFA.

2.3. These Fees shall be paid by City upon Consultant’s submittal of evidence of Consultant’s relevant Services in support thereof, including, without limitation, copies of relevant communications between Consultant and the CDTFA and/or taxpayers.

2.4. Consultant recognizes City’s authority to waive or reduce the tax/fee-related debt of a business. Should City decide to do so for a business whose deficiency was identified by Consultant, Consultant shall be entitled to compensation in the amount of one half (1/2) of the Fees Consultant would have otherwise earned. Deficiencies which are uncollectable due to insolvency or dissolution of the business, or for deficiencies which are otherwise incapable of collection (i.e., statute of limitation or other legal defense) shall not be considered a City voluntary election to waive, and thus, Consultant would not be entitled to compensation related thereto under this provision.

3. Consulting and Other Optional Services

3.1. Fees for performing the consulting and other optional Services described above, if preapproved in writing in advance by City, shall be based on the following initial hourly rates: (i) Principal - $325; (ii) Programmer - $295; (iii) Senior Analyst - $245; and (iv) Analyst - $195.
311
4897-6861-4162 v1 25
55452.01100\31193624.5

3.2. Consultant may change the rates for its hourly Fees from time to time after the expiration of the initial term via a written contract amendment, which shall not exceed the CPI change. A 30 days’ prior written notice to City will be given.

4. General Provisions Relating to Fees

4.1. Fees for travel and lodging expenses will be invoiced at cost and applied to all meetings (including implementation, training, operations, and support). Travel expenses only apply to out-of-scope travel and must therefore be pre-approved by City in writing.

4.2. Fees will be invoiced monthly to City for Services performed during the prior month. To the extent that Consultant has commercially reasonable means to do so, Fees will be netted out of City’s monthly revenue disbursement.

5. Confidentiality Information
Section 7056 of the State of California Revenue and Taxation Code (“R&T Code”) specifically limits the disclosure of confidential taxpayer information contained in the records of the CDTFA. Section 7056 specifies the conditions under which a city, county or district may authorize persons other than such city, county or district’s officers and employees to examine state sales and use tax records.

The following conditions specified in Section 7056-(b)(1) of the State of California R&T Code are hereby made part of this Agreement:

5.1. Consultant is authorized by this Agreement to examine sales, use or transactions and use tax records of the CDTFA provided to City pursuant to contract under the BradleyBurns Uniform Local Sales and Use Tax Law R&T Code Section 7200 et.seq.

5.2. Consultant is required to disclose information contained in, or derived from, those sales or transactions and use tax records only to an officer or employee of City who is authorized by City resolution provided to the CDTFA to examine the information.

5.3. Consultant is prohibited from performing consulting services for a retailer (as defined in R&T Code Section 6015), during the term of this Agreement.

5.4. Consultant is prohibited from retaining the information contained in or derived from those sales, use or transactions and use tax records after this agreement has expired.

Information obtained by examination of the CDTFA records shall be used only for purposes related to collection of local sales and use tax or for other governmental functions of the City as set forth by resolution adopted pursuant to Section 7056 (b) of the Revenue and Taxation Code. The resolution shall designate the Consultant as a person authorized to examine sales and use tax records and certify that this agreement meets the requirements set forth above and in Section 7056 (b), (1) of the Revenue and Taxation Code.

6. Software Use and Proprietary Information
Software Use. Consultant hereby provides authorization to City to access Consultant’s Sales Tax website if City chooses to in writing subscribe to the software and reports option. The website shall only be used by authorized City staff. No access will be granted to any third party without explicit written authorization by Consultant. City shall not sublet, duplicate, modify, decompile, reverse engineer, disassemble, or attempt to derive the source code of said software. The software use granted hereunder shall not imply ownership by City of said software, or any right of City to sell said software or the use of same, or any right to use said 312
4897-6861-4162 v1 26
55452.01100\31193624.5
software for the benefit of others. This software use authorization is not transferable. Upon termination or expiration of this Agreement, the software use authorization shall expire, and all City staff website logins shall be de-activated.

Proprietary Information. As used herein, the term “proprietary information” means all information or material that has or could have commercial value or other utility in Consultant’s business, including without limitation: Consultant’s (i) computer or data processing programs; (ii) data processing applications, routines, subroutines, techniques or systems; desktop or webbased software; (iii) business processes; (iv) marketing plans, analysis and strategies; and (v) materials and techniques used; as well as the terms and conditions of this Agreement. Except as otherwise required by law, City shall hold in confidence and shall not use (except as expressly authorized by this Agreement) or disclose to any other party any proprietary information provided, learned of or obtained by City in connection with this Agreement. The obligations imposed by this Section shall survive any expiration or termination of this Agreement or otherwise. The terms of this Section shall not apply to any information that is public information.

Business License, Transient Occupancy Tax & Short-Term Rental Tax Software Solution

1. Pricing Adjustments – All pricing listed in this Schedule will be honored during the first twelve months of software services. Any additional/optional services needed after this period will be provided using Consultant’s current pricing schedule at the time the service is requested.

2. Software Services

2.1. One Time Costs
Item Price Comments
Software License Fee $38,500.00 3-4 Named Users
ESRI GIS Integration $15,000.00 Recurring annual use fee of $3,000 + CPI
Implementation $22,500.00 Project management, installation, configuration, report design,
training, etc.

Data Conversion $15,000.00 Up to 40 hrs. of work.

Travel Expenses TBD At Cost if approved in advance
by City
Training – 1 day Included Additional days available at
$2,000/day
TOTAL $91,000.00 Total one-time costs
313
4897-6861-4162 v1 27
55452.01100\31193624.5

2.1.1. Software License Fee – Fee includes initial use of the software and all standard forms and reports.

2.1.2. Data Conversion – Fee includes two (2) conversions of City data. The first for the pre-install environment used for testing and training, and the second at go-live.

Additional conversions can be performed, upon request, at a cost of $4,000 per conversion. Includes up to 30 hours of developer time. Unusually complex conversions or poor data quality may require additional effort beyond the 30 hours, which will be charged at the developer hourly rate.

2.1.3. Travel Expenses – Travel and lodging expenses are billed at cost and apply to all meetings; including process, pre-installation, installation, training, and support.

Consultant is dedicated to conserving public funds, and ensures any travel costs are required and reasonable. All expenses must be pre-approved in writing in advance by City to be reimbursed.

2.1.4. Customizing Services – Consultant’s software is a customizable off the shelf system (COTS), and has been designed to meet all common needs of local governments. Should the need occur, Consultant may provide custom enhancements to the software on a time and material basis. No work shall be performed without prior written approval of Consultant and City.

2.2. Recurring Costs
Item Price Comments
Software Hostage Fee $28,500.00 Due at Prime core system “Go Live.” Renewed annually + CPI. 4
remote user licenses and 1
webonly user included. Additional
remote access user licenses
@$15.00 each/month.

