Agenda packet — San Clemente City Council, December 9, 2025 (part 3 of 3)

Payment. Payment for undisputed invoices is due within forty-five (45) days of the invoice date. We prefer to receive payments electronically. Our electronic payment information is available by contacting [email protected].
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Exhibit C

SERVICE LEVEL AGREEMENT
I. Agreement Overview
This SLA operates in conjunction with, and does not supersede or replace any part of, the Agreement. It outlines the information technology service levels related to the availability of the Tyler SaaS Services that you have requested us to provide. All other support services are documented in the Support Call Process.

This SLA does not apply to any Third-Party SaaS Services.

II. Definitions. Except as defined below, all defined terms have the meaning set forth in the Agreement.

Actual Attainment: The percentage of time the Tyler Software is available during a calendar month, calculated as follows: (Service Availability – Downtime) ÷ Service Availability.

Client Error Incident: Any service unavailability resulting from your applications, content or equipment, or the acts or omissions of any of your service users or third-party providers over whom we exercise no control.

Downtime: Those minutes during Service Availability, as defined below, when all users cannot launch, login, search or save primary data in the Tyler Software. Downtime does not include those instances in which only a Defect is present.

Emergency Maintenance Window: (1) maintenance that is required to patch a critical security vulnerability; (2) maintenance that is required to prevent an imminent outage of Service Availability; or (3) maintenance that is mutually agreed upon in writing by Tyler and the Client.

Planned Downtime: Downtime that occurs during a Standard or Emergency Maintenance window.

Service Availability: The total number of minutes in a calendar month that the Tyler Software is capable of receiving, processing, and responding to requests, excluding Planned Downtime, Client Error Incidents, denial of service attacks and Force Majeure. Service Availability only applies to Tyler Software being used in the production environment.

Standard Maintenance: Routine maintenance to the Tyler Software and infrastructure. Standard Maintenance is limited to five (5) hours per week.

III. Service Availability
a. Your Responsibilities
Whenever you experience Downtime, you must make a support call according to the procedures outlined in the Support Call Process. You will receive a support case number. b. Our Responsibilities
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When our support team receives a call from you that Downtime has occurred or is occurring, we will work with you to identify the cause of the Downtime (including whether it may be the result of Planned Downtime, a Client Error Incident, denial of service attack or Force Majeure). We will also work with you to resume normal operations.
c. Client Relief
Our targeted Attainment Goal is 100%. You may be entitled to credits as indicated in the Client Relief Schedule found below. Your relief credit is calculated as a percentage of the SaaS Fees paid for the calendar month.

In order to receive relief credits, you must submit a request through one of the channels listed in our Support Call Process within fifteen (15) days of the end of the applicable month. We will respond to your relief request within thirty (30) days of receipt.

The total credits confirmed by us will be applied to the SaaS Fee for the next billing cycle. Issuing of such credit does not relieve us of our obligations under the Agreement to correct the problem which created the service interruption.

Credits are only payable when Actual Attainment results in eligibility for credits in consecutive months and only for such consecutive months.

Client Relief Schedule
Actual Attainment Client Relief

99.99% - 99.70% Remedial action will be taken

99.69% - 98.50% 2% of SaaS Fees paid for applicable month

98.49% - 97.50% 4% of SaaS Fees paid for applicable month

97.49% - 96.50% 6% of SaaS Fees paid for applicable month

96.49% - 95.50% 8% of SaaS Fees paid for applicable month Below 95.50% 10% of SaaS Fees paid for applicable month * Notwithstanding language in the Agreement to the contrary, Recovery Point Objective is one (1) hour.

IV. Maintenance Notifications
We perform Standard Maintenance during limited windows that are historically known to be reliably low-traffic times. If and when maintenance is predicted to occur during periods of higher traffic, we will provide advance notice of those windows and will coordinate to the greatest extent possible with you.

Not all maintenance activities will cause application unavailability. However, if Tyler anticipates that activities during a Standard or Emergency Maintenance window may make the Tyler Software unavailable, we will provide advance notice, as reasonably practicable, that the Tyler Software will be unavailable during the maintenance window.
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Exhibit D
Third-Party Terms
DocOrigin Terms. Your use of Tyler Forms software and forms is subject to the DocOrigin End User License Agreement available for download here: https://eclipsecorp.us/eula/. By signing a Tyler Agreement or Order Form including Tyler forms software or forms, or accessing, installing, or using Tyler Forms software or forms, you agree that you have read, understood, and agree to such terms.

ThinPrint Terms. Your use of Tyler Forms software and forms is subject to the End User License Agreement terms for ThinPrint Engine, ThinPrint License Server, and Connected Gateway found here:
https://www.thinprint.com/en/legal-notes/eula/. By signing a Tyler Agreement or Order Form, or accessing, installing, or using Tyler Forms software or forms, you agree that you have read, understood, and agree to such terms.
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Exhibit E
Statement of Work
[Statement of Work to be inserted prior to Agreement execution.]

REMAINDER OF PAGE INTENTIONALLY LEFT BLANK
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San Clemente, CA
SOW from Tyler Technologies, Inc.
11/20/2025
Presented to:

City of San Clemente
100 Avenida Presidio
San Clemente, CA 92672
Contact:

Rich Boven
Email: [email protected]
1 Tyler Drive, Yarmouth, Maine 04096
Exhibit E
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Table of Contents
PART 1: EXECUTIVE SUMMARY............................................................................................................... 1 Project Overview............................................................................................................................. 1 Introduction ........................................................................................................................................ 1 Project Goals....................................................................................................................................... 1 Methodology....................................................................................................................................... 1 PART 2: PROJECT FOUNDATION ............................................................................................................. 3 Project Governance ......................................................................................................................... 3 Project Scope Control ...................................................................................................................... 4 Managing Scope and Project Change ................................................................................................. 4 Change Control ................................................................................................................................... 4 Change Request Management............................................................................................................ 4 Acceptance Process ......................................................................................................................... 6 Roles and Responsibilities................................................................................................................ 6 Tyler Roles & Responsibilities............................................................................................................. 6 Tyler Executive Manager............................................................................................................. 7 Tyler Implementation Manager.................................................................................................. 7 Tyler Project Manager................................................................................................................. 7 Tyler Implementation Consultant............................................................................................... 8 Tyler Sales ................................................................................................................................... 8 Tyler Technical Services.............................................................................................................. 8 Tyler Data Experts....................................................................................................................... 9 City Roles & Responsibilities............................................................................................................... 9 City Executive Sponsor................................................................................................................ 9 City Steering Committee............................................................................................................. 9 City Project Manager ................................................................................................................ 10 City Functional Leads ................................................................................................................ 11 City Power Users....................................................................................................................... 12 City End Users ........................................................................................................................... 12 City Technical Lead.................................................................................................................... 12 City Change Management Lead ................................................................................................ 13 PART 3: PROJECT PLAN........................................................................................................................... 14 Project Stages................................................................................................................................. 14 Initiate and Plan ................................................................................................................................ 15 Initial Coordination ................................................................................................................... 15 Project/Phase Planning............................................................................................................. 16 Exhibit E
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Infrastructure Planning ............................................................................................................. 17 Stakeholder Meeting................................................................................................................. 18 This work package is not applicable.......................................................................................... 19 Control Point 1: Initiate & Plan Stage Acceptance.................................................................... 19 Assess & Define................................................................................................................................. 19 Solution Orientation.................................................................................................................. 19 Current & Future State Analysis................................................................................................ 20 This work package is not applicable.......................................................................................... 21 Data Assessment....................................................................................................................... 21 Conversion Assessment ............................................................................................................ 23 Control Point 2: Assess & Define Stage Acceptance................................................................. 24 Prepare Solution ............................................................................................................................... 24 Initial System Deployment........................................................................................................ 24 Configuration ............................................................................................................................ 25 Process Refinement .................................................................................................................. 26 Conversion Delivery .................................................................................................................. 28 This work package is not applicable.......................................................................................... 29 Control Point 3: Prepare Solution Stage Acceptance................................................................ 29 Production Readiness ....................................................................................................................... 30 Solution Validation.................................................................................................................... 30 Go-Live Readiness..................................................................................................................... 31 End User Training...................................................................................................................... 32 Control Point 4: Production Readiness Stage Acceptance........................................................ 33 Production......................................................................................................................................... 33 Go-Live ...................................................................................................................................... 33 Transition to Client Services...................................................................................................... 35 Post Go-Live Activities............................................................................................................... 36 Control Point 5: Production Stage Acceptance......................................................................... 36 Close.................................................................................................................................................. 37 Phase Closeout.......................................................................................................................... 37 Project Closeout........................................................................................................................ 38 Control Point 6: Close Stage Acceptance.................................................................................. 39 General Assumptions......................................................................................................................39 Project............................................................................................................................................... 39 Organizational Change Management............................................................................................... 40 Resources and Scheduling ................................................................................................................ 40 Data................................................................................................................................................... 40 Facilities............................................................................................................................................. 41 Glossary .........................................................................................................................................42 PART 4: APPENDICES ............................................................................................................................... 45 Conversion .....................................................................................................................................45 Enterprise ERP Conversion Summary ............................................................................................... 45 Exhibit E
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Accounting ................................................................................................................................ 45 Accounts Payable ...................................................................................................................... 45 Project Accounting.................................................................................................................... 45 Purchase Orders........................................................................................................................ 46 Human Resources Management............................................................................................... 46 General Billing ........................................................................................................................... 47 Utility Billing .............................................................................................................................. 47 Additional Appendices................................................................................................................49 This work package is not applicable.................................................................................................. 49 Project Timeline..........................................................................................................................50 ERP Project Timeline ......................................................................................................................... 50 This work package is not applicable.................................................................................................. 51

Exhibit E
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Part 1: Executive Summary
Project Overview
Introduction
Tyler Technologies (“Tyler”) is the largest and most established provider of integrated software and technology services focused solely on the public sector. Tyler’s end-to-end solutions empower public sector entities including local, state, provincial and federal government, to operate more efficiently and connect more transparently with their constituents and with each other. By connecting data and processes across disparate systems, Tyler’s solutions transform how clients gain actionable insights that solve problems in their communities.

Project Goals
This Statement of Work (“SOW”) documents the methodology, implementation stages, activities, and roles and responsibilities, and project scope listed in the Investment Summary of the SaaS Agreement between Tyler and the City (collectively the “Project”).

The overall goals of the project are to:
 Successfully implement the contracted scope on time and on budget  Increase operational efficiencies and empower users to be more productive  Improve accessibility and responsiveness to external and internal customer needs  Overcome current challenges and meet future goals
Methodology
This is accomplished by the City and Tyler working as a partnership and Tyler utilizing its depth of implementation experience. While each Project is unique, all will follow Tyler’s six-stage methodology. Each of the six stages is comprised of multiple work packages, and each work package includes a narrative description, objectives, tasks, inputs, outputs/deliverables, assumptions, and a responsibility matrix.

Tailored specifically for Tyler’s public sector clients, the project methodology contains Stage Acceptance Control Points throughout each Phase to ensure adherence to scope, budget, timeline controls, effective communications, and quality standards. Clearly defined, the project methodology repeats consistently across Phases, and is scaled to meet the City’s complexity and organizational needs.

Exhibit E
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The methodology adapts to both single-phase and multiple-phase projects.

To achieve Project success, it is imperative that both the City and Tyler commit to including the necessary leadership and governance. During each stage of the Project, it is expected that the City and Tyler Project teams work collaboratively to complete tasks. An underlying principle of Tyler’s Implementation process is to employ an iterative model where the City’s business processes are assessed, configured, validated, and refined cyclically in line with the project budget. This approach is used in multiple stages and work packages as illustrated in the graphic below.

The delivery approach is systematic, which reduces variability and mitigates risks to ensure Project success. As illustrated, some stages, along with work packages and tasks, are intended to be overlapping by nature to complete the Project efficiently and effectively.

Exhibit E
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Part 2: Project Foundation
Project Governance
Project governance is the management framework within which Project decisions are made. The role of Project governance is to provide a decision-making approach that is logical, robust, and repeatable. This allows organizations to have a structured approach for conducting its daily business in addition to project related activities.

This section outlines the resources required to meet the business needs, objectives, and priorities for the Project, communicate the goals to other Project participants, and provide support and guidance to accomplish these goals. Project governance defines the structure for escalation of issues and risks, Change Control review and authority, and Organizational Change Management activities. Throughout the Statement of Work Tyler has provided RACI Matrices for activities to be completed throughout the implementation which will further outline responsibilities of different roles in each stage. Further refinement of the governance structure, related processes, and specific roles and responsibilities occurs during the Initiate & Plan Stage.

The chart below illustrates an overall team perspective where Tyler and the City collaborate to resolve Project challenges according to defined escalation paths. If project managers do not possess authority to determine a solution, resolve an issue, or mitigate a risk, Tyler implementation management and the City Steering Committee become the escalation points to triage responses prior to escalation to the City and Tyler executive sponsors. As part of the escalation process, each Project governance tier presents recommendations and supporting information to facilitate knowledge transfer and issue resolution. The City and Tyler executive sponsors serve as the final escalation point.

Exhibit E
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Project Scope Control
Managing Scope and Project Change
Project Management governance principles contend that there are three connected constraints on a Project:
budget, timeline, and scope. These constraints, known as the “triple constraints” or project management triangle, define budget in terms of financial cost, labor costs, and other resource costs. Scope is defined as the work performed to deliver a product, service or result with the specified features and functions, while time is simply defined as the schedule. The Triple Constraint theory states that if you change one side of the triangle, the other two sides must be correspondingly adjusted. For example, if the scope of the Project is increased, cost and time to complete will also need to increase. The Project and executive teams will need to remain cognizant of these constraints when making impactful decisions to the Project. A simple illustration of this triangle is included here, showing the connection of each item and their relational impact to the overall Scope.

A pillar of any successful project is the ability to properly manage scope while allowing the appropriate level of flexibility to incorporate approved changes. Scope and changes within the project will be managed using the change control process outlined in the following section.

Change Control
It may become necessary to change the scope of this Project due to unforeseeable circumstances (e.g., new constraints or opportunities are discovered). This Project is being undertaken with the understanding that Project scope, schedule, and/or cost may need to change to produce optimal results for stakeholders.

Changes to contractual requirements will follow the change control process specified in the final contract, and as described below.

Change Request Management
Should the need for a change to Project scope, schedule, and/or cost be identified during the Project, the change will be brought to the attention of the Steering Committee and an assessment of the change will occur. While such changes may result in additional costs and delays relative to the schedule, some changes may result in less cost to the City; for example, the City may decide it no longer needs a deliverable originally defined in the Project. The Change Request will include the following information:

Exhibit E
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 The nature of the change.
 A good faith estimate of the additional cost or associated savings to the City, if any.  The timetable for implementing the change.
 The effect on and/or risk to the schedule, resource needs or resource responsibilities.

The City will use its good faith efforts to either approve or disapprove any Change Request within ten (10) Business Days (or other period as mutually agreeable between Tyler and the City). Any changes to the Project scope, budget, or timeline must be documented and approved in writing using a Change Request form. These changes constitute a formal amendment to the Statement of Work and will supersede any conflicting term in the Statement of Work.

Exhibit E
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Acceptance Process
The implementation of a Project involves many decisions to be made throughout its lifecycle. Decisions will vary from higher level strategy decisions to smaller, detailed Project level decisions. It is critical to the success of the Project that each City office or department designates specific individuals for making decisions on behalf of their offices or departments.

Both Tyler and the City will identify representative project managers. These individuals will represent the interests of all stakeholders and serve as the primary contacts between the two organizations.

The coordination of gaining City feedback and approval on Project deliverables will be critical to the success of the Project. The City project manager will strive to gain deliverable and decision approvals from all authorized City representatives. Given that the designated decision-maker for each department may not always be available, there must be a designated proxy for each decision point in the Project. Assignment of each proxy will be the responsibility of the leadership from each City department. The proxies will be named individuals that have the authorization to make decisions on behalf of their department.

The following process will be used for accepting Deliverables and Control Points:
 The City shall have five (5) business days from the date of delivery, or as otherwise mutually agreed upon by the parties in writing, to accept each Deliverable or Control Point. If the City does not provide acceptance or acknowledgement within five (5) business days, or the otherwise agreed upon timeframe, not to be unreasonably withheld, Tyler deems the Deliverable or Control Point as accepted.
 If the City does not agree the Deliverable or Control Point meets requirements, the City shall notify Tyler project manager(s), in writing, with reasoning within five (5) business days, or the otherwise agreed-upon timeframe, not to be unreasonably withheld, of receipt of the Deliverable.  Tyler shall address any deficiencies and redeliver the Deliverable or Control Point. The City shall then have two (2) business days from receipt of the redelivered Deliverable or Control Point to accept or again submit written notification of reasons for rejecting the milestone. If the City does not provide acceptance within two (2) business days, or the otherwise agreed upon timeframe, not to be unreasonably withheld, Tyler deems the Deliverable or Control Point as accepted.

Roles and Responsibilities
The following defines the roles and responsibilities of each Project resource for the City and Tyler. Roles and responsibilities may not follow the organizational chart or position descriptions at the City, but are roles defined within the Project. It is common for individual resources on both the Tyler and City project teams to fill multiple roles. Similarly, it is common for some roles to be filled by multiple people.

Tyler Roles & Responsibilities
Tyler assigns a project manager prior to the start of each Phase of the Project (some Projects may only be one Phase in duration). Additional Tyler resources are assigned as the schedule develops and as needs arise.

Exhibit E
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Tyler Executive Manager
Tyler executive management has indirect involvement with the Project and is part of the Tyler escalation process. This team member offers additional support to the Project team and collaborates with other Tyler department managers as needed to escalate and facilitate implementation Project tasks and decisions.  Provides clear direction for Tyler staff on executing on the Project Deliverables to align with satisfying the City’s overall organizational strategy.
 Authorizes required Project resources.
 Resolves all decisions and/or issues not resolved at the implementation management level as part of the escalation process.
 Acts as the counterpart to the City’s executive sponsor.

Tyler Implementation Manager
 Tyler implementation management has indirect involvement with the Project and is part of the Tyler escalation process. The Tyler project managers consult implementation management on issues and outstanding decisions critical to the Project. Implementation management works toward a solution with the Tyler Project Manager or with City management as appropriate. Tyler executive management is the escalation point for any issues not resolved at this level.  Assigns Tyler Project personnel.
 Provides support for the Project team.
 Provides management support for the Project to ensure it is staffed appropriately and staff have necessary resources.
 Monitors Project progress including progress towards agreed upon goals and objectives.

Tyler Project Manager
 The Tyler project manager(s) provides oversight of the Project, coordination of Tyler resources between departments, management of the Project budget and schedule, effective risk, and issue management, and is the primary point of contact for all Project related items. As requested by the City, the Tyler Project Manager provides regular updates to the City Steering Committee and other Tyler governance members. Tyler Project Manager’s role includes responsibilities in the following areas:

Contract Management
 Validates contract compliance throughout the Project.  Ensures Deliverables meet contract requirements.
 Acts as primary point of contact for all contract and invoicing questions.  Prepares and presents contract milestone sign-offs for acceptance by the City project manager(s).  Coordinates Change Requests, if needed, to ensure proper Scope and budgetary compliance.

Planning
 Delivers project planning documents.
 Defines Project tasks and resource requirements.
 Develops initial Project schedule and Project Management Plan.  Collaborates with the City project manager(s) to plan and schedule Project timelines to achieve ontime implementation.

Exhibit E
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Implementation Management
 Tightly manages Scope and budget of Project to ensure Scope changes and budget planned versus actual are transparent and handled effectively and efficiently.  Establishes and manages a schedule and Tyler resources that properly support the Project Schedule and are also in balance with Scope/budget.
 Establishes risk/issue tracking/reporting process between the City and Tyler and takes all necessary steps to proactively mitigate these items or communicate with transparency to the City any items that may impact the outcomes of the Project.
 Collaborates with the City’s project manager(s) to establish key business drivers and success indicators that will help to govern Project activities and key decisions to ensure a quality outcome of the project.
 Collaborates with the City’s project manager(s) to set a routine communication plan that will aide all Project team members, of both the City and Tyler, in understanding the goals, objectives, status, and health of the Project.

Resource Management
 Acts as liaison between Project team and Tyler manager(s).  Identifies and coordinates all Tyler resources across all applications, Phases, and activities including development, forms, installation, reports, implementation, and billing.  Provides direction and support to Project team.
 Manages the appropriate assignment and timely completion of tasks as defined in the Project Schedule, task list, and Go-Live Checklist.
 Assesses team performance and adjusts as necessary.
 Consulted on in Scope 3rd party providers to align activities with ongoing Project tasks.

Tyler Implementation Consultant
 Completes tasks as assigned by the Tyler project manager(s).  Documents activities for services performed by Tyler.  Guides the City through software validation process following configuration.  Assists during Go-Live process and provides support until the City transitions to Client Services.  Facilitates training sessions and discussions with the City and Tyler staff to ensure adequate discussion of the appropriate agenda topics during the allotted time.  May provide conversion review and error resolution assistance.

Tyler Sales
 Supports Sales to Implementation knowledge transfer during Initiate & Plan.  Provides historical information, as needed, throughout implementation.  Participates in pricing activities if additional licensing and/or services are needed.

Tyler Technical Services
 Maintains Tyler infrastructure requirements and design document(s).  Involved in system infrastructure planning/review(s).  Provides first installation of licensed software with initial database on servers.  Supports and assists the project team with technical/environmental issues/needs.  Deploys Tyler products.

Exhibit E
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Tyler Data Experts
 Validates that customer data files are in proper format.  Develops customized conversion programs, as necessary, to convert Legacy System data into the Tyler database for production use according to defined mapping.  Provides error Reports on unsupported data conditions and the merging or normalization of data fields.
 Assists the City with understanding and interpreting error Reports.  Performs changes and corrections to customized conversion programs as the City completes the data review.
 Provides conversion consulting and mapping assistance.

City Roles & Responsibilities
City resources will be assigned prior to the start of each Phase of the Project. One person may be assigned to multiple Project roles.

City Executive Sponsor
The City executive sponsor provides support to the Project by providing strategic direction and communicating key issues about the Project and its overall importance to the organization. When called upon, the executive sponsor also acts as the final authority on all escalated Project issues. The executive sponsor engages in the Project, as needed, to provide necessary support, oversight, guidance, and escalation, but does not participate in day-to-day Project activities. The executive sponsor empowers the City steering committee, project manager(s), and functional leads to make critical business decisions for the City.  Champions the project at the executive level to secure buy-in.  Authorizes required project resources.
 Actively participates in organizational change communications.

