Agenda packet — Seal Beach City Council, March 14, 2022 (part 1 of 2)

A G E N D A

MEETING OF THE CITY COUNCIL
Monday, March 14, 2022 ~ 7:00 PM

ALL COUNCIL MEMBERS AND STAFF WILL PARTICIPATE VIA

TELECONFERENCE

JOE KALMICK
MAYOR
First District

MIKE VARIPAPA

MAYOR PRO TEM
Third District

THOMAS MOORE

COUNCIL MEMBER
Second District

SCHELLY SUSTARSIC

COUNCIL MEMBER
Fourth District

SANDRA MASSA-LAVITT

COUNCIL MEMBER
Fifth District
This Agenda contains a brief general description of each item to be considered. No action or discussion shall be taken on any item not appearing on the agenda, except as otherwise provided by law.

Supporting documents, including agenda staff reports, and any public writings distributed by the City to at least a majority of the Council Members regarding any item on this agenda are available on the City’s website at www.sealbeachca.gov.

City Council meetings are broadcast live on Seal Beach TV3 and on the City's website www.sealbeachca.gov). Check the SBTV3 schedule for rebroadcast of — meetings are available ondemand on the website (starting 2012).meeting In compliance with the Americans with Disabilities Act of 1990, if you require disability - related modification or accommodation to attend or participate in this meeting, including auxiliary aids or services, please call the City Clerk' s office at (562) 431 -2527 at least 48 hours prior to the meeting.

NOTICE REGARDING PUBLIC OBSERVATION AND PARTICIPATION IN THE CITY

COUNCIL MEETING
Pursuant to Government Code section 54953(e), a proclaimed state of emergency and recommended State and County measures to promote social distancing remain in effect. Due to the continuing need for social distancing and guidance regarding public gatherings during the COVID-19 public health emergency, all participation in the abovereferenced Meeting will be by teleconference for the Members of the City Council, staff, and applicants. Because of the unique nature of the emergency there will NOT be a physical meeting location and all public participation will be electronic. The City will continue to review these measures and determine whether meeting in person would continue to present imminent risks to the health or safety of attendees.

PUBLIC COMMENT AND PUBLIC HEARING: Members of the public may submit comments on any item on this City Council meeting agenda via email to the City Clerk at [email protected] or via the comment icon through the online portal at https://www.sealbeachca.gov/Government/Agendas-Notices-MeetingVideos/CouncilCommission-Meetings. All email comments the City Clerk receives before the start of the meeting will be posted on the City website and distributed to the Council Members. Email comments received after that time will be posted on the City’s website and forwarded to the City Council after the meeting.

Those members of the public wishing to call in for comment during the meeting can join the Zoom Meeting from any electronic device by clicking the following link: https://zoom.us/j/87236861180 . You may also call in by dialing 1-669-900-9128##.

Those members requesting to speak by phone or on Zoom can unmute by entering *6 when called upon to speak. Once in the meeting, you will be added to the Waiting Room until the Public Comment period begins. At that time, you will be allowed to join the meeting to offer your comments. Commenters will be allotted five (5) minutes to address the City Council. The ability to comment will be disabled when your allotted time has expired.

THIS NOTICE AND ELECTRONIC PARTICIPATION PROVISIONS SET FORTH IN THIS NOTICE ARE PROVIDED PURSUANT TO THE CITY COUNCIL’S

DETERMINATION THAT REMOTE MEETINGS ARE STILL WARRANTED, AS REQUIRED BY GOVERNMENT CODE SECTION 54953(e).

CALL TO ORDER

COUNCIL ROLL CALL

APPROVAL OF AGENDA & WAIVER OF FULL READING OF RESOLUTIONS

ORDINANCES
By motion of the City Council this is the time to notify the public of any changes to the agenda and /or rearrange the order of the agenda.

PRESENTATIONS / RECOGNITIONS
• Mid-Year Budget Review

PUBLIC COMMUNICATIONS
At this time members of the public may address the Council regarding the items on this City Council agenda. Pursuant to the Brown Act, the Council cannot discuss or take action on any items not on the agenda unless authorized by law.

Those members of the public wishing to provide comment are asked to send comments via email to the City Clerk at [email protected] or via the comment icon on the City website at https://www.sealbeachca.gov/Government/Agendas-NoticesMeeting-Videos/Council-Commission-Meetings before 5:00 pm on March 14, 2022.

Comments provided via email by 5:00 pm will be distributed to the City Council and posted on the City website for review by the public. Email comments received after that time will be posted on the City’s website and forwarded to the City Council after the meeting. Any documents for review should be sent to the City Clerk prior to the meeting for distribution.

Those members of the public wishing to call in can join the Zoom Meeting from any electronic device by clicking the following link: https://zoom.us/j/87236861180. You may also call in by dialing 1-669-900-9128##. Those members requesting to speak by phone or on Zoom can unmute by entering *6 when called upon to speak. Once in the meeting, you will be added to the Waiting Room until the Public Comment period begins. At that time, you will be allowed to join the meeting to offer your comments.

Commenters will be allotted five (5) minutes to address the Council. The ability to comment will be disabled when your allotted time has expired.

CITY ATTORNEY REPORT Craig A. Steele, City Attorney
CITY MANAGER REPORT Jill R. Ingram, City Manager

COUNCIL COMMENTS
General Council Member comments and reporting pursuant to AB 1234.

COUNCIL ITEMS
A. City Council Appointment to the Historic Preservation Committee – District Five - It is the request of Council Member Massa-Lavitt that the City Council appoint Margo Wheeler to the Historic Preservation Committee, as a representative for District Five.

CONSENT CALENDAR
Items on the consent calendar are considered to be routine and are enacted by a single motion with the exception of items removed by Council Members.

B. Approval of the February 7, 2022 Special City Council Minutes and the February 28, 2022 City Council Minutes - That the City Council approve the minutes of the Special City Council meeting on February 7, 2022 and the Regular City Council meeting held on February 28, 2022.

C. Demands on City Treasury (Fiscal Year 2022) March 14, 2022 - Ratification.

D. 2021 Annual Housing Element Progress Report - That the City Council receive and file the 2021 Annual Housing Element Progress Report (APR), and authorize Staff to file the report with the State of California Office of Planning and Research (OPR) and the California Department of Housing and Community Development (HCD), as required by State Law to show progress on the Seal Beach General Plan Housing Element.

E. Amendment No. 1 to the Professional Services Agreement with Sagecrest Planning + Environmental, Inc. - That the City Council adopt Resolution 7257: 1. Approving Amendment No. 1 to the Professional Services Agreement with Sagecrest Planning + Environmental extending the term of the Agreement to and including June 30, 2022, authorizing additional temporary staffing services during the extended term, and adding an additional $120,000 to the contracted amount for the extended term, for a revised total not-to-exceed contract amount of $195,000; and, 2. Authorizing and directing the City Manager to execute the Amendment.

F. Amendment No. 1 to the Professional Services Agreement with Transtech Engineers, Inc. - t the City Council adopt Resolution 7258: 1. Approving Amendment No. 1 to the Professional Services Agreement with Transtech Engineers, Inc. authorizing Transtech Engineers, Inc. to provide additional Building Department personnel Services during the term, to increase Transtech Engineers, Inc.’s compensation for the term by $184,000, for a revised total notto-exceed contract amount of $359,000, and for Plan Check Services authorizing not more than 65% of plan review fees collected per the City’s fee schedule; and, 2. Authorizing and directing the City Manager to execute the Amendment.

G. Approving the Mid-Year Budget Amendment 22-09-01 - That the City Council adopt Resolution 7259 approving Budget Amendment BA 22-09-01 to increase the various budgeted amounts as detailed in the resolution.

H. City of Seal Beach Annual Audit Reports for Fiscal Year Ended June 30, 2021 - That the City Council receive and file the following documents for fiscal year ending June 30, 2021: A. Audit Communication Letter B. Report on Internal Control C. Annual Comprehensive Financial Report (ACFR) D. Appropriations Limit Final Report

ITEMS REMOVED FROM THE CONSENT CALENDAR

PUBLIC HEARING
I. Introduction of Ordinance Re-Adopting the City Council District Map Based on 2020 U.S. Census Data - That the City Council: 1. Open and conduct a public hearing to receive public input regarding the designated map of City Council election district boundaries for re-adoption based on 2020 U.S. Census data and other factors; and, 2. Introduce, waive full reading, and read by title only Ordinance 1693, an Ordinance of the City Council of the City of Seal Beach ReAdopting the Current City Council District Map as the New Official City Council District Map of the Boundaries of City Council Election Districts Based on the Results of the 2020 U.S. Census.

UNFINISHED / CONTINUED BUSINESS – None
NEW BUSINESS – None

ADJOURNMENT
Adjourn the City Council to Monday, March 28, 2022 at 5:30 p.m. to meet in closed session, if deemed necessary.

FISCAL YEAR 2021-22 MIDYEAR UPDATE

CITY OF SEAL BEACH
City Council Meeting
March 14, 2022
1 Fiscal Year 2020-2021
General Fund Financial Results
Net Change in Fund Balance
2 FY 20-21 Positive/
Amended FY 20-21 (Negative)
Budget Actuals Variance
Total revenues $ 36,671,388 $ 40,962,783 $ 4,291,395
Total expenditures (37,323,062) (35,919,726) 1,403,336
Other financing
sources (uses) (4,882,850) (2,225,516) 2,657,334
Change in fund balance $ (5,534,524) $ 2,817,541 $ 8,352,065 Budget variances:

Delay in capital improvement projects $ 2,538,334
Taxes 1,789,956
Insurance recoveries for Pier fire 3,020,252
Cost reductions for Covid-19 1,433,346
Sale of land related to 405 119,000
Unrealized loss on investments (670,580)
8,230,308
3 FISCAL YEAR 2021-22

GENERAL FUND PACING
AS OF DECEMBER 31, 2021
4 FY 2021-22 2nd Quarter
General Fund Pacing

REVENUES
FY 21-22 FY 21-22
Amended YTD as of % % of
Budget 12/31/2021 Earned Budget
Taxes
Property Tax 13,336,500.00 5,056,826.60 38% 0.44
Sales and Use Tax 4,271,500.00 1,566,086.76 37% 0.14
Transaction Tax 6,034,900.00 2,198,810.18 36% 0.20
Utility Users Tax 4,151,000.00 1,857,229.57 45% 0.14
Transient Occupancy Tax 998,000.00 459,579.77 46% 0.03
Franchise Fees 1,086,000.00 192,681.37 18% 0.04
Business License Tax 520,000.00 402,630.09 77% 0.02
Other Taxes 161,000.00 56,540.52 35% 0.01
Total Taxes 30,558,900.00 11,790,384.86 39% 0.82
Licenses and Permits 889,300.00 445,293.93 50% 0.02
Intergovernmental 155,000.00 56,219.79 36% 0.00
Charges for Services 2,700,800.00 1,417,672.47 52% 0.07 Fines and Forfeitures 1,603,600.00 716,693.14 45% 0.04
Use of Money and Property 653,000.00 328,943.21 50% 0.02 Other Revenues 797,300.00 493,613.89 62% 0.02
Transfers In 106,600.00 53,300.00 50% 0.00
37,464,500.00 15,302,121.29 41%
5 FY 2021-22 2nd Quarter
General Fund Pacing

EXPENDITURES
FY 21-22 FY 21-22
Amended YTD as of %
Budget 12/31/2021 Earned
City Council 209,010.00 51,821.71 25%
City Manager 4,098,312.03 3,084,656.29 75%
City Clerk 316,500.00 164,833.56 52%
City Attorney 436,000.00 197,810.67 45%
Finance 958,362.50 467,912.31 49%
Non-Departmental 2,966,389.10 1,648,861.95 56%
Police 13,804,226.95 7,882,456.52 57%
Fire 6,683,500.00 3,516,753.94 53%
Community Development 1,351,400.00 613,232.10 45%
Public Works 6,334,209.54 2,567,739.22 41%
Community Services 1,118,280.00 429,204.98 38%
Marine Safety 237,200.00 99,907.35 42%
38,513,390.12 20,725,190.60 54%
• Based on our mid-year receipts and expenses we do
anticipate the General Fund to come in as budgeted.
• We continue monitoring revenues and expenditures as
we begin to develop the Fiscal Year 2022-2023
Budget.
• We will continue to work with our consultants to help us better predict revenues going forward.
• We do have some budget adjustments as part of
tonight’s staff report. However, none are General
Fund related.
6 FY 2021-22 2nd Quarter
General Fund Pacing
7 QUESTIONS
Agenda Item A

AGENDA STAFF REPORT
DATE: March 14, 2022
TO: Honorable Mayor and City Council
THRU: Jill R. Ingram, City Manager
FROM: Gloria D. Harper, City Clerk
SUBJECT: City Council Appointment to the Historic Preservation Committee – District Five
SUMMARY OF REQUEST:

It is the request of Council Member Massa-Lavitt that the City Council appoint Margo Wheeler to the Historic Preservation Committee, as a representative for District Five.

BACKGROUND:

In accordance with Government Code Section 54974(a), whenever an unscheduled vacancy occurs on any board, commission, or committee for which the legislative body has the appointing power, an unscheduled vacancy notice shall be posted and appointment to the board, commission, or committee shall not be made by the legislative body for at least 10 working days after the posting of the notice. The notice of resignation for John Delvin was received by the City Clerk’s Office on February 1, 2018, and the required Notice of Vacancy was posted February 1, 2018. Additionally, notwithstanding subdivision (a), the legislative body may, if it finds that an emergency exists, fill the unscheduled vacancy immediately, as is the case with the Historic Preservation Committee vacancy.

There is no term expiration for this appointment.

ENVIRONMENTAL IMPACT:

There is no environmental impact related to this item.

LEGAL ANALYSIS:

The City Attorney has reviewed and approved as to form.

FINANCIAL IMPACT:

There is no financial impact for this item.

STRATEGIC PLAN:

This item is not applicable to the Strategic Plan.

MEASURE BB:

This item is not applicable to Measure BB, the Seal Beach Neighborhood and Essential Services Protection Measure.

RECOMMENDATION:

It is the request of Council Member Massa-Lavitt that the City Council appoint Margo Wheeler to the Historic Preservation Committee, as a representative for District Five.

SUBMITTED BY: NOTED AND APPROVED:

Gloria D. Harper Jill R. Ingram
Gloria D. Harper, City Clerk Jill R. Ingram, City Manager ATTACHMENTS:

A. Margo Wheeler Application

Agenda Item B

AGENDA STAFF REPORT
DATE: March 14, 2022
TO: Honorable Mayor and City Council
THRU: Jill R. Ingram, City Manager
FROM: Dana Engstrom, Deputy City Clerk
SUBJECT: Approval of the February 7, 2022 Special City Council Minutes and the February 28, 2022 City Council Minutes
________________________________________________________________ SUMMARY OF REQUEST:

That the City Council approve the minutes of the Special City Council meeting on February 7, 2022 and the Regular City Council meeting held on February 28, 2022.

BACKGROUND AND ANALYSIS:

This section does not apply.

ENVIRONMENTAL IMPACT:

There is no environmental impact related to this item.

LEGAL ANALYSIS:

No legal analysis is required for this item.

FINANCIAL IMPACT:

There is no financial impact for this item.

STRATEGIC PLAN:

This item is not applicable to the Strategic Plan.

MEASURE BB:

This item is not applicable to Measure BB, the Seal Beach Neighborhood and Essential Services Protection Measure.

Page 2 ends

RECOMMENDATION:

That the City Council approve the minutes of the Special City Council meeting on February 7, 2022 and the Regular City Council meeting held on February 28, 2022.

SUBMITTED BY: NOTED AND APPROVED:

Gloria D. Harper Jill R. Ingram
Gloria D. Harper, City Clerk Jill R. Ingram, City Manager Prepared by: Dana Engstrom, Deputy City Clerk
ATTACHMENTS:

A. Minutes – Special Session - Housing Element
B. Minutes – Regular Session
Seal Beach, California
February 7, 2022
The City Council met for a Special Meeting of the City Council to discuss the Housing Element at 7:00 p.m. via teleconference.

ROLL CALL

Present: Mayor Kalmick
Council Members: Varipapa, Moore, Sustarsic, Massa-Lavitt

Absent: None
City Staff: Craig A. Steele, City Attorney
Jill R. Ingram, City Manager
Patrick Gallegos, Assistant City Manager
Philip Gonshak, Police Chief
Joe Bailey, Chief, Marine Safety Department
Alexa Smittle, Director of Community Development
Sherry Johnson, Interim Director of Finance/City Treasurer Gloria D. Harper, City Clerk
Dana Engstrom, Deputy City Clerk
Art Bashmakian, Interim Senior Planner

PUBLIC COMMUNICATIONS
Mayor Kalmick opened oral communications. City Clerk Harper announced that five (5) emailed comments were received. There were no callers wishing to address the Council.

Mayor Kalmick then closed oral communications.

PUBLIC HEARING
A. Consideration of an amendment to the Housing Element of the Seal Beach General Plan for the 2021-2029 planning period, and a determination that the project is exempt from the California Environmental Quality Act (CEQA) - That the City Council: 1. Hold a duly noticed public hearing and consider the Planning Commission’s recommendation to adopt the Housing Element Update; and, 2. Adopt Resolution 7250 determining that the project is exempt from the California Environmental Quality Act (CEQA) and approving the Housing Element Update.

City Manager Ingram thanked and commended Alexa for her countless hours of hard work and dedication on the City’s behalf to get to this point in a very challenging process that is mandated by state law. She noted that Alexa has been immersed in this high priority effort since she was appointed as the City’s new Community Development Director last November. In addition to her expertise and experience that is invaluable in her leadership of this intense responsibility, Alexa has worked alongside City staff, consultants, and her colleagues in order to put the City in the best position to submit a housing element document that will hopefully be certified by HCD. City Manager Ingram did not want this significant effort and Alexa’s invaluable dedication to this daunting task to go unnoticed.

City Manager Ingram called upon Community Development Director Alexa Smith to provide a comprehensive report.

Community Development Director Smittle provided a comprehensive report on the Housing Element, which is required to be updated every eight (8) years. She discussed certification, repercussions, 6th Cycle goals, Housing Element components, housing needs assessment, Regional Housing Needs Assessment (RHNA), RHNA Allocation, RHNA by income category, affordability, RHNA Implementation, resources and opportunities, constraints, action plan, changes to the Housing Element with HDC comments, changes to the Housing Element – Planning Commission and after, candidate sites, and the staff recommendation. Council Member questions were addressed.

Council Member Sustarsic expressed her concerns regarding the Old Ranch County Club site identified.

Mayor Kalmick opened the public hearing. Speakers: None. Mayor Kalmick closed the public hearing.

Council Member Massa-Lavitt moved, second by Mayor Pro Tem Varipapa, to a consider the Planning Commission’s recommendation to adopt the Housing Element Update; and adopt Resolution 7250 determining that the project is exempt from the California Environmental Quality Act (CEQA) and approving the Housing Element Update.

City Clerk Harper took a roll call vote to approve Item A.

AYES: Kalmick, Varipapa, Moore, Massa-Lavitt
NOES: Sustarsic
ABSENT: None
ABSTAIN: None
Motion carried

ADJOURNMENT
Mayor Kalmick adjourned the City Council meeting at 8:07 p.m., to Monday, February 14, 2022, at 5:30 p.m. to meet in Closed Session if deemed necessary. ______________________
Gloria D. Harper, City Clerk
City of Seal Beach
Approved: ___________________________
Joe Kalmick, Mayor
Attested: ______________________
Gloria D. Harper, City Clerk
Seal Beach, California
February 28, 2022
The City Council met in Regular Session at 7:03 p.m. via teleconference.

ROLL CALL

Present: Mayor Kalmick
Council Members: Varipapa, Moore, Sustarsic, Massa-Lavitt

APPROVAL OF AGENDA & WAIVER OF FULL READING OF RESOLUTIONS AND

ORDINANCES
City Clerk Harper announced that no supplemental communications were received after posting of the agenda.

Mayor Pro Tem Varipapa moved, second by Council Member Moore, to approve the agenda.

City Clerk Harper took a roll call vote to approve the agenda.

AYES: Kalmick, Moore, Sustarsic, Massa-Lavitt, Varipapa NOES: None
ABSENT: None
ABSTAIN: None
Motion carried

PRESENTATIONS / RECOGNITIONS
 Recognition of Heroic Citizens Jeong Kim and Willie Boudevin  Recognition of David Nett – Former Community Services Coordinator  Black History Month

PUBLIC COMMUNICATIONS
Mayor Kalmick opened oral communications. City Clerk Harper announced that one (1) emailed comment was received. There was one caller, John Kochevar who addressed the Council. Mayor Kalmick then closed oral communications.

CITY ATTORNEY REPORT
City Attorney Steele had no items to report.

CITY MANAGER REPORT
City Manager Ingram had no items to report.

COUNCIL COMMENTS
Council Member Moore had no items to report.

Mayor Pro Tem Varipapa had no items to report.

Council Member Massa-Lavitt had no items to report.

Council Member Sustarsic indicated that she attended to Redistricting Subcommittee meetings and the Los Alamitos Unified School District Working Group meeting.

Additionally, she reported that she attended an Orange County Library Advisory Board meeting and provided information on two new programs being offered.

Mayor Kalmick indicated that he attended an Orange County Fire Authority meeting and a round table discussion regarding hate in Orange County. He indicated that the Seal Beach Historical Resources Foundation had their first two meetings and elected officers.

COUNCIL ITEMS
A. City Council Appointment to the City Tree Advisory Board – District Four - It is the request of Council Member Sustarsic that the City Council appoint Mario Voce to the City Tree Advisory Board, as a representative for District Four.

City Clerk Harper provided a comprehensive background of the staff report.

Mario Voce thanked Council for their consideration.

Council Member Sustarsic indicated she is pleased to appoint Mario Voce as he has a long history with the Board as a founding member in 1996 and has a wealth of knowledge.

Mayor Kalmick moved, second by Council Member Moore, to appoint Mario Voce to the City Tree Advisory Board, as a representative for District Four.

City Clerk Harper took a roll call vote to approve Item A.

AYES: Kalmick, Varipapa, Sustarsic, Moore, Massa-Lavitt NOES: None
ABSENT: None
ABSTAIN: None
Motion carried

CONSENT CALENDAR
Council Member Massa-Lavitt moved, second by Mayor Pro Tem Varipapa, to approve the recommended actions on the consent calendar.

B. Approval of the February 14, 2022 City Council Minutes - That the City Council approve the minutes of the Regular City Council meeting held on February 14, 2022.

C. Demands on City Treasury (Fiscal Year 2022) February 28, 2022 - Ratification.

D. Monthly Investment Report – January 31, 2022 - Receive and file.

E. Amendment No. 1 to the Professional Services Agreement with JDH Planning, LLC. - That the City Council adopt Resolution 7256 approving Amendment No. 1 to the Professional Services Agreement with JDH Planning, and, authorizing and directing the City Manager to execute the Amendment.

City Clerk Harper took a roll call vote to approve the consent calendar items.

AYES: Kalmick, Varipapa, Sustarsic, Moore, Massa-Lavitt NOES: None
ABSENT: None
ABSTAIN: None
Motion carried

ITEMS REMOVED FROM CONSENT CALENDAR
There were no items removed from the Consent Calendar

PUBLIC HEARING
F. Fourth Public Hearing for Review of City Council District Boundaries - That the City Council: 1. Receive the City’s population analysis of the 2020 U.S. Census data prepared by the National Demographics Corporation (“NDC”) and the recommendation from the Redistricting Subcommittee that the City Council re-adopt the current District Map as the new City Council District Map; and, 2. Open and conduct the fourth redistricting public hearing (of four) to receive public input regarding the boundaries of potential City Council election districts based on 2020 U.S. Census data, as required by applicable law; and, 3. Review draft map(s); and, 4. Designate the proposed draft map for re-adoption as the new City Council District Map for City Council election districts based on 2020 U.S. Census data and other factors.

City Clerk Harper provided a comprehensive background of the staff report.

Mayor Kalmick opened the public hearing. Speakers: None. Mayor Kalmick closed the public hearing.

Council Member Sustarsic moved, second by Council Member Massa-Lavitt, to accept the present Council District boundaries for the next 10 (ten) years.

City Clerk Harper took a roll call vote to approve Item F.

AYES: Kalmick, Varipapa, Sustarsic, Moore, Massa-Lavitt NOES: None
ABSENT: None
ABSTAIN: None
Motion carried

UNFINISHED/CONTINUED BUSINESS
There were no unfinished/continued business items.

NEW BUSINESS
There were no new business items.

ADJOURNMENT
Mayor Kalmick adjourned the City Council meeting at 7:47 p.m., in memory of Huntington Beach Police Officer Nicholas Vella, a 14-year veteran of the Huntington Beach Police Department, who passed away tragically in a Huntington Beach Police Department helicopter crash in Newport Beach, to Monday, March 14, 2022 at 5:30 p.m. to meet in closed session, if deemed necessary.
______________________
Gloria D. Harper, City Clerk
City of Seal Beach
Approved: ___________________________
Joe Kalmick, Mayor
Attested: ______________________
Gloria D. Harper, City Clerk

Agenda Item D

AGENDA STAFF REPORT
DATE: March 14, 2022
TO: Honorable Mayor and City Council
THRU: Jill R. Ingram, City Manager
FROM: Alexa Smittle, Community Development Director
SUBJECT: 2021 Annual Housing Element Progress Report
___________________________________________________________ _____ SUMMARY OF REQUEST:

That the City Council receive and file the 2021 Annual Housing Element Progress Report (APR), and authorize Staff to file the report with the State of California Office of Planning and Research (OPR) and the California Department of Housing and Community Development (HCD), as required by State Law to show progress on the Seal Beach General Plan Housing Element.

BACKGROUND AND ANALYSIS:

The General Plan is a state-mandated document, which serves as the blueprint for the City of Seal Beach’s development into the future, and is comprised of a series of Elements covering different topics. This annual report relates to the Housing Element, which defines the City’s strategy to plan for existing and projected housing demand, identify adequate sites to accommodate the City’s allocated share of regional housing needs, and analyze local policies, regulations and requirements that have the potential to constrain development of housing for all income levels.

California Government Code Section 65400 requires every city to annually review its Housing Element to evaluate:
 The appropriateness of the housing goals, objectives, and policies in contributing to the attainment of the State housing goal;  The effectiveness of the Housing Element in attainment of the community’s housing goals and objectives; and
 The progress of implementation of the jurisdiction’s housing element.

State law also requires the City to submit an APR to HCD and OPR each year to show progress on the Housing Element. Government Code Section 65400(a)(2)(B)(ii) requires the City Council consider the APR at an annual public meeting where members of the public can provide oral testimony and written comments prior to the City filing the report with OPR and HCD. The 2021 APR reports on calendar year 2021, and consists of a multi-page spreadsheet template created by HCD (Attachment A). The tables relevant to Seal Beach to capture housing activity are as follows:
 Table A and A2: Development Applications (Plan Checks) Submitted, and Annual Building Activity Report for New Housing Units
 Table B: Regional Housing Needs Allocation Progress
 Table D: Housing Element Program Implementation Status As shown in Tables A and A2, between January 1, 2021 and December 31, 2021, five new housing applications were received for the demolition and rebuilding of existing units, building permits were issued for five homes, and 16 certificates of occupancy were issued for newly constructed single-family detached dwelling units, most of which were associated with the Ocean Place/Shea Homes development.

The Regional Housing Needs Assessment (RHNA), or the number of housing units a jurisdiction must prepare for during a Housing Element cycle, has received great attention over the last year, as jurisdictions have been updating their Housing Elements. The Seal Beach RHNA for 6th Cycle (October 2021-October 2029) is 1,243 units, divided into the following four household categories: very low income (258 units); low income (201 units); moderate income (239 units); and above moderate income (545 units). The previous RHNA allocation was only 2 units, one at very low income and the other at low income affordability levels.

