Agenda packet — San Marino City Council, June 27, 2025 (part 2 of 2)

1. The proposed sewer charges do not comply with Proposition 218 because they are not proportional to the benefit received by property owners.

2. The proposed charges are a flat fee of $522 per residential property, which does not account for variations in water usage or the number of residents at each property.

Properties with higher water usage generate more sewage and impose a greater burden on the sewer system, yet they would pay the same fee as properties with lower usage.

3. Other cities charge based on water use instead of a flat fee.

4. There is insufficient justification to demonstrate that the flat fee complies with the proportional requirement of Proposition 218.

Therefore, the City has prepared the “Written Response” to the Written Objections as set forth on Exhibit “B” (attached hereto). The Written Response provides the grounds and substantive bases for which the concerns identified in the Written Objections do not result in a justification to amend the proposed changes and increases to sewer rates, as described in the Public Hearing Notice.

Other than the 8 Written Objections identified above, the City received the 24 “Submittals” identified on Exhibit “D” (attached hereto) from property owners prior to the deadline of June 12, 2025, at 4:00 p.m. The Submittals were identified by the owner as a protest and/or an objection to the proposed update to the sewer rates. However, none of the Submittals meet the definition of a timely “written objection” (as defined by California Government Code Section 53759.1(c)(4)) since they do not specify the grounds for alleging the proposed sewer service rates do not comply with the requirements of Proposition 218 (California Constitution Article XIII D, Section 6). Therefore, the City will consider each Submittal as a timely written protest during the public hearing on June 27, 2025; provided, however, only one written protest per property will be counted when determining whether a “majority protest” was received by the City.

Although the City is not legally obligated under AB 2257 to provide a written response to the Submittals, the City provides this written information to explain how the concerns raised in the Submittals do not establish grounds for amending or altering the proposed changes and increases to the City’s sewer rates. This response incorporates by reference the substantive information included in the City’s Written Response to Written Objections.

As identified on the Public Hearing Notice, which included documents available on the City’s website (www. SanMarinoCA.gov/Sewer), the City calculated the amount of the proposed sewer service rates in accordance with Proposition 218 in order to charge each customer the amount needed to pay the proportionate cost of providing sewer service to each property owner.

The sewer service charges fund the proportionate cost of sewer services that benefit those who are charged, and are established as a fee for a property related service in PAGE 145 of 306
City’s Response to Written Objections and Protests

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accordance with Proposition 218 (California Constitution Article XIII D). Each user is charged their share in proportion to their Sewer Units. Sewer units are described in Section 3.1.1 of the Rate Study. Therefore, the California Constitution distinguishes “fees” for property related services (that are subject to the majority protest public hearing process under Proposition 218, as followed by the City for the proposed sewer rates) as compared to “taxes” that require voter approval and are subject to the limitations of Proposition 13. Under Proposition 218, property related fees such as the proposed sewer rates do not require voter approval.

The City carefully set the sewer service rates in an amount that was limited to what will be needed to provide the sewer services to customers. The proposed sewer service charges will fund the operating and capital expenses, and the reserve policies that determine the overall charges needed for a sustainable sewer enterprise as described in Rate Study Section 3. Section 3.3 of the Sewer Rate Study Report has a table summarizing the five-year Capital Improvement Plan as proposed by the most recent Wastewater Master Plan. Over the next five-years, approximately $20 million in capital improvements are needed to help maintain the City’s sewer system. The proposed sewer charges will fund approximately half of the needed capital improvements, leaving half of the needed improvements unfunded by revenue from sewer rates. The City Council will maintain oversight regarding the prioritization of expenditures of sewer rate revenue, and other potential sources of revenue, to fund improvements to the City’s sewer system, through the Council’s approval of the annual budget as well as approval of design and construction of individual projects. The proposed sewer charges will also help fund operating costs as shown in Table 3-5 under Section 3.5 of the Sewer Rate Study Report (specifically lines 14 through 17). Adequate reserve levels are also needed for selfsustaining utilities and Section 3.2 of the report has additional details regarding the reserve target levels recommended.

As identified in Rate Study Section 3.4, there is a 3% annual revenue increase for the sewer service charges. The 3% revenue adjustment each year is the projected revenue increase needed to fund the expenses described in Section 3 of the Rate Study over the study period. The financial plan can be found in Section 3.5 of the report, which was used to develop the proposed sewer rate charges.

Although sewer service charges will be collected through the county tax bills, the sewer service charges are not a tax. Thus, the limitations imposed on property taxes under Proposition 13 (California Constitution Article XIII A) do not apply to the sewer service charges under Proposition 218. As distinguished from ”fees” that charge customers based on a benefit provided to those who pay, property taxes fund a broad range of municipal services provided to the general public such as police and fire protection. Therefore, the 2% limitation on annual increases of property taxes under Proposition 13 does not apply to sewer service charges under Proposition 218.

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City’s Response to Written Objections and Protests

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Conclusions and Recommendations
Therefore, City staff recommends that the City Council: (a) consider the substance of each timely written objection and the written response from City staff; and (b) determine the timely written objections do not result in any amendment to or alteration of the proposed sewer rates, based on the analysis included on the City’s website (notably including the Rate Study) and presented as a part of the public hearing on June 27, 2025, which provides the substantive bases for the Council’s approval of the sewer rates as proposed.

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Why is San Marino Changing How Sewer
Services Are Funded?
San Marino’s sewer system collects
wastewater from homes and businesses
and sends it to the Los Angeles County
Sanitation District (LACSD) for treatment.

Until now, the city has used general tax
revenues (the City’s General Fund) to pay for
sewer services, so property owners have not
received a separate sewer bill.

However, most cities in California fund their
sewer systems through Enterprise Funds,
where customers pay directly for the services
they receive. This approach ensures sewer
revenue is only used for sewer expenses
and helps keep sewer operations financially
independent and legally transparent.

NOTICE OF PUBLIC HEARING April 2025 PROPOSED SEWER SERVICE CHARGES This notice provides information about a proposal to establish a sewer service Enterprise Fund in the City of San Marino

WHY YOU ARE RECEIVING THIS NOTICE
The City of San Marino proposes
establishing a new sewer service charge
for placement on the annual tax roll for
properties connected to the City’s sewer
system. This notice explains the reason for
this charge, what the proposed charges
are, and how the public can participate in
the process to comment, protest, or object.

During the noticed public hearing, the City
Council will consider all comments from
the public regarding these proposed new
charges, along with any written protests or
objections submitted by property owners
or tenants responsible for paying the new
charges.
您为何收到此通知
本通知提供有關聖馬利諾市設立汙水服務事
業基金的提案資訊。
What is a Sewer Enterprise Fund?
A sewer Enterprise Fund works like a
dedicated account for sewer services. All
money collected from sewer charges would
be placed into this fund and could only be
spent on sewer operations, maintenance,
and improvements. None of the money can
go to unrelated city services like police, fire,
or parks.

Background
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To prevent costly failures and protect public
health, the City has planned approximately
$2.25 million per year for critical repairs and
upgrades over the next five years. However,
rising costs, stricter regulations, and the need
to build fiscally responsible reserves have
made this approach unsustainable, requiring
the City to establish a dedicated sewer
service charge to ensure reliable long-term
funding.

Proposed Sewer Service Charges
The table across shows the proposed
maximum annual sewer service charge
per Sewer Unit (SU) through 2030.

Established by the Los Angeles County
Sanitation District (LACSD), one SU represents
the typical wastewater flow from a singlefamily home. This means a single-family home is assigned 1 SU, while larger properties—
such as restaurants and schools—that
generate more wastewater are assigned
additional SUs to reflect their higher usage of
the sewer system.

Starting July 1, 2025, the proposed maximum
annual sewer service charge for residential
customers is $522.00. The charge would
appear either as a single charge on your
property tax bill or in a direct bill from the
City. The annual amount is equivalent to
$43.50 per month. The City Council will
annually conduct a public hearing to consider
the amount of the charge which may be
less than, but not more than, the proposed
maximum amount. The maximum amount
includes an annual increase of 3% each year
to keep up with inflation and system costs,
reaching a maximum of $587.52 annually
(or $48.96 per month) by Fiscal Year 2030.

The annual charge for non-residential
customers—including restaurants, offices,
and laundromats—is based on estimated
wastewater flow relative to a typical home.

To determine the number of
Sewer Units (SUs) assigned to
your non-residential property,
contact the City.

Why is an Enterprise Fund Better Than
Using General Tax Funds?
Using general tax dollars to pay for sewer
services creates several problems:
• The General Fund normally funds other
essential services, like public safety and
parks.
• Sewer systems work best when funding
is reliable and directly tied to the cost of
service.
• State law considers sewer service a
property-related service, meaning it is
better suited for customer-paid charges
than funding through general taxes.

By switching to an Enterprise Fund, San
Marino can ensure long-term financial
stability for the sewer system and comply
with state laws that require transparency and
cost-based rates.

How Did the City Determine the
Proposed Sewer Service Charges?
The City engaged an independent public
finance firm to conduct a sewer rate study.

Having an independent third party perform
the sewer rate study ensures an unbiased,
objective analysis of costs and needs,
helping to establish fair and equitable
rates. Those total annual costs were
proportionately allocated as sewer charges
to each customer based on the number of
sewer units per customer. The proposed
charges were determined by dividing the
annual cost to operate the sewer system by
the number of sewer units as defined by the
Los Angeles County Sanitation District.

Aging Sewer System Requires Critical
Repairs and Dedicated Funding
San Marino’s sewer system relies on aging
pipelines, pump stations, and manholes —
many at or near the end of their useful life.

The Rate Study Report is available on the website at www.SanMarinoCa. gov/Sewer. Scan this code to be taken directly to the website:

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Proposed Maximum Sewer Service Unit Charges - FY2026-FY2030 Any protest OR objection must: (1) be in writing identifying the name of the property owner, and the street address or other clear identification of the property subject to the sewer charges; (2) be submitted by the property owner;
and (3) comply with the relevant requirements for a
written objection or written protest (as outlined below).

NOTE: this Notice defines the phrase “property owner” to include a tenant that is obligated to pay the sewer charges.

The main differences between an objection and a protest:
a) the deadline and method for timely submission; b) the additional information required for an objection; and c) a legal challenge to the proposed sewer charges may only be filed by a property owner who submitted a timely written objection.

ADDITIONAL REQUIREMENTS: TIMELY WRITTEN
OBJECTION (Exhaustion of Administrative
Remedies)
A timely written objection must specify the grounds for alleging that the proposed sewer charges do not comply
with Prop 218. The City has documented how the sewer
charges comply with Prop 218 in the Sewer Rate Study
and the Sewer Rate Setting Procedures, which are posted at www.SanMarinoCA.gov/Sewer. The deadline for
written objections is June 12, 2025, at 4 p.m. PDT. To be considered timely, an objection must be received by City at the “SUBMITTAL LOCATION” listed below, prior to
the deadline.

Exhaustion of Remedies and Statute of
Limitations for Challenging Proposed Sewer
Charges
You are hereby notified that in order to file a judicial action or legal proceeding to challenge the proposed
sewer charges, you must file a timely written objection, and you must commence the action or proceeding within
120 days of the City’s approval of the sewer charges.

Failure to submit a timely written objection bars any right to challenge the proposed sewer charges through a judicial action or legal proceeding. (Gov Code Section 53759.1(c).) After the effective date of the City’s approval of the
sewer charges, there is a 120-day statute of limitations for challenging the sewer charges. (Gov Code Section 53759.) ADDITIONAL REQUIREMENTS:

TIMELY WRITTEN PROTEST
A written protest must be submitted in paper form,
signed by the property owner, and clearly state that the property owner opposes the proposed sewer charges.

To be considered timely, a written protest must be
received by the City, by Mail or In Person, at the
“SUBMITTAL LOCATION” listed below, prior to the
close of the public hearing on Friday, June 27, 2025.

Only one protest will be counted per parcel. Owners of
multiple parcels may file one protest for each parcel owned within the City’s service area. Since protests must be received by mail or in person, any protest submitted by email will not be counted. If timely written protests are received from owners of a majority of parcels (50%+1) within the service area, the proposed sewer charges will not be implemented.

If adopted, the proposed sewer charges will take effect beginning July 1, 2025. The reasons for the sewer
charges, the basis upon which they were calculated, and the amount of the proposed charges are described in
more detail in the Rate Study, which is posted at www.

SanMarinoCA.gov/Sewer, and available for review at
the City Clerk’s office. If you have any questions, please call (626) 300-0781. City staff can assist in answering questions about rates, the rate study, or your bill.

FY2026 FY2027 FY2028 FY2029 FY2030
Annual Charge per SU - Applicable
to Residential AND Non-Residential
Sewer Service
$522.00 $537.66 $553.79 $570.40 $587.52

SUBMITTAL LOCATION
City of San Marino City Clerk’s Office
2200 Huntington Drive
San Marino, CA 91108
Via Email: [email protected]
How to Submit a Written Objection or Protest
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City of San Marino
Public Works Department
2200 Huntington Drive
San Marino, CA 91108

NOTICE OF PUBLIC HEARING - PROPOSED SEWER SERVICE CHARGES To consider a proposal to establish a Sewer Service Enterprise Fund in the City of San Marino.

Friday, June 27, 2025 | 8:30 a.m.

San Marino City Hall, Council Chambers
2200 Huntington Drive
San Marino, CA 91108

PUBLIC HEARING INFORMATION
www.SanMarinoCa.gov
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City’s Written Responses to Timely Written Objections
Exhibit B
The City received 8 Timely Written Objections from the properties: (1) 1351 San Marino Avenue; (2) 2270 Lombardy Road; (3) 1340 Blackstone Road; (4) 1570 Rose Avenue; (5) 1341 Oxford Road; (6) 1730 S. Los Robles Avenue; (7) 1891 Windsor Road; and (8) 1832 Saint Albans Road. Those objections are attached as Exhibit “C.” This Exhibit “B” provides the City’s written responses to those 8 Timely Written Objections:

1.Objection: The proposed sewer charges do not comply with Proposition 218 because they are not proportional to the benefit received by property owners.

Response:

The proposed sewer charges are proportional to the cost to serve each customer because the City’s costs are proportionally allocated to each customer based on the number of sewer units generated by each parcel. As described in Rate Study Section 3.1, a “sewer unit” (or “SU”) is an estimate of the relative impact that customers have on a sewer system based on strength of wastewater and amount of flow. Since the City’s sewer system collects wastewater to be conveyed to and treated by the Los Angeles County Sanitation District (LACSD), the City has relied on LACSD’s estimated SUs for various types of property uses, as documented in LACSD’s “Wastewater Revenue Program” dated January 2021. While strength of wastewater is relevant to the cost of operating a wastewater treatment system, since the City’s sewer system is limited to collection and conveyance, the City has relied on only the amount of flow for each SU.

The concept of a sewer unit estimates sewer discharge in relation to a single family home. The number of sewer units for a single-family home is defined as one, based on an estimated average flow of wastewater of 260 gallons per day, and other property uses are assigned the corresponding number of SU’s in direct proportion to the estimated amount of flow from the other property as compared to 260 gallons per day. It should be noted that if a parcel has more than one residential unit (such as an accessory dwelling unit), it increases the number of sewer units. An apartment complex will have a greater number of sewer units. This is a very common way to charge for sewer service especially where a City or District is a collection only agency – meaning that the city collects sewage and sends it to a nearby regional treatment facility. As noted above, the City of San Marino is a collection only agency and sends its sewage to the LACSD.

2. Objection: The proposed charges are a flat fee of $522 per residential property, which does not account for variations in water usage or the number of residents at each property. Properties with higher water usage generate more sewage and impose a greater burden on the sewer system, yet they would pay the same fee as properties with lower usage.

Response:

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City’s Written Responses to Timely Written Objections
The City has reasonably estimated the amount of the flat fee for each singlefamily home based on the estimated average impact on the City’s costs of providing the sewer service.
1) Most of the City’s sewer maintenance costs are fixed and do not vary with sewer discharge. The City’s cost to operate and maintain the system and the cost of capital projects are the same whether a home discharges 4 hundred cubic feet of water of 7 hundred cubic feet of water (see item # 2 below). There is a minimum size of sewer main on residential streets (8 inches) and the cost of maintaining it does not change with each home’s sewer discharge. The volume of discharge, and its effect on costs, is more pertinent for cities or agencies that treat the sewage because their expenses (power, chemicals, oxygenation of wastewater, sludge processing) are proportional to the volume of sewage. For this main reason, it is reasonable to charge all homes the same charge. 2) The sewer discharge for single family homes falls within a narrow range compared to commercial customers. Most homes will discharge anywhere from a few to up to 10 hundred cubic feet of sewage per month.

Water use beyond 10 hundred cubic feet (hcf) usually is for irrigation, which means that the water does not enter the City’s sewer system. Due to the narrow range of discharge, it is reasonable to charge a flat fee. 3) Wastewater is not metered. Water use is metered and therefore wastewater discharge must be estimated from water use. In a city like San Marino, up to approximately 50% of water use can be for irrigation and not discharged to the sewer. Therefore, either winter water use or another estimate of the water that returns to the sewer must be made introducing more estimates/error.

3. Objection: Other cities charge based on water usage instead of a flat fee.

Response:

While it is possible to charge based on estimated sewer use, many cities and sewer districts charge a flat fee for single family homes. The LACSD, the Orange County Sanitation District and the Inland Empire Utilities Agency serve approximately 9 million people and charge based on a sewer unit basis where one sewer unit is defined as a single-family home. In addition, many cities and water or sewer districts charge a flat rate for single-family homes. The table below shows a partial listing of cities or sewer districts that we know of that charge a flat rate for a singlefamily home.

Camarillo Summerland Sanitary District Santa Cruz Gilroy Camarosa Water District Big Bear City Community Services District
Seal Beach Colton
Thousand Oaks Hayward El Monte Turlock
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City’s Written Responses to Timely Written Objections
Channel Islands
Community
Los Angeles County Sanitation
District (5 million people)
Corte Madera Plymouth
Goleta Sanitary District Mammoth Community Water
District
Livermore Rio Vista
Groveland Community
Sanitation District
Rincon Del Diablo Water District Chino
Central Contra Costa
Sanitary District
Slema- Kingsburg
Fowler County Sanitation District
Huntington Beach Services District
Solana Beach Olivenhain Municipal Water
District
Monterey Park Lincoln
Arcadia Orange County Sanitation District
(2.6 million people)
Independence San Gabriel
Inland Empire Utilities
Agency (nearly 1 million
people)
Goleta West Sanitary District Carpinteria Sanitary
District
Simi Valley

4. Objection: There is insufficient justification to demonstrate that the flat fee complies with the proportional requirement of Proposition 218.