City Steering Committee
The City steering committee understands and supports the cultural change necessary for the Project and fosters an appreciation for the Project’s value throughout the organization. The steering committee oversees the City project manager and Project through participation in regular internal meetings. The City steering committee remains updated on all Project progress, Project decisions, and achievement of Project milestones. The City steering committee also serves as primary level of issue resolution for the Project.  Works to resolve all decisions and/or issues not resolved at the project manager level as part of the escalation process.
 Attends all scheduled steering committee meetings.
 Provides support for the project team.
 Assists with communicating key project messages throughout the organization.  Prioritizes the project within the organization.
 Ensures the project staffed appropriately and that staff have necessary resources.  Monitors project progress including progress towards agreed upon goals and objectives.  Has the authority to approve or deny changes impacting the following areas:
o Cost
o Scope
o Schedule
Exhibit E
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o Project Goals
o City Policies
o Needs of other client projects
City Project Manager
The City shall assign project manager(s) prior to the start of this project with overall responsibility and authority to make decisions related to Project Scope, scheduling, and task assignment. The City Project Manager should communicate decisions and commitments to the Tyler project manager(s) in a timely and efficient manner. When the City project manager(s) do not have the knowledge or authority to make decisions, he or she engages the necessary resources to participate in discussions and make decisions in a timely fashion to avoid Project delays. The City project manager(s) are responsible for reporting to the City steering committee and determining appropriate escalation points.

Contract Management
 Validates contract compliance throughout the project.  Ensures that invoicing and Deliverables meet contract requirements.  Acts as primary point of contact for all contract and invoicing questions. Collaborates on and approves Change Requests, if needed, to ensure proper scope and budgetary compliance.

Planning
 Reviews and accepts project planning documents.
 Defines project tasks and resource requirements for the City project team.  Collaborates in the development and approval of the project schedule.  Collaborates with Tyler project manager(s) to plan and schedule project timelines to achieve on-time implementation.

Implementation Management
 Tightly manages project budget and scope.
 Collaborates with Tyler project manager(s) to establish a process and approval matrix to ensure that scope changes and budget (planned versus actual) are transparent and handled effectively and efficiently.
 Collaborates with Tyler project manager to establish and manage a schedule and resource plan that properly supports the project schedule as a whole and is also in balance with scope and budget.  Collaborates with Tyler project manager(s) to establish risk and issue tracking and reporting process between the City and Tyler and takes all necessary steps to proactively mitigate these items or communicate with transparency to Tyler any items that may impact the outcomes of the project.  Collaborates with Tyler project manager(s) to establish key business drivers and success indicators that will help to govern project activities and key decisions to ensure a quality outcome of the project.  Routinely communicates with both the City staff and Tyler, aiding in the understanding of goals, objectives, current status, and health of the project by all team members.  Manages the requirements gathering process and ensure timely and quality business requirements are being provided to Tyler.

Resource Management
 Acts as liaison between project team and stakeholders.

Exhibit E
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 Identifies and coordinates all City resources across all modules, phases, and activities including data conversions, forms design, hardware and software installation, reports building, and satisfying invoices.
 Provides direction and support to project team.
 Builds partnerships among the various stakeholders, negotiating authority to move the project forward.
 Manages the appropriate assignment and timely completion of tasks as defined.  Assesses team performance and takes corrective action, if needed.  Provides guidance to City technical teams to ensure appropriate response and collaboration with Tyler Technical Support Teams to ensure timely response and appropriate resolution.  Owns the relationship with in-Scope 3rd party providers and aligns activities with ongoing project tasks.
 Ensures that users have appropriate access to Tyler project toolsets as required.  Conducts training on proper use of toolsets.
 Validates completion of required assignments using toolsets.

City Functional Leads
 Makes business process change decisions under time sensitive conditions.  Communicates existing business processes and procedures to Tyler consultants.  Assists in identifying business process changes that may require escalation.  Contributes business process expertise for Current & Future State Analysis.  Identifies and includes additional subject matter experts to participate in Current & Future State Analysis.
 Validates that necessary skills have been retained by end users.  Provides End Users with dedicated time to complete required homework tasks.  Acts as an ambassador/champion of change for the new process and provide business process change support.
 Identifies and communicates any additional training needs or scheduling conflicts to the City project manager.
 Actively participates in all aspects of the implementation, including, but not limited to, the following key activities:
o Task completion
o Stakeholder Meeting
o Project Management Plan development
o Schedule development
o Maintenance and monitoring of risk register
o Escalation of issues
o Communication with Tyler project team
o Coordination of City resources
o Attendance at scheduled sessions
o Change management activities
o Modification specification, demonstrations, testing and approval assistance o Data analysis assistance
o Decentralized end user training
o Process testing
o Solution Validation
Exhibit E
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City Power Users
 Participate in project activities as required by the project team and project manager(s).  Provide subject matter expertise on the City business processes and requirements.  Act as subject matter experts and attend Current & Future State Analysis sessions as needed.  Attend all scheduled training sessions.
 Participate in all required post-training processes as needed throughout project.  Test all application configuration to ensure it satisfies business process requirements.  Become application experts.
 Participate in Solution Validation.
 Adopt and support changed procedures.
 Complete all deliverables by the due dates defined in the project schedule.  Demonstrate competency with Tyler products processing prior to Go-live.  Provide knowledge transfer to the City staff during and after implementation.  Participate in conversion review and validation.

City End Users
 Attend all scheduled training sessions.
 Become proficient in application functions related to job duties.  Adopt and utilize changed procedures.
 Complete all deliverables by the due dates defined in the project schedule.  Utilize software to perform job functions at and beyond Go-live.

City Technical Lead
 Coordinates updates and releases with Tyler as needed.  Coordinates the copying of source databases to training/testing databases as needed for training days.
 Coordinates and adds new users, printers and other peripherals as needed.  Validates that all users understand log-on process and have necessary permission for all training sessions.
 Coordinates interface development for City third party interfaces.  Develops or assists in creating reports as needed.
 Ensures on-site system meets specifications provided by Tyler.  Assists with software installation as needed.
 Extracts and transmits conversion data and control reports from the City’s legacy system per the conversion schedule set forth in the project schedule.

City Upgrade Coordination
 Becomes familiar with the software upgrade process and required steps.  Becomes familiar with Tyler’s releases and updates.
 Utilizes Tyler resources to stay abreast of the latest Tyler releases and updates, as well as the latest helpful tools to manage the City’s software upgrade process.  Assists with the software upgrade process during implementation.  Manages software upgrade activities post-implementation.  Manages software upgrade plan activities.
 Coordinates software upgrade plan activities with City and Tyler resources.  Communicates changes affecting users and department stakeholders.

Exhibit E
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San Clemente, CA
Tyler Technologies, Inc. Page | 13
 Obtains department stakeholder acceptance to upgrade production environment.

City Change Management Lead
 Validates that users receive timely and thorough communication regarding process changes.  Provides coaching to supervisors to prepare them to support users through the project changes.  Identifies the impact areas resulting from project activities and develops a plan to address them proactively.
 Identifies areas of resistance and develops a plan to reinforce the change.  Monitors post-production performance and new process adherence.

Exhibit E
552

San Clemente, CA
Tyler Technologies, Inc. Page | 14
Part 3: Project Plan
Project Stages
Work Breakdown Structure
The Work Breakdown Structure (WBS) is a hierarchical representation of a Project or Phase broken down into smaller, more manageable components. The top-level components are called “Stages” and the second level components are called “Work Packages”. The work packages, shown below each stage, contain the high-level work to be done. The detailed Project Schedule, developed during Project/Phase Planning and finalized during subsequent stages, lists the tasks to be completed within each work package. Each stage ends with a “Control Point”, confirming the work performed during that stage of the Project has been accepted by the City.

Work Breakdown Structure (WBS)

1. Initiate &
Plan

2. Assess &
Define

3. Prepare
Solution

4. Production
Readiness 5. Production 6. Close

1.1 Initial
Coordination

2.1 Solution
Orientation

3.1 Initial System
Deployment

4.1 Solution
Validation 5.1 Go Live 6.1 Phase Close Out

1.2 Project/Phase
Planning

2.2 Current & Future
State Analysis 3.2 Configuration 4.2 Go Live Readiness

5.2 Transition to
Client Services

6.2 Project Close
Out

1.3 Infrastructure
Planning

2.3 Modification
Analysis

3.3 Process
Refinement

4.3 End User
Training

5.3 Post Go Live
Activities

1.4 Stakeholder
Meeting

2.4 Conversion
Assessment

3.4 Conversion
Delivery

1.5 GIS Planning* 2.5 Data Assessment 3.5 Data Delivery

3.6 Modifications*

*Items noted with an asterisk in the graphic above relate to specific products and services. If those products and services are not included in the scope of the contract, these specific work packages will be noted as “This work package is not applicable” in Section 6 of the Statement of Work.

Exhibit E
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San Clemente, CA
Tyler Technologies, Inc. Page | 15
Initiate and Plan
The Initiate and Plan stage involves Project initiation, infrastructure, and planning. This stage creates a foundation for the Project by identifying and establishing sequence and timing for each Phase as well as verifying scope for the Project. This stage will be conducted at the onset of the Project, with a few unique items being repeated for the additional Phases as needed.

Initial Coordination
Prior to Project commencement, Tyler management assigns project manager(s). Additional Project resources will be assigned later in the Project as a Project schedule is developed. Tyler provides the City with initial Project documents used to gather names of key personnel, their functional role as it pertains to the Project, as well as any blackout dates to consider for future planning. the City gathers the information requested by the provided deadline ensuring preliminary planning and scheduling can be conducted moving the Project forward in a timely fashion. Internally, the Tyler Project Manager(s) coordinate with sales to ensure transfer of vital information from the sales process prior to scheduling a Project Planning Meeting with the City’s team. During this step, Tyler will work with the City to establish the date(s) for the Project and Phase Planning session.

Objectives:
 Formally launch the project.
 Establish project governance.
 Define and communicate governance for Tyler.
 Identify City project team.

STAGE 1 Initial Coordination
Tyler City
RACI MATRIX KEY:

San Clemente, CA
Tyler Technologies, Inc. Page | 16
Inputs Contract documents
Statement of Work
Outputs/Deliverables Working initial project documents
Project portal
Work package assumptions:
 Project activities begin after the agreement has been fully executed.

Project/Phase Planning
Project and Phase planning provides an opportunity to review the contract, software, data conversions and services purchased, identify applications to implement in each Phase (if applicable), and discuss implementation timeframes.

During this work package Tyler will work with the City to coordinate and plan a formal Project planning meeting(s). This meeting signifies the start of the Project and should be attended by all City Project team members and the Tyler Project Manager. The meeting provides an opportunity for Tyler to introduce its implementation methodology, terminology, and Project management best practices to the City’s Project Team. This will also present an opportunity for project managers and Project sponsors to begin to discuss Project communication, metrics, status reporting and tools to be used to measure Project progress and manage change.

Tyler will work with the City Project Team to prepare and deliver the Project Management Plan as an output of the planning meeting. This plan will continue to evolve and grow as the Project progresses and will describe how the project will be executed, monitored, and controlled.

During project planning, Tyler will introduce the tools that will be used throughout the implementation. Tyler will familiarize the City with these tools during project planning and make them available for review and maintenance as applicable throughout the project. Some examples are Solution validation plan, issue log, and go-live checklist.

STAGE 1 Project/Phase Planning
Tyler City
RACI MATRIX KEY:

A R I C C I
Exhibit E
555

San Clemente, CA
Tyler Technologies, Inc. Page | 17
Develop Project
Management Plan A R I C C I
Develop initial
project schedule A R I I I I I I C C I I C I
Inputs Contract documents
Statement of Work
Guide to Starting Your Project
Outputs / Deliverables Acceptance Criteria [only] for Deliverables Project Management Plan Delivery of document
Project Operational Plan Delivery of document
Initial Project Schedule City provides acceptance of schedule based on resource availability, project budget, and
goals.

Work package assumptions:
 City has reviewed and completed the Guide to Starting Your Project document.

Infrastructure Planning
Procuring required hardware and setting it up properly is a critical part of a successful implementation. Tyler will be responsible for building the environments for a hosted/SaaS deployment, unless otherwise identified in the Agreement. The City is responsible for the installation, setup and maintenance of all peripheral devices.

Objectives:
 Ensure the City’s infrastructure meets Tyler’s application requirements.  Ensure the City’s infrastructure is scheduled to be in place and available for use on time.

STAGE 1 Infrastructure Planning
Tyler City
RACI MATRIX KEY:

A R C C C C
Schedule
Environment
Availability

A R C I
Exhibit E
556

San Clemente, CA
Tyler Technologies, Inc. Page | 18
Inputs Initial Infrastructure Requirements
Outputs /
Deliverables
Acceptance Criteria [only] for Deliverables
Completed Infrastructure Requirements Delivery of Requirements Stakeholder Meeting
Communication of the Project planning outcomes to the City Project team, executives and other key stakeholders is vital to Project success. The Stakeholder meeting is a strategic activity to inform, engage, gain commitment, and instill confidence in the City team. During the meeting, the goals and objectives of the Project will be reviewed along with detail on Project scope, implementation methodology, roles and responsibilities, Project timeline and schedule, and keys to Project success.

Objectives:
 Formally present and communicate the project activities and timeline.  Communicate project expectations.

STAGE 1 Stakeholder Meeting
Tyler City
RACI MATRIX KEY:

I A R I I I I C I
Review Stakeholder
Meeting
Presentation

I C A R C
Perform
Stakeholder
Meeting
Presentation

I A R I I I I C I I I I I I
Inputs Agreement
SOW
Project Management Plan
Outputs /
Deliverables
Acceptance Criteria [only] for Deliverables
Stakeholder Meeting Presentation
Exhibit E
557

San Clemente, CA
Tyler Technologies, Inc. Page | 19
Work package assumptions:
 None
This work package is not applicable.

Control Point 1: Initiate & Plan Stage Acceptance
Acceptance criteria for this stage includes completion of all criteria listed below.

Note: Advancement to the Assess & Define stage is not dependent upon Tyler’s receipt of this stage acceptance.

Initiate & Plan Stage Deliverables:
 Project Management Plan
 Initial Project Schedule
Initiate & Plan stage acceptance criteria:
 All stage deliverables accepted based on acceptance criteria previously defined  Project governance defined
 Project portal made available to the City
 Stakeholder meeting complete
Assess & Define
The Assess & Define stage will provide an opportunity to gather information related to current City business processes. This information will be used to identify and define business processes utilized with Tyler software.

The City collaborates with Tyler providing complete and accurate information to Tyler staff and assisting in analysis, understanding current workflows and business processes.

Solution Orientation
The Solution Orientation provides the Project stakeholders a high-level understanding of the solution functionality prior to beginning the current and future state analysis. The primary goal is to establish a foundation for upcoming conversations regarding the design and configuration of the solution.

Tyler utilizes a variety of tools for the Solution Orientation, focusing on City team knowledge transfer such as:
eLearning, documentation, or walkthroughs. The City team will gain a better understanding of the major processes and focus on data flow, the connection between configuration options and outcome, integration, and terminology that may be unique to Tyler’s solution.

Objectives:
 Provide a basic understanding of system functionality.  Prepare the City for current and future state analysis.

Exhibit E
558

San Clemente, CA
Tyler Technologies, Inc. Page | 20
STAGE 2 Solution Orientation
Tyler City
RACI MATRIX KEY:

The City and Tyler will evaluate current state processes, options within the new software, pros and cons of each based on current or desired state and make decisions about the future state configuration and processing. This may occur before or within the same timeframe as the configuration work package. The options within the new software will be limited to the scope of this implementation and will make use of standard Tyler functionality.

The City will adopt the existing Tyler solution wherever possible to avoid project schedule and quality risk from over customization of Tyler products. It is the City’s responsibility to verify that in-scope requirements are being met throughout the implementation if functional requirements are defined as part of the contract.

The following guidelines will be followed when evaluating if a modification to the product is required:
 A reasonable business process change is available.
 Functionality exists which satisfies the requirement.  Configuration of the application satisfies the requirement.  An in-scope modification satisfies the requirement.

Requirements that are not met will follow the agreed upon change control process and can have impacts on the project schedule, scope, budget, and resource availability.

STAGE 2 Current & Future State Analysis
Tyler City
Exhibit E
559

San Clemente, CA
Tyler Technologies, Inc. Page | 21
RACI MATRIX KEY:

A R C C C I I I I I
Inputs City current state documentation
Solution Orientation completion
Outputs /
Deliverables
Acceptance Criteria [only] for Deliverables
Documentation that describes future-state
decisions and configuration options to support
future-state decisions.

Delivery of document
Work package assumptions:
 City attendees possess sufficient knowledge and authority to make future state decisions.  The City is responsible for any documentation of current state business processes.  The City can effectively communicate current state processes.

This work package is not applicable.

Data Assessment
Given the completion of the Current & Future State Analysis, the Data Assessment will provide the implementation team the design for data delivery prior to configuration. The data Assessment will also allow the Tyler and the City teams to identify the data that will be configured within the Tyler System. The team will develop and map out dataset structures to ensure that data is structured in a way that allows maximum utility.

The teams will review any existing data publish and metadata standards for the City’s current data program to determine any necessary adjustments or configuration needs. Finally, the implementation team develops Exhibit E
560

San Clemente, CA
Tyler Technologies, Inc. Page | 22
data workflows to map data from the source system(s) into the Tyler system, discussing any additional data requirements as needed.

Objectives:
 Communicate a common understanding of the project goals with respect to data.  Ensure complete and accurate source data is available for review/transfer.  If source data is a Tyler legacy system, Tyler performs the data mappings. If source data is from a third-party, client is responsible for mapping the data from the source to the Tyler system.  Document the data conversion/loading approach.

STAGE 2 Data Conversion Assessment
Tyler City
RACI MATRIX KEY:

R = Responsible
A = Accountable
C = Consulted
I = Informed
Executive ManagerImplementation ManagerProject ManagerImplementation ConsultantData ExpertsModification ServicesTechnical ServicesClient ServicesExecutive SponsorSteering CommitteeProject ManagerFunctional LeadsChange Management LeadsSubject Matter Experts (Power Users)Department HeadsEnd UsersTechnical Leads Extract Data from
Source Systems A R I C
Complete Data
Analysis/Mapping A R C C I C C I
Review and Scrub
Source Data I I I A R C I
Build/Update Data
Conversion Plan R C C C I I I I
Inputs City Source data
City Source data Documentation (if available)
Outputs /
Deliverables
Acceptance Criteria [only] for Deliverables
Data Conversion Plan built/updated (if
applicable}
City Acceptance of Data Conversion Plan, if
Applicable
City acceptance of Solution Design
Document
Work package assumptions:
 If the source data is a Tyler system Tyler's Conversion Engineers extract and map the data into the standard Enterprise ERP conversion format. If the source data is from a third-party the client will provide Tyler with the data in a mutually agreed upon format.

Exhibit E
561

San Clemente, CA
Tyler Technologies, Inc. Page | 23
 Tyler will work with the City representatives to identify business rules before writing the conversion.  City subject matter experts and resources most familiar with the current data will be involved in the data conversion planning effort.

Conversion Assessment
Data Conversions are a major effort in any software implementation. Tyler’s conversion tools facilitate the predictable, repeatable conversion process that is necessary to support a successful transition to the Tyler system. The first step in this process is to perform an assessment of the existing (“legacy”) system(s), to better understand the source data, risks, and options available. Once the data has been analyzed, the plan for data conversion is completed and communicated to the appropriate stakeholders.

STAGE 2 Data Conversion Assessment
Tyler City
RACI MATRIX KEY:

Exhibit E
562

San Clemente, CA
Tyler Technologies, Inc. Page | 24
 If the source data is a Tyler system Tyler's Conversion Engineers extract and map the data into the standard Enterprise ERP conversion format. If the source data is from a third-party the client will provide Tyler with the data in a mutually agreed upon format.  Tyler will work with the City representatives to identify business rules before writing the conversion.  City subject matter experts and resources most familiar with the current data will be involved in the data conversion planning effort.

Control Point 2: Assess & Define Stage Acceptance
Acceptance criteria for this Stage includes completion of all criteria listed below.

Note: Advancement to the Prepare Solution Stage is dependent upon Tyler’s receipt of the Stage Acceptance.

Assess & Define Stage Deliverables:
 Documentation of future state decisions and configuration options to support future state decisions.  Modification specification document.

Assess & Define Stage Acceptance Criteria:
 All stage deliverables accepted based on criteria previously defined.  Solution Orientation is delivered.
 Conversion data extracts are received by Tyler.
 Data conversion plan built.

Prepare Solution
During the Prepare Solution stage, information gathered during the Initiate & Plan and Assess & Define stages will be used to install and configure the Tyler software solution. Software configuration will be validated by the City against future state decisions defined in previous stages and processes refined as needed to ensure business requirements are met.

Initial System Deployment
The timely availability of the Tyler Solution is important to a successful Project implementation. The success and timeliness of subsequent work packages are contingent upon the initial system deployment of Tyler Licensed Software on an approved network and infrastructure. Delays in executing this work package can affect the project schedule.

Objectives:
 All licensed software is installed and operational.
 The City can access the software.

STAGE 3 Initial System Deployment (Hosted/SaaS)*
Tyler City
Exhibit E
563

San Clemente, CA
Tyler Technologies, Inc. Page | 25
RACI MATRIX KEY:

A R I C
Install Licensed
Software on City
Devices (if
applicable)

I C A R
Tyler System
Administration
Training (if
applicable)

A R I C
Outputs /
Deliverables
Acceptance Criteria [only] for Deliverables
Licensed Software is Installed on the Server(s) Software is accessible Licensed Software is Installed on City Devices
(if applicable)
Software is accessible
Installation Checklist/System Document
Work package assumptions:
 The most current available version of the Tyler Licensed Software will be installed.  The City will provide network access for Tyler modules, printers, and Internet access to all applicable City and Tyler Project staff.

Configuration
The purpose of Configuration is to prepare the software product for validation.

Tyler staff collaborates with the City to complete software configuration based on the outputs of the future state analysis performed during the Assess and Define Stage. The City collaborates with Tyler staff iteratively to validate software configuration.