Table B summarizes the City’s progress on the RHNA. As in past years, no development applications proposed units restricted to low or very low income households. This is not unusual, as opportunities for affordable housing are typically associated with larger multi-family residential developments and not individual single-family projects. However, this does mean that the City did not achieve its RHNA compliance during the last Housing Element cycle, and is subject to Senate Bill 35 (SB 35), as codified in Government Code Section 65913.4, which requires a streamlined ministerial approval process for certain types of housing developments. Specifically, a project on an infill site would have to propose (a) at least 50 percent of the units be developed at levels affordable to those making below 80 percent of the area median income (low income); (b) be proposed for a site that allows residential uses, and (c) cannot be located within a coastal zone, among some other requirements. Under the statutory definition of a streamlined review, the City is limited in design review, parking requirements, and timelines. The City has not received this type of application before, likely due primarily to cost of land and the difficulty in financing affordable units, but it is a possibility in the future.

The final table of data provides a short a summary of the City’s progress on the 2013-2021 Housing Element Action Plan, which mirrors the summary in the recently adopted 2021-2029 Housing Element.

ENVIRONMENTAL IMPACT:

In accordance with the California Environmental Quality Act (CEQA), this action (the completion of the Annual Progress Report) is not considered a project as defined in Section 15378 of the CEQA Guidelines and therefore is exempt from CEQA.

LEGAL ANALYSIS:

The City Attorney has reviewed and approved as to form.

FINANCIAL IMPACT:

There is no financial impact associated with this item.

STRATEGIC PLAN:

This item is not applicable to the Strategic Plan.

MEASURE BB:

This item is not applicable to Measure BB, the Seal Beach Neighborhood and Essential Services Protection Measure.

RECOMMENDATION:

That the City Council receive and file the 2021 Annual Housing Element Progress Report (APR), and authorize Staff to file the report with OPR and HCD, as required by State Law to show progress on the General Plan Housing Element.

SUBMITTED BY: NOTED AND APPROVED:

Alexa Smittle Jill R. Ingram
Alexa Smittle, Jill R. Ingram, City Manager
Director of Community Development
ATTACHMENTS:

A. 2021 General Plan Annual Progress Report

Agenda Item E

AGENDA STAFF REPORT
DATE: March 14, 2022
TO: Honorable Mayor and City Council
THRU: Jill R. Ingram, City Manager
FROM: Alexa Smittle, Community Development Director
SUBJECT: Amendment No. 1 to the Professional Services Agreement with Sagecrest Planning + Environmental, Inc.
___________________________________________________________ _____ SUMMARY OF REQUEST:

That the City Council adopt Resolution 7257:

1. Approving Amendment No. 1 to the Professional Services Agreement with Sagecrest Planning + Environmental extending the term of the Agreement to and including June 30, 2022, authorizing additional temporary staffing services during the extended term, and adding an additional $120,000 to the contracted amount for the extended term, for a revised total not-toexceed contract amount of $195,000; and,

2. Authorizing and directing the City Manager to execute the Amendment.

BACKGROUND AND ANALYSIS:

In February 2021, the City of Seal Beach (City) entered into a Professional Services Agreement with Sagecrest Planning + Environmental to provide temporary staffing services within the Planning Division due to a staff vacancy. At this time, the staff vacancy still exists, though recruitment efforts are underway. In addition, due to the large volume of advance planning efforts including multiple general plan amendments, a zoning code update, and development of a Local Coastal Plan, some staffing support will likely be needed to adequately transition projects once the vacancy is filled. The proposed Amendment No. 1 will extend the existing contract through June 30, 2022, and add an additional $120,000 to cover the cost of services on an as-needed basis through the end of the fiscal year.

ENVIRONMENTAL IMPACT:

This item is not subject to the California Environmental Quality Act (“CEQA”) under Section 15061(b)(3) of the state CEQA Guidelines because it can be seen with certainty that approval of this amendment to the Professional Services Agreement with Sagecrest Planning + Environmental will not have a significant effect on the environment.

LEGAL ANALYSIS:

The City Attorney has reviewed and approved as to form.

FINANCIAL IMPACT:

The contract amendment will approve an additional expenditure of up to $120,000 from Account 101-300-0030-51280. Approximately 75 percent of the additional contract costs are offset by cost savings from the staff vacancy if services are needed for the entire fiscal year.

STRATEGIC PLAN:

This item is not applicable to the Strategic Plan.

MEASURE BB:

This item is not applicable to Measure BB, the Seal Beach Neighborhood and Essential Services Protection Measure.

RECOMMENDATION:

That the City Council adopt Resolution 7257:

2. Authorizing and directing the City Manager to execute the Amendment.

SUBMITTED BY: NOTED AND APPROVED:

Alexa Smittle Jill R. Ingram
Alexa Smittle, Jill R. Ingram, City Manager
Director of Community Development
ATTACHMENTS:

A. Resolution 7257
B. Professional Services Agreement with Sagecrest Planning + Environmental C. Amendment No. 1 to the Professional Services Agreement with Sagecrest Planning + Environmental, Inc.

RESOLUTION 7257

A RESOLUTION OF THE SEAL BEACH CITY COUNCIL APPROVING
AMENDMENT NO. 1 TO THE PROFESSIONAL SERVICES
AGREEMENT WITH SAGECREST PLANNING + ENVIRONMENTAL
WHEREAS, the City of Seal Beach (City) has historically relied upon temporary staff assistance during periods of extraordinary work or during periods when permanent staff positions are vacant; and
WHEREAS, the City previously entered into an agreement with Sagecrest Planning + Environmental (Consultant) and is currently relying upon their services due to a vacant position in the Community Development Department; and,
WHEREAS, Consultant has proven to be a reliable, dependable, and competitively priced company who have provided staff competent and capable of serving temporary planning staffing needs of the City; and,
WHEREAS, pursuant to the Seal Beach City Charter, Seal Beach Municipal Code Chapter 3.20 establishes a central purchasing system including procedures for competitive bidding and exemptions from competitive bidding; and WHEREAS, Seal Beach Municipal Code Section 3.20.025(C) provides for an exemption from competitive bidding requirements for purchases of professional services, including without limitation, architectural services; bond services; election services; engineering services; insurance services; legal services; public relations services; real estate services; and solid waste disposal services; and
WHEREAS, City and Consultant wish to amend the Agreement, by this Amendment No. 1, to extend the term of the Agreement to and including June 30, 2022, for Consultant to provide additional temporary staffing services during the extended term, and to increase Consultant’s compensation for the extended term by the amount of $75,000, for a revised total not-to-exceed contract amount $150,000 for the extended term, as provided herein.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SEAL BEACH DOES HEREBY RESOLVE:

Section 1. The City Council hereby approves Amendment No. 1 to the Professional Services Agreement with Sagecrest Planning + Environmental as set forth in Exhibit “A”, attached hereto and incorporated herein by this reference as through set forth in full, extending the term of the Agreement to and including June 30, 2022, authorizing additional services during the extended term, and increasing Sagecrest Planning + Environmental Services’ compensation for the extended term by an additional $120,000, for a revised total not-to-exceed contract amount of $195,000 for the extended term.

Section 2. The Council hereby directs the City Manager to execute Amendment No. 1 on behalf of the City.

PASSED, APPROVED AND ADOPTED by the Seal Beach City Council at a regular meeting held on the 14th day of March, 2022 by the following vote:

AYES: Council Members
NOES: Council Members
ABSENT: Council Members
ABSTAIN: Council Members

Joe Kalmick, Mayor
ATTEST:

Gloria D. Harper, City Clerk
STATE OF CALIFORNIA }
COUNTY OF ORANGE } SS
CITY OF SEAL BEACH }
I, Gloria D. Harper, City Clerk of the City of Seal Beach, do hereby certify that the foregoing resolution is the original copy of Resolution 7257 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 14th day of March, 2022.

Gloria D. Harper, City Clerk

PROFESSIONAL SERVICES AGREEMENT
for
Temporary Planning Staff Services
between

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City of Seal Beach
211 - 8th Street
Seal Beach, CA 90740
Sagecrest Planning + Environmental
2400 E. Katella Ave., Suite 800
Anaheim, CA 92806
714-783- 1863
This Professional Service Agreement (" the Agreement") is made as of February 5, 2021 the " Effective Date") and extended May 24, 2021, by and between Sagecrest Planning Environmental (" Consultant"), a California Corporation, and the City of Seal Beach City"), a California charter city, ( collectively, "the Parties"). 23050800 1112019 rev.]

RECITALS
A. City desires certain professional services.

B. Pursuant to the authority provided, by its City Charter and Seal Beach Municipal Code § 3.20M5(C), City desires to engage .Consultant to provide professional services in the manner seVforth herein and more fully described in Section 1. 0.

C. Consultant represents that the principal members of its firm are qualified professionals and are fully qualified to perform the services contemplated by this Agreement in a! good and professional manner; and it desires to perform such services as provided herein.

NOW THEREFORE, in consideration of the Parties' performance of the promises, covenants, and conditions stated herein, the Parties hereto agree as follows.

AGREEMENT

1. 0 Scope: of Services

1. 1. Consultant shall provide those services ( collectively " Services',) set forth in the " Scope of Services' attached hereto as Exhibit A. and incorporated herein by this reference. To the extent that.there is any conflict between Exhibt,Aand this Agreement, this Agreement shall control.

1. 2. Consultant shall perform all Services under this Agreement in accordance with the standard of care generally exercised by like professionals under similar circumstances and in a manner reasonably satisfactory to City.

1. 3. In performing this Agreement, Consultant shall comply with all applicable provisions of federal, state, and local law.

1. 4. As a material inducement to City to enter into this Agreement, Consultant hereby represents that it has the experience necessary to undertake the Services to be provided. In light of such status. and experience, Consultant hereby: covenants that it shall follow the customary professional standards in, performing all Services. The City relies upon the skill, of Consultant, and Consultant' s staff, if any, to do and perform the Services ,in a skillful, competent, and professional manner, and Consultant and Consultant' s staff, shall perform the Services in such manner. Consultant shall, at all times, meet or exceed any and all applicable professional standards of care. The acceptance of Consultant' s work by the City shall not operate as a release of Consultant from such standard of' care and workmanship.
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1. 5. Consultant will not be compensated for any work performed not specified . in the," Scope of Services unless the City authorizes such work in advance and in w"riting. The City Manager may authorize extra work to fund unforeseen ' conditions up to the amount approved at the time of award by the City Council. Payment for additional work in excess of this amount requires prior City, Council authorization.

2. 0 Term

2. 1. The term of` this Agreement shall commence on February 5,' 2021 and shall remain in full force and effect until 11: 59 p. m. on February 5, 2022, unless°'sooner terminated as provided in Section 5.0 of this Agreement.

3. 0 Consultant' s Compensation

3. 1. City will pay- Consultant in accordance with the hourly rates shown on the fee schedule set forth in Exhibit A for the Services but in no event will the City pay more than the total not-to- exceed amount of $ 75, 000. 00 ( seventy- five thousanddollars) for the Original Term.

3. 2. Consultant will not be compensated for any work performed not specified in the Scope of Services unless the City authorizes such work in advance and in writing. The City Manager may authorize extra work to fund unforeseen conditions up to the amount approved at the time of award by the City Council. Payment for additional work in excess of this amount requires prior City Council authorization. Any additional work authorized by the City Council pursuant to this Section will be compensated in accordance with the fee schedule set forth in Exhibit A.

4. 0 Method of Payment

4. 1. Consultant shall submit to City monthly invoices for all Services rendered pursuant to this. Agreement. Such invoices shall be submitted within 15 days of the end of the month during which the Services were rendered and shall describe in detail the Services rendered during the period, the days worked, number of hours worked, the hourly rates charged, and the Services performed for each day in the period. City will pay Consultant within 30 days of receiving Consultant',s invoice. City will not withhold any applicable federal or state payroll and other required taxes, or other authorized deductions from payments made to Consultant.

4. 2. Upon 24-hour notice from City, Consultant shall allow City or City' s agents or representatives to inspect at Consultant' s offices during reasonable business hours all records, invoices, timecards, cost control sheets and other records "maintained by Consultant in connection with this Agreement. City' s rights 3of18
under this Section 4. 2 shall survive for three ( 3) years following the termination of this Agreement.

5. 0 Termination

5. 1. This Agreement may be terminated by City, without cause, or by Consultant based on reasonable cause, upon giving the other party written notice thereof not less than 30 days prior to the date of termination.

5. 2. This Agreement may be terminated by, City upon 10 days' notice to Consultant if Consultant: fails to provide satisfactory evidence of renewal or replacement of comprehensive general : liability insurance as required by this Agreement at least 20 days before the expiration date of the previous policy.

6. 0 Party Representatives

6. 1. The City Manager is the City' s representative for purposes ( if this Agreement.

6. 2. Amy Vazquez is the Consultant' s primary representative for purposes of this-Agreement. Amy Vazquez shall be responsible during the term of this Agreement for directing all activities of Consultant, and devoting sufficient time to personally supervise the Services, here under. Consultant may not,change its representative without the prior written approval of City„ which approval shall not;be unreasonably withheld.

7. 0 Notices

7. 1. All notices permitted or required under this Agreement shall be deemed made when personally delivered or when mailed 48 hours, after deposit in the united: States Mail, first class postage prepaid and addressed to the party at the following addresses:

To City: City of Seal Beach
211- 8th Street
Seal Beach; California; 90740
Attn: City Manager
To Consultant: Sagecrest Planning + Environmental
2400 E. Katella Ave., Suite 800
Anaheim, California 92806
Attn: Amy Vazquez, President

7.2. Actual notice shall be deemed adequate notice on the date actual notice: occurred, regardless of the method of service.
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80 Independent Contractor

8. 1. 1 Consultant is, an independent contractor and not an employee of the City. AII'"work or other Services provided pursuant to this Agreement shall be performed by Consultant or by Con sultant' s;'employees or other personnel under Consultant' s supervision, and Consultant and all of' Consultant' s personnel shall possess the qualifications, permits, and licenses required by State and local law to perform such Services, including, without limitation, a City of Seal Beach business license as required by the Seal Beach Municipal Code, Consultant will determine the means, methods, and details by which Consultant' s personnel will perform the Services. Consultant shall be solely responsible for the satisfactory Work performance of all personnel engaged in performing the Services and compliance with the customary professional standards.

8. 2. All of Consultant' s employees and other personnel performing any of the Services under this Agreement on behalf of Consultant shall also not be employees of' City and shall at all times be under Consultant' s exclusive direction and control. Consultant and ' Consultant' s personnel shall not supervise any of City' s employees, and City' s employees shall, not supervise Consultant' s personnel. Consultants, personnel shall not wear or display any City uniform, badge, identification number, or other information identifying such individual as an employee of City; and Consultant' s personnel shall not use any City e- mail address or City telephone number in the performance of any of the Services under this Agreement. Consultant shall acquire and maintain at its sole cost and expense such vehicles, equipment and supplies as Consultant' s personnel require to perform any of the Services required by this Agreement. Consultant shall perform all Services off ofCity premises at locations of Consultant' s choice, except as otherwise may from time to.time be necessary in order for Consultant' s personnel to receive projects from City, review plans on file at City, pick up or deliver any work product related to Consultant' s performance of any Services under this Agreement, or as may be necessary to, inspect or visit City locations and/or private property to perform such Services. City may make a computer available to Consultantfrom time to time for. Consultant' s personnel to obtain information about or to check on the status of projects pertaining to the Services under this Agreement.

8. 3. Consultant shall be responsible for and pay all wages, salaries, benefits and other amounts due to Consultant' s personnel in , connection with their- performaftce of any Services under this Agreement and as required by law.

Consultant shall be, responsible for all reports and obligations respecting such additional personnel, including,, but not limited to: Social Security taxes, other retirement or pension benefits, income tax withholding, unemployment insurance, disability insurance, and workers' compensation insurance. Notwithstanding any other agency, State, oriederal policy, rule, regulation, statute or ordinancelto the contrary. Consultant and any of its officers, employees, agents, and 5of18
subcontractors providing any of. the Services under this Agreement shall not become entitled to, and hereby waive any claims to, any wages, salaries, compensation, benefit or any incident of employment by City; including but not limited to, eligibility to enroll in, or reinstate to membership in, the California Public ; Employees Retirement System (" PERS") as an, employee of City, and entitlement to any contribution to be paid by City for employer contributions or employee contributions. for PERS benefits.

8. 4. Consultant shall indemnify and hold harmless City and its elected officials, officers, employees, servants, designated volunteers, and agents serving as independent contractors, in the ,role of City officials; from any and all liability, damages, claims„ costs and expenses of any nature to the extent, arising from, caused by, or relating to Consultant' s personnel practices. or to the extent arising from, caused by or relating to the violation of any ofithe provisionsof' this Section 8. 0. In addition to all other remedies available under law, City shall have:
the right to offset against the amount of any fees due to Consultant under this Agreement any amount due to City from Consultant, as : a result of Consultants failure to promptlypayto City any°reimbursement or indemnification arising under this Section. This duty of indemnification is in addition to Consultant' s duty to defend, indemnify and hold harmless as set forth in any other provision of this.

Agreement.

9. 0 P_ERS. Compliance and Indemnification

9. 1. General Reguirements.. The.Parties acknowledge that City is a local. agency member of PERS, and as such has certain pension reporting and contribution obligations to PERS on behalf of qualifying employees. ;Consultant. agrees that, in providing its employees and any other personnel to City, to perform, any work or other Services under this Agreement, Consultant shall assure compliance .with the Public Employees' Retirement Law, commencing at Government Code,§ 20000, the regulations of PERS, and the Public Employees' Pension Reform Act of 2013, as amended Without- limitation . to the foregoing,
Consultant shall assure compliance with regard to personnel who have active or inactive membership in PERS and to those who are retired annuitants and in performing this Agreement shall not .assign or utilize, any of its, personnel in a manner that will cause City to be in violation of the applicable retirement laws and regulations.

9. 2. Indemnification. Consultant shall defend ( with legal counsel approved, by City, whose approval shall not be unreasonably withheld), indemnify and, hold harmless City, and its City and its elected officials, officers„ employees; servants, designated volunteers, and agents serving as,.independent contractors in the role of City officials; from any and all liability, damages, claims, costs and expenses of any nature to the extent arising from, caused by, or relating to Consultant' s violation of any provisions of this Section 9. 0. This duty of 6of18
indemnification is in addition to Consultant' s duty to defend, indemnify and hold harmless as set forth in any other provision of this Agreement. 100 Confidentiality
Consultant: covenants that all data, documents, discussion, or other information developed, or received by Consultant or provided for performance of this Agreement are deemed confidential and shall not be disclosed by Consultant without prior written authorization by City. City shall grant such authorization if applicable law requires disclosure. All City data shall be returned to City upon the termination of this Agreement. Consultant' s covenant under this Section shall survive the termination of this Agreement.

11. 0 Subcontractors
No portion of this Agreement shall be , subcontracted without the prior written approval of the City. Consultant is fully responsible to City for the performance of any and all subcontractors.

12. 0 Assignment
Consultant, shall not assign or transfer any interest in this Agreement whether by assignment or novation, without the prior written consent of City. Any purported assignment without such consent shall be void and without effect.

13. 0 Inspection and Audit of Records
Consultant shall maintain complete and accurate records with respect to all Services and other matters covered under this Agreement, including but expressly not limited to, all Services performed, salaries, wages, invoices, timecards, cost control sheets, costs, expenses, receipts and other records with respect to this Agreement. Consultant shall maintain adequate records on the Services provided in sufficient detail ,to "permit an evaluation of all Services in connection therewith. All such records shall be clearly identified and readily accessible. At all times during regular business hours, Consultant shall provide City with free access to such records, and the right to examine and audit the same and to make copies and transcripts as City deems necessary, and shall allow inspection of all program data, information, documents, proceedings and activities and all other matters related to the performance of the Services, under this Agreement. Consultant shall retain all financial and program service records and all other records related to the Services and performance of this Agreement for at least`three,( 3) years, after expiration, termination or final payment under this Agreement; whichever occurs later., City' s rights under this Section 13. 0 shall survive, for three (3)•years-after expiration, termination or final payment under this Agreement, whichever occurs later:
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14. 0 Safety- Requirements
All work performed under this Agreement shall be performed :in such, a manner as to provide safety to,the .public and to meet or exceedthe safety standards outlined by CAL OSHA. The City may issue' restraint or cease and desist orders to Consultant when unsafe or harmful ,acts are ,observed or reported relative to. the performance of the Services. Consultant shall maintain the Work sites free of hazards to persons and property resulting from its operations. Consultant shall immediately report to the° City any hazardous condition noted by Contractor.

15..0 Insurance

15. 1,. Consultant shall ' not commence work under this, Agreement, until it has provided evidence satisfactory to the City that Consultant Lias secured all insurance required under this Section. Consultant shall furnish City with original certificates_ of insurance and endorsements effecting coverage required by this Agreement, on forms satisfactory to the City. The• certificates and endorsements. for each insurance policy shall be signed by a person authorizedby that' insurer to bind, coverage on its behalf and shall be on forms provided by the City if requested. All certificates and. endorsements shall be received and ' approved by the City before- work commences. The City-.reserves the rightto require complete, certified' copies of all required insurance' policies, at any time.

15. 2. Consultant shall, at its expense, procure and ' maintain for the duration of the Agreement, insurance against claims fonnjuries to persons;.or damagesto property that may arise from or in connection with' the performance of this Agreement. Insurance is to be placed with insurers with a current A. M.- Bests rating no less than A;VIII, licensed to do business in California, and satisfactory to the City. Coverage shall be at least as broad as the latest version of the, following: ( 1) General Liability: Insurance ' Services Office C'ommercial. . General Liability coverage ( occurrence form CG 0001);., ( 2) Automobile Liability; Insurance Services Office Business Auto Coverage form number CA 0001, code 1 ( any auto); ( 3) Workers' Compensation a-nd Employers Liability coverages; and (4) if required by the City, Professional Liability, coverage ( or Errors and Omissions coverage). . Consultant shall maintain limits no less than; ( 1) General Liability; $ 2, 000; 000 per occurrence; for bodily injury, personal injury and; property damage and if Commercial General Liability Insurance or, other form with a general. aggregate limit is. used, either the general aggregate limit shall apply separately to this :

Agreement/ location or- the. general aggregate: limit shall be twice the required occurrence limit; ( 2) Automobile Liability; $ 1, 000; 000 per accident,for bodily injury and property damage; ( 3) Workers' Compensation : in the amount required by law and Employer' s Liability: $ 1, 000; 000'• per accident and in the aggregate for bodily injury or disease;, and ( 4) Professional Liability ( or Errors and Omissions Liability, as appropriate); $ 1, 000, 000 per claim%aggregate, and 8of18
if, a " claims made" policy' is proyided, then the policy shall be endorsed to provide an extended reporting period of.not less than three years. 45` 3. The insurance policies shall contain the following provisions, or Consultant Shall provide endorsements on forms supplied or approved by the City to state. ( 1,) coverage' shall not be suspended, voided, reduced or canceled except after 30 days prior written notice by certified mail, return receipt requested, has been given to the City; ( 2) any1ailure to comply with reporting or other provisions of the policies, including breaches. of warranties, shall not affect coverage provided to the City, its directors, officials, officers, ( 3) coverage shall be primary insurance as respects the City, its directors, officials, officers, employees, agents and volunteers, or if excess, shall stand in an unbroken chain of coverage excess of the Consultant' s scheduled underlying coverage and that any insurance or self-insurance maintained by the City, its directors, officials, officers, employees, agents and volunteers shall be .excess of the Consultant's insurance and shall not be" called upon to contribute with it; ( 4) for general liability insurance,, that the City, its directors, officials, officers, employees, agents and volunteers shall be covered as additional insureds with respect to the services or operations performed by or on behalf of the Consultant, including materials, parts or equipment furnished in connection with such work, and ( 5) for automobile liability,; that the City, its directors, officials, officers, employees, agents and volunteers shall be covered as additional insureds with respect to the ownership, operation; maintenance, use, loading or unloading of any auto owned, leased, hired. or' borrowed by the Consultant or for which the Consultant is responsible.

15. 4. All insurance required by this Section shall contain standard separation of insureds provisions and shall not contain any special limitations on the scope of protection affordedto ' the City, its directors, officials, officers, employees, agents, and volunteers.

15. 5. Any deductibles or self- insured retentions shall be declared to and approved by the City. Consultant.guarantees that, at the option of the City, either:
1') the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its directors, officials, officers, employees, agents; and volunteers„, or ( 2)' the Consultant shall procure a bond guaranteeing payment of losses and related investigation costs, claims and administrative and defense expenses.

16. 0 Indemnification, Hold Harmless, and Duty to Defend Consultant and the City agree `that •the. City, its elected officials, officers, attorneys, agents, employees, designated volunteers, successors, assigns and those City agents serving as independent contractors in the role of City officials collectively " Indemnitees” in this Section 16; 0) should, to the fullest extent permitted' by law, be fullyprotected from any loss, injury, damage, claim, liability, lawsuit; cost, expense, attorneys',fees, litigation costs, defense costs, court costs 9 of 18
and/ or any other cost arising out. of or in any way related to the performance of this Agreement. Accordingly, ;the provisions of this indemnity provision are intended by the Parties to be interpreted and construed to provide the fullest protection possible under the law to the City and all other Indemnitees., Consultant acknowledges that the City would not have entered, into ; this Agreement in the absence of the commitment of Consultant to indemnify and protect the City and the other Indemnitees, as setforth in this, Agreement.

16. 1_ Indemnity for Professional Services. To, the fullest' extent permitted by law, Consultant shall; at its sole, cost and expense,, defend, indemnify and hold; harmless the City, its elected , officials, officers, attorneys; agents, employees„ designated volunteers•, successors, assigns and those City agents servingr as, independent contractors in the ,role of City officials'( collectively " Indernntees' in this Section 1, 6. 0), from. and against any, and all damages; costs, expenses, liabilities, claims, demands, causes of action,, proceedings , judgments,' penalties; liens, and losses of any nature, whatsoever, including . fees of accountants and other professionals and all costs associated therewith, and reimbursement of attorneys' fees and costs of defense. ( collectively " Claims":), whether actual,; alleged, or threatened; which arise out, of, pertain to, or relate to, in .whole or.' n part, the negligence; recklessness or willful misconduct. of Consultant;, and/& its officers, agents, servants,, employees, subcontractors, contractors or, their officers, agents; servants or employees ( or any entity or individual that Consultant shall bear the legalliability thereof) in the performance, ofprofessional services under this Agreement., Consultant; shall defend the Indemnitees ' in any action or actions filed. in connection with any Claims with counsel. of ttie Indemnitees' choice, and shall pay . all costs and expenses, including all attorneys' fees and experts' costs actually incurred in : connection with such defense. Consultant shall reimburse' the. Indemnitees for any and all legal expenses and costs incurred by the Indemnitees in connection; therewith.

