5. 1. 1 Tyler Executive Sponsor
Tyler executive management has indirect involvement with the Project and is part of the Tyler escalation process. This team member offers additional support to the Project team and collaborates with other Tyler department managers as needed in order to escalate and facilitate implementation Project tasks and decisions.
Provides clear direction for Tyler staff on executing on the Project Deliverables to align with satisfying City of Seal Beach ' s overall organizational strategy.
Authorizes required Project resources.
Resolves all decisions and/ or issues not resolved at the implementation management level as part of the escalation process.
Acts as the counterpart to City of Seal Beach ' s executive sponsor.
5. 1. 2 Tyler Implementation Manager
Tyler implementation management has indirect involvement with the Project and is part of the Tyler escalation process. The Tyler project managers consult implementation management on issues and outstanding decisions critical to the Project. Implementation management works toward a solution with the Tyler Project Manager or with City of Seal Beach management as appropriate. Tyler executive management is the escalation point for any issues not resolved at this level.
Assigns Tyler Project personnel.
Provides support for the Project team.
Provides management support for the Project to ensure it is staffed appropriately and staff have necessary resources.
Monitors Project progress including progress towards agreed upon goals and objectives.
5. 1. 3 Tyler Project Manager
The Tyler project manager(s) provides oversight of the Project, coordination of Tyler resources between departments, management of the Project budget and schedule, effective risk and issue management, and is the primary point of contact for all Project related items. As requested by the client, the Tyler Project Manager provides regular updates to the client Steering Committee and other Tyler governance members. Tyler Project Manager' s role includes responsibilities in the following areas:
5. 1. 3. 1 Contract Management
Validates contract compliance throughout the Project.
Ensures Deliverables meet contract requirements.
Acts as primary point of contact for all contract and invoicing questions.
Prepares and presents contract milestone sign -offs for acceptance by City of Seal Beach project manager(s).
Coordinates Change Requests, if needed, to ensure proper Scope and budgetary compliance.
5. 1. 3. 2 Planning
Delivers project planning documents.
Defines Project tasks and resource requirements.
City ofSeal Beach
Tyler Technologies, Inc.
Page / 7
Develops initial Project schedule and Project Management Plan.
Collaborates with City of Seal Beach project manager( s) to plan and schedule Project timelines to achieve on- time implementation.
5. 1. 3. 3 Implementation Management
Tightly manages Scope and budget of Project to ensure Scope changes and budget planned versus actual are transparent and handled effectively and efficiently.
Establishes and manages a schedule and Tyler resources that properly support the Project Schedule and are also in balance with Scope/ budget.
Establishes risk/ issue tracking/ reporting process between City of Seal Beach and Tyler and takes all necessary steps to proactively mitigate these items or communicate with transparency to City of Seal Beach any items that may impact the outcomes ofthe Project.
Collaborates with City of Seal Beach ' s project manager( s) to establish key business drivers and success indicators that will help to govern Project activities and key decisions to ensure a quality outcome of the project.
Collaborates with City of Seal Beach' s project manager(s) to set a routine communication plan that will aide all Project team members, of both City of Seal Beach and Tyler, in understanding the goals, objectives, current status, and health of the Project.
5. 1. 3. 4 Resource Management
Acts as liaison between Project team and Tyler manager( s).
Identifies and coordinates all Tyler resources across all applications, Phases, and activities including development, forms, installation, reports, implementation, and billing.
Provides direction and support to Project team.
Manages the appropriate assignment and timely completion of tasks as defined in the Project Schedule, task list, and Go -Live Checklist.
Assesses team performance and adjusts as necessary.
Consulted on in Scope 3rd party providers to align activities with ongoing Project tasks.
5. 1. 4 Tyler Implementation Consultant
Completes tasks as assigned by the Tyler project manager( s).
Documents activities for services performed by Tyler.
Guides City of Seal Beach through software validation process following configuration.
Assists during Go -Live process and provides support until City of Seal Beach transitions to Client Services.
Facilitates training sessions and discussions with City of Seal Beach and Tyler staff to ensure adequate discussion of the appropriate agenda topics during the allotted time.