ESRI GIS annual use fee $3,000.00 Recurring annual use fee of $3,000 + CPI
TOTAL $31,500.00 Total recurring costs

2.2.1. Software Use Fee – Software Use Fee is billed annually, and provides for use of the software by the specified number of licensed users, software hosting services, customer support, and updates to the software. Additional user licenses are available as follows:
$2,000.00 software use fee per license up to 10 total licenses $1,800.00 software use fee per license from 11 to 20 total licenses $1,600.00 software use fee per license above 20 total licenses

2.2.2. CPI – Recurring costs will be increased as of January 1st of each calendar year with reference to the 12-month percent change in the most recently published annual Consumer Price Index for All Urban Consumers (CPI-U), West Region, as reported 314
4897-6861-4162 v1 28
55452.01100\31193624.5
by the U.S. Bureau of Labor Statistics (the “CPI Change”). Each annual increase in the Fees will be equal to the greater of two percent (2%) or the actual CPI Change and the lesser of ten percent (10%) or the actual CPI Change. For example, if the actual CPI Change is 1.5%, then the annual increase will be 2%, if the actual CPI Change is 3.5%, then the annual increase will be 3.5%, and if the actual CPI Change is 12%, then the annual increase will be 10%.

3. Payment Processing – Consultant’s Standard Payment Processing Solution will configure payment processing services to utilize either a taxpayer funded model (service/convenience fee) or Agency funded model, as directed by City. City may switch between these models upon written request to Consultant. Fees for each of these payment processing models are detailed here.

3.1. Taxpayer funded model – City authorizes Consultant to collect each convenience fee from the taxpayer at time of payment.

3.1.1. Credit and debit card processing – 2.9% of transaction amount, minimum of $2.00

3.1.2. ACH/eCheck processing - $2.50 per transaction

3.1.3. ACH/eCheck returns - $0.00 per return

3.1.4. Chargebacks - $0.00 per chargeback

3.1.5. Payment Account Hosting and Maintenance - $35.00 per month

3.2. Agency funded interchange passthrough model

3.2.1. Credit and debit card processing – 2.9% of transaction amount, + $0.30 per transaction

3.2.2. ACH/eCheck processing - $0.75 per transaction

3.2.3. ACH/eCheck returns - $10.00 per return

3.2.4. Chargebacks - $25.00 per chargeback

3.2.5. Payment Account Hosting and Maintenance - $35.00 per month

3.3. Consultant reserves the right to review and adjust pricing related to payment processing services on an annual basis. Consultant will communicate any such adjustment to City in writing, with 60 days advance notice. Items that will be considered in the review of fees may include, but are not limited to: regulatory changes, card association rate adjustments, card association category changes, bank/processor dues and assessments, average consumer payment amounts, card type utilization, and costs of service.

3.4. Fees do not include expenses, late fees or charges, or taxes, all of which shall be the responsibility of City. In addition to the charges specified, City shall be responsible for (a) all interchange and network provider fees, (b) all dues, fees, fines and assessments established and owed by City to Visa and/or Mastercard, (c) for all costs and fees associated with changes to ATM protocol caused by City’s conversion to the Services, and (d) any increase in postage charges, provided that any increase in charges resulting from (a) through (d) shall not exceed the actual increase incurred by Consultant.

4. Payment Schedule

4.1. All one-time project costs and the first-year service fees shall be paid as follows:

4.1.1. 70% shall be due within 30 days of the effective date of the Agreement.

4.1.2. 30% shall be due within 30 days of full system delivery or first production use of the software, whichever comes first.

4.2. Any travel and lodging expenses are billed at cost as they are incurred if approved in writing by City in advance. Such expenses shall be due within 30 days of the billing date. 315
4897-6861-4162 v1 29
55452.01100\31193624.5

4.3. Recurring software service fees will be invoiced upon first production use of the software, and each year thereafter on the anniversary of the effective date of the Agreement, and shall be due within 30 days of the invoice date.

4.4. Payment processing service fees are invoiced monthly for the prior month’s activity, and shall be due within 30 days of the invoice date.

5. Custom Services – Consultant’s current hourly rates are as follows:

5.1. Principal - $325 / hr

5.2. Programmer - $295 / hr

5.3. Senior Analyst - $245 / hr

5.4. Analyst - $195 / hr

OPTIONAL SERVICES FEES
Business License Tax and Fees Compliance

1. Compliance Services

1.1. Fees for performing compliance Services apply to all monies received for the current tax/license period and any other prior period collected (including monies received for taxes, penalties, interest, and fees).

1.1.1. Fees for performing discovery Services shall be a contingency Fee of 50% of the revenues received as a result of the Services.

1.1.2. In the event that City discovers a non-compliant business and reports the business to Consultant (including a calculation of all taxes/fees due), Consultant will categorize the business as a collection service effort and thus apply the lower collection Services contingency Fee rate.

1.1.3. Fees for performing collection Services shall be a contingency Fee of 25% of the revenues received as a result of the Services.

1.1.4. Fees for performing audit Services shall be a contingency Fee of 50% of the revenues received as a result of the Services.

1.2. Consultant recognizes City’s authority to waive or reduce the tax/fee debt of a business.

Should City decide to do so for a business whose deficiency was identified by Consultant, Consultant shall be entitled to compensation in the amount of one half (1/2) of the Fees Consultant would have otherwise earned. Deficiencies which are uncollectable due to insolvency or dissolution of the business, or for deficiencies which are otherwise incapable of collection (i.e. statute of limitation or other legal defense) shall not be considered a City voluntary election to waive, and thus, Consultant would not be entitled to compensation related thereto under this provision.

1.3. The fee shall be paid notwithstanding any related City assistance, work in parallel, and/or incurrence of attorneys’ fees or other costs or expenses in connection, with the relevant Services.

1.4. Fees related to travel and lodging expenses are billed at cost and applied to all meetings (including implementation, training, operations, and support). Travel expenses only apply to out-of-scope travel and must therefore be pre-approved by City in writing.

1.5. Fees will be invoiced monthly to City for Services performed during the prior month. Fees will be netted out of City’s monthly revenue disbursement. City will submit payment for any balance due to Consultant within 30 days of receiving the invoice. 316
4897-6861-4162 v1 30
55452.01100\31193624.5

2. Payment Processing – Consultant will configure payment processing services to utilize either a taxpayer funded model (convenience fee) or City funded model, as directed by City.

City may switch between these models upon written request to Consultant. Fees for each of these payment processing models are detailed here.

2.1. Taxpayer funded model – City authorizes Consultant to collect each convenience fee from the taxpayer at time of payment.

2.1.1. Credit and debit card processing – 2.9% of transaction amount, minimum of $2.00

2.1.2. ACH/eCheck processing - $2.50 per transaction

2.2. City funded

2.2.1. Credit and debit card processing – 2.9% of transaction amount

2.2.2. ACH/eCheck processing - $0.75 per transaction

2.3. Returned payments/NSF fee – Each occurrence of a card chargeback, returned payment or insufficient funds will incur a fee of $25.00, to be applied to the taxpayer’s account.

2.4. Consultant reserves the right to review and adjust pricing related to payment processing services on an annual basis. Consultant will communicate any such adjustment to City in writing, with 60 days advance notice. Items that will be considered in the review of fees may include, but are not limited to: regulatory changes, card association rate adjustments, card association category changes, bank/processor dues and assessments, average consumer payment amounts, card type utilization, and costs of service.

OPTIONAL SERVICES FEES
Tax Ordinance Fee Study Services

3. Business License Tax Ordinance / Fee Study – Fee is $50,000.00, due 50% at the time of Agreement execution, and 50% upon delivery of final report.

4. Transient Occupancy Tax Ordinance / Fee Study – Fee is $20,000.00, due 50% at the time of Agreement execution, and 50% upon delivery of final report.