Response:

As explained in the information presented to City Council as a part of the public hearing to consider the proposed sewer rates, the Rate Study adequately and appropriately documents the rationale for setting flat rates for residential customers based on the estimated average impact of a single family home on the City’s costs of providing sewer services. The City relied on analysis from the local agency (LACSD) that receives and treats wastewater from the City as the basis for an estimated average flow of 260 gallons per day of wastewater from a single family residence. This approach of establishing flat amounts as a reasonable estimate of impacts to be allocated to payers of property related fees is supported by Moore v. City of Lemon Grove (2015) 237 Cal.App.4th 363.

For the above reasons, many cities and sewage districts, especially those that are collection only, choose to charge a flat rate for a single-family home.

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Exhibit D
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From:

To: City Clerk"s Office;
Subject: [EXTERNAL] Sewer Service Charge - WRITTEN OBJECTION Date: Thursday, May 1, 2025 11:32:18 AM
Sewer Service Charge - WRITTEN OBJECTION
FROM:
500 Plymouth Rd, San Marino, CA 91108
Date: May 1 2025
TO:

San Marino City Clerk’s Office
Subject: Opposition to Proposed Sewer Service Charges
Dear City Clerk,
I am writing to formally express my strong opposition to the proposed establishment of sewer service charges in San Marino. While I recognize the importance of maintaining and upgrading our city's 50-mile sewer collection system, I am deeply concerned about the financial burden this new fee will impose on residents during this already tumultuous time in our economy.

Historically, the City has successfully funded sewer system maintenance through General Fund revenues. The shift to a separate, self-funding sewer enterprise, as proposed in the recent Sewer Rate Study, creates a significant new expense for property owners, amounting to a maximum of $522 per year per residence, with annual increases of 3%. Such a policy disproportionately impacts homeowners and raises questions regarding fiscal management and the necessity of diverting sewer funding away from the General Fund. By 2030, this fee will be close to $600/year annually! Moreover, the projected costs outlined in the Wastewater Collection System Condition Assessment (WCSCA) from 2019 should be carefully reevaluated to ensure that repairs and capital improvements are prioritized appropriately. Before imposing a new fee structure, the City should explore alternative funding mechanisms, such as state or federal infrastructure grants, reassessment of existing revenue streams, or more efficient financial planning within the current budget.

I urge the City Council to reconsider this proposal and seek input from residents on equitable solutions including restructuring without our current framework. The upcoming public hearing on June 27, 2025, provides an opportunity for meaningful discourse, and I strongly encourage the Council to pursue alternative approaches that do not unduly burden homeowners during already difficult financial times.

Thank you for your time and consideration. I respectfully request that my opposition to this proposed charge be recorded.

PAGE 173 of 306
Sincerely, 500 Plymouth Road
San Marino CA 91108
--- Please confirm receipt of this letter of opposition at your earliest convenience.

Thank you.

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From:

To: City Clerk"s Office
Subject: [EXTERNAL] Timely Written Protest to Proposed Sewer Service Charges Date: Wednesday, May 7, 2025 10:44:42 AM
Below please find the “timely written protest” I wish to submit. The notice is unclear as to how this protest must be submitted. It states “must be submitted in paper form, signed by the property owner..” at the submittal location. BUT the submittal location gives a “Via Email” address. The instructions should have therefore stated not “paper” but “written form”, since most wouldn’t consider an email “paper form”. Also, the signature requirement suggests that email might not be satisfactory. Nevertheless, I am emailing this protest as well as submitting a hard copy to the City by US mail.
1750 Rose Ave
San Marino CA 91108
City of San Marino Clerk's Office
2200 Huntington Drive
San Marino CA 91108
As the over 50 year resident and homeowner of the above parcel, I am opposed to removing the sewer service charges from the general fund. As an owner who has benefitted from the relatively low property tax valuations due to residing in my residence for a long time under Prop 13, the proposed fee would be effectively a 16% increase in my property tax this year. It is not clear what this increase would provide. However, it is clear that government is determined to put further strain on retirees with fixed incomes.

In the Notice of Public Hearing sent, there was much said as to why the Enterprise Fund is a better solution. I presume that the proposed $522 charge is in addition to the general fund taxes collected, and not merely a reallocation of currently collected funds. If I am wrong, then this should have been more clearly stated. As an addition, this means that the City will have new funds formerly spent on sewers to provide other services. Once again, the notice neglects to highlight this new tax, but "hides" it by describing it as a reallocation...What are the actual costs of "aging sewer system requires critical repairs and dedicated funding”? What services will be improved because there are now funds freed from sewer use?
Also, a built in 3% inflation and cost increase per year is excessive. This is beyond the allowable 2% per year increase under Prop 13.

There is no reason to assume that in 2030 the city will eliminate the yearly increase.

If the sewer system required updates, a specific bond measure upon which to vote would have been a better solution.

As it is, this just seems to be a sneaky way to give the city more general funds. The city needs to work harder at managing the funds currently collected. The recent debacle with our long-time garbage pickup with Athens shows that this is what is really needed.

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From:

To: City Clerk"s Office
Subject: [EXTERNAL] Formal objection to proposed sewer service rate Date: Thursday, May 8, 2025 11:46:45 PM
Dear City Council Members,
I am writing as a resident in the City of San Marino, at 1722 Hilliard Dr, to formally object to the proposed implementation of the annual sewer service charge as outlined in the notice regarding the Proposed Establishment of Sewer Rates.

1. While recognizing the need to invest in repairs, maintenance, and expansion of sewage services, I do not agree with the funding model proposed.

2. Carving out an Enterprise Fund represents a new tax upon property owners as previous funding already exists and there is no corresponding reduction in tax burden.
a. For illustrative purposes, the $522 charge per SU represents approximately 3% property tax increase upon our family.
b. If this were to be taken to a public vote, I do not believe residents would approve funds.

3. There was no information in the document about the corresponding administrative or servicing costs included about the Enterprise Fund, including who would administer the funds, how excess funds would be invested, and oversight bodies. Additionally, there was no information shared about oversight for the prioritization of related projects. Duplication of overhead reduces the efficiency in how funds are managed.

Please consider this letter as my formal protest of the proposed sewer service charge under Proposition 218 and confirmed the receipt of this written protest.

Best,
1722 Hilliard Dr, San Marino, CA 91108
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TO: Mayor and City Council
FROM: Philippe Eskandar, City Manager
BY: Amber Shah, Parks & Public Works Director/City Engineer DATE: June 27, 2025
SUBJECT: APPROVAL TO PROCURE AND INSTALL PHASE TWO OF

THE LACY PARK PLAYGROUND REPLACEMENT PROJECT
FROM PACIFIC PLAY SYSTEMS, INC. IN THE AMOUNT OF
$273,938 AND AUTHORIZE THE PARKS AND PUBLIC

WORKS DIRECTOR/CITY ENGINEER TO APPROVE

CONTINGENCIES IN AN AMOUNT NOT TO EXCEED
$26,062

STRATEGIC PLAN CRITICAL SUCCESS FACTORS
Fiscally Responsible and Transparent City Government
Inviting and Relevant City Facilities
Safe Community
Well-Maintained Infrastructure

BACKGROUND
Beginning in FY 2022-23 the City Council appropriated funds in the Capital Improvement Budget for the Lacy Park Playground Management Program to explore potential replacement of the existing equipment, which at the time was over 10 years old and had begun to show signs of wear and aging. To address this need thoughtfully and with community input, the City formed a subcommittee in 2023, comprised of members of both the Public Safety and Recreation Commissions to evaluate replacement options. Additionally, a comprehensive playground safety audit was conducted in 2023 to assess whether repairs were feasible or if full equipment replacement was necessary.

Following the audit results and subsequent discussions with the Playground Committee and the City Council, a multi-year, phased approach to replace the Gretchen Shepherd Romey, Mayor
Tony Chou, Vice Mayor
Hunter Chang, Council Member
John Chou, Council Member
Calvin Lo, Council Member
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playground equipment was approved by the City Council as part of the FY 2024-25 budget. On October 25, 2024, staff presented three (3) design concepts for the first phase of the project to replace the swing set and age group 5-12 structure to the City Council and received approval to move forward with selection of a final design and to procure and construct the first phase. That same evening, staff conducted an innovative community engagement effort during the City’s Trunk-or-Treat event, where families had the opportunity to view and vote on the three (3) different playground design concepts for the age group 5-12 structure. This direct community involvement resulted in the selection of the design that was ultimately constructed by Pacific Play Systems, ensuring the new playground reflected the preferences of the community. In March 2025, Phase 1 was successfully completed. The next phase will focus on the replacement of the age group 2-5 structure and the installation of new freestanding pieces, with the design process carefully coordinated to complement the new swing set and age group 5-12 structure.

Notably, one of the popular freestanding pieces featured in the initial design vote, the “Spin Max Orbit”, which was not part of the winning Phase 1 design, but garnered notable interest has been incorporated in the next phase.

On May 30, 2025, the City Council approved the Fiscal Year 2025-26 Operating and Capital Improvement budgets. As part of the CIP budget, the City Council approved the appropriation of $300,000 for the Lacy Park Playground Management Program. Staff now seek authorization to initiate Phase 2 of the project to procure and install the equipment, aiming for completion prior to the Lacy Park Centennial Event in September.

DISCUSSION
During the initial planning stages for this project, staff engaged with multiple playground vendors to explore design options and develop a phased replacement plan that aligned with the City’s budgetary framework. Pacific Play Systems, Inc. was ultimately selected to perform the work after soliciting proposals from multiple vendors to design, procure, and install the first phase of the project.

Phase 1, successfully executed by Pacific Play Systems, was completed on schedule and within budget. Pacific Play Systems demonstrated strong project management, attention to detail, and a commitment to minimizing disruption to park users during construction. Their proactive communication and adherence to safety standards ensured a smooth and efficient installation process.

Since the installation of the new swing set and structure for ages 5-12, staff have received overwhelmingly positive feedback from community members, PAGE 200 of 306
families, and park visitors praising the modern design and enhanced play value. The new equipment has been widely welcomed as a significant improvement to the park, encouraging active and imaginative play for children.

Building on the success of the community-driven approach, the design of the upcoming age group 2-5 structure was developed in coordination with the newly constructed age group 5-12 structure to provide a cohesive and inviting play environment for children of all ages. The inclusion of the “Spin Max Orbit”, a freestanding play piece that garnered notable interest during the initial community vote, along with a unique “Home Tree” sculptural freestanding play piece, further enhance the design of the next phase of this project.

Given Pacific Play Inc.’s proven performance and their participation in CMAS, a cooperative purchasing alliance that manages the solicitation process and awards contracts on behalf of government and non-profit agencies, staff recommend awarding Phase 2 of the project to Pacific Play Systems, Inc. in the amount of $273,938, plus contract contingency of $26,062. The requested contingency will cover costs due to unforeseen site conditions and change orders for additional work requested by the City. The total amount for the procurement and installation of Phase 2 of the Lacy Park Playground Management Program plus the contingency is $300,000.

Agencies that purchase supplies and equipment through CMAS benefit from lower costs by combining the purchasing power of more than 50,000 government, education, and non-profit organizations. As such, the purchase complies with the City’s procurement policy per SMMC 2.06.05.B.6, allowing bidding requirements to be waived, thereby facilitating an efficient continuation of the project.

FISCAL IMPACT & PROCUREMENT REVIEW
The City Council adopted FY 2025-26 Capital Improvement Budget includes $300,000 for the Lacy Park Playground Management Program.

Below is a table showing the FY 2025-26 adopted budget by account #:

Account # Adopted
FY 2025-26 Budget
394-50-4600-7039 $293,900
281-50-4600-7039 $6,100
Total Available Funding $300,000
As such, a sufficient amount is available to cover the cost of the project.

PAGE 201 of 306
The Finance Director has reviewed this staff report for compliance with San Marino City Code §02.06.05.

LEGAL REVIEW
The City Attorney's office has reviewed and approved as to form.

RECOMMENDATION
Staff recommends the City Council approve the procurement and installation of Phase 2 of the Lacy Park Playground Management Program from Pacific Play Systems, Inc. in the amount of $273,938, authorize the Parks and Public Works Director/City Engineer to approve contract change orders in an amount not to exceed $26,062, and authorize the City Manager to execute the Agreement. If the Council concurs with staff’s recommendation, an appropriate motion would be:
“I move to 1) approve the procurement and installation of Phase 2 of the Lacy Park Playground Management Program from Pacific Play Systems, Inc. in the amount of $273,938 and authorize the City Manager to execute the Agreement, and 2) authorize the Parks and Public Works Director/City Engineer to approve contract change orders in an amount not to exceed $26,062.”

ATTACHMENTS

1. Pacific Play Systems Proposal

2. Pacific Play Systems Phase 2 Design

3. Lacy Park Playground Management Program CIP Form
PAGE 202 of 306

CONTRACT
Contractor Lic. # 957776
Class A/B/C61/D34/D12
Pacific Play Systems, Inc.

Phone (760) 599-7355
Date 6/17/2025
Est. No. 2025-623
Contractor
City of San Marino
1800 Huntington Dr.

San Marino, CA 91108
Attn: Amber Shah
Customer Project Lacy Park_Phase II
Terms Net 30
Valid for 30 Days
www.pacificplayinc.com
Attached Exhibit A (Terms and Conditions) and Exhibit B (City of San Marino Insurance Requirements) shall be made a part of this Contract. Total PACIFIC PLAY SYSTEMS, INC. 3288 Grey Hawk Court, Carlsbad, CA 92010 - Phone 760-599-7355 or 855-599-7355 - Fax 760-599-7385 Description Qty Rate Total
Project Name: Lacy Park_Phase II
Project Address: 1485 Virginia Road, San Marino, CA 91108 Scope of Work: Provide, equipment, materials and services as outlined per below:

Play Equipment:

Playcraft SN#R502CCB3A, Custom R5" OD Steel Play System, 2-5 age-group 1 84,420.00 84,420.00T Playcraft PC 2472 Spin Max, Orbit 1 30,363.00 30,363.00T Playcraft 1309-2L Custom Printed Sign LAN. (Double) 2 1,463.00 2,926.00T Sub-total of equipment and materials cost 117,709.00
CMAS Discount, CMAS Contract ID 4-19-78-0095A -11,771.00 -11,771.00 ID Sculpture Home Tree 1 28,823.00 28,823.00T
ID Sculpture Mini Transit 1 8,770.00 8,770.00T
Sub-total 37,593.00
Discount on IDS items -3,760.00 -3,760.00
Demo & Site prep:

1. Demo, hauling and disposal of the existing 2-5 playground structure. (Includes footing removal)

2. Stockpile existing EWF before the installation of the playground equipment to avoid contamination and put it back after installation.

3. Mobilization, site prep (preparing the site for installation, unloading and receiving the playground equipment, payment and performance bond & temp fencing) 1 11,800.00 11,800.00
Installation:

Installation labor, playground equipment with in-ground concrete footings using Factory Certified Installers. Installation cost is based on using manufacturer's standard size footings.
1 95,000.00 95,000.00
Sub-total of demo, site prep and installation 106,800.00 Freight costs, Playcraft playground equipment 1 4,107.89 4,107.89 Freight costs, IDS playground equipment 1 4,980.86 4,980.86 Project administration, submittals, non specific item 1 5,000.00 5,000.00 PAYMENT TERMS: Net 30
PAGE 203 of 306

CONTRACT
Contractor Lic. # 957776
Class A/B/C61/D34/D12
Pacific Play Systems, Inc.

Phone (760) 599-7355
Date 6/17/2025
Est. No. 2025-623
Contractor
City of San Marino
1800 Huntington Dr.

San Marino, CA 91108
Attn: Amber Shah
Customer Project Lacy Park_Phase II
Terms Net 30
Valid for 30 Days
www.pacificplayinc.com
Attached Exhibit A (Terms and Conditions) and Exhibit B (City of San Marino Insurance Requirements shall be made a part of this Contract. Total PACIFIC PLAY SYSTEMS, INC. 3288 Grey Hawk Court, Carlsbad, CA 92010 - Phone 760-599-7355 or 855-599-7355 - Fax 760-599-7385 Description Qty Rate Total
Additional Services: None
EXCLUSIONS: This Contract only covers the cost of equipment, materials and services that are clearly outlined in the Scope of Work. All other equipment, materials and/or services that are not clearly outlined in this quotation are excluded. Exclusions include, but are not limited to the following:

1. Additional services, site work (new EWF for playground surfacing, drainage, site drains, border, sidewalks, pavement, striping, etc.), site materials, ADA accessible path of travel, builders risk insurance, furnishing plans, obtaining permits, dealing with inspections and/or permit agencies, engineering calculations, stamped engineered or architectural drawings, etc.

2. Inspection costs, CPSI report, surfacing HIC test, survey work of any kind, removal of hazardous materials or contaminated soils, digging through rock and rocky soils.

3. Customer shall hire a utility locating service to mark all underground utilities prior to the start of our work, in order to minimize any damage to utilities. Modifications and/or repairs to any existing or damaged utilities as a result of this work is excluded. If owner would like us to hire a utility locating company, additional cost will be $1,000. Initial here to authorize this additional service _________.

4. Customer shall be responsible for keeping traffic away from the PIP rubberized surfacing area for at least 24 hours after it is poured so that surface can cure properly. PIP must be cured for a minimum of 2 weeks before any testing is performed.

5. Additional move-in costs, if required (only one move-in cost is included in this quote), dealing with unforeseen conditions and extra work required as a result of these conditions and anything else that is not clearly outlined in this Contract. See Exhibit A, Terms and Conditions for a description of Unforeseen Conditions.

LABOR RATES: Prevailing Wage Rates.

PAGE 204 of 306

CONTRACT
Contractor Lic. # 957776
Class A/B/C61/D34/D12
Pacific Play Systems, Inc.

Phone (760) 599-7355
Date 6/17/2025
Est. No. 2025-623
Contractor
City of San Marino
1800 Huntington Dr.

Contractors are required by law to be licensed and regulated by the Contractors' State License Board which has jurisdiction to investigate complaints against contractors if a complaint regarding a latent act or omission is filed within four (4) years of the date of the alleged violation. A complaint regarding a latent act or omission pertaining to structural defects must be filed within ten (10) years of the date of the alleged violation. Any questions concerning a contractor may be referred to the Registrar, Contractors' State License Board, P.O. Box 26000, Sacramento, California 95826.

This Contract is executed between Pacific Play Systems, Inc., a California corporation and Customer (also referred to as Owner), identified in the Customer section of this Contract.

Either Customer or Pacific Play Systems, Inc. may be referred to as Party, together as Parties. The purpose of this Contract is for Pacific Play Systems, Inc. to provide Customer with equipment, materials and/or services as outlined in the Scope of Work section of this Contract in exchange for the sum of money as outlined in this Contract.

By signing below, both Parties acknowledge that they are entering into a legally binding Contract, which includes Exhibit A. Customer acknowledges the receipt and review of Exhibit A (Terms and Conditions) which shall be made a part of this Contract and enforceable to the full extent allowed by law.