May provide conversion review and error resolution assistance.
5. 1. 5 Tyler Sales
Supports Sales to Implementation knowledge transfer during Initiate & Plan.
Provides historical information, as needed, throughout implementation.
Participates in pricing activities if additional licensing and/ or services are needed.
City of Seal Beach
Tyler Technologies, Inc.
Page / 8
S. 1. 6 Tyler Technical Services
Maintains Tyler infrastructure requirements and design document( s).
Involved in system infrastructure planning/ review( s).
Provides first installation of licensed software with initial database on servers.
Supports and assists the project team with technical/ environmental issues/ needs.
Deploys Tyler products.
Conducts GIS Planning.
Reviews GIS data and provides feedback to the client.
Loads client provided GIS data into the system.
5. 2 City of Seal Beach Roles & Responsibilities
City of Seal Beach resources will be assigned prior to the start of each Phase of the Project. One person may be assigned to multiple Project roles.
5. 2. 1 City of Seal Beach Executive Sponsor
The City of Seal Beach executive sponsor provides support to the Project by providing strategic direction and communicating key issues about the Project and its overall importance to the organization. When called upon, the executive sponsor also acts as the final authority on all escalated Project issues. The executive sponsor engages in the Project, as needed, in order to provide necessary support, oversight, guidance, and escalation, but does not participate in day-to-day Project activities. The executive sponsor empowers the City of Seal Beach steering committee, project manager( s), and functional leads to make critical business decisions for City of Seal Beach.
Champions the project at the executive level to secure buy -in.
Authorizes required project resources.
Actively participates in organizational change communications.
5. 2. 2 City of Seal Beach Steering Committee
The City of Seal Beach steering committee understands and supports the cultural change necessary for the Project and fosters an appreciation for the Project' s value throughout the organization. The steering committee oversees the City of Seal Beach project manager and Project as a whole through participation in regular internal meetings. The City of Seal Beach steering committee remains updated on all Project progress, Project decisions, and achievement of Project milestones. The City of Seal Beach steering committee also serves as primary level of issue resolution for the Project.
Works to resolve all decisions and/ or issues not resolved at the project manager level as part of the escalation process.
Attends all scheduled steering committee meetings.
Provides support for the project team.
Assists with communicating key project messages throughout the organization.
Prioritizes the project within the organization.
Ensures the project staffed appropriately and that staff have necessary resources.
Monitors project progress including progress towards agreed upon goals and objectives.
Has the authority to approve or deny changes impacting the following areas:
City of Seal Beach
Tyler Technologies, inc.
Page / 9
o Cost
o Scope
o Schedule
o Project Goals
o City of Seal Beach Policies
o Needs of other client projects
5. 2. 3 City of Seal Beach Project Manager
City of Seal Beach shall assign project manager( s) prior to the start of this project with overall responsibility and authority to make decisions related to Project Scope, scheduling, and task assignment. City of Seal Beach Project Manager should communicate decisions and commitments to the Tyler project manager( s) in a timely and efficient manner. When City of Seal Beach project manager( s) do not have the knowledge or authority to make decisions, he or she engages the necessary resources to participate in discussions and make decisions in a timely fashion to avoid Project delays. The client project manager( s) are responsible for reporting to client steering committee and determining appropriate escalation points.
5. 2. 3. 1 Contract Management
Validates contract compliance throughout the project.
Ensures that invoicing and Deliverables meet contract requirements.
Acts as primary point of contact for all contract and invoicing questions. Collaborates on and approves Change Requests, if needed, to ensure proper scope and budgetary compliance.
5. 2. 3. 2 Planning
Reviews and accepts project planning documents.
Defines project tasks and resource requirements for City of Seal Beach project team.
Collaborates in the development and approval of the project schedule.
Collaborates with Tyler project manager( s) to plan and schedule project timelines to achieve on- time implementation.
5. 2. 3. 3 Implementation Management
Tightly manages project budget and scope.
Collaborates with Tyler project manager( s) to establish a process and approval matrix to ensure that scope changes and budget ( planned versus actual) are transparent and handled effectively and efficiently.