OPTIONAL SERVICES FEES
Transient Occupancy Tax Administration

5. Operations Management Services

5.12. Fees for performing operations management Services shall be $900.00 per year for each quarterly filing property, and a $5,000.00 one-time implementation fee.

5.13. Fees will be increased as of January 1st of each calendar year with reference to the 12-month percent change in the most recently published annual Consumer Price Index for All Urban Consumers (CPI-U), West Region, as reported by the U.S. Bureau of Labor Statistics (the “CPI Change”). Each annual increase in the Fees will be equal to the greater of two percent (2%) or the actual CPI Change and the lesser of ten percent (10%) or the actual CPI Change. For example, if the actual CPI Change is 1.5%, then the annual increase will be 2%, if the actual CPI Change is 3.5%, then the annual increase will be

3.5%, and if the actual CPI Change is 12%, then the annual increase will be 10%.

5.14. Fees for any travel and lodging expenses will be billed at cost and applied to all meetings (including implementation, training, operations and support) and shall be preapproved in writing in advance by City to be reimbursable. 317
4897-6861-4162 v1 31
55452.01100\31193624.5

5.15. Fees will be invoiced monthly to City for Services performed during the prior month.

Fees will be netted out of City’s monthly revenue disbursement. City will submit payment for any balance due to Consultant within 30 days of receiving the invoice.

6. Payment Processing – Consultant will configure payment processing services to utilize either a taxpayer funded model (convenience fee) or City funded model, as directed by City.

City may switch between these models upon written request to Consultant. Fees for each of these payment processing models are detailed here.

6.12. Taxpayer funded model – City authorizes Consultant to collect each convenience fee from the taxpayer at time of payment.

6.12.1. Credit and debit card processing – 2.9% of transaction amount, minimum of $2.00

6.12.2. ACH/eCheck processing - $2.50 per transaction

6.13. City funded

6.13.1. Credit and debit card processing – 2.9% of transaction amount

6.13.2. ACH/eCheck processing - $0.75 per transaction

6.14. Returned payments/NSF fee – Each occurrence of a card chargeback, returned payment or insufficient funds will incur a fee of $25.00, to be applied to the taxpayer’s account.

6.15. Consultant reserves the right to review and adjust pricing related to payment processing services on an annual basis. Consultant will communicate any such adjustment to City in writing, with 60 days advance notice. Items that will be considered in the review of fees may include, but are not limited to: regulatory changes, card association rate adjustments, card association category changes, bank/processor dues and assessments, average consumer payment amounts, card type utilization, and costs of service.

OPTIONAL SERVICES FEES
Transient Occupancy Tax Audits

7. Audit Services

7.12. Fees for performing audit Services are $2,500.00 per property for up to 9 properties and $2,100 for 10 or more properties.

7.12.1. Fees will be increased as of January 1st of each calendar year with reference to the 12-month percent change in the most recently published annual Consumer Price Index for All Urban Consumers (CPI-U), West Region, as reported by the U.S.

Bureau of Labor Statistics (the “CPI Change”). Each annual increase in the Fees will be equal to the greater of two percent (2%) or the actual CPI Change and the lesser of ten percent (10%) or the actual CPI Change. For example, if the actual CPI Change is 1.5%, then the annual increase will be 2%, if the actual CPI Change is

3.5%, then the annual increase will be 3.5%, and if the actual CPI Change is 12%, then the annual increase will be 10%.

7.13. Fees for any travel and lodging expenses will be billed at cost and applied to all meetings (including implementation, training, operations and support) and must be preapproved in writing by City to be reimbursable.

7.14. Fees will be invoiced monthly to City for Services performed during the prior month.

City will submit payment for any balance due to Consultant within 30 days of receiving the invoice.
318
4897-6861-4162 v1 32
55452.01100\31193624.5

OPTIONAL SERVICES FEES
Short-Term Rentals Transient Occupancy Tax Administration

8. Operations Management Services

8.12. Fees for performing operations management Services shall be $16.00 per filing.

8.13. Fees for performing Compliance Services shall be $36,000.00 for year one and $26,000.00 for year two.

8.14. Fees will be increased as of January 1st of each calendar year with reference to the 12-month percent change in the most recently published annual Consumer Price Index for All Urban Consumers (CPI-U), West Region, as reported by the U.S. Bureau of Labor Statistics (the “CPI Change”). Each annual increase in the Fees will be equal to the greater of two percent (2%) or the actual CPI Change and the lesser of ten percent (10%) or the actual CPI Change. For example, if the actual CPI Change is 1.5%, then the annual increase will be 2%, if the actual CPI Change is 3.5%, then the annual increase will be

3.5%, and if the actual CPI Change is 12%, then the annual increase will be 10%.

8.15. Fees for any travel and lodging expenses will be billed at cost and applied to all meetings (including implementation, training, operations and support) and must be preapproved in writing by City to be reimbursable.

8.16. Fees will be invoiced monthly to City for Services performed during the prior month.

Fees will be netted out of City’s monthly revenue disbursement. City will submit payment for any balance due to Consultant within 30 days of receiving the invoice.

9. Payment Processing – Consultant will configure payment processing services to utilize either a taxpayer funded model (convenience fee) or City funded model, as directed by City.

City may switch between these models upon written request to Consultant. Fees for each of these payment processing models are detailed here.

9.12. Taxpayer funded model – City authorizes Consultant to collect each convenience fee from the taxpayer at time of payment.

9.12.1. Credit and debit card processing – 2.9% of transaction amount, minimum of $2.00

9.12.2. ACH/eCheck processing - $2.50 per transaction

9.13. City funded

9.13.1. Credit and debit card processing – 2.9% of transaction amount

9.13.2. ACH/eCheck processing - $0.75 per transaction

9.14. Returned payments/NSF fee – Each occurrence of a card chargeback, returned payment or insufficient funds will incur a fee of $25.00, to be applied to the taxpayer’s account.

9.15. Consultant reserves the right to review and adjust pricing related to payment processing services on an annual basis. Consultant will communicate any such adjustment to City in writing, with 60 days advance notice. Items that will be considered in the review of fees may include, but are not limited to: regulatory changes, card association rate adjustments, card association category changes, bank/processor dues and assessments, average consumer payment amounts, card type utilization, and costs of service.
319
4897-6861-4162 v1 1
55452.01100\31193624.5
EXHIBIT "B"

SCHEDULE OF SERVICES
Consultant shall diligently perform the services to the City’s satisfaction and within any established timeframes or deadlines set by the City or proposed by Consultant and agreed by the City. 320
55452.01100\31193624.5
4897-6861-4162 v1
EXHIBIT “C”