ACCEPTED BY CUSTOMER:

Customer’s Name: _____________________ Date accepted: ______________ Signature: ____________________________ Signed By: __________________ ACCEPTED BY PACIFIC PLAY SYSTEMS, INC.:

Federal Tax I.D. #: 27-4620108 - DIR No. 1000012253 Date accepted: ______________ California Contractors License #957776, Classifications: A, B, C61-D12, C61-D34 Signature: ____________________________ Signed By:

CA Sales Tax, Los Angeles County 9.50% 13,278.25
PAGE 205 of 306 $273,938.00
1 Pacific Play Systems, Inc. - 3288 Grey Hawk Court, Carlsbad, CA 92010, Phone 760-599-7355 - California Contractors Lic. #957776

EXHIBIT A- TERMS AND CONDITIONS
(Revised 12-01-2024)

1. ACTS OF GOD: In the event either party is unable to perform its obligations under the terms of this Agreement because of acts of God, interruption of electrical power or other utilities, shortages of materials and/or labor, manufacturing issues or delays beyond its control, failures or damage reasonably beyond its control, pandemic related issues, or other causes reasonably beyond its control, such party shall not be liable to the other party for any damages resulting from such failure to perform or otherwise from such causes. Pacific Play Systems, Inc. and Customer shall notify each other as soon as reasonably possible following the occurrence of an event described in this subsection.

2. ATTORNEY FEES & EXPENSES: In the event of any dispute under this Contract, the prevailing party shall be entitled to recover from the other party reasonable attorneys' fees and costs of suit, including any fees and costs incurred in preparation of such suit. If timely payments are not made by Customer and collection becomes necessary, Pacific Play Systems, Inc. shall be entitled to collect interest and all reasonable collection and legal costs incurred to the extent allowed by law.

3. BUSINESS LICENSE: If obtaining a business license becomes necessary for a city in which Pacific Play Systems, Inc. does not hold a current license, Pacific Play Systems, Inc. shall obtain the required license and Customer shall reimburse Pacific Play Systems, Inc. for its cost (including staff time) at cost plus 20%.

4. CHANGE ORDERS: Extra Work and change orders shall become part of the contract once the change order is prepared in writing and signed by the parties prior to the commencement of any work covered by the new change order. Change order shall describe the scope of the extra work or change, the cost to be added or subtracted from the contract and describe effects on the schedule (if applicable). Change Orders encountered during the installation phase of the project require immediate action by the Customer to avoid stoppage of work which may cause demobilization and remobilization and Customer agrees to pay the additional cost.

5. COST ESCALATION CLAUSE: Given the recent increases in the cost of equipment, materials, playground safety surfacing, labor and freight, if Pacific Play’s cost of equipment, materials, labor or freight associated with any portion of this project increases by over 2% by the time this project gets installed, Customer shall be responsible for paying the additional cost.

6. DELAYS: If a project is delayed for reasons beyond Pacific Play Systems, Inc. control, Customer agrees to pay for the cost of equipment, materials and products which are already manufactured. Storage fees may be added for stored products. If a project installation is delayed, new installation date will be assigned based on availability of installer. Any cost escalation incurred during the delayed period shall be passed onto the Customer and Customer agrees to pay it. Customer shall hold Pacific Play Systems, Inc. harmless for additional delays due to unavailability of the installer or resources when a project is delayed. If additional mobilization becomes necessary to receive and unload the equipment when a project is not ready for installation, Customer shall pay the cost incurred plus 20%.

7. DEMOLITION: Unless other arrangements are made prior to the start of demolition, all demolition items shall be disposed of by Pacific Play Systems, Inc. in a manner selected by Pacific Play Systems, Inc. For demo purposes, unless otherwise noted in the Contract, all slab thicknesses are assumed to be 4” or less with no reinforcement. If thickness of slab turns out to be greater than 4” or has reinforcement in it, its demo, hauling and disposal cost shall increase at the rate of our actual cost plus 20% and Customer agrees to pay the additional cost.

All PIP rubberized surfacing thicknesses are assumed to be no more than 3.5” thick. If PIP thickness turns out to be greater than 3.5”, its demo, hauling and disposal cost shall increase at the rate of our actual cost plus 20% and PAGE 206 of 306
2 Pacific Play Systems, Inc. - 3288 Grey Hawk Court, Carlsbad, CA 92010, Phone 760-599-7355 - California Contractors Lic. #957776 Customer agrees to pay the additional cost. All changes in the scope of the work shall be managed with a change order, promptly executed by both Parties so that no delays are experienced.

8. DISCOUNTS: Discounts (if any) provided are valid only if the Customer completely fulfills his or her obligations under this Contract for the scope identified, including making timely payments per Payment Terms of Contract. Customer’s failure to pay amounts due under this Contract in a timely fashion or reducing the scope of work shall constitute forfeiture of all discounts provided under this Contract and shall increase Contract sum by the amounts of discounts provided.

9. ENGINEERED WOOD FIBERS (EWF) are sold in quantities of cubic yards. EWF will settle during and after installation, reducing its depth. Therefore, its depth cannot be guaranteed. Generally speaking,18” of material settles to a compacted depth of 10”-12”. EWF requires maintenance and topping off is necessary from time to time.

10. ENTIRE AGREEMENT: This Contract constitutes the entire agreement between the Parties and supersedes any prior understandings, agreements, or representations by or between the Parties, written or oral, to the extent they relate in any way to the subject matter hereof. In the event of conflicting provisions between this Contract and Customer’s own Contract (if any), the provisions of this Contract shall prevail.

11. EXPANSIVE, UNSUITABLE SOILS: Pacific Play Systems, Inc. shall not be responsible for undesirable effects (poor drainage, settlement, expansion, contraction, finish surface cracking, etc.) of unsuitable grounds or soils provided to us. Unsuitable grounds or soils include expansive soils, poorly drained soils, uncompacted or poorly compacted grounds, unstable and/or expansive soils such as clay, excessively moist soils, uncompacted sand, etc. If applicable, it shall be the Customer’s responsibility to evaluate soil samples and determine if the existing soil is suitable for the intended work, prior to the start of any work. If applicable, expansive, loose, or uncompacted soil shall be removed and replaced by others at Customer’s cost, prior to our mobilization on site. Additional engineering and deeper footings may be required if excessive moisture is encountered during the excavation, and Customer agrees to reimburse Pacific Play Systems, Inc. for the additional cost encountered at cost plus 20 percent.

12. FINAL INSPECTION: Customer shall perform a final inspection of the project while Pacific Play Systems, Inc. and its agents are still on site and shall report any concerns to Pacific Play Systems, Inc. at that time so that valid concerns can be corrected right away to avoid delays and additional trips to the job site.

13. FOOTINGS. Installation cost for excavation and pouring playground footings (Playcraft equipment or any other manufacturer) is based on using the manufacturer’s standard footing details. Unless otherwise noted in Quotation, Contract or Purchase Order, if playground footings are upgraded due to permit requirements or to remedy unsuitable soil conditions or to add rebar cages, etc. the upgrade cost shall be extra.

Some permit agencies may require structural calculations for footings which may cause larger footings and deeper embedment of posts into concrete footings than shown in the manufacturer’s standard footings details.

Additional rebar cages may also be needed. Our equipment and installation costs are based on supplying standard length posts and using the manufacturer’s standard footing details with no rebar cages. If footings are enlarged due to permit requirements or for any other reason, Customer agrees to pay the additional cost for longer posts, rebar cages and additional labor and materials required for excavating and installing deeper and larger footings. Additional cost shall be billed at the rate of Pacific Play Systems’ cost plus 20% and the Customer agrees to pay for it.

14. GOVERNING LAW: This Contract shall be governed by and construed in accordance with the domestic laws of the State of California without giving effect to any choice or conflict of law provision or rule that would cause the application of the laws of any jurisdiction other than the State of California. Jurisdiction shall be the County of San Diego, North County Judicial District.

PAGE 207 of 306
3 Pacific Play Systems, Inc. - 3288 Grey Hawk Court, Carlsbad, CA 92010, Phone 760-599-7355 - California Contractors Lic. #957776

15. INSURANCE: Pacific Play Systems, Inc. agrees to carry the following limits during the course of project:

Liability Insurance: $1,000,000 Each Occurrence, $1,000,000 Personal and Advertising Injury, $2,000,000 General Aggregate, $2,000,000 Products, Completed Operations Aggregate.

Excess Liability Insurance: $3,000,000 Each Occurrence, $3,000,000 General Aggregate.

Workers Compensation: $1,000,000
Commercial Auto Insurance: $1,000,000
Proof of insurance or standard additional insured certificates (issued to Customer only) shall be provided upon request. Any custom wording (Primary Wording, Waiver of Subrogation, Cancellation Notices, etc.) on insurance policies or certificates, custom and non-standard additional insured certificates or certificates to multiple entities shall be provided at additional cost, if requested and only if available. Customer acknowledges that Pacific Play Systems’ subcontractors may have lower insurance limits and carry no excess liability insurance. Additional insurance not listed here, if required & available, may be provided at additional cost.

16. LABOR RATES: Unless otherwise noted in writing, all labor rates are Non-Prevailing Wage Rates. It shall be the Customer’s responsibility to inform us if a project is Prevailing Wage before a contract is signed.

17. LIABILITY LIMIT: Pacific Play Systems, Inc.’s liability on any claim of any kind, including negligence, for any loss or damage arising out of, connected with or resulting from this Contract, or from the performance or breach thereof, or from the manufacture, sale, delivery, installation, resale, repair or use of any products covered by or furnished under this Contract, shall in no case exceed the price of the products or parts thereof which gives rise to this claim. In no event shall Pacific Play Systems, Inc. be liable for special, incidental, or consequential damages, or for damages in the nature of penalties.

18. LEAD TIME: Unless otherwise noted, lead time for delivery of equipment varies depending on the type of equipment ordered and can range between 6-24 weeks (+/-) AFTER receipt of a signed Contract, deposit, and color selection from the Customer. Lead time does not include time needed for shipping, site work and installation. Lead time may vary for different projects and different products, depending on product, size and scope of work.

19. MOBILIZATION: Unless otherwise noted in the Quotation, Contract or Purchase Order, our cost includes only one mobilization per project. If additional mobilizations become required due to various factors beyond Pacific Play Systems control such as site not being ready, stop notices by the Customer, permit and governing agencies, etc., additional mobilization cost shall apply at the rate of cost plus 20% or $2,000 minimum for private projects and $2,500 for public works projects whichever is greater. The minimum charge for receiving and unloading equipment when project is not ready for installation shall be $1,500 for private projects and $2,500 for public works projects and Customer agrees to pay these additional costs.

20. MAINTENANCE: Customer shall be responsible for maintenance and upkeep of all acquired equipment and materials associated with this Contract, including but not limited to maintenance of equipment, materials, surfacing, drainage system, etc. Playground equipment and surfacing require daily, weekly, and monthly inspections. It is common that some bolts may come loose after the initial installation and some use, particularly in moving parts. It shall be the Customer’s responsibility to inspect for loose or missing hardware and address it as needed.

21. NOTICES: All notices required by this Agreement shall be in writing and be delivered via email, United States Certified Mail, addressed to the party to whom such notices are directed. Either party may change its address for notices hereunder by giving notice to the other party in the same manner as provided herein.

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4 Pacific Play Systems, Inc. - 3288 Grey Hawk Court, Carlsbad, CA 92010, Phone 760-599-7355 - California Contractors Lic. #957776

22. OWNERSHIP: Once equipment and materials are delivered to the Customer's premises, it is considered delivered and Customer shall become responsible for its security. All costs associated with replacement of vandalized and/or stolen equipment and materials shall be the Customer’s responsibility. Customer shall take necessary steps to secure site and protect the work under progress, including keeping traffic away from the equipment under construction and protecting finished surfaces (concrete, PIP surfacing, etc.) for a minimum of 24 hours after pour.

23. OPTIONS, ADDITIONAL SERVICES: Equipment, materials and services listed under Options or Additional Services are not included in the Scope of Work (cost is extra). If the Customer chooses to add any of these items, Customer shall notify Pacific Play Systems, Inc. in writing as soon as possible and prior to the ordering of equipment so that Contract can be modified to incorporate the added items. Once equipment and materials are ordered, it may be too late to make any changes, without incurring additional costs.

24. PAYMENT TERMS: All payments are due per Contract Payment Terms. Past due balances are subject to an annual interest rate of 18%, or the maximum allowed by law, whichever is greatest. If payments are not received on time and collection becomes necessary, aside from adding interest, all discounts provided shall be reversed and added to the contract sum and Pacific Play Systems, Inc. shall be entitled to collection costs incurred plus attorneys’ fees & expenses to the full extent allowed by the applicable laws. Additionally, Pacific Play Systems, Inc. may suspend all warranties until such a time that all past due balances, interest, and fees are paid in full.

25. PERMITS: Unless otherwise specified in writing, creating plans, obtaining structural calculations, and securing permits are the sole responsibility of the Customer. Permitting and plan requirements can vary from region to region, by signing this Agreement, the Customer agrees that the Customer has determined the necessary permitting and plan requirements, including all related costs, for the scope of the Project. The Customer must notify Pacific Play Systems, Inc. in writing within 10 days of the execution of this Agreement whether or not permit(s) are required. Additionally, the Customer is responsible for verifying that the installation of the proposed equipment complies with zoning regulations applicable to their property.

If permits are required, the Customer shall be solely responsible for obtaining all necessary permits, licenses, and approvals mandated by federal, state, or local laws, ordinances, or regulations related to the work outlined in this Contract. The Customer must ensure that all such permits and approvals are obtained and are in effect before work begins. Pacific Play Systems, Inc. will not be liable for any fines, penalties, or delays resulting from the Customer's failure to comply with this provision.

If Pacific Play Systems, Inc. is instructed in writing to obtain a permit, all associated costs (including plans and engineering fees) will be charged as additional expenses. Staff time will be billed at $120 per hour, building permit fees will be billed at cost, and an additional 20% will be added for all overhead and related expenses. The Customer agrees to pay all associated costs and fees.

While Pacific Play Systems, Inc. will make every effort to secure a permit as quickly as possible (if instructed in writing), no guarantees can be made regarding the successful acquisition of a permit. Furthermore, the permit process can be time-consuming and may result in significant delays, potentially extending the project timeline beyond the Customer's expectations.

The Customer agrees that Pacific Play Systems shall not be held liable for any delays or additional costs related to or arising out of the securing of any necessary permit(s).

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5 Pacific Play Systems, Inc. - 3288 Grey Hawk Court, Carlsbad, CA 92010, Phone 760-599-7355 - California Contractors Lic. #957776

26. PROTECTION OF EXISTING PLAYGROUND SURFACING: Sites at some playground renovation projects may contain existing playground safety surfacing that may be either sand, engineered wood fibers, rubber tiles, PIP rubberized surfacing, artificial turf or a combination of these items that may need to be protected while new improvements are made. Unless otherwise noted in our Contract, Customer shall remove and stockpile filter fabric, sand and engineered wood fibers out of the way prior to the start of work to minimize its contamination during construction and shall be responsible to place it back after completion of our work. Customer acknowledges that some damage to the existing rubber tiles or PIP rubberized surfacing or artificial turf may occur due to our work and the use of machinery, regardless of various protection methods used. The Customer shall be responsible for the cost of its repair or replacement if damage occurs.

27. REPAIRS: If any part of the project requires repairs (during or after completion) and becomes a safety concern, Customer shall close site immediately and properly barricade the site until repairs are made.

28. RETURNS: Equipment, materials associated with this Contract are highly customized and shall be considered Non-Returnable. Once the Contact is signed and equipment, materials and services are ordered, it cannot be cancelled. No Returns or Substitutions are permitted under this Contract, unless agreed to in writing by Pacific Play Systems, Inc. If Pacific Play Systems, Inc. agrees to a change involving a reduction in the Scope of Work or the Contract Sum after the award of Contract, Pacific Play Systems, Inc. shall be entitled to charge the Customer a fee 30% of the cost of items deleted for the time and effort put forth into processing those items.

Additionally, any discounts associated with the deleted items shall be reversed.

29. SEVERABILITY: Any term or provision of this Contract that is invalid or unenforceable in any situation in any jurisdiction shall not affect the validity or enforceability of the remaining terms and provisions hereof or the validity or enforceability of the offending term or provision in any other situation or in any other jurisdiction.

30. SHADE STRUCTURES: Shade structures, shade sails, umbrellas, shelters and canopies (hereafter referred to as Shade Structures) included in the Scope of Work (if any) are non-engineered (no calculations or engineering drawings are provided), non-structural (not rated for fire, wind or earthquakes), unless otherwise noted in writing.

Non-engineered, non-structural Shade Structures are considered temporary structures and will not be suitable for installation at locations that require obtaining a permit. It shall be Customer’s responsibility to determine if a permit is required for these Shade Structures and communicate same with Pacific Play Systems, Inc. in writing, prior to executing this Contract so that Shade Structures can be designed, fabricated and priced accordingly for the structural upgrades needed for engineered structures so that a permit can be obtained by others. Unless otherwise noted, if Pacific Play Systems, Inc. is instructed to obtain a permit, all associated engineering costs shall be billed at cost plus 20% as well as staff time at the rate of $120/hour, plus all applicable costs, permit fees, etc.

31. SITE WORK: Sitework includes all work that is needed to prepare the site for the installation of equipment and materials. Site work includes, but is not limited to demo, hauling, grading, installation of site materials, subbase, drainage, curbing, sidewalks, creating sufficient space to accommodate the Use Zone of the equipment, etc.

If sitework is excluded from the Scope of Work:

A. The Customer shall prepare site so that it is ready for Pacific Play Systems, Inc. to move in.

B. It shall be Customer’s responsibility to coordinate site requirements with Pacific Play Systems, Inc. and provide the proper rough grade elevation in order to have the site ready for installation.

C. If site is determined to not be ready upon move-in by Pacific Play Systems, Inc. and additional move-ins become necessary, a $2,000 - $2,500 extra move-in charge shall apply for each additional move-in and Customer shall become responsible for the safety of the site and for the safekeeping of the equipment and materials that are delivered to the job site until Pacific Play Systems, Inc. is able to return and re-start installation. Additionally, project delays due to unavailability of installers may occur if demobilization becomes necessary.

PAGE 210 of 306
6 Pacific Play Systems, Inc. - 3288 Grey Hawk Court, Carlsbad, CA 92010, Phone 760-599-7355 - California Contractors Lic. #957776 Some damage to existing grounds, pavement and landscaping shall be expected due to Pacific Play Systems, Inc.’s operations. Unless otherwise noted in writing, repairs to underground utilities, landscaping and irrigation systems are excluded from Pacific Play Systems, Inc.’s scope of work and shall be the Customer’s responsibility. Pacific Play Systems, Inc.’s liability for cleaning marks (tire marks, etc.) on pavement shall be limited to power washing.

32. SLAB: All concrete slabs associated with the Scope of Work (if any), shall be 4" nominal (3 1/2" thick) without any reinforcement, unless otherwise noted.