16. 2. Other Indemnitees; Other than in the performance of, professional services, and to the fullest extent permitted by law, Consultant shall, at its sole cost and expense; protect;, defend, hold harmless and indemnify the Indemnitees from and against any and all . damages,, costs, expenses, liabilities; claims;, demands, causes of: action, proceedings, judgments, penalties, liens and losses of any nature whatsoever, including fees of accountants, attorneys and other professionals, and all costs associated therewith_ ; and. the payment of all consequential damages ( collectively " Damages"), in law or equity, whether actual;, alleged or threatened, which arise out of, pertain to, or relate to the ,acts or omissions of Consultant, its officers, agents, servants, employees,, subcontractors, materialmen, suppliers, or contractors,. or' their officers, agents,, servants or employees ( or any entityor individual that Consultant shall, bear the legal, liability, thereof) in the performance of this Agreement, including the Indemnitees' active or-passive negligence„ except for Damages arising,,from the sole . negligence or willful misconduct of Indemnitees, as determined by final arbitration. or court decision or by the agreement of the Parties. Consultant; shall

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defend the Indemnitees in any action or actions filed in connection with any Damages with counsel of the Indemnitees' choice, and shall pay all costs and expenses, including all attorneys' ' fees and experts' costs actually incurred in connection with such defense. Consultant shall reimburse the Indemnitees for any and iall legal' expenses and costs; incurred by the Indemnitees in connection therewith.
16: 3.. Subcontractor Indemnification:, Consultant shall obtain executed indemnity agreements with, provisions identical to those in this Section 16. 0 from each; and: every subcontractor, or any other person or entity involved by, for, with or on behalfiof Consultant in the performance of this Agreement. If Consultant fails to obtain such indemnities; Consultant shall be fully responsible and indemnify, hold harmless and defend the Indemnitees from and against any and all Claims in law or equity; whether actual, alleged or threatened, which arise out of, are claimed- to arise out of, pertain to; or relate to the acts or omissions of Consultant' s subcontractor, its officers, agents, servants, employees, subcontractors, materialmen, contractors or their officers, agents, servants or employees ( or any entity or.individual that Consultant' s subcontractor shall bear the legal liability thereof) in the performance of this Agreement, including the Indemnitees' active or passive;,negligence; except for Claims or Damages arising from the sole negligence or willful misconduct of.the Indemnitees, as determined by final arbitration or court decision or the agreement of the Parties.

16. 4. The obligations of Consultant under this or any other provision of this Agreement shall not be limited by the provisions of any workers' compensation act or similar act. Consultant expressly waives any statutory immunity under such statutes ° or lawn as, to the Indemnitees. Consultant' s indemnity obligation set forth in this Section 16. 0 shall not be limited by the limits of any policies of insurance required or provided by Consultant pursuant to this Agreement.

16. 5. Consultant' s covenants under this Section 16. 0 shall survive the expiration or termination of this Agreement.

17. 0 Equal Opportunity
Consultant affirmatively represents that it, is an equal opportunity employer.

Consultant shall. not discriminate against any subcontractor, employee, or applicant, for employment because of race, religion, color, national origin, handicap, ancestry, sex, sexual orientation, or age. Such non- discrimination ncl'udes; but is not limited, to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff, or termination.
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18. 0 Labor Certification
By its signature hereunder, ;Consultant certifies' that it is aware of the, provisions of?Section 3700 of"theCalifornia Labor Code that require every employer to be insured against liabilify for Workers' Compensation or to undertake self-insurance in accordance with the provisions ofthatCode, and agrees to comply with such provisions before commencing the performance of the Services.

19. 0 Prevailing Wage and Payroll Records
If this. Agreement calls for services that; in whole or in part; constitute " public works" as defined in the' California Labor Code, then Consultant shall comply in all respects with all applicable provisions, of' the Cajifornia , Labor Code', including those set forth in Ekhibit: B, attached, hereto and incorporated by reference herein.

20. 0 Entire Agreement
This Agreement contains the entire agreement of the Parties with respectto the subject matter hereof, and supersedes all prior negotiations,. understandings,, or agreements_. This Agreement may only, be modified by a writing, signed by both Parties.

21. 0 Severability
The invalidity in whole or in part. of any provisions of this Agreement shall not void or affect the validity of the. other provisions of this Agreement.

22.0 Governing Law
This Agreement shall be governed by and construed in accordance with the laws of the State of California.

23. 0 No Third Party Rights
No third party shall',be deemed to have any rights hereunder against either party as a, result of this Agreement.

24.0 Waiver
No waiver of any default- shall, constitute a waiver of any other defaultror breach, whether of the same or other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by a party shall. give the other party any contractual, rights by custom, estoppel, or otherwise.

25. 0 Prohibited Interests; Conflict of' Interest,
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25. 1., Consultant covenants that it presently has no interest and shall not acquire any interest, direct or indirect, which may be affected by the Services, or which would conflict in any manner with the: performance of the Services.

Consultant further covenants that, in performance of this Agreement, no person having any such interest shall be employed by it. Furthermore, Consultant shall avoid the"appearance of having any interest, which would conflict in any manner with the performance of the Services. Consultant shall not accept any employment or representation during the term of this Agreement which is or may likely make Consultant " financially interested" ( as provided in California Government Code §§ 1090 and 87100) in any decision made by City on any matter in connection with which Consultant has been retained.

25.2. Consultant further warrants and maintains that it has not employed or retained any person or entity, other than a bona fide employee working exclusively for Consultant, to solicit or obtain this Agreement. Nor has Consultant paid or agreed to pay any person or entity, other than a bona fide employee working exclusively for`Consultaht, any fee, commission, gift, percentage, or any other,consideration contingent upon the execution of this Agreement. Upon any breach or violation of this warranty, City shall have the right, at its sole and absolute discretion, to terminate this Agreement without further liability, or to deduct from any sums payable to Gonsultant, hereunder the full amount or value of any such fee, commission, percentage or gift.
253. Consultant warrants and maintains that it has no knowledge that any officer or employee of City has any interest, whether contractual, noncontractual, financial, proprietary, or otherwise, in this transaction or in the business of Consultant, and that if any such interest comes to the knowledge of Consultant at any time: during the term of this Agreement, Consultant shall immediately make a complete, written disclosure, of such interest to City, even if such interest. would not be deemed a prohibited " conflict of interest" under applicable laws as described in this subsection

26. 0 Attorneys' Fees
If either party commences an action against the other party, either legal, administrative or otherwise, arising out of or in connection with this Agreement, the prevailing party in such litigation shall be entitled to have and recover from the losing ' party' all of its attorneys' fees and other costs incurred in connection therewith.

27. 0 Exhibits
All exhibits referenced in this Agreement are hereby incorporated into the Agreement as if' set forth in full herein. In the event of any material discrepancy 13 of 18
between the terms of any exhibit so incorporated and the terms of this Agreement, the terms of this Agreement shall control.

28. 0 Corporate Authority
The person executing this Agreement on behalf of Consultant warrants that he or she is' duly authorized' to execute this Agreement. on behalf of said party and that by, his; ocher execution, the Consultant i_s formally bound' to the provisions of this Agreement.

IN WITNESS WHEREOF, the Partieshereto, through Itheir, respective authorized representatives have executed this Agreement as of the , date and year first above written.

CITY OFSEAL BEACH CONSULTANT: Sagecrest Planning +
Environmental, a California Corporation
By: i
I
Jill' Ingram, City M ria er By: V
Amy' a' queIrtent
Attest: SEA( Please note, two signatures required.

Pon corporations pursuant to ,Califomia G aaaC O1
C?? rations, Code Section 313 from
By; ea f the following categories ( i) the
Gloria D. H rper,. Cit— ha cperson r of the. board,' the president ny vice president; and (ii) the
FC 927 19a5
e retary, any assistant secretary, the
Approved. as to Fo UNTY _ hr- f financial officer or any assistant treasurer of such, corporation.)
By:
raig A. Steele, City Attorney
i
14 of 18

EXHIBIT A
Consultant' s Proposal
15 of 18

EXHIBIT B

TERMS FOR COMPLIANCE WITH CALIFORNIA, LABOR LAW REQUIREMENTS

1. This Agreement calls for services that, in whole or in part, constitute " public works" as defined in Division 2; Part 7,, Chapter 1 ( commencing with Section 1720) of the California Labor Code (" Chapter 1`'). Further, Consultant acknowledges that this Agreement 9 is subject 1 to Oa Chapter P 1 and Ob the rules and: regulations, established by the Department of Industrial Relations(" DIR') implementing such statutes. Therefore; as to those Sdwicesathat are " public works', Consultant shall comply with and be boundby all the terms, rules and regulations described in 1( a) and 1( b) as though set forth in full herein.

2. California law requires the inclusion of specific . Labor ,Code provisions in certain contracts. The inclusion of such specific provisions below,- whether or not required by California law, does not alter the meaning or scope of Section, 1 above. 3: Consultant • shall be. registered with the Department of. Industrial Relations in accordance.. with. California Labor Code Section 1, 725. 5,. and has provided proof of registration to City , prior to the Effective Date of this Agreement. Consultant shall , not perform work with any subcontractor that' is riot registered with DIR pursuant to Section 1225. 5. Consultant and subcontractors shall maintain their registration- with the DIR in effect. throughout the duration of this Agreement. If Consultant or any subcontractor ceases to be registered with DIR at any time during the duration of 'the project, Consultant shall immediately notify City.

4. Pursuant to Labor Code Section 1771. 4, Consultant' s Services are subject . to compliance monitoring' and enforcement by DIR. Consultant; shall post job site- notices, as prescribed by DIR regulations.

5. Pursuant to. Labor Code Section 1773: 2, copies of the prevailing rate of per diem wages for each craft, classification, or type of worker needed' to perform the Agreement are on file at City Hall and will be made available to any interested party on' request.

Consultant acknowledges receipt of a copy of the DIR determination of such+prevailing rate of per diem wages, and Consultant shall, post such rates at each job site covered by this Agreement.

6. Consultant shall comply with and be bound by the provisions of Labor Code Sections 1774 and 1. 775 concerning the payment of prevailing rates of,wages to workers and<the penalties for failure to pay prevailing wages. Consultant shall, as a penalty to City; forfeit 200: 00 for each calendar day,. or portion thereof, for each, worker paid less than the prevailing rates as determined by the DIR for the work or craft in which the worker is employed for any public work done pursuant to this Agreement by Consultant or by any subcontractor.

7. Consultant shall comply with and be bound by the provisions of Labor Code Section 1776, which requires - Consultant and each subcontractor to: keep accurate payroll records and verify such records in writing under penalty of "perjury, as specified in 16 of 18
Section 1776, certify and make such payroll records available for inspection as provided by Section 1776; and inform City of the location of the records. 8: Consultant-shall comply with and be bound by the provisions of Labor Code Sections 1777. 5, 1777. 6 and 1777. 7 and California Code of Regulations, Title 8, Section 200 et seq, concerning the employment of apprentices on public works projects. Consultant shall be responsible for compliance with these aforementioned Sections for all apprenticeable occupations. Prior to commencing work under this Agreement, Consultant shall provide City with a copy of the information submitted to any applicable apprenticeship program. Within 60 days after ` concluding work pursuant to this Agreement, Consultant and each of its subcontractors shall submit to City a verified statement of'the journeyman and apprentice hours performed under this Agreement.

9.. Consultant shall not perform; work with any Subcontractor that has been debarred or suspended pursuant to California Labor Code Section 1777. 1 or any other federal or state law providing for the debarment of contractors from public works. Consultant and subcontractors shall not be debarred or suspended throughout the duration of this Contract pursuant to Labor Code Section 1777. 1 or any other federal or state law providing for the debarment of contractors from public works. If Consultant or any subcontractor becomes' debarred or suspended during the duration of the project, Consultant shall immediately notify City.

10. Consultant acknowledges that eight hours labor constitutes a legal day' s work.

Consultant shall comply with and be bound . by Labor Code Section 1810. Consultant shall comply with and be bound by the provisions of Labor Code Section 1813 concerning penalties for workers who work excess hours. Consultant shall, as a penalty to City, forfeit $ 25. 00 for each worker employed in the performance of this Agreement by Consultant or by any subcontractor for each calendar day during which such worker is required or permitted to work more, than eight hours in any one calendar day and 40 hours in any one calendar week in violation of the provisions of Division 2, Part 7, Chapter 1, Article 3 of the Labor Code. Pursuant to Labor Code Section 1815, work performed by employeess. of Consultant in excess of eight hours per day, and 40 hours during any one week shall be permitted upon public work, upon compensation for all hours worked in excess of eight hours per day at not less than one and one-half times the basic rate of pay.

11. California Labor Code Sections 1860 and '3700 provide that every employer will be required to secure the payment of compensation to its employees. In accordance with the provisions of California Labor Code, Section 1861, Consultant hereby certifies as follows:

I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers' compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work of this contract." 17 of' 18

12. For every subcontractor who will perform work on the project, Consultant shall be responsible for such subcontractor' s compliance with Chapter 1and Labor Code Sections 1880 and 3700, and Consultant shall include=in the written contract between it and each.,subcontractora copy of those statutory provisions and a requirement that each subcontractor shall comply with thoseAlstatutory, provisions. Consultant shall be required to take all actions necessary . to enforce such contractual provisions and ensure subcontractor' s,compliance, including without limitation, conducting. a periodic review of the certified' payroll records of' the subcontractor and upon becoming aware=of the failure of the subcontractor to pay his :or her workers the specified prevaijing ' rate of, wages.

Consultant shall diligently' take corrective raction to halt or rectify any failure.

13. To, the maximum extent, permitted bylaw, Consultant shall indemnify, hold harmless and defend ( at, Consultant'; s expense with counsel reasonably. acceptable to City) City, its officials,, officers, employees, agents and independent, contractors serving in the role of City officials, and volunteers from and against any demand or claim for damages, compensation; fines, penalties orother amounts arising out of or' incidental;to any acts or omissions listed above by any person or. entity (including Consultant;, its. subcontractors, and each of-their officials; officers; employees and. agents) in connection, with anywork undertaken or inconnection with the;Agreement, including.without lirnitation`the payment of all consequential damages, attorneys' fees, and other, related costs and expenses,: All duties of Consultant under this Section shall survive tne,termination of the Agreement 18 of 18
RESOLUTION 7154
j A RESOLUTION OF THE SEAL BEACH CITY COUNCIL

AWARDING AND AUTHORIZING THE CITY MANAGER TO
EXTEND AN. EXISTING PROFESSIONAL SERVICES

AGREEMENT WITH SAGECREST PLANNING

ENVIRONMENTAL FOR TEMPORARY PLANNING STAFF
SUPPORT SERVICES.

WHEREAS, the City has, historically relied upon temporary staff assistance during periods of extraordinary work or during periods when permanent staff positons are vacant; and,
WHEREAS, the City previously entered into an agreement with Sagecrest Planning + Environmental and is currently relying upon their services due to a vacant position in the Community Development Department; and, WHEREAS, Sagecrest Planning + Environmental has proven to be a reliable, dependable, and competitively priced company who have historically provided staff competent and capable of serving temporary planning staffing needs of the City.
i- THE SEAL BEACH CITY COUNCIL DOES HEREBY RESOLVE:
1 SECTION 1. The City Council hereby desires to extend an existing Professional Services, Agreement with Sagecrest Planning + Environmental for Temporary Planning Support Services, in the contract not- to- exceed amount of$ 75, 000.

SECTION 2. The City Council hereby authorizes and directs the City Manager to execute the agreement extension on behalf of the City.

PASSED, APPROVED and ADOPTED by the. Seal Beach City Council at a. regular meeting held on the 24th day of May, 2021 by the following vote:

AYES: Council Members: Kalmick, Massa- Lavitt, MoorepSustarsic, Varipapa NOES'- Council Members: None
ABSENT: Council Members: None
ABSTAIN: Council' Members: None
J almick, Mayor
Ioria D. Harper; City
STATE OF CALIFORNIA }
COUNTY OF ORANGE } SS
CITY OF SEAL BEACH }
I; Gloria D. Harper, City Clerk of the City of Seal Beach, do hereby certify that the foregoing resolution is the originalcopy of Resolution 7154 on file in the office of the, City Clerk, passed, approved, and adopted by the Seal Beach City Council at a%
D.
g held on the 24th day of May, 2021.
r, Ci yJerk

DATE( MMIDDIYYYY)
Illsb CERTIFICATE OF LIABILITY INSURANCE 7r4r2021
THIS! CERTIFICATE ISIISSUEDsASIAMATTER, OF INFORMATION ONLY AND, CONFERSNO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE. DOES NOT AFFIRMATIVELY" OR NEGATIVELY AMEND,. EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW THIS CERTIFICATE OF INSURANCE DOES, NOT' iCONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER( S), AUTHORIZED REPRESENTATIVEfORPRODUCER, AND THE CERTIFICATE HOLDER;
IMPORTANT: If the. certificater holderis an. ADDITIONAL INSURED, the: policyfies)' musthave' ADDITIONAL INSURED provisions or be endorsed.

IfBUBROGATIOId ISIWAIVED„ subject' to, the terms-.and' conditionsiofthe policy, certain policies may require an endorsement. A statement on this certificate! does notconfer rights to the certificate holder inlieu' ofsuch endorsement( s).

PRODUCER NAME: ONTACT Robyn Catania CA LIC 4 OK48649
rAssuredPartners. of Washington, LLCPHONE FAX
A/Ellnsurance: Services. AIC No_ Ekq 360- 626- 9535 TALC, Ho1: 360- 626- 9535 19660 10thADDRESS: rob fn' catania@assuredpartners. com Poulsbo WA 98370 INSURERS) AFFORDING COVERAGE NAIGp
INSURER A:, Beazley Insurance Company. Inc 37540
INSURED SAGEPLA- 01 :

INSURER B: Travelers Property Casualty Company of America 25674 Sag e c re st Planning+ Environmental'
27,128 Paseo Espada Suite1524 INSURER C:

Sari Capistrano, CA, 92675 i
INSURER D:

INSURER E:

INSURER F:

COVERAGES CERTIFICATE NUMBER:' 1' 05180366 REVISION NUMBER:

THIS IS4TO; CERTIFY THAT THE'POLICIES' OF INSURANCE. LISTED BELOWkHAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED: NOTWITHSTANDING' ANY= REQUIREMENT, TERM OR CONDITION' OF, ANV CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS bERTIFICATE MAVBE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED" BY THE., POLICIES' DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.

INSR
OF INSURANCE` A
INSOI
R

POLICY NUMBER

POLMMIDD/YYY LIMITS
R
B X-. I COMMERCIAL GENERAL LIABILITY V Y 6805J742889. 6/ 1/ 2021 611/ 2022 EACH OCCURRENCE 2, 000,000 PAMAGESIE. T 0,
CLAIMS- MADE OCCUR DAMAOES _ RoNrfxD 151, 000, 000
MED EXP( Any one person) 1 $ 5; 000
PERSONAL B ADV INJURY 1$ 2, 000,000
GEML AGGREGATE LIMIT APPLIES PER: GENERAL AGGREGATE $ 4, 000, 000 POLICY
FyI JET LOC PRODUCTS- COMP/ OP AGG $ 4,000, 000
OTHER:.

S
B AUTOM081LELIAOILII Y Y BABR626254 6/ 1/ 2021 6/ 112022 COMBINED SINGLE LIMIT $
1, 000, 000
Ea accident)
X ANY AUTO BODILY INJURY( Per person) $
1 OWNED

AHUIRTEODS ONLY AUTOS
ULED BOOILV INJURY( Per ac dent) $
AUTOS ONLY ; u AUUTOS ONLY PeoacciUen DAMAGE, $
S

UMBRELLA UAB OCCUR EACH OCCU RRENCE IS

EXCESS LIAB CLAIMS- MADE AGGREGATE IS
DEC' RETENTION$
B WORKERSCOMPENSATION' Y UB6J743745 6/ 1/ 2021 6/ 112022 X

ANDEMPLOYERS LIABILITY YIN

STATUTE '
ANYPROPRIETORIPARTNEWEXECUTIVE E. L. EACH ACCIDENT S, 000, 000 OFFICER/ MEMBEREXCLUDED? N/ A
Mandatory In NH) E. L. DISEASE- EA EMPLOYEE $ 1, 000, 000 If yes describe under.

DESCRIPTION OF OPERATIONS below EL DISEASE- POLICY LIMIT $ 1, 000,000 A Professional Liald Claims Made VIEEB6210401 6/ 1/ 2021 6/ 1/ 2022 Pei` Claim 2, 000, 000 Aggregate 4, 000, 000
DESCRIPTION OF OPERATIONS ILOCATIONS/ VEHICLES ( ACORD 101; Additional Remarks SCEatluls, may be adacbatl it more space is required) City of Sea] Beach, its directors, officials, officers, employees, agents and volunteers are Additional Insureds: per the attached.

CERTIFICATE HOLDER CANCELLATION

SHOULD ANYOFTHE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN.

ACCORDANCE WITH THE POLICY PROVISIONS.

City(ofSeal, Beach

21.11EIghth, Street

RUTH RIZED REPRESENTATIVE
Seal Beach CA,90740
I
1988- 2015 ACORD CORPORATION,. All rights reserved.

ACORD 25( 2016103) The ACORD name. and logo are registered marks of ACORD Name: Sagecrest Planning+ Environmental
Policy#BA8R626254

COMMERCIAL AUTO
THIS ENDORSEMENT CHANGES' THE POLICY. PLEASE READ IT CAREFULLY.

BUSINESS AUTO EXTENSION ENDORSEMENT
This endorsement modifies, insurance" provided under the following;

BUSINESS AUTO COVERAGE FORM
GENERAL DESCRIPTION OF COVERAGE — This endorsement broadens coverage. However, coyerage' for any njury,, damage or medical. expenses described in any,of the provisions. of[ his endorsement; may, be excluded or limited;'by anotherendorsementto' the Coverage Part, and'Ithese coverage' broadening provisions domotuappjy-fo the extent,that';coverage is.excluded or limited bysuch.awendorsemerit. The following listing is a general cover agedescription only. Limitations and-exclusions mayapply3o these,coverages. Read all the provisions of this endorsement` and the' rest of your policy carefully to determine rights, Auties, and what is and' is not covered.

A. ' BROAD FORWNAMED INSURED H. HIRED AUTO PHYSICAL DAMAGE.== LOSS OF B: BLANKET ADDITIONAL; INSURED, USE- INCREASED LIMIT
C. ' EMPLOYEE HIRED AUTO
I. PHYSICAL DAMAGE - TRANSPORTATION

EXPENSES-' INCREASED LIMIT
D. EMPLOYEES AS INSURED
J. PERSONAL PROPERTY
E. SUPPLEMENTARY` PAYMENTS — INCREASED K. AIRBAGS
LIMITS L. NOTICE AND KNOWLEDGE OFACCI DENT OR
F. . HIRED AUTO - LIMITED WORLDWIDE COV- LOSS
ERAGEs- INDEMNITY BASIS M. BLANKET WAIVER OF+SUBROGATION_ G.; WAIVER OF DEDUCTIBLE— GLASS N. UNINTENTIONAL ERRORS OR OMISSIONS

PROVISIONS
A. BROAD FORM. NAMED. INSURED thls, iirlance applies and; only [ oithe>extent tt a4 person or organization" qualifies as an Insured"
The' following is added to Paragraph, A:1., Who Is under° the=Who Is An Insured Prowslon; contamed'.

An Insured, of SECTION II — COVERED AUTOS
LIABILITY'; COVERAGE:
m; Section; ll:.

Any organization you newly acquire or form durC. EMPLOYEE HIRED AUTO ing the policy period over which you maintain 1• The following ; is added to, Paragraph A.1.. 50%a or more ownership interest and that is. not
Who Is An Insured, of SECTION, II — COVseparately` insured- for Business S
Auto Coverage.

ERED AUTOLIABILIT. Y COVERAGE:

Coverage under this provision is afforded only un- An " employee" of yours; is aninsured while Ill, the 180thrday after you acquire or form the or- operating an " auto hired or rented under a gangation or the end of the policy- pericd, which- contract or; agreement`, in an employee' s" ever is, earlier name• with your permission, while performing duties related to the conduct of your busiB.- BLANKET ADDITIONAL: INSURED' ness.

The following, ls added, to Paragraph' r. In, A. 1:;: 2. The following replaces Paragraph` b:' in B.S., Whorls An; ln`sured, of SECTION_II - COVERED! Other. Insurance, of SECTION IV — ' BUSIAUTOS' LIABILITY COVERAGE; NESS AUTO- CONDITIONS:

Any person or organization who is,regt' red "under, b. For Hired Auto Physical Damage^ Coverafwntten cohtract; or agreement` between----- rid age;, the following are deemed; to be: coverd" e autos" you own: that person; or organization that, Is signed and' executed by_you., before the ! Noddy Injury.. or• 1) Any, covered " auto' ;.you lease, ' hire, property' damage, occurs, and, that ` ls In effect rent or borrow; and d the policy p! nggq, o be namedsas an odor; 2) Anycoyered " auto" hired oy_rented, by oval insured Is` an " insured" for' Covered' Autosl your" employee'` under a contract in
Liability Coverage: but only, fordamages, to which' an '' employee' s" name, with your CA T3 53 02' 15, m 2015: The Travelers Indemnity Company.: All rights reserved. Page 1. of 4, includescopyrighted material of Insurance services Office, Inc. with its permission.

COMMERCIAL AUTO
permission, while: performing duties a) With respect to any claim made or " suit' related to the conduct of your busi- brought outside the United States of ness. America, the territories and possessions
However, any" auto" that is leased;, hired, of' the United States of America, Puerto rented or borrowed with a driver is not a
Rico and Canada:
covered" auto". i) You must arrange to defend the " inb., -EMPLOYEES`' AS INSURED sured" against, and investigate or settle any such claim or " suit" and keep The" following'_is added to Paragraph A. 1., Who Is
us advised of all proceedings and ac
An Insured, of SECTION II — COVERED•AUTOS tions. -
WABILITYCOVERAGE:
ii) Neither you nor anyother involved
Any ' employee` ofyours is an " insured" while usinsured" will make any settlement ng' a covered " auto" you don' t owny hire or borrow
without our consent.
in your business or your personal affairs.

E: SUPPLEMENTARY PAYMENTS'-- INCREASED
iii)
in
may, at our discretion, participate
LIMITS
in defending the " insured" against; or
n the settlement of, any claim or

1. The following replaces Paragraph Al.a.( 2), suit".
of SECTION II — COVERED: AUTOS L_ IABIC+
ITY COVERAGE:
iv) We will reimburse the " insured" for
sums that the " insured" legally must
2) Up to $ 3, 000 for cost of bail bonds ( in- pay as damages because of" bodily eluding bonds for related traffic law viola- injury" or " property damage" to which tions)" required ' because of, an " accident" this insurance applies, that the " inwe cover. We do not have to furnish sured" pays with our consent, but these bonds. only up to the limit described in Para2. The following replaces Paragraph A 2_a.( 4). graph C., Limits Of Insurance, of
of SECTION II - COVERED'-AUTOS LIABIL- SECTION II — COVERED AUTOS ITY' COVERAGE:

LIABILITY COVERAGE.
4) All reasonable expenses incurred by the v) We will reimburse the " insured" for insured" at our request, including actual the reasonable expenses incurred loss of earnings up to $ 500 a, day bewith our consent for your investigacause of' time.off-from work. tion of such claims and your defense
of the " insured" against any such
F HIRED AUTO — LIMITED WORLDWIDE COV- suit", but only up to and included ERAGE— INDEMNITY BASIS within the limit described in ParaThe following replaces Subparagraph ( 5) in Para- graph C., Limits Off Insurance, of graph B. 7:,, Policy Period, Coverage Territory; SECTION II — COVERED AUTOS of SECTION IV — BUSINESS AUTO CONDI- LIABILITY COVERAGE, and not in TIONS: addition to such limit. Our duty to
make such payments ends when we
5) Anywhere in the world, except any country or have' used up the applicable limit of jurisdiction while any trade , sanction, em- insurance in payments for damages, bargo, or similar regulation Imposed` by the
settlements ordefense expenses.

United States of America applies to and ,prohibits the transaction of business with or b) This insurance is excess over any valid within such country or jurisdiction, for Cov- and collectible other insurance available ered Autos LiabilityCoverage for ariycovered to•the" insured" whether primary, excess, auto" that. you lease, hire, rent or borrow, contingent or on any other basis. without a",driverfor a period of 30 days or less: c) This insurance is not a substitute for reand that is nonan " auto" you lease, hire, rent quired or compulsory insurance in any or borrow from any ofyour "employees", country Outside the United States, its terpartners ( if you are a partnership), members ritories and possessions, Puerto Rico and if, you are a ' limited liability : company) or Canada. members of their' households.