INSURANCE REQUIREMENTS

3.2.12 Insurance.

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

3.2.12.2 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 Consultant, in partial performance of its obligations under such Agreement, shall procure and maintain in full force and effect during the term of the Agreement the following policies of insurance. If the existing policies do not meet the insurance requirements set forth herein, Consultant agrees to amend, supplement or endorse the policies to do so.
(A) Commercial General Liability: Commercial General Liability Insurance which affords coverage at least as broad as Insurance Services Office "occurrence" form CG 0001, or the exact equivalent, with limits of not less than $1,000,000 per occurrence and no less than $2,000,000 in the general aggregate. Defense costs shall be paid in addition to the limits. The policy shall contain no endorsements or provisions (1) limiting coverage for contractual liability; (2) excluding coverage for claims or suits by one insured against another (cross-liability); or (3) containing any other exclusion(s) contrary to the terms or purposes of this Agreement. (B) Automobile Liability Insurance: Automobile Liability Insurance with coverage at least as broad as Insurance Services Office Form CA 0001 covering "Any Auto" (Symbol 1), or the exact equivalent, covering bodily injury and property damage for all activities with limits of not less than $1,000,000 combined limit for each occurrence. (C) Workers' Compensation: Workers' Compensation
Insurance, as required by the State of California and Employer's Liability Insurance with a limit of not less than $1,000,000 per accident for bodily injury and disease. (D) Professional Liability (Errors & Omissions): Professional Liability insurance or Errors & Omissions insurance appropriate to Consultant’s profession with limits of not less than $1,000,000 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. (E) Cyber Liability Insurance with limits not less than $2,000,000 per occurrence or claim, $2,000,000 aggregate. Coverage shall be sufficiently broad to respond to the duties and obligations as is undertaken by Contractor in this agreement and shall include, but not be limited to, claims involving security breach, system failure, data recovery, 321
55452.01100\31193624.5
4897-6861-4162 v1
business interruption, cyber extortion, social engineering, infringement of intellectual property, including but not limited to infringement of copyright, trademark, trade dress, invasion of privacy violations, information theft, damage to or destruction of electronic information, release of private information, and alteration of electronic information. The policy shall provide coverage for breach response costs, regulatory fines and penalties as well as credit monitoring expenses.

3.2.12.3 Insurance Endorsements. Required insurance policies shall contain the following provisions, or Consultant shall provide endorsements on forms approved by the City to add the following provisions to the insurance policies:
(A) Commercial General Liability:
(1) Additional Insured: The City, its officials, officers, employees, agents, and volunteers shall be additional insureds with regard to liability and defense of suits or claims arising out of the performance of the Agreement.

Additional Insured Endorsements shall not (1) be
restricted to "ongoing operations"; (2) exclude "contractual liability"; (3) restrict coverage to "sole" liability of Consultant; or (4) contain any other exclusions contrary to the terms or purposes of this Agreement. For all policies of Commercial General Liability insurance, Consultant shall provide endorsements in the form of ISO CG 20 10 10 01 (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 322
55452.01100\31193624.5
4897-6861-4162 v1
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 Consultant or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Consultant hereby waives its own right of recovery against the City, its officials, officers, employees, agents, and volunteers, and shall require similar written express waivers and insurance clauses from each of its subconsultants.

3.2.12.8 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 Consultant, concurrently with the execution of the Agreement, and as a condition precedent to the effectiveness thereof, shall deliver either certified copies of the required policies, or original certificates on forms approved by the City, together with all endorsements affecting each policy. Required insurance policies shall not be in compliance if they include any limiting provision or endorsement that has not been submitted to the City for approval. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf. At least fifteen (15 days) prior to the expiration of any such policy, evidence of insurance showing that such insurance coverage has been renewed or extended shall be filed with the City. If such coverage is cancelled or reduced and not replaced immediately so as to avoid a lapse in the required coverage, Consultant shall, within ten (10) days after receipt of written notice of such cancellation or reduction of coverage, file with the City evidence of insurance showing that the required insurance has been reinstated or has been provided through another insurance company or companies.

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

3.2.12.11 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).

Consultant acknowledges and agrees that actual or alleged failure on the part of the City to inform Consultant of non-compliance with any requirement imposes no additional obligation on the City nor does it waive any rights hereunder.
323
55452.01100\31193624.5
4897-6861-4162 v1

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 Subconsultants. Consultant shall include all subconsultants engaged in any work for Consultant relating to this Agreement as additional insureds under the Consultant's policies, or the Consultant shall be responsible for causing subconsultants to purchase the appropriate insurance in compliance with the terms of these Insurance Requirements, including adding the City, its officials, officers, employees, agents, and volunteers as additional insureds to the subconsultant's policies. All policies of Commercial General Liability insurance provided by Consultant’s subconsultants performing work relating to this Agreement shall be endorsed to name the City, its officials, officers, employees, agents and volunteers as additional insureds using endorsement form ISO CG 20 38 04 13 or an endorsement providing equivalent coverage. Consultant shall not allow any subconsultant to commence work on any subcontract relating to this Agreement until it has received satisfactory evidence of subconsultant’s compliance with all insurance requirements under this Agreement, to the extent applicable. The Consultant shall provide satisfactory evidence of compliance with this section upon request of the City.
324
55452.01100\31193624.5
4897-6861-4162 v1
WORKER’S COMPENSATION INSURANCE CERTIFICATION

WORKERS' COMPENSATION DECLARATION
I hereby affirm under penalty of perjury one of the following declarations:
(ONE OF THE BOXES BELOW MUST BE CHECKED)
I have and will maintain a certificate of consent from the California Labor Commission to self-insure for workers' compensation, as provided for by Section 3700 of the Labor Code, for the performance of the work to be performed under this contract.

I have and will maintain workers' compensation insurance, as required by Section 3700 of the Labor Code, for the performance of the work to be performed under this contract. My workers' compensation insurance carrier and policy number are:

Carrier____________________________________________________ Policy Number______________________________________________ I certify that, in the performance of the work under this Agreement, I shall not employ any person in any manner so as to become subject to the workers' compensation laws of California, and I hereby agree to indemnify, defend, and hold harmless the City of San Clemente and all of its officials, employees, and agents from and against any and all claims, liabilities, and losses relating to personal injury or death, economic losses, and property damage arising out of my failure to provide such worker’s compensation insurance. I further agree that, if I should become subject to the workers' compensation provisions of Section 3700 of the Labor Code, I shall forthwith comply with those provisions.

WARNING: FAILURE TO SECURE WORKERS’ COMPENSATION

COVERAGE IS UNLAWFUL, AND SHALL SUBJECT AN EMPLOYER TO

CRIMINAL PENALTIES AND CIVIL FINES UP TO ONE HUNDRED THOUSAND DOLLARS ($100,000), IN ADDITION TO THE COST OF COMPENSATION, DAMAGES AS PROVIDED FOR IN SECTION 3706 OF THE LABOR CODE, INTEREST, AND ATTORNEY’S FEES.
325
55452.01100\31193624.5
4897-6861-4162 v1
Dated: ________________________, 20____
________________________________
(“CONSULTANT”)
By: ________________________________
________________________________
Title
________________________________
Address
________________________________
326
Attachment 4

CITY OF SAN CLEMENTE

PROFESSIONAL CONSULTANT SERVICES AGREEMENT

1. PARTIES AND DATE.

This Agreement is made and entered into this _____ day of ________, 20___, 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 HdL Coren & Cone, a California Corporation, with its principal place of business at 120 S. State College Blvd., Suite 200, Brea, CA 92821 ("Consultant"). City and Consultant are sometimes individually referred to herein as "Party" and collectively as "Parties."

2. RECITALS.

2.1 Consultant.

Consultant desires to perform and assume responsibility for the provision of certain professional Property Tax Consulting Services required by the City on the terms and conditions set forth in this Agreement. Consultant represents that it is experienced in providing professional Property Tax Consulting 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 Consultant to render such professional Property Tax Consulting Services for the Property Tax Analysis, Audit and Recovery project ("Project") as set forth in this Agreement.