33. SUCCESSION & ASSIGNMENT: This Contract shall be binding upon and inure to the benefit of the Parties named herein and their respective successors and permitted assigns. A Party may not assign either this Contract or any of its rights, interests, or obligations hereunder without the prior written approval of the other Party. Customer shall not assign this Contract to any third-party implementation agencies such as property management companies, contract compliance agencies, etc. without the prior written consent of Pacific Play Systems, Inc.

34. STORAGE FEES: If a project is delayed for any reason due to factors beyond Pacific Play Systems, Inc. control, Customer agrees to pay storage fees for equipment which has already been manufactured at cost plus 20% for monthly storage rental fees (cost varies based on space required and may be more for larger projects) for equipment stored at our warehouse or at the manufacturer. If a free-standing storage container becomes necessary to secure the equipment on site, Customer shall provide the space for it and become responsible for covering its cost at the rate of cost plus 20% plus unloading costs due to the additional mobilization to unload the equipment and forklift rental.

35. SUB-BASE: PIP rubberized surfacing, tiles or artificial turf require either a concrete slab sub-base or a 90- 95% compacted Class II or crushed aggregate sub-base. When replacing an existing surface (PIP, rubber tiles or turf), it is difficult to know what kind of sub-base is installed underneath the existing surface or if that sub-base is suitable for the installation of the new surfacing, without removing the existing surface and damaging it. Unless otherwise noted in our Contract, if during work, it becomes clear that the existing sub-base is not suitable for the installation of the new surfacing and requires repairs, removal and/or replacement, cost associated with this work shall be extra (via a change order) and shall be billed at our cost plus 20%. The Customer shall be notified of this condition and the associated cost to remedy it, once discovered. If additional work becomes necessary, Customer shall execute a change order for the additional scope without delay so that work can proceed timely. If an additional move-in becomes necessary due to Customer having this work done by others, an additional move in cost shall be added to our Contract.

36. SUB-CONTRACTORS: Pacific Play Systems, Inc. reserves the right to use subcontractors to perform labor without prior consent from the Customer as long as subcontractors used are licensed and insured. Sub-contractors insurance limit is limited to $1M for General Liability Insurance, $2M General Aggregate.

37. SYNTHETIC SURFACING: Synthetic surfacing includes PIP rubberized surfacing and artificial turf. Both products use petroleum-based materials with volatile cost fluctuations. It is difficult to quote these products accurately for projects that are not installed within a six-month time frame. Pacific Play Systems, Inc. reserves the right to pass on materials cost increases from the supplier of these products for projects that are installed beyond six months after the original award date and the Customer agrees to pay the additional cost.

38. TERMINATION: This Contract shall not be terminated by either party without material cause. Pacific Play Systems, Inc. may terminate this Contract with Customer for lack of payment and for other material breach, if not cured within 10 days of receipt of a written notice to Customer. If this Contract is terminated by any party for any reason, Customer shall remain fully liable for the cost of equipment and materials ordered, administrative and other time spent on the project and for services rendered to the full extent allowed by law.

PAGE 211 of 306
7 Pacific Play Systems, Inc. - 3288 Grey Hawk Court, Carlsbad, CA 92010, Phone 760-599-7355 - California Contractors Lic. #957776

39. TESTING: Unless specifically noted in the contract, cost of any testing such as CPSI, surfacing HIC testing, soil testing, etc. shall be extra. HIC testing for PIP or turf shall not occur until the surface has a minimum of ten (10) days to cure.

40. UNFORESEEN CONDITIONS: Unforeseen conditions include, but are not limited to, having to deal with, modify or repair underground utilities (water, sewer, gas, electricity, irrigation lines & wiring, data, phone, drainage lines, etc.) found during excavation. Unforeseen Conditions shall also include having to excavate or remove boulders, rocks, rocky soil, etc. that cannot be cored through with a standard Bobcat, augur or excavated with a shovel and require the use of a jack hammer or other means. Other examples of Unforeseen Conditions include unexpected items found during excavation that were not obvious or not disclosed by Customer, such as discovery of unsuitable soil conditions, existing footings, curbing, border, pavement, tree roots, filter fabric, etc. found during the excavation for new footings, unless removal of these items was clearly noted in the Scope of Work. Finally, Unforeseen Conditions shall include any factors and/or conditions that adversely affect the cost of the project which were not disclosed by Customer in writing prior to the signing of this Contract. Cost of dealing with unforeseen conditions shall become extra and shall be added to the Contract sum at the rate of Pacific Play Systems, Inc.’s cost plus 20%. The Customer shall indemnify Pacific Play Systems, Inc. from any liability associated with damage to underground utilities due to Unforeseen Conditions.

41. UTILITIES: Utilities include but are not limited to water, sewer, gas, electricity, irrigation lines & wiring, data, phone, drainage lines, etc. To minimize damage to utilities, Customer shall mark, cap, or relocate all underground utilities that are located within the work area, prior to the start of work. Pacific Play Systems, Inc. and its subcontractors shall do their best to minimize damage to underground utilities that are identified by the Customer prior to the start of construction. However, should unintended damage occur due to site operations, repairs or relocation of underground utilities shall be excluded from the scope of our work. If utilities are damaged or have to be relocated, the Customer shall repair, replace, or relocate them at Customer’s cost as soon as possible to minimize delays. At Customer’s request, repairs may be made to damaged utilities by Pacific Play Systems, Inc., or its subcontractors at an additional cost of actual cost plus 20%.

42. UTILITY LOCATING SERVICE: For projects requiring excavation, prior to the start of work, Customer shall either clearly mark underground utilities and their depth, hire a utility locating service to locate them or authorize Pacific Play Systems, Inc. to hire a utility locating service to do so. Locating underground utilities is not an exact science and sometimes they are missed by utility locating companies or locations are not accurate, leading to unintended damage during excavation. Also, PVC or plastic pipes cannot be detected by these companies.

Therefore, some potential damage to utilities should be expected. If utilities are damaged, the Customer shall hold Pacific Play Systems, Inc., its subcontractors, employees, and officers harmless as it relates to any potential damages or liabilities. If underground utilities are damaged, regardless of whether a utility locating service was hired or not, the Customer shall be responsible for the cost of their repair, replacement, or relocation.

43. WARRANTY: Equipment warranties are provided by equipment manufacturers and not by Pacific Play Systems, Inc. Material warranties are provided by the supplier of materials and not by Pacific Play Systems, Inc.

When available, Pacific play Systems, Inc. shall provide copies of equipment and material warranties to the Customer upon request. Pacific Play Systems, Inc. shall warrant all Labor provided in the Scope of Work for a period of one year from the date of completion.

Customer acknowledges that moving parts (spinners, zip lines, track rides, rope connections, swings, etc.) require regular maintenance in order to stay operational. Pacific Play Systems, Inc. shall not be responsible for the maintenance of these items which may involve tightening of bolts, connections, etc. Any service calls required to maintain moving parts (even during the one-year labor warranty) shall be billed to Customer at cost plus 20%. Zip lines require additional maintenance to operate properly and shall be regularly maintained by the Customer.

PAGE 212 of 306

EXHIBIT B

CITY OF SAN MARINO INSURANCE REQUIREMENTS
Contractor’s Duty to Show Proof of Insurance. Contractor shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Contractor, its agents, representatives, or employees.

Coverage shall be at least as broad as:

Commercial General Liability (CGL)Contractor shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $2,000,000 per occurrence, $5,000,000 general aggregate, for bodily injury, personal injury, and property damage, and a $5,000,000 completed operations aggregate. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted.

Automobile Liability
Contractor shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the Contractor arising out of or in connection with Work to be performed under this Agreement, including coverage for any owned, hired, non-owned, or rented vehicles, in an amount not less than $1,000,000 combined single limit for each accident.

Workers’ Compensation
Contractor shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of at least $1,000,000 for Contractor ’s employees in accordance with the laws of the State of California, Section 3700 of the Labor Code In addition, Contractor shall require each subcontractor to similarly maintain Workers’ Compensation Insurance and Employer’s Liability Insurance in accordance with the laws of the State of California, Section 3700 for all of the subcontractor’s employees.

Contractor shall submit to Agency, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of Agency, its officers, agents, employees, and volunteers.

Umbrella or excess liability insurance.

Contractor shall obtain and maintain an umbrella liability insurance policy with limits that will provide bodily injury, personal injury, and property damage liability coverage, including commercial general liability, automobile liability, and employer’s liability. Such policy or policies shall include the following terms and conditions:

PAGE 213 of 306
• A drop-down feature requiring the policy to respond if any primary insurance that would otherwise have applied proves to be uncollectible in whole or in part for any reason, other than bankruptcy or insolvency of said primary insurer; • “Pay on behalf of” wording as opposed to “reimbursement”; • Concurrency of effective dates with primary policies. Should Contractor obtain and maintain an excess liability policy, such policy shall be excess over commercial general liability, automobile liability, and employer’s liability policies.

Such policy or policies shall include wording that the excess liability policy follows the terms and conditions of the underlying policies.

Installation floater. Contractor shall obtain an installation floater for the value of the property and covering the portion of the work to be constructed, installed, altered, or repaired by Contractor. The installation floater policy must include coverage for the fixtures, materials, supplies, machinery, and equipment used in or incidental to the construction project as well as property kept off-site or while in transit. Coverage must include property of others in the Contractor’s care, custody, or control. In addition to Contractor, the Agency and all subcontractors shall be named as additional insureds on the policy with coverage extending through the final completion date.

Proof of insurance.

Contractor shall provide certificates of insurance and required endorsements to Agency as evidence of the insurance coverage required herein. Insurance certificates and endorsements must be approved by Agency’s Risk Manager prior to commencement of performance. Current certification of insurance shall be kept on file with Agency for the contract period and any additional length of time required thereafter. Agency reserves the right to require complete, certified copies of all required insurance policies, at any time.

Duration of coverage.

Contractor shall procure and maintain for the contract period, and any additional length of time required thereafter, insurance against claims for injuries to persons or damages to property, or financial loss which may arise from or in connection with the performance of the Work hereunder by Contractor, their agents, representatives, employees, or subconsultants. Contractor must maintain general liability and umbrella or excess liability insurance for as long as there is a statutory exposure to completed operations claims.

Agency and its officers, officials, employees, and agents shall continue as additional insureds under such policies.

Primary/noncontributing.

Coverage provided by Contractor shall be primary and any insurance or self-insurance procured or maintained by Agency shall not be required to contribute with it. The limits of insurance required herein may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and noncontributory PAGE 214 of 306
basis for the benefit of Agency before the Agency’s own insurance or self-insurance shall be called upon to protect it as a named insured.

Products/completed operations coverage.

Products liability coverage shall extend for a minimum of three years (3) after project completion, and completed operations coverage for construction agreements shall extend for 10 years from the date of substantial completion of the project or the statute of repose, whichever is longer. Coverage shall be included on behalf of the insured for covered claims arising out of the actions of independent contractors. If the insured is using subcontractors, the Policy must include work performed “by or on behalf” of the insured. Policy shall contain no language that would invalidate or remove the insurer’s duty to defend or indemnify for claims or suits expressly excluded from coverage. Policy shall specifically provide for a duty to defend on the part of the insurer. The Agency, its officials, officers, agents, and employees, shall be included as additional insureds under the Products and Completed Operations coverage.

Agency’s rights of enforcement.

In the event any policy of insurance required under this Agreement does not comply with these requirements or is canceled and not replaced, Agency has the right but not the duty to obtain the insurance it deems necessary, and any premium paid by Agency will be promptly reimbursed by Contractor or Agency will withhold amounts sufficient to pay premium from Contractor payments. In the alternative, Agency may cancel this Agreement.

Acceptable insurers.

All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance or is on the List of Approved Surplus Line Insurers in the State of California, with an assigned policyholders’ Rating of A- (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best’s Key Rating Guide, unless otherwise approved by the Agency’s Risk Manager.

Waiver of subrogation.

All insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against Agency, its elected or appointed officers, agents, officials, employees, and volunteers or shall specifically allow Contractor or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Contractor hereby waives its own right of recovery against Agency and shall require similar written express waivers and insurance clauses from each of its subconsultants.

Enforcement of contract provisions (non estoppel).

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

PAGE 215 of 306
Requirements not limiting.

Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. If the Contractor maintains higher limits than the minimums shown above, the Agency requires and shall be entitled to coverage for the higher limits maintained by the Contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the Agency.

Notice of cancellation.

Contractor agrees to oblige its insurance agent or broker and insurers to provide the Agency with a thirty (30) day notice of cancellation (except for nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each required coverage. If any of the Contractor’s insurers are unwilling to provide such notice, then Contractor shall have the responsibility of notifying the Agency immediately in the event of Contractor’s failure to renew any of the required insurance coverages, or insurer’s cancellation or nonrenewal.

Additional insured status.

General liability, automobile liability, and umbrella/excess liability insurance policies shall provide or be endorsed to provide that Agency and its officers, officials, employees, agents, and volunteers shall be additional insureds under such policies.

Prohibition of undisclosed coverage limitations.

None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to Agency and approved of in writing.

Separation of insureds.

A severability of interests provision must apply for all additional insureds ensuring that Contractor’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the insurer’s limits of liability. The policy(ies) shall not contain any cross-liability exclusions.

Pass through clause.

Contractor agrees to ensure that its subconsultants, subcontractors, and any other party who is brought onto or involved in the project/service by Contractor (hereinafter collectively “subcontractor”), provide the same minimum insurance coverage and endorsements required of Contractor. Contractor agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. However, in the event Contractor’s subcontractor cannot comply with this requirement, which proof must be submitted to the Agency, Contractor shall be required to ensure that its subcontractor provide and maintain insurance coverage and endorsements sufficient to the specific risk of exposure PAGE 216 of 306
involved with subcontractor’s scope of work and services, with limits less than required of the Contractor, but in all other terms consistent with the Contractor’s requirements under this agreement. This provision does not relieve the Contractor of its contractual obligations under the agreement and/or limit its liability to the amount of insurance coverage provided by its subcontractors. This provision is intended solely to provide Contractor with the ability to utilize a subcontractor who may be otherwise qualified to perform the work or services but may not carry the same insurance limits as required of the Contractor under this agreement given the limited scope of work or services provided by the subcontractor. Contractor agrees that upon request, all agreements with subcontractors, and others engaged in the project, will be submitted to Agency for review.

Agency’s right to revise requirements.

The Agency reserves the right at any time during the term of the contract to change the amounts and types of insurance required by giving the Contractor a ninety (90)-day advance written notice of such change. If such change results in substantial additional cost to the Contractor, the Agency and Contractor may renegotiate Contractor’s compensation.

Self-insured retentions.

Any self-insured retentions must be declared to and approved by Agency. Agency reserves the right to require that self-insured retentions be eliminated, lowered, or replaced by a deductible, or require proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention through confirmation from the underwriter.

Timely notice of claims.

Contractor shall give Agency prompt and timely notice of claims made or suits instituted that arise out of or result from Contractor’s performance under this Agreement, and that involve or may involve coverage under any of the required liability policies.

Additional insurance.

Contractor shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the Work.

PAGE 217 of 306
Indemnification
Indemnity. Contractor shall indemnify, defend with legal counsel approved by Agency, and hold harmless Agency, its officers, officials, employees and volunteers from and against all liability, loss, damage, expense, cost (including without limitation reasonable attorney’s fees, expert fees and all other costs and fees of litigation) of every nature arising out of or in connection with Contractor’s negligence, recklessness or willful misconduct in the performance of work hereunder or its failure to comply with any of its obligations contained in this agreement, except such loss or damage which is caused by the sole or active negligence or willful misconduct of the Agency. Should conflict of interest principles preclude a single attorney from representing both Agency and Contractor, or should Agency otherwise find Contractor’s attorney unacceptable, then Contractor shall reimburse the Agency its costs of defense, including without limitation reasonable attorney’s fees, expert fees and all other costs and fees of litigation. The Contractor shall promptly pay any final judgment rendered against the Agency (and its officers, officials, employees, and volunteers) with respect to claims determined by a trier of fact to have been the result of the Contractor’s negligent, reckless, or wrongful performance. It is expressly understood and agreed that the foregoing provisions are intended to be as broad and inclusive as is permitted by the law of the State of California and will survive termination of the Agreement.

Contractor obligations under this section apply regardless of whether or not such claim, charge, damage, demand, action, proceeding, loss, stop notice, cost, expense, judgment, civil fine or penalty, or liability was caused in part or contributed to by an Indemnitee. However, without affecting the rights of Agency under any provision of this agreement, Contractor shall not be required to indemnify and hold harmless Agency for liability attributable to the sole or active negligence of Agency, provided such active negligence is determined by agreement between the parties or by the findings of a court of competent jurisdiction. In instances where Agency is shown to have been actively negligent and where Agency’s active negligence accounts for only a percentage of the liability involved, the obligation of Contractor will be for that entire portion or percentage of liability not attributable to the active negligence of Agency.

PAGE 218 of 306

LACY PARK

SITE PLAN

ADA ACCESSIBILITY GUIDELINES - ADAAG CONFORMANCE

ELEVATED ACCESSIBLE RAMP ACCESSIBLE GROUND TYPES
20 8/5 4/5 22/7 16/4 R5

FOR KIDS
AGES
[Mixed]

GENERAL NOTES
This Preliminary Site Plan is
based on measurements that
were provided in the initial
planning phase. All
dimensions must be verified
prior to the submission of a
purchase order. Playcraft
Systems will not be held
responsible for any
discrepancies between actual
dimensions and dimensions
submitted in the planning
phase.

The Minimum Use Zone for a
play structure is based on the
product design at the time of
proposal. Components and
structure designs may be
subject to change which may
affect dimensions. Therefore,
before preparing the site, we
strongly recommend obtaining
final drawings from the factory
(available after the order is
placed and included in the
Assembly Manual).

WARNING: Accessible safety
surfacing material is required
beneath and around this
equipment that has a critical
height value (Fall Height)
appropriate for the highest
accessible part of this
equipment. Refer to the
CPSC'S Handbook For Public
Playground Safety, Section 4:

Surfacing.

PROJECT # PAC24-05.08.24
DATE 12/13/2024
Pacific Play Systems, Inc.

MIN. USE ZONE 60' x 80' (18.212m x 24.282m)
PAGE 219 of 306

LACY PARK

TOP VIEW

ADA ACCESSIBILITY GUIDELINES - ADAAG CONFORMANCE

ELEVATED ACCESSIBLE RAMP ACCESSIBLE GROUND TYPES
7 2/4 4/0 11/2 10/2
CHILD CAPACITY 107 MAX FALL HEIGHT 48
R5

FOR KIDS
AGES
2-5

GENERAL NOTES
This conceptual plan is based
on information provided prior
to construction. Detailed site
information, including the
following, should be obtained,
evaluated, and utilized in the
final project design. Exact site
dimensions, topography,
existing utilities, soil
conditions and drainage
solutions.