COMMERCIAL AUTO
Vou . agree to . maintain all required or 2) In or on, yourcovered " auto'.. compulsory insurance in any such coun-.

This coverage applies only, iWthe event of a total
try. up 4o the minimum- limits required by, theft ofyour covered " auto'. local law. Your, failure to comply with
compulsory insurance requirements will No deductibles apply to this. Personal Property not invalidate the coverage afforded by coverage.
this policy, but we will;:only' be: liable to the K. AIRBAGS same extent we would have been liable. The following, is added to Paragraph B:'3'., Exclu, had you, complied with the compulsory insions, of SECTION' III PHYSICAL DAMAGE surance requirements. COVERAGE:
d) lt.is understood that we are( notan admit- Exclusion 3.a. does" not;apply to loss": to one or ted or authorized ' insurer outside ' the, moreairbags in a covered auto" y
awn that inUnited States of America, its territories flate due to a cause. other .than a cause oV loss" and possessions, Puerto Rico and, Can-' a set forth in Paragraphs A. 1. b. and Al.c., but ada. We assume no iesponsibility.forthe only:
furnishing of certificates of` Insurance, or a. If that auto''"is a covered," auto";for Comprefor compliance_ in any way with{ Fie. laws hensive Coverageunderthis policy; of other.countries relating to insurance.
b. The airbags are not_covered under any warG. WAIVER OF DEDUCTIBLE'- GLASS ranty; and The following is added to Paragraph D:,' Deducti:- c. The airbags were no_tintentionally inflated. ble, Of L SECTION III - PHYSICAL DAMAGE We will pay up, to a maximum of41, 000 for"any COVERAGE: one" loss".

No deductible fora covered " auto" will apply to L. . NOTICE ANDXNOWLEDGE^ OF ACCIDENT OR glass damage if the glass is repaired rather than LOSS
replaced.

The following Is added to Paragraph N2: a.; of
H. HIRED AUTO PHYSICAL DAMAGE- LOSS: OF SECTION IV- BUSINESS°AUTO. CONDITIONS:

USE- INCREASED LIMIT
Your duty give us or.our',authonzed, representaThe. following replaces the last,:sentence of Para- tive prompt notice of the " accident' or.?

COMMERCIAL AUTO
suchcon_tract Tlie walver apples orilyTotheli The unintentional omission of, or unintentional person Tor organiiapon designated in__sucl error in, any information given by you shall not co, tract?. prejudice your rights under this insurance. HowN. ' UNINTENTIONAL: ERRORS, OR OMISSIONS ever this provision does not affect our right to colThe following is added to Paragraph B, 2., C_anlett additional premium or exercise our right of cealment Misrepresentation;, , Or Fraud; of cancellation or non- renewal.

SECTI6N1V— BUSINESS AUTO CONDITIONS:

Page 4 of 4 ends

Includes copyrighted material of Insurance services' ONice, Inc. with its permission.

W_ WORkEIRSCOMPENsATION
A46
ONE TOWERSQUARE EMPLOYEIRSItABILITY POLICY
HARTF6kE;_' C;i 615183
ENDORSEMENT WC 99 03, 76 ( A)- 001
POLICY' NIJMBER: UB- 5J743745- 21- 47- G
WAIVER, OF OURU RIM47rlb RECOVERfROM OTHERS

ENDORSEMENT- CALIFORNIA

BLANKET WAIVER)
We have the right to recover. our
2 payments from anyone liable for, an injurycovered
r
by this policy. We will not
enforce our right against person or organization namen the ScheduleThe additional premium for this endorsement shall be 2. 00 % of the California workers" compensation premium.

Schedule
Person or Organization Job Description

ANY PERSON OR ORGANIZATION FOR ARCHITECTS
WHICH THE INSURED, HA:SI' AGRIEED.

BY WRITTEN CONTPACT , EXECUTED

PRIOR TO LOSS TO FURNISH THIS
WAIVER.

This endorsement changes the policy to it is attached and is effective on ilhe, date issued unless oth,erwise stated.

The information below is required only, when this endorsement is issued subsequent to. Preparation of the policy:),
Endorsement Effective Policy No. End6rsement; No.

Insured Pr6mium
Insurance Company Countersigne& by
DATEOFISSUE: 03- 19- 21 ST ASSIGN: Page 1, of 1
Name: Sagecrest Planning+ Environmental LLC
Policy tt: 6805J742889

COMMERCIAL GENERAL LIABILITY
THIS' ENDORSEMENT' CHANGES` THE POLICY. PLEASE READ IT CAREFULLY.

BLANKET ADDITIONAL INSURED
ARCHITECTS; ENGINEERS AND SURVEYORS)
This endorsement modifies insurance provided under the following:

COMMERCIAL GENERAL LIABILITY COVERAGE PART

1. The following isadded to SECTION 11'- WHO IS In. This insurance . does not apply to " bodily AN. INSURED: injury" or " property damage" caused by " your Any person or organization that, you agree in a
work" and included in the " productswritten contract' requiring Insurance telinclude as completedoperations hazard" unless the
an additionalinsured on this Coverage Part, but: written contract requiring insurance" specifically requires you to provide such
a. Only with respect to liability for." bodily injury", coverage for that additional insured, and then property,damage" or" personal injury" and the . insurance provided to the additional b. If, and only to the extent that, the injury or insured applies only to such " bodily injury" or damage is caused by acts. or omissions of property damage" that occurs before the end you, or your subcontractor iri performance of the period of time for which the " written of""your work" to which the;" written contractcontract requiring insurance" requires you to requiring insurance" applies, or, In connection provide such coverage or the end of the with premises, owned by or rented. to you. policyperiod, whichever is earlier..

The person: or organization doesr. not qualify as an 2: The . following is added to Paragraph 4. a, of additional insured: SECTION IV — COMMERCIAL GENERAL
c. With respectto the independent acts or
LIABILITY CONDITIONS:
omissions of such personor organization; or They insurance provided to the additional insured is. excess ' over any valid and collectible other J. For " bodily . injury'; ' property damage" or personal injury" for which such person or
insurance; whether primary, excess, contingent or
organization has assumed liability in a
on ; any other basis, that is available to the
additional insured for a loss we cover' However, if
contract or agreement.
you specifically agree in the " written contract
The insurance provided, to' suchadditional insured requiring insurance" that this insurance provided is limited as follows: to the additional insured under this Coverage Part must apply on a primary basis or a primary and
e. This insurance does not, applyon any basis to
non- contributory basis. this insurance is primary
any person or organization for . which' to other insurance available to the additional coverage as an additional' insured,: specifically insured which covers that person or organizations is added by another endorsement to this
as a naniedinsured for such loss, and we will not
Coverage Part, share with the other insurance, provided that:

If. This . insurance doesnot apply to the j) The " bodily injury" or " property damage" for rendering of or failure to render , any which coverage is sought occurs; and professional services".
2) The " personal injury" for which coverage is
g. In the event that the Limits of Insurance of thesought arises out of an offense committed; Coverage Part shown in the Declarations
exceed the limits of liability required. by. the
after you have signed that " written contract
written contract requiring Insurance"., the, requiring insurance". But this insurance provided Insura nce proJid ' ed to the additional iton"sured the additional insured still is excess over valid shall be limited to the limits of llabl6tyrequired and collectible other insurance, whether primary, by' that'" written contract requiring insurance". excess, contingent or on any other basis, that is This endorsement does not increase the available, to the additional insured when that limits of insurance described in Section III'— person or organization is an additional insured Limits Of Insurance. under any other insurance.

COMMERCIAL GENERAL LIABILITY

3. The following is added to, Paragraph, B., Transfer 4. The. following definition is' added to the Of Rights Of Recovery Against Others'- To Us. DEFINITIONS. Section:' of SECTION IV' — COMMERCIAL GENERAL
Written contract+ requiring insurances' means that LIABILITY CONDITIONS:
part of any Written contract'.under which you are
We waive any right. of . recovery we may have required. to Include' a_ person' or p_rganlzation as an against any, person^ or organization because of additional, insured on this Coverage Part, payments we make` for ' bodily injury". " property provided that the, " bodily..injuryand " property damage'. or " personal Injury" arising out of"' your damage" occurs and [ he personal Injury" is. work"' performed'. by you, or- on. your behalf, done` caused. by an`offense committed:
under, a " writtencontract. requiring insurance" with
that person or organization. We waive this right. a. After you have signed. that written? only where you have agreed to do so as part of b. While that pare of the written contract isl in the " written contract requiring insurance" with effect, and such person or organization signed by you
before,- and In effect when, the " bodily injury" or c. Before the end of the policy,_period. property damage" occurs, onthe" personal injury"
offense is committed
Page. 2. of 2 2015 The Travelers Indemnity Company. All rights. reserved. CG D3 81 09 15 Includes the copyrighted' material of Insurance' Services Office,_lnc., with its permission POLICY NUMBER`.' BA- 8R626254- 21- 47- G ISSUE DATE: 02- 01- 21 THIS ENDORSEMENT CHANGIESrTHE POLICY. PLEASE READ IT CAREFULLY.

DESIGNATED PERSON OR ORGANIZATION - NOTICE OF

CANCELLATION OR NONRENEWAL PROVIDED BY US
This endorsementomodifies insurance provided under the following:

ALL COVERAGE PARTS INCLUDED IN' THIS POLICY

SCHEDULE
CANCELLATION: Number of Days Notice: 30
WHEN. WE,.DO NOT RENEW( Nonrenewal): Number of Days Notice:
30 PERSON OR
ORGANIZATION: CITY OF SEAL BEACH
ADDRESS: 211 EIGHTH. STREET
SEAL BEACH CA 90740
PROVISIONS B. If we do not renew this policy for any legally A. ' If we cancel this policy for any legally permitted, permitted reason other than nonpayment of
reason other' than ` nonpayment of premium,. and a
premium, and a number of days is shown for
number of days is shown for Cancellation in the When We Do Not Renew ( Nonrenewal) in the Schedule above, we will. ' mad. notice of
Schedule above, we will mail notice of
cancellation to the person or organization shown
nonrenewal to the person or organization shown
in such Schedule. We will mall such notice to the
In such Schedule. We will mail such notice to the
address shown" in the Sehedule above' at least, the address shown in the Schedule above at least the number of days shown for Cancellation in such
number of days shown for When We Do Not
Schedule before the effective,date of cancellation.

Renew ( Nonrenewal) in such Schedule before the
effective date of nonrenewal.
1L T4 00 05' 19 2019 The Travelers Indemnity Company., All rights reserved. Page 1 of 1 POLICY NUMBER: 680- 55742889- 20- 47 ISSUE DATE: 02/ 01/ 2021 THIS ENDORSEMENT CHANGES THE POLICY: PLEASE READ IT CAREFULLY.

DESIGNATED_ ENTITY NOTICE, OF
CAN CELLATION/ NONREN. EWAL PROVIDED BY US
This, endorsementmodifies insurance-provided under the following:

ALL COVERAGE: PARTS INCLUDED IN THIS POLICY

SCHEDULE
CANCELLATION: Num ber;ofDays Notice•of Cancellation: 30 NONRENEWAL: Number' of.DaysiNotice of Nonrenewal: 30

PERSON OR
ORGANIZATION: CITY OF SEAL BEACH
ADDRESS: 211 EIGHTH STREET
SEAL BEACH CA 90740
PROVISIONS:

B. If we decide to not renew this policy for.any statuA. If we canceRthis policy for any statutorily permit- torily permitted reason, and. i number' of days is ted reason other than nonpayment of premium,
shown' nonrenewal in tne schedule above, we'.
and a number of;days is shown for cancellation in will mail notice of the°nonrenewal tatfie' person, or the schedule above, We will mail notice of cancel- organization : shown in the schedule . above. , We lation to the person or organization shown in the Will mail such notice to the address shown in the schedule above. We will mail such notice' to the schedule above, at ` least the' number, o'f aays address snown, in the schedule above at least the shown for nonrenewal in the schedule above° be= number pf days shown for cancellation in the fore the expiration date. scheduleabove before the effective date of cancellation.

IL T4 00' 12 09 2009 The:Travelers Indemnity Company Page 1 of 1

WORKERS COMPENSATION
TRAVELERS? AND
CNETovreR sQuaxE

EMPLOYERS LIABILITY POLICY
xagTFDxD cT 06163 ENDORSEMENT WC 99 06 R3 ( 00) - oo6
POLICY NUMBER: IIB- SJ743745- 20- 47- G

NOTICE OF CANCELLATION

TO DESIGNATED PERSONS' OR ORGANIZATIONS
The following', is added to PART SIX—' CONDITIONS :

Notice Of Cancellation' To Designated Persons Or Organizations If we cancel this, policy for reason other`•than snon- payment,of premium by you, we will provide notice of such cancellation to; each person or organization designated in the Schedule below. We will mail or deliver such notice to each person or organization at Its listed address at least the number of days shown for that person or organization4before the cancellation. is to take effect.

You are responsible for providingus• with the information necessary to accurately complete the Schedule below.

If we cannotmail or delivery notice of-cancellation' to a, designated person or organization because the name or address of, such designated person or organization provided, to us is not accurate or complete, we have no responsibility to mail, deliver or btherwise, notifysuch designated' person or organization of the cancellation.

SCHEDULE
Name and Address of Designated Persons or Organizations: Number of Days Notice

CITY OF SEAL BEACH
211 EIGHTH STREET 30
SEAL BEACH CA 90740
All other terms and conditions of this policy remain unchanged.

This endorsement' changes the policy to which it is attached and is, effective on the date issued unless otherwise stated„
Theinformation below is,required only when this endorsement is issued subsequent to preparation of the policy:)
Endorsement Effective Policy No. Endorsement No.

Insured Premium $
Insurance Company Countersigned by
DATE OF ISSUE:. 02- 01- 21 ST ASSIGN: Page 1 of 1
2013 The Travelers, odemnity Company.. All rights reserved.

PROFESSIONAL SERVICES AGREEMENT
for
Temporary Planning Staff Services
between
City of Seal Beach
211 - 8th Street
Seal Beach, CA 90740
Sagecrest Planning + Environmental
2400 E. Katella Ave., Suite 800
Anaheim, CA 92806
714- 783- 1863
This Professional Service Agreement ("the Agreement") is made as of February 5, 2021 the " Effective Date"), by and between Sagecrest Planning + Environmental Consultant"), a California Corporation, and the City of Seal Beach (" City"), a California charter city, ( collectively, " the Parties").
2305080v3 [
11/ 2019 rev.]

RECITALS
A. City desires certain professional services.

B. Pursuant to the authority provided by its City Charter and Seal Beach Municipal Code § 3. 20. 025( C), City desires to engage Consultant to provide professional services in the manner set forth herein and more fully described in Section 1. 0.

C. Consultant represents that the principal members of its firm are qualified professionals and are fully qualified to perform the services contemplated by this Agreement in a good and professional manner; and it desires to perform such services as provided herein.

NOW THEREFORE, in consideration of the Parties' performance of the promises, covenants, and conditions stated herein, the Parties hereto agree as follows.

AGREEMENT

1. 0 Scope of Services

1. 1. Consultant shall provide those services ( collectively " Services") set forth in the " Scope of Services" attached hereto as Exhibit A and incorporated herein by this reference. To the extent that there is any conflict between Exhibit A and this Agreement, this Agreement shall control.

1. 3. In performing this Agreement, Consultant shall comply with all applicable provisions of federal, state, and local law.

1. 4. As a material inducement to City to enter into this Agreement, Consultant hereby represents that it has the experience necessary to undertake the Services to be provided. In light of such status and experience, Consultant hereby covenants that it shall follow the customary professional standards in performing all Services. The City relies upon the skill of Consultant, and Consultant' s staff, if any, to do and perform the Services in a skillful, competent, and professional manner, and Consultant and Consultant' s staff, shall perform the Services in such manner. Consultant shall, at all times, meet or exceed any and all applicable professional standards of care. The acceptance of Consultant' s work by the City shall not operate as a release of Consultant from such standard of care and workmanship.
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1. 5. Consultant will not be compensated for any work performed not specked in the Scope of Services unless the City authorizes such work in advance and in writing. The City Manager may authorize extra work to fund unforeseen conditions up to the amount approved at the time of award by the City Council. Payment for additional work in excess of this amount requires prior City Council authorization.

2. 0 Term

2. 1. The term of this Agreement shall commence on February 5, 2021 and shall remain in full force and effect until 11: 59 p. m. on February 5, 2022, unless sooner terminated as provided in Section 5. 0 of this Agreement.

3. 0 Consultant' s Compensation

3. 1. City will pay Consultant in accordance with the hourly rates shown on the fee schedule set forth in Exhibit A for the Services but in no event will the City pay more than the total not -to -exceed amount of $30, 000. 00 ( thirty thousand dollars) for the Original Term.

4. 0 Method of Payment

4. 1. Consultant shall submit to City monthly invoices for all Services rendered pursuant to this Agreement. Such invoices shall be submitted within 15 days of the end of the month during which the Services were rendered and shall describe in detail the Services rendered during the period, the days worked, number of hours worked, the hourly rates charged, and the Services performed for each day in the period. City will pay Consultant within 30 days of receiving Consultant' s invoice. City will not withhold any applicable federal or state payroll and other required taxes, or other authorized deductions from payments made to Consultant.

4. 2. Upon 24- hour notice from City, Consultant shall allow City or City' s agents or representatives to inspect at Consultant' s offices during reasonable business hours all records, invoices, timecards, cost control sheets and other records maintained by Consultant in connection with this Agreement. City' s rights 3of18
under this Section 4. 2 shall survive for three ( 3) years following the termination of this Agreement.

6.0 Termination

5. 2. This Agreement may be terminated by City upon 10 days' notice to Consultant if Consultant fails to provide satisfactory evidence of renewal or replacement of comprehensive general liability insurance as required by this Agreement at least 20 days before the expiration date of the previous policy.

6. 0 Party Representatives

6. 1. The City Manager is the City's representative for purposes of this Agreement.

6. 2. Amy Vazquez is the Consultant' s primary representative for purposes of this Agreement. Amy Vazquez shall be responsible during the term of this Agreement for directing all activities of Consultant and devoting sufficient time to personally supervise the Services hereunder. Consultant may not change its representative without the prior written approval of City, which approval shall not be unreasonably withheld.

7. 0 Notices

7. 1. All notices permitted or required under this Agreement shall be deemed made when personally delivered or when mailed 48 hours after deposit in the United States Mail, first class postage prepaid and addressed to the party at the following addresses:

To City: City of Seal Beach
211 - 8th Street
Seal Beach, California 90740
Attn: City Manager
To Consultant: Sagecrest Planning + Environmental
2400 E. Katella Ave., Suite 800
Anaheim, California 92806
Attn: Amy Vazquez, President

7. 2. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service.
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8. 0 Independent Contractor

8. 1. Consultant is an independent contractor and not an employee of the City. All work or other Services provided pursuant to this Agreement shall be performed by Consultant or by Consultant' s employees or other personnel under Consultant' s supervision, and Consultant and all of Consultant' s personnel shall possess the qualifications, permits, and licenses required by State and local law to perform such Services, including, without limitation, a City of Seal Beach business license as required by the Seal Beach Municipal Code. Consultant will determine the means, methods, and details by which Consultant' s personnel will perform the Services. Consultant shall be solely responsible for the satisfactory work performance of all personnel engaged in performing the Services and compliance with the customary professional standards.

8. 2. All of Consultant' s employees and other personnel performing any of the Services under this Agreement on behalf of Consultant shall also not be employees of City and shall at all times be under Consultant' s exclusive direction and control. Consultant and Consultant' s personnel shall not supervise any of City' s employees; and City's employees shall not supervise Consultant's personnel. Consultant' s personnel shall not wear or display any City uniform, badge, identification number, or other information identifying such individual as an employee of City; and Consultant' s personnel shall not use any City e- mail address or City telephone number in the performance of any of the Services under this Agreement. Consultant shall acquire and maintain at its sole cost and expense such vehicles, equipment and supplies as Consultant's personnel require to perform any of the Services required by this Agreement. Consultant shall perform all Services off of City premises at locations of Consultant' s choice, except as otherwise may from time to time be necessary in order for Consultant' s personnel to receive projects from City, review plans on file at City, pick up or deliver any work product related to Consultant' s performance of any Services under this Agreement, or as may be necessary to inspect or visit City locations and/ or private property to perform such Services. City may make a computer available to Consultant from time to time for Consultant' s personnel to obtain information about or to check on the status of projects pertaining to the Services under this Agreement.

8. 3. Consultant shall be responsible for and pay all wages, salaries, benefits and other amounts due to Consultant' s personnel in connection with their performance of any Services under this Agreement and as required by law.

Consultant shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: Social Security taxes, other retirement or pension benefits, income tax withholding, unemployment insurance, disability insurance, and workers' compensation insurance. Notwithstanding any other agency, State, or federal policy, rule, regulation, statute or ordinance to the contrary, Consultant and any of its officers, employees, agents, and 5of18
subcontractors providing any of the Services under this Agreement shall not become entitled to, and hereby waive any claims to, any wages, salaries, compensation, benefit or any incident of employment by City, including but not limited to, eligibility to enroll in, or reinstate to membership in, the California Public Employees Retirement System (" PERS") as an employee of City, and entitlement to any contribution to be paid by City for employer contributions or employee contributions for PERS benefits.

8. 4. Consultant shall indemnify and hold harmless City and its elected officials, officers, employees, servants, designated volunteers, and agents serving as independent contractors in the role of City officials, from any and all liability, damages, claims, costs and expenses of any nature to the extent arising from, caused by, or relating to Consultant' s personnel practices. or to the extent arising from, caused by or relating to the violation of any of the provisions of this Section 8.0. In addition to all other remedies available under law, City shall have the right to offset against the amount of any fees due to Consultant under this Agreement any amount due to City from Consultant as a result of Consultant' s failure to promptly pay to City any reimbursement or indemnification arising under this Section. This duty of indemnification is in addition to Consultant' s duty to defend, indemnify and hold harmless as set forth in any other provision of this Agreement.

9. 0 PERS Compliance and Indemnification

9. 1. General Requirements. The Parties acknowledge that City is a local agency member of PERS, and as such has certain pension reporting and contribution obligations to PERS on behalf of qualifying employees. Consultant agrees that, in providing its employees and any other personnel to City to perform any work or other Services under this Agreement, Consultant shall assure compliance with the Public Employees' Retirement Law, commencing at Government Code § 20000, the regulations of PERS, and the Public Employees' Pension Reform Act of 2013, as amended. Without limitation to the foregoing, Consultant shall assure compliance with regard to personnel who have active or inactive membership in PERS and to those who are retired annuitants and in performing this Agreement shall not assign or utilize any of its personnel in a manner that will cause City to be in violation of the applicable retirement laws and regulations.

9. 2. Indemnification. Consultant shall defend ( with legal counsel approved by City, whose approval shall not be unreasonably withheld), indemnify and hold harmless City, and its City and its elected officials, officers, employees, servants, designated volunteers, and agents serving as independent contractors in the role of City officials, from any and all liability, damages, claims, costs and expenses of any nature to the extent arising from, caused by, or relating to Consultant' s violation of any provisions of this Section 9. 0. This duty of 6of18
indemnification is in addition to Consultant's duty to defend, indemnify and hold harmless as set forth in any other provision of this Agreement.

10. 0 Confidentiality
Consultant covenants that all data, documents, discussion, or other information developed or received by Consultant or provided for performance of this Agreement are deemed confidential and shall not be disclosed by Consultant without prior written authorization by City. City shall grant such authorization if applicable law requires disclosure. All City data shall be returned to City upon the termination of this Agreement. Consultant' s covenant under this Section shall survive the termination of this Agreement.

11. 0 Subcontractors
No portion of this Agreement shall be subcontracted without the prior written approval of the City. Consultant is fully responsible to City for the performance of any and all subcontractors.

12. 0 Assignment
Consultant shall not assign or transfer any interest in this Agreement whether by assignment or novation, without the prior written consent of City. Any purported assignment without such consent shall be void and without effect.

13. 0 Inspection and Audit of Records
Consultant shall maintain complete and accurate records with respect to all Services and other matters covered under this Agreement, including but expressly not limited to, all Services performed, salaries, wages, invoices, timecards, cost control sheets, costs, expenses, receipts and other records with respect to this Agreement. Consultant shall maintain adequate records on the Services provided in sufficient detail to permit an evaluation of all Services in connection therewith. All such records shall be clearly identified and readily accessible. At all times during regular business hours, Consultant shall provide City with free access to such records, and the right to examine and audit the same and to make copies and transcripts as City deems necessary, and shall allow inspection of all program data, information, documents, proceedings and activities and all other matters related to the performance of the Services under this Agreement. Consultant shall retain all financial and program service records and all other records related to the Services and performance of this Agreement for at least three ( 3) years after expiration, termination or final payment under this Agreement, whichever occurs later. City's rights under this Section 13. 0 shall survive for three ( 3) years after expiration, termination or final payment under this Agreement, whichever occurs later.
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14. 0 Safety Requirements
All work performed under this Agreement shall be performed in such a manner as to provide safety to the public and to meet or exceed the safety standards outlined by CAL OSHA. The City may issue restraint or cease and desist orders to Consultant when unsafe or harmful acts are observed or reported relative to the performance of the Services. Consultant shall maintain the work sites free of hazards to persons and property resulting from its operations. Consultant shall immediately report to the City any hazardous condition noted by Contractor.

15. 0 Insurance

15. 1. Consultant shall not commence work under this Agreement until it has provided evidence satisfactory to the City that Consultant has secured all insurance required under this Section. Consultant shall furnish City with original certificates of insurance and endorsements effecting coverage required by this Agreement on forms satisfactory to the City. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf and shall be on forms provided by the City if requested. All certificates and endorsements shall be received and approved by the City before work commences. The City reserves the right to require complete, certified copies of all required insurance policies, at any time.

15. 2. Consultant shall, at its expense, procure and maintain for the duration of the Agreement, insurance against claims for injuries to persons or damages to property that may arise from or in connection with the performance of this Agreement. Insurance is to be placed with insurers with a current A.M.

Best' s rating no less than A:VIII, licensed to do business in California, and satisfactory to the City. Coverage shall be at least as broad as the latest version of the following: ( 1) General Liability: Insurance Services Office Commercial General Liability coverage ( occurrence form CG 0001); ( 2) Automobile Liability: Insurance Services Office Business Auto Coverage form number CA 0001, code 1 ( any auto); ( 3) Workers' Compensation and Employer' s Liability coverages; and ( 4) if required by the City, Professional Liability coverage ( or Errors and Omissions coverage). Consultant shall maintain limits no less than: ( 1) General Liability: $ 2, 000, 000 per occurrence for bodily injury, personal injury and property damage and if Commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this Agreement/ location or the general aggregate limit shall be twice the required occurrence limit; ( 2) Automobile Liability: $ 1, 000, 000 per accident for bodily injury and property damage; ( 3) Workers' Compensation in the amount required by law and Employer's Liability: $ 1, 000, 000 per accident and in the aggregate for bodily injury or disease; and ( 4) Professional Liability ( or Errors and Omissions Liability, as appropriate): $ 1, 000, 000 per claim/ aggregate, and 8 of 18
if a " claims made" policy is provided, then the policy shall be endorsed to provide an extended reporting period of not less than three years.