3. TERMS.

3.1 Scope of Services and Term.

3.1.1 General Scope of Services. Consultant promises and agrees to furnish to the City all labor, materials, tools, equipment, services, and incidental and customary work necessary to fully and adequately supply the professional Property Tax Consulting Services necessary for the Project ("Services"). The Services are more particularly described in Exhibit "A" attached hereto and incorporated herein by reference. All Services shall be subject to, and performed in accordance with, this Agreement, the exhibits attached hereto and incorporated herein by reference, and all applicable local, state and federal laws, rules and regulations.

Additionally,

3.1.2 Term. The term of this Agreement shall be from Commencement Date to March 31, 2030, unless earlier terminated as provided herein. The City shall have the unilateral option, at its sole discretion, to renew this Agreement automatically for one-year terms. Consultant shall complete the Services within the term of this Agreement, and shall meet any other established schedules and deadlines.

3.2 Responsibilities of Consultant.

3.2.1 Independent Contractor; Control and Payment of Subordinates. The Services shall be performed by Consultant or under its supervision. Consultant will determine the means, methods and details of performing the Services subject to the requirements of this Agreement. City retains Consultant on an independent contractor basis and not as an employee.

Consultant retains the right to perform similar or different services for others during the term of 327
4918-5684-3022 v2 2
55452.01100\31193624.5
this Agreement. Any additional personnel performing the Services under this Agreement on behalf of Consultant shall also not be employees of City and shall at all times be under Consultant's exclusive direction and control, the City being only concerned with the finished results of the work being performed. Neither City, nor any of its officials, officers, directors, employees or agents shall have control over the conduct of Consultant or any of Consultant's officers, employees, or agents, except as set forth in this Agreement. Consultant shall pay all wages, salaries, and other amounts due such personnel in connection with their performance of Services under this Agreement and as required by law. Consultant shall be solely 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. Neither Consultant nor Consultant's employees shall in any event be entitled to any benefits to which City employees are entitled, including, but not limited to, overtime, retirement benefits, workers’ compensation benefits, injury leave or other leave benefits. Consultant is solely responsible for all such matters, as well as compliance with social security and income tax withholding and all other regulations and laws governing such matters.

3.2.2 PERS Eligibility and Employee Payments Indemnification. In the event that Consultant's employee providing services under this Agreement claims or is determined by a court of competent jurisdiction or the California Public Employees Retirement System (PERS) to be eligible for enrollment in PERS of the City, Consultant shall indemnify, defend, and hold harmless City for the payment of any employer and employee contributions for PERS benefits on behalf of the employee as well as for payment of any penalties and interest on such contributions that would otherwise be the responsibility of the City. Notwithstanding any other agency, state or federal policy, rule, regulation, law or ordinance to the contrary, Consultant's employees providing service under this Agreement shall not qualify for or become entitled to, and hereby agree to waive any claims to, any compensation and benefit including but not limited to eligibility to enroll in PERS as an employee of City and entitlement to any contributions to be paid by City for employer contributions and/or employee contributions for PERS benefits. Consultant agrees to defend and indemnify the City for any obligation, claim, suit or demand for tax, retirement contribution including any contribution to the PERS, social security, salary or wages, overtime payment, or workers’ compensation payment that the City may be required to make for work done under this Agreement. The provisions of this section 3.2.2 are continuing obligations that shall survive expiration or termination of this Agreement.

3.2.3 Schedule of Services. Consultant shall perform the Services expeditiously, within the term of this Agreement, and in accordance with the Schedule of Services set forth in Exhibit "B" attached hereto and incorporated herein by reference. Consultant represents that it has the professional and technical personnel required to perform the Services in conformance with such conditions. In order to facilitate Consultant's conformance with the Schedule, City shall respond to Consultant's submittals in a timely manner. Upon request of City, Consultant shall provide a more detailed schedule of anticipated performance to meet the Schedule of Services.

3.2.4 Endorsement on PS&E/ Other Data. Consultant shall sign all plans, specifications, estimates (PS&E) and engineering data furnished by Consultant, and where appropriate will indicate Consultant’s authorized signature and professional registration number.

3.2.5 Conformance to Applicable Requirements. All work prepared by Consultant shall be subject to the approval of City.

3.2.6 Substitution of Key Personnel. Consultant has represented to City that certain key personnel will perform and coordinate the Services under this Agreement. Should one or more of such personnel become unavailable, Consultant may substitute other personnel 328
4918-5684-3022 v2 3
55452.01100\31193624.5
of at least equal competence upon written approval of City. In the event that City and Consultant cannot agree as to the substitution of key personnel, City shall be entitled to terminate this Agreement for cause. As discussed below, any personnel who fail or refuse to perform the Services in a manner acceptable to the City, or who are determined by the City to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project or a threat to the safety of persons or property, shall be promptly removed from the Project by the Consultant at the request of the City. The key personnel for performance of this Agreement are as follows:

3.2.7 City's Representative. The City hereby designates Brian Brower, Administrative Services Director, or his/her designee, to act as its representative in all matters pertaining to the administration and performance of this Agreement ("City's Representative").

City's Representative shall have the power to act on behalf of the City for review and approval of all products submitted by Consultant but not the authority to enlarge the Scope of Work or change the total compensation due to Consultant under this Agreement. The City Manager shall be authorized to act on City's behalf and to execute all necessary documents which enlarge the Scope of Work or change the Consultant's total compensation subject to the provisions contained in Section 3.3 of this Agreement. Consultant shall not accept direction or orders from any person other than the City Manager, City's Representative or his/her designee.

3.2.8 Consultant's Representative. Consultant hereby designates Paula Cone, President, or his/her designee, to act as its representative for the performance of this Agreement ("Consultant's Representative"). Consultant's Representative shall have full authority to represent and act on behalf of the Consultant for all purposes under this Agreement. The Consultant's Representative shall supervise and direct the Services, using his/her best skill and attention, and shall be responsible for all means, methods, techniques, sequences, and procedures and for the satisfactory coordination of all portions of the Services under this Agreement.

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

3.2.10 Standard of Care; Performance of Employees. Consultant shall perform all Services under this Agreement in a skillful and competent manner, consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California. Consultant represents and maintains that it is skilled in the professional calling necessary to perform the Services. Consultant warrants that all employees and subconsultants shall have sufficient skill and experience to perform the Services assigned to them. Finally, Consultant represents that it, its employees and subconsultants have all licenses, permits, qualifications and approvals of whatever nature that are legally required to perform the Services, and that such licenses and approvals shall be maintained throughout the term of this Agreement.

As provided for in the indemnification provisions of this Agreement, Consultant shall perform, at its own cost and expense and without reimbursement from the City, any services necessary to correct errors or omissions which are caused by the Consultant's failure to comply with the standard of care provided for herein. Any employee of the Consultant or its sub-consultants who is determined by the City to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project, a threat to the safety of persons or property, or any employee who fails or refuses to perform the Services in a manner acceptable to the City, shall be promptly removed from the Project by the Consultant and shall not be re-employed to perform any of the Services or to work on the Project.

3.2.11 Laws and Regulations. Consultant shall keep itself fully informed of and in 329
4918-5684-3022 v2 4
55452.01100\31193624.5
compliance with all local, state and federal laws, rules and regulations in any manner affecting the performance of the Project or the Services, including all Cal/OSHA requirements, and shall give all notices required by law. Consultant shall be liable for all violations of such laws and regulations in connection with Services. If Consultant performs any work knowing it to be contrary to such laws, rules and regulations, Consultant shall be solely responsible for all costs arising therefrom. Consultant shall defend, indemnify and hold City, its officials, directors, officers, employees, agents, and volunteers free and harmless, pursuant to the indemnification provisions of this Agreement, from any claim or liability arising out of any failure or alleged failure to comply with such laws, rules or regulations.