WARNING: Accessible
safety surfacing material is
required beneath and
around this equipment that
has a critical height value
(Fall Height) appropriate
for the highest accessible
part of this equipment.

Refer to the CPSC'S
Handbook For Public
Playground Safety,
Section 4: Surfacing.

STRUCTURE # R502CCB3A
PROJECT # PAC24-05.08.24
DATE 12/13/2024
Pacific Play Systems, Inc.

MIN. USE ZONE 40' x 46' (12.058m x 13.755m)
PAGE 220 of 306

LACY PARK
SW VIEW R5

FOR KIDS
AGES
2-5
STRUCTURE # R502CCB3A
PROJECT # PAC24-05.08.24
DATE 12/13/2024
PAGE 221 of 306

LACY PARK
SE VIEW R5

FOR KIDS
AGES
2-5
STRUCTURE # R502CCB3A
PROJECT # PAC24-05.08.24
DATE 12/13/2024
PAGE 222 of 306

LACY PARK
NE VIEW R5

FOR KIDS
AGES
2-5
STRUCTURE # R502CCB3A
PROJECT # PAC24-05.08.24
DATE 12/13/2024
PAGE 223 of 306

LACY PARK
NW VIEW R5

FOR KIDS
AGES
2-5
STRUCTURE # R502CCB3A
PROJECT # PAC24-05.08.24
DATE 12/13/2024
PAGE 224 of 306
PAGE 225 of 306
PAGE 226 of 306

LACY PARK

TOP VIEW

ADA ACCESSIBILITY GUIDELINES - ADAAG CONFORMANCE

ELEVATED ACCESSIBLE RAMP ACCESSIBLE GROUND TYPES
0 0/0 0/0 1/0 1/0
CHILD CAPACITY 12 MAX FALL HEIGHT 96
None

FOR KIDS
AGES
5-12

WARNING: Accessible
safety surfacing material is
required beneath and
around this equipment that
has a critical height value
(Fall Height) appropriate
for the highest accessible
part of this equipment.

Refer to the CPSC'S
Handbook For Public
Playground Safety,
Section 4: Surfacing.

STRUCTURE # FREPC2476
PROJECT # PAC24-05.08.24
DATE 12/13/2024
Pacific Play Systems, Inc.

MIN. USE ZONE 20' x 21' (6.048m x 6.096m)
PAGE 227 of 306

LACY PARK

SW VIEW

FOR KIDS
AGES
5-12
STRUCTURE # FREPC2476
PROJECT # PAC24-05.08.24
DATE 12/13/2024
PAGE 228 of 306

CITY OF SAN MARINO
FY 202-202CAPITAL BUDGET REQUEST
Capital Request Name:

Capital Request
Description (Summary):

Location:

Proposing Department Contact Person Expense Type
Estimated Total
Cost
Capital Request
Labor Source
Multi-Year Funding Cycle
FY

FY

FY

FY

FY
202
/20
Estimated
Total
SOURCE
Source Key: CE (Capital Equipment), CC (Capital Construction), D (Donations), PC (Prop C), MR (Measure R)00 0HDVXUH0
,
GT (Gas Tax), TDA (Transportation Development Act), PA (Prop A), MW (Measure W), &236 &236*UDQW
O (Other)
Photo of Equipment and/or Map Showing Project Location
Lacy Park Playground Management Program
Phased replacement of playground equipment to improve long-term safety and increase accessibility
Lacy Park
Parks and Public Works Amber Shah Parks and Grounds
$ 300,000 Ongoing Project/Program
Contractor
$ 300,000 $ 350,000 $ 150,000 $ 0 $ 0 $ 800,000
CC $ 300,000 CC $ 350,000 CC $ 150,000 CC CC CC $ 800,000 $ 0
$ 0
$ 0
$ 0
255
PAGE 229 of 306

CITY OF SAN MARINO
FY 202-202CAPITAL BUDGET REQUEST
Request Description and Justification
(Provide a description of your request that includes a justification describing the benefit of the expenditure to the department/City) Financial Summary Section
Estimated Costs Amount Funding Source(s) Amount
Acquisition Capital Construction (394)
Plans/Specs/Engineering Capital Equipment (591)
Construction Donations (281)
Contingencies General Fund (101)
General Fund Costs* Other:

Other: Total
Total
*Ongoing Costs to General Fund (Provide cost and detail) General Fund Cost
)iscal Year
Description of General Fund Costs
The existing play structures at the Lacy Park playground are over 10 years old and showing signs of age. In 2023, the City formed a subcommittee comprised of members of both the Public Safety and Recreation Commissions ito evaluate options for the playground. A playground safety audit was also conducted to determine if repairs are feasible without a full reconstruction.

Based on the results of the audit and discussion with the Playground Committee, a multi-year phased replacement of the playground was approved by the City Council in October 2024, with FY 24-25 funds (including a generous donation from the Paul Elieff Memorial Fund via the Rotary Club of San Marino) to be used for replacement of the ages 5-12 structure and swing set. For FY 25-26, funds will be utilized for replacement of the under-5 structure and the addition of freestanding pieces, in accordance with the multi-year phased plan
$ 300,000
$ 275,000
$ 25,000 $ 300,000
$ 300,000
FY 25-26
Contingencies
256
PAGE 230 of 306
TO: Mayor and City Council
FROM: Philippe Eskandar, City Manager
BY: Amber Shah, Parks & Public Works Director/City Engineer DATE: June 27, 2025
SUBJECT: APPROVAL OF AMENDMENT NO. 4 WITH ECONOMICS,
INC. FOR SOLID WASTE CONSULTING SERVICES IN THE
AMOUNT OF $99,304 AND APPROVAL OF A FY 24-25
BUDGET AMENDMENT IN THE AMOUNT OF $111,550

STRATEGIC PLAN CRITICAL SUCCESS FACTORS
Efficient, Responsive, and Effective City Services
Fiscally Responsible and Transparent City Government

BACKGROUND
On January 1, 2022, SB 1383, California’s Short-Lived Climate Pollutant Reduction Act, went into effect aiming to reduce organic waste disposal in landfills with new state-mandated solid waste regulations on all jurisdictions.

In 2023, with an existing solid waste agreement that was not SB 1383 compliant and set to expire before the end of the year, the City retained Economics, a solid waste subject matter expert, to assist with the negotiation of a new solid waste agreement with the City’s waste hauler at the time, Athens Services. As negotiations with Athens evolved from securing a shortterm extension to their existing agreement to working to negotiate a new SB 1383 compliant agreement, Amendment No. 1 with Economics was approved on October 11, 2023, increasing the compensation to $210,000. This enabled Economics to perform services crucial to the negotiations, including valuable analysis of the existing agreement and assisting the City with overall negotiations given the complexity of solid waste agreements, particularly a new agreement incorporating the necessary SB 1383 provisions. Amendment No. 2 with Economics was approved in December 2024, extending the term for an additional year through December 31, 2025.

Gretchen Shepherd Romey, Mayor
Tony Chou, Vice Mayor
Hunter Chang, Council Member
John Chou, Council Member
Calvin Lo, Council Member
PAGE 231 of 306
Exclusive negotiations with Athens were ongoing for more than a year, with significant challenges in securing terms that met regulatory compliance and provided a defensible rate structure for residents. Therefore, at its February 28, 2025, meeting, the City Council approved Amendment No. 3 with Economics, for additional scope of services to include the development of a Request for Proposals (RFP) to allow for a competitive solicitation process for solid waste services. In addition to the development of the RFP, Amendment No. 3 also included providing assistance to the City with the rollout of various SB 1383 compliant programs that would be included in the new solid waste agreement. The table below provides a summary of the contract actions:

The cost for the development of the RFP included in Amendment No. 3 was provided with the understanding that the RFP process would take place over approximately 6-9 months (which was already a compressed schedule for this type of RFP compared to the industry average of 18-24 months) with the intent that the process would have concluded prior to December 31, 2025, when Athens Services’ contract was due to expire.

However, on March 24, 2025, the City received a letter from Athens Services stating the company was exercising its right to terminate its existing contract and would be ceasing all operations in the City on May 30, 2025. As a result, the City had to expedite the RFP process in order to secure a new waste hauling contract within eight (8) weeks, a substantially shorter timeline than originally anticipated, to ensure continuity of service. Due to the extraordinary circumstances and the significant amount of work that had to be completed in such a short time frame, greater costs were incurred than originally expected and an additional contract amendment is now necessary. However, the City will be reimbursed $225,000 under the terms of the new waste hauling agreement with Valley Vista Services.

DISCUSSION
As a result of Athens Services termination of its agreement with 60-day notice to the City, the necessity of securing a new waste hauling agreement that would go into effect on May 31, 2025, required the City to complete the Request for Proposals process in a significantly shorter timeline than is generally the case, given their complexity. As such, Economics’ efforts related to the development of the RFP were drastically compressed from several Contract Action Date End Date Amount Total NTE
Entered Professional
Services Agreement
05/22/2023 12/31/2024 $30,000 $30,000
Amendment No. 1 10/11/2023 12/31/2024 $180,000 $210,000 Amendment No. 2
(term extension)
12/11/2024 12/31/2025 $0 $210,000
Amendment No. 3 02/28/2025 12/31/2025 $198,910 $408,910 PAGE 232 of 306
months into several weeks. In addition, the streamlined RFP incorporated a modified Q&A process that consisted of additional meetings with each of the six (6) prospective haulers who submitted letters of intent to participate in the RFP process and resulted in 160 questions that the City responded to during meetings and in writing and made certain revisions to (a) the draft contract contained in the RFP and (b) certain proposal forms via the issuance of seven (7) addenda to the RFP, all of which took considerable time and effort in the shortened timeline. The extraordinary circumstances and the substantial workload required within a short timeframe led to higher-than-anticipated costs, necessitating an additional contract amendment. However, under the new terms for the waste hauling agreement with Valley Vista Services, the City will be reimbursed $225,000.

As the RFP process has now concluded, the support of Economics services is still necessary to assist the City during the transition period with the City’s new waste hauler, Valley Vista Services (VVS), and with upcoming regulatory compliance matters such as the City’s required annual reporting to CalRecycle.

The amount originally included in Amendment No. 3 for services related to SB 1383 compliance is not changed by the proposed Amendment No. 4 but the scope of services has been revised to prioritize critical items needed during the initial implementation of the new agreement with VVS, and in particular to update attachments to the new agreement to align with the City Council approved two-stream collection system.

When drafting the contract and issuing the RFP it was not envisioned that a proposal would be received and approved for two-stream collection and processing. For most jurisdictions, CalRecycle requires a three-stream collection system for SB 1383, however a jurisdiction may implement a twostream collection system if the collected materials are brought to a CalRecycle designated High Diversion Organics Waste Processing Facility (HDOWPF). A two-stream collection system was approved with all collected materials from San Marino being transported to Valley Vista’s Grand Central Recycling and Transfer Station, a CalRecycle designated HDOWPF, for processing. Therefore, Attachment B (Scope of Work), Attachment N (Charaterizations of Divertable Materials and MSW) and other attachments to the contract need to be updated to include a two-stream collection system. Economics will update Attachments B and N, as well as other related attachments, to include the parameters and requirements for Valley Vista’s implementation of a two-stream collection system in San Marino through the use of the City-directed change in scope provisions of the agreement.

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FISCAL IMPACT & PROCUREMENT REVIEW
The adopted FY 2024-25 budget includes $240,000 in Account #101-40-4104- 0000 (Contract Engineering Services). Of this line-item total, $200,000 was budgeted for Economics’ services, prior to the accelerated RFP process needing to occur. As a result of this process, a total of $111,550 must be appropriated to cover the costs associated with the accelerated RFP to Account #101-40-4104-0000 in FY 2024-25. Ultimately, these costs are reimbursable per the City’s agreement with Valley Vista Services up to $225,000. As such, there will be no net impact to the City’s funds as a result of the budget amendment.

LEGAL REVIEW
The City Attorney's office has reviewed and approved as to form.

RECOMMENDATION
Staff recommends that the City Council approve Amendment No. 4 to the agreement with Economics, Inc. for solid waste consulting services, increasing the contract amount by $99,304, and approve a budget amendment to the FY 2024-25 budget appropriating $111,550 into Account #101-40-4104-0000. If the Council concurs with staff’s recommendation, an appropriate motion would be:
“I move to approve Amendment No. 4 to the agreement with Economics, Inc. for solid waste consulting services increasing the contract amount by $99,304, authorize the City Manager to execute the Amendment on behalf of the City, and approve a budget amendment to the FY 24-25 budget appropriating $111,550 into Account #101-40-4104-0000.”

ATTACHMENTS

1. Draft Amendment No. 4 with Economics

2. Original Agreement with Economics and Amendments No. 1, 2, and 3.

3. Proposal from Economics Inc. with Revised Scope of Work PAGE 234 of 306
Doc No. 2547482
AMENDMENT NO. 4 TO AGREEMENT BETWEEN THE CITY OF SAN MARINO AND ECONOMICS, INC.

THIS AMENDMENT NO. 4 TO THE AGREEMENT (“Amendment No. 4”) by and between the CITY OF SAN MARINO (“City”) and Economics, Inc., a California corporation (“Consultant”) is effective as of June 27, 2025. City and Consultant are collectively referred to as the “Parties.”

RECITALS
A. City and Consultant entered into that certain Agreement for Professional Services dated May 22, 2023 (“Original Agreement”) whereby Consultant agreed to provide those professional services specified in the Original Agreement.

B. City and Consultant entered into Amendment No. 1 to the Original Agreement between the City and Consultant dated October 11, 2023 to increase the compensation amount by $180,000 to a new compensation amount of $210,000
C. City and Consultant entered into Amendment No. 2 to the Original Agreement between the City and Consultant dated December 11, 2024 extending the term of the Agreement through December 31, 2025.

D. City and Consultant entered into Amendment No.3 to the Original Agreement between the City and Consultant dated February 28, 2025 to increase the compensation amount by $198,910 to a new compensation amount of $408,910 and to incorporate additional work into the Scope of Services.

E. City and Consultant now desire to amend the Original Agreement, as amended by Amendment No. 1, Amendment No. 2, and Amendment No. 3 in accordance with Section 16 of the Agreement to increase the compensation amount by $99,304 to a new compensation amount of $508,214 and to amend the Scope of Services.

TERMS

1. Contract Changes. The Original Agreement is amended as provided herein.

A. Section 3 of the Original Agreement is amended to read as follows:

3.0 Consultant’s Compensation
City will pay consultant in accordance with fee schedule set forth in Exhibit B but in no event will the City pay more than $508,214. Any additional work authorized by the City pursuant to Section 1.4 will be compensated in accordance with the fee schedule set forth in Exhibit B, unless otherwise approved by City in writing.

Pursuant to Section 2.06.05 of the San Marino City Code, this Agreement shall not be effective unless previously approved by the City Council if it is for professional services greater than thirty thousand dollars ($30,000.00).

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Doc No. 2453984
B. Exhibit A (Scope of Services) is amended to include the attached document.

2. Continuing Effect of Agreement. Except as amended by Amendment No. 1, Amendment No. 2, Amendment No. 3, and this Amendment No. 4, all provisions of the Original Agreement shall remain unchanged and in full force and effect. From and after the date of this Amendment No. 4, whenever the term “Agreement” appears in the Agreement, it shall mean the Original Agreement, as amended by Amendment No. 1, Amendment No. 2, Amendment No. 3 and Amendment No. 4.

3. Authority. The persons executing this Amendment No. 4 on behalf of the Parties hereto warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Amendment No. 4 on behalf of said party, (iii) by so executing this Amendment No. 4, such party is formally bound to the provisions of this Amendment No. 4, and (iv) the entering into this Amendment No. 4 does not violate any provision of any other agreement to which said party is bound.

IN WITNESS WHEREOF, the Parties hereto have executed this Amendment No. 4 as of the date and year first hereinabove written.

City of San Marino Economics, Inc.

By:_____________________________ By:______________________________ Philippe Eskandar, Signature
City Manager
______________________________
Print Name and Title
Date:____________________________ Date: ____________________________ ATTEST: APPROVED AS TO FORM:
___________________________ ________________________________ Alison Walker Joe Montes
City Clerk City Attorney
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Revised Scope of Work for Solid Waste and Recycling Consulting Services SECTION IV. REVISED SCOPE OF WORK FOR

SOLID WASTE AND RECYCLING SERVICES
TASK 1: CALRECYCLE CONFERENCE CALL AND ANNUAL VISIT
EcoNomics is familiar with the CalRecycle Local Assistance and Market Development (LAMD) representatives and how data gathered during the site visits and conference calls is used to assess a jurisdiction’s compliance. EcoNomics assisted the City in 2023 with its site visit and conference call and is currently working with the City’s LAMD CalRecycle representative this year. The City is likely going to be facing discussions with CalRecycle’s Jurisdiction and Agency Compliance and Enforcement (JACE) on its compliance status. EcoNomics has worked with other jurisdictions who were placed on compliance orders and needed plans to be designed and implemented so that the jurisdiction avoided fines. Depending on CalRecycle’s next discussion(s) with the City we can assist the City with JACE response as needed.

For the upcoming LAMD site visit, EcoNomics will facilitate tours of the City of San Marino residential and commercial sectors as needed for CalRecycle’s annual site visit in July or August 2025.

For reference, in addition to assisting the City of San Marino with its CalRecycle Conference Call and Site Visit, EcoNomics is currently also assisting the Cities of Laguna Hills, Laguna Niguel, Lake Forest, Santa Ana, Tustin, Mission Viejo and Anaheim.

TASK 2: CALRECYCLE ELECTRONIC ANNUAL REPORT (EAR)
CalRecycle requires the submittal of an Electronic Annual Report (EAR) and arranges jurisdiction site visits for verification and inspection purposes on an annual basis. The tasks below describe the services that EcoNomics will provide to assist staff in meeting their mandated reporting duties.

In addition to the City of San Marino’s EAR submittal for calendar year 2023, EcoNomics assisted the following seven cities with gathering data for and/or drafting the Electronic Annual Report (EAR) to CalRecycle: Anaheim, Buena Park, Laguna Niguel, Lake Forest, Laguna Hills, Mission Viejo, and Tustin. The annual reporting process is an important opportunity for the City to showcase its diversion programs and to demonstrate its compliance with state diversion mandates.

As part of its preparation of the annual report, EcoNomics takes the following actions and gathers the following data points to provide CalRecycle a holistic picture of the City’s diversion programs. EcoNomics will focus its efforts on AB 341, AB 1826, and SB 1383 compliance reporting assistance vis-à-vis the annual report.
• Analysis of SB 1383 compliance rate
• Narrative summary of all outreach efforts conducted to increase compliance • Contact the hauler and review City records to obtain information on outreach used to inform residents and businesses of recycling programs
• Coordination with local food banks to determine the weight of edible materials donated PAGE 237 of 306
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Revised Scope of Work for Solid Waste and Recycling Consulting Services Over the last decade, EcoNomics has established a database and a preparation schedule for assembling the necessary information for submittal of CalRecycle’s required Electronic Annual Report (EAR). As part of the procedure, a diverse set of tonnage data is collected and verified. This comprehensive database leads to a thorough annual report that provides CalRecycle with a clear narrative that strongly demonstrates the City’s compliance with diversion mandates.