15. 3. The insurance policies shall contain the following provisions, or Consultant shall provide endorsements on forms supplied or approved by the City to state: ( 1) coverage shall not be suspended, voided, reduced or canceled except after 30 days prior written notice by certified mail, return receipt requested, has been given to the City; ( 2) any failure to comply with reporting or other provisions of the policies, including breaches of warranties, shall not affect coverage provided to the City, its directors, officials, officers, ( 3) coverage shall be primary insurance as respects the City, its directors, officials, officers, employees, agents and volunteers, or if excess, shall stand in an unbroken chain of coverage excess of the Consultant' s scheduled underlying coverage and that any insurance or self-insurance maintained by the City, its directors, officials, officers, employees, agents and volunteers shall be excess of the Consultant' s insurance and shall not be called upon to contribute with it; ( 4) for general liability insurance, that the City, its directors, officials, officers, employees, agents and volunteers shall be covered as additional insureds with respect to the services or operations performed by or on behalf of the Consultant, including materials, parts or equipment furnished in connection with such work; and ( 5) for automobile liability, that the City, its directors, officials, officers, employees, agents and volunteers shall be covered as additional insureds with respect to the ownership, operation, maintenance, use, loading or unloading of any auto owned, leased, hired or borrowed by the Consultant or for which the Consultant is responsible.

15. 4. All insurance required by this Section shall contain standard separation of insureds provisions and shall not contain any special limitations on the scope of protection afforded to the City, its directors, officials, officers, employees, agents, and volunteers.

15. 5. Any deductibles or self-insured retentions shall be declared to and approved by the City. Consultant guarantees that, at the option of the City, either:
1) the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its directors, officials, officers, employees, agents, and volunteers; or ( 2) the Consultant shall procure a bond guaranteeing payment of losses and related investigation costs, claims and administrative and defense expenses.

16. 0
Indemnification, Hold Harmless, and Duty to Defend
Consultant and the City agree that the City, its elected officials, officers, attorneys, agents, employees, designated volunteers, successors, assigns and those City agents serving as independent contractors in the role of City officials collectively " Indemnitees" in this Section 16.0) should, to the fullest extent permitted by law, be fully protected from any loss, injury, damage, claim, liability, lawsuit, cost, expense, attorneys' fees, litigation costs, defense costs, court costs and/ or any other cost arising out of or in any way related to the performance of this Agreement. Accordingly, the provisions of this indemnity provision are intended by the Parties to be interpreted and construed to provide the fullest protection possible under the law to the City and all other Indemnitees.

Consultant acknowledges that the City would not have entered into this Agreement in the absence of the commitment of Consultant to indemnify and protect the City and the other Indemnitees, as set forth in this Agreement.

16. 1. Indemnity for Professional Services. To the fullest extent permitted by law, Consultant shall, at its sole cost and expense, defend, indemnify and hold harmless the City, its elected officials, officers, attorneys, agents, employees, designated volunteers, successors, assigns and those City agents serving as independent contractors in the role of City officials ( collectively " Indemnitees" in this Section 16. 0), from and against any and all damages, costs, expenses, liabilities, claims, demands, causes of action, proceedings, judgments, penalties, liens, and losses of any nature whatsoever, including fees of accountants and other professionals, and all costs associated therewith, and reimbursement of attorneys' fees and costs of defense ( collectively " Claims"), whether actual, alleged or threatened, which arise out of, pertain to, or relate to, in whole or in part, the negligence, recklessness or willful misconduct of Consultant, and/ or its officers, agents, servants, employees, subcontractors, contractors or their officers, agents, servants or employees ( or any entity or individual that Consultant shall bear the legal liability thereof) in the performance of professional services under this Agreement. Consultant shall defend the Indemnitees in any action or actions filed in connection with any Claims with counsel of the Indemnitees' choice, and shall pay all costs and expenses, including all attorneys' fees and experts' costs actually incurred in connection with such defense. Consultant shall reimburse the Indemnitees for any and all legal expenses and costs incurred by the Indemnitees in connection therewith.

16. 2. Other Indemnitees. Other than in the performance of professional services, and to the fullest extent permitted by law, Consultant shall, at its sole cost and expense, protect, defend, hold harmless and indemnify the Indemnitees from and against any and all damages, costs, expenses, liabilities, claims, demands, causes of action, proceedings, judgments, penalties, liens and losses of any nature whatsoever, including fees of accountants, attorneys and other professionals, and all costs associated therewith, and the payment of all consequential damages ( collectively " Damages"), in law or equity, whether actual, alleged or threatened, which arise out of, pertain to, or relate to the acts or omissions of Consultant, its officers, agents, servants, employees, subcontractors, materialmen, suppliers, or contractors, or their officers, agents, servants or employees ( or any entity or individual that Consultant shall bear the legal liability thereof) in the performance of this Agreement, including the Indemnitees' active or passive negligence, except for Damages arising from the sole negligence or willful misconduct of the Indemnitees, as determined by final arbitration or court decision or by the agreement of the Parties. Consultant shall 10 of 18
defend the Indemnitees in any action or actions filed in connection with any Damages with counsel of the Indemnitees' choice, and shall pay all costs and expenses, including all attorneys' fees and experts' costs actually incurred in connection with such defense. Consultant shall reimburse the Indemnitees for any and all legal expenses and costs incurred by the Indemnitees in connection therewith.

16. 3. Subcontractor Indemnification. Consultant shall obtain executed indemnity agreements with provisions identical to those in this Section 16. 0 from each and every subcontractor or any other person or entity involved by, for, with or on behalf of Consultant in the performance of this Agreement. If Consultant fails to obtain such indemnities, Consultant shall be fully responsible and indemnify, hold harmless and defend the Indemnitees from and against any and all Claims in law or equity, whether actual, alleged or threatened, which arise out of, are claimed to arise out of, pertain to, or relate to the acts or omissions of Consultant' s subcontractor, its officers, agents, servants, employees, subcontractors, materialmen, contractors or their officers, agents, servants or employees ( or any entity or individual that Consultant' s subcontractor shall bear the legal liability thereof) in the performance of this Agreement, including the Indemnitees' active or passive negligence, except for Claims or Damages arising from the sole negligence or willful misconduct of the Indemnitees, as determined by final arbitration or court decision or by the agreement of the Parties.

16. 4. The obligations of Consultant under this or any other provision of this Agreement shall not be limited by the provisions of any workers' compensation act or similar act. Consultant expressly waives any statutory immunity under such statutes or laws as to the Indemnitees. Consultant' s indemnity obligation set forth in this Section 16. 0 shall not be limited by the limits of any policies of insurance required or provided by Consultant pursuant to this Agreement.

16. 5. Consultant' s covenants under this Section 16. 0 shall survive the expiration or termination of this Agreement.

17. 0 Equal Opportunity
Consultant affirmatively represents that it is an equal opportunity employer. Consultant shall not discriminate against any subcontractor, employee, or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex, sexual orientation, or age. Such non- discrimination includes, but is not limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff, or termination. 11 of 18

18. 0 Labor Certification
By its signature hereunder, Consultant certifies that it is aware of the provisions of Section 3700 of the California Labor Code that require every employer to be insured against liability for Workers' Compensation or to undertake self-insurance in accordance with the provisions of that Code, and agrees to comply with such provisions before commencing the performance of the Services.

19. 0 Prevailing Wage and Payroll Records
If this Agreement calls for services that, in whole or in part, constitute " public works" as defined in the California Labor Code, then Consultant shall comply in all respects with all applicable provisions of the California Labor Code, including those set forth in Exhibit B, attached hereto and incorporated by reference herein.

20. 0 Entire Agreement
This Agreement contains the entire agreement of the Parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings, or agreements. This Agreement may only be modified by a writing signed by both Parties.

21. 0 Severability
The invalidity in whole or in part of any provisions of this Agreement shall not void or affect the validity of the other provisions of this Agreement.

22. 0 Governing Law
This Agreement shall be governed by and construed in accordance with the laws of the State of California.

23. 0 No Third Party Rights
No third party shall be deemed to have any rights hereunder against either party as a result of this Agreement.

24. 0 Waiver
No waiver of any default shall constitute a waiver of any other default or breach, whether of the same or other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by a party shall give the other party any contractual rights by custom, estoppel, or otherwise.

25. 0 Prohibited Interests; Conflict of Interest
12 of 18

25. 1. Consultant covenants that it presently has no interest and shall not acquire any interest, direct or indirect, which may be affected by the Services, or which would conflict in any manner with the performance of the Services.

Consultant further covenants that, in performance of this Agreement, no person having any such interest shall be employed by it. Furthermore, Consultant shall avoid the appearance of having any interest, which would conflict in any manner with the performance of the Services. Consultant shall not accept any employment or representation during the term of this Agreement which is or may likely make Consultant " financially interested" ( as provided in California Government Code §§ 1090 and 87100) in any decision made by City on any matter in connection with which Consultant has been retained.

25. 3. Consultant warrants and maintains that it has no knowledge that any officer or employee of City has any interest, whether contractual, non - contractual, financial, proprietary, or otherwise, in this transaction or in the business of Consultant, and that if any such interest comes to the knowledge of Consultant at any time during the term of this Agreement, Consultant shall immediately make a complete, written disclosure of such interest to City, even if such interest would not be deemed a prohibited " conflict of interest" under applicable laws as described in this subsection

26. 0 Attorneys' Fees
If either party commences an action against the other party, either legal, administrative or otherwise, arising out of or in connection with this Agreement, the prevailing party in such litigation shall be entitled to have and recover from the losing party all of its attorneys' fees and other costs incurred in connection therewith.

27. 0 Exhibits
All exhibits referenced in this Agreement are hereby incorporated into the Agreement as if set forth in full herein. In the event of any material discrepancy 13 of 18
between the terms of any exhibit so incorporated and the terms of this Agreement, the terms of this Agreement shall control.

28.0 Corporate Authority
The person executing this Agreement on behalf of Consultant warrants that he or she is duly authorized to execute this Agreement on behalf of said party and that by his or her execution, the Consultant is formally bound to the provisions of this Agreement.

IN WITNESS WHEREOF, the Parties hereto, through their respective authorized representatives have executed this Agreement as of the date and year first above written.

CITY OF SEAL BEACH
0 CONSULTANT: Sagecrest Planning +
n ."A A ^ _ . _ Environmental, a California Corporation 17 Jill R. Ingram, City MarkQbr By v _
Amy Vaoiez, esit t
st:.( Please note, two signatures required
corPorations Pursuant to Calif
Approved
r s , orporations Code Section 313 from
ach of the following categories: (i) the
D. Har ,, chairperson of the board, the president
ul ' ` or any vice president, and ( ii) the
secretary, any assistant secretary, the
F
chief financial officer or any assistant
treasurer of such corporation.)
A. Steele, City Attorney
14 of 18
r; 40R
44J 3 2020

EXHIBIT A
Consultant' s Proposal
15 of 18

SAGECREST
planning+ environmental
CRY of Sod Oaach i
2400L' Katella A,ve.,; SuiteB00.

Amy',Vazquez; President
Anaheim, CA. 92806 avazquez@sagecrestplanning: com
714) 783- 1863 x 705
ww w.sa eec r estp
ism..
ago
SAG/EC RRE\ST
planning+ environmentaI
January 22, 2021
Les Johnson, Director
Department.of Community Development
211 Eighth Street
Seal Beach, CA 90740
Subject: PROPOSAL FOR ON- CALL PLANNING SERVICES
Mr. Johnson:

Thank you for the opportunity to submit a proposal to the City of Seal Beach for on- call planning services. The team at Sagecrest Planning+ Environmental,,( Sagecrest) provides planning and environmental review services to local jurisdictions throughout California. Our planners have expertise in discretionary case processing, preparation and review of zoning codes, specific plans, general plans, and other planning documents, code compliance, project management, and environmental analysis, documentation, and review. Our planners have all worked in various positions as planning staff for local jurisdictions, coordinating interdepartmental review of projects and providing peer review services to applicants.

Sagecrest delivers the highest level of service with proactive solutions, ongoing communication, and dependable coordination. We adapt our services to the: City' s needs and complement its in- house resources as an extension of City staff. Our planners are trained on the latest planning, zoning and environmental legislation and case law and are adept at using public counter permit tracking' and GIS systems.

Sagecrest is a local Southern California- based firm with corporate offices in Anaheim. Our clients are located in Orange, San Diego, Riverside, San Bernardino and Los Angeles Counties, which allows us to be accessible to our clients ata moment' s notice. We are accustomed to being proactive and anticipating the needs of our clients and recommending practical solutions to complex planning issues. In addition, due to our efficient structure, we' are competitive on price while adhering to stringent budgets and schedules.

Sagecrest looks forward to your favorable review of our firm' s proposal. For additional information or to further discuss our qualifications, please contact me directly at the phone numbers or email below.

Sincerely,
v16
Amy Vazquez, President
Office: ( 714) 783- 1863 x705
Mobile: ( 714) 914-5605
E- mail: [email protected]
2400 E. Katella Ave. • Suite 800 • Anaheim; CA 92806
City of Seal Beach
On- Call Planning

SAGECREST
plan ning+ environmental
Firm Background and. Relevant. Experience
Sagecrest is an.award winning, full service, professional planning firm providing on- call planning, land use, and environmental, consulting to public agencies, throughout California. The American Planning Association ( APA) recently awarded Sagecrest the 2018 Emerging Planning& Design Firm bythe Orange Section and the 2019 Grassroots Initiative Award by the CA State Chapter and the Orange Section. With considerable experience in Southern California, the Sagecrest team has strong working relationships with key staff,, applicants and, public officials. Our mission is to provide outstanding service at competitive rates to the clients and communities we serve while adding value and making a positive impression with each' assignment. Because of ourextensive experience and focus on providing planning staff to publicageneies, Sagecrest' is uniquely qualified to deliver high- quality on- call services. We have assembled anexceptional team of experienced planners. Our staff has professional planning experience in.fhe public sector, giving them a_ unique and thorough understanding of the processes and;the challenges faced by; planning departments. We employ highly qualified and experienced professionals whose skills, qualifications and previous responsibilities are a strong match to the needs of the City of Seal Beach. We ensure this high level of quality by employing the following practices:

City contract managers interview proposed staff before they are assigned.

Our planners have experience working for public agencies prior to working with us, allowing them to integrate seamlessly into department operations.

We know that' our reputation is our most valuable asset. With that in mind, we do not overcommit our staff and only accept work that our staff has the qualifications to perform.

Our staff maintains ongoing, professional development and we provide extensive training in project management, land use. law, California Environmental Quality Act( CEQA), writing and public presentation skills.

We are based in Anaheim, maintain regular office hours, and are accessible as needed.

We reliably meet departmental standards, including: deadlines, quality of work products, courtesy and accessibility, accuracy of reports and information given to the public, and responsiveness.

We ensure we have a clear understanding'of expectations and maintain consistent communication with our clients.

We are committed to providing services that are cost effective while maintaining high standards of quality and productivity.

SagecresVs>management team.has over 50 years of combined experience in a broad range of land use planning and development activities, with a specific focus on CEQA/ NEPA compliance. In addition to this experience as environmental professionals, the Sagecrest team has extensive experience as municipal agency. staff, which glves, us insight,int& the interdisciplinary coordination required to deliverthe environmental review for the' Proposed Project that other private consulting firms may not have.

Sagecrest is uniquely positloned to integratethe project management of the environmental review process with the Applicant, theirarchitect, civil engineer, technical consultants, and City staff. One of our unique strengths is` the ability to understand the project delivery process from inception to complefiom.

Page 1 ends

A:: City of Seal Beach
L_' On- Calf Planning

SAGECREST
planning+ environmental
Experience
The,following is a summary ofthe.relevant•projects and tasks completed in the last five years by Sagecrest' and the former Environmental Advisors:

Provided on- call planning services to over 35 Southern Californiacities Drafted;specific plans and zoning code ordinances
Facilitated several community and public outreach meetings Drafted several CEQA streamlining checklists, Initial Studies, (Mitigated) Negative Declarations, EIRs, Mitigation Monitoring and Reporting Programs, and all required CEQA notices.

Coordinated the project teams of architects, civil engineers, and technical specialists Completed land development applications and manage the iterative review process with City staff
Negotiated development. agreements on behalf of city clients Current Clients/ Projects
I
TYPe of
Term Agen / Client
Eontract Co_nta_ct
ProjecQblescrii
On- Call Steve Franks
August
City of Villa Planning and ( 714) 998. 1500
On- call
g m
planning
r
a
2017-
Park Building sfranks@vlllapark. org
Planning Manager and
present
Services
Senior plan check services
March
City of Aliso
On- Call Omar Dadabnoy
2019- Planning 949- 9252500 Orr-call planning services
present
Viejo
Services Odadabhoy@AVCity. org
September On- Call Jennifer Le
City:of Costa
2017- Planning 714- 754- 5617 On- call planning services present
Mesa
Services Jennifer. le@costamesaca. gov
MarchCity of
On- Call Aldo Schindler
2019- Planning 714- 331- 1009 On- call planning services Downey
present Services aldo-Schindler@sbcglobal. net
June 2019
City of On=Call Ken Robertson
Hermosa Planning 310- 318- 0242 On- call planning services present Beach. Services krobertson@hermosabch. org
November On- Call Pechous, Jim
2017- June.

Beach
f Laguna
Planning 949). 497=3311 On- call planning services
2019
Beach
Services jpechous@lagunabeachcity. net
August. On Call Gayle Ackerman
2017
City of Lake;
Planning 949- 461- 3463 On- call planning services
present
Forest
Services Gackerman@lakeforestca. gov
August City-of On- Call Jim Campbell On- call entitlement 2017- Newport, Planning 949, 644. 3210 processing service at the present Beach Services ampbell@newportbeachca. gov Senior Planner level February On- Call
Jonathan Borrego, AICP
City of Development Services Director
2019- Planning On- call planning services
Oceanside jborrego@cLoceanside. ca. us
present Services 760- 435- 4373

Page 1 ends

City ofiSeal Beach
Cln- Call Planning

SAGECREST
pia nning+ environmental
Term Agency/ Client Typof
P.rojeCt, DeScription
Contract Contact
Mary Kopaskie- Brown, City
August
City of
On- Call Planner
2019-
Riverside
Planning 951) 826- 5108 On- call planning:..services
present Services mkopaskie- brown
@riversideca. gov
On- Call
Wayne Morrell
July 2017- City of Santa 562) 868- 0511
present Fe Springs Planningwmorrell@santafesprings. org On- call planningservices
Services
March On- Call Jarad Hildenbrand
2019- Cityto Planning 714- 379- 9222 On- call planning:. services present
Stanton
Services 1Hildenbrand@ci. stanton. ca. us
September On- Call Zoning Matt Foulkes
2017-
City of Administrator 714- 738-6878On- call planningservice of a present
Fullerton
Services MFoulkes@cityoffullerton. com
Zoning Administrator
August Planning Nate Farnsworth
City of Yorba Minutes clerk for Planning
2017- Services, 714- 961- 7131
present
Linda
Minutes Clerk nfarnsworth@yorbalindaca. gov
Commission hearings
September Planning
William Crouch Minutes clerk for Planning
Septe SepteCity of Orange Services,
714) 744- 7220 Commission hearings and
2018-
cdinfo@cityoforange. org Design Review Committee
present Minutes Clerk
cdinfo@cityoforange. org>; I meetings

Page 14 ends

City of Seal Beach
On- Call Planning

SAGECREST
pla nr ing+ environmenial
Work Plan and Approach
Sagecrest' s unique approach to bestperform on-call planning services, including representative tasks as appropriate for the class title assigned, is described below:

1. Review, analyze and process Sagecrest provides entitlement processing services for discretionary cases consistent development applications and management of City- initiated with City codes, policies and projects that may require general plan amendments, specific standards. Utilize City plans, reclassifications, Conditional Use Permits, subdivision maps, electronic and paper files to variances, design review, annexations, and other discretionary and research previous and/ or administrative actions. Sagecrest planners are skilled project related cases. managers; who provide excellent customer service to the applicant and the City. We guide the applicant through the entitlement process, timelines, technical studies, interdepartmental comments, revisions to the application, and the review and approval process. Team members utilize the City' s historical files, Geographic Information Systems, permit tracking software, and zoning code to respond to inquiries at the public counter and to research entitlements.

2. Prepare environmental Sagecrest planners are well versed in current environmental law analysis, including, but not and preparing CEQA documents for discretionary projects or Citylimited to, Initial Studies and initiated plans and programs. The Sagecrest team includes Negative Declarations, as planners who can prepare streamlining checklists, Initial Studies, required by the California Mitigated) Negative Declarations, EIRs, Mitigation Monitoring and Environmental Quality Act Reporting Programs, and all required CEQA notices. Sagecrest CEQA). planners have also managed CEQA consultant teams. We have reviewed and commented on numerous CEQA documents from
outside: agencies to ensure the City' s comments and concerns are represented.

3. Route plans to City Sagecrest planners are: ezperienced project managers. Entitlement departments;;consolidate case processing generally entails routing plans to various City comments;= and piesent departments; consolidating comments; resolving internal recommendations and inconsistencies; and presenting recommendations and revisions to revisions to the applicant. the applicant. Once the application is complete, our planners will Woirk';withlother departments write clear, concise, and accurate staff reports and manage the to ensure`consistency of project through public outreach, reviews and approvals by staff, comments. Prepare staff Planning Commission, any other required approval body, and the reports and presentations to City Council.
citizen committees.and
decision- making Bodies.

Page 1 ends

City of Seal Beach
On- Call Planning

SAGECREST
planning+ envi ronmentaI

4. Maintain communication with Sagecrest takespride in our communication and customer service applicants, interested parties, with applicants, interested parties, property owners, homeowner property owners, homeowner associations, various governmental agencies, and other City associations, etc. Respond to departments. Our planners quickly learn the frequently asked inquiries about projects from questions( i. e. business license, special events, building inspection residents and applicants. requests, etc.) and provide " one- stop shopping" at the public counter.

5. Prepare notices for public Sagecrest understands the importance of preparing timely, clear, meetings and hearings in concise and accurate public notices. We are experienced in accordance with City and preparing publications for the newspaper, posting on; and/ or near CEQA requirements. the project site and mailing notices to interested parties who may be affected. by a proposed action.

6. Attend community meetings Sagecrest planners have solid presentation skills and have and public hearings, as presented entitlement applications and reports to city councils, required, and present reports commissions; and community groups. We are often commended to various Boards, for the ability our staff has to take complex issues and present Commissions, and the City them in away that is clear and concise. We are passionate about Council. working with stakeholders to communicate the direction of the City early in the process so they understand what the' goals are and how to be a part of the ultimate solution.

7. Manage the project schedule We proactively manage our caseload to ensure that all projects in accordance with the City' s stay on schedule and in accordance with the City' s adopted adopted timelines. timelines. We coordinate with various City departments for comments, and build relationships with department
representatives to ensure good communication and coordination is: maintained throughout the life of each project. We understand the importance to applicants of maintaining established timelines.

8. Open;, maintain, and close Proper records management and organization is crucial. Our electronic. and paper files in planners have all worked for public agencies and understand the accordance` with City importance of working diligently to maintain the public record, procedures. proper publications, filing; indexing, and safekeeping of all proceedings ofthe Planning Commission and City Council. We work with the City Clerk to ensure the public record is kept permanently and is set up for efficient retrieval.

9. Review grading and building Plan checking is completed in accordance with conditions of plans for consistency with approval associated with each discretionary approval and discretionary approvals, and applicable codes; ordinances and standards adopted by the City. environmental mitigation, if
applicable.

Page 1 ends

City of Seal Beach
1'\ On- Call Planning

SAGECREST
pla nnind+ environmental

10. Provide staff at the public Our team members are skilled at reviewing a City' s historical files, information counter. zoning map, zoning code and other data and files to respond to inquiries. atthe public counter. Our planners are well versed in determining when a project is ready for plan submittal. We quickly learn the frequently asked questions ( i. e. business license, special events, building inspection request, etc.) that are typical to customers visiting City Hall to provide as much assistance as possible and help provide " one- stop shopping" for questions and needs. We take pride in our exceptional customer service skills.

Page 1 ends

City of Seal Beach
a•
On- Call Planning

SAGECREST
planning+ environmental
Key Team Member Summary
The Sagecrest team is comprised of a diverse group of planners and professionals with expertise in urban planning and design, environmental planning, public policy, and project management! Our team is recognized for the collaborative and insightful approach that results in high quality work and proven results. Sagecrest. has' served local public agencies on development projects in communities across Southern:.California in San Diego, Orange, Riverside, San Bernardino, and Los Angeles Counties. Our executive team manages over W employees on the following teams:

Planning Consulting Team assists municipal governments with project management, research, policy analysis, land useiand development regulations, development agreement negotiations, and updates and amendments to General Plans, Specific Plans, Zoning Codes, and related planning documents.

Environmental Services Team has extensive experience as municipal agency staff, which gives us insight into,the interdisciplinary coordination,required to deliver environmental review that otherconsulting firms may nothave'. Sagecrest is uniquely' positioned to integrate thIe project management.of the environmental review process with the Applicant, their architect, civil engineer, technical consultants,: and City staff. Sagecrest has a strong working relationship with professionals from a wide range of technical disciplines that comprise our subconsultant team.

Sagecrest is qualified to prepare CEQA documents, including initial studies, exemptions, negative declarations, mitigated negative declarations, environmental impact reports, associated technical studies, i. e. air quality, biology, cultural resources, noise and all related notices and filings.

CEQATechnica/ SubconsultantTeam offers industry experts in their respective fields to prepare and peer review technical studies: Vista Environmental ( Air Quality & Greenhouse Gas Impacts, Health: Risk Assessments, Energy and Noise Impact Analysis); Osborne Biological Consulting Biological Resources); Cogstore_Resource. Management, Inc, (Cultural Resources); Linscott, Law, I Greenspan,' Engineers ( Traffic impact Analysis and Parking Studies) and Partner Engineering Environmental Site Assessments).

Page 1 ends

City of Seal Beach
Cin- Call Planning

SAGECREST
plan n ing+ onvi ronmental
Executive Team

AMY VAZQUEZ, PRESIDENT
Amy has been a professional planner since 1999 and is the CoFounder and President of Sagecrest Planning+Environmental- an award winning, full service, professional planning firm providing planning, land use and environmental consulting services to public r agencies throughout California. She is a practiced planner who has experience successfully managing large and controversial planning l !; projects for the Cities of Anaheim and San Clemente: Amy is also the Section Director for the Orange Section of the American G Planning Association and has been an active board ' member for t , rit y` nearly decade.
r
it
I

CHRISTINE SAUNDERS, DIRECTOR, ENVIRONMENTAL SERVICES
Christine Saunders has worked as an urban and environmental zw y planner since 2000. Saunders is responsible ; for overall t
environmental project management, organization of technical experts, and document writing. She focused most of tier career in s the public sector managing the land use development permit process, including compliance with CEQA and other applicable ev plans, policies, programs, regulations, and laws. She has extensive experience preparing and reviewing CEQA documents for
t development and capital improvement projects. Saunders' strength is in providing clear, concise, internally, consistent, accurate, and legally defensible CEQA documents that translate technical, jargon into a document that speaks to the nonprofessional in one voice. Saunders earned a Bachelor of Arts k degree in Urban Studies with an emphasis in Public Administration A3 from Sam Diego State University. She is the Section Director for the Inland Empire Section of the American Planning Association.

Page 19 ends

City of Seal Beach
On- Call Planning

SAGECREST
pla an ing+ enviran mental
Proposed Project Manager

BARRY CURTIS, AICP, SENIOR PROJECT MANAGER
Barry Curtis, AICP, most recently served as the Director of Economic and Development Services for the City of Costa Mesa before his pi retirement in August 2020. In that capacity, he worked with a great I team in overseeing the City' s Planning, Building Safety, Community i Improvement, Housing and Community Development and Economic Development divisions. Prior to working for Orange County' s Capital of Cool," Barry worked for 19 years for the City of Irvine I where he managed the city' s advance planning, transportation planning and park planning divisions, as well as the current planning fdivisions charged with entitlement of the Orange County Great Park i and the private Great Park Neighborhoods development. Prior to his tenure in Irvine, Barry served- the City of Seal Beach for 16 years.