Objectives:
 Software is ready for validation.
 Educate the City Power User how to configure and maintain software.

Exhibit E
564

San Clemente, CA
Tyler Technologies, Inc. Page | 26
 Prepare standard interfaces for process validation (if applicable).

STAGE 3 Configuration
Tyler City
RACI MATRIX KEY:

A R I C C
Complete Tyler
configuration tasks
(where applicable)

A R I I I
Complete City
configuration tasks
(where applicable)

I C A R C
Standard interfaces
configuration and
training (if
applicable)

A R C I C C C
Updates to Solution
Validation testing
plan

C C A R C C
Inputs Documentation that describes future state decisions and configuration options to support future state decisions.

Outputs /
Deliverables
Acceptance Criteria [only] for Deliverables
Configured System
Work package assumptions:
 Tyler provides guidance for configuration options available within the Tyler software. The City is responsible for making decisions when multiple options are available.

Process Refinement
Tyler will educate the City users on how to execute processes in the system to prepare them for the validation of the software. The City collaborates with Tyler staff iteratively to validate software configuration options to support future state.

Objectives:

Exhibit E
565

San Clemente, CA
Tyler Technologies, Inc. Page | 27
 Ensure that the City understands future state processes and how to execute the processes in the software.
 Refine each process to meet the business requirements.  Validate standard interfaces, where applicable.
 Validate forms and reports, where applicable.

STAGE 3 Process Refinement
Tyler City
RACI MATRIX KEY:

I C A R C
Refine
configuration
(Tyler
Responsible)

A R I I I
Validate interface
process and
results

I C C A R C C
Update Cityspecific process
documentation (if
applicable)

I C A R C
Updates to
Solution
Validation testing
plan

C C A R C C
Inputs Initial Configuration
Documentation that describes future state decisions and configuration options to support future state decisions.

Solution validation test plan
Outputs /
Deliverables
Acceptance Criteria [only] for Deliverables
Updated solution validation test plan
Exhibit E
566

San Clemente, CA
Tyler Technologies, Inc. Page | 28
Completed City-specific process
documentation (completed by City)
Work package assumptions:
 None
Conversion Delivery
The purpose of this task is to transition the City’s data from their source (“legacy”) system(s) to the Tyler system(s). The data will need to be mapped from the legacy system into the new Tyler system format. A wellexecuted data conversion is key to a successful cutover to the new system(s).

With guidance from Tyler, the City will review specific data elements within the system and identify / report discrepancies. Iteratively, Tyler will collaborate with the City to address conversion discrepancies. This process will allow for clean, reconciled data to transfer from the source system(s) to the Tyler system(s). Reference Conversion Appendix for additional detail.

Objectives:
 Data is ready for production (Conversion).

STAGE 3 Data Delivery & Conversion
Tyler City

RACI MATRIX
KEY:

San Clemente, CA
Tyler Technologies, Inc. Page | 29
Provide data
crosswalks/code
mapping tool

A C R I I I
Populate data
crosswalks/code
mapping tool

I C C A R C
Iterations:

Conversion
Development

A C R I I
Iterations:

Deliver
converted data

A R I I I
Iterations:

Proof/Review
data and
reconcile to
source system

C C C A R C C
Inputs
Data Conversion Plan
Configuration
Outputs /
Deliverables
Acceptance Criteria [only] for Deliverables
Code Mapping Complete / Validated
Conversion Iterations / Reviews Complete Conversion complete, verified, and ready for final pass
Work package assumptions:
 The City will provide a single file layout per source system as identified in the investment summary.  The City subject matter experts and resources most familiar with the current data will be involved in the data conversion effort.
 The City project team will be responsible for completing the code mapping activity, with assistance from Tyler.

This work package is not applicable.

Control Point 3: Prepare Solution Stage Acceptance
Acceptance criteria for this Stage includes all criteria listed below in each Work Package.

Note: Advancement to the Production Readiness Stage is dependent upon Tyler’s receipt of the Stage Acceptance.

Prepare Solution Stage Deliverables:
 Licensed software is installed.
 Installation checklist/system document.
 Conversion iterations and reviews complete.

Exhibit E
568

San Clemente, CA
Tyler Technologies, Inc. Page | 30
Prepare Solution Stage Acceptance Criteria:
 All stage deliverables accepted based on criteria previously defined.  Software is configured.
 Solution validation test plan has been reviewed and updated if needed.

Production Readiness
Activities in the Production Readiness stage will prepare the City team for go-live through solution validation, the development of a detailed go-live plan and end user training. A readiness assessment will be conducted with the City to review the status of the project and the organizations readiness for go-live.

Solution Validation
Solution Validation is the end-to-end software testing activity to ensure that the City verifies all aspects of the Project (hardware, configuration, business processes, etc.) are functioning properly, and validates that all features and functions per the contract have been deployed for system use.

Objectives:
 Validate that the solution performs as indicated in the solution validation plan.  Ensure the City organization is ready to move forward with go-live and training (if applicable).

STAGE 4 Solution Validation
Tyler City
RACI MATRIX KEY:

San Clemente, CA
Tyler Technologies, Inc. Page | 31
Solution Validation Report City updates report with testing results Work package assumptions:
 Designated testing environment has been established.
 Testing includes current phase activities or deliverables only.

Go-Live Readiness
Tyler and the City will ensure that all requirements defined in Project planning have been completed and the Go-Live event can occur, as planned. A go-live readiness assessment will be completed identifying risks or actions items to be addressed to ensure the City has considered its ability to successfully Go-Live. Issues and concerns will be discussed, and mitigation options documented. Tyler and the City will jointly agree to move forward with transition to production. Expectations for final preparation and critical dates for the weeks leading into and during the Go-Live week will be planned in detail and communicated to Project teams.

Objectives:
 Action plan for go-live established.
 Assess go-live readiness.
 Stakeholders informed of go-live activities.

STAGE 4 Go-Live Readiness
Tyler City
RACI MATRIX KEY:

A R I I I I C C I I I I I
Develop Go-Live checklist A R C C C C I C C
Final system
infrastructure review
(where applicable)

A R C C
Inputs Future state decisions
Go-live checklist
Exhibit E
570

San Clemente, CA
Tyler Technologies, Inc. Page | 32
Outputs /
Deliverables
Acceptance Criteria [only] for Deliverables
Updated go-live checklist Updated Action plan and Checklist for go-live delivered to the City
Work package assumptions:
 None
End User Training
End User Training is a critical part of any successful software implementation. Using a training plan previously reviewed and approved, the Project team will organize and initiate the training activities.

Train the Trainer: Tyler provides one occurrence of each scheduled training or implementation topic. City users who attended the Tyler sessions may train additional users. Additional Tyler led sessions may be contracted at the applicable rates for training.

Tyler will provide standard application documentation for the general use of the software. It is not Tyler’s responsibility to develop City specific business process documentation. City-led training labs using City specific business process documentation if created by the City can be added to the regular training curriculum, enhancing the training experiences of the end users.

Objectives:
 End users are trained on how to use the software prior to go-live.  The City is prepared for on-going training and support of the application.

STAGE 4 End User Training
Tyler City
RACI MATRIX KEY:

San Clemente, CA
Tyler Technologies, Inc. Page | 33
Outputs /
Deliverables
Acceptance Criteria [only] for Deliverables
End User Training City signoff that training was delivered Work package assumptions:
 The City project team will work with Tyler to jointly develop a training curriculum that identifies the size, makeup, and subject-area of each of the training classes.  Tyler will work with the City as much as possible to provide end-user training in a manner that minimizes the impact to the daily operations of City departments.  The City will be responsible for training new users after go-live (exception—previously planned or regular training offerings by Tyler).

Control Point 4: Production Readiness Stage Acceptance
Acceptance criteria for this stage includes all criteria listed below. Advancement to the Production stage is dependent upon Tyler’s receipt of the stage acceptance.

Production Readiness stage deliverables:
 Solution Validation Report.
 Update go-live action plan and/or checklist.
 End user training.

Production Readiness stage acceptance criteria:
 All stage deliverables accepted based on criteria previously defined.  Go-Live planning session conducted.

Production
Following end user training the production system will be fully enabled and made ready for daily operational use as of the scheduled date. Tyler and the City will follow the comprehensive action plan laid out during GoLive Readiness to support go-live activities and minimize risk to the Project during go-live. Following go-live, Tyler will work with the City to verify that implementation work is concluded, post go-live activities are scheduled, and the transition to Client Services is complete for long-term operations and maintenance of the Tyler software.

Go-Live
Following the action plan for Go-Live, defined in the Production Readiness stage, the City and Tyler will complete work assigned to prepare for Go-Live.

The City provides final data extract and Reports from the Legacy System for data conversion and Tyler executes final conversion iteration, if applicable. If defined in the action plan, the City manually enters any data added to the Legacy System after final data extract into the Tyler system.

Tyler staff collaborates with the City during Go-Live activities. The City transitions to Tyler software for day-to day business processing.

Exhibit E
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San Clemente, CA
Tyler Technologies, Inc. Page | 34
Some training topics are better addressed following Go-Live when additional data is available in the system or based on timing of applicable business processes and will be scheduled following Go-Live per the Project Schedule.

Objectives:
 Execute day to day processing in Tyler software.
 City data available in Production environment.

STAGE 5 Go-Live
Tyler City
RACI MATRIX KEY:

C C A R
Final source data
pushed into
production
environment, if
applicable

A C R I C C C
Proof final
converted data, if
applicable

C C C A R C
Complete Go-Live
activities as defined
in the Go-Live action
plan

C C C A R C I C
Provide Go-Live
assistance A R C C I C C I C I C
Inputs Comprehensive Action Plan for Go-Live
Final source data (if applicable)
Outputs /
Deliverables
Acceptance Criteria [only] for Deliverables
Data is available in production environment City confirms data is available in production environment
Work package assumptions:
 The City will complete activities documented in the action plan for Go-Live as scheduled.

Exhibit E
573

San Clemente, CA
Tyler Technologies, Inc. Page | 35
 External stakeholders will be available to assist in supporting the interfaces associated with the GoLive live process.  The City business processes required for Go-Live are fully documented and tested.  The City Project team and subject matter experts are the primary point of contact for the end users when reporting issues during Go-Live.
 The City Project Team and Power User’s provide business process context to the end users during GoLive.

Transition to Client Services
This work package signals the conclusion of implementation activities for the Phase or Project with the exception of agreed-upon post Go-Live activities. The Tyler project manager(s) schedules a formal transition of the City onto the Tyler Client Services team, who provides the City with assistance following Go-Live, officially transitioning the City to operations and maintenance.

Objectives:
 Ensure no critical issues remain for the project teams to resolve.  Confirm proper knowledge transfer to the City teams for key processes and subject areas.

STAGE 5 Transition to Client Services
Tyler City
RACI MATRIX KEY:

I I A I I R I I C C C
Review long term
maintenance and
continuous
improvement

A R C C C
Inputs Open item/issues List
Outputs /
Deliverables
Acceptance Criteria [only] for Deliverables
Client Services Support Document
Work package assumptions:

Exhibit E
574

San Clemente, CA
Tyler Technologies, Inc. Page | 36
 No material project issues remain without assignment and plan.

Post Go-Live Activities
Some implementation activities are provided post-production due to the timing of business processes, the requirement of actual production data to complete the activities, or the requirement of the system being used in a live production state.

Objectives:
 Schedule activities that are planned for after Go-Live.  Ensure issues have been resolved or are planned for resolution before phase or project close.

STAGE 5 Post Go-Live Activities
Tyler City
RACI MATRIX KEY:

A R C C C C I C C I C C
Determine
resolution plan in
preparation for
phase or project
close out

A R C C C I C C I C
Inputs List of post Go-Live activities
Outputs /
Deliverables
Acceptance Criteria [only] for
Deliverables
Updated issues log
Work package assumptions:
 System is being used in a live production state.

Control Point 5: Production Stage Acceptance
Acceptance criteria for this Stage includes completion of all criteria listed below:
 Advancement to the Close stage is not dependent upon Tyler’s receipt of this Stage Acceptance.

Exhibit E
575

San Clemente, CA
Tyler Technologies, Inc. Page | 37
 Converted data is available in production environment.

Production Stage Acceptance Criteria:
 All stage deliverables accepted based on criteria previously defined.  Go-Live activities defined in the Go-Live action plan completed.  Client services support document is provided.

Close
The Close stage signifies full implementation of all products purchased and encompassed in the Phase or Project. The City transitions to the next cycle of their relationship with Tyler (next Phase of implementation or long-term relationship with Tyler Client Services).

Phase Closeout
This work package represents Phase completion and signals the conclusion of implementation activities for the Phase. The Tyler Client Services team will assume ongoing support of the City for systems implemented in the Phase.

Objectives:
 Agreement from Tyler and the City teams that activities within this phase are complete.

STAGE 6 Phase Close Out
Tyler City
RACI MATRIX KEY:

I A R I I C
Hold post phase
review meeting A R C C C C C C C C C
Release phasedependent Tyler
project resources

A R I I
Participants Tyler City
Project Leadership Project Manager
Project Manager Project Sponsor(s)
Implementation Consultants Functional Leads, Power Users, Technical Leads
Exhibit E
576

San Clemente, CA
Tyler Technologies, Inc. Page | 38
Technical Consultants (Conversion, Deployment,
Development)
Client Services
Inputs Contract
Statement of Work
Project artifacts
Outputs /
Deliverables
Acceptance Criteria [only] for Deliverables
Final action plan (for outstanding items)
Reconciliation Report
Post Phase Review
Work package assumptions:
 Tyler deliverables for the phase have been completed.

Project Closeout
Completion of this work package signifies final acceptance and formal closing of the Project.

At this time the City may choose to begin working with Client Services to look at continuous improvement Projects, building on the completed solution.

Objectives:
 Confirm no critical issues remain for the project teams to resolve.  Determine proper knowledge transfer to the City teams for key processes and subject areas has occurred.
 Verify all deliverables included in the Agreement are delivered.

STAGE 6 Project Close Out
Tyler City
RACI MATRIX KEY:

I A R I I C
Exhibit E
577

San Clemente, CA
Tyler Technologies, Inc. Page | 39
Release Tyler
project resources A R I I
Inputs Contract
Statement of Work
Outputs /
Deliverables
Acceptance Criteria [only] for Deliverables
Post Project Report City acceptance; Completed report indicating all project Deliverables and milestones have
been completed
Work package assumptions:
 All project implementation activities have been completed and approved.  No critical project issues remain that have not been documented and assigned.  Final project budget has been reconciled and invoiced.  All Tyler deliverables have been completed.

Control Point 6: Close Stage Acceptance
Acceptance criteria for this Stage includes completion of all criteria listed below.

Close Stage Deliverables:
 Post Project Report.

Close Stage Acceptance Criteria:
 Completed report indicating all Project deliverables and milestones have been completed.

General Assumptions
Tyler and the City will use this SOW as a guide for managing the implementation of the Tyler Project as provided and described in the Agreement. There are a few assumptions which, when acknowledged and adhered to, will support a successful implementation. Assumptions related to specific work packages are documented throughout the SOW. Included here are general assumptions which should be considered throughout the overall implementation process.

Project
 Project activities will begin after the Agreement has been fully executed.  The City Project Team will complete their necessary assignments in a mutually agreed upon timeframe to meet the scheduled go-live date, as outlined in the Project Schedule.  Sessions will be scheduled and conducted at a mutually agreeable time.  Additional services, software modules and modifications not described in the SOW or Agreement will be considered a change to this Project and will require a Change Request Form as previously referenced in the definition of the Change Control Process.

Exhibit E
578

San Clemente, CA
Tyler Technologies, Inc. Page | 40
 Tyler will provide a written agenda and notice of any prerequisites to the City project manager(s) ten (10) business days or as otherwise mutually agreed upon time frame prior to any scheduled on-site or remote sessions, as applicable.
 Tyler will provide guidance for configuration and processing options available within the Tyler software. If multiple options are presented by Tyler, the City is responsible for making decisions based on the options available.
 Implementation of new software may require changes to existing processes, both business and technical, requiring the City to make process changes.
 The City is responsible for defining, documenting, and implementing their policies that result from any business process changes.

Organizational Change Management
Unless otherwise contracted by Tyler, City is responsible for managing Organizational Change. Impacted City resources will need consistent coaching and reassurance from their leadership team to embrace and accept the changes being imposed by the move to new software. An important part of change is ensuring that impacted City resources understand the value of the change, and why they are being asked to change.

Resources and Scheduling
 City resources will participate in scheduled activities as assigned in the Project Schedule.  The City team will complete prerequisites prior to applicable scheduled activities. Failure to do so may affect the schedule.
 Tyler and the City will provide resources to support the efforts to complete the Project as scheduled and within the constraints of the Project budget.
 Abbreviated timelines and overlapped Phases require sufficient resources to complete all required work as scheduled.
 Changes to the Project Schedule, availability of resources or changes in Scope will be requested through a Change Request. Impacts to the triple constraints (scope, budget, and schedule) will be assessed and documented as part of the change control process.  The City will ensure assigned resources will follow the change control process and possess the required business knowledge to complete their assigned tasks successfully. Should there be a change in resources, the replacement resource should have a comparable level of availability, change control process buy-in, and knowledge.
 The City makes timely Project related decisions to achieve scheduled due dates on tasks and prepare for subsequent training sessions. Failure to do so may affect the schedule, as each analysis and implementation session is dependent on the decisions made in prior sessions.  The City will respond to information requests in a comprehensive and timely manner, in accordance with the Project Schedule.
 The City will provide adequate meeting space or facilities, including appropriate system connectivity, to the project teams including Tyler team members.
 For on-site visits, Tyler will identify a travel schedule that balances the needs of the project and the employee.

Data
 Data will be converted as provided and Tyler will not create data that does not exist.  The City is responsible for the quality of legacy data and for cleaning or scrubbing erroneous legacy data.

Exhibit E
579

San Clemente, CA
Tyler Technologies, Inc. Page | 41
 Tyler will work closely with the City representatives to identify business rules before writing the conversion. The City must confirm that all known data mapping from source to target have been identified and documented before Tyler writes the conversion.  All in-scope source data is in data extract(s).
 Each legacy system data file submitted for conversion includes all associated records in a single approved file layout.
 The City will provide the legacy system data extract in the same format for each iteration unless changes are mutually agreed upon in advance. If not, negative impacts to the schedule, budget and resource availability may occur and/or data in the new system may be incorrect.  The City Project Team is responsible for reviewing the converted data and reporting issues during each iteration, with assistance from Tyler.
 The City is responsible for providing or entering test data (e.g., data for training, testing interfaces, etc.)
Facilities
 The City will provide dedicated space for Tyler staff to work with City resources for both on-site and remote sessions. If Phases overlap, City will provide multiple training facilities to allow for independent sessions scheduling without conflict.
 The City will provide staff with a location to practice what they have learned without distraction.

Exhibit E
580

San Clemente, CA
Tyler Technologies, Inc. Page | 42
Glossary
Word or Term Definition
Acceptance Confirming that the output or deliverable is suitable and conforms to the agreed upon criteria.

Accountable The one who ultimately ensures a task or deliverable is completed; the one who ensures the prerequisites of the task are met and who delegates the work to those responsible. [Also see RACI]
Application A computer program designed to perform a group of coordinated functions, tasks, or activities for the benefit of the user.

Application Programming Interface (API) A defined set of tools/methods to pass data to and received data from Tyler software products
Agreement This executed legal contract that defines the products and services to be implemented or performed.

Business Process The practices, policy, procedure, guidelines, or functionality that the client uses to complete a specific job function.

Business Requirements Document A specification document used to describe Client requirements for contracted software modifications.

Change Request A form used as part of the Change Control process whereby changes in the scope of work, timeline, resources, and/or budget are documented and agreed upon by participating parties.

Change Management Guides how we prepare, equip and support individuals to successfully adopt change in order to drive organizational success & outcomes
Code Mapping [where applicable] An activity that occurs during the data conversion process whereby users equate data (field level) values from the old system to the values available in the new system. These may be one to one or many to one. Example: Old System [Field = eye color] [values = BL, Blu, Blue] maps to New Tyler System [Field = Eye Color] [value = Blue].

Consulted Those whose opinions are sought, typically subject matter experts, and with whom there is two-way communication. [Also see RACI]
Control Point This activity occurs at the end of each stage and serves as a formal and intentional opportunity to review stage deliverables and required acceptance criteria for the stage have been met.

Data Mapping [where applicable] The activity determining and documenting where data from the legacy system will be placed in the new system; this typically involves prior data analysis to understand how the data is currently used in the legacy system and how it will be used in the new system.

Deliverable A verifiable document or service produced as part of the Project, as defined in the work packages.

Go-Live The point in time when the Client is using the Tyler software to conduct daily operations in Production.

Informed Those who are kept up-to-date on progress, often only on completion of the task or deliverable, and with whom there is just one-way communication. [Also see RACI]
Exhibit E
581

San Clemente, CA
Tyler Technologies, Inc. Page | 43
Infrastructure The composite hardware, network resources and services required for the existence, operation, and management of the Tyler software.

Interface A connection to and potential exchange of data with an external system or application. Interfaces may be one way, with data leaving the Tyler system to another system or data entering Tyler from another system, or they may be bi-directional with data both leaving and entering Tyler and another system.

Integration A standard exchange or sharing of common data within the Tyler system or between Tyler applications
Legacy System The software from which a client is converting.

Modification Custom enhancement of Tyler’s existing software to provide features or functions to meet individual client requirements documented within the scope of the Agreement.

On-site Indicates the work location is at one or more of the client’s physical office or work environments.

Organizational Change The process of changing an organization's strategies, processes, procedures, technologies, and culture, as well as the effect of such changes on the organization.

Output A product, result or service generated by a process.

Peripheral devices An auxiliary device that connects to and works with the computer in some way. Some examples: scanner, digital camera, printer.

Phase A portion of the Project in which specific set of related applications are typically implemented. Phases each have an independent start, Go-Live and closure dates but use the same Implementation Plans as other Phases of the Project. Phases may overlap or be sequential and may have different Tyler resources assigned.

Project The delivery of the software and services per the agreement and the Statement of Work. A Project may be broken down into multiple Phases.

RACI A matrix describing the level of participation by various roles in completing tasks or Deliverables for a Project or process.