Collaborates with Tyler project manager to establish and manage a schedule and resource plan that properly supports the project schedule as a whole and is also in balance with scope and budget.
Collaborates with Tyler project manager( s) to establish risk and issue tracking and reporting process between City of Seal Beach and Tyler and takes all necessary steps to proactively mitigate these items or communicate with transparency to Tyler any items that may impact the outcomes of the project.
Collaborates with Tyler project manager( s) to establish key business drivers and success indicators that will help to govern project activities and key decisions to ensure a quality outcome of the project.
Routinely communicates with both City of Seal Beach staff and Tyler, aiding in the understanding of goals, objectives, current status, and health of the project by all team members.
Manages the requirements gathering process and ensure timely and quality business requirements are being provided to Tyler.
City of Seat Beach
Tyler Technologies, Inc.
Page / 10
5. 2. 3. 4 Resource Management
Acts as liaison between project team and stakeholders.
Identifies and coordinates all City of Seal Beach resources across all modules, phases, and activities including data conversions, forms design, hardware and software installation, reports building, and satisfying invoices.
Provides direction and support to project team.
Builds partnerships among the various stakeholders, negotiating authority to move the project forward.
Manages the appropriate assignment and timely completion of tasks as defined.
Assesses team performance and takes corrective action, if needed.
Provides guidance to City of Seal Beach technical teams to ensure appropriate response and collaboration with Tyler Technical Support Teams in order to ensure timely response and appropriate resolution.
Owns the relationship with in -Scope 3rd parry providers and aligns activities with ongoing project tasks.
Ensures that users have appropriate access to Tyler project toolsets as required.
Conducts training on proper use of toolsets.
Validates completion of required assignments using toolsets.
5. 2. 4 City of Seal Beach Functional Leads
Makes business process change decisions under time sensitive conditions.
Communicates existing business processes and procedures to Tyler consultants.
Assists in identifying business process changes that may require escalation.
Contributes business process expertise for Current & Future State Analysis.
Identifies and includes additional subject matter experts to participate in Current & Future State Analysis.
Validates that necessary skills have been retained by end users.
Provides End Users with dedicated time to complete required homework tasks.
Acts as an ambassador/ champion of change for the new process and provide business process change support.
Identifies and communicates any additional training needs or scheduling conflicts to City of Seal Beach project manager.
Actively participates in all aspects of the implementation, including, but not limited to, the following key activities:
o Task completion
o Stakeholder Meeting
o Project Management Plan development
o Schedule development
o Maintenance and monitoring of risk register
o Escalation of issues
o Communication with Tyler project team
o Coordination of City of Seal Beach resources
o Attendance at scheduled sessions
o Change management activities
o Modification specification, demonstrations, testing and approval assistance o Data analysis assistance
City of Seal Beach
Tyler Technologies, Inc.
Page / 11
o Decentralized end user training
o Process testing
o Solution Validation
5. 2. 5 City of Seal Beach Power Users
Participate in project activities as required by the project team and project manager(s).
Provide subject matter expertise on City of Seal Beach business processes and requirements.
Act as subject matter experts and attend Current & Future State Analysis sessions as needed.
Attend all scheduled training sessions.
Participate in all required post -training processes as needed throughout project.
Test all application configuration to ensure it satisfies business process requirements.
Become application experts.
Participate in Solution Validation.
Adopt and support changed procedures.
Complete all deliverables by the due dates defined in the project schedule.
Demonstrate competency with Tyler products processing prior to Go -live.
Provide knowledge transfer to City of Seal Beach staff during and after implementation.
Participate in conversion review and validation.
5. 2. 6 City of Seal Beach End Users
Attend all scheduled training sessions.
Become proficient in application functions related to job duties.
Adopt and utilize changed procedures.
Complete all deliverables by the due dates defined in the project schedule.
Utilize software to perform job functions at and beyond Go -live.
5. 2. 7 City of Seal Beach Technical Lead
Coordinates updates and releases with Tyler as needed.
Coordinates the copying of source databases to training/ testing databases as needed for training days.
Coordinates and adds new users, printers and other peripherals as needed.
Validates that all users understand log -on process and have necessary permission for all training sessions.