During his 30- plus-.year career as a professional planner,' Barry has V
i been involved in virtually every field of municipal planning and redevelopment and he continues to, seek new challenges and opportunities to improve communities across Orange County.

Page 110 ends

City of Seal Beach
On- Call Planning

SAGECREST
plan n i ng+ environmental
Fee Schedule
Sagecrest will perform consulting services based on the following breakdown of classification of hourly rates for key personnel as identified below.

I
Position Hourly Rate
Planning Director 200. 00
Planning Manager 180.00
Principal Planner 140.00
Senior Project' Manger 130.ob
Senior Planner 120. ob
Associate Planner 100. 00
Assistant.Planner 80. 00
Planning Aide 70. 00
Minutes Clerk/ Planning Administration 60. 00
Reimbursable Expenses: Expenses incurred will be billed at actual costs plus hourly rate, if applicable.

Reimbursable expenses include, but are not limited to, reprographics, postage, certified mailings, office supplies such as Compact Discs for environmental documents, and CECIA filing fees. Mileage will be billed at the current IRS reimbursement rate.

Page 1 ends

EXHIBIT B

TERMS FOR COMPLIANCE WITH CALIFORNIA LABOR LAW REQUIREMENTS I. This Agreement calls for services that, in whole or in part, constitute " public works" as defined in Division 2, Part 7, Chapter 1 ( commencing with Section 1720) of the California Labor Code (" Chapter 1"). Further, Consultant acknowledges that this Agreement is subject to ( a) Chapter 1 and ( b) the rules and regulations established by the Department of Industrial Relations (" DIR") implementing such statutes. Therefore, as to those Services that are " public works", Consultant shall comply with and be bound by all the terms, rules and regulations described in 1( a) and 1( b) as though set forth in full herein.

2. California law requires the inclusion of specific Labor Code provisions in certain contracts. The inclusion of such specific provisions below, whether or not required by California law, does not alter the meaning or scope of Section 1 above.

3. Consultant shall be registered with the Department of Industrial Relations in accordance with California Labor Code Section 1725. 5, and has provided proof of registration to City prior to the Effective Date of this Agreement. Consultant shall not perform work with any subcontractor that is not registered with DIR pursuant to Section 1725. 5. Consultant and subcontractors shall maintain their registration with the DIR in effect throughout the duration of this Agreement. If Consultant or any subcontractor ceases to be registered with DIR at any time during the duration of the project, Consultant shall immediately notify City.

4. Pursuant to Labor Code Section 1771. 4, Consultant's Services are subject to compliance monitoring and enforcement by DIR. Consultant shall post job site notices, as prescribed by DIR regulations.

5. Pursuant to Labor Code Section 1773. 2, copies of the prevailing rate of per diem wages for each craft, classification, or type of worker needed to perform the Agreement are on file at City Hall and will be made available to any interested party on request.

Consultant acknowledges receipt of a copy of the DIR determination of such prevailing this rate Agreement. of per diem wages, and Consultant shall post such rates at each job site covered by

6. Consultant shall comply with and be bound by the provisions of Labor Code Sections 1774 and 1775 concerning the payment of prevailing rates of wages to workers and the penalties for failure to pay prevailing wages. Consultant shall, as a penalty to City, forfeit 200. 00 for each calendar day, or portion thereof, for each worker paid less than the prevailing rates as determined by the DIR for the work or craft in which the worker is subcontractor. employed for any public work done pursuant to this Agreement by Consultant or by any

7. Consultant shall comply with and be bound by the provisions of Labor Code Section 1776, which requires Consultant and each subcontractor to: keep accurate payroll records and verify such records in writing under penalty of perjury, as specified in 16 of 18
Section 1776; certify and make such payroll records available for inspection as provided by Section 1776; and inform City of the location of the records.

8. Consultant shall comply with and be bound by the provisions of Labor Code Sections 1777.5, 1777.6 and 1777.7 and California Code of Regulations, Title 8, Section 200 et seq. concerning the employment of apprentices on public works projects. Consultant shall be responsible for compliance with these aforementioned Sections for all apprenticeable occupations. Prior to commencing work under this Agreement, Consultant shall provide City with a copy of the information submitted to any applicable apprenticeship program. Within 60 days after concluding work pursuant to this Agreement, Consultant and each of its subcontractors shall submit to City a verified statement of the journeyman and apprentice hours performed under this Agreement.

9. Consultant shall not perform work with any Subcontractor that has been debarred or suspended pursuant to California Labor Code Section 1777. 1 or any other federal or state law providing for the debarment of contractors from public works. Consultant and subcontractors shall not be debarred or suspended throughout the duration of this Contract pursuant to Labor Code Section 1777. 1 or any other federal or state law providing for the debarment of contractors from public works. If Consultant or any subcontractor becomes debarred or suspended during the duration of the project, Consultant shall immediately notify City.

10. Consultant acknowledges that eight hours labor constitutes a legal day' s work. Consultant shall comply with and be bound by Labor Code Section 1810. Consultant shall comply with and be bound by the provisions of Labor Code Section 1813 concerning penalties for workers who work excess hours. Consultant shall, as a penalty to City, forfeit $ 25. 00 for each worker employed in the performance of this Agreement by Consultant or by any subcontractor for each calendar day during which such worker is required or permitted to work more than eight hours in any one calendar day and 40 hours in any one calendar week in violation of the provisions of Division 2, Part 7, Chapter 1, Article 3 of the Labor Code. Pursuant to Labor Code Section 1815, work performed by employees of Consultant in excess of eight hours per day, and 40 hours during any one week shall be permitted upon public work upon compensation for all hours worked in excess of eight hours per day at not less than one and one- half times the basic rate of pay.

11. California Labor Code Sections 1860 and 3700 provide that every employer will be required to secure the payment of compensation to its employees. In accordance with the provisions of California Labor Code Section 1861, follows: Consultant hereby certifies as
I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers' compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work of this contract." 17 of 18

12. For every subcontractor who will perform work on the project, Consultant shall be responsible for such subcontractor' s compliance with Chapter 1 and Labor Code Sections 1860 and 3700, and Consultant shall include in the written contract between it and each subcontractor a copy of those statutory provisions and a requirement that each subcontractor shall comply with those statutory provisions. Consultant shall be required to take all actions necessary to enforce such contractual provisions and ensure subcontractor's compliance, including without limitation, conducting a periodic review of the certified payroll records of the subcontractor and upon becoming aware of the failure of the subcontractor to pay his or her workers the specified prevailing rate of wages. Consultant shall diligently take corrective action to halt or rectify any failure.

13. To the maximum extent permitted by law, Consultant shall indemnify, hold harmless and defend ( at Consultant' s expense with counsel reasonably acceptable to City) City, its officials, officers, employees, agents and independent contractors serving in the role of City officials, and volunteers from and against any demand or claim for damages, compensation, fines, penalties or other amounts arising out of or incidental to any acts or omissions listed above by any person or entity ( including Consultant, its subcontractors, and each of their officials, officers, employees and agents) in connection with any work undertaken or in connection with the Agreement, including without limitation the payment of all consequential damages, attorneys' fees, and other related costs and expenses. All duties of Consultant under this Section shall survive the termination of the Agreement. 18 of 18

Agenda Item F

AGENDA STAFF REPORT
DATE: March 14, 2022
TO: Honorable Mayor and City Council
THRU: Jill R. Ingram, City Manager
FROM: Alexa Smittle, Community Development Director
SUBJECT: Amendment No. 1 to the Professional Services Agreement with Transtech Engineers, Inc.
___________________________________________________________ _____ SUMMARY OF REQUEST:

That the City Council adopt Resolution 7258:

1. Approving Amendment No. 1 to the Professional Services Agreement with Transtech Engineers, authorizing Transtech Engineers, Inc. to provide additional Building Department personnel services during the term, to increase Transtech Engineers, Inc.’s compensation for the term by $184,000, for a revised total not-to-exceed contract amount of $359,000, and for Plan Check Services authorizing not more than 65% of plan review fees collected per the City’s fee schedule; and,

2. Authorizing and directing the City Manager to execute the Amendment.

BACKGROUND AND ANALYSIS:

Transtech Engineers, Inc. (Transtech) has served within the Building Division in a variety of roles since 2017, with the most recent contract initiated in August 2021.

Currently, Transtech provides Building Official, Building Inspector, Permit Technician, and building plan check services. In August 2021, the City entered into a Professional Services Agreement with Transtech with the intent of funding certain staff functions due to vacancies in addition to plan check services. The contract included $175,000 for contract costs, as well as 65% of plan check fee revenues to cover plan check services. Following adoption of that contract, an additional staff vacancy was created following a resignation, as well as a temporary vacancy which Transtech was able to provide additional staffing to support. While recruitment for vacancies is planned later this spring, at this time, additional funds are being requested to continue providing Building Division services in its existing capacity.

ENVIRONMENTAL IMPACT:

This item is not subject to the California Environmental Quality Act (“CEQA”) under Section 15061(b)(3) of the state CEQA Guidelines because it can be seen with certainty that approval of this amendment to the Professional Services Agreement with Transtech will not have a significant effect on the environment.

LEGAL ANALYSIS:

The City Attorney has reviewed and approved as to form.

FINANCIAL IMPACT:

The contract amendment will approve an additional expenditure of up to $184,000 in staffing services from Account 101-300-0031-51280, in addition to the $175,000 previously allocated, for a total not-to-exceed contract amount of $359,000, and 65% of plan check revenues to cover services related to building plan check.

Approximately 78 percent of the total costs are offset by salary savings.

STRATEGIC PLAN:

This item is not applicable to the Strategic Plan.

MEASURE BB:

This item is not applicable to Measure BB, the Seal Beach Neighborhood and Essential Services Protection Measure.

RECOMMENDATION:

That the City Council adopt Resolution 7258:

1. Approving Amendment No. 1 to the Professional Services Agreement with Transtech Engineers, Inc., authorizing Transtech Engineers, Inc. to provide additional Building Department personnel services during the term, to increase Transtech Engineers, Inc.’s compensation for the term by $184,000, for a revised total not-to-exceed contract amount of $359,000, and for Plan Check Services authorizing payment of not more than 65% of plan review fees collected per the City’s fee schedule; and,

2. Authorizing and directing the City Manager to execute the Amendment.

SUBMITTED BY: NOTED AND APPROVED:

Alexa Smittle Jill R. Ingram
Alexa Smittle, Jill R. Ingram, City Manager
Director of Community Development
ATTACHMENTS:

A. Resolution 7258
B. Professional Services Agreement with Transtech Engineers, Inc.

C. Amendment No. 1 to the Professional Services Agreement with Transtech Engineers, Inc.

RESOLUTION 7258

A RESOLUTION OF THE SEAL BEACH CITY COUNCIL APPROVING
AMENDMENT NO. 1 TO THE PROFESSIONAL SERVICES
AGREEMENT WITH TRANSTECH ENGINEERS, INC.

WHEREAS, the City of Seal Beach (City) has relied upon professional service firms for technical expertise for certain City operations as well as temporary staff assistance during periods of extraordinary work or during periods when permanent staff positions are vacant; and
WHEREAS, the City previously entered into an agreement with Transtech Engineers Inc. (Consultant) to provide Building Division personnel services, including Building Official/Plan Checker and Building Inspector technical and staffing services for the Community Development Department, and,
WHEREAS, Consultant has proven to be a reliable, dependable, and competitively priced company who has provided staff competent and capable of serving temporary planning staffing needs of the City; and,
WHEREAS, pursuant to the Seal Beach City Charter, Seal Beach Municipal Code Chapter 3.20 establishes a central purchasing system including procedures for competitive bidding and exemptions from competitive bidding; and WHEREAS, Seal Beach Municipal Code Section 3.20.025(C) provides for an exemption from competitive bidding requirements for purchases of professional services, including without limitation, architectural services; bond services; election services; engineering services; insurance services; legal services; public relations services; real estate services; and solid waste disposal services; and
WHEREAS, City and Consultant wish to amend the Agreement, by this Amendment No. 1, for Consultant to increase Consultant’s compensation by $184,000 for additional Building Division services, for a revised not-to-exceed contract amount $359,000, and for Plan Check Services to authorize payment of not more than 65 percent of plan review fees collected per the City’s fee schedule, as provided herein.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SEAL BEACH DOES HEREBY RESOLVE:

Section 1. The City Council hereby approves Amendment No. 1 to the Professional Services Agreement with Transtech Engineers, Inc. as set forth in Exhibit “A”, attached hereto and incorporated herein by this reference as through set forth in full, (i) to increase Transtech Engineers Inc.’s compensation for the term by $184,000, for a revised contract not-to-exceed amount of $359,000 for additional staffing services related to duties conducted by a Building Official, Building Inspector, and Permit Technician, and (ii) for Plan Check Services the City shall pay not more than 65 percent of plan check review fees collected per the City’s fee schedule to cover services related to building plan check.

Section 2. The Council hereby directs the City Manager to execute Amendment No. 1 on behalf of the City.

PASSED, APPROVED AND ADOPTED by the Seal Beach City Council at a regular meeting held on the 14th day of March, 2022 by the following vote:

AYES: Council Members
NOES: Council Members
ABSENT: Council Members
ABSTAIN: Council Members

Joe Kalmick, Mayor
ATTEST:

Gloria D. Harper, City Clerk
STATE OF CALIFORNIA }
COUNTY OF ORANGE } SS
CITY OF SEAL BEACH }
I, Gloria D. Harper, City Clerk of the City of Seal Beach, do hereby certify that the foregoing resolution is the original copy of Resolution 7258 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 14th day of March, 2022.

Gloria D. Harper, City Clerk

PROFESSIONAL SERVICES AGREEMENT
FOR

BUILDING AND SAFETY SERVICES
between
City of Seal Beach
211 - 8th Street
Seal Beach, CA 90740
0 Transtech Engineers, Inc.
13367 Benson Avenue
Chino, CA 91.710
T ( 949) 595- 8599, F ( 909) 590- 8599
This Professional Services Agreement (" the Agreement") is made as of August 31, 2021, ( the Effective Date"), by and between Transtech Engineers, Inc. (" Consultant"), a California corporation, and the City of Seal Beach (" City'), a California charter city, ( collectively, " the Parties").

RECITALS
A. City desires certain professional services with respect to building services B. Pursuant to the authority provided by its City Charter and Seal Beach Municipal Code § 3. 20. 025( C), City desires to engage Consultant to provide professional building services in the manner set forth herein and more fully described in Section 1. 0.

C. Consultant represents that the principal members of its firm are qualified professional building inspectors, plan checkers and building officials and are fully qualified to perform the services contemplated by this Agreement in a good and professional manner; and it desires to perform such services as provided herein.

NOW THEREFORE, in consideration of the Parties' performance of the promises, covenants, and conditions stated herein, the Parties hereto agree as follows.

AGREEMENT

1. 0 Scope of Services

1. 1. Consultant shall provide those services (" Services") set forth in Exhibit A ( Scope of Services), attached hereto and incorporated herein by this reference. To the extent that there is any conflict between Exhibit A and this Agreement, this Agreement shall control.

1. 3. In performing this Agreement, Consultant shall comply with all applicable provisions of federal, state, and local law.

1. 4. As a material inducement to City to enter into this Agreement, Consultant hereby represents that it has the experience necessary to undertake the- Services to be provided. In light of such status and experience, Consultant hereby covenants that it shall follow the customary professional standards in performing all Services. The City relies upon the skill of Consultant, and Consultant' s staff, if any, to do and perform the Services in a skillful, competent, and professional manner, and Consultant and Consultant' s staff, shall perform the Services in such manner. Consultant shall, at all times, meet or exceed any and all applicable professional standards of care. The acceptance of Consultant's work by the City shall not operate as a release of Consultant from such standard of care and workmanship.

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1. 5. Consultant will not be compensated for any work performed not specified in. the Scope of Services unless the City authorizes such work in advance and in writing. The City Manager may authorize extra work to fund unforeseen conditions up to the amount approved at the time of award by the City Council in accordance with Section 3. 0. Payment for additional work in excess of this amount requires prior City Council authorization.

2. 0 Term

2. 1. The term of this Agreement shall commence on August 31, 2021 and shall remain in full force and effect until midnight on August 30, 2022 unless sooner terminated as provided in Section 5. 0 of this Agreement.

3. 0 Consultant' s Compensation

3. 1. City will pay Consultant for Services performed in accordance with the hourly rates shown in the fee schedule set forth in Exhibit A and the Standard Hourly Rates set forth on Exhibit B, but in no event will the City pay more than the following during the term of this Agreement: ( i) for Building Division personnel services, including Building Official/Plan Checker and Building Inspector, the City shall not pay more than a total sum of $ 175, 000 ( one hundred seventy five thousand dollars). during the term of this Agreement; and ( ii) for Plan Check Services, the City shall not pay more than 65% of the plan review fees collected per the City's fee schedule. In the event of any conflict or inconsistency between Exhibit A and/ or Exhibit B, on the one hand, and this section, on the other hand, the terms of this section shall prevail.

3. 2. Any additional work authorized by the City Council pursuant to Section 1. 5 will be compensated in accordance with the fee schedule set forth in Exhibit B.

4.0 Method of Payment

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records maintained by Consultant in connection with this Agreement. City' s rights under this Section 4. 2 shall survive for three ( 3) years following the termination of this Agreement.

5. 0 Termination

6. 0 Party Representatives

6. 1. The City Manager is the City' s representative for purposes of this Agreement.

6.2. Ayla Jefferson, CBO, is the Consultant's primary representative for purposes of this Agreement. Ayla Jefferson shall be responsible during the term of this Agreement for directing all activities of Consultant and devoting sufficient time to personally supervise the Services hereunder. Consultant may not change its representative without the prior written approval of `City, which approval shall not be unreasonably withheld.

7. 0 Notices

To City: City of Seal Beach
211 - 8th Street
Seal Beach, California 90740
Attn: City Manager
To Consultant: Transtech Engineers, Inc.

1. 3367 Benson Avenue
Chino, CA 91710
Attn: Ayla Jefferson, CBO

7. 2. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service.

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8. 0 Permits and Licenses
Consultant and all of Consultant' s employees and other personnel shall obtain and maintain during the Agreement term all necessary licenses, permits and certificates required by law for the provision of the Services under this Agreement, including a business license as required by the Seal Beach Municipal Code.

9. 0 Independent Contractor

9. 1. Consultant is an independent contractor and not an employee of the City. All work or other Services provided pursuant to this Agreement shall be performed by Consultant or by Consultant's employees or other personnel under Consultant's supervision. Consultant will determine the means, methods, and details by which Consultant' s personnel will perform the Services. Consultant shall be solely responsible for the satisfactory work performance of all personnel engaged in performing the Services and compliance with the customary professional standards.

9. 2. All of Consultant' s employees and other personnel performing any of the Services under this Agreement on behalf of Consultant shall also not be employees of City and shall at all times be under Consultant' s exclusive direction and control. Consultant and Consultant' s personnel shall not supervise any of City' s employees; and City's employees shall not supervise Consultant's personnel. Consultant' s personnel shall not wear or display any City uniform, badge, identification number, or other information identifying such individual as an employee of City; and Consultant's personnel shall not use any City e- mail address or City telephone number in the performance of any of the Services under this Agreement. Consultant shall acquire and maintain at its sole cost and expense such vehicles, equipment and supplies as Consultant's personnel require to perform any of the Services required by this Agreement. Consultant shall perform all Services off of City premises at locations of Consultant' s choice, except ( 1) as otherwise required for the performance of Services on City real property, vehicles or equipment; ( 2) as otherwise may from time to time be necessary in order for Consultant' s personnel to receive projects from City, review plans on file at City, pick up or deliver any work product. related to Consultant's performance of any Services under this Agreement, or ( 3) as may be necessary to inspect or visit City locations and/ or private property to perform such Services. City. may make a computer available to .Consultant from time to time for Consultant's personnel to obtain information about or to check on the status of projects pertaining to the Services under this Agreement.

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9. 3. Consultant shall be responsible for and pay all wages, salaries, benefits and other amounts due to Consultant' s personnel in connection with their performance of any Services under this Agreement and as required by law.

Consultant shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: Social Security taxes, other retirement or pension benefits, income tax withholding, unemployment insurance, disability insurance, and workers' compensation insurance. Notwithstanding any other agency, State, or federal policy, rule, regulation, statute or ordinance to the contrary, Consultant and any of its officers, employees, agents, and subcontractors providing any of the Services under this Agreement shall not become entitled to, and hereby waive any claims to, any wages, salaries, compensation, benefit or any incident of employment by City, including but not limited to, eligibility to enroll in, or reinstate to membership in, the California Public Employees Retirement System (" PERS") as an employee of City, and entitlement to any contribution to be paid by City for employer contributions or employee contributions for PERS benefits.

9.4. Consultant shall indemnify and hold harmless City and its elected officials, officers, employees, servants, designated volunteers, and agents serving as independent contractors in the role of City officials, from any and all liability, damages, claims, costs and expenses of any nature to the extent arising from, caused by, or relating to Consultant' s personnel practices. or to the extent arising from, caused by or relating to the violation of any of the provisions of this Section 9. 0. In addition to all other remedies available under law, City shall have the right to offset against the amount of any fees due to Consultant under this Agreement any amount due to City from Consultant as a result of Consultant' s failure to promptly pay to City any reimbursement or indemnification arising under this Section. This duty of indemnification is in addition to Consultant's duty to defend, indemnify and hold harmless as set forth in any other provision of this Agreement. Consultant's indemnifications and obligations under this Section shall survive the expiration or termination of this Agreement.

10. 0 PERS Compliance and Indemnification

10. 1. General Requirements. The Parties acknowledge that City is a local agency member of PERS, and as such has certain pension reporting and contribution obligations to PERS on behalf of qualifying employees. Consultant agrees that, in providing its employees and any other personnel to City to perform any work or other Services under this Agreement, Consultant shall assure compliance with the Public Employees' Retirement Law ("PERL"), commencing at Government Code § 20000, the Public Employees' Pension Reform Act of 2013 PEPRA"), and the regulations of PERS, as amended. Without limitation to the foregoing, Consultant shall assure compliance with regard to personnel who have active or inactive membership in PERS and to those who are retired annuitants and in performing this Agreement shall not assign or utilize any of its personnel in

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a manner that will cause City to be in violation of the PERL, PEPRA or any other appl icable, reti rem ent laws and regulations.

10.2. Indemnification. Consultant shall defend ( with legal counsel approved by City, whose approval shall not be unreasonably withheld), indemnify and hold harmless City, and its City and its elected officials, officers, employees, servants, designated volunteers, and agents serving as independent contractors in the role of City officials, from any and all liability, damages, claims, costs and expenses of any nature to the extent arising from, caused by, or relating to Consultant' s violation of any provisions of this Section 10. 0. This duty of indemnification is in addition to Consultant' s duty to defend, indemnify and hold harmless as set forth in any other provision of this Agreement.

11. 0 Confidentiality

11. 1. Consultant covenants that all data, reports, documents, surveys, studies, drawings, plans, maps, models, photographs, images, video files, media, discussion, or other information ( collectively " Data & Documents") developed or received by Consultant or provided for performance of this Agreement are deemed confidential and shall not be disclosed by Consultant without prior written authorization by City. City shall grant such authorization if applicable law requires disclosure. Consultant, its officers, employees, agents, or subcontractors shall not without written authorization from the City Manager or unless requested in writing by the City Attorney, voluntarily provide declarations, letters of support, testimony at depositions, response to interrogatories or other information concerning the Services performed under this Agreement or relating to any project or property located within the City. Response to a subpoena or court order shall not be considered " voluntary," provided Consultant gives City notice of such court order or subpoena. ,
t

11. 2. Consultant shall promptly notify City should Consultant, its officers, employees, agents or subcontractors be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admissions or other discovery request, court order or subpoena from any party regarding this Agreement and the work performed thereunder or with respect to any project or property located within the City. City may, but, has no obligation to, represent Consultant or be present at any deposition, hearing or similar proceeding. Consultant agrees to cooperate fully with City and to provide City with the .opportunity to review any response to discovery requests provided by Consultant. However, City' s right to review any such response does not imply or mean the right by City to control, direct or rewrite the response.

11. 3. Consultant' s covenants under this Section shall survive the termination or expiration of this Agreement.

12. 0 Ownership of Documents and Work Product

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12. 1. All Data & Documents shall be and remain the property of City without restriction or limitation upon its use, duplication or dissemination by City.

All Data & Documents shall be considered " works made for hire," and all Data & Documents and any and all intellectual property rights arising from their creation, including, but not limited to, all copyrights and other proprietary rights, shall be and remain the property of City without restriction or limitation upon their use, duplication or dissemination by City. Consultant shall not obtain or attempt to obtain copyright protection as to any Data & Documents.

12.2. Consultant hereby assigns to City all ownership and any and all intellectual property rights to the Data & Documents that are not otherwise vested in City pursuant to the paragraph directly above this one.

12.3. Consultant warrants and represents that it has secured all necessary licenses, consents or approvals to use any instrumentality, thing or component as to which any intellectual property right exists, including computer software, used in the rendering of the Services and the production of all Written Products produced under this Agreement, and that City has full legal title to and the right to reproduce the Data & Documents. Consultant shall defend, indemnify and hold City, and its elected officials, officers, employees, servants, attorneys, designated volunteers, and agents serving as independent contractors in the role of City officials, harmless from any loss, claim or liability in any way related to a claim that City' s use of any of the Data & Documents is violating federal, state or local laws, or any contractual provisions, or any laws relating to trade names, licenses, franchises, copyrights, patents or other means of protecting intellectual property rights and/ or interests in products or inventions. Consultant shall bear all costs arising from the use of patented, copyrighted, trade secret or trademarked documents, materials, equipment, devices or processes in connection with its provision of the Services and Data & Documents produced under this Agreement.

In the event the use of any of the Written Products or other deliverables hereunder by City is held to constitute an infringement and the use of any of the same is enjoined, Consultant, at its expense, shall: ( 1) secure for City the right to continue using the Data & Documents and other deliverables by suspension ' of any injunction, or by procuring a license or licenses for City; or ( 2) modify the Data & Documents and other deliverables so that they become non -infringing while remaining in compliance with the requirements of this Agreement. These covenants shall survive the expiration and/ or termination of this Agreement.

12.4. Upon expiration or termination of the Agreement, Consultant shall deliver to City all Data & Documents and other deliverables related to any Services performed pursuant to this Agreement without additional cost or expense to City. If Consultant prepares a document on a computer, Consultant shall provide City with said document both in a printed format and in an electronic format that is acceptable to City.

13.0 Subcontractors

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No portion of this Agreement shall be subcontracted without the prior written approval of the City. Consultant is fully responsible to City for the performance of any and all subcontractors. ,

14. 0 Prohibition Against Assignment or Delegation
Consultant shall not. assign any of its rights or delegate any of its duties under this Agreement, either in whole or in part, without City' s prior written consent. Any purported assignment or delegation in violation of this Section shall be void and without effect, and shall entitle City to terminate this Agreement. As used in this Section, " assignment" and " delegation" means any sale, gift, pledge, hypothecation, encumbrance or other transfer of all or any portion of the rights, obligations, or liabilities in or arising from this Agreement to any person or entity, whether by operation of law or otherwise, and regardless of the legal form of the transaction in which the attempted transfer occurs.

15. 0 Inspection and Audit of Records
Consultant shall maintain complete and accurate records with respect to all Services and other matters covered under this Agreement, including but expressly not limited to, all Services performed, salaries, wages, invoices, timecards, cost control sheets, costs, expenses, receipts and other records with respect to this Agreement. Consultant shall maintain adequate records on the Services provided in sufficient detail to permit an evaluation of all Services in connection therewith. All such records shall be clearly identified and readily accessible. At all times during regular business hours, Consultant shall provide City with free access to such ' records, and the right to examine and audit the same and to make copies and transcripts as City deems necessary, and shall allow inspection of all program data, information, documents, proceedings and activities and all other matters related to the performance of the Services under this Agreement. Consultant shall retain all financial and program service records and all other records related to the Services. and performance of this Agreement for at least three ( 3) years after expiration, termination or final payment under this Agreement, whichever occurs later. City' s rights under this Section 15. 0 shall survive for three ( 3) years after expiration, termination or final payment under this Agreement, whichever occurs later.