3.2.12 Safety. Consultant shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out its Services, the Consultant shall at all times be in compliance with all applicable local, state and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed. Safety precautions, where applicable, shall include, but shall not be limited to: (A) adequate life protection and lifesaving equipment and procedures; (B) instructions in accident prevention for all employees and subconsultants, such as safe walkways, scaffolds, fall protection ladders, bridges, gang planks, confined space procedures, trenching and shoring, equipment and other safety devices, equipment and wearing apparel as are necessary or lawfully required to prevent accidents or injuries; and (C) adequate facilities for the proper inspection and maintenance of all safety measures.

3.2.13 Insurance. Consultant agrees to procure and maintain, at Consultant’s expense all insurance specified in Exhibit “C” attached hereto and by this reference incorporated herein. Consultant shall require all subconsultants to carry the same policies and limits of insurance that the Consultant is required to maintain, unless otherwise approved in writing by the City.

3.3 Fees and Payments.

3.3.1 Compensation. Consultant shall receive compensation, including authorized reimbursements, for all Services rendered under this Agreement at the rates set forth in Exhibit "D" attached hereto and incorporated herein by reference. The total base compensation shall not exceed twenty-one thousand ($21,000) per year, plus an annual escalation based on the California Consumer Price Index from February to February, and a 25% contingent fee for net tax revenues recovered from audits, without written approval of the City Council or City Manager as applicable. Extra Work may be authorized, as described herein, and if authorized, will be compensated at the rates and manner set forth in this Agreement.

3.3.2 Payment of Compensation. Consultant shall submit to City a quarterly invoice which indicates work completed and hours of Services rendered by Consultant. The invoice shall describe the amount for Services provided since the initial commencement date, or since the start of the subsequent billing periods, as appropriate, through the date of the invoice.

City shall, within 30 days of receiving such invoice, review the invoice and pay all non-disputed and approved charges thereon. If the City disputes any of Consultant's fees, the City shall give written notice to Consultant within thirty (30) days of receipt of an invoice of any disputed fees set forth therein.

3.3.3 Reimbursement for Expenses. Consultant shall not be reimbursed for any expenses unless authorized in writing by City, or included in Exhibit "D" of this Agreement. 330
4918-5684-3022 v2 5
55452.01100\31193624.5

3.3.4 Extra Work. At any time during the term of this Agreement, City may request that Consultant perform Extra Work. As used herein, "Extra Work" means any work which is determined by City to be necessary for the proper completion of the Project, but which the Parties did not reasonably anticipate would be necessary at the execution of this Agreement.

Consultant shall not perform, nor be compensated for, Extra Work without written authorization from the City.

3.3.5 Rate Increases. In the event that this Agreement is renewed pursuant to Section 3.1.2, the rate set forth in Exhibit “D” may be adjusted each year at the time of renewal as set forth in Exhibit “D.”

3.3.6 Labor Code Requirements.

3.3.6.1 Prevailing Wages. Consultant is aware of the requirements of California Labor Code Section 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Section 16000, et seq., ("Prevailing Wage Laws"), which require the payment of prevailing wage rates and the performance of other requirements on "public works" and "maintenance" projects. If the Services are being performed as part of an applicable "public works" or "maintenance" project, as defined by the Prevailing Wage Laws, and if the total compensation is $1,000 or more, Consultant agrees to fully comply with such Prevailing Wage Laws. Consultant shall make copies of the prevailing rates of per diem wages for each craft, classification or type of worker needed to execute the Services available to interested parties upon request, and shall post copies at the Consultant's principal place of business and at the project site. Consultant shall defend, indemnify and hold the City, its officials, officers, employees, agents, and volunteers free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws.

3.3.6.2 Registration. If the Services are being performed as part of an applicable “public works” or “maintenance” project, in addition to the foregoing, then pursuant to Labor Code sections 1725.5 and 1771.1, the Consultant and all subconsultants must be registered with the Department of Industrial Relations (“DIR”). Consultant shall maintain registration for the duration of the project and require the same of any subconsultants. This project may also be subject to compliance monitoring and enforcement by the DIR. It shall be Consultant’s sole responsibility to comply with all applicable registration and labor compliance requirements, including the submission of payroll records directly to the DIR. Notwithstanding the foregoing, the contractor registration requirements mandated by Labor Code sections 1725.5 and 1771.1 shall not apply to Services performed on a public works project that is exempt pursuant to the small project exemption specified in Labor Code sections 1725.5 and 1771.1.

3.4 Accounting Records.

3.4.1 Maintenance and Inspection. Consultant shall maintain complete and accurate records with respect to all costs and expenses incurred under this Agreement. All such records shall be clearly identifiable. Consultant shall allow a representative of City during normal business hours to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement. Consultant shall allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period of four (4) years from the date of final payment under this Agreement.

3.5 General Provisions.

3.5.1 Termination of Agreement.
331
4918-5684-3022 v2 6
55452.01100\31193624.5

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

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

3.5.1.3 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:

Consultant: HdL Coren & Cone
120 S. State College Blvd, Suite 200
Brea, CA 92821
ATTN: Paula Cone, President
City: City of San Clemente
910 Calle Negocio
San Clemente, CA 92673
ATTN: Laura Campagnolo, City Clerk and Brian
Brower, Administrative Services Director
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 Ownership of Materials and Confidentiality.

3.5.3.1 Documents & Data; Licensing of Intellectual Property. This Agreement creates a non-exclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, and other intellectual property embodied in plans, specifications, studies, drawings, estimates, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings or data magnetically or otherwise recorded on computer diskettes, which are prepared or caused to be prepared by Consultant under this Agreement ("Documents & Data"). Consultant shall require all subconsultants to agree in writing that City is granted a non-exclusive and perpetual license for any Documents & Data the subconsultant prepares under this Agreement. Consultant represents and warrants that Consultant has the legal right to license any and all Documents & Data.

Consultant makes no such representation and warranty in regard to Documents & Data which were prepared by design professionals other than Consultant or provided to Consultant by the 332
4918-5684-3022 v2 7
55452.01100\31193624.5
City. City shall not be limited in any way in its use of the Documents & Data at any time, provided that any such use not within the purposes intended by this Agreement shall be at City's sole risk.

3.5.3.2 Confidentiality. All ideas, memoranda, specifications, plans, procedures, drawings, descriptions, computer program data, input record data, written information, and other Documents & Data either created by or provided to Consultant in connection with the performance of this Agreement shall be held confidential by Consultant. Such materials shall not, without the prior written consent of City, be used by Consultant for any purposes other than the performance of the Services. Nor shall such materials be disclosed to any person or entity not connected with the performance of the Services or the Project. Nothing furnished to Consultant which is otherwise known to Consultant or is generally known, or has become known, to the related industry shall be deemed confidential. Consultant shall not use City's name or insignia, photographs of the Project, or any publicity pertaining to the Services or the Project in any magazine, trade paper, newspaper, television or radio production or other similar medium without the prior written consent of City.

3.5.3.3 Confidential Information. The City shall refrain from releasing Consultant’s proprietary information ("Proprietary Information") unless the City's legal counsel determines that the release of the Proprietary Information is required by the California Public Records Act or other applicable state or federal law, or order of a court of competent jurisdiction, in which case the City shall notify Consultant of its intention to release Proprietary Information.