Individuals or groups are assigned one and only one of the following roles for a given task: Responsible (R), Accountable (A), Consulted (C), or Informed (I).

Remote Indicates the work location is at one or more of Tyler’s physical offices or work environments.

Responsible Those who ensure a task is completed, either by themselves or delegating to another resource. [Also see RACI]
Scope Products and services that are included in the Agreement.

Exhibit E
582

San Clemente, CA
Tyler Technologies, Inc. Page | 44
Solution The implementation of the contracted software product(s) resulting in the connected system allowing users to meet Project goals and gain anticipated efficiencies.

Stage The top-level components of the WBS. Each Stage is repeated for individual Phases of the Project.

Standard Software functionality that is included in the base software (offthe-shelf) package; is not customized or modified.

Statement of Work (SOW) Document which will provide supporting detail to the Agreement defining Project-specific activities, services, and Deliverables.

System The collective group of software and hardware that is used by the organization to conduct business.

Test Scripts The steps or sequence of steps that will be used to validate or confirm a piece of functionality, configuration, enhancement, or Use Case Scenario.

Training Plan Document(s) that indicate how and when users of the system will be trained relevant to their role in the implementation or use of the system.

Validation (or to validate) The process of testing and approving that a specific Deliverable, process, program, or product is working as expected.

Work Breakdown Structure (WBS) A hierarchical representation of a Project or Phase broken down into smaller, more manageable components.

Work Package A group of related tasks within a project.

Exhibit E
583

San Clemente, CA
Tyler Technologies, Inc. Page | 45
Part 4: Appendices
Conversion
Enterprise ERP Conversion Summary
Accounting
Accounting - Actuals
 Summary account balances
 Up to 5 years
Accounting - Budgets
 Original budget, budget adjustments, revised budget summaries for accounts  Up to 5 years
Accounts Payable
Vendors
 Vendor Master file including names, addresses, SSN/FID, contacts, phone numbers  Multiple remittance addresses
 Year-to-date 1099 amounts
Accounts Payable - Checks
 Check header data including vendor, warrant, check number, check date, overall check amount, GL cash account and clearing information
 Check detail data including related document and invoice numbers for each check  Up to 5 years
Accounts Payable - Invoices
 Invoice header data containing general information for the invoice  Invoice detail data containing line-specific information for the invoice  Up to 5 years
Project Accounting
Project Accounting Master Tables
 Segments, account strings and fund string allocation table  Requires the use of a Tyler provided (Chart of Accounts) spreadsheet for design and entry of the data to be converted
Project Accounting - Actuals
 Summary project ledger string balances. If linking to GL, must be converted at the same time.

Exhibit E
584

San Clemente, CA
Tyler Technologies, Inc. Page | 46
 Up to 5 years
Project Accounting – Budget
 Original project ledger budget amounts. If linking to GL, must be converted at the same time.  Up to 5 years
Purchase Orders
 Open purchase orders header data including vendor, buyer, date, accounting information, etc.  Open purchase orders detail data including line-item descriptions, quantities, amounts, etc.  Closed purchase orders detail data, up to 5 years, including line-item descriptions, quantities, amounts, etc.

Human Resources Management
HRM Employee Master Information
 Payroll Employee Master data including data such as name, address, SSN, legacy employee ID, date of birth, hire date, activity status (such as active/inactive), leave/termination code and date, phone(s), eaddress, marital status, gender, race, personnel status (such as full-time, part-time, etc.), highest degree, advice-delivery (print/email/both) and check location, plus primary group, job, location, and account information
Accumulators
 YTD, QTD, MTD amounts for employee pay and deductions  Needed for mid-calendar-year go-live
 May not be needed if converting earnings/deductions history  Up to 5 years
 Accumulators are converted with check history and earning/deduction history as a default. No accumulator files are necessary to submit when converting history.

Check History
 Up to 5 years, additional years must be quoted. We convert amounts for earnings and deductions in employee check history, check number and date.

Earning/Deduction Hist.
 Up to 5 years, additional years must be quoted. Earning and deduction history broken down my individual codes (earnings and deduction) and amounts per pay period, the detail of these lines, sums the check history in opt 4.

Personnel Action History
 A variety of Personnel actions, such as job or salary changes and dates these events occurred.  Up to 5 years
Exhibit E
585

San Clemente, CA
Tyler Technologies, Inc. Page | 47
Certifications
 Certification area and certification type codes, certification number and effective date, expiration date, and required-by date, codes for certification level and subjects Education
 Codes, for institution, type of degree, and area(s) of study General Billing
Customer Master Files
 Customer information
General Billing – Recurring Invoices
 General Billing Invoices that are sent on a regular basis  Header records with general information about the invoice  Detail records with line-specific information
General Billing – Bills
 5 years of open and closed invoices
 General Ledger information so open invoices can be processed in Enterprise ERP Utility Billing
Account Information
 Account Master data including previous and current customer owner information- address info, phone, fax, SSN number, FID number, account status, parcel number, location street, apartment, city, state, zip, book number, read sequence, account start and end date, EFT bank information Services
 Current service codes, service status, type, factor, condo units, bill cycle codes, current deposits held on account including unpaid deposit amounts, winter usage, current meter(s) associated with service, meter readings (current and previous), meter usage (current and previous) and sales tax information.

Assessments
 Assessments are improvement costs that are spread across to property owner  Utility Billing conversion option 4 (balance forward AR) must also be purchased in order to convert assessments
Consumption History
 History of meter readings, usage, read dates, usage days, bill amounts, bill dates, read codes  Up to 5 years
Exhibit E
586

San Clemente, CA
Tyler Technologies, Inc. Page | 48
Balance Forward AR
 Account balance forward information converted as total amount due. If the client’s business practices require current due and past due bills this can be broken into three balance forward bills(current balance due and up to two past due balance bills).These can be converted to one balance forward charge code or separate balance forward charge codes, and converted to the account/customer, if the client’s legacy data contains this information.
 If late penalties will be applied in Enterprise ERP after the conversion, balance forward amounts must be converted by charge code
Work Orders
 Work Orders data associated with accounts, including meter repairs, checks for leaky meter, reread a meter due to high reading
Backflow
 Account information, backflow device information, backflow type, and backflow violations Budget Billing
 Converts information for budget average billing by account, customer and service. Legacy data must include: calculated budget amount by service; number of periods remaining until plan renews; budget plan balance/credit amount, broken out by service/customer; additional amortized amount by service.

Flat Inventory/Containers
 Inventory for non-metered items tied to recurring service billing – flat rate is tied to inventory item(s)/item type(s) (vs consumption/usage). Trash/recycling containers, dumpsters, roll off containers, light poles, cable/internet equipment.

Exhibit E
587

San Clemente, CA
Tyler Technologies, Inc. Page | 49
Additional Appendices
This work package is not applicable.

Exhibit E
588

San Clemente, CA
Tyler Technologies, Inc. Page | 50
Project Timeline
ERP Project Timeline The Project Timeline establishes a target duration for each phase of the project. The timeline needs to account for resource availability, business goals, size and complexity of the project, and task duration requirements. These will be reviewed and adjusted, if needed, during the Initiate and Plan Stage. Refer to the Project Stages section of this SOW for information on work packages associated with each stage of the implementation. Durations may be revised when the Agreement is signed and further refined during the project.

Eden to Enterprise ERP project start dates are dependent on wave availability. Waves are a common implementation start month for a group of Eden clients. Each wave has a designated number of slots available for clients to sign up – once those slots are full you must choose an alternate wave with availability.

A signed agreement is required to reserve your spot in a specific wave.

Phase Functional Area(s) Modules Duration
1 Financials

• Accounting
• Accounts Payable
• Budgeting
• Capital Assets
• Contract Management
• Project & Grant
Accounting
• Purchasing
• Accounts Receivable
• General Billing
12 Months
or as defined in the Project Plan
and mutually agreed upon
Systemwide • Enterprise Analytics &
Reporting w Executive
Insights
• Enterprise Forms
• Content Manager Core
2 Human Resources
Management
• Payroll with Employee
Access
• Human Resources &
Talent Management
• Time & Attendance w
Mobile Access
• Risk Management
12 Months
or as defined in the Project Plan
and mutually agreed upon

3 Utility Billing • Utility Billing CIS
• Utility Billing Meter
Interface
• Resident Access
12 Months
or as defined in the Project Plan
and mutually agreed upon
Exhibit E
589

San Clemente, CA
Tyler Technologies, Inc. Page | 51
This work package is not applicable.

Exhibit E
590
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: December 9, 2025 Agenda Item: 11M.

Submitted By: Public Works
Prepared By: David Rebensdorf, Public Works Director/City Engineer Subject:
..titl e
CONSIDERATION OF A RESOLUTION AUTHORIZING AN EXEMPTION TO THE CITY’S

PURCHASING POLICY, AWARDING AN AGREEMENT TO THE REGENTS OF THE UNIVERSITY OF CALIFORNIA FOR ANALYSIS OF THE CITY’S BEACH TRUNK LINE,

AUTHORIZING THE CITY MANAGER TO EXECUTE THE AGREEMENT, AUTHORIZING A SUPPLEMENTAL APPROPRIATION IN THE AMOUNT OF $70,000 FROM THE SEWER FUND

DEPRECIATION RESERVE AND FINDING THE ACTIONS CATEGORICALLY EXEMPT UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT ..body
Fiscal Impact:

The cost of the analysis is $70,000 and there is no funding identified in the FY 2025/26 Budget.

Staff is recommending a supplemental appropriation in the amount of $70,000 from the Sewer Fund Depreciation Reserve to Account Number 054-473-43690-000-00000 to fund the proposed analysis. There is available fund balance within the Sewer Fund Depreciation Reserve for this expenditure.

Summary:

The City and University of California Irvine (UCI) partnered in 2025 for students to analyze sand replenishment at North Beach. The project culminated in a final report and presentation by faculty and students to the community at a public event. UCI is working with cities and private partners to continue developing projects for Masters of Engineering students to gain valuable experience working on actual projects.

UCI staff contacted the City to seek another partnership and evaluate potential City projects.

Upon review by City staff and consensus of UCI faculty and students, analysis of relocation of the City’s Beach Trunk Line provides an ideal project for students to work on in 2026. The final report will provide three alternatives for the relocation of the Beach Trunk Line, cost estimates, engineering analysis integral to the future completion of a Beach Trunk Master Plan, and a report to the public. The master plan with alternatives is a requirement of the City’s California Coastal Commission Development Permit (CDP) for the relocation of Cyprus Shore Pump Station.

Background:

The City’s wastewater collection system consists of approximately 180 miles of sewer lines and 12 pump stations. One of the trunk pipelines, known as the Beach Trunk Sewer Line was constructed in the 1920’s from Calafia Beach to Main Pump Station near Ole Hanson Beach Club. The pipeline and pump station convey untreated wastewater to the City’s Water Reclamation Plant on Avenida Pico. The pipeline is located at the toe of the coastal bluff and is exposed to landslides and soil sluffing. Recently, two projects to protect and replace existing wastewater collection system infrastructure was approved by the California Coastal Commission 591
Meeting Date: December 9, 2025 Agenda Item: 11M.

CITY OF SAN CLEMENTE 2
at Cyprus Shores and just north of Linda Lane. As part of the City’s CDP, analysis of alternatives for conveyance of wastewater inland of the coastal bluff is required.

City staff intends to propose a project to complete a Beach Trunk Master Plan to fulfill the requirement in the next budget cycle. In the interim, there is a unique opportunity to utilize UCI Masters of Engineering Students to evaluate up to three alternatives to relocate the sewer system, tunnelling under the coastal bluffs, and stabilizing the right-of-way. The project will provide valuable experience for the students, including: engineering design of hydraulics, estimating project costs, evaluating alternative and potential conflicts, developing cost estimates, and life-cycle assessments. The project is anticipated to begin in January of 2026 with completion by the summer of 2026. Engagement of the public along with a final presentation will conclude the project. The work completed by the UCI students will be used as part of the Beach Trunk Master Plan for submission to the Coastal Commission.

Due to the unique educational nature of the project and benefit to the City and the public, staff is recommending an exemption to the City’s Purchasing Policies and Procedures. Section XI.A.1.1.5 of Procurement Policy and Procedure No. 201-2-1 allows the City Council to authorize an exemption to the formal and informal solicitation process for “Services and/or supplies obtained from or through agreement with any governmental, public or quasi-public entity.” Here, UCI is a public or quasi-public entity and there is no reasonable possibility of obtaining better prices commensurate with the time and effort expended.

Council Options:
 Adopt Resolution No. 25-199, which will approve an exemption to the City’s Purchasing Policies and Procedures, approve a supplemental appropriation in the amount of $70,000 from the Sewer Fund Deprecation Reserve, award and authorize the City Manager to execute an agreement for analysis of the Beach Trunk Line relocation and find the actions categorically exempt under the California Environmental Quality Act.
 Modify and adopt Resolution No. 25-199.
 Continue the item and direct staff to provide additional information.  Do not adopt Resolution No. 25-199.

Environmental Review/Analysis:

These actions are categorically exempt from the California Environmental Quality Act (CEQA) under Class 6 of the state CEQA Guidelines Section 15306 (14 CCR Section 15306, Information Collection) because they consist of data collection, information gathering as part of a study leading to an action which a public agency has not yet approved, adopted or funded.

Recommended Actions:

Staff Recommendation ..recommendation
Staff recommends that the City Council adopt Resolution No. 25-199, which will:
592
Meeting Date: December 9, 2025 Agenda Item: 11M.

CITY OF SAN CLEMENTE 3

1. Determine the actions to be categorically exempt from the California Environmental Quality Act (CEQA) under Class 6 of the state CEQA Guidelines Section 15306 (14 CCR Section 15306, Information Collection);

2. Approve a supplemental appropriation in the amount of $70,000 from the Sewer Fund Depreciation Reserve to Account Number 054-473-43690-000-00000;

3. Approve an exemption to the City’s Purchasing Policies and Procedures pursuant to Section XI.A.1.1.5 of Procurement Policy and Procedure No. 201-2-1 for an agreement with a public or quasi-public entity; and

4. Award and authorize the City Manager to execute an Agreement for the Analysis of the City’s Beach Trunk Line with the Regents of the University of California. ..end
Attachment:

1. Resolution No. 25-199

2. Agreement with the Regents of the University of California

3. Exhibit A Statement of Work
Notification:

None.
593
Attachment 1
RESOLUTION NO. 25-199

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SAN CLEMENTE, CALIFORNIA, APPROVING AN
EXEMPTION TO THE CITY’S PURCHASING POLICIES

AND PROCEDURES, AWARDING AGREEMENT FOR THE
ANALYSIS OF THE CITY’S BEACH TRUNK LINE TO THE

REGENTS OF THE UNIVERSITY OF CALIFORNIA,

AUTHORIZING THE CITY MANAGER TO EXECUTE THE

AGREEMENT, AUTHORIZING A SUPPLEMENTAL
APPROPRIATION IN THE AMOUNT OF $70,000 FROM THE

SEWER FUND DEPRECIATION RESERVE, AND FINDING

THE ACTIONS CATEGORICALLY EXEMPT UNDER THE

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA)
UNDER CLASS 6 OF THE STATE CEQA GUIDELINES
SECTION 15306 (14 CCR SECTION 15301, INFORMATION

COLLECTION)
WHEREAS, the City owns and operates a wastewater collection system consisting of 180 miles of sewer lines and 12 pump stations; and
WHEREAS, the City is required to analyze alternatives to the City’s Beach Trunk Line, as part of a California Coastal Commission Development Permit for the relocation of Cyprus Shore Pump Station; and
WHEREAS, University of California Irvine is interested in partnering with the City to provide engineering experience for its Masters of Engineering Students to evaluate relocation of the City’s Beach Trunk Line; and
WHEREAS, the City and Regents of the University of California wish to enter into an agreement providing three alternatives, cost estimates, hydraulic analysis, presentations and funding for the project to be used as part of the City’s requirement to fulfill an existing Coastal Development Permit, which is in the best interest of the public and the City; and WHEREAS, Section XI.A.1.1.5 of Procurement Policy and Procedure No. 201-2-1 (Purchasing Policies and Procedures) allows the City Council to authorize an exemption to the formal and informal solicitation process for “Services and/or supplies obtained from or through agreement with any governmental, public or quasi-public entity”; WHEREAS, the Regents of the University of California is a public or quasi-public entity and there is no reasonable possibility of obtaining better prices commensurate with the time and effort expended.

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

SECTION 1. That the above recitations are true and correct and fully incorporated herein as findings.
594
Resolution No. 25-199 Page 2
SECTION 2. That based on a review of the entire record as a whole, these actions are hereby determined to be categorically exempt from the California Environmental Quality Act (CEQA) under Class 6 of the state CEQA Guidelines Section 15306 (14 CCR Section 15301, Information Collection) because they consist of data collection, information gathering as part of a study leading to an action which a public agency has not yet approved, adopted or funded.

SECTION 3. That a supplemental appropriation in the amount of $70,000 from the Sewer Fund Depreciation Reserve to Account Number 054-473-43690-000-00000 is hereby approved.

SECTION 4. That the City Council authorizes an exemption to the formal and informal solicitation process pursuant to Section XI.A.1.1.5 of Procurement Policy and Procedure No. 201-2-1 for services obtained through an agreement with a public or quasipublic entity and because of the unique educational nature of the project and benefits to the City and the public and the lack of a reasonable possibility of obtaining better prices commensurate with the time and effort expended.

SECTION 5. That an agreement for the Analysis of the City’s Beach Trunk Line is hereby awarded to the Regents of the University of California in an amount not to exceed $70,000.

SECTION 6. That the City Manager is hereby authorized and directed to execute said agreement in form substantially similar to that presented to the City Council on December 9, 2025.

SECTION 7. That the City Manager is authorized and directed to take such actions and execute such other and further documents as may be necessary to accomplish the purposes of this resolution and complete the study.

SECTION 8. 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 December, 2025.

ATTEST:
___________________________ __________________________
City Clerk of the City of Mayor of the City of
San Clemente, California San Clemente, California
595
Resolution No. 25-199 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. 25-199 was adopted at a regular meeting of the City Council of the City of San Clemente held on the _______ day of December, 2025, 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
596
Attachment 2

AGREEMENT XXXXX

BETWEEN

THE REGENTS OF THE UNIVERSITY OF CALIFORNIA
AND

THE CITY OF SAN CLEMENTE
Agreement No XXXXXX (“Agreement”) is entered into ________, 2025 between the City of San Clemente (herein after referred to as "City") and The Regents of the University of California, on behalf of its Irvine Campus (hereinafter referred to as "UCI," City and UCI collectively, “Parties” and each individually, “Party”) for the delivery of services identified as “City + UCI Coastal Collaboration” defined in Article 1A, STATEMENT OF WORK, and in accordance with the terms and conditions set forth herein.

AGREEMENT SCHEDULE
ARTICLE 1

PERFORMANCE AND DELIVERY
A. STATEMENT OF WORK
The statement of work to be performed under this Agreement and Costs are described in Exhibit A.

B. PERIOD OF PERFORMANCE
The period of performance of this Agreement shall be January 1, 2026 through December 31, 2026.

C. TOTAL ESTIMATED COST
It is estimated that the total cost to the City for performance of this Agreement shall not exceed $70,000.

D. DELIVERY
All materials and services called for under this Agreement shall be completed and delivered to the City on or before December 31, 2026 unless extended by prior written authorization.

ARTICLE 2

PAYMENT AND BILLING
C. PAYMENT
Payment will be made by the City to the UCI upon presentation of the UCI's invoice.

597
2 ARTICLE 3

PATENT RIGHTS
UCI agrees that if patentable discoveries or inventions are made and/or conceived or for the first time actually reduced to practice by the UCI or its employees under the terms of this Agreement, UCI shall promptly furnish City with complete information thereon. Disposition of all subject inventions will be made in accordance with US Patent Laws.

ARTICLE 4

PUBLICATIONS, COPYRIGHTS AND RIGHTS TO DATA
City shall have the right to publish, disclose, disseminate and use, in whole or in part, any data and information received or developed under this Agreement.

ARTICLE 5

ADVERTISING AND PUBLICITY
Neither the UCI nor the City will use the name of the other, either expressly or by implication, in any news, publicity release, or other fashion without the express written approval of the other Party of this Agreement.

ARTICLE 6

SPECIAL PROVISIONS
A. ASSIGNMENT
This Agreement may not be assigned in whole or in part without the prior written consent of the City.

C. TERMINATION
This Agreement may be terminated by either Party upon thirty (30) days written notice to the other Party, except that the termination of the Prime Award concurrently terminates this Agreement with the same date.

D. INDEMNIFICATION
UCI shall defend, indemnify and hold the City, its officers, employees and agents harmless from and against any and all liability, loss, expense, attorneys' fees, or claims for injury or damages arising out of the performance of this Agreement but only in proportion to and to the extent such liability, loss, expense, attorneys' fees, or claims for injury or damages are caused by or result from the negligent or intentional acts or omissions of UCI, its officers, agents or employees.
598
3 The City shall defend, indemnify and hold UCI, its officers, employees and agents harmless from and against any and all liability, loss, expense, attorneys' fees, or claims for injury or damages arising out of the performance of this Agreement but only in proportion to and to the extent such liability, loss, expense, attorneys' fees, or claims for injury or damages are caused by or result from the negligent or intentional acts or omissions of the City, its officers, agents or employees.

ARTICLE 7

NOTICE AND CONTACTS
A. Notices shall be directed to the appropriate individual(s) noted below.

CITY CONTACTS
Project Director
Name: David Rebensdorf
Address: 910 Calle Negocio, San Clemente,
CA. 92673
Email: [email protected]

UCI CONTACTS
Key Investigator
Name: Brett Sanders
Address: 3080 Interdisciplinary Science and
Engineering Building, Irvine, CA 92697-2175
Email: [email protected]
Authorized Representative
Name: Shawn Ryan
Address: 910 Calle Negocio, San Clemente,
CA. 92673
Email: [email protected]
Authorized Official
Name: Erika Blossom
Address: UCI, Office of Research
324 Aldrich
Irvine, CA 9269-7600
Telephone: 949-824-2237
Email: [email protected]
Financial Contact
Name: Brian Bower
Address: 910 Calle Negocio, San Clemente,
CA. 92673
Email: [email protected]
Financial Contact
Name: Jerry Martinez
Address: 5200 Engineering Hall, Irvine, CA
92697-2700
Telephone: (949) 824-5548
Email: [email protected]
ARTICLE 8

GOVERNING LAW
This Agreement shall be governed by the laws of the State of California without regard to its conflicts of law principles.
599
4 ARTICLE 9

ENTIRE AGREEMENT, WAIVERS, AND AMENDMENTS
This Agreement contains the full and complete agreement between the two Parties. All modifications must be in writing and signed by the City's Institutional Official and the UCI's Contracting Officer. No verbal agreements or conversations with any officer or employee of either Party shall affect or modify any of the terms and conditions of this Agreement.