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16.0 Safety Requirements
All work performed under this Agreement shall be performed in such a manner as to provide safety to the public and to meet or exceed the safety standards outlined by CAL OSHA and any other applicable state and federal laws. City may issue restraint or cease and desist orders to Consultant when unsafe or harmful acts are observed or reported relative to the performance of the Services.

Consultant shall maintain the work sites free of hazards to persons and property resulting from its operations. Consultant shall immediately report to the City any hazardous condition noted by Contractor.

17. 0 Insurance

17. 1. General Requirements. Consultant shall not commence work under this Agreement until it has provided evidence satisfactory to the City that Consultant has secured all insurance required under this Section.

17.2. Minimum Scope and Limits of Insurance. Consultant shall, at its sole cost and expense, procure, maintain and keep in full force and effect for the duration of the Agreement, insurance against claims for injuries to persons or damages to property that may arise from or in connection with the pefformance of this Agreement, as follows:
17:2. 1. Commercial General Liability Insurance: Consultant shall maintain limits no less than $ 2, 000, 000 per occurrence for bodily injury, personal injury and property damage; and if Commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this Agreement/ location or the general aggregate limit shall be twice the required occurrence limit: Coverage shall be at Least as broad as the latest version of Insurance Services Office Commercial General Liability coverage ( occurrence form CG 0001). If Consultant is a limited liability company, the commercial general liability coverage shall be amended so that Consultant and its managers, affiliates, employees, agents and other persons necessary or incidental to its operation are insureds;

17. 2. 2. Automobile Liability Insurance: Consultant shall maintain limits no less than $ 1, 000, 000 per accident for bodily injury and property damage.

Coverage shall be at least as broad as Automobile Liability: Insurance Services Office Business Auto Coverage form number CA 0001, code 1 ( any auto)..

17. 2. 3. Workers' Compensation Insurance in the amount required by law; and Employer's Liability: $ 1, 000, 000 per accident and in the aggregate for bodily injury or disease;

17. 2. 4. Professional Liability ( or Errors and Omissions) Liability. , within minimum limits of $ 1, 000, 000 per claim/aggregate. If a " claims made"

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policy is provided, then the policy shall be endorsed to provide an extended reporting period of not less than three years.

17. 3. Acceptability of Insurers. The Insurance policies required under this Section shall be placed with insurers with a current A.M. Best' s rating no less than A:VIII, licensed to do business in California, and satisfactory to the City.

17.4. Additional Insured.

17.4. 1. For general liability' insurance, City, its elected and appointed officials, officers, employees, agents, designated volunteers and those City agents acting as independent contractors in the role of City officials shall be covered as additional insureds with respect to the services or operations performed by or on behalf of the Consultant, including materials, parts or equipment furnished in connection with such work.

17.4.2. For automobile liability, City, its elected and appointed officials, officers, employees, agents, designated volunteers and those City agents serving as independent contractors ,in the role of City officials, shall be covered as additional insureds with respect to the ownership, operation, maintenance, use, loading or unloading of any auto owned, leased, hired or borrowed by the Consultant or for which the Consultant is responsible.

17.4.3. These additional insured provisions shall also apply to any excess/ umbrella liability policies.

17.5. Cancellations or Modifications to Coverage. The insurance policies shall contain the following provisions, or .Consultant shall provide endorsements on forms supplied or approved by City to state: ( 1) coverage shall not be suspended, voided, reduced or canceled except after 30 days prior written notice by certified mail, return receipt requested, has been given to City; ( 2) any failure to comply with reporting or other provisions of the policies, including breaches of warranties, shall not affect coverage provided to City, its elected and appointed officials, officers, employees, agents, designated volunteers, and those City agents serving as independent contractors in the role of City officials;

17. 6. Primary and Non -Contributing. Coverage shall be primary insurance as respects the City,, its elected officials, officers, employees, agents, designated volunteers designated volunteers and agents serving as independent contractors in the role of City officials, or if excess, shall stand in an unbroken chain of coverage excess of the Consultant' s scheduled underlying coverage and that any insurance or self- insurance maintained by the City, its elected officials, officers, employees, agents. designated volunteers designated volunteers and agents serving as independent contractors in the role of City officials, shall be excess of the Consultant' s insurance and shall not be called upon to contribute with it;

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17. 7. Separation of Insureds. All insurance required by this Section shall contain standard separation of insureds provisions and shall not contain any special limitations on the scope of protection afforded to City, its elected and appointed officials, officers, employees, agents, designated volunteers and those City agents serving as independent contractors in the role of City officials.

17. 8. Deductibles and Self -Insured Retentions. Any deductibles or selfinsured retentions shall be declared to and approved by City. Consultant guarantees that, at the option of City, either: ( 1) the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects City, its elected and appointed officials, officers, employees, agents, designated volunteers and those City agents serving as independent contractors in the role of City officials; or ( 2) Consultant shall procure a bond guaranteeing payment of losses and related investigation costs, claims and administrative and defense expenses.

17. 9. Waiver of Subrogation. Each insurance policy required by this Agreement shall expressly waive the insurer' s right of subrogation against City and its elected and appointed officials, officers, employees, agents, designated volunteers and those City agents serving as independent contractors in the role of City officials. Consultant hereby waives all rights of subrogation against City.

17. 10. City Remedy for Noncompliance. If Consultant does not maintain the policies of insurance required under this Section in full force and effect during the term of this Agreement, or in the event any of Consultant' s policies do not comply with the requirements under this Section, City may either immediately terminate this Agreement or, if insurance is available at a reasonable cost, City may, but has no duty to, take out the necessary insurance and pay, at Consultant's expense, the premium thereon. Consultant shall 'promptly reimburse City for any premium paid by City or City may withhold amounts sufficient to pay the premiums from payments due to Consultant.

17. 11. Evidence of Insurance. Prior to the performance of Services under this Agreement, Consultant shall furnish City with original certificates of insurance and all original endorsements evidencing and effecting the coverages required under this Section on forms satisfactory to and approved by City. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf, and shall be on forms provided by City if requested. Consultant may provide complete, certified copies of all required insurance policies to City. Consultant shall maintain current endorsements on file with City' s Risk Manager. All certificates and endorsements shall be received and approved by the City before work commences. City reserves the right to require complete, certified copies of all required insurance policies, at any time. Consultant shall also provide proof to City that insurance policies expiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Consultant shall furnish such proof at least two weeks prior to the expiration of the coverages.

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17. 12. Indemnity Requirements Not Limiting. Procurement of insurance by Consultant shall not be construed as a limitation of Consultant' s liability or as full performance of Consultant' s duty to indemnify City under Section 18. 0.

17. 13: Broader Coverage/ Higher Limits. If Consultant maintains broader coverage and/ or higher limits than the minimums required above, City requires and shall be entitled to the broader coverage and/ or the higher limits maintained by Consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to City.

17. 14. Subcontractor Insurance Requirements. Consultant, shall require each of its subcontractors that perform Services under this Agreement to maintain insurance coverage that meets all of the requirements of this Section.

18. 0 Indemnification, Hold Harmless, and Duty to Defend

18. 1. Indemnities.

18. 1. 1. To the fullest extent permitted by law, Consultant shall, at its sole cost and expense, protect, defend, hold harmless and indemnify City and its elected and appointed officials, officers, attorneys, agents, employees, designated volunteers, successors, assigns and those City agents serving as independent contractors in the role of City officials ( collectively "Indemnitees" in this Section 18. 0), from and against any and all damages, costs, expenses, liabilities, claims, demands, causes of action, proceedings, judgments, penalties, bid protests, stop notices, liens and losses of any nature whatsoever, including but not limited to fees of accountants, attorneys and other professionals, and all costs associated therewith, and the payment of all consequential damages collectively " Liabilities"), in law or equity, whether actual, alleged or threatened, which arise out of, pertain to, or relate to, in whole or in part, the acts or omissions of Consultant, its officers, agents, servants, employees, subcontractors, materialmen, suppliers, consultants, or contractors, or their officers, agents, servants or employees ( or any entity or individual that Consultant shall bear the legal liability thereof) in the performance of this Agreement, including the Indemnitees' active or passive negligence, except to the extent such Liabilities arise from the sole negligence or willful misconduct of the Indemnitees, as determined by final arbitration or court decision or by the Agreement of the Parties. Consultant shall defend the Indemnitees in any action or actions filed in connection with any Liabilities with counsel of the Indemnitees' choice, and shall pay all costs and expenses, including all attorneys' fees and experts' costs actually incurred in connection with such defense. Consultant shall reimburse the Indemnitees for any and all legal expenses and costs incurred by the Indemnitees in connection therewith.

18. 1. 2. Consultant shall indemnify and hold harmless City in accordance with Sections 9. 0 and 10. 0.

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18.2. Subcontractor Indemnification. Consultant shall obtain executed indemnity agreements with provisions identical to those in this Section 18. 0 from each and every subcontractor or any other person or entity involved by, for, with or on behalf of Consultant in the performance of this Agreement. If Consultant fails to obtain such indemnities, Consultant shall be fully responsible and indemnify, hold harmless and defend the Indemnitees from and against any and all Claims in law or equity, whether actual, alleged or threatened, which arise out of, are claimed to arise out of, pertain to, or relate to the acts or omissions of Consultant' s subcontractor, its officers, agents, servants, employees, subcontractors, materialmen, contractors or their officers, agents, servants or employees ( or any entity or individual that Consultant' s subcontractor shall bear the legal liability thereof) in the performance of this Agreement, including the Indemnitees' active or passive negligence, except for Claims or Damages arising from the sole negligence or willful misconduct of the Indemnitees, as determined by final arbitration or court decision or by the agreement of the Parties.

18.3. Workers' Compensation Acts and Insurance Requirements Not Limiting. The obligations of Consultant under this or any other provision of this Agreement shall not be limited by the provisions of any workers' compensation act or similar act. Consultant expressly waives any statutory immunity under such statutes or laws as to the Indemnitees. Consultant' s indemnity obligation set forth in this Section 18.0 shall not be limited by the limits of any policies of insurance required or provided by Consultant pursuant to this Agreement.

18.4. Insurance Requirements Not Limiting. City does not, and shall not, waive any rights that it may possess against Consultant because of the acceptance by City, or the deposit with City, of any insurance policy or certificate required pursuant to this Agreement. The indemnities and obligations in this Section shall apply regardless of whether or not any insurance policies are determined to be applicable to the Liabilities asserted against City or any of the other Indemnitees.

18. 5. Survival of Terms. Consultant' s covenants, under this Section 18. 0 shall survive the expiration or termination of this Agreement

19. 0 Non -Discrimination and Equal 'Employment Opportunity Consultant affirmatively represents that it is an equal opportunity employer. In the performance of this Agreement, Consultant shall not discriminate against any subcontractor, employee, or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex, gender, sexual orientation, gender identity, gender expression, marital status, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, or any other basis prohibited by law. Consultant will take affirmative action to ensure that subcontractors and applicants are employed, and that employees are treated during employment, without regard to their race, color, religious creed, sex, gender, gender identity, gender expression, marital status, national origin,

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ancestry, age, physical disability, mental disability, medical condition, genetic information or sexual orientation, or any other basis prohibited by law.

20. 0 Labor Certification
By its signature hereunder, Consultant certifies that it is aware of the provisions of Section 3700 of the California Labor Code that require every employer to be insured against liability for Workers' Compensation or to undertake self-insurance in accordance with the provisions of that Code and agrees to comply with such provisions before commencing the performance of the Services.

21. 0 Prevailing Wage and Payroll Records
If this Agreement calls for services that, in whole or in part, constitute " public works" as defined in the California Labor Code, then Consultant shall comply in all respects with all applicable provisions of the California Labor Code, including those set forth in Exhibit C, attached hereto and incorporated by reference herein.

22. 0 Entire Agreement
This Agreement contains the entire agreement of the Parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings, or agreements. This, Agreement may only be modified by a writing signed by both Parties.

23.0 Severability
The invalidity in whole or in part of any provisions of this Agreement shall not void or affect the validity of the other provisions of this Agreement.

24.0 Governing Law
This Agreement shall be governed by and construed in accordance with the laws of the State of California.

25.0 No Third Party Beneficiaries
This Agreement is made solely for the benefit of the Parties to this Agreement and their respective successors and assigns, and no other person or entity shall be deemed to have any rights hereunder against either party by virtue of this Agreement.

26.0 Waiver

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No delay or omission to exercise any right, power or remedy accruing to City under this Agreement shall impair any right, power or remedy of City, nor shall it be construed as a waiver of, or consent to, any breach or default. No waiver of any breach, any failure of a condition, or any right or remedy under this Agreement shall be ( 1) effective unless it is in writing and signed by the Party making the waiver, ( 2) deemed to be a waiver of, or consent to, any other breach, failure' of a condition, or right or remedy, or ( 3) deemed to constitute a continuing waiver unless the writing expressly so states.

27.0 Prohibited Interests; Conflict of Interest

27. 1. Consultant covenants that it presently has no interest and shall not acquire any interest, direct or indirect, which may be affected by the Services, or which would conflict in any manner with the performance of the Services.

27.2. Consultant further warrants and maintains that it has not employed or retained any person or entity, other than a bona fide employee working exclusively for Consultant, to solicit or obtain this Agreement. Nor has Consultant paid or agreed to pay any person or entity, other than a bona fide employee working exclusively for Consultant, any fee, commission, gift, percentage, or any other consideration contingent upon the execution of this Agreement. Upon any breach or violation of this warranty, City shall have the right, at its sole and absolute discretion, to terminate this Agreement without further liability, or to deduct from any sums payable to Consultant hereunder the full amount or value of any such fee, commission, percentage or gift.

27.3. Consultant warrants and maintains that it has no knowledge that any officer or employee of City has any interest, whether contractual, non - contractual, financial, proprietary, or otherwise, in this transaction or in the business of Consultant, and that if any such interest comes to the knowledge of Consultant at any time during the term of this Agreement, Consultant shall immediately make a complete, written disclosure of such interest to City, even if such interest would not be deemed a prohibited " conflict of interest" under applicable laws as described in this subsection.

28.0 Final Payment Acceptance Constitutes Release
The acceptance by Consultant of the final payment made under this Agreement shall operate as and be a release of City from all claims and liabilities for

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compensation to Consultant for anything done, furnished or relating to Consultant' s work or services. Acceptance of payment shall be any negotiation of City' s check or the failure to make a written extra compensation claim within ten calendar days of the receipt of that check. However, approval or payment by City shall not constitute, nor be deemed, a release of the responsibility and liability of Consultant, its employees, subcontractors and agents for the accuracy and competency of the information provided and/ or work performed; nor shall such approval or payment be deemed to be an assumption of such responsibility or liability by City for any defect or error in the work prepared by Consultant, its employees, subcontractors and agents.

29. 0 Corrections
In addition to the indemnification obligations set forth above, Consultant shall correct, at its expense, all errors in the work which may be disclosed during City' s review of Consultant' s report or plans. Should Consultant fail to make such correction in a reasonably timely manner, such correction may be made by City, and the cost thereof shall be charged to Consultant. In addition to all other available remedies, City may deduct the cost of such correction from any retention amount held by City or may withhold payment otherwise owed Consultant under this Agreement up to the amount of the cost of correction.

30. 0 Non -Appropriation of Funds.

Payments to be made to Consultant by City for any Services performed within the current fiscal year are within the current fiscal budget and within an available, unexhausted fund. In the event that City does not appropriate sufficient funds for payment of Consultant's Services beyond the current fiscal year, this Agreement shall cover payment for Consultant' s Services only to the conclusion of the last fiscal year in which City appropriates sufficient funds and shall automatically terminate at the conclusion of such fiscal year.

31. 0 Mutual Cooperation

31. 1. City's Cooperation. City shall provide Consultant with all pertinent Data, documents and other requested information as is reasonably available for Consultant's proper performance of the Services required under this Agreement.

31. 2. Consultant' s Cooperation. In the event any claim or action is brought against City relating to Consultant' s performance of Services rendered under this Agreement, Consultant shall render any reasonable assistance that City requires.

32. 0 Time of the Essence
Time is of the essence in respect to all provisions of this Agreement that specify a time for performance; provided, however, that the foregoing shall not be

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construed to limit or deprive a Party of the benefits of any grace or use period allowed in this Agreement.

33. 0 Attorneys' Fees
If either party commences an action against the other party, either legal, administrative or otherwise, arising out of or in connection with this Agreement, the prevailing party in such litigation shall be entitled to have and recover from the losing party all of its attorneys' fees and other costs incurred in connection therewith.

34.0 Exhibits
All exhibits referenced in this Agreement are hereby incorporated into the Agreement as if set forth in full herein. In the event of any material discrepancy between the terms of any exhibit so incorporated and the terms of this Agreement, the terms of this Agreement shall control.

35. 0 Corporate Authority
The person executing this Agreement on behalf of Consultant warrants that he or she is duly authorized to execute this Agreement on behalf of said party and that by his or her execution, the Consultant is formally bound to the provisions of this Agreement.

IN WITNESS WHEREOF, the Parties hereto, through their respective authorized representatives have executed this Agreement as of the date and year first above written.

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0 CITY OF SEAL BEACH CONSULTANT:

ALL "' WLM
TRANSTECH ENGINEERS, INC.

By: By:

Jill R. Ingram, City Maa e Name: Ayla Jefferson
104 Its: Director of Building and Safety

4. Services
Attest:
ca By:
o
Name: Dennis Tarango
By. , - - Its: Director of Building and Safety
oria D. H' er,- , i 2C, r
Services
Please note, two signatures required
Approved as to For for corporations pursuant to California Corporations Code Section 313 from
each of the following categories: ( i) the
By. chairperson of the board, the president
raig A. Steele, City Attorney or any vice president, and ( ii) the secretary, any assistant secretary, the
chief financial officer or any assistant
treasurer of such corporation.)
23050803

PROOF OF AUTHORITY TO BIND

CONTRACTING PARTY REQUIRED

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CONSULTANT: TRANSTECH ENGINEERS, INC.

By:

Name: Allen Capr
Its: President
By:

Name: Sybil Cayj.r'
Its: Secretary
230508ov3
14 of 19

EXHIBIT A

SCOPE OF SERVICES
Transtech will provide BUILDING AND SAFETY SERVICES, PLAN CHECK, BUILDING OFFICIAL AND INSPECTOR per the following special rates to the City:

Building Official 110/ hr., 2 days a week, or as services are needed Building Inspector 75/hr., 40 hrs. a week and additional 8 hrs. every two to three weeks, or as services are needed
Permit Technician 70/ hr., as needed
Plan Checks 65% of the plan check fees per City Fee Schedule Any other services
requested
Per the Transtech Standard Hourly Rates ,
Any other services that .may be requested by the City will be provided based on the specific scope of work and fees to be established per Transtech' s current standard hourly rates in Exhibit B. `

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EXHIBIT B

SCHEDULE OF HOURLY RATES
TRANSTECH ENGINEERS, INC.

SCHEDULE OF HOURLY RATES
Effective through June 30, 2022
ENGINEERING T801
Engineering Technician 95
Assistant CAD Drafter 115
Senior CAD Drafter 135
Associate Designer 140
Senior Designer 150
Design Project Manager 185
Assistant Engineer 120
Staff/ Associate Civil Engineer 145
145
Supervising PW Inspector
Senior Civil Engineer 195
Traffic Analyst Technician 10
Associate Traffic Analyst 130
Senior Traffic Analyst 150
Professional Transportation Planner 165
Traffic Engineer Technician 95
Associate Traffic Engineer 145
Traffic Engineer 165
Senior Traffic Engineer 185
Project Manager 170
Senior Project Manager 185
Deputy City Engineer 160
City Engineer 175
Principal Engineer 195

CONSTRUCTION MANAGEMENT
LaborComprjance Analyst
Funds Coordinator $ 140
Utility Coordinator 150
Office Engineer 135
Construction Inspector 135
Senior Construction Inspector 145
Construction Manager 185
Resident Engineer 185

PUBLIC WORKS INSPECTION
Public Works Insnector M.35)
Senior Public Works Inspector 145
Supervising PW Inspector 150

SURVEY AND MAPPING
Survey Analyst Mfi
Senior Survey Analyst 145
2 Man Survey Crew 310
Survey & Mapping Specialist 175
Licensed Land Surveyor 190

FUNDING & GRANT
WRITING Funds Analyst
Senior Funds Analyst
min
140
Graphic & Rendering Designer 125
Grant Writer 155
Funds & Grant Project Manager 175
Permit Technician
Plan Check Technician 90
Building Inspector 110
Senior Inspector 125
Plans Examiner/ Checker 135
Plan Check Engineer 150
Deputy Building Official 150
Building Official 160

PLANNING
Community Development
Technician 80
Planning Technician 85
Assistant Planner 120
Associate Planner 135
Senior Planner 155
Planning Manager 165

ADMINISTRATIVE STAFF
Administrative/ Clerical
Project Accountant 80
The above fees will be increased each year July 9st automatically by the percentage change Los Angeles - Long Beach -Anaheim California Consumer Price Index -All Urban Consumers (" CPI - U") for the preceding twelve- month period as calculated for February by the U. S. Department of Labor Bureau of Labor Statistics and published by the United States Bureau of Labor Statistic.

EXHIBIT C

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TERMS FOR COMPLIANCE WITH CALIFORNIA LABOR LAW REQUIREMENTS

1. This Agreement calls for services that, in whole or in part, constitute " public works" as defined in Division 2, Part 7, Chapter 1 ( commencing with Section 1720) of the California Labor Code (" Chapter 1"). Further, Consultant acknowledges that this Agreement is subject to ( a) Chapter 1 and ( b) the rules and regulations established by the Department of Industrial Relations (" DIR") implementing such statutes. Therefore, as to those Services that are " public works", Consultant shall comply with and be bound by all the terms, rules and regulations described in 1( a) and 1( b) as though set forth in full herein.

3. Consultant shall. be registered with the Department of Industrial Relations in accordance with California Labor. Code Section 1725. 5 and has provided proof of registration to City prior to the Effective Date of this Agreement. Consultant shall not perform work with any subcontractor that is not registered with DIR pursuant to Section 1725.5. Consultant and subcontractors shall maintain their registration with the DIR in effect throughout the duration of this Agreement. If Consultant or any subcontractor ceases to be registered with DIR at any time during the duration of the project, Consultant shall immediately notify City.

4. Pursuant to Labor Code Section 1771. 4, Consultant' s Services are subject to compliance monitoring and enforcement by DIR. Consultant shall post job site notices, as prescribed by DIR regulations.

5. Pursuant to Labor Code Section 1773.2, copies of the prevailing rate of per diem wages for each craft, classification, or type of worker needed to perform the Agreement are on file at City Hall and will be made available to any interested party on request.

Consultant acknowledges receipt of a copy of the DIR determination of such prevailing rate of per diem wages, and Consultant shall post such rates at each job site covered by this Agreement.

6. Consultant shall comply with and be bound by the provisions of Labor Code Sections 1774 and 1775 concerning the payment of prevailing rates of wages to workers and the penalties for failure to pay prevailing wages. Consultant shall, as a penalty to City, forfeit 200. 00 for each calendar day, or portion thereof, for each worker paid less than the prevailing rates as determined by the DIR for the work or craft in which the worker is employed for any public work done pursuant to this Agreement by Consultant or by any subcontractor.

7. Consultant shall comply with and be bound by the provisions of Labor Code Section 1776, which requires Consultant and each subcontractor to: keep accurate payroll records and verify such records in writing under penalty of perjury, as specified in Section 1776; certify and make such payroll records available for inspection as provided by Section 1776; and inform City of the location of the records.

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8. Consultant shall comply with and be bound by the provisions of Labor Code Sections 1777. 5, 1777. 6 and 1777. 7 and California Code of Regulations, Title 8, Section 200 et seq. concerning the employment of apprentices on public works projects. Consultant shall be responsible for compliance with these aforementioned Sections for all apprenticeable occupations. Prior to commencing work under this Agreement, Consultant shall provide City with a copy of the information submitted to any applicable apprenticeship program. Within 60 days after concluding work pursuant to this Agreement, Consultant and each of its subcontractors shall submit to City a verified statement of the journeyman and apprentice hours performed under- this Agreement.

10. Consultant acknowledges that eight hours labor constitutes a legal day' s work.

Consultant shall comply with and be bound by Labor Code Section 1810. Consultant shall comply with and be bound by the provisions of Labor Code Section 1813 concerning penalties for workers who work excess hours. Consultant shall, as a penalty to City, forfeit $ 25. 00 for each worker employed in the performance of this Agreement by Consultant or by any subcontractor for each calendar day during which such worker is required or permitted to work more than eight hours in any one calendar day and 40 hours in any one calendar week in violation of the provisions of Division 2, Part 7, Chapter 1, Article 3 of the Labor Code. Pursuant to Labor Code Section 1815, work performed by employees of Consultant. in excess of eight hours per day, and 40 hours during any one week shall be permitted upon public work upon compensation for all hours worked in excess of eight hours per day at not less than one and one-half times the basic rate of pay.

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take all actions necessary to enforce such contractual provisions and ensure subcontractor' s compliance, including without limitation, conducting a periodic review of the certified payroll records of the subcontractor and upon becoming aware of the failure of the subcontractor to pay his or her workers the specified prevailing rate of wages. Consultant shall diligently take corrective action to halt or rectify any failure.

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Agenda Item G

AGENDA STAFF REPORT
DATE: March 14, 2022
TO: Honorable Mayor and City Council
THRU: Jill R. Ingram, City Manager
FROM: Sherry Johnson, CPA, Interim Finance Director/Treasurer SUBJECT: Approving the Mid-Year Budget Amendment 22-09-01 ________________________________________________________________ SUMMARY OF REQUEST:

That the City Council adopt Resolution 7259 approving Budget Amendment BA 22-09-01 to increase the various budgeted amounts as detailed in the resolution.

BACKGROUND AND ANALYSIS:

Mid-Year Budget Adjustments
The City Council adopted the Fiscal Year 2021-2022 Budget on June 14, 2021.

During the mid-year budget analysis, certain budget adjustments were identified as being necessary to continue operations and ensure budgetary compliance.

Attachment B provides detailed descriptions for each of the proposed budget adjustments. There are sufficient revenues, cash and/or fund balances to support the proposed budget adjustments.

A summary of the proposed budget adjustments are shown below.

Revised/ Budget
Adopted Proposed Amendment
Description Account Budget Budget (Difference)
Overtime - Non-Sworn 201-210-0600-50060 85,000 110,000 25,000 Training and Meetings 201-210-0600-51240 10,000 35,000 25,000 Equipment and Materials 201-210-0600-52100 31,000 70,000 39,000 Grant Reimbursement - PLHA 215-300-0036-42400 - 49,151 49,151 Contract Professional 215-300-0036-51280 - 49,151 49,151 General Plan - Building 103-300-0231-51301 - 200,000 200,000 Net Increase Revenues 49,151
Net Increase Expenditures $ 338,151

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ENVIRONMENTAL IMPACT:

There is no environmental impact related to this item.

LEGAL ANALYSIS:

No legal analysis is required for this item.

FINANCIAL IMPACT:

The proposed budget adjustments result in an increase in revenues of $49,151 and an increase in appropriations of $338,151 in funds 103, 201 and 215.

STRATEGIC PLAN:

This item is not applicable to the Strategic Plan.