Coordinates interface development for City of Seal Beach third party interfaces.
Develops or assists in creating reports as needed.
Ensures on- site system meets specifications provided by Tyler.
Assists with software installation as needed.
Extracts and transmits conversion data and control reports from City of Seal Beach' s legacy system per the conversion schedule set forth in the project schedule.
5. 2. 7. 1 City of Seal Beach GIS
Participates in GIS planning activities.
Responsible for management and maintenance of City of Seal Beach GIS infrastructure and data.
Ensures GIS data/ service endpoints are in alignment with Tyler software requirements.
Provides Tyler implementation team with GIS data/ service access information.
City of Seal Beach
Tyler Technologies, Inc.
5. 2. 7. 2 City of Seal Beach Upgrade Coordination
Becomes familiar with the software upgrade process and required steps.
Becomes familiar with Tyler' s releases and updates.
Utilizes Tyler resources to stay abreast of the latest Tyler releases and updates, as well as the latest helpful tools to manage City of Seal Beach' s software upgrade process.
Assists with the software upgrade process during implementation.
Manages software upgrade activities post -implementation.
Manages software upgrade plan activities.
Coordinates software upgrade plan activities with City of Seal Beach and Tyler resources.
Communicates changes affecting users and department stakeholders.
Obtains department stakeholder acceptance to upgrade production environment.
5. 2. 8 City of Seal Beach Change Management Lead
Validates that users receive timely and thorough communication regarding process changes.
Provides coaching to supervisors to prepare them to support users through the project changes.
Identifies the impact areas resulting from project activities and develops a plan to address them proactively.
Identifies areas of resistance and develops a plan to reinforce the change.
Monitors post -production performance and new process adherence.
City of Seal Beach
Tyler Technologies, Inc.
Page j 13
Part 3: Project Plan
6. Project Stages
Work Breakdown Structure
The Work Breakdown Structure (WBS) is a hierarchical representation of a Project or Phase broken down into smaller, more manageable components. The top- level components are called " Stages" and the second level components are called " Work Packages'. The work packages, shown below each stage, contain the high- level work to be done. The detailed Project Schedule, developed during Project/ Phase Planning and finalized during subsequent stages, lists the tasks to be completed within each work package. Each stage ends with a " Control Point", confirming the work performed during that stage of the Project has been accepted by City of Seal Beach.
Work Breakdown Structure (WBS)
g,
CLO4Phase
Items noted with an asterisk in the graphic above relate to specificproducts and services. Ifthose products andservices are not included in the scope ofthe contract, these specific work packages will be noted as " Intentionally Left Blank" in Section 6 ofthe Sta tement of Work.
City of Seal Beach
Tyler Technologies, Inc.
Page / 14
6. 1 Initiate and Plan
The Initiate and Plan stage involves Project initiation, infrastructure, and planning. This stage creates a foundation for the Project by identifying and establishing sequence and timing for each Phase as well as verifying scope for the Project. This stage will be conducted at the onset of the Project, with a few unique items being repeated for the additional Phases as needed.
6. 1. 1 Initial Coordination
Prior to Project commencement, Tyler management assigns project manager(s). Additional Project resources will be assigned later in the Project as a Project schedule is developed. Tyler provides City of Seal Beach with initial Project documents used to gather names of key personnel, their functional role as it pertains to the Project, as well as any blackout dates to consider for future planning. City of Seal Beach gathers the information requested by the provided deadline ensuring preliminary planning and scheduling can be conducted moving the Project forward in a timely fashion. Internally, the Tyler Project Manager( s) coordinate with sales to ensure transfer of vital information from the sales process prior to scheduling a Project Planning Meeting with City of Seal Beach' s team. During this step, Tyler will work with City of Seal Beach to establish the date( s) for the Project and Phase Planning session.
Objectives:
Formally launch the project.
Establish project governance.
Define and communicate governance for Tyler.
Identify client project team.
STAGE 1 Initial Coordination
Tyler Client
RACI MATRIX KEY:
R = Responsible
A = Accountable a5 2
M
C = Consulted M
boa,
J
I= Informed
t3ON
M
2 U
U
a°1,
C
a
0 CO
0 a.-+
L
ppfd O
N
N NQJ 0C @ ppNIJ
tw
W N
f0
C
41 Cro
M
a`-+ i
fl.