TASK 3: CALRECYCLE IMPLEMENTATION RECORD
Cities must maintain all records required by the SB 1383 regulation in an Implementation Record (14 CCR Section 18995.2). In preparation for the City’s CalRecycle Conference Call on December 9, 2024, EcoNomics worked with City staff to gather the existing documentation of the current incomplete implementation. The Implementation Record will be expanded in tandem with any compliance actions as directed by CalRecycle’s JACE division.

In preparation for the City’s upcoming CalRecycle Conference Call, EcoNomics will update the City’s Implementation Record to include all City documents and data generated to date applicable to the Implementation Record.

For reference, EcoNomics has assisted and/or currently assists with gathering data, compilation and maintenance of the Implementation Records for the Cities of Laguna Niguel, Lake Forest, Laguna Hills, Santa Ana, Anaheim, Mission Viejo and Tustin.

TASK 4: PROPOSITION 218 ASSISTANCE
The City’s previous hauler’s rates had been approved through a Proposition 218 (Prop 218) process. Due to the compressed timeframe to conduct the RFP process and select a hauler, the City’s new contract with Valley Vista Services includes the previous hauler’s rates for the first four months of the contract, from May 31 through September 30, 2025. These rates are included as Attachment D-1 to the contract.

Increases in solid waste and recycling rates require the City to conduct a Prop 218 process including preparation of a Prop 218 notice, mailing the notice to all parcel owners 45 days in advance of the Prop 218 hearing, and conducting a Prop 218 public hearing.

Utilizing the rates in Attachment D-1 allows the City the time needed to conduct a Prop 218 process for Valley Vista’s new rates which are included as Attachments D-2 and D-3 to the contract. Attachment D-2 are the rates for Valley Vista’s two-stream collection system which include utilizing Valley Vista’s Grand Central Recycling and Transfer Station, a CalRecycle designated High Diversion Organic Waste Processing Facility (HDOWPF). Attachment D-3 are the rates for Valley Vista’s three-stream collection system which would automatically go into effect if Valley Vista’s Grand Central Recycling and Transfer Station loses its HDOWPF CalRecycle designation. Both Attachments D-2 and D-3 will be included in the City’s Prop 218 process.

To assist with the City’s Prop 218 process, EcoNomics will prepare a draft of the Prop 218 notice for review and finalization by the City Attorney, as well as a drafts of documents to be posted on the City’s website during the Prop 218 process including the Attachment D-2 and Attachment D-3 rate sheets, and the administrative process for rate adjustments. EcoNomics will also prepare a draft Prop 218 hearing staff report for review and finalization by City staff and the City Attorney.

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Revised Scope of Work for Solid Waste and Recycling Consulting Services EcoNomics has assisted the Cities of Lake Forest, Laguna Hills, and Tustin with the Prop 218 process in recent years.

TASK 5: UPDATE CONTRACT ATTACHMENTS B AND N, AND OTHER RELATED

ATTACHMENTS
EcoNomics prepared the City’s new SB 1383-aligned contract for the City’s Request for Proposals for Solid Waste and Recycling Services. The City received four proposals in response to its RFP. In order for the contract to fulfill the requirements of SB 1383, the contract included a three-stream collection system.

The City received a proposal from Valley Vista Services which included a two-stream collection system as Valley Vista’s Optimal Collection System. For most jurisdictions, CalRecycle requires a three-stream collection system for SB 1383, however a jurisdiction may implement a two-stream collection system if the collected materials are brought to a CalRecycle designated High Diversion Organic Waste Processing Facility (HDOWPF). The City Council approved a two-stream collection system with all collected materials from San Marino being transported to Valley Vista’s Grand Central Recycling and Transfer Station, a CalRecycle designated HDOWPF, for processing.

When drafting the contract and issuing the RFP, it was not envisioned that a proposal would be received and approved for two-stream collection and processing. Therefore, Attachment B (Scope of Work), Attachment N (Characterizations of Divertible Materials and MSW) and other attachments to the contract need to be updated to include a two-stream collection system. EcoNomics drafted Attachment B and Attachment N when drafting the contract. EcoNomics will update Attachments B and N, as well as other related attachments, to include the parameters and requirements for Valley Vista’s implementation of a two-stream collection system in San Marino through the use of the City-directed change in scope provisions in the agreement.

TASK 6: ASSIST WITH CONTRACT TRANSITION
Transitioning to a new hauler agreement requires considerable review and monitoring of the hauler’s contractual obligations to ensure that the transition is occurring as required by the City and with the least amount of disruption to the residents and businesses as possible. In order to assist the City of San Marino with the transition to the new contract, EcoNomics has included the tasks below.

As EcoNomics drafted the City’s new contract with Valley Vista Services, EcoNomics has an in-depth understanding of the various contractual mechanisms contained in the contract that can assist the City of San Marino in overseeing implementation of the City’s new contract during the transition period from June 1 through September 30, 2025. EcoNomics will assist in ensuring as smooth as possible transition to the new contract, evaluating progress and monitoring the hauler’s implementation plan for the transition period, evaluating development of outreach materials, and developing of a potential plan for early rollout of residential carts.

A summary of anticipated contract management tasks to be performed during the transition include, but are not limited to:
• Review and monitor Valley Vista’s progress with implementation plan for the transition period
• Troubleshoot operational concerns during the transition PAGE 239 of 306
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Revised Scope of Work for Solid Waste and Recycling Consulting Services • Assist with contract interpretation
• Review and monitor public outreach efforts, with special attention paid notices for new services, any added costs for customers, changes in types of service to ensure that adequate notice and explanation is provided to the affected customers • Review of format of reports to be submitted by the hauler as required by the new contract • Monitor customer service and assist in resolving any issues related to customer service • Monitor routing and assist in resolving any issues related to routing • Review schedule for submittal of hauler reports to City regarding the transition to the new contract
• Review hauler reports submitted to City regarding the transition to the new contract • Develop potential plan for early roll-out of residential carts with Valley Vista • Addressing any proposals by the hauler that materially impact costs or timing of program implementation
Further, we have assisted several cities with implementing a new contract transition in the post-SB 1383 landscape, including Tustin, Lake Forest, Laguna Hills, Laguna Niguel, Mission Viejo, Newport Beach, and Santa Ana. The weekly, bi-weekly and monthly meetings with the City, the hauler, and EcoNomics are important in keeping an open line of communication between all parties and to clearly communicate the City’s expectations. To track time sensitive contractual obligations, EcoNomics will develop a tracking document that has aggregated these items in a spreadsheet allowing for quick reference of pending deliverables. This tracking document is helpful when developing agendas for meetings with the Cities and the hauler to ensure all parties are aware of upcoming deliverables.

TASK 7: PROGRESS MEETINGS WITH CITY AND TRANSITION MEETINGS WITH

CITY AND HAULER
EcoNomics will schedule progress meetings as needed with the City regarding the CalRecycle EAR, conference call and site visit and implementation record. These meetings serve to provide updates and review status of the deliverables, and the work effort completed and in progress.

In order to ensure the new contract transition goes as smooth as possible, EcoNomics recommends two meetings per month in June, July, August and September with the City, Valley Vista, and EcoNomics.

EcoNomics will prepare and distribute agendas in advance of meetings, and distribute notes and action items after the meetings. EcoNomics will also create a tracking spreadsheet to ensure the contract requirements are being met and the tasks included in the implementation plan for the transition period are being accomplished. When appropriate, EcoNomics will hold an internal meeting with city staff to discuss and strategize about sensitive agenda items before meeting with the hauler.

The meetings listed above ensure that there is constant and open communication between the hauler and the City. The City’s expectations of the hauler will be clearly communicated in writing on the agenda and orally during the meetings to assist in ensuring as smooth of a transition as possible. In addition, the meetings allow the hauler and/or the City to raise any issues or concerns as they occur, and to work together to resolve these issues effectively and in a timely manner. That way, there are not surprises or misunderstandings on either party’s side, the City or the hauler.

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Revised Scope of Work for Solid Waste and Recycling Consulting Services SECTION V. COST PROPOSAL

STAFF HOURLY RATES
Name Position Hourly Rate
William O’Toole President $235
Cerene St. John JD Attorney $290
Trevor Blythe Vice President $195
Linda Furbee JD Director $165
Lisa Robles MS Director $165
Sara Aubery Manager $145
Ian Bevan MBA Coordinator $115
Valeria Ferrufino Coordinator $115
Clarisa Gomez Coordinator $115
Bella Sullins Coordinator $115
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*Staff hours may be moved between tasks upon City approval.

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Solid Waste & Recycling
Consulting Services

REVISED SCOPE OF WORK FOR

SOLID WASTE AND RECYCLING SERVICES
City of San Marino
June 2025
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TABLE OF CONTENTS
COVER LETTER .................................................................................................................................... 3 SECTION I. BACKGROUND ................................................................................................................... 4 SECTION II. KEY PERSONNEL ............................................................................................................... 6 William O’Toole...............................................................................................................................................6 Trevor Blythe MBA ..........................................................................................................................................7 Linda Furbee JD ...............................................................................................................................................8 Lisa Robles MS.................................................................................................................................................8 Sara Aubery MS ...............................................................................................................................................9 Ian Bevan MBA ..............................................................................................................................................10 Valeria Ferrufino............................................................................................................................................10 Clarisa Gomez................................................................................................................................................11 Bella Sullins....................................................................................................................................................11 SECTION III. SUBCONTRACTOR ......................................................................................................... 12 Cerene St. John JD.........................................................................................................................................12 SECTION IV. REVISED SCOPE OF WORK FOR SOLID WASTE AND RECYCLING SERVICES ................... 14 TASK 1: CalRecycle Conference Call and Annual Visit..................................................................................................14 TASK 2: CalRecycle Electronic Annual Report (EAR)....................................................................................................14 TASK 3: CalRecycle Implementation Record................................................................................................................15 TASK 4: Proposition 218 Assistance.............................................................................................................................15 TASK 5: Update Contract Attachments B and N, and Other Related Attachments.....................................................16 TASK 6: Assist with Contract Transition.......................................................................................................................16 TASK 7: Progress Meetings with City and Transition Meetings with City and Hauler .................................................17 SECTION V. COST PROPOSAL ............................................................................................................ 18 Staff Hourly Rates........................................................................................................................................................18 Proposed Budget – Revised Scope of Work.................................................................................................................19 SECTION VI. REFERENCES .................................................................................................................. 20 PAGE 276 of 306
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COVER LETTER
June 13, 2025
Amber Shah
Parks & Public Works Director/City Engineer
City of San Marino
2200 Huntington Drive
San Marino, California 91108
RE: Revised Scope of Work for Solid Waste and Recycling Services Dear Ms. Shah:

EcoNomics Inc. is pleased to submit the Revised Scope of Work for Solid Waste and Recycling Services to the City of San Marino for with solid waste and recycling services for June 1 through September 30, 2025.

The Revised Scope of Work includes the following tasks:
• CalRecycle Conference Call and Site Visit
• CalRecycle Electronic Annual Report (EAR)
• Proposition 218 Assistance
• Update Attachments B and N, and Other Related Attachments • Assist with Contract Transition
• Progress Meetings with City Staff & Transition Meetings with Hauler and City We are excited by the opportunity to assist the City of San Marino with the above outlined tasks and welcome any questions you might have about our Revised Scope of Work. Please feel free to contact me at 858-886-6657 (cell) or email [email protected] if you have any questions.

Sincerely,
Trevor Blythe
Senior Vice President
EcoNomics, Inc. (a Colorado ‘C’ Corporation dba ECAL-NOMICS, INC. in California) Corporate Office
832 Camino del Mar, Suite 2
Del Mar, California 92014
(858) 793-9200
Orange County Office
34185 Street of the Violet Lantern, Suite 104
Dana Point, California 92629
(858) 793-9200
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Revised Scope of Work for Solid Waste and Recycling Consulting Services SECTION I. BACKGROUND
Since 1977, EcoNomics, Inc. has assisted municipal clients in creating sustainability systems that are efficient, cost effective and in compliance with all federal and state laws and regulations. EcoNomics has assisted public and private sector businesses with strategic planning and implementation services for recycling, source reduction, organic waste management, buy-recycled, manufacture-for recyclability and the development of sustainability profiles.

EcoNomics provides a range of specific consulting services designed to create an effective waste management and recycling program. EcoNomics’ experience encompasses the areas listed below.

Strategic Planning, Development and Program Implementation for Compliance with California State Laws AB 939, AB 341, AB 1826 and SB 1383. EcoNomics identifies options, performs cost analyses, develops recommendations, and implements programs to achieve maximum waste reduction and diversion for compliance with the following State laws:
• AB 939 EcoNomics prepares AB 939 Annual Reports and SB 1066 requests, and acts as a liaison between jurisdictions and the California Department of Resources Recycling and Recovery (CalRecycle) on AB 939 compliance issues. EcoNomics successfully works with businesses and multi-family complexes to implement recycling programs that increased the client’s AB 939 diversion rate and to further demonstrate compliance with programmatic requirements of AB 939.
• AB 341 EcoNomics assists its client municipalities with implementing commercial and multifamily recycling programs to comply with AB 341. To this end, EcoNomics develops compliance plans for its clients; drafts and implements cost-saving recycling proposals for large commercial and multi-family generators; develops outreach materials for distribution to AB 341-non-compliant properties to notify them of the law; and monitors progress with compliance.
• AB 1826 EcoNomics has been implementing organics diversion programs at restaurants, hotels, schools and large stadiums since 2002. For AB 1826 compliance, EcoNomics assists its clients with identifying the restaurants that meet the compliance thresholds; developing outreach materials to notify the restaurants of the requirement to divert organics; and works directly with the restaurants to implement cost-saving organics diversion programs. • SB 1383 Since 2018, EcoNomics has overseen three RFPs and five negotiations that produced SB 1383 specific agreements. In addition, we are assisting several jurisdictions in complying with SB 1383 with respect to planning and provision of infrastructure options.

Franchise Agreements, Contract/Franchise Negotiations, Collection Contracts, and Contract Management. EcoNomics assists local governments in competitive procurements and negotiations for franchise/service contracts, contract amendments, rate reviews, audits, and contract management and oversight. The procurements feature contracts/agreements that contain specific measurable and enforceable performance provisions. These customized provisions ensure that the jurisdictions we serve can effectively respond to both current and anticipated regulatory and legislative requirements and PAGE 278 of 306
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Revised Scope of Work for Solid Waste and Recycling Consulting Services mandates. Specifically, EcoNomics assists cities and counties in customizing procurement services for refuse collection, materials recovery facilities, curbside recycling programs, commercial/industrial recycling programs, green waste recycling, composting and household hazardous waste collection/drop off programs. EcoNomics provides effective solutions for the community with an understanding of the fundamental challenge of local governments to balance complex services and programs with the realities of budget constraints. State legislation is changing the structure and importance of contracts for these services.

Solid Waste Generation & Diversion Composition Studies. Using statistical sampling methods developed exclusively for its clients, EcoNomics conducts detailed studies to determine the quantity and composition of the client's waste stream. The results of these studies are then used to develop waste reduction and recycling programs targeted to the specific materials in the waste stream and/or to determine a new baseline year for purposes of AB 939. In addition, we have designed new sampling protocols for SB 1383 that measure contamination and collection route efficiencies.

Secondary Materials Markets. With the increased goal of 75% diversion, and the passage of SB 54, more types of discarded materials will need to be sold into the secondary materials markets. The revision in import restrictions by China, India, and other export markets has changed the flow of materials to alternate export markets. Hauling companies are trying to shift market risk to municipalities. This is not always a valid response and needs to be carefully examined in discussions with hauling companies.

EcoNomics understands the vital link between recycling programs and markets for the collected materials.

EcoNomics constantly monitors both the domestic and overseas markets for recyclable commodities such as glass, paper, cardboard, plastics, metals, and aluminum. This expertise allows us to assist clients in marketing the ever-broadening types of recyclable materials and to forecast the trends that affect materials pricing and cost structures. Markets for food scraps via composting are more complex and require expertise to get the food scraps out of the waste stream and back to fields and farms. EcoNomics is closely monitoring the rapidly evolving organics processing technologies and markets for organics as well as state and federal standards for the compost produced.

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Revised Scope of Work for Solid Waste and Recycling Consulting Services SECTION II. KEY PERSONNEL
WILLIAM O’TOOLE
Title: President & Founder
Education: BS in Biology (Systems Ecology), University California, San Diego, 1976 Specializations: Strategic Oversight, High-level Compliance Planning, Waste Composition Study Design and Review, Contract Negotiations
William O’Toole will provide senior review and strategic direction on the project’s procurement process.

Mr. O’Toole is a “hands-on visionary” working with cities and counties to anticipate legislative trends, shifts in secondary materials markets, and other factors that affect local collection contracts. He devises practical, cost-effective methods for implementing diversion programs that benefit cities’ residents and businesses and enable clients to meet the requirements of both AB 939 and the evolving requirements of AB 341, AB 1826 and SB 1383. William has worked with dozens of cities to negotiate hauler contracts or manage the competitive procurement process, including local Orange County cities such as Laguna Beach, Laguna Hills/Lake Forest joint procurement, Tustin, Laguna Niguel, Laguna Hills, and Lake Forest.

Mr. O’Toole founded EcoNomics, Inc. in 1977 and has 40 years of experience in the recycling and solid waste industry. As one of the early pioneers in the recycling industry, he worked to implement some of the first curbside recycling programs in California and then developed secondary materials markets to accept the materials collected. He then turned his attention to implementing commercial recycling programs, which, in most cities yield far more tons of diversion due to the size and composition of these waste streams. He is now heavily involved in continuing the transition from the traditional view of solid waste and recycling towards the more encompassing vision of a sustainable materials management industry.

During the process of developing recycling programs, it became clear that existing collection contracts were insufficient with respect to programs, reporting, and enforcement tools to handle the additional requirements of diversion mandates. In addition, the segmentation of wastes into subcomponents (i.e., E-waste, HHW, “big box” recyclable streams, etc.) also required a new development of contract language and management tools to meet the demands of a different approach to the handling of what used to be considered as Municipal Solid Waste (MSW). It was at this point that Mr. O’Toole became involved in overseeing the procurement of hauler services. He works with his client cities to develop contracts that are specifically tailored to maximize diversion, identify costs, and develop rate structures that are transparent.

Mr. O’Toole is one of the founders of the California Resource Recovery Association (CRRA) as well as Californians Against Waste (CAW). He has worked on statewide legislation and has been a member of several committees and task forces for the California Integrated Waste Management Board (now known as CalRecycle) on AB 939 Diversion Calculations and Reporting Requirements for Material Recovery Facilities (MRF) and Transfer Stations.