APPROVED AND AGREED:

CITY OF SAN CLEMENTE UCI:

By: By:

Name: Andy Hall Name: Erika Blossom
Title: City Manager Title: Senior Ancillary Agreements Officer Date: Date:

ATTEST:

By:_____________________________
Laura Campagnolo, City Clerk
APPROVED AS TO FORM:

By:_____________________________
Elizabeth A. Mitchell, City Attorney
600
Attachment 3

EXHIBIT A

STATEMENT OF WORK
The wastewater collection system in the City of San Clemente relies upon trunk lines buried at the foot of coastal bluffs, and landward of the Los Angeles – San Diego – San Luis Obispo (LOSSAN) rail corridor, to safely and efficiently bring wastewater from properties as far south as Calafia Beach to the Water Reclamation Plant along Avenida Pico near North Beach. The LOSSAN corridor provides a high degree of protection for the trunk lines against possible erosion by high tides and waves, as it itself is designed and maintained to withstand flooding and erosion.

However, the rail corridor has had its services disrupted in recent years from bluff failures and landslides, and beach loss over recent years has resulted in higher flooding and erosion risks. These conditions alongside expectations of higher future sea levels have motivated Orange County Transit Authority (OCTA) to consider the possibility, in future decades, of re-routing the LOSSAN rail corridor inland. Were that to occur, the sewer trunk lines along the bluffs could possibly become more vulnerable to erosion damage and to unintended leakage of wastewater into the coastal ocean, which warrants planning into the possibility, feasibility and likely costs of alternate approaches for routing wastewater to the Water Reclamation Plant.

The scope of work will involve a collaboration with UC Irvine School of Engineering to develop at least three wastewater collection system adaptation options, for example one that involves rerouting the trunk line inland (uphill from the existing line), one that involves tunnelling under the bluffs, and one that involves stabilization of the existing right-of-way. For each option the work will include routing and pumping plans, preliminary cost estimates, life-cycle assessments, and estimated dates (with uncertainties) for when these options could be needed based on existing projections of sea level rise and beach loss, bluff erosion, long-term plans by the City of San Clemente for beach nourishment and bluff stabilization, and available information about the OCTA planning timeline about the rail.

The collaboration will revolve around a Masters of Engineering (M.Eng) project with a team of students working from January to May of 2026. Participants will include two faculty members from the UC Irvine School of Engineering representing expertise in environment and hydraulics (Professor Brett Sanders) and infrastructure systems and lifecycle assessment (Professor Mo Li), representatives from the City of San Clemente Department of Public Works with expertise in sewer pipeline and pumpstation planning and design, and two Ph.D students—one each working under Professor Sanders and Li.

Specific activities include:

1. M.Eng Project Coordination ($15,000)
The UC Irvine School of Engineering will put together a team of Engineering students from several disciplines (Civil, Mechanical, Electrical) and hold weekly meetings with faculty, City of San Clemente representatives, M.Eng students, Ph.D students and possibly others based upon project needs. The meetings will begin in January 2025 and be completed in June 2025, with Winter Quarter (Jan-Mar) focused on a Preliminary Study and Spring (April-Jun) focus on Preliminary Design. Weekly meeting time will be used for updates by the M.Eng and Ph.D students, input and guidance from the collaboration team, 601
and scheduling of individual meetings with City of San Clemente representatives for technical guidance on sewer pipeline and pump station planning and cost estimation.

2. Trunk Line and Pumpstation Scenarios ($25,000 to cover researcher time and effort) UCI teams will develop at least three alternative scenarios for adapting the trunk lines that presently run along the coast between Califia and North Beach. These scenarios will include infrastructure layouts, cost estimates, and life-cycle analyses. Note that this task will require involvement of representatives from the City of San Clemente to guide students through the practical tasks of planning sewer pipeline and pumpstation infrastructure, building upon their foundational knowledge of engineering principles and concepts.

3. Timelines and Trigger Points ($25,000 to cover researcher time and effort) Due to uncertainty in future sea level rise, beach erosion, bluff erosion, beach nourishment and plans to relocate the LOSSAN rail corridor, the timing of future infrastructure adaptation would be highly uncertain. UCI teams will work to reduce this uncertainty and bring clarity to key trigger points that would motivate additional planning and design. UCI teams will review existing projections of coastal erosion and existing reports on bluff instabilities, prepare new predictions of shoreline change considering planned beach nourishment, review OCTA timelines for rail planning, and prepare a set of trigger points for future action. Importantly, this task will link to the costs and life-cycle analysis which will be critical for financial planning purposes.

4. UCI/San Clemente Mixer ($5,000 to cover refreshments for around 50 attendees) UCI will hold an evening reception along the coast in San Clemente to: (1) allow the student team to gather feedback from representatives of the City of San Clemente and community members, which would help the students to adjust and refine their planning, and (2) facilitate networking amongst UCI faculty, researchers, students and personnel from the City of San Clemente, other agencies (e.g., representatives from OCTA, California Coastal Commission) and others from the community. This event would be tailored towards the specific outreach and engagement needs of the City of San Clemente, and the City would review and approve all invitees.

Deliverables
Winter Quarter: Overview of three (or possibly more) wastewater collection infrastructure adaptation options. (Presentation)
Early Spring Quarter: Outreach to City of San Clemente stakeholders with mixer event, where students share preliminary concepts and gather input.

Late Spring Quarter: Infrastructure adaptation plan with cost estimates, life-cycle assessment, timeline, and trigger points all linked to possible future scenarios. (Presentation to City, Report)
602
Summer: Draft technical article describing adaptation pathways and costs for waste water collection and transportation infrastructure vulnerable to increasing risks of coastal flooding and erosion.
603
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: December 9, 2025 Agenda Item: 11N.

Submitted By: Beaches, Parks and Recreation
Prepared By: Randy Little, Maintenance Manager;
Samantha Wylie, Beaches, Parks & Recreation Director
Subject:
..titl e

CONSIDERATION OF A RESOLUTION AUTHORIZING A SUPPLEMENTAL APPROPRIATION

FOR THE INSTALLATION OF A NEW ELECTRICAL PANEL TO SUPPORT CITY HALL

EMERGENCY DOOR RELEASE SYSTEM AND MAGNETIC LOCKING SYSTEM AND

FINDING THE PROJECT CATEGORICALLY EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT ..body
Fiscal Impact:

A supplemental appropriation of $30,000 is requested for the Public Facilities Construction Fee Fund Account No. 030-818-43890. Funds are available and unallocated for the Fiscal Year 2025- 26 Budget.

Summary:

Staff recommends that the City Council approve a supplemental appropriation of $30,000 from the Public Facilities Construction Fee Fund to install a new electrical panel and magnetic door locks at City Hall. This upgrade is necessary to support the expansion of electronic FOB pads to all stairwells, ensuring that all doors automatically unlock when a fire alarm is activated, in compliance with modern life-safety standards.

Background:

City Hall currently utilizes electronic FOB access for primary exterior doors and several internal locations. As part of ongoing efforts to enhance safety, security, and controlled access, staff identified the need to expand FOB pads to all stairwell doors. This expansion helps maintain secure daily access while ensuring proper emergency egress in the event of a fire or other lifesafety emergency.

To accommodate this important upgrade, it was determined that the existing electrical panel serving the access-control system is at capacity and cannot support the additional power load required for new FOB pads. A dedicated panel upgrade is therefore required before the expanded system can be installed and brought online.

Facilities staff obtained cost estimates that include equipment, installation, and programming. The total project cost is not to exceed $30,000.
604
Meeting Date: December 9, 2025 Agenda Item: 11N.

CITY OF SAN CLEMENTE 2
Council Options:
 Adopt Resolution No. 25-200 approving the supplemental appropriation of $30,000 for the installation of the new electrical panel and correlating door locks and finding the project categorically exempt from the California Environmental Quality Act under Class 1.  Modify the resolution and adopt as amended.
 Provide alternate direction.
 Take no action.

Environmental Review/Analysis:

The project, which consists of the installation of the new electrical panel and magnetic doorlocking components, is categorically exempt from the California Environmental Quality Act (CEQA) under Class 1 of the state CEQA Guidelines §15301 (Existing Facilities, 14 CCR 15301), which covers minor alterations to existing facilities involving negligible or no expansion of use.

Recommended Actions:

Staff Recommendation ..recommendation
Staff recommends that the City Council adopt Resolution No. 25-200, which will:

1. Determine that the project is categorically exempt under CEQA Guidelines §15301 (Class 1); and

2. Approve a supplemental appropriation of $30,000 from Public Facilities Construction Fee Fund Account No. 030-818-43890-000-00000 for the installation of a new electrical panel at City Hall necessary to support expanded FOB access and automatic fire-alarm door release functionality.
..end
Attachment:

1. Resolution No. 25-200
Notification:

None.
605
Attachment 1
RESOLUTION NO. 25-200

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SAN CLEMENTE, CALIFORNIA, AUTHORIZING A

SUPPLEMENTAL APPROPRIATION FOR THE

INSTALLATION OF A NEW ELECTRICAL PANEL TO

SUPPORT THE CITY HALL EMERGENCY DOOR RELEASE

SYSTEM AND MAGNETIC LOCKING SYSTEM AND

FINDING THE PROJECT CATEGORICALLY EXEMPT

FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
(CEQA) UNDER CLASS 1 OF THE STATE CEQA
GUIDELINES SECTION 15301 (EXISTING FACILITIES, 14
CCR 15301)
WHEREAS, City Hall currently utilizes an electronic FOB access system at primary exterior doors and several internal locations as part of the City’s ongoing efforts to enhance safety, security, and controlled access; and
WHEREAS, staff has identified the need to expand electronic FOB pads to all stairwell doors to maintain secure daily access while ensuring that all doors automatically unlock during fire alarms or other emergencies in compliance with life-safety standards; and
WHEREAS, expansion of the FOB system requires additional electrical capacity; and
WHEREAS, staff has determined that the existing electrical panel serving the access-control system has reached its capacity and cannot support the additional power load required for the expanded system; and
WHEREAS, a dedicated electrical panel upgrade is necessary to allow for the installation and operation of the expanded FOB pads and magnetic door locking system; and
WHEREAS, appropriating funds for such a dedicated electrical panel upgrade is in the best interests of the City and the public.

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

SECTION 1. Based on its review of the record as a whole, the City Council determines that the project, which consists of the installation of the electrical panel and associated door-locking equipment, it is categorically exempt under the California Environmental Quality Act (CEQA) Guidelines §15301 (Class 1) because it is a minor alteration to existing facilities with no direct or reasonably foreseeable indirect environmental impacts.

SECTION 2. The City Council hereby authorizes a supplemental appropriation in 606
Resolution No. 25-200 Page 2
the amount of Thirty Thousand Dollars ($30,000) from the Public Facilities Construction Fee Fund, Account No. 030-818-43890-000, into the Facilities Maintenance Other Contractual Services Account No. 001-617-43890 to fund the purchase and installation of a new electrical panel and associated door-locking components at City Hall.

SECTION 3. The Beaches, Parks & Recreation Director, or designee, is authorized to take all necessary steps to complete the project and expend funds consistent with this resolution.

SECTION 4. 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 ____________________, _______.

ATTEST:
___________________________ __________________________
City Clerk of the City of Mayor of the City of San
San Clemente, California Clemente, California
607
Resolution No. 25-200 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. 25-200 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
608
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: December 9, 2025 Agenda Item: 11O.

Submitted By: Public Works
Prepared By: Fatana Temory, Management Analyst
Zak Ponsen, Assistant City Engineer
Dave Rebensdorf, Public Works Director/City Engineer
Subject:
..titl e

CONSIDERATION OF A RESOLUTION APPROVING A FIRST AMENDMENT TO

PROFESSIONAL SERVICES AGREEMENT WITH OCY MANAGEMENT, LLC FOR SENIOR

MOBILITY PROGRAM TRANSPORTATION SERVICES, AUTHORING THE CITY MANAGER

TO EXECUTE THE AMENDMENT AND APPROVING SUPPLEMENTAL APPROPRIATIONS TOTALING $131,000 FOR THE SENIOR MOBILITY PROGRAM, AND FINDING THE ACTIONS STATUTORILY EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT ..body Fiscal Impact:

The existing three-year contract with OCY Management, LLC (previously Cabco Yellow, Inc.) was approved on August 20, 2024 in the amount of $100,000 per year, or a total of $300,000. A modification of the contract from an annual not to exceed value of $100,000 per year for three years to a total not to exceed amount of $355,000 over the revised contract term due to increased ridership is recommended.

It is proposed that the changes be funded by using the current surplus in the Senior Mobility Fund balance of approximately $373,000, which accumulated as a result of reduced ridership during COVID. The Orange County Transportation Authority (OCTA) provides funding of approximately $105,000 per year for the program with minor increases each year.

The Fiscal Year 2025/26 budget included $59,000 from the Senior Mobility Fund, and $15,000 from the General Fund. The budgeted amount for Fiscal Year 2025/26 was based on historical usage prior to the start of Fiscal Year 2024/25. The budgeted amounts did not anticipate the increased ridership of an expanded program and therefore, additional appropriations are necessary.

OCTA funds 80% of the program and the City funds the remaining 20%. To meet the current demands through February 2026, staff is recommending supplemental appropriations in the amount of $104,800 from the Senior Mobility Grant Fund (015) to account number 015-806- 44723-000-00000 and $26,200 from the General Fund (001) to account number 001-203-47012- 000-00000, which will fund the program through February 2026. Staff will be returning to City Council with a new contract award in January or February for contract program services beyond February 2026. Budget for ongoing program cost in the upcoming fiscal years will be included in the proposed budget for FY 2026/27 and FY 2027/28. As further discussed below, Staff is also evaluating changes to the expanded program for potential cost savings to the City in the future. 609
Meeting Date: December 9, 2025 Agenda Item: 11O.

CITY OF SAN CLEMENTE 2
Summary:

The City Council is being asked to consider approval of the First Amendment to the Professional Services Agreements with OCY to provide continued senior transportation services. The additional costs are a result of an expanded program to increase ridership to utilize the surplus of unused OCTA Senior Mobility Grant fund allocations due to lower ridership during COVID. Unless the surplus OCTA allocations are spent, OCTA can demand a refund of its unused funding and alter future allocations to the program.

Due to the program being highly successful and the unanticipated large increase in program ridership, staff is recommending that the current three-year contract be amended to expire on February 28, 2026 so that the program can be reevaluated and a new Request for Proposals be brought to City Council for consideration in January or February 2026 for a commencement date of March 1, 2026.

Background:

The purpose of the Senior Mobility Program is to provide a safe fixed-route transportation option to help senior residents lead independent lives while encouraging accessibility and enhancing their connection with the community. OCTA’s mission is to fill the gap between local fixed-route buses and ADA paratransit by providing local transportation services to seniors in participating cities in Orange County. Under the program, participating cities are eligible to receive funds from OCTA to help operate a transit program that fits the needs of seniors in their communities.

Since 2002, the City of San Clemente has provided senior transportation services through the Senior Mobility Program. The City’s program is currently a no-cost transportation system that provides seniors, age 60 and over, who reside in the City, with transportation to a list of preapproved locations. Senior Mobility Program services are currently provided by OCY. The funding for the program is made available through OCTA’s Senior Mobility Program. OCTA funds 80% of the program expenses up to approximately $105,000 per year, and the City of San Clemente funds the remaining balance.

On August 20, 2024, the City Council awarded a Professional Services Agreement with California Yellow Cab (Cabco Yellow, Inc.), now operating as OCY Management, LLC, for Senior Mobility Program Transportation Services, for a three-year contract in an amount not to exceed City expenditures of $300,000 ($100,000 annually for three years). The contract also includes two additional one-year contract extensions, if approved by the City Manager.

Since the contract with Cabco Yellow, Inc. was executed in 2024, the company has reorganized and is now formally OCY Management, LLC. Staff was notified of this change and reviewed the Assignment and Assumption Agreement (Attachment 4). The cause of the reorganization was related to changes in California law and taxicab cooperatives. The assignment to OCY Management, LLC has not resulted in a change of management staff or resulted in any complaints or adverse issues.

For years, the program was limited by only allowing seniors to request transportation to the senior center and certain grocery stores on select days. In accordance with OCTA's recommendation to increase fund utilization to minimize potential loss of unused funding, the program was broadened to include nearly all destinations within San Clemente, available seven days a week from 7:00 610
Meeting Date: December 9, 2025 Agenda Item: 11O.

CITY OF SAN CLEMENTE 3
a.m. to 7:00 p.m., excluding holidays. Destinations now include grocery stores, medical appointments, beaches, parks, movie theaters, retail stores, restaurants, sports facilities, and more. See attachment five for recent ridership statistics.

At the time of budget approval and award of contract, the popularity and usage of the expanded program were unknown. Now that a full year has passed, Staff is able to assess program demand and return to the City Council to request the necessary appropriations. As a result, a First Amendment to the OCY contract for additional transportation services in the total amount of $131,000 is recommended. The amendment will fund the program through February 28, 2026.

The proposed first amendment to the contract also modifies the yearly not to exceed value of $100,000 per year for three years to a total cost of $355,000 over the entire modified contract term.

Staff is recommending termination of the current contract on February 28, 2026 so that the program can be reevaluated and a new Request for Proposals be brought back to the City Council for consideration in either January or February 2026. This will help keep the program expenditures aligned with the City’s Purchasing Policy and give the City Council the opportunity to make changes to the program. Since the unused OCTA surplus funds will be spent in approximately one to two years, staff will continue to monitor the program and its actual costs and include potential recommendations to modify the program to stay within acceptable program funding limits. Potential modifications to be considered at a future City Council meeting include charging a fee per ride, decreasing hours of operations, reducing service dates to just weekdays, and/or decreasing allowable destinations.

Council Options:
 Adopt Resolution 25-201 , which would authorize the City Manager to execute the First Amendment to the Professional Services Agreement with OCY Management LLC, approve supplemental appropriations in the amount of $104,800 to Senior Mobility Grant Fund Account Number 015-806-44723-000-00000 and $26,200 to General Fund Account Number 001-203- 47012-000-00000, and find the project statutorily exempt from the California Environmental Quality Act.
 Modify and adopt Resolution 25-201.
 Continue to the Item with direction to provide additional information.  Deny the request to amend the Professional Services Agreement and provide direction to staff on how to bring the program within current budget limitations.

Environmental Review/Analysis:

Staff recommends that the City Council determine that this project is statutorily exempt from the California Environmental Quality Act (CEQA) under Public Resources Code section 21080(b)(10) because it is a project for the institution or increase of passenger or commuter services on rightsof-way already in use and there is no direct or foreseeable indirect substantial impact on the environment.

Recommended Actions:
611
Meeting Date: December 9, 2025 Agenda Item: 11O.

CITY OF SAN CLEMENTE 4
Staff Recommendation ..recommendation
Staff recommends the City Council:

Adopt Resolution No. 25-201, which will:
.recommendation

1. Find the project statutorily exempt from CEQA under Public Resources Code section 21080(b)(10); and

2. Approve supplemental appropriations in the amount $104,800 from the Senior Mobility Fund (015) to Account No. 015-806-44723-000-00000 and $26,200 from the General Fund (001) to Account No. 001-203-47012-000-00000; and

3. Approve, and authorize the City Manager to execute, Amendment No. 1 to the Professional Services Agreement with OCY Management LLC for Senior Mobility Program transportation services modifying the yearly not to exceed contract amount from $100,000 to a total amount of $355,000 over the entire modified contract term, and revising the contract term to expire on February 28, 2026; and

4. Direct City staff to initiate a new Request for Proposal for Senior Mobility Services for implementation of a new contract starting March 1, 2026. ..end
Attachment:

1. Resolution No. 25-201

2. First Amendment to OCY (previously CYC) Contract

3. CYC Contract

4. OCY Management Assignment and Assumption Agreement

5. August 2025 Destination Statistics
Notification:

OCY Management LLC
612
Attachment 1
4860-5047-5367 v1
RESOLUTION NO. 25-201

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SAN CLEMENTE, CALIFORNIA, AUTHORIZING THE CITY

MANAGER TO APPROVE FIRST AMENDMENT TO

PROFESSIONAL SERVICES AGREEMENT WITH OCY

MANAGEMENT, LLC FOR SENIOR MOBILITY PROGRAM

TRANSPORTATION SERVICES, APPROVE
SUPPLEMENTAL APPROPRIATIONS TOTALING $131,000

FOR THE SENIOR MOBILITY PROGRAM, AND FINDING

THE ACTIONS STATUTORILY EXEMPT FROM THE

CALIFORNIA ENVIRONMENTAL QUALITY ACT UNDER
PUBLIC RESOURCES CODE SECTION 21080(B)(10)
WHEREAS, the City wishes to continue providing senior transportation services to help the gap between local fixed-route buses and ADA paratransit; and WHEREAS, on August 20, 2024, City Council approved a three-year contract with Cabco Yellow, Inc. dba California Yellow Cab for senior mobility program transportation services; and
WHEREAS, the City is required to match OCTA Senior Mobility Program grant funds with a 20 percent fair share contribution; and
WHEREAS, OCTA grant funding continued during the COVID period of low ridership and funds that were received were not spent; and WHEREAS, OCTA has informed the City that unused OCTA funds need to be spent in a timely manner or they may be required to be returned to OCTA; and WHEREAS, the City expanded its Senior Mobility Program rider destination locations per OCTA’s request to expend the unused OCTA funds; and WHEREAS, at the time of adoption of the Fiscal Year 24/25 budget and the Cabco Yellow, Inc. contract, the popularity and usage of the expanded program were unknown; and
WHEREAS, due to updates in California State Law regarding taxicab cooperatives, Cabco Yellow, Inc. has reorganized and an Assignment and Assumption Agreement was executed for OCY Management, LLC to be assigned and to assume the Senior Mobility Program contract; and
WHEREAS, due to the increased ridership of the program, a First Amendment to the Professional Services Agreement with OCY Management, LLC for Senior Mobility Program transportation services is necessary and is in the best 613
Resolution No. 25-201 Page 2
interests of the City and the public.