CO cnN
U
N
N0_ E:
O CM
J
t0C M
a+ CN
N
Y E. NCL
x MU UM N
Y
Y O N Y
E U
U
d
t0 O
c Luv
C
T 41Ux v
N
p
cV Cr0
O1 t6
UJ N G U w a ti U v7i D w
Tyler project team is assigned A R C I I I I I I
Client project team is assigned A I R I I I
Provide initial project
documents to City of Seal Beach
A R C C I I
Gather preliminary information
requested
I A R C C C C
Sales to implementation
knowledge transfer A R I I I 1 I
City of Seal Beach
Tyler Technologies, Inc.
Page / 15
Create Project Portal to store
project artifacts and facilitate A R I
communication
Inputs Contract documents
Statement of Work
Outputs/ Deliverables Completed initial project documents Project portal
Work package assumptions:
Project activities begin after the agreement has been fully executed.
6. 1. 2 Project/ Phase Planning
Project and Phase planning provides an opportunity to review the contract, software, data conversions and services purchased, identify applications to implement in each Phase ( if applicable), and discuss implementation timeframes.
During this work package Tyler will work with City of Seal Beach to coordinate and plan a formal Project planning meeting( s). This meeting signifies the start of the Project and should be attended by all City of Seal Beach Project team members and the Tyler Project Manager. The meeting provides an opportunity for Tyler to introduce its implementation methodology, terminology, and Project management best practices to City of Seal Beach' s Project Team. This will also present an opportunity for project managers and Project sponsors to begin to discuss Project communication, metrics, status reporting and tools to be used to measure Project progress and manage change.
Tyler will work with the City of Seal Beach Project Team to prepare and deliver the Project Management Plan as an output of the planning meeting. This plan will continue to evolve and grow as the Project progresses and will describe how the project will be executed, monitored, and controlled.
During project planning, Tyler will introduce the tools that will be used throughout the implementation. Tyler will familiarize the client with these tools during project planning and make them available for review and maintenance as applicable throughout the project. Some examples are Solution validation plan, issue log, and go -live checklist.
STAGE 1 Project/ Phase Planning
Tyler Client
City of Seal Beach
Tyler Technologies, Inc. Page / 16
RACI MATRIX KEY:
Acceptance Criteria [ only) for Deliverables
Project Management Plan Delivery of document
Project Operational Plan Delivery of document
Initial Project Schedule City of Seal Beach provides acceptance of schedule based on resource availability,
project budget, and goals.
R = Responsible LL,
A = Accountable a`, Y M
2 N
C = Consulted C N
QJJ
v
1= Informed
00 2
o U'
a, o
v
Y
v
L
a N
C
M
o
v
C0ow
o
C
w
c E
E
oo
a
mw
E
m
C
x
a@i
N
N
CN
U
C N O
N
N
U
Qn
J O
l0 C
N
U
N
d
O
N
d
W
O 0 LC a-. C U UN
p
CO
U boC
u
N
N U
C
X
w a
O
Uv
N N
w a
C
Li
O
U
d
D
p
w
OU
Schedule and
conduct planning A R I C C I
session( s)
Develop Project
Management Plan
A R 1 C C I
Develop initial
project schedule'
I I I I I C C I I C I
Inputs Contract documents
Statement of Work
Guide to Starting Your Project
Outputs / Deliverables Acceptance Criteria [ only) for Deliverables Project Management Plan Delivery of document
Project Operational Plan Delivery of document
Initial Project Schedule City of Seal Beach provides acceptance of schedule based on resource availability,
project budget, and goals.
Work package assumptions:
City of Seal Beach has reviewed and completed the Guide to Starting Your Project document.
6. 1. 3 Infrastructure Planning
Procuring required hardware and setting it up properly is a critical part of a successful implementation. This task is especially important for Tyler- hosted/ SaaS deployment models. Tyler will be responsible for building the environments for a hosted/ SaaS deployment, unless otherwise identified in the Agreement. Tyler will install Licensed Software on application server( s) or train City of Seal Beach to install License Software. The City of Seal Beach is responsible for the installation and setup of all peripheral devices.