Consultant shall have five (5) working days after receipt of the Release Notice to give City written notice of Consultant's objection to the City's release of Proprietary Information. Consultant shall indemnify, defend and hold harmless the City, and its officers, directors, employees, and agents from and against all liability, loss, cost or expense (including attorney’s fees) arising out of a legal action brought to compel the release of Proprietary Information. City shall not release the Proprietary Information after receipt of the Objection Notice unless either: (1) Consultant fails to fully indemnify, defend (with City's choice of legal counsel), and hold City harmless from any legal action brought to compel such release; and/or (2) a final and non-appealable order by a court of competent jurisdiction requires that City release such information.

3.5.4 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.

3.5.5 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.

3.5.6 Indemnification.

3.5.6.1 To the fullest extent permitted by law, Consultant 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 Consultant, its officials, officers, employees, subcontractors, consultants or agents in connection with the performance of the Consultant's Services, the Project or this Agreement, including without limitation the payment of all damages, expert witness fees and attorney’s fees and other related costs and expenses. Consultant’s obligation to indemnify shall not be restricted to insurance proceeds, if 333
4918-5684-3022 v2 8
55452.01100\31193624.5
any, received by Consultant, the City, its officials, officers, employees, agents, or volunteers.

3.5.6.2 If Consultant’s obligation to defend, indemnify, and/or hold harmless arises out of Consultant’s performance as a “design professional” (as that term is defined under Civil Code section 2782.8), then, and only to the extent required by Civil Code section 2782.8, which is fully incorporated herein, Consultant’s indemnification obligation shall be limited to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant, and, upon Consultant obtaining a final adjudication by a court of competent jurisdiction, Consultant’s liability for such claim, including the cost to defend, shall not exceed the Consultant’s proportionate percentage of fault.

3.5.7 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.

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

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

3.5.10 City's Right to Employ Other Consultants. City reserves right to employ other consultants in connection with this Project.

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

3.5.12 Assignment or Transfer. Consultant shall not assign, hypothecate, or transfer, either directly or by operation of law, this Agreement or any interest herein without the prior written consent of the City. Any attempt to do so shall be null and void, and any assignees, hypothecates or transferees shall acquire no right or interest by reason of such attempted assignment, hypothecation or transfer.

3.5.13 Construction; References; Captions. Since the Parties or their agents have participated fully in the preparation of this Agreement, the language of this Agreement shall be construed simply, according to its fair meaning, and not strictly for or against any Party. Any term referencing time, days or period for performance shall be deemed calendar days and not work days. All references to Consultant include all personnel, employees, agents, and subconsultants of Consultant, except as otherwise specified in this Agreement. All references to City include its elected officials, officers, employees, agents, and volunteers except as otherwise specified in this Agreement. The captions of the various articles and paragraphs are for convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content, or intent of this Agreement.

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

3.5.15 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.
334
4918-5684-3022 v2 9
55452.01100\31193624.5

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

3.5.17 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.

3.5.18 Prohibited Interests. Consultant maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Consultant, to solicit or secure this Agreement. Further, Consultant warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability. For the term of this Agreement, no member, officer or employee of City, during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.

3.5.19 Equal Opportunity Employment. Consultant represents that it is an equal opportunity employer and it shall not discriminate against any subconsultant, employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex or age. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination. Consultant shall also comply with all relevant provisions of City, state and federal grant requirements and related programs, policies and guidelines currently in effect or hereinafter enacted.

3.5.20 Labor Certification. By its signature hereunder, Consultant certifies that it is aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for Worker's Compensation or to undertake self-insurance in accordance with the provisions of that Code, and agrees to comply with such provisions before commencing the performance of the Services.

3.5.21 Authority to Enter Agreement. Consultant has all requisite power and authority to conduct its business and to execute, deliver, and perform the Agreement. Each Party warrants that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and bind each respective Party.

3.5.22 Counterparts/Electronic Signatures. This Agreement may be signed in counterparts, each of which shall constitute an original. This Agreement may be signed with the same force and effect as original ink signatures.

3.6 Subcontracting.

3.6.1 Prior Approval Required. Consultant shall not subcontract any portion of the work required by this Agreement, except as expressly stated herein, without prior written approval of City. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed on the respective dates set forth opposite of their signatures. 335
4918-5684-3022 v2 10
55452.01100\31193624.5

CITY OF SAN CLEMENTE
By:________________________________
Andy Hall, City Manager
ATTEST: Dated: __________________, 20____
_____________________________
CITY CLERK of the City of
San Clemente, California
APPROVED AS TO FORM:
_____________________________
Elizabeth A. Mitchell, City Attorney

APPROVED AS TO AVAILABILITY
OF FUNDING:
_____________________________
Finance Authorization

____________HdL Coren & Cone
(“CONSULTANT”)
By:_____________________________
Nichole Cone-Morishita, CFO
Dated: __________________, 20____
By:_____________________________
David Schey, Secretary
Dated: __________________, 20____
EXHIBIT "A"

SCOPE OF SERVICES
336
4918-5684-3022 v2 11
55452.01100\31193624.5
Property Tax Services
Consultant shall perform the following services for the City (collectively, the “Services”) to the City’s satisfaction:

Provide Professional Property Tax Consulting Services including but not limited to the following:
analysis, audit and recovery services for the City’s property (real and personal) tax rolls (secured and unsecured) for use in budget planning/forecasting, planning, economic development and/or public information.

Required data sets include but are not limited to the following:

1. Historical and current summaries and detail for the following (APN number should be included as reference):
a. Assessed value
i. Secured and unsecured
ii. Land use
iii. Residential and non-residential (commercial)
b. Summary of sales
i. By fiscal year
ii. Residential and non-residential (commercial)

2. Property and revenue trends for the City, by agreed upon, defined geographic areas.

3. Detail of assessed values and base year values.

4. Five-year history of property values within the City.

5. Listing of value changes between tax years.

6. Listing of parcels that have not changed ownership since the enactment of Proposition 13.

7. Property sales information including but not limited to a listing by APN number of all properties sold, date of sale, the assessed value at time of sale, and their sales price and/or market value.

8. Calculation of property tax revenue anticipated for the fiscal year, based on information from the County.

EXHIBIT "B"

SCHEDULE OF SERVICES
Consultant shall diligently perform the services to the City’s satisfaction and within any established timeframes or deadlines set by the City or proposed by Consultant and approved by the City. 337
55452.01100\31193624.5
4918-5684-3022 v2
EXHIBIT “C”