Mr. O’Toole brings significant local knowledge about the Orange County solid waste and recycling system including familiarity with the recycling, materials recovery, construction and demolition waste processing facilities, the landfill system and all the solid waste and recycling companies that are active in the Orange County area.

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TREVOR BLYTHE MBA
Title: Vice President and Co-Owner
Education: BS in Environmental Science, University California, Santa Barbara, 2006 MBA in Sustainable Management from Presidio Graduate School, 2014 Specializations: Project Management, CalRecycle Compliance Management and TroubleShooting, Hauler Contract Negotiation and Procurement Trevor Blythe has over 18 years of experience as a consultant in the sustainable materials management industry. Mr. Blythe works daily with local governments, private industry, and cities’ waste haulers to overcome operational and financial barriers to implementing sustainable materials management programs at the municipal scale. He is an expert on solid waste regulations, operations, and collection system optimization. Mr. Blythe holds a Master of Business Administration in Sustainable Management from Presidio Graduate School in San Francisco. During his coursework at Presidio, Trevor explored market-based solutions for returning key nutrients from organic waste back to the soil. He holds a Bachelor of Science in Environmental Sciences from the University of California, Santa Barbara with an emphasis on Geographic Information Systems.

Mr. Blythe is currently assisting the cities of Anaheim, Newport Beach, Santa Ana, San Juan Capistrano, Mission Viejo, Lake Forest, Laguna Hills, Tustin, and Stanton with contract management, SB 1383 compliance planning, program cost, rate impact analyses and other tasks. Mr. Blythe has assisted the cities of Laguna Hills, Lake Forest/Laguna Hills joint procurement, Lake Forest and Tustin with competitive RFPs for hauling service that incorporated all SB 1383 programmatic requirements as well as other technological innovations. Similarly, he has assisted the cities of Newport Beach, Laguna Niguel, Rancho Mirage, and Laguna Hills with hauler contract negotiations to update agreements to comply with new legislative mandates. He also assists EcoNomics’ client cities with compliance program implementation, including developing fair and reasonable pricing to comply with new, state-mandated diversion programs, monitoring diversion reports to assess hauler compliance with state laws, and leading meetings with cities and haulers to monitor contractual compliance and resolve outstanding contractual obligations.

Mr. Blythe has developed comprehensive organics cost models used in the City of Anaheim, Mission Viejo, Tustin, Santa Ana, Laguna Niguel, Newport Beach, Lake Forest, Rancho Mirage, and Napa. The model is used to project the cost of AB 1826 and SB 1383 compliance and to examine the impact of these costs on different components of a city’s rate base. The model allows for real-time entry of generator participation assumptions, rate incentives, and service scenarios to predict the total cost of the program and the potential rate impact on residential and commercial accounts. The model can be used to illustrate the impacts of different funding scenarios for presentation to elected officials and senior City management.

In many cases, the rate model was developed with the franchise haulers to construct a rate that adequately compensates the hauler while still providing a rate incentive for the generator, thus aligning the profit incentive of the hauler with the cost reduction incentives of the generators with the compliance requirements of the City.

Mr. Blythe teaches two courses as adjunct faculty in the Sustainability and Resource Management program at Irvine Valley College; SRM 95 – The Business Case for Sustainability and SRM 90 – Sustainability for Communities.

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Revised Scope of Work for Solid Waste and Recycling Consulting Services

LINDA FURBEE JD
Title: Director
Education: BA University of California, Riverside; Juris Doctorate California Desert Trial Academy College of Law
Specializations: Hauler Contract Procurement, Transition to New Hauler Agreements, Hauler Contract Management, SB 1383 Program Development, CalRecycle Compliance and Reporting Ms. Furbee joined EcoNomics in October 2021. As her first assignment, she held a 3-day per week residency at the City of Newport Beach Municipal Operations Division for 1-year where she assisted the City with finalizing its residential franchise negotiations and overseeing the implementation of a citywide organics program. Her function was to oversee the hauler’s implementation of a third organics cart to all households and ensure the roll-out, and the accompanying educational campaigns were done in accordance with the contract terms. Ms. Furbee ran weekly meetings with the City and its hauler to troubleshoot operational issues, coordinate resolutions to customer service issues, ensure compliance with SB 1383 contamination minimization monitoring requirements, and ensure the ratepayers were receiving the value that they were paying for. She managed the City’s edible food recovery program inspections, notifications, outreach, reporting and capacity planning. Ms. Furbee also has assisted client cities including the Cities of Laguna Beach, Laguna Hills/Lake Forest joint procurement and Newport Beach with procurement processes, both via a competitive RFP process and via negotiations, to ensure franchise agreements are fully aligned with SB 1383 requirements. To this end, Ms. Furbee has drafted scope of work language, education and outreach requirements, contamination monitoring requirements and other key elements that our client cities may use to attain compliance.

Prior to her tenure at EcoNomics, Ms. Furbee was an account director for a communications firm in the Coachella Valley. In her capacity within the organization, Ms. Furbee assisted clients with implementing communication and marketing strategies. Prior to her career in marketing, Ms. Furbee worked in municipal government in various capacities, including Assistant to the City Manager, Management Services/Marketing Director, and Management Analyst.

LISA ROBLES MS
Title: Director
Education: BS in Communications, California State Polytechnic University, Pomona, 2011 Master’s in Environmental Studies (MS), California State University Fullerton, 2018 Specializations: SB 1383 Program Development, Compliance and Reporting; Implementation of C&D Tracking Systems such as Green Halo; Education and Outreach; GIS Applications Lisa Robles joined the EcoNomics team in April 2018 and has been managing the SB 1383/AB 341/AB 1826 compliance implementation efforts in the City of Santa Ana as well as the CalGreen C&D program revision and development in the City of Lake Forest. Ms. Robles also works with the City of Anaheim on SB 1383 planning, implementing the OC Waste and Recycling grant, and has experience drafting grant reports, developing CRM systems, and managing a competitive procurement process for PR firms.

Ms. Robles has twelve years of experience developing and managing solid waste and recycling programs in both the both private and public sector. Ms. Robles worked as Republic Services recycling coordinator based out of the Anaheim facility for over four years and gained valuable experience in the operational PAGE 282 of 306
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Revised Scope of Work for Solid Waste and Recycling Consulting Services and outreach components of the materials management industry. At Republic, Ms. Robles assisted client cities with designing and implementing waste diversion programs, ranging from food scrap recycling programs to HHW collection events. She was also the main liaison point with client cities to assist with diversion tonnage and compliance reporting. At Republic, Ms. Robles developed key partnerships through involvement in community groups such as MUZEO and Anaheim Beautiful.

More recently, as an intern in the Public Works Department at the City of Laguna Beach, Ms. Robles managed the City’s CalGreen Construction and Demolition recycling program and worked to continuously improve compliance and diversion rates. At Laguna Beach, Ms. Robles assisted the City with its hauler contract management and oversight as well as overseeing CalRecycle compliance reporting.

Ms. Robles obtained her Master of Science in Environmental Studies from CSU Fullerton. Ms. Robles has experience in Geographic Information Systems (GIS) as well as an in depth understanding of how sustainable waste management at a municipal scale can result in desirable environmental outcomes. Ms.

Robles is proficient in the Microsoft Office suite, the Adobe design platform, ARCGIS, and is a native speaker of Spanish.

SARA AUBERY MS
Title: Program Implementation Manager and Software Developer Education: BS in Animal and Conservation Biology, University of California, Davis, 2007 MS in Natural Resource Management and Marine Science, University of the Virgin Islands, 2014 Specializations: Program Design, Implementation and Sustainable Finance, Data Analysis, Database Management, and Outreach and Education.

Ms. Aubery joined EcoNomics in January 2023. She is a skilled recycling implementation project manager who is dedicated to helping cities meet their sustainability goals. Her diverse skill set and passion for creating positive change makes her an ideal partner. Ms. Aubery is currently managing a team of four recycling coordinators in Santa Ana to implement SB 1383 programs in a timeline that conforms with the City’s Corrective Action Plan. To this end, Ms. Aubery uses data-driven methods to achieve process efficiencies and, with the help of her team, implemented over 300 SB 1383 compliant programs in the span of just over 2 months.

Ms. Aubery has managed large data sets with ease and knows how to leverage data to drive impactful decisions. Her keen eye for detail and ability to identify key insights will be invaluable in helping your city optimize its recycling programs. Ms. Aubery has assisted the City of Napa with developing a rate model to identify the optimal incentive for its commercial composting program and to identify keys costs for a new organics route for generators with high-levels of contamination. The model uses a data processing system called ‘R’ and allows for the client to enter various parameters into an online app to assess impacts to the City’s rate revenue and costs in real time.

Prior to this work she spent 5 years in waste diversion for specialty industries. Ms. Aubery is passionate about behavior change and has a proven track record of designing and implementing effective programs that inspire communities to make positive changes towards sustainability. Her expertise in outreach and education, supply chain management, material flow and procurement, graphic design, legislation, and the circular economy will ensure that your city's needs are met with creative and innovative solutions.

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Revised Scope of Work for Solid Waste and Recycling Consulting Services

IAN BEVAN MBA
Title: Senior Program Implementation Coordinator
Time with EcoNomics: 10 years
Education: BA in Political Science, San Diego State University, 2008 MBA in Sustainable Management, Presidio Graduate School, 2012 Specializations: AB 341, AB 1826, and SB 1383 Field Implementation; CalRecycle Compliance Reporting (EAR Implementation Record and Form 303)
Ian Bevan specializes in developing cost-effective waste diversion programs that help businesses meet compliance requirements. He has implemented AB 341, AB 1826, and SB 1383 programs at hundreds of commercial and multi-family properties in San Juan Capistrano, Tustin, Mission Viejo, Laguna Hills, Santa Ana, and Anaheim. Mr. Bevan uses information gathered at site audits to develop customized, cost-saving waste reduction programs that fit the unique needs of each property, from split trash and recycling bins to specialized enclosure signage and outreach. Mr. Bevan has also worked with large retail operations to implement organics waste diversion.

Mr. Bevan has experience working with the City of San Diego Environmental Department managing the construction and demolition ordinance. In this capacity, Mr. Bevan worked with contractors to ensure they met or exceeded the City’s 50% diversion requirement for construction and demolition waste. Mr.

Bevan leveraged his experience as an on-campus sustainability advocate at San Diego State University to found a non-profit company committed to facilitating grassroots, student-led sustainability programs at colleges and universities.

VALERIA FERRUFINO
Title: Senior Sustainability Coordinator
Education: AA in Geography, AA in Social and Behavioral Sciences, AA in Liberal Studies: Teacher Education, Certificate of Achievement in Sustainability and Resource Management, Irvine Valley College, 2020
BA in Geography with Emphasis in Environmental Analysis, Geographic Information Systems Certificate, California State University Fullerton, 2022 Specializations: Edible Food Recovery Inspections, AB 1826 & SB 1383 Monitoring and Compliance, Contamination Audit Reviews, GIS Applications Valeria Ferrufino joined the EcoNomics team in January of 2020 to assist with field implementation. Ms.

Ferrufino conducts recurring audits of participants in the City’s SB 1383 program to assess participation and contamination levels. She has provided education regarding recycling legislation and recommendations for compliance to hundreds of business managers at restaurants, grocery stores, hotels, shopping malls, offices, and multi-family properties in Laguna Hills, Irvine, San Juan Capistrano, Laguna Niguel, and Mission Viejo. She has also provided doorstep education to over 1000 residents in San Juan Capistrano and Laguna Niguel, informing about organic recycling guidelines. Ms. Ferrufino has implemented, provided staff training, and verified the quality of dozens of AB 1826 and SB 1383 programs at commercial properties in Irvine. She has worked in the City of Mission Viejo to analyze commercial listings to identify SB 1383, AB 1826 and AB 827 non-compliant generators and bring them the necessary education for compliance.

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Revised Scope of Work for Solid Waste and Recycling Consulting Services Ms. Ferrufino led sustainability efforts at Irvine Valley College as the Co-President of the on-campus Green Team and with frequent presentations of sustainability projects at the college’s Environmental Leadership Task Force. She also led projects as the Vice President of Communications in the Phi Theta Kappa Honors Society. Ms. Ferrufino has proficient ArcGIS skills that have assisted in presenting field audit findings and optimizing recycling audit routes.

CLARISA GOMEZ
Title: Program Implementation Coordinator
Education: Bachelor of Arts in Environmental Science and Policy and Urban Studies, University of California, Irvine
Specialization: Community Engagement, Outreach, Zero Waste Event Coordination, Field Compliance Assessments
Clarisa Gomez joined the EcoNomics team in February 2024 to assist with field implementation. She has worked with the City of Santa Ana to identify SB 1383 non-compliant generators including small businesses and multi-family complexes that lack adequate service. Ms. Gomez has experience conducting weekly site visits to businesses and multi-family properties to assess compliance with SB 1383, as well as, communicating SB 1383 requirements and outreach materials to customers in English and Spanish when implementing recycling and organic recycling programs.

Ms. Gomez previously worked as a Sustainability Recycling Specialist for CR&R where she compiled tonnage data for monthly and quarterly diversion reports, developed client-focused service proposals to implement food waste and recycling programs for AB 341, AB 1826, and SB 1383, and assisted in creating materials for annual curbside report, audited landfills, and educational waste sorting materials.

BELLA SULLINS
Title: Program Implementation Coordinator
Education: Bachelor of Arts in Environmental Studies, Point Loma Nazarene University, 2023 Specialization: Field Compliance Assessments, Community Engagement, Problem Solving Bella Sullins joined the EcoNomics team in October 2023 to assist with field implementation. She has worked with the City of Santa Ana to identify SB 1383 non-compliant generators including small businesses and multi-family complexes that lack adequate service. Additionally, Ms. Sullins has worked with the City of Irvine to implement organics recycling and food recycling services to residents. Ms. Sullins is diligent and consistent in her communication skills with each customer she comes across, which is illustrated in her high conversion rates.

Ms. Sullins served as a Nature Specialist near Yosemite National Park where she developed a multi-faceted curriculum for kids and young adults. Shortly after, she worked at a non-profit as a Community Engagement Outreach Assistant, where she assisted with the Recycling Call Center to assist the public in proper waste disposal. Her expertise in communicating with constituents has helped capture the true efforts of local government and environmental policy. In all the work she does, she hopes to share the beauty of creation with others so they may be inspired to make change in their communities.

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Revised Scope of Work for Solid Waste and Recycling Consulting Services SECTION III. SUBCONTRACTOR
EcoNomics is proposing to use one subcontractor if engaged by the City of San Marino. Ms. St. John is an active member of the California Bar and, utilizing over 40 years of experience in the solid waste and recycling field, has extensive experience in drafting contracts for RFP’s, contract negotiations, and collection contract amendments for new diversion services and programs. Ms. St. John has served in this capacity with EcoNomics in several procurements and negotiations including the RFP for the City of Laguna Hills/Lake Forest joint procurement; RFP for the City of Laguna Beach; RFP for the City of Tustin; RFP for the City of Lake Forest; RFP for the City of Laguna Hills; negotiation of a new city-wide collection contract for the City of Laguna Niguel; negotiations for a new residential collection contract for the City of Newport Beach; and negotiations for a new solid waste and recycling collection contract based upon SB 1383 requirements for the City of Rancho Mirage. Her CV is included below.

CERENE ST. JOHN JD
Title: Attorney (Subcontractor)
Education: B.A. in Political Science from California State University, San Bernardino (1977) J.D. Degree from The University of Santa Clara School of Law (1980).

Cerene St. John began her solid waste career as a Deputy City Attorney for the City and County of San Francisco. Assigned to the Special Projects Division, she led a team in the Chief Administrator’s Office to find a new landfill for the City when existing contracts were due to expire. She conducted a five-county negotiating effort that resulted in a contract and associated permits for the City’s use of the Altamont Landfill located in Alameda County beginning in 1983.

Ms. St. John then served for six years as the Solid Waste Program Manager for the City of Sunnyvale.

While there, she conducted a Request for Proposals (RFP) process for solid waste and collection services resulting in a new contract with a detailed scope of work and performance standards. She conducted an RFP process for long-term landfill capacity for the City of Sunnyvale and 4 other cities resulting in a 30- year contract with the Kirby Canyon Landfill owned and operated by Waste Management. She also initiated work on the design and construction of the City-owned SMaRT Station, a transfer station/MRF that began operation in 1993.

Ms. St. John joined EcoNomics in 1990 and served as Vice President through June 2008. She now serves as outside legal counsel to many of EcoNomics’ clients through the Law Office of Cerene St. John. She specializes in conducting procurements for solid waste and recycling collection services. She also assists cities and counties with negotiations for these services and with contract amendments, ordinance revisions, and review of proposed legislation.

As a former City Attorney and an active member of the State Bar of California, Ms. St. John prepares draft contract amendments, draft contracts, and RFP language for review by City Attorneys. Ms. St. John writes precise and thorough scopes of work for diversion programs and crafts contracts that protect the interest of the jurisdiction and its ratepayers. She serves as a “bridge” between the technical requirements in these contracts and the legal language needed to enforce them. This generally saves our client's time and expense, as the City Attorney can senior review her work rather than spending time crafting the legal language, and the technical scope of work for the contract.

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Revised Scope of Work for Solid Waste and Recycling Consulting Services Ms. St. John’s unique understanding of the legal underpinnings of the RFP process, the political and financial realities of cities, and her experience in negotiations with the solid waste industry allow her to create procurement processes and negotiations for contract amendments that are fair, public, and that anticipate potential pitfalls so problems can be avoided.

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Revised Scope of Work for Solid Waste and Recycling Consulting Services SECTION IV. REVISED SCOPE OF WORK FOR

For the upcoming LAMD site visit, EcoNomics will facilitate tours of the City of San Marino residential and commercial sectors as needed for CalRecycle’s annual site visit in July or August 2025.

As part of its preparation of the annual report, EcoNomics takes the following actions and gathers the following data points to provide CalRecycle a holistic picture of the City’s diversion programs. EcoNomics will focus its efforts on AB 341, AB 1826, and SB 1383 compliance reporting assistance vis-à-vis the annual report.
• Analysis of SB 1383 compliance rate
• Narrative summary of all outreach efforts conducted to increase compliance • Contact the hauler and review City records to obtain information on outreach used to inform residents and businesses of recycling programs
• Coordination with local food banks to determine the weight of edible materials donated PAGE 288 of 306
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Revised Scope of Work for Solid Waste and Recycling Consulting Services Over the last decade, EcoNomics has established a database and a preparation schedule for assembling the necessary information for submittal of CalRecycle’s required Electronic Annual Report (EAR). As part of the procedure, a diverse set of tonnage data is collected and verified. This comprehensive database leads to a thorough annual report that provides CalRecycle with a clear narrative that strongly demonstrates the City’s compliance with diversion mandates.

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Revised Scope of Work for Solid Waste and Recycling Consulting Services EcoNomics has assisted the Cities of Lake Forest, Laguna Hills, and Tustin with the Prop 218 process in recent years.