Objectives:
Ensure City of Seal Beach' s infrastructure meets Tyler' s application requirements.
Ensure City of Seal Beach' s infrastructure is scheduled to be in place and available for use on time.
STAGE 1
Infrastructure Planning
City of Seal Beach
Tyler Technologies, Inc.
Page / 17
Inputs 1 1. Initial Infrastructure Requirements and Design Document Outputs /
Tyler Client
RACI MATRIX KEY:
1. Completed Infrastructure Requirements Delivery of Document and Design Document
2. Infrastructure Audit System Passes Audit Criteria
R = Responsible v
v
A = Accountable
J N
C= Consulted v Uo N
QJ a, Ea
Informed 0oM0
C LdQv 0 V) v
U
N
C
v
W
0 v
L UI
CaL
Lf0 0
C LN a) U
O
InCE
C:C
JJ CDQ O
cu.
N
41 L
Y CC C. X U U9
L
In
C
U
to
C
O 0l Y
C
E
L
U
U
L
Uv
L
W
M
iFo r c
a+
U
C
v YUv U c Uv
t+ Vl
s
aX
fl
o
a
O
U v v a, o
c a o v
a O U w a ii U w
Provide Infrastructure
Requirements and Design A R C C I I
Document
Initial Infrastructure
Meeting
A R C C C C
Schedule SaaS
Environment Availability
A R C I
Schedule Hardware to
be Available for I I A R C
Installation
Schedule Installation of
All Licensed Software
A R C I f
Infrastructure Audit A .: C 1 C
Inputs 1 1. Initial Infrastructure Requirements and Design Document Outputs / Acceptance Criteria [ only] for Deliverables
Deliverables
1. Completed Infrastructure Requirements Delivery of Document and Design Document
2. Infrastructure Audit System Passes Audit Criteria
Work package assumptions:
City of Seal Beach will maintain environment ( or virtual environment) for On -Premise deployments.
6. 1. 4 Stakeholder Meeting
Communication of the Project planning outcomes to the City ofSeal Beach Project team, executives and other key stakeholders is vital to Project success. The Stakeholder meeting is a strategic activity to inform, engage, gain commitment, and instill confidence in the City of Seal Beach team. During the meeting, the goals and objectives of the Project will be reviewed along with detail on Project scope, implementation methodology, roles and responsibilities, Project timeline and schedule, and keys to Project success.
Objectives:
Formally present and communicate the project activities and timeline.
Communicate project expectations.
City of Seal Beach
Tyler Technologies, Inc. Page l 18
STAGE 1 Stakeholder Meeting
Tyler Client
Acceptance Criteria [ only] for Deliverables
RACI MATRIX KEY:
Stakeholder Meeting Presentation
R = Responsible LUN
A = Accountable v
C = Consulted O
N N
J
I= Informed a`, 2 vN v v Q
OD Nd
C O
i
WO
L
N
NU
i
O
OC
Y
E tkoN
NO
E
v
c0
wX
41 N
c0
a-+ N
Cro
rO OC N
NU
LOd
E
0 rpC Jd1 C a-+
O
j
N
E
y
N
E CL x
M M
U
y
N
m O v Y
N
E
rp
U
UN d O Q
N
U
OO LU C4J UN
N
v
U
O
U
C CCtO
U t
flC
LU
w E a` E a'
w a` Ui U V) w
Create Stakeholder
Meeting Presentation
I A R I I I I C I
Review Stakeholder
Meeting Presentation
I C A R C
Perform Stakeholder
Meeting Presentation
I A R I I I I C I I I I I I
Inputs Agreement
SOW
Project Management Plan
Outputs /
Deliverables
Acceptance Criteria [ only] for Deliverables
Stakeholder Meeting Presentation
Work package assumptions:
None
6. 1. 5 GIS Preparation
GIS data is a core part of many Tyler applications. Other City of Seal Beach offices/ products may also use this data and have different GIS requirements. A key focus of this preparation will be the process for developing the GIS data for use with Tyler applications. This can be an iterative process, so it is important to begin preparation early.