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

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

SECTION 2. Based on a review of the record as a whole, this project is hereby determined to be statutorily exempt from the California Environmental Quality Act (CEQA) under Public Resources Code section 21080(b)(10) because it is a project for the institution or increase of passenger or commuter services on rights-of-way already in use and there is no direct or foreseeable indirect substantial impact on the environment.

SECTION 3. A supplemental appropriation in the amount $104,800 from the Senior Mobility Fund Program (015) to account number 015-806-44723-000-00000) is hereby approved.

SECTION 4. A supplemental appropriation in the amount of $26,200 from the General Fund (001) to account number 001-203-47012-000-00000 is hereby approved.

SECTION 5. Amendment No. 1 to the Professional Services Agreement with OCY Management LLC for senior mobility transportation services is hereby approved to modify the yearly not to exceed cost from $100,000 to a total not to exceed amount of $355,000 for the entire contract term which will be modified to expire on February 28, 2026.

SECTION 6. The City Manager is hereby authorized and directed to execute Amendment No. 1 to the Professional Services Agreement with OCY Management LLC for senior mobility program transportation services in a form substantially similar to that presented to the City Council on December 9, 2025.

SECTION 7. The City Manager is hereby authorized and directed to adjust the Senior Mobility Program scope, dates of service, and/or times of services as necessary to stay within the not to exceed amount of the agreement as amended in accordance with Sections 5 and 6 above.

SECTION 8. The City Council directs City staff to rebid the senior mobility program transportation services for implementation of a new contract starting on March 1, 2026.

SECTION 9. The City Manager 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 and implement the senior mobility program through February 28, 2026.
614
Resolution No. 25-201 Page 3
SECTION 10. 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 December, 2025.
____________________________
Mayor of the City of San
Clemente, California
ATTEST:
__________________________
CITY CLERK of the City of
San Clemente, California
615
Resolution No. 25-201 Page 4

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. 25-201 was adopted at a regular meeting of the City Council of the City of San Clemente held on _______ day of December, 2025, 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
616
Attachment 2

FIRST AMENDMENT TO

PROFESSIONAL CONSULTANT SERVICES AGREEMENT FOR

SENIOR MOBILITY PROGRAM TRANSPORTATION SERVICES

This First Amendment to Professional Consultant Services Agreement for Senior Mobility Program Transportation Services (this “First Amendment”) is made and entered into on this ____ day of ________, 2025, by and between the CITY OF SAN CLEMENTE, a California municipal corporation (“City”) and OCY Management, LLC, a California limited liability company (“Consultant”).

R E C I T A L S:

A. City and Consultant’s predecessor in interest, Cabco Yellow, Inc. dba California Yellow Cab (CYC), entered into that certain Professional Consultant Services Agreement for Senior Mobility Program Transportation Services (the “Agreement”) on or about August 20, 2024.

B. On May 1, 2025, Consultant was assigned and assumed all CYC’s rights and obligations under the Agreement.

C. City and Consultant desire to amend the Agreement in the manner provided herein.

C O V E N A N T S:

1. Section 3.1.2 of the Agreement is hereby amended such that the term of the Agreement shall be from August 19, 2024 to February 28, 2026, unless earlier terminated as provided in the Agreement.

2. Section 3.3.1 of the Agreement is hereby amended to modify the yearly not to exceed amount of One Hundred Thousand ($100,000) to a total not to exceed amount of Three Hundred Fifty Five Thousand ($355,000) for the entire term of the Agreement.

3. Except as expressly amended by this First Amendment, the remaining portions of the Agreement shall remain in full force and effect.
[SIGNATURES ON FOLLOWING PAGE]
617
Attachment 2
IN WITNESS WHEREOF, the Parties hereto have caused this First Amendment to be duly executed on the respective dates set forth opposite of their signatures and is effective as of the date first entered above.

CITY OF SAN CLEMENTE
By:________________________________
Andy Hall, City Manager
ATTEST: Dated: _________________________
_____________________________
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

OCY Management, LLC, a California limited
liability company (“CONSULTANT”)
By:________________________________
William J. Rouse, Manager/Member
Dated: ___________________________
618
Attachment 3
619
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Attachment 4
647
648
OCY Management, LLC
May13, 2025
Fatana Temory
City of San Clemente
910 Calle Negocio
San Clemente, CA 92673
Dear Ms. Temory,
We’re writing to inform you of some exciting changes coming to Cabco Yellow, Inc. Recent developments in California law have required us to revise our business structure. As such, effective June 1, 2025, Cabco Yellow Inc., dba California Yellow Cab will be closing to make way for Orange County Yellow Cooperative, Inc (OCYC). OCYC is Orange County’s first and only Taxicab Cooperative, proudly owned entirely by drivers.

While Cabco Yellow is closing its doors, the new Co-Op has agreed to retain us as management under the banner of OCY Management, LLC. This will ensure seamless continuity of service in the days, months and years ahead.

Our staff, call center, and main office location will remain the same. In the upcoming days Melissa Gomez, Program Manager, will share company details such as a new W9, updated certificates of insurance, and whatever else is necessary to ensure our partnership continues and there is no contract interruption. We should commence the contract assignment process at this time. During the pendency of the assignment, Cabco Yellow can continue to service the contract while subcontracting its services to OCY Management, LLC.

For accounting purposes, please remit all future payment to OCY Management, LLC effective June 1, 2025.

We look forward to our continued partnership. Please do not hesitate to reach out should you have any questions.

Best Regards,
William J. Rouse
CEO
OCY Management, LLC
520 W. Dyer Road, Santa Ana, CA 92707
649
August 2025 Destination Statistics:

Attachment 5
650
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: December 9, 2025 Agenda Item: 11P.

Submitted By: Community Development
Prepared By: Jonathan Lightfoot, City Planner
Subject:
..titl e
CONSIDERATION OF A RESOLUTION APPROVING AN AMENDMENT TO CONTRACT C09-

16..body FOR THE PARKING LOT LOCATED AT 103 AND 107 AVENIDA GRANADA Fiscal Impact:

The City currently pays $800 per month to the property owner to provide public parking on these privately-owned lots. The proposed monthly lease rate increase is $100, from $800 to $900 per month, resulting in a $1,200 annual increase in City expenses during the 2026 calendar year.

There is sufficient funding within the budget for FY 25-26 from Account No. 001-151-43710-000- 00000, no supplemental appropriation is necessary. Additionally, this request includes a three percent (3%) annual increase for subsequent years. These future year increases are expected to be managed under the typically allocated annual budget for this program.

Summary:

The City Council is being asked to consider a proposed Amendment to a Parking Lot Sublease Agreement, Contract C09-16, (“Amendment”), with the property owner of two lots that currently provide public parking in the downtown area, located at 103 and 107 Avenida Granada. A location map of the subject lots, outlined in red, is provided in Figure 1, below. Approval of the proposed Amendment would maintain consistency with the City’s ongoing downtown parking initiatives and ensure the continued availability of adequate public parking resources.

Figure 1
651
Meeting Date: December 9, 2025 Agenda Item: 11P.

CITY OF SAN CLEMENTE 2
Background:

The City of San Clemente has leased the privately owned parking lots from the Nam Family Trust under a Parking Lot Sublease Agreement (“Sublease”) executed on March 17, 2009. On February 12, 2021, an Assignment and Assumption Agreement was completed, formally transferring the Agreement to the current owner and successor entity, Frank H.C. Nam Bypass Trust dated December 12, 2018 (“Sublessor”). The current Sublease provides for a fixed monthly lease rate, which has remained unchanged since 2009. Sublessor and City staff have worked cooperatively to update the Sublease, and now seek the City Council’s approval of the Amendment to adjust the monthly lease rate effective January 1, 2026, and to allow for future annual lease rate adjustments not to exceed three percent (3%) per year.

Discussion:

The City has leased the parking lot from the Nam Family Trust since 2009 to support public parking needs in the downtown area. On February 12, 2021, an Assignment and Assumption Agreement was executed, transferring all rights and obligations under the Sublease to a Sublessor.

The Sublessor has requested an increase to the monthly lease rate effective January 1, 2026, along with the ability to apply an annual rent adjustment of three percent (3%) per year, which is consistent with typical lease rate escalators. The proposed Amendment formally acknowledges and accepts this request. Overall, the proposed Amendment helps maintain the stability of a key public parking resource, aligns with the City’s downtown parking objectives, and ensures that the Sublease remains fiscally responsible and operationally effective.

Council Options:
 Approve the proposed Resolution No. 25-202 (Attachment 1) and authorize the City Manager to execute the First Amendment to the Parking Lot Sublease Agreement (Exhibit A of Attachment 1).
 Provide alternative direction to staff.
 Continue the item to a future agenda.
 Do not approve the proposed Resolution. This action may result in cancellation of the Sublease and the discontinued use of the parking lot for public parking purposes.

Environmental Review/Analysis:

Approval of this First Amendment does not qualify as a “project” under the California Environmental Quality Act (CEQA), pursuant to Section 15378(b)(2) of the CEQA Guidelines, as it involves an administrative activity necessary for the continuation of access to public parking.

Recommended Actions:

Staff Recommendation ..recommendation
Adopt Resolution No. 25-202, which will:
652
Meeting Date: December 9, 2025 Agenda Item: 11P.

CITY OF SAN CLEMENTE 3

1. Approve the Amendment to the Parking Lot Sublease Agreement between the City of San Clemente and the Frank H.C. Nam Bypass Trust, implementing the Sublessor’s requested lease rate adjustment effective January 1, 2026, and authorizing future annual lease rate increases of three percent (3%).

2. Authorize the City Manager to execute the Amendment and any necessary documents related to its implementation.
..end
Attachments:

1. Resolution No. 25-202
Exhibit A – Proposed First Amendment

2. Original Agreement, dated March 17, 2009

3. Assignment and Assumption Agreement, dated December 12, 2018

4. Notice of Rent Increase, dated November 25, 2025
Notification:

The Frank H.C. Nam Bypass Trust
653
Attachment 1
RESOLUTION NO. 25-202

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SAN CLEMENTE, CALIFORNIA, APPROVING THE FIRST

AMENDMENT TO A PARKING LOT SUBLEASE
AGREEMENT (CONTRACT C09-16) WITH THE FRANK
H.C. NAM BYPASS TRUST FOR THE REAL PROPERTY
LOCATED AT 103 AND 107 AVENIDA GRANADA, AND

AUTHORIZING THE CITY MANAGER TO EXECUTE THE

AMENDMENT
WHEREAS, the City of San Clemente (“City”) entered into a Parking Lot Sublease Agreement with the Nam Family Trust on March 17, 2009 (“Agreement”), for the continued operation and use of a parking lot to support public parking needs in the downtown area; and
WHEREAS, on February 12, 2021, an Assignment and Assumption Agreement was executed, transferring all rights and obligations under the Agreement to the Frank H.C. Nam Bypass Trust dated December 12, 2018 (“Sublessor”); and WHEREAS, the Sublessor has requested an increase in the monthly lease rate effective January 1, 2026, along with an annual lease rate adjustment not to exceed three percent (3%) per year; and
WHEREAS, the continued availability of this parking facility is beneficial to the City’s downtown parking initiatives and supports adequate public parking resources for residents, visitors, and local businesses; and
WHEREAS, approving the proposed lease rate adjustment is in the best interest of the City and the community.

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

SECTION 1. The City Council hereby approves the Amendment to the Parking Lot Sublease Agreement with the Frank H.C. Nam Bypass Trust dated December 12, 2018, adjusting the lease rate to $900 per month effective January 1, 2026, and authorizing future annual rent increases not to exceed three percent (3%) per year.

SECTION 2. The City Council hereby authorizes and directs the City Manager to execute such Amendment in a form substantially similar to the presented to the City Council on December 9, 2025.
654
Resolution No. 25-202 Page 2
SECTION 3. The City Council hereby authorizes and directs the City Manager to execute such additional documents and take such other and additional actions as are necessary and proper to carry out the purpose of this resolution.

SECTION 4. 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 _____________________, ____.

ATTEST:

City Clerk of the City of Mayor of the City of
San Clemente, California Clemente, California
655

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. 25-202 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
656

EXHIBIT A

AMENDMENT TO PARKING LOT SUBLEASE AGREEMENT
This Amendment to Parking Lot Sublease Agreement (“Amendment”) is made and entered into as of January 1, 2026 (“Effective Date”) by and between The Frank H.C. Nam Bypass Trust (“Sublessor”) and the City of San Clemente (“City” or “Sublessee”) for the parking lots located at 103 and 107 Avenida Granada. Sublessor and Sublessee may be collectively referred to as the “Parties.”

RECITALS
WHEREAS, the Parties entered into that certain Parking Lot Sublease Agreement, Contract C09-16, dated March 17, 2009 (“Agreement”); and WHEREAS, on February 12, 2021, an Assignment and Assumption Agreement was executed, pursuant to which the Agreement was assigned to and assumed by Sublessor as the successor entity; and
WHEREAS, the Parties desire to amend the Agreement to update the monthly lease rate (“Rent”) and clarify future lease rate adjustments.

NOW, THEREFORE, in consideration of the mutual promises and covenants herein, and for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree to amend the Agreement as follows:

AMENDMENTS
Section 1: Rent Adjustment. Effective January 1, 2026, the monthly rent described in Agreement Section 4.1 – Rent, shall be increased from Eight Hundred Dollars ($800) per month to Nine Hundred Dollars ($900) per month.

Section 2: Annual Rent Increase Multiplier. Effective January 1, 2027, the adjusted rent shall be increased by three percent (3%) annually.

Section 3: Except as expressly amended by this Amendment, all other terms and provisions of the Agreement shall remain unchanged and in full force and effect.

Section 4: This Amendment may be executed in counterparts, each of which shall be deemed an original. Electronic signatures shall be deemed valid and binding. 657
Section 5: The individuals executing this First Amendment on behalf of each Party represent and warrant to the other Party that they have the full authority and right to execute this First Amendment and bind the Party for whom they are signing and will defend and indemnify the other Party should such representation and warranty prove false.

IN WITNESS WHEREOF, the Parties hereto have caused this First Amendment to be duly executed on the respective dates set forth opposite of their signatures effective as of the Effective Date.

CITY OF SAN CLEMENTE
By: ________________________________
Andy Hall, City Manager
ATTEST: Dated: __________________
_____________________________
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

The Frank H.C. Nam Bypass Trust dated
December 27, 2018,
a California Trust
By:_____________________________
Emit Nam, Co-Trustee
Dated: __________________
658
.
' ... -=- .. ~ .,_f~·.
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,.1' Cof-;i
City Council Meeting Minutes - March 17, 2009 Page 26

7. CONSENT CALENDAR

MOTION BY COUNCILMEMBER ANDERSON, SECOND BY COUNCILMEMBER EGGLESTON, CARRIED 5-0, to approve the Consent Calendar, with the removal of ltems Land M.

ITEMS REMOVED FROM THE CONSENT CALENDAR FOR DISCUSSION
L. 204 South El Camino Real (Duke's Restaurant} - Lease Agreement to Provide for Conversion of Private Parking Resources to Public Parking Resources
Community Development Director Holloway responded to questions by Council and John Tengdin.

MOTION BY COUNCILMEMBER BAKER, SECOND BY COUNCILMEMBER
EGGLESTON, CARRIED 5-0, to approve, and authorize the Mayor to execute, a Lease Agreement, Contract No. C09-16, by and between the City of San Clemente and M.S. Clipper, Inc., dba Reno Room and Cocorenos, for the purpose of converting private parking resources at 204 South El Camino Real to public parking resources.

Attachment 2
659
Department:

Prepared By:

Subject:

Summary:

Recommended

AGENDA REPORT

SAN CLEMENTE CITY COUNCIL MEETING
Meeting Date: March 17, 2009
Community Development
James S. Holloway, Community Development Director
Agenda Item
Approvals:

CityManag
Finance

APPROVAL OF LEASE AGREEMENT TO PROVIDE FOR CONVERSION OF PRIVATE PARKING

RESOURCES TO PUBLIC PARKING RESOURCES IN THE DOWNTOWN AREA -AT DUKE'S

RESTAURANT,
7-L-
✓----
At the City Council's direction, the staff has been engaged in negotiations with private property owners in the Downtown area for the purpose of converting private parking resources to public parking resources by way of lease agreements between the City and private property owners. The basis for the Council direction is ongoing analysis that has been conducted over the last six years. The analysis has pointed out that parking resources have been poorly utilized for several reasons. First, public parking resources• have been poorly managed due to a lack of consistent enforcement of time regulations that are posted on the various public streets and parking lots in the Downtown area. This problem is being addressed by increased public education and enforcement, which commenced on January 2008. Second, private parking resources have been under utilized due to posted Pcl;rking restriction signs on many of the private lots located throughout the downtown. In fact, analysis has consistently shown that while public parking resources are utilized at nearly 100% capacity during peak times, at those same times, private parking resources are averaging about 50% capacity utilization.

By leasing private parking resources for use as public parking resources, the City hopes to address the second problem area described above. Five lease agreements have previously been approved by the City Council.

Action: STAFF RECOMMENDS THAT the City Council:
1) Approve the lease agreement with M. S. Clipper, Inc.

Fiscal Impact: A monthly rent of $800/month with some minor capital cost for signage, striping, etc.

All improvements and ongoing rent and maintenance will be paid by the $1 million set aside for this purpose by the City Council in 2006 ($700,000 +/- balances currently).

Attachments: Lease agreement:

A) M. S. Clipper, Inc.

Notification: M. S. Clipper, 204 S. El Camino Real, San Clemente, CA 92672 p :\ \jsh\09-jsh-120admin. doc
Community Development Agenda Report
660

PARKING LOT SUBLEASE AGREEMENT
This PARKING LOT SUBLEASE AGREEMENT ("Agreement") is made and entered into as of this __ day of ____ ., 2009, by and between M.S. CLIPPER, INC. dba RENO ROOM and COCORENOS the ______ ("Sublessor"), and the CITY OF SAN CLEMENTE, a California municipal corporation ("City"). Sublessor and City are hereinafter sometimes referred to collectively as "parties" and individually as a "party." A. Sublessor is the lessee of that certain real property located at 204 South El Camino Real in the downtown area of the City of San Clemente, County of Orange, State of California (the "Property").

B. Sublessor has offered to sublease to City and City is interested in subleasing from Sublessor, those portions of the Property more particularly depicted in Exhibit "A", attached hereto and incorporated by this reference (the "Premises"), for the purpose of providing public parking according to the terms and conditions of this Agreement.

COVENANTS
Based upon the foregoing Recitals, which. are incorporated into this Agreement by reference, and for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged by both parties, Sub1essor and City hereby agree as follows:

1. Right to Sublease Parking/Peaceable Possession. Sublessor hereby warrants and represents that it has the authority to sublease the Premises to City for public parking, ingress, and egress under the terms contained in this Agreement, and to execute this Agreement.

Sublessor further covenants and agrees that City, upon performing and obse¥Ving the terms and conditions of this Agreement, shall have the right to hold, occupy, and enjoy the Premises for the Permitted Uses during the Term without any interruption or hindrance from Sublessor, its successors or assigns, or any person or entity lawfully claiming by or through it. .

2. Grant of Sublease. Sublessor hereby subleases to City, and City hereby subleases from Sublessor, the Premises and all landscaping, improvements, and structures that will be used for the Permitted Uses (defined below) according to the terms and conditions of this Agreement.

3.1 Initial Term. The sublease of the Premises will commence on April 1, 2009 (the "Commencement Date"), and will continue on a month~to~month basis until tenninated after either party gives sixty (60) day's written notice of termination to the other party as provided for in Section 3.2 below.

3.2 Termination of Sublease. Either party, in its sole and absolute discretion, may terminate the sublease of the Premises at any time by delivering to the other party written notice thereof no later than sixty (60) days prior to the date of termination. 661

4. Rent and Security Deposit.

4.1 Rent. City shall pay to Sublessor as rent for the Premises eight hundred Dollars ($800.00) per month (the "Rent"). The first payment of Rent shall be prorated pursuant to Section 4.4 below (if applicable) and shall be delivered to Sub lessor no later than the date that is three (3) weeks after the Commencement Date. Each and every subsequent payment of Rent· shall be delivered to Sub lessor no later than the tenth (10th) day of the month for which the Rent is due.

4.2 Delivery. All payments and charges due under this Agreement shall be paid by City in lawful money of the United States of America, which shall be legal tender at the time of payment, at: M. S. Clipper. hie.
204 S. El Camino Real
San Clemente. California· 92672
or to such other person or at such other place as Sublessor may from time to time designate in writing. ~ublessor shall promptly deliver to City any change in address or person responsible for receiving payment of Rent. City shall not be in default of this Agreement if Sub lessor fails to receive any payment of Rent when Sublessor fails to promptly deliver any change in address or person responsible for receiving payment.

4.3 Prorated Amounts. Any Rent due under this Agreement for any fractional part of a calendar month shaJJ be prorated based on the ratio that the number of days in that month during the Term bears to the total number of days in that month.

5. Permitted Uses. For the duration of the Term, the Premises shall be used for parking by the general public and incidental uses relating thereto (the "Permitted Uses"), and for no other purpose, subject to the following conditions: (i) no overnight parking shall be permitted except by special mirror hanger permit for patrons advised not to drink and drive; (ii) parking for each vehicle used by a member of the general public shall be limited to three (3) hours for any . twenty-four (24) hour period, provided, however, that the time limits may be adjusted by mutual consent of the parties;· (iii) any vehicle [ up to eight (8)] used by current employees of the Reno Room may park all day on the Premises, but only if such vehicle has a mirror hanger permit issued by the City for such all day use clearly posted; and (iv) any other rules and regulations that City may impose on the general public for the use of the Premises.

6. Improvement and Maintenance of Premises. City, at its own cost and expense, and in its sole and absolute discretion, may itpprove the Premises for use as a public parking lot, by undertaking improvements which could include ·but not be limited to the following:
(i) surfacing the parking lot; (ii) striping parking lot spaces; and (iii) providing signage, as needed. Signage shall indicate, where City determines is appropriate, that the parking lot is open for use by the general public.