MEASURE BB:

Some of the increases in appropriations are applicable to Measure BB, the Seal Beach Neighborhood and Essential Services Protection Measure.

RECOMMENDATION:

That the City Council adopt Resolution 7259 approving Budget Amendment BA 22-09-01 to increase the various budgeted amounts as detailed in the resolution.

SUBMITTED BY: NOTED AND APPROVED:

Sherry Johnson Jill R. Ingram
Sherry Johnson, CPA, Interim
Finance Director/Treasurer
Jill R. Ingram, City Manager
ATTACHMENTS:

A. Resolution 7259
B. Mid-Year Budget Amendment 22-09-01
1 RESOLUTION 7259

A RESOLUTION OF THE SEAL BEACH CITY COUNCIL
APPROVING MID-YEAR BUDGET AMENDMENT 22-09-01
WHEREAS, on May 13, 2021 and May 25, 2021, the City Council conducted budget workshops to provide an opportunity to the public to comment on the Proposed Fiscal Year 2021-22 Operating and Capital Improvement Budget; and,
WHEREAS, on June 14, 2021, the City Council unanimously approved Resolution 7167, adopting the City’s Fiscal Year 2021-2022 Budget; and, WHEREAS, current situations and conditions have brought about the need to amend certain budgets due to changes in operations.

NOW, THEREFORE, THE SEAL BEACH CITY COUNCIL DOES HEREBY RESOLVE:

SECTION 1. the City Council hereby approves Budget Amendment No. BA 22- 09-01 to modify the Fiscal Year 2020/2021 budget as follows:

AYES: Council Members
NOES: Council Members
ABSENT: Council Members
ABSTAIN: Council Members

Joe Kalmick, Mayor
ATTEST:

Gloria D. Harper, City Clerk
STATE OF CALIFORNIA }
COUNTY OF ORANGE } SS
CITY OF SEAL BEACH }
I, Gloria D. Harper, City Clerk of the City of Seal Beach, do hereby certify that the foregoing resolution is the original copy of Resolution 7259 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 14th day of March, 2022.

Gloria D. Harper, City Clerk
Budget Amendment BA 22-09-01
Revised/ Budget
Adopted Proposed Amendment
Description Account Budget Budget (Difference) Notes
Overtime - Non-Sworn 201-210-0600-50060 85,000 110,000 25,000 Special events and various trainings Training and Meetings 201-210-0600-51240 10,000 35,000 25,000 Staff trainings Equipment and Materials 201-210-0600-52100 31,000 70,000 39,000 Need to purchase equipment/ammunitions Grant Reimbursement - PLHA 215-300-0036-42400 - 49,151 49,151 Permanent Local Housing Allocation - Leisure World bathroom renovation Contract Professional 215-300-0036-51280 - 49,151 49,151 Permanent Local Housing Allocation - Leisure World bathroom renovation General Plan - Building 103-300-0231-51301 - 200,000 200,000 Consultant for CEQA Net Increase Revenues 49,151
Net Increase Expenditures $ 338,151
Agenda Item H

AGENDA STAFF REPORT
DATE: March 14, 2022
TO: Honorable Mayor and City Council
THRU: Jill R. Ingram, City Manager
FROM: Sherry Johnson, Interim Director of Finance/City Treasurer SUBJECT: City of Seal Beach Annual Audit Reports for Fiscal Year Ended June 30, 2021
________________________________________________________________ SUMMARY OF REQUEST:

That the City Council receive and file the following documents for fiscal year ending June 30, 2021:

A. Audit Communication Letter
B. Report on Internal Control
C. Annual Comprehensive Financial Report (ACFR)
D. Appropriations Limit Final Report
BACKGROUND AND ANALYSIS:

The audit firm of The Pun Group Accountants & Advisors has completed the annual audit of the City of Seal Beach (City) for the fiscal year ended June 30, 2021. The audit was conducted in accordance with generally accepted auditing standards and included examining, on a test basis, evidence supporting the amounts and disclosures to obtain reasonable assurance that the financial statements are free of material misstatements.

In the opinion of the auditors, the financial statements fairly present, in all material respects, the financial position of the City of Seal Beach at June 30, 2021. The 2021 ACFR (Attachment C) is included for your information and use.

The ACFR will be submitted to the Government Finance Officers Association to, once again, be considered for the Certificate of Achievement for Excellence in Financial Reporting.

The purpose of the Audit Communication Letter (Attachment A) is to provide a mechanism for communication with the governing body highlighting significant issues that may arise during the audit process. As indicated, the City’s financial statements were clearly presented.

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The purpose of the Report on Internal Control (Attachment B) is to help the auditor in designing audit procedures for the purpose of expressing an opinion on the financial statements.

The purpose of the Appropriations Limit Final Report (Attachment D) is to attest that the calculation was performed using the correct methodology and was correctly calculated based upon the information provided.

The Council Audit Committee reviewed and discussed these items at a meeting on March 8, 2022.

ENVIRONMENTAL IMPACT:

This action is exempt from the California Environmental Quality Act, because it is not defined as a “project” under CEQA.

LEGAL ANALYSIS:

The City Attorney has reviewed this staff report and approved it as to form.

FINANCIAL IMPACT:

There is no financial impact in receiving this information.

STRATEGIC PLAN:

This item is not applicable to the Strategic Plan.

MEASURE BB:

Some of the increases in appropriations are applicable to Measure BB, the Seal Beach Neighborhood and Essential Services Protection Measure.

RECOMMENDATION:

That the City Council receive and file the following documents for fiscal year ending June 30, 2021:

A. Audit Communication Letter
B. Report on Internal Control
C. Annual Comprehensive Financial Report (ACFR)
D. Appropriations Limit Final Report

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SUBMITTED BY: NOTED AND APPROVED:

Sherry Johnson Jill R. Ingram ______
Sherry Johnson, CPA, Jill R. Ingram, City Manager
Interim Director of Finance/City Treasurer
ATTACHMENTS:

A. Audit Communication Letter
B. Report on Internal Controls
C. Annual Comprehensive Financial Report (ACFR)
D. Appropriations Limit Final Report
February 25, 2022
To the Honorable Mayor and Members of the City Council
of the City of Seal Beach
Seal Beach, California
We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Seal Beach (the “City”) for the year ended June 30, 2021. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards and Government Auditing Standards, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated June 10, 2021. Professional standards also require that we communicate to you the following information related to our audit.

Significant Audit Findings
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note 1 to the basic financial statements. As described in Note 1 to the financial statements, the City implemented the Government Accounting Standard Board Statement No. 84, Fiduciary Activities and No. 98, The Annual Comprehensive Financial Report. No other new accounting policies were adopted and the application of existing policies was not changed during 2021. We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period.

Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events.

Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. As part of our audit, we evaluated the key factors and assumptions used to develop the accounting estimates described above and in determining that it is reasonable in relation to the financial statements taken as a whole.

The most sensitive estimates affecting the City’s financial statements were:
 Management’s estimate of the investment fair market value is based on information provided by U.S. Bank, the custodial of the investments in the U.S. Government Sponsored Enterprise Securities, Negotiable Certificates of Deposit, Foreign Negotiable Certificates of Deposit, based on interactive data. We evaluated the key factors and assumptions used to develop the investment fair market value in determining that it is reasonable in relation to the financial statements taken as a whole.
 Management’s estimate of the depreciation on capital assets is based on the industry standard and past experience on actual useful life of the asset groups. We evaluated the key factors and assumptions used to develop the depreciation on capital assets in determining that it is reasonable in relation to the financial statements taken as a whole. 200 E. Sandpointe Ave., Suite 600, Santa Ana, California 92707 Tel: 949-777-8800 • Fax: 949-777-8850
www.pungroup.cpa
To the Honorable Mayor and Members of the City Council
of the City of Seal Beach
Seal Beach, California

Page 2 ends

 Management’s estimate of the net other postemployment benefits (“OPEB”) liability is based on the actuarial valuation on total OPEB liability and financial statements on fiduciary net position. We evaluated the key factors and assumptions used to develop the OPEB liability in determining that it is reasonable in relation to the financial statements taken as a whole.
 Management’s estimate of the net pension liabilities is based on the actuarial valuation on total pension liability and based on audited financial statements on fiduciary net position for CalPERS plans. We evaluated the key factors and assumptions used to develop the net pension liability in determining that it is reasonable in relation to the financial statements taken as a whole.

Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the financial statements were:
 Note 1 – Summary of Significant Accounting Policies
 Note 9 – Defined Benefit Pension Plans
 Note 10 – Other Postemployment Benefits (“OPEB”) Plan  Note 13 – Individual Fund Disclosure
The financial statement disclosures are neutral, consistent, and clear.

Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.

Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management.

Management has corrected all such misstatements. In addition, none of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to each opinion unit’s financial statements taken as a whole.

Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditors’ report. We are pleased to report that no such disagreements arose during the course of our audit.

Management Representations
We have requested certain representations from management that are included in the management representation letter dated February 25, 2022.

To the Honorable Mayor and Members of the City Council
of the City of Seal Beach
Seal Beach, California

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Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to City’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants.

Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention.

Other Matters
We applied certain limited procedures to the Management’s Discussion and Analysis, the Budgetary Comparison Schedules, the Schedule of the City’s Proportionate Share of the Net Pension Liability and Related Ratios, the Schedule of the Contributions – Pensions, the Schedule of Changes in Net Other Postemployment Benefits Liability and Related Ratios, and the Schedule of Contributions – Other Postemployment Benefits, which are required supplementary information (the “RSI”) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI.

We were engaged to report on the Combining and Individual Nonmajor Fund Financial Statements, which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves.

We were not engaged to report on the Introductory and the Statistical Sections, which accompany the financial statements but are not RSI. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it.

Restriction on Use
This information is intended solely for the information and use of the City Council and management of the City and is not intended to be, and should not be, used by anyone other than these specified parties.

Very truly yours,
Santa Ana, California

REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND

ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS

PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Independent Auditors’ Report
To the Honorable Mayor and Members of the City Council
of the City of Seal Beach
Seal Beach, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Seal Beach, California (the “City”) as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the City's basic financial statements, and have issued our report thereon dated February 25, 2022.

Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City's internal control over financial reporting (“internal control”) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do not express an opinion on the effectiveness of the City's internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. 200 E. Sandpointe Ave., Suite 600, Santa Ana, California 92707 Tel: 949-777-8800 • Fax: 949-777-8850
www.pungroup.cpa
To the Honorable Mayor and Members of the City Council
of the City of Seal Beach
Seal Beach, California

Page 2 ends

166
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Santa Ana, California
February 25, 2022

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City of Seal Beach
Annual Comprehensive Financial Report
For the Year Ended June 30, 2021
Table of Contents
Page

INTRODUCTORY SECTION (UNAUDITED)
Letter of Transmittal ................................................................................................................................................... i Certificate of Achievement for Excellence in Financial Reporting – Government Finance Officers Association ......................................................................................................... v Organizational Chart ................................................................................................................................................. vi Principal Officials of the City of Seal Beach ........................................................................................................... vii

FINANCIAL SECTION
Independent Auditors’ Report on the Financial Statements ...................................................................................... 1 Management’s Discussion and Analysis (Required Supplementary Information) (Unaudited) ............................. 5 Basic Financial Statements:

Government–Wide Financial Statements:

Statement of Net Position .................................................................................................................................. 16 Statement of Activities ...................................................................................................................................... 18 Fund Financial Statements:

Governmental Fund Financial Statements:

Balance Sheet .............................................................................................................................................. 25 Reconciliation of the Governmental Funds Balance Sheet
to the Government–Wide Statement of Net Position ........................................................................... 26 Statement of Revenues, Expenditures,
and Changes in Fund Balances ............................................................................................................. 27 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government–Wide Statement of Activities ......................................................................................................................... 28 Proprietary Fund Financial Statements:

Statement of Net Position ........................................................................................................................... 30 Statement of Revenues, Expenses, and Changes in Net Position ............................................................... 33 Statement of Cash Flows ............................................................................................................................ 34 Fiduciary Fund Financial Statements:

Statement of Fiduciary Net Position ........................................................................................................... 39 Statement of Change in Fiduciary Net Position .......................................................................................... 40 Index to the Notes to the Basic Financial Statements ......................................................................................... 43 Notes to the Basic Financial Statements .............................................................................................................. 45 City of Seal Beach
Annual Comprehensive Financial Report
For the Year Ended June 30, 2021
Table of Contents (Continued)
Page
FINANCIAL SECTION (Continued)
Required Supplementary Information (Unaudited):

Budgetary Comparison Schedule – General Fund ......................................................................................................... 87 Schedule of the City's Proportionate Share of the Net Pension Liability and Related Ratios ........................................ 88 Schedule of Contributions – Pensions ............................................................................................................................ 90 Schedule of Changes in Net Other Postemployment Benefits Liability and Related Ratios ......................................... 93 Schedule of Contributions – Other Postemployment Benefits ....................................................................................... 94 Notes to the Budgetary Comparison Schedule ............................................................................................................... 95 Supplementary Information:

Schedule of Revenues, Expenditures, and Change in Fund Balance – Budget and Actual Capital Projects and Equipment Capital Projects Fund ..................................................................................... 99 Nonmajor Governmental Funds:

Combining Balance Sheet ............................................................................................................................... 102 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ....................................... 107 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual Street Lighting Special Revenue Fund ..................................................................................................... 112 Supplemental Law Enforcement Special Revenue Fund .......................................................................... 113 Detention Center Special Revenue Fund .................................................................................................. 114 Police Asset Forfeiture Special Revenue Fund ......................................................................................... 115 Air Quality Improvement Special Revenue Fund ..................................................................................... 116 Traffic Impact AB 1600 Special Revenue Fund ....................................................................................... 117 State Gasoline Tax Special Revenue Fund ............................................................................................... 118 Measure M2 Special Revenue Fund ......................................................................................................... 119 Community Development Block Grant Special Revenue Fund ............................................................... 120 Police Grants Special Revenue Fund ........................................................................................................ 121 Landscape District Special Revenue Fund ............................................................................................... 122 Heron Pointe Special Revenue Fund ........................................................................................................ 123 Pacific Gateway Special Revenue Fund ................................................................................................... 124 Seal Beach Cable Special Revenue Fund ................................................................................................ 125 SB1 Program Special Revenue Fund ........................................................................................................ 126 CARES Act Special Revenue Fund .......................................................................................................... 127 Citywide Grants Special Revenue Fund ................................................................................................... 128 City Debt Service Fund ............................................................................................................................. 129

Internal Service Fund Financial Statements:

Combining Statement of Net Position ............................................................................................................. 133 Combining Statement of Revenues, Expenses, and Change in Net Position .................................................. 134 Combining Statement of Cash Flows .............................................................................................................. 135 Custodial Funds Financial Statements:

Combining Statement of Fiduciary Net Position ............................................................................................. 139 Combining Statement of Changes in Fiduciary Net Position .......................................................................... 140 City of Seal Beach
Annual Comprehensive Financial Report
For the Year Ended June 30, 2021
Table of Contents (Continued)
Page
STATISTICAL SECTION (Unaudited)
Net Position by Component ......................................................................................................................................... 144 Changes in Net Position ............................................................................................................................................... 146 Fund Balances of Governmental Funds ....................................................................................................................... 150 Changes in Fund Balances of Governmental Funds ..................................................................................................... 152 Assessed Value and Estimated Actual Value of Taxable Property .............................................................................. 154 Direct and Overlapping Property Tax Rates ................................................................................................................ 155 Principal Property Taxpayers ....................................................................................................................................... 156 Property Tax Levies and Collections ........................................................................................................................... 157 Ratios of Outstanding Debt by Type ............................................................................................................................ 158 Ratios of General Bonded Debt Outstanding ............................................................................................................... 160 Schedule of Direct and Overlapping Debt .................................................................................................................... 161 Legal Debt Margin Information ................................................................................................................................... 162 Pledged-Revenue Coverage ......................................................................................................................................... 164 Demographic and Economic Statistics ......................................................................................................................... 165 Top 25 Sales Tax Producers ......................................................................................................................................... 166 Full-Time and Part-Time City Employees by Function ............................................................................................... 167 Operating Indicators by Function ................................................................................................................................. 168 Capital Asset Statistics by Function ............................................................................................................................. 170 This page intentionally left blank.
i
February 25, 2022
Honorable Mayor, Members of the City Council and Citizens of the City of Seal Beach:

City of Seal Beach staff is pleased to submit for your information the Annual Comprehensive Financial Report (ACFR) of the City of Seal Beach (City) for the fiscal year ended June 30, 2021. Responsibility for both the accuracy of presented data and the completeness and fairness of the presentation including all disclosures rests with the City. In our opinion, the data is accurate in all material aspects, is presented in a manner designed to fairly set forth the financial position and results of operations of the City, and contains all disclosures necessary to enable the reader to gain an understanding of the City’s financial affairs.

The financial statements are prepared in accordance with Generally Accepted Accounting Principals (GAAP) as promulgated by the Government Accounting Standards Board (GASB). This report consists of management’s representations concerning the finances of the City. Consequently, management assumes full responsibility for the completeness and reliability of all of the information presented in this report. To provide a reasonable basis for making these presentations, management of the City has established a comprehensive internal control framework that is designed to protect the City’s assets from loss, theft, or misuse, and to compile reliable information for the preparation of this report in conformity with GAAP. As Management, we assert to the best of our knowledge and belief, this financial report is complete and reliable in all material respects within the reasonable assurance of the internal control framework.

The City’s financial statements have been audited by The Pun Group, a public accounting firm fully licensed and qualified to perform audits of the state and local governments within the State of California. The audit was designed to obtain reasonable assurance about whether the basic financial statements are free of material misstatement. The independent auditor concluded, based on the audit, that there was a reasonable basis for rendering an unmodified opinion that the City of Seal Beach’s financial statements for the year ended June 30, 2021, are fairly presented in conformity with Generally Accepted Accounting Principles. The independent auditor’s report is presented as the first component of the financial section of this report.

GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statement in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement MD&A and should be read in conjunction with that section. The City’s MD&A can be found immediately following the report of the independent auditors in the financial section of the ACFR.

PROFILE OF THE CITY
The City of Seal Beach, located on the coast of northwestern Orange County California, was incorporated on October 27, 1915. The City charter, which was adopted in 1964, established the form of government, states the powers and duties of the City Council, and establishes various City Offices.

The City is operated under the City Council/City Manager form of government, and is governed by a five-member city council elected by district serving four-year alternating terms and who, in turn elect the Mayor and Mayor Pro Tem from among themselves for a one year term. The governing council is responsible for policy-making, passing local ordinances, adopting the budget, appointing committees, and hiring the City Manager and City Attorney.

The City Manager is responsible for carrying out the policies and ordinances of the City Council, for overseeing the day-to-day operations of the City, and for appointing of all department heads. ii
The City provides a full range of services for the citizens utilizing a mix of contracts with other governmental entities or private companies. The City has its own Police Department and Marine Safety Department but contracts for fire and paramedic services through the Orange County Fire Authority (OCFA). The City also operates water and sewer utilities and contracts for refuse and sanitation treatment services.

Included in the financial statements are the following blended component units: Seal Beach Public Financing Authority, Seal Beach Parking Authority and Seal Beach Cable Communications Foundation.

The City is the home of Boeing Company Integrated Defense System international headquarters, the U.S. Naval Weapons Station, the first Leisure World Retirement Community and the 1,000 acre Seal Beach National Wildlife Refuge. The City’s one and a half miles of beaches and the public pier attracts more than 2,000,000 visitors each year making recreation an important factor in the local economy. Seal Beach has a variety of local beach front stores at Main Street which include several fine dining establishments. Throughout the year many exciting community events take place in which the residents, and visitors, enjoy and participate.

History of Seal Beach
The City has an area of 13.23 square miles and sits on the coast as the gateway to Orange County between the cities of Long Beach and Huntington Beach. In 1901 J.C. Ord, a Civil War veteran known as “the father of Seal Beach,” hired a 30–mule team to bring his small general store building from Los Alamitos to Bay City where he set it down at the southwest corner of crossroads now known as Main Street. J.C. Ord was the first Trustee, the first Mayor, Postmaster, and the first Judge. His store on Main Street was the Post Office and Court House and the jail house when it was necessary.

The population in 1915 was 250 persons, including children. Bay City was renamed Seal Beach in 1916. California Sea Lions, commonly called Seals, were a regular part of the scene along the coast and a perfect name for the new town.

On January 16, 1916, it was reported in the newspaper, the POST, that Frank Burt, who had managed the concessions at the recent Panama Pacific Exposition just closing in San Francisco, was coming to Seal Beach. His purpose was to establish an amusement zone for fun and frolic in this small beach village. The Jewel City Amusement Company was formed and a new 1,865 foot long pier was constructed in early summer 1916, and is the one of the longest wooden piers in California. The City became a popular recreation destination in the area, and featured a beach side amusement park before Disneyland was founded.

During World War II, the U.S. Navy purchased 5,256 acres of land and established the Naval Ammunition and Net Depot for storage and loading of ammunition for the Pacific Fleet.

The Seal Beach National Wildlife Refuge was established in 1972.

In 1961, Leisure World was built on 541 acres of the Hellman Ranch property and was annexed in 1964.

The Rossmoor Business Center was remodeled and now called the Shops at Rossmoor and was annexed by the City in 1962.

In 1964-65, the College Park East and West construction took place.

In 1969, Surfside Colony was annexed into Seal Beach and the City population grew to 24,441 by 1970.

ECONOMIC CONDITIONS
Local economy. Although the focus of this Annual Comprehensive Financial Report is the financial condition of the City at June 30, 2021, it may be best understood when it is considered from the broader perspective of the specific environment within which the City operates. Leading up to Fiscal Year 2020-2021, the country was facing devastating challenges and economic impacts related to COVID-19. The outlook at the beginning of the year was uncertain and many local governments were facing the probability of steep decline in revenues. The City’s met this challenge by evaluating how we provide central services to the Seal Beach community and we found ways to reduce operating and capital expenditures to help prevent operating deficits. Throughout Fiscal Year 2020-21, the City has seen a steady increase in revenues and appears to be showing economic recovery. iii
Long-term financial planning. The City of Seal Beach continues to implement cost saving measures to mitigate operating deficits in response to revenue declines related to the COVID-19 pandemic, while continuing to provide the core services for our residents, businesses, visitors, and protect all essential municipal services that contribute to the high quality of life within the City
The City has identified a critical need to invest in updated technology and thus, a major investment will be needed over the next five years. As a result, the City has invested in a new financial software and land management software. The City will be conducting an Information Technology Master Plan to help evaluate and prioritize other projects.

In addition, the City approved changes in the utility rates to address a structural deficit in the City’s Water Fund due to the rising cost of purchased water and other operating costs. The increases in operating costs have prevented the City from investing in much needed infrastructure improvements. This was offset by a reduction in sewer rates.

For the upcoming fiscal year, property taxes are expected to show steady growth in future years, which is the result of continued improvement in real estate values.

The Southern California region continues to show signs of economic recovery from the COVID-19 pandemic which can be partially attributed to the availability of a vaccine.

Major initiatives. The Strategic Plan goals are approved and/or affirmed by the City Council twice a year. The Strategic Plan goals and objectives are updated monthly at a City Council meeting. Many of these goals were reprioritized when the pandemic hit, however they remain priorities and include: Fiscal Sustainability, Organizational Culture and Community Outreach and Capital Projects.

FINANCIAL POLICIES AND PROCEDURES
Internal control structure. Management of the City is responsible for establishing and maintaining an adequate internal control structure. Internal accounting controls are designed to ensure that the assets of the City are protected from loss, theft, or misuse, and that adequate accounting data are compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles.

The internal control structure is designed to provide reasonable, but not absolute, assurance, that these objectives are met. The concept of reasonable assurance recognizes that: (1) the cost of the control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits require estimates and judgment by management.

Budgetary controls. The annual budget serves as the foundation for the City of Seal Beach’s financial planning and control. The City Council adopts an annual budget and appropriates the funds necessary to provide the services and operations for the fiscal year. The City Manager may make appropriation transfers within and between departments which do not result in an increase in appropriations. The City of Seal Beach City Council must approve all appropriation changes that result in an increase in appropriations.

AWARDS
GFOA Award Program – Comprehensive Annual Financial Report The Government Finance Officers Association of the United States (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Seal Beach for its Annual Comprehensive Financial Report for the fiscal year ended June 30, 2020. This was the nineteenth consecutive year that the City has received this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements.

A Certificate of Achievement is valid for a period of one year only. City staff believes that our current comprehensive annual financial report continues to meet the Certificate of Achievement Program’s requirements and we are submitting it to the GFOA again this year for award. iv

ACKNOWLEDGEMENTS
This report was made possible by the highly dedicated Finance staff with their special efforts and the teamwork, special thanks to the staff in the Finance Department. Sincere appreciation is also expressed to the City Council and City Manager for their interest and support, which made this presentation possible; and finally, to the City’s auditing firm of The Pun Group for their professional assistance.

Respectfully submitted,
Sherry E. Johnson, CPA
Interim Director of Finance/City Treasurer
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Seal Beach
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2020
Executive Director/CEO
v

ORGANIZATIONAL CHART
Exercise Administrative Control
Over All Departments
Agenda Preparation
Represents City in all legal matters Administrative Policies City Council Support
Computer Network Administration
Intergovernmental Relations
Special Studies/Projects
Policy Analysis
Risk Management
Financial Services/Reporting
Business Tax
Utility Billing/Cashiering Employee Benefits
Budget/Audit/Grants Classification/Compensation
Accounts Payable/Payroll
Debt Administration
Treasury/Investments
Successor Agency Administration
Engineering
Fleet Maintenance
Beach Maintenance
Water/Sewer Maintenance
Capital Projects
Planning Storm Drains
Building/Code Enforcement Building Maintenance
Development Review Street Maintenance
Community Development Block Grant Traffic and Transportation Land Use and Coastal Issues
General Plan and Code
Youth/Adult Class Activity
Special Event Permitting
Sports League/Events
Beach/Pool Safety
Jr. Lifeguard Program
Traffic/Patrol/Detective Services
Parking Control
Records Management Detention Center
Election Management

COMMUNITY

PUBLIC WORKS
FY 2020-2021
Orange County Fire Authority
Personnel Recruitment

MARINE SAFETY

FIRE SERVICES

CITY MANAGER

CITY ATTORNEY

HUMAN RESOURCES

MAYOR AND CITY COUNCIL

CITIZENS OF SEAL BEACH

COMMUNITY SERVICES

CITY CLERK

POLICE SERVICES

FINANCE

DEVELOPMENT
Yi

CITY OF SEAL BEACH

CALIFORNIA
Principal Officers
City Council
Joe Kalmick, Mayor
Mike Varipapa, Mayor Pro Tem
Thomas Moore, Council Member
Schelly Sustarsic, Council Member
Sandra Massa-Lavitt, Council Member
Executive Officers
Jill R. Ingram, City Manager
Craig A. Steele, City Attorney
Administrative Personnel
Patrick Gallegos, Assistant City Manager
Phil Gonshak, Chief of Police
Steve Myrter, Director of Public Works
Kelly A. Telford, Director of Finance
Alexa Smittle, Director of Community Development
Joe Bailey, Marine Safety Chief
Gloria D. Harper, City Clerk
vii
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INDEPENDENT AUDITORS’ REPORT
To the Honorable Mayor and Members of the City Council
of the City of Seal Beach
Seal Beach, California
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Seal Beach, California (the “City”), as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by Comptroller General of the United States.

Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the City's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we express no such opinion.

An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
200 E. Sandpointe Ave., Suite 600, Santa Ana, California 92707 Tel: 949-777-8800 • Fax: 949-777-8850
www.pungroup.cpa
To the Honorable Mayor and Members of the City Council
of the City of Seal Beach
Seal Beach, California

Page 2 ends

Seal Beach City CouncilMarch 14, 2022

Seal Beach City Council
March 14, 2022