TASK 5: UPDATE CONTRACT ATTACHMENTS B AND N, AND OTHER RELATED

A summary of anticipated contract management tasks to be performed during the transition include, but are not limited to:
• Review and monitor Valley Vista’s progress with implementation plan for the transition period
• Troubleshoot operational concerns during the transition PAGE 290 of 306
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Revised Scope of Work for Solid Waste and Recycling Consulting Services • Assist with contract interpretation
• Review and monitor public outreach efforts, with special attention paid notices for new services, any added costs for customers, changes in types of service to ensure that adequate notice and explanation is provided to the affected customers • Review of format of reports to be submitted by the hauler as required by the new contract • Monitor customer service and assist in resolving any issues related to customer service • Monitor routing and assist in resolving any issues related to routing • Review schedule for submittal of hauler reports to City regarding the transition to the new contract
• Review hauler reports submitted to City regarding the transition to the new contract • Develop potential plan for early roll-out of residential carts with Valley Vista • Addressing any proposals by the hauler that materially impact costs or timing of program implementation
Further, we have assisted several cities with implementing a new contract transition in the post-SB 1383 landscape, including Tustin, Lake Forest, Laguna Hills, Laguna Niguel, Mission Viejo, Newport Beach, and Santa Ana. The weekly, bi-weekly and monthly meetings with the City, the hauler, and EcoNomics are important in keeping an open line of communication between all parties and to clearly communicate the City’s expectations. To track time sensitive contractual obligations, EcoNomics will develop a tracking document that has aggregated these items in a spreadsheet allowing for quick reference of pending deliverables. This tracking document is helpful when developing agendas for meetings with the Cities and the hauler to ensure all parties are aware of upcoming deliverables.

TASK 7: PROGRESS MEETINGS WITH CITY AND TRANSITION MEETINGS WITH

In order to ensure the new contract transition goes as smooth as possible, EcoNomics recommends two meetings per month in June, July, August and September with the City, Valley Vista, and EcoNomics.

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Revised Scope of Work for Solid Waste and Recycling Consulting Services SECTION V. COST PROPOSAL

STAFF HOURLY RATES
Name Position Hourly Rate
William O’Toole President $235
Cerene St. John JD Attorney $290
Trevor Blythe Vice President $195
Linda Furbee JD Director $165
Lisa Robles MS Director $165
Sara Aubery Manager $145
Ian Bevan MBA Coordinator $115
Valeria Ferrufino Coordinator $115
Clarisa Gomez Coordinator $115
Bella Sullins Coordinator $115
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Revised Scope of Work for Solid Waste and Recycling Consulting Services PROPOSED BUDGET – REVISED SCOPE OF WORK
*Staff hours may be moved between tasks upon City approval.

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Revised Scope of Work for Solid Waste and Recycling Consulting Services SECTION VI. REFERENCES
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TO: Mayor and City Council
FROM: Philippe Eskandar, City Manager
BY: Hillary Guirola-Leon, Finance Director
DATE: June 27, 2025
SUBJECT: CASH AND INVESTMENT REPORT FOR THE MONTH OF
MAY 2025

STRATEGIC PLAN CRITICAL SUCCESS FACTORS
Fiscally Responsible and Transparent City Government

BACKGROUND
The City of San Marino’s Investment Policy adopted by the City Council on April 10, 2024, Section 16.0, Reporting, stipulates that the Treasurer shall review and render monthly reports to the City Council of all cash and investments held by the City. The report shall include the following information for all cash accounts and bank deposits:
· Balance at the end of the month
· Interest rate (for all interest-bearing active deposits) The report shall include the following information for all investments:
· A listing of individual securities held at the end of the month, by security type;
· Issuer, date of maturity, date of purchase, par and the dollar amount invested;
· Coupon, discount or earnings rate; and
· Current market value as of the date of the report and the source of this same valuation; and
·The weighted average maturity and weighted average yield of all investments combined.

Gretchen Shepherd Romey, Mayor
Tony Chou, Vice Mayor
Hunter Chang, Council Member
John Chou, Council Member
Calvin Lo, Council Member
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The above information may be submitted in the form of copies of statements received by the custodial institution. For investments with LAIF, the most recent statement or statements received from the State Treasurer may be included in the monthly report in lieu of the information noted above. The report shall include a listing of all investment transactions for the month (Government Code Section 53607). The report must also include a statement of compliance of the portfolio to the statement of investment policy, or manner in which the portfolio is not in compliance, as well as a statement denoting the ability of the local agency to meet its expenditure requirements for the next six months, or an explanation as to why sufficient money shall, or may, not be available (Government Code Section 53646). Reports shall be rendered to the City Council and City Manager within 30 days following the end of the month of the period covered by the report.

DISCUSSION

PORTFOLIO SUMMARY
The City maintains petty cash on City facilities, cash in bank, cash in a transactional investment account, deposits with the Local Agency Investment Fund (LAIF), two Section 115 Trusts, investments in negotiable Certificates of Deposit, investments in Municipal Securities, and investments in U.S.

Government Agency Securities. All items are detailed in the attachment to this report.

A summary of portfolio content is found below. The attachment to this report offers specific detail on each category of investment.

City of San Marino
Cash and Investments Portfolio Summary Allocation
Petty Cash on City Premises $ 2,397 0%
Cash in Bank-checking accounts 3,778,381 10%
Cash in Bank-IMMA 10,535,263 27%
CERBT Section 115 Trust 800,000 2%
CEPPT Section 115 Trust 1,500,000 4%
Deposits with LAIF 13,299,915 34%
Certificates of Deposit 5,173,000 13%
Treasury Obligations - 0%
US Government Agency Securities 3,250,000 8%
Municipal Securities 474,635 1%
Cash and Investments $ 38,813,591 100%
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PORTFOLIO PERFORMANCE
As of 5/31/25, the annual percentage yield earned on the bank IMMA is

3.56%. The effective yield for LAIF deposits is 4.272%. The average yield on CDs is 3.21%. The average yield on US Government Agency Securities is

1.642%. The effective yield on Municipal Securities is 2.650%. Total combined portfolio yield for May 2025 is 3.59%.

Local Agency Investment Fund (LAIF)
Average Monthly Effective Yields
2023 2024 2025
Jan 2.425 4.012 4.366
Feb 2.624 4.122 4.333
Mar 2.831 4.232 4.313
Apr 2.870 4.272 4.281
May 2.993 4.332 4.272
Jun 3.167 4.48
Jul 3.305 4.516
Aug 3.434 4.579
Sep 3.534 4.575
Oct 3.67 4.518
Nov 3.843 4.477
Dec 3.929 4.434
Total Cash and Investments
2023 2024 2025
Jan $42,597,554 $39,122,223 $38,498,486
Feb $43,137,917 $38,930,344 $ 37,958,423
Mar $40,882,226 $37,428,779 $ 32,575,434
Apr $44,354,391 $42,745,381 $ 36,992,117
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May $46,423,758 $45,009,003 $38,813,591
Jun $43,117,061 $43,336,679
Jul $37,719,068 $36,943,792
Aug $35,726,641 $35,154,415
Sep $33,058,478 $34,014,793
Oct $31,757,354 $31,862,773
Nov $30,557,552 $30,699,222
Dec $37,017,250 $38,226,238

FISCAL IMPACT & PROCUREMENT REVIEW
There is no fiscal impact and procurement review is not applicable.

LEGAL REVIEW
The City Attorney's office has reviewed and approved as to form.

RECOMMENDATION
Staff recommends the Council receive and file this report. If the City Council concurs with staff’s recommendation, an appropriate motion would be:
“I move to receive and file the Cash and Investment Report for the Month of May 2025.”

ATTACHMENTS

1.Treasurer’s Report as of May 31,2025
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Maturity Par Bank Market
Deposit/Investment Type Bank/Issuer Date Value Balance Value Rate Cash on Premises
Petty Cash & Cash Drawer City Hall 522.77 522.77 522.77 Petty Cash Fire Department 300.00 300.00 300.00
Petty Cash & Cash Drawer Recreation Department 100.00 100.00 100.00 Petty Cash & Cash Drawer Library 324.20 324.20 324.20
Petty Cash & Cash Drawer Lacy Park 1,150.00 1,150.00 1,150.00 Petty Cash Police Department - - -
2,397 2,397 2,397
Cash in Bank-checking accounts
Investment Transaction Interest Account US Bank-153xxxx77181 83 83 83 Investment Transaction Interest Account BMO Bank 205-XXX-X - - - General Operating East West Bank-00-811xx753 3,778,298 3,778,298 3,778,298 Payroll (ZBA) East West Bank-00-811xx761 - - -
Worker's Compensation (ZBA) East West Bank-00-811xx779 - - - Sub total 3,778,381 3,778,381 3,778,381
Cash in Bank-money market account
Money Market East West Bank-00-811xx787 10,535,263 10,535,263 10,535,263 3.56% Total Cash in Bank 14,313,644 14,313,644 14,313,644
Maturity Par Book Market
Deposit/Investment Type Bank/Issuer Date Value Value Value Rate Investments
Pooled Funds California Employers' Retiree Benefit Trust (CERBT) 800,000 800,000 982,043 Pooled Funds California Employers' Pension Prefunding Trust (CEPPT) 1,500,000 1,500,000 1,669,235 Pooled Funds State of California Local Agency Investment Fund (LAIF) 13,299,915 13,299,915 13,311,210 4.272% BMO Bank Safekeeping Celtic Bank CUSIP #15118RZA8 (FDIC #57056) 07/15/25 249,000 249,000 248,612 3.20% BMO Bank Safekeeping Barclays Bank Delaware CUSIP #0674KRW9 (FDIC #57203) 07/28/25 243,000 243,000 243,275 5.10% BMO Bank Safekeeping Amerant Bank NA CUSIP #02357QBZ9 (FDIC #22953) 08/11/25 243,000 243,000 243,309 5.10% BMO Bank Safekeeping Northern Bank & Trust MA CUSIP #66476QEC8 (FDIC #18266) 08/18/25 243,000 243,000 243,316 5.05% BMO Bank Safekeeping Wells Fargo Bank NA CUSIP #949764EZ3 (FDIC #3511) 08/22/25 248,000 248,000 248,384 5.10% BMO Bank Safekeeping Capital One Nat'l Assn CUSIP #14042RQC8 (FDIC #4297) 11/17/25 248,000 248,000 244,074 0.90% BMO Bank Safekeeping BankUnited NA CUSIP #066519RX9 (FDIC #58979) 12/08/25 249,000 249,000 245,088 1.25% BMO Bank Safekeeping Goldman Sachs Bank USA CUSIP #38149MWH2 (FDIC #33124) 05/19/26 249,000 249,000 241,002 0.90% BMO Bank Safekeeping Bank of America NA CUSIP #06051XEG3 06/08/26 245,000 245,000 246,899 5.05% BMO Bank Safekeeping UBS Bank USA CUSIP #90348JM72 (FDIC #57565) 06/16/26 250,000 250,000 241,270 0.85% BMO Bank Safekeeping Toyota Financial SGS BK CUSIP #89235MLC3 (FDIC #57542) 07/15/26 248,000 248,000 239,067 0.95% BMO Bank Safekeeping Bank Hapoalim B. M. CUSIP #06251A2Y5 (FDIC #33686) 07/23/26 248,000 248,000 238,903 0.95% BMO Bank Safekeeping Synchrony Bank CUSIP #87164WA24 08/13/26 248,000 248,000 238,335 0.90% BMO Bank Safekeeping State Bank of India CUSIP #856285XL0 (FDIC #33682) 09/28/26 248,000 248,000 238,172 1.15% BMO Bank Safekeeping Citibank NA CUSIP #17312Q4A4 (FDIC #7213) 09/29/26 243,000 243,000 245,603 5.10% BMO Bank Safekeeping Morgan Stanley Bank NA CUSIP #61773TDG5 (FDIC #32992) 04/20/27 246,000 246,000 239,774 2.75% BMO Bank Safekeeping Popular BK New York BRH IN CUSIP#73317ADB5 06/07/27 245,000 245,000 248,210 4.80% BMO Bank Safekeeping Morgan Stanley Private BK NATL CUSIP#61768E4S9 06/07/27 245,000 245,000 248,663 4.90% BMO Bank Safekeeping Medallion BK Utah CUSIP#58404DVG3 06/21/27 245,000 245,000 248,011 4.75% BMO Bank Safekeeping BNY Mellon NA INSTL CTF DEP CUSIP#05584CPT7 06/20/28 245,000 245,000 247,538 4.50% BMO Bank Safekeeping Sallie Mae Bank Murray Utah CD CUSIP#795451DK6 07/17/29 245,000 245,000 247,533 4.50% 5,173,000 5,173,000 5,125,037 3.21%
City of San Marino
As of May 30, 2025
Treasurer's Report
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Maturity Par Bank Market
City of San Marino
As of May 30, 2025
Treasurer's Report
Treasury Obligations
None None - - 0.00% -
US Government Agency Securities
BMO Bank Safekeeping Federal Home Loan Bank CUSIP #3130AN4N7 07/14/25 1,000,000 1,000,000 995,580 0.720% BMO Bank Safekeeping Federal Farm Credit Bank CUSIP #3133ENCD0 10/27/25 1,000,000 1,000,000 986,230 1.040% BMO Bank Safekeeping Federal Farm Credit Bank CUSIP #3133EMH21 06/15/26 250,000 250,000 241,548 0.900% BMO Bank Safekeeping Federal Farm Credit Bank CUSIP #3133ENHC7 12/14/26 500,000 500,000 482,105 1.600% BMO Bank Safekeeping Federal Home Loan Bank CUSIP #3130B1L70 05/26/28 500,000 500,000 502,985 5.100% 3,250,000 3,250,000 3,208,448 1.642%
Municipal Securities
BMO Bank Safekeeping California ST GO Taxable CUSIP #13063DMA3 04/01/26 500,000 474,635 493,800 2.650% 500,000 474,635 493,800 2.650%
8,923,000 8,897,635 8,827,284
Total Cash & Investments 38,838,956 38,813,591 39,105,813 3.59% Hillary Guirola-Leon June 16, 2025
Hillary Guirola-Leon, Interim City Treasurer
I hereby certify that this report is in compliance with the City’s Investment Policy as adopted by the City Council on April 10, 2024, and the source of market valuation is obtained from various bank statements, the monthly CERBT, CEPPT & LAIF statements and the investment safekeeping account statement with US Bank. The City has the ability to meet its expenditure requirements for the next six months.

PAGE 300 of 306
LAIF
Date Type of Transaction Amount Notes
5/15/2025 LAIF Deposit from Money Market 514,000
5/20/2025 LAIF Deposit from Money Market 515,000
5/20/2025 LAIF Transfer to Money Market (500,000)
East West Bank Money Market Account
Date Type of Transaction Amount Notes
5/7/2025 Transfer to East West Bank Operating Account (350,000) To Cover Operating Expenses for Month of May 2025 5/14/2025 Transfer to East West Bank Operating Account (275,000) To Cover Operating Expenses for Month of May 2025 5/20/2025 Transfer from LAIF 500,000
5/21/2025 Transfer from East West Bank Operating Account 3,000,000 Transfer Funds to Higher Interest Generating Account 5/28/2025 Transfer to East West Bank Operating Account (150,000) To Cover Operating Expenses for Month of May 2025 US Bank
Date Type of Transaction Amount Notes
5/7/2025 HSBC Bank USA NA CUSIP #44329ME33 (FDIC #57890) (Matured) 248,000 5/13/2025 Commercial Bank Harrogate TN CUSIP #20143PES5 (FDIC #22354) (Matured) 248,000 5/13/2025 Transfer securities to BMO Safekeeping (8,897,635) 5/15/2025 Univ CA REGTS MED CTR Pool Rev CUSIP #913366EN6 (Matured) 500,000 5/15/2025 Transfer to LAIF Transfer Funds to Higher Interest Generating Account (514,000) 5/20/2025 Transfer to LAIF Transfer Funds to Higher Interest Generating Account (515,000) BMO Bank Safekeeping
Date Type of Transaction Amount Notes
5/13/2025 Transfer securities from US Bank Safekeeping 8,897,635 PAGE 301 of 306
Institution:

Weekly as of Date:

Signature Date
Name and Title
Weekly Call Report Certification
Local Agency Security Program
Two authorized officers are required to executed the Weekly Call Report pursuant to CCR§16005.1.1(a).

The authorized signers of East West Bank each declares, for himself or herself alone and not for the other: I hereby verify that I have personal knowledge of the matters set forth in the Weekly Call Report (as of 05/28/2025) submitted pursuant to GC§ 53663(b) and CCR§16005.4.2 to the best of my knowledge and belief, the information contained therein is true and correct.

Name and Title
Yi Liu, VP- Financial Quantitative Analyst
East West Bank
5/28/2025
Signature Date
Lily Li, VP- Assistant Treasury Operation Manager
5/29/2025 5/29/2025
PAGE 302 of 306
Weekly Call Report
Local Agency Security Program
California Department of Financial Protection and Innovation Institution Name: East West Bank CID #: 194
Total
Mailing Address:

Weekly Report As of Date:
135 N Los Robles Ave, 8th Floor , Pasadena, CA 91101
5/28/2025 Submission Date: 5/29/2025
Pool #1 (x110%) Pool #2 (x150%) Pool #3 (x105%)
$ -
$ -
$ -
$ -
Less: CDAR Deposits: $ -
$ -
$ -
$ -
$ -
$ -
Total Deposits & Accrued Interest:

Less: Deposits Subject to Waivers:

Less: Interest:

Less: Uncollected Funds:
$ -
$ 866,873,290.36
$ -
$ -
$ 390,332,954.84
$ 1,688,025,607.30
$ 472,099,042.59
$ -
$ -
$ 390,332,954.84
$ 1,688,025,607.30
$ 472,099,042.59
Federal Home Loan Bank of San
Francisco
Minimum Collateral Required:
$ -
$ -
$ -
$ 825,593,609.87
$ 866,873,290.36
$ - $ 825,593,609.87
$ -
$ -
$ -
Less: Other (Specify on Line 17):

Total Secured Deposits:
$ 43,126,709.64
Agent of Depository:

VP- Assistant Treasury Operation Manager
VP- Financial Quantitative Analyst
Authorizer #1 Name:

Authorizer #2 Name:

Authorizer #1 Title:

Authorizer #2 Title:

Lily Li
Yi Liu
6267686949
[email protected]
Description of Other Deposits:
$ 910,000,000.00
Excess/Deficiency in Pledged Collateral: $ 43,126,709.64 Preparer Name:

Preparer Title:

Preparer Phone #:

Preparer Email Address:

Shan Xu
Treasury Analyst
Market Value of Pledged Securities as of
Weekly Report Date: $ -
$ -
$ -
$ -
$ 910,000,000.00
PAGE 303 of 306

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San Marino City CouncilJune 27, 2025

San Marino City Council
June 27, 2025