7. Insurance.
-2-
"1 L-3
662

7.1 General Liability. City shall obtairi and keep in force and effect for the entire Term a commercial general liability insurance policy which names Sublessor as an additional insured, protecting against claims of bodily 'injury, personal injury and property damage based upon, involving, or arising out of the use or maintenance of the Premises by City.

Such insurance shall be on an occurrence basis providing single limit coverage in an amount not less than One Million Dollars ($1,000,000.00) per occurrence.

7.2 Certificates. City shall provide to Sublessor a certificate of insurance evidencing insurance coverage as provided herein no later than the date that is three (3) weeks after the Commencement Date, and thereafter as requested by Sublessor until the termination of this Agreement.

7.3 Self.Insurance. In lieu of the obligations set forth in Section 7.1 and 7.2 above, City may satisfy its obligation to provide general liability insurance for the Premises through a self•insurance program, but only if City remains self.insured for no less than One Million Dollars ($1,000,000.00) in liability claims. In the event that City is self-insured, City shall deliver to Sublessor, no later than the date that is three (3) weeks after the Commencement Date, a statement, certificate, or other proof of financial responsibility, duly acknowledged by City's authorized representative, for One Million Dollar ($1,000,000.00) in self-insurance.

8. Indemnity. Sublessor shall indemnify, defend, and hold harmless City and its officers, officials, employees, agents, or representatives (collectively the ''City lndemnitees") against any and all claims, demands, causes of action, damages, costs, expenses, losses and liabilities, at law or in equity arising out of or relating to (i) any claim that Sublessor lacked the legal or equitable right to sublease to city the Premises; and (ii) the acts or omissions of Sublessor or Owner or either of their officers, officials, employees, agents, or representatives acting in an official capacity. City shall indemnify, defend, and hold harmless Sublessor and its officers, officials, employees, agents, or representatives ( collectively the "Sublessor Indemnitees") against any and all claims, demands, causes of action, damages, costs, expenses, losses and liabilities, at law or in equity arising out of or relating to (i) any activity or work done, permitted, or suffered on the Premises; (ii) use of the Premises by City and its officers, officials, employees, agents, representatives, invitees, patrons, or sub-lessees; or (iii) the acts or omissions of City or its officers, officials, employees, agents, or representatives acting in an official capacity. This indemnity shall specifically include the right to indemnification for any claims, demands, causes of action, damages, costs, expenses, lo'sses and liabilities, at law or in equity arising from the acts or omissions, whether negligent, reckless, willful or otherwise, of any member of the public (as that term is defined below) while that member of the public is or was on or about the Premises. Notwithstanding the forgoing sentences in this Section 7, City shall have no obligation to indemnify, defend, and hold harmless the Sublessor Indemnitees for any claim, demand, cause of action, damages, costs, expenses, losses and liabilities arising from or relating to (i) a pre•existing environmental condition concerning hazardous substances on or under the Premises; or (ii) any negligent, reckless, or willful act or omission of Sublessor Indemnitee(s) while on or about the Premises.

For purposes this Agreement, the term "hazardous substance" shall mean any substance or material defined or designated as hazardous or toxic waste, hazardous or toxic material, a hazardous or toxic substance, or other similar term by any federal, state. or local ·3-
663
environmental statute, regulation, or ordinance. For purposes of this Section 8, the term "member of the public" shall mean any person other the officers, officials, employees, agents, or representatives, acting in an official capacity, of Sublessor or City.

9. Default. The occurrence of .any one or more of the following events shall constitute a material default ("default"): (i) the vacating or abandonment of the Premises by City; (ii) the failure by City to pay Rent when due pursuant to this Agreement, and such failure continues for a period of ten (l 0) days after delivery of written notice from Sublessor to City of said failure; and (iii) the failure by either party to observe or perfonn any of the obligations of this Agreement to be observed or performed by- the responsible party ( other than the obligation described in clause (ii) above), where such failure either: (A) continues for a period· of thirty (30) days after delivery of written notice thereof from the party seeking performance, or (B) if performance cannot be completed with thirty (30) days, cure of such failure has not commenced within thirty (30) days after delivery of written notice thereof and diligently prosecuted until completion within sixty (60) days of the expiration of the thirty (30) day period (for a total of ninety (90) days). Upon an event of default and after the expiration of the applicable cure period, this Agreement and City's right to sublease the Premises shall terminate upon the date that is one day after the date of expiration of the applicable cure period unless the party in default cures the default within the applicable cure period.

I 0. Miscellaneous.

I 0.1 Binding on Heirs. This Agreement shall be binding upon the parties hereto and inure to their respective representatives, transferees, successors, and assigns.

10.2 Litigation Expenses. If either party to this Agreement commences an action against the other party to· this Agreement arising out of or in connection with this Agreement, the prevailing party shall be entitled to recover reasonable attorneys' fees, expert witness fees, costs of investigation, and costs of suit from the losing party.

I 0.3 Notices. All notices required to be delivered under this Agreement to another party must be in writing and shall be effective: (i)' when personally delivered by the other party or messenger or courier thereof; (ii) three (3) business days after deposit in the United States mail, registered or certified; (iii) one (1) business day after deposit before the daily deadline time with a reputable overnight courier or service; or (iv) upon receipt of a telecopy or fax transmission, provided a hard copy of such transmission shall be thereafter delivered in one of the methods described in the foregoing (i) through (iii); in each case postage fulJy prepaid and addressed to the respective parties as set forth below or to such other address and to such other persons as the parties may hereafter designat~ by written notice to the other parties hereto:

To City: City of San Clemente
City Hall
100 A venida Presidio
San Clemente, CA 92672
Attn: City Manager
Telecopier: (949) 361-8316
-4-
lL-5
664
Copy to:

To Sublessor:

Copy to:

Rutan & Tucker, LLP
~11 Anton Boulevard, Suite 1400
Costa Mesa, CA 92626
Attn: Jeffrey M. Odennan, Esq.

Telecopier: (714) 546-903 5
M. S. Clipper, Inc.
204 S. El Camino Real
San Clemente, CA 92672
None
Attn: -------

10.4 Entire Agreement, Waivers, and Amendments. This Agreement incorporates all of the terms and conditions mentioned herein, or incidental hereto, and supersedes all negotiations and previous agreements between the parties ·with respect to all or part of the subject matter hereof. All waivers of the provisions of this Agreement must be in writing and signed by the appropriate authorities of the party to be charged. A waiver of the breach of the covenants, conditions or obligations under this Agreement by either party shall not be construed as a waiver of any succeeding breach of the same or other covenants, conditions or obligations of this Agreement. Any amendment or modification to this Agreement must be in writing and executed by the appropriate authorities of City and Sublessor.

I 0.5 Interpretation; Governing Law. . This Agreement shall be construed according to its fair meaning and as if prepared by all of the parties hereto. This Agreement shall be construed in accordance with the internal laws of the State of California without regard to any conflict of law principles in effect at the time of the execution of this Agreement.

10.6 Severability. If any provision of this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions will nevertheless continue in full force without being impaired or invalidated in any way.

10. 7 Force Majeure. In the event that either party is delayed, hindered, or prevented from performing any act required hereunder by reason of strikes, lockouts, or other labor troubles, inability to procure or shortage of materials or supplies, failure of power, energy shortages, restrictive governmental laws or regulations, inclement weather, fire, explosion, earthquake or other casualty, riots, insurrection, war, act of God, or other causes that are without - the fault and beyond the reasonable control of such Party, then the performance of the party obligated to perform under this Agreement shan be excused for and extended by the period of such delay.
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665

10.8 Headings. Section and Subsection headings in this Agreement have been inserted solely for the convenience of the parties, and such captions, headings, and titles shall in no way define or limit the scope, intent, or application of any provision of this Agreement.

10.9 Time is of the Essence. Time is of the essence with respect to every pro-vision of this Agreement.

10.10 Computation of Time. Unless otherwise specified in this Agreement, use of the word "days" shall mean calendar days, and any provision requiring the computation of time shall be based upon a standard calendar of three hundred sixty five and one-quarter (365 ¼) days.

10.11 Execution in Counterpart. This Agreement may be executed in several counterparts, and all so executed shall constitute one agreement binding on all parties hereto, notwithstanding that all parties are not signatories to the original or the same counterpart. [signatures on ~1ext page]
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first set forth above.

ATTEST:

City Clerk
APPROVED AS TO FORM:

Jeffrey M. Odennan
City Attorney
"CITY"
CITY OF SA_N CLEMENTE,
a California municipal corporation
By: ________________ _
Mayor
"OWNER"
By:, _______________ _
Its: _______________ _
By: ______________ _
Its: _______________ _
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667
EXHIBIT "A"

DEPICTION OF THE PREMISES
EXHIBIT "A"
~1-
668

EXHIBIT A
7L-10
669

SCOTT KELLY
151 W AVENIDA JUNIPERO
SAN CLEMENTE, CA 92672

CHUCK NAREY
2340 S EL CAMINO REAL
SAN CLEMENTE, CA 92672

GRAY MCELROY

AVE NIDA SAN PABLO
SAN CLEMENTE, CA 92672
17W
CLEMENTE, CA 92672

BARBARA SCHEIN MAN
654 CAMINO DE LOS MARES
SAN CLEMENTE, CA 92673

RANDY AND TONI DIETZ
555 EL CAMINO REAL, #A288
SAN CLEMENTE, CA 92672

WAYNE DEITZ

W AVENIDA RAMONA
SAN CLEMENTE, CA 92672

NICK AND DENISE THATCHER
108 AVE NIDA SAN PABLO
SAN CLEMENTE, CA 92672

ANDRE MEYER
20 W AVENIDA SAN GABRIEL
SAN CLEMENTE, CA 92672

GRAHAM ESPLEY-JONES
2665 BAYSHORE DR
NEWPORT BEACH, CA 92663
14W
CLEMENTE, CA 92672

GARO BABIKIAN
24951 SEAGATE DR
DANA POINT, CA 92629
23 W IDA SAN GABRIEL
CLEMENTE, CA 92672

JOHN TENGDIN
2859 CALLE HERALDO
SAN CLEMENTE, CA 92673

RICHARD WHITE
104 E AVENIDA SAN PABLO
SAN CLEMENTE, CA 92672

CHERYL HOPPER
3351 CALLE LA VETA
SAN CLEMENTE, CA 92672

JAMES MICHAEL MIRANDA
311 AVENIDA CABRILLO, APT B
SAN CLEMENTE, CA 92672

CATHY LEE, SOUTH COUNTY SENIOR SERVICES
24300 EL TORO RD, BLDG A, STE 2000
EL TORO, CA 92637

ALEX AND GEORGIA ALEXANDER
121 AVENIDA TRIESTE
SAN CLEMENTE, CA 92672

ROGER BLICKHAN
935 AVENIDA SALVADOR
SAN CLEMENTE, CA 92672

JOHN PERSICH
211 CALLE DELICADA
SAN CLEMENTE, CA 92672

ROSEANNE KOTZER
25598 PASEO LA VIS
LAGUNA NIGUEL, CA 92677

ALEX ALEXANDER II
121 AVENIDA TRIESTE
SAN CLEMENTE, CA 92672

ABRHIL ARVIZU
BUTSKO UTILITY DESIGN, INC.
1291 PUERTA DEL SOL, STE 200
SAN CLEMENTE, CA 92673
670
City of San Clemente
City Clerk
Joanne Baade, City Clerk/Executive Analyst
Phone: (949) 361-8345 Fax: (949) 361-8309
[email protected]
March 10, 2008
M. S. Clipper, Inc.
204 South El Camino Real
San Clemente, CA 92672
Enclosed is a copy of the Agenda Report regarding 204 South El Camino Real (Duke's Restaurant) - Lease Agreement to Provide for Conversion of Private Parking Resources to Public Parking Resources, for the City Council meeting of March 17, 2009 to be held in the Council Chambers, located at 100 Avenida Presidio, San Clemente, California. The City Council meeting will commence at 7 :00 p.m. This item is listed on the agenda under Consent Calendar 7-L.

In order to assure that the City Councilmembers have adequate time to consider written materials concerning agenda items, it is strongly recommended that such materials be submitted to my office by noon the day preceding the City Council meeting.

If you have any questions prior to the City Council meeting, please contact my office at (949) 361-8345.

Sincerely,
,..----£t./ __-L / ✓ ./ / (::~---/ffa4·t,_"f~--l.___
/ Joanne Baade
City Clerk
Enclosures
City Clerk 100 Avenida Presidio San Clemente, CA 92672
http:// san-clemente. org
671
~· - ...... '

PARKING LOT SUBLEASE AGREEMENT
(!_ otj-,;t,
(!r!; J-/7-tY/
This P ARK~G LOT SUBLEASE AGREEMENT ("Agreement") is made and entered into as of this~ day of~ , 2009, by and between M.S. CLIPPER, INC. dba RENO ROOM and COCORENOS the ______ ("Sublessor"), and the CITY OF SAN CLEMENTE, a California municipal corporation ("City"). Sublessor and City are hereinafter sometimes referred to collectively as "parties" and individually as a "party." A. Sublessor is the lessee of that certain real property located at 204 South El Camino Real in the downtown area of the City of San Clemente, County of Orange, State of California (the "Property").

B. Sublessor has offered to sublease to City and City is interested in subleasing from Sublessor, those portions of the Property more particularly depicted in Exhibit ''A",. attached hereto and incorporated by this reference (the "Premises"), for the purpose of providing public parking according to the terms and conditions of this Agreement. -

COVENANTS
Based upon the foregoing Recitals, which are incorporated into this Agreement by reference, and for good and .valuable consideration, the receipt and sufficiency of which is hereby acknowledged by both parties, Sublessor and City hereby agree as follows:

Sublessor further covenants and agrees that City, upon performing and observip.g the terms and conditions of this Agreement, shall have the right to hold, occupy, and enjoy the Premises for the Permitted Uses during the Term without any interruption or hindrance from Sublessor, its successors or assigns, or any person or entity lawfully claiming by or through it. .

2. Grant of Sublease. Sublessor hereby subleases to City, and City hereby subleases from Sublessor, the Premises and all landscaping, improvements, and structures that will be used for the Permitted U~es ( defined below) according to the terms anq. cpnditions of this Agreement.

3.1 Initial Tenn. The sublease of the Premises will commence on April I. 2009 (the "Commencement Date"), and will continue on a month-to-month basis until terminated after either party gives sixty (60) day's written notice of termination to the other party as provided for in Section 3 .2 below.

3.2 Termination of Sublease. Either party;in its sole and absolute discretion, may terminate th~ sublease of the Premises at any time by delivering to the other party written notice thereof no later than sixty (60) days prior to the date of termination. 672

4. Rent and Security Deposit.

4.1 Rent. City shall pay to Sublessor as rent for the Premises eight hundred · Dollars ($800.00) per month (the "Rent"). The first payment of Rent shall be prorated pursuant to Section 4.4 below (if applicable) and shall be delivered to Sublessor no later than the date that is three (3) weeks after the Commencement Date. Each and every subsequent payment of Rent shall be delivered to Sublessor no later than the tenth (10th) day of the month for which the Rent is due.

4.2 Delivery. All payments and charges due under this Agreement shall be paid by City in lawful money of the United States of America, which shall be legal tender at the time of payment, at: M. S. Clipper, Inc.
204 S. El Camino Real
San Clemente. California 92672
or to such other person or at such other place as Sublessor may from time to time designate in writing. Sublessor shall promptly deliver to City any change in address or person responsible for receiving payment of Rent. City shall not be in default of this Agreement if Sublessor fails to receive any payment of Rent when Sublessor fails to promptly deliver any change in address or person responsible for receiving payment.

4.3 Prorated Amounts. Any Rent due under this Agreement for any fractional part of a calendar month shall be prorated based on the ratio that the number of days in that month during the Tenn bears to the total number of days in that month.

5. Permitted Uses. For the duration of the Term, the Premises shall be used for parking by the general public and incidental uses relating thereto (the "Permitted Uses"), and for no other purpose, subject to the following conditions: (i) no overnight parking shall be permitted except by special mirror hanger permit for patrons advised not to drink and drive; (ii) parking for each vehicle used by a member of the general public shall be limited to three (3) hours for any twenty-four (24) hour period, provided, however, that the time limits may be adjusted by mutual consent of the parties; (iii) any vehicle [up to eight (8)] used by current employees of the Reno Room may park all day on the Premises, but only if such vehicle has a mirror hanger permit issued by the City for such all day use clearly posted; and (iv) any other rules and regulations that City may impose on the general public for the use of the Premises.

6. Improvement and Maintenance of Premises. City, at its own cost and expense, and in its sole and absolute discretion, may improve the Premises for use as a public parking lot, by undertaking improvements which could include but not be limited to the following:
(i) surfacing the parking lot; (ii) striping parking lot spaces; and (iii) providing signage, ·as needed. Signage shall indicate, where City determines is appropriate, that the parking lot is open for use by the general public.

7. Insurance.
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7 .1 General Liability. City shall obtairi and keep in force and effect for the entire Term a commercial general liability insurance policy which names Sublessor as an additional insured, protecting against claims of bodily injury, personal injury and property damage based upon, involving, or arising out of the use or maintenance of the Premises by City.

Such insurance shall be on an occurrence basis providing single limit coverage in an amount not less than One Million Dollars ($1,000,000.00) per occurrence.

7.3 Self-Insurance. In lieu of the obligations set forth in Section 7.1 and 7.2 above, City may satisfy its obligation to provide general liability insurance for the Premises through a self-insurance program, but only if City remains self-insured for no less than One Million Dollars ($1,000,000.00) in liability claims. In the event that City is self-insured, City shall deliver to Sublessor, no later than the date that is three (3) weeks after the Commencement Date, a statement, certificate, or other proof of financial responsibility, duly acknowledged by City's authorized representative, for One Million Dollar ($1,000,000.00) in self-insurance.

8. Indemnity. Sublessor shall indemnify, defend, and hold harmless City and its officers, officials, employees, agents, or representatives ( collectively the "City lndemnitees") against any and all claims, demands, causes of action, damages, costs, expenses, losses and liabilities, at law or in equity arising out of or relating to (i) any claim that Sublessor lacked the legal or equitable right to sublease to city the Premises; and (ii) the acts or omissions of Sublessor or Owner or either of their officers, officials, employees, agents, or representatives acting in an official capacity. City shall indemnify, defend, and hold harmless Sublessor and its officers, officials, employees, agents, or representatives ( collectively the "Sub lessor Indemnitees") against any and all claims, demands, causes of action, damages, costs, expenses, losses and liabilities, at law or in equity arising out of or relating to (i) any activity or work done, pennitted, or suffered on the Premises; (ii) use of the Premises by City and its officers, officials, employees, agents, representatives, invitees, patrons, or sub•lessees; or (iii) the acts or omissions of City or its officers, officials, employees, agents, or representatives acting in an official capacity. This indemnity shall specifically include the right to indemnification for any cl.aims, demands, causes of action, damages,- costs, expenses, losses and liabilities, at law or in equity arising from the acts or omissions, whether negligent, reckless, willful or otherwise, of any member of the public (as that term is defined below) while that member of the public is or was on or about the Premises. Notwithstanding the forgoing sentences ip. this Section 7, City shall have no obligation to indemnify, defend, and hold harmless the Sublessor Indemnitees for any claim, demand, cause of action, damages, costs, expenses, losses and liabilities arising from or relating to (i) a pre:.existing environmental condition concerning hazard~us substances on or under the Premises; or (ii) any negligent, reckless, or willful act or omission of Sublessor Indeninitee(s) while on or about the Premises.
-For purposes this Agreement, the term "hazardous substance" shall mean any substance or material defined or designated as hazardous or toxic waste, hazardous or toxic material, a hazardous or toxic substance, or other similar term by any federal, state, or local -3-
674
environmental statute, regulation, or ordinance. For purposes of this Section 8, the term "member of the public" shall mean any person other the officers, officials, employees, agents, or representatives, acting in an official capacity, of Sublessor or City.

9. Default. The occurrence of any one or more of the following events shall constitute a material default ("default"): (i) the vacating or abandonment of the Premises by City; (ii) the failure by City to pay Rent when due pursuant to this Agreement, and such failure continues for a period of ten (10) days after delivery of written notice from Sublessor to City of said failure; and (iii) the failure by either party to observe or perform any of the obligations of this Agreement to be observed or performed by the responsible party ( other than the obligation described in clause (ii) above), where such failure either: (A) continues for a period· of thirty (30) days after delivery of written notice thereof from the party seeking performance, or (8) if performance cannot be completed with thirty (30) days, cure of such failure has not commenced within thirty (30) days after delivery of written notice thereof and diligently prosecuted until completion within sixty (60) days of the expiration of the thirty (30) day period (for a total of ninety (90) days). Upon an event of default and after the expiration of the applicable cure period, this Agreement and City's right to sublease the Premises shall terminate upon the date that is one day after the date of expiration of the applicable cure period unless the party in default cures the default within the applicable cure period.

10. Miscellaneous.

10.1 Binding on Heirs. This Agreement shall be binding upon the parties hereto and inure to their respective representatives, transferees, successors, and assigns.

10.2 Litigation Expenses. If either party to this Agreement commences an action against the other party to this Agreement arising out of or in connection with this Agreement, the prevailing party shall be entitled to recover reasonable attorneys' fees, expert witness fees, costs of investigation, and costs of suit from the losing party.

I 0.3 Notices. All notices required to be delivered under this Agreement to another party must be in writing and shall be effective: (i) when personally delivered by the other party or messenger or courier thereof; (ii) three (3) business days after deposit in the United States mail, registered or certified; (iii) one (1) business day after deposit before the daily deadline time with a reputable overnight courier or service; or (iv) upon receipt of a telecopy or fax transmission, provided a hard copy of such transmission shall be thereafter delivered in one of the methods described in the foregoing (i) through (iii); in each case postage fully prepaid and addressed to the respective parties as set forth below or to such other address and to such other persons as the parties may hereafter designate by written notice to the other parties hereto:

To City: City of San Clemente
City Hall
100 A venida Presidio
San Clemente, CA 92672
Attn: City Manager
Telecopier: (949) 361-8316
675
Copy to:

To Sublessor:

Copy to:

Rutan & Tucker, LLP
611 Anton Boulevard, Suite 1400
Costa Mesa, CA 92626
Attn: Jeffrey M. Oderman, Esq.