INSURANCE REQUIREMENTS

3.2.12 Insurance.

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

3.2.12.2 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 Consultant, in partial performance of its obligations under such Agreement, shall procure and maintain in full force and effect during the term of the Agreement the following policies of insurance. If the existing policies do not meet the insurance requirements set forth herein, Consultant agrees to amend, supplement or endorse the policies to do so.
(A) Commercial General Liability: Commercial General Liability Insurance which affords coverage at least as broad as Insurance Services Office "occurrence" form CG 0001, or the exact equivalent, with limits of not less than $1,000,000 per occurrence and no less than $2,000,000 in the general aggregate. Defense costs shall be paid in addition to the limits. The policy shall contain no endorsements or provisions (1) limiting coverage for contractual liability; (2) excluding coverage for claims or suits by one insured against another (cross-liability); or (3) containing any other exclusion(s) contrary to the terms or purposes of this Agreement. (B) Automobile Liability Insurance: Automobile Liability Insurance with coverage at least as broad as Insurance Services Office Form CA 0001 covering "Any Auto" (Symbol 1), or the exact equivalent, covering bodily injury and property damage for all activities with limits of not less than $1,000,000 combined limit for each occurrence. (C) Workers' Compensation: Workers' Compensation
Insurance, as required by the State of California and Employer's Liability Insurance with a limit of not less than $1,000,000 per accident for bodily injury and disease. (D) Professional Liability (Errors & Omissions) and Cyber Liability Insurance: Professional Liability insurance or Errors & Omissions and/or Cyber Liability insurance appropriate to Consultant’s profession with limits of not less than $2,000,000 per occurrence or claim, $2,000,000 aggregate.
(1) 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. 338
55452.01100\31193624.5
4918-5684-3022 v2
(2) Coverage for Cyber Liability shall be sufficiently
broad to respond to the duties and obligations as is undertaken by Contractor in this agreement and shall include, but not be limited to, claims involving security breach, system failure, data recovery, business interruption, cyber extortion, social engineering, infringement of intellectual property, including but not limited to infringement of copyright, trademark, trade dress, invasion of privacy violations, information theft, damage to or destruction of electronic information, release of private information, and alteration of electronic information. The policy shall provide coverage for breach response costs, regulatory fines and penalties as well as credit monitoring expenses.

3.2.12.3 Insurance Endorsements. Required insurance policies shall contain the following provisions, or Consultant shall provide endorsements on forms approved by the City to add the following provisions to the insurance policies:
(A) Commercial General Liability:
(1) Additional Insured: The City, its officials, officers, employees, agents, and volunteers shall be additional insureds with regard to liability and defense of suits or claims arising out of the performance of the Agreement.

Additional Insured Endorsements shall not (1) be
restricted to "ongoing operations"; (2) exclude "contractual liability"; (3) restrict coverage to "sole" liability of Consultant; or (4) contain any other exclusions contrary to the terms or purposes of this Agreement. For all policies of Commercial General Liability insurance, Consultant shall provide endorsements in the form of ISO CG 20 10 10 01 (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. 339
55452.01100\31193624.5
4918-5684-3022 v2

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 Consultant or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Consultant hereby waives its own right of recovery against the City, its officials, officers, employees, agents, and volunteers, and shall require similar written express waivers and insurance clauses from each of its subconsultants.

3.2.12.8 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 Consultant, concurrently with the execution of the Agreement, and as a condition precedent to the effectiveness thereof, shall deliver either certified copies of the required policies, or original certificates on forms approved by the City, together with all endorsements affecting each policy. Required insurance policies shall not be in compliance if they include any limiting provision or endorsement that has not been submitted to the City for approval. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf. At least fifteen (15 days) prior to the expiration of any such policy, evidence of insurance showing that such insurance coverage has been renewed or extended shall be filed with the City. If such coverage is cancelled or reduced and not replaced immediately so as to avoid a lapse in the required coverage, Consultant shall, within ten (10) days after receipt of written notice of such cancellation or reduction of coverage, file with the City evidence of insurance showing that the required insurance has been reinstated or has been provided through another insurance company or companies.

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

3.2.12.11 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).

Consultant acknowledges and agrees that actual or alleged failure on the part of the City to inform Consultant of non-compliance with any requirement imposes no additional obligation on the City nor does it waive any rights hereunder.
340
55452.01100\31193624.5
4918-5684-3022 v2

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 Subconsultants. Consultant shall include all subconsultants engaged in any work for Consultant relating to this Agreement as additional insureds under the Consultant's policies, or the Consultant shall be responsible for causing subconsultants to purchase the appropriate insurance in compliance with the terms of these Insurance Requirements, including adding the City, its officials, officers, employees, agents, and volunteers as additional insureds to the subconsultant's policies. All policies of Commercial General Liability insurance provided by Consultant’s subconsultants performing work relating to this Agreement shall be endorsed to name the City, its officials, officers, employees, agents and volunteers as additional insureds using endorsement form ISO CG 20 38 04 13 or an endorsement providing equivalent coverage. Consultant shall not allow any subconsultant to commence work on any subcontract relating to this Agreement until it has received satisfactory evidence of subconsultant’s compliance with all insurance requirements under this Agreement, to the extent applicable. The Consultant shall provide satisfactory evidence of compliance with this section upon request of the City.
341
55452.01100\31193624.5
4918-5684-3022 v2
EXHIBIT “D”

COMPENSATION
In full compensation for the Services rendered by the Consultant under the Agreement, the City shall pay the Consultant for actual work performed at the following rates:

Property Tax Services
Base Fix Fee: $5,250 per quarter, ($21,000 per year) to be adjusted annually by the California Consumer Price Index California All Urban Consumers index for all items as determined by the California Department of Industrial Relations as measured from February to February.

Contingent Fees: 25% of net tax revenues recovered for the City through audits performed by the consultant. Net tax revenues shall mean the taxes received by the City through consultant’s audit efforts.

Additional Services: Work requested by the City in writing in advance as beyond the scope of herein shall be charged on a time and materials basis. No work shall be performed without prior written approval by the City. Hourly rates for these services are as follows:

There are no reimbursable expenses under this Agreement.

Position Hourly Rate
Partner $250
Principal $225
Programmer $200
Associate $175
Senior Analyst $125
Analyst $90
Administrative $70
342
55452.01100\31193624.5
4918-5684-3022 v2
WORKER’S COMPENSATION INSURANCE CERTIFICATION

WORKERS' COMPENSATION DECLARATION
I hereby affirm under penalty of perjury one of the following declarations:
(ONE OF THE BOXES BELOW MUST BE CHECKED)
I have and will maintain a certificate of consent from the California Labor Commission to self-insure for workers' compensation, as provided for by Section 3700 of the Labor Code, for the performance of the work to be performed under this contract.

I have and will maintain workers' compensation insurance, as required by Section 3700 of the Labor Code, for the performance of the work to be performed under this contract. My workers' compensation insurance carrier and policy number are:

Carrier____________________________________________________ Policy Number______________________________________________ I certify that, in the performance of the work under this Agreement, I shall not employ any person in any manner so as to become subject to the workers' compensation laws of California, and I hereby agree to indemnify, defend, and hold harmless the City of San Clemente and all of its officials, employees, and agents from and against any and all claims, liabilities, and losses relating to personal injury or death, economic losses, and property damage arising out of my failure to provide such worker’s compensation insurance. I further agree that, if I should become subject to the workers' compensation provisions of Section 3700 of the Labor Code, I shall forthwith comply with those provisions.

WARNING: FAILURE TO SECURE WORKERS’ COMPENSATION

COVERAGE IS UNLAWFUL, AND SHALL SUBJECT AN EMPLOYER TO

CRIMINAL PENALTIES AND CIVIL FINES UP TO ONE HUNDRED THOUSAND DOLLARS ($100,000), IN ADDITION TO THE COST OF COMPENSATION, DAMAGES AS PROVIDED FOR IN SECTION 3706 OF THE LABOR CODE, INTEREST, AND ATTORNEY’S FEES.
343
55452.01100\31193624.5
4918-5684-3022 v2
Dated: ________________________, 20____
________________________________
(“CONSULTANT”)
By: ________________________________
________________________________
Title
________________________________
Address
________________________________
344