Telecopier: (714) 546-9035
M. S. Clipper, Inc.
204 S. El Camino Real
San Clemente, CA 92672
None
Attn: -------
I 0.4 Entire Agreement. Waivers, and Amendments. This Agreement incorporates all of the terms and conditions mentioned herein, or incidental hereto, and supersedes all negotiations and previous agreements between the parties with respect to all or part of the subject matter hereof. All waivers of the provisions of this Agreement must be in writing and signed by the appropriate authorities of the party to be charged. A waiver of the breach of the covenants, conditions or obligations under this Agreement by either party shall not be construed as a waiver of any succeeding breach of the same or other covenants, conditions or obligations of this Agreement. Any amendment or modification to this Agreement must be in writing and executed by the appropriate authorities of City and Sublessor.

10.5 Inter_pretation; Governing Law. This Agreement shall be construed according to its fair meaning and as if prepared by all of the parties hereto. This Agreement shall be construed in accordance with the internal laws of the State of California without regard to any conflict of law principles in effect at the time of the execution of this Agreement.

I 0.6 Severability. If any provision of this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable;· the remaining provisions will nevertheless continue in full force without being impaired or invalidated in any way.

10. 7 Force Majeure. In the event that either party is delayed, hindered, or prevented from performing any act required hereunder by re~on of strikes, lockouts, or other labor troubles, inability to procure or shortage of materials or supplies, failure of power, energy shortages, restrictive governmental laws or regulations, inclement weather, fire, explosion, earthquake or other casualty, riots, insurrection, war, act o~ God, or other causes that are without the fault and beyond the reasonable control of such Party, then the performance of the party obligated to perform under this Agreement shall be excused for and extended by the period of such delay.
676

10.9 Time is of the Essence. Time is of the essence· with respect to every provision of this Agreement.
l O. l O Computation of Time. Unless otherwise specified in this Agreement, use of the word "days" shall mean calendar days, and any provision requiring the computation of time shall be based upon a standard calendar of three hundred sixty five and one-quarter (365 ¼) days.

10.11 Execution in Counterpart. Th_is Agreement may be executed in several counterparts, and all so executed shall constitute one agreement binding on all parties hereto, notwithstanding that all parties are not signatories to the original or the same counterpart. [ signatures on next page]
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first set forth above.
"CITY"

CITY OF SAN CLEMENTE,
a California municipal corporation
By.

Mayor
~ ~ ATTEST:
~ALll~4 ~ ~~;........;..._ ______ _
APPROVED AS TO FORM:
ffr y M. Werman
ity Attorney
"OWNER"
By: _______________ _
Its: ---------------
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. . '· .

EXHIBIT "A"

DEPICTION OF THE PREMISES
EXHIBIT "A"
·1-
679
i .. •·

EXHIBIT A
680
•
To:

From
Subject:

Copies:

Memorandum
City Clerk
3/30/2009
Jim Holloway, Community Development Director
Rita Mueller, Records Management Coord.

Parking Lot Sublease Agreement - Clipper dba Reno Room and Cocorenos
Lynne Fuller
Attached are two fully executed contracts for the above subject. Please forward one original to the contractor and retain one document for your files.

I have retained the original document for the City Clerk's files.

City Clerk Memorandum
681
Attachment 3
682
683
684
685
Attachment 4
686
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: December 9, 2025 Agenda Item: 11Q.

Submitted By: Public Works
Prepared By: Shawn Ryan, Deputy Public Works Director
Subject:
..titl e
CONSIDERATION OF A RESOLUTION ADOPTING FISCAL YEAR 2024-2025 MEASURE M2 EXPENDITURE REPORT FOR THE CITY OF SAN CLEMENTE ..body
Fiscal Impact:

This action does not require funding; however, the Orange County Transportation Authority (OCTA) may suspend or delay the allocation of Transportation and M2 Local Fair Share funds to the City if this required expenditure report is not submitted to OCTA.

Summary:

Staff recommends that the City Council approve the Measure M2 Expenditure Report for Fiscal Year 2024-2025. Adoption of the attached resolution and submittal of the attached M2 Expenditure Report by December 31, 2025 will ensure that the City is in compliance with the annual expenditure report requirement. OCTA reviewed a draft of the Expenditure Report and had no objections.

Background:

In November 2006, Orange County voters approved a renewal of Measure M, commonly referred to as Measure M2, to extend the half-cent sales tax for local transportation improvements from 2011 to 2041. Measure M2 requires that each jurisdiction adopt and provide to the OCTA an annual expenditure report to account for M2 funds, developer/traffic impact fees, and funds expended by the jurisdiction to satisfy maintenance of effort requirements. The report is required within six months of each jurisdiction's fiscal year-end.

Council Options:
• Adopt Resolution No. 25-203, approving and authorizing staff to submit the FY 2024-2025 M2 Expenditure Report.
• Modify and adopt Resolution No. 25-203.
• Deny Resolution No. 25-203. This would result in the City losing its eligibility to receive Measure M2 funds.

Environmental Review/Analysis:

Approval of the attached Resolution is not a “project’ under the California Environmental Quality Act (CEQA) Guideline Section 15378 (14 CCR 15378). The City’s reporting of M2 expenditures has no potential result in either a direct or physical change in the environment or a reasonably foreseeable indirect physical change in the environment. If any project continues to move 687
Meeting Date: December 9, 2025 Agenda Item: 11Q.

CITY OF SAN CLEMENTE 2
forward, it will be designed and evaluated under CEQA and presented to the City Council at a later date for approval.

Recommended Actions:

Staff Recommendation
..recommendation
STAFF RECOMMENDS THAT the City Council adopt Resolution No. 25-203, which would approve and authorize staff to submit the FY 2024-2025 M2 Expenditure Report to OCTA before December 31, 2025.
..end
Attachment:

1. Resolution No. 25-203

2. M2 Expenditure Report FY 2024-2025
Notification:

None.
688
Attachment 1
RESOLUTION NO. 25-203

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SAN CLEMENTE, CALIFORNIA, ADOPTING THE FISCAL
YEAR 2024-2025 MEASURE M2 EXPENDITURE REPORT

FOR THE CITY OF SAN CLEMENTE
WHEREAS, local jurisdictions are required to meet eligibility requirements and submit eligibility verification packages to the Orange County Transportation Authority (OCTA) in order to remain eligible to receive M2 funds; and
WHEREAS, local jurisdictions are required to adopt an annual M2 Expenditure Report as part of one of the eligibility requirements; and WHEREAS, local jurisdictions are required to account for Net Revenues, developer/traffic impact fees, and funds expended by local jurisdiction in the M2 Expenditure Report that satisfy the Maintenance of Effort requirements; and WHEREAS, the M2 Expenditure Report shall include all Net Revenue fund balances, interest earned, and expenditures identified by type and program or project; and WHEREAS, the M2 Expenditure Report must be adopted and submitted to the OCTA each year within six months of the end of the local jurisdiction’s fiscal year to be eligible to receive Net Revenues as part of M2; and
WHEREAS, the City Council has reviewed and considered any public comment on the M2 Expenditure Report for Fiscal Year 2024-2025 that was presented to the City Council on December 9, 2025.

NOW, THEREFORE, the City Council for the City of San Clemente does hereby find, determine and resolve and inform OCTA that:

SECTION 1. The M2 Expenditure Report is in conformance with the template provided in the Measure M2 Eligibility Guidelines and accounts for Net Revenues, including interest earned, expenditures during the fiscal year, and balances at the end of the fiscal year.

SECTION 2. The M2 Expenditure Report is hereby adopted and approved by the City of San Clemente.

SECTION 3. The City of San Clemente Finance Director is hereby authorized to sign and submit the M2 Expenditure Report to OCTA for the fiscal year ending June 30, 2025 in substantially the same form as presented to the City Council on December 9, 2025 and take such other actions as are necessary and proper to accomplish the purposes of this resolution.
689
Resolution No. 25-203 Page 2
SECTION 4. The City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.

PASSED, APPROVED, AND ADOPTED THIS______ day of December, 2025 ATTEST:
____________________________ ____________________________ City Clerk of the City of Mayor of the City of
San Clemente, California San 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. 25-203 was adopted at a regular meeting of the City Council of the City of San Clemente held on the _______ day of December 2025, 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
690
Attachment 2
691
692
693
694
695
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: December 9, 2025 Agenda Item: 11R.

Submitted By: Finance and Administrative Services
Prepared By: Brian Brower, Assistant City Manager
Sandee Chiswick, Accounting Supervisor
Subject:
..titl e

CONSIDERATION OF A RESOLUTION RECEIVING AND APPROVING THE COMMUNITY FACILITIES DISTRICT NO. 2006-1 (MARBLEHEAD COASTAL) LOCAL AGENCY SPECIAL TAX AND BOND ACCOUNTABILITY ACT REPORT (SB 165) FOR FISCAL YEAR ENDED JUNE 30, 2025 ..body
Fiscal Impact:

There are no cost or financial liabilities relating to receiving the annual compliance report.

Summary:

The Local Agency Special Tax and Bond Accountability Act of the Government Code of the State of California (Sections 50075.1 and 53410) require the Governing Body to receive and file an annual report for Community Facilities District (CFD) No. 2006-1 (Marblehead Coastal).

Background:

The Community Facilities District (CFD) No. 2006-01 (Marblehead Coastal) of the City of San Clemente issued 2015 Special Tax Bonds on December 3, 2015. On June 12, 2025, the City issued 2025 Special Tax Refunding Bonds. A portion of the proceeds of the Bonds, together with certain existing funds on hand, were used to defease and refund the 2015 Bonds.

The Accountability Act was enacted by California State Legislature through Senate Bill 165 to provide accountability measures for any local special tax and/or bond measure subject to voter approval on or after January 1, 2001. Annually, a report is required of the CFD which includes information prepared in compliance with the Local Agency Special Tax and Bond Accountability Act (“Accountability Act”). The report prepared is for June 30, 2025.

In compliance with the requirement of the Accountability Act (Sections 50075.1 and 53410 of the Government Code of the State of California), the annual report (Exhibit 1) contains a description of the following:

1. The amount of funds collected and expended to fund authorized facilities; and

2. The status of any project required or authorized to be funded by the special tax and/or bond measure.

Council Options:
 Adopt Resolution No. 25-204, which approves and receives the CFD report. 696
Meeting Date: December 9, 2025 Agenda Item: 11R.

CITY OF SAN CLEMENTE 2
 Modify and adopt Resolution No. 25-204.
 Continue the Item and direct staff to provide additional information.

Environmental Review/Analysis:

This is not a “project” under the California Environmental Quality Act.

Recommended Actions:

Staff Recommendation ..recommendation
Staff recommends that the City Council adopt Resolution No. 25-204, approving and receiving the City of San Clemente Community Facilities District No. 2006-1 (Marblehead Coastal) Local Agency Special Tax and Bond Accountability Act Report (SB 165) for the fiscal year ended June 30, 2025.
..end
Attachment:

1. Resolution No. 25-204

2. Community Facilities District No. 2006-1 (Marblehead Coastal) Local Agency Special Tax and Bond Accountability Act Report (SB 165)
Notification:

Kara Meverden, Koppel & Gruber Public Finance
697
Attachment 1
RESOLUTION NO. 25-204

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SAN CLEMENTE, CALIFORNIA, APPROVING AND

RECEIVING THE CITY OF SAN CLEMENTE COMMUNITY
FACILITIES DISTRICT NO. 2006-1 LOCAL AGENCY

SPECIAL TAX AND BOND ACCOUNTABILITY ACT

COMPLIANCE REPORT FOR THE FISCAL YEAR ENDED
JUNE 30, 2025
WHEREAS, state law under Government Code Sections 50075.1 and 53410 require an annual report to be prepared by the local agency for levy of a special tax voted on or after January 1, 2001; and
WHEREAS, an annual report for the City of San Clemente Community Facilities District No. 2006-1 (Marblehead Coastal) Local Agency Special Tax and Bond Accountability Act Report (SB 165) for the fiscal year ended June 30, 2025 (the “2025 Report”) has been prepared in accordance with state law; and WHEREAS, such 2025 Report has been filed with the governing body and was reviewed and considered at its regular meeting of December 9, 2025 together with any public comment received related thereto.

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

SECTION 1. That the above recitals are true and correct and fully incorporated herein as findings.

SECTION 2. That the 2025 Report has been prepared and filed with the City Council in accordance with state law requirements.

SECTION 3. That the 2025 Report is hereby received and approved in the form presented to the City Council on December 9, 2025.

SECTION 4. 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:
698
Resolution No. 25-204 Page 2
___________________________ ________________________
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. 25-204 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
699
City of San Clemente
Community Facilities District No. 2006-1
(Marblehead Coastal)
Special Tax Accountability Report
(SB 165)
Fiscal Year 2024/2025
Prepared for:

City of San Clemente
910 Calle Negocio
San Clemente, CA 92673
949-361-8200
Exhibit 1
700

TABLE OF CONTENTS
Section I. Background ..................................................................................................................... 1 Section II. Bond Proceeds ............................................................................................................... 2 Section III. City-Held Funds............................................................................................................. 3 Section IV. Collection of Special Taxes............................................................................................ 4 Section V. Expenditures to Fund Authorized Facilities................................................................... 5 Section VI. Authorized Facilities...................................................................................................... 6 701
______________________________________________________________________________ City of San Clemente, Community Facilities District No. 2006-1 (Marblehead Coastal) 1 Special Tax Accountability Report (SB 165)
Fiscal Year 2024/2025
SECTION I. BACKGROUND
The Local Agency Special Tax and Bond Accountability Act (“Accountability Act”) was enacted by California State Legislature through Senate Bill 165 to provide accountability measures for any local special tax and/or bond measure subject to voter approval on or after January 1, 2001.

According to the requirements of the Accountability Act (Sections 50075.1 and 53410 of the Government Code of the State of California), an annual report must be filed by the local agency levying a special tax and/or issuing a bond measure on or before each January 1, commencing January 1, 2002, and shall contain a description of the following:
(1) The amount of funds collected and expended to fund authorized facilities. (2) The status of any project required or authorized to be funded by the special tax and/or bond measure.

The information contained in this Report has been compiled and is being presented to and in accordance with the requirements outlined in the Accountability Act for Fiscal Year 2024/2025 for the City of San Clemente (“City”) and their Community Facilities District No. 2006-1 (Marblehead Coastal) (“CFD No. 2006-1” or “CFD”).
702
______________________________________________________________________________ City of San Clemente, Community Facilities District No. 2006-1 (Marblehead Coastal) 2 Special Tax Accountability Report (SB 165)
Fiscal Year 2024/2025
SECTION II. BOND PROCEEDS
The City issued 2015 Special Tax Bonds (“2015 Bonds”) on December 3, 2015 in the aggregate principal amount of $55,490,000, the proceeds of which were used to finance the construction of certain facilities within CFD No. 2006-1. On June 12, 2025, the City issued 2025 Special Tax Refunding Bonds (“Bonds”) in the aggregate principal amount of $43,330,000. A portion of the proceeds of the Bonds, together with certain existing funds on hand, were used to defease and refund the City’s 2015 Bonds.

The table below summarizes the application of the Bond proceeds:

Fund/Account/Subaccount Bond Proceeds
Redemption of 2015 Bonds $51,416,273.27
Construction Fund¹ 2,330,000.00
Reserve Fund 2,045,587.50
Costs of Issuance² 875,946.27
Total³ $56,667,807.04
1 Represents monies transferred from funds and accounts related to the 2015 Bonds to be used to pay the costs of certain capital facilities, including, but not limited to, one or more pump stations serving CFD No. 2006-1. 2 Costs of issuance include consultant and legal fees, printing fees, premiums for the Bond Insurance Policy and the Reserve Fund Policy, the Underwriter’s Discount, and other miscellaneous issuance expenses. 3 The difference between the Bond issue amount of $43,330,000 and the total Bond proceeds deposited is the Net Original Premium and funds on hand from the 2015 Bonds. 703
______________________________________________________________________________ City of San Clemente, Community Facilities District No. 2006-1 (Marblehead Coastal) 3 Special Tax Accountability Report (SB 165)
Fiscal Year 2024/2025
SECTION III. CITY-HELD FUNDS
Special taxes collected are held by the City prior to being transferred to the Special Tax Fund (previously the Bond Fund when referencing the 2015 Bonds) held by the Trustee. The balance of the CFD No. 2006-1 City-held funds that are not required to fund items pursuant to and as further described in the CFD No. 2006-1 Bond Indenture (“Indenture”) established in connection with the issuance of the Bonds may be used to fund authorized facilities of the CFD. The following table provides a summary of the sources and uses of the CFD No. 2006-1 special tax funds held at the City for fiscal year ended June 30, 2025.

Item Balance
Beginning Balance as of July 1, 2024¹ $2,995,057.92
Sources of Funds:

Special Tax Receipts² $3,024,724.42
Interest Accrued 60,265.33
Miscellaneous Transfer In³ 30,000.00
Subtotal: Sources of Funds $3,114,989.75
Uses of Funds:

Transfers to Bond Fund⁴ ($3,107,769.22)
Administrative Expenses (23,859.09)
Miscellaneous Transfer Out⁵ (2,346,989.76)
Subtotal: Uses of Funds ($5,478,618.07)
Ending Balance as of June 30, 2025 $631,429.60
¹ The beginning balance as of July 1, 2024 does not match the ending balance as of June 30, 2024 due to adjustments made in the accounting system after the end of the previous fiscal year. ² Includes Special Taxes and any delinquent amounts collected by the County and transferred to the City. Excludes any special taxes that were charged for FY 2025/2026 but not apportioned to the City until after June 30, 2025. ³ Consists of the Costs of Issuance funds distributed to the City for paying costs associated with the issuance of the Bonds.
⁴ Represents funds used for the September 1, 2024 and March 1, 2025 debt service payments. ⁵ Consists of the Bond closing funds wired to the Trustee in connection with the issuance of the Bonds. 704
______________________________________________________________________________ City of San Clemente, Community Facilities District No. 2006-1 (Marblehead Coastal) 4 Special Tax Accountability Report (SB 165)
Fiscal Year 2024/2025
SECTION IV. COLLECTION OF SPECIAL TAXES
The table below provides a summary of the Special Taxes deposited, interest accrued, transfers, and other transactions within the Bond Fund for the 2015 Bonds and the Special Tax Fund for the Bonds for Fiscal Year ended June 30, 2025.

Item Balance
Beginning Balance as of July 1, 2024 $8,211.34
Sources of Funds:

Special Tax Receipts $3,107,769.22
Interest Accrued 4,532.04
Subtotal: Sources of Funds $3,112,301.26
Uses of Funds:

Transfers to Principal and Interest Accounts (Debt Service) (3,119,050.00) Miscellaneous Transfers Out¹ (1,457.35)
Subtotal: Uses of Funds ($3,120,507.35)
Ending Balance as of June 30, 2025 $5.25
1 Miscellaneous transfers out consist of a transfer to the Escrow Account established with the issuance of the Bonds. 705
______________________________________________________________________________ City of San Clemente, Community Facilities District No. 2006-1 (Marblehead Coastal) 5 Special Tax Accountability Report (SB 165)
Fiscal Year 2024/2025
SECTION V. EXPENDITURES TO FUND AUTHORIZED

FACILITIES
The Fiscal Agent Agreement (“FAA”) established in connection with the issuance of the 2015 Bonds established an Improvement Fund of which proceeds from the 2015 Bonds shall be deposited and disbursed for the costs of the authorized facilities. The following table shows the initial 2015 Bond proceeds deposited, interest accrued, transfers and expenditures made to fund the authorized facilities from inception of the 2015 Bonds through issuance of the Bonds for the Improvement Fund.

Item Balance
Sources of Funds:

Deposit into the Improvement Fund $51,600,000.00
Interest Accrued 1,302,213.56
Total Sources of Funds $52,902,213.56
Expenditures:

Authorized Facilities ($49,689,764.56)
Transfer to Escrow Fund for 2025 Refunding Bonds (870,974.06) Transfer to Construction Fund for 2025 Refunding Bonds (2,330,000.00) Total Expenditures ($52,890,738.62)
Ending Balance as of June 30, 2025 $11,474.94
The Indenture established in connection with the issuance of the Bonds established a Construction Fund of which a portion of the remaining balance from the 2015 Bonds Improvement Fund shall be deposited and disbursed for the costs of certain authorized facilities, including, but not limited to, one or more pump station serving CFD No. 2006-1. The following table shows the transfer from the existing balance in the 2015 Bond Improvement Fund to the Construction Fund established in connection with the issuance of the Bonds, interest accrued, transfers and expenditures made to fund the authorized facilities from inception of the Bonds through the end of the current fiscal year for the Construction Fund.

Item Balance
Sources of Funds:

Deposit into the Construction Fund $2,330,000.00
Interest Accrued 0.00
Total Sources of Funds $2,330,000.00
Expenditures:

Authorized Facilities $0.00
Total Expenditures $0.00
Ending Balance as of June 30, 2025 $2,330,000.00
706
______________________________________________________________________________ City of San Clemente, Community Facilities District No. 2006-1 (Marblehead Coastal) 6 Special Tax Accountability Report (SB 165)
Fiscal Year 2024/2025
SECTION VI. AUTHORIZED FACILITIES
The purpose of CFD No. 2006-1 is to provide for the cost of financing the construction and engineering design of the Facilities (described generally below), the payment of development impact fees and the incidental expenses related to financing, forming and administering CFD No. 2006-1. Descriptions of the Authorized Facilities are as follows:
• Arterial Roadways
o Ave. Vista Hermosa
o Ave. Vista Hermosa Bridge
o Ave. Pico
o El Camino Real
• Local Public Roadways
o Los Molinos & Via Socorro
• Public Parks & Trails
o Sports Park
o Pico Park
o 2 Passive Parks
o Regional Public Trails
o Courtney Sand Castle
o Artificial Turf (Sports Park)
• Storm Drains
o Offsite Drain Line
o Residential Drain Lines
o Water Quality Improvements
• Low-Flow 1st Flush System
o Off-Site System
o Residential System
• Water System
o Offsite 12” Line
o Residential Line with 2 PRS
o Pump Station
• Sewer System
o Offsite 12” Line
o Residential Line
• Fees and Assessment
o Transportation RCFPP (Residential Portion)
o Water Capacity and Connection Fees (Residential Portion) o Sewer Assessment District No. 85-1 Obligation
707

San Clemente City CouncilDecember 9, 2025

San Clemente City Council
December 9, 2025