Objectives:
Identify all City of Seal Beach GIS data sources and formats.
Tyler to understand City of Seal Beach' s GIS needs and practices.
Ensure City of Seal Beach' s GIS data meets Tyler product requirements.
STAGE 1 1 GIS Preparation
Client
City of Seal Beach
Tyler Technologies, Inc.
RACI MATRIX KEY:
Acceptance Criteria [ only] for Deliverables
Production Ready Map Data Meets Tyler GIS Requirements.
R = Responsible
ca
LU
A = Accountableo Y N
C = Consulted°
Z3
Informed a`,
0 U v
v a
N
CO OC
N
N
V O
O
Y
N D Nto
W p
N
0 C
cUC
6 C
i_ CO Ln
NU
V)
E
O
roC JN c0
Y
O C
N
OJ cG N Q N O
U
G C 2 ccG
rpU
UN d
41 Q a-. O O
tU CN UN
N
p CU O Q tU
w E a
E p w
Y
a` U- p w
Initial GIS Planning
Meeting
A R C C C
Determine all GIS Data
Sources
I I A R C
Provide Source GIS Data I I A R C
Review GIS Data and
Provide Feedback
A R C I C
Inputs I GIS Requirements Document
Outputs /
Deliverables
Acceptance Criteria [ only] for Deliverables
Production Ready Map Data Meets Tyler GIS Requirements.
Work package assumptions:
GIS data provided to Tyler is accurate and complete.
GIS data provided to Tyler is current.
City of Seal Beach is responsible for maintaining the GIS data.
6. 1. 6 Control Point 1: Initiate & Plan Stage Acceptance Acceptance criteria for this stage includes completion of all criteria listed below.
Note: Advancement to the Assess & Define stage is not dependent upon Tyler' s receipt of this stage acceptance.
Initiate & Plan Stage Deliverables:
Project Management Plan
Initial Project Schedule
Initiate & Plan stage acceptance criteria:
All stage deliverables accepted based on acceptance criteria previously defined Project governance defined
Project portal made available to City of Seal Beach
Stakeholder meeting complete
GIS Data Production Ready
City ofSeal Beach
Tyler Technologies, Inc.
Completed Infrastructure Requirements and Design Document System Passes Infrastructure Audit ( as applicable)
2 Assess & Define
The Assess & Define stage will provide an opportunity to gather information related to current City of Seal Beach business processes. This information will be used to identify and define business processes utilized with Tyler software. City of Seal Beach collaborates with Tyler providing complete and accurate information to Tyler staff and assisting in analysis, understanding current workflows and business processes.
6. 2. 1 Solution Orientation
The Solution Orientation provides the Project stakeholders a high- level understanding of the solution functionality prior to beginning the current and future state analysis. The primary goal is to establish a foundation for upcoming conversations regarding the design and configuration of the solution.
Tyler utilizes a variety of tools for the Solution Orientation, focusing on City of Seal Beach team knowledge transfer such as: eLearning, documentation, or walkthroughs. The City of Seal Beach team will gain a better understanding of the major processes and focus on data flow, the connection between configuration options and outcome, integration, and terminology that may be unique to Tyler' s solution.
Objectives:
Provide a basic understanding of system functionality.
Prepare City of Seal Beach for current and future state analysis.
STAGE 2 Solution Orientation
Tyler Client
RACI MATRIX KEY:
R = Responsible
N
A = Accountable Y
C = Consulted 00MZ)
C
vJ
I
i
I= Informed
ra 0 U
v o
W
C O
Z
L
m O
i
v NU
2 C
Y_
E
ai VIO
E
N
m
W
0 v
O
N
M MC M
N
i''
C
N NU OO_ ECZm v
J
a N c0
CL)
N U1 O_
2 M 76 v
Ln
O
U
C i
70 N7U
E
Q
Ua) u
E
N
a
Wx
O
u
O
u
LC
N
YC OU
C
YUN ZOU O1WC UQ/ i
U
C
0)
W
E
O
d
E
ru
L
U
U
Qi
W N
O
O_
C
W U
7 Q
W
U
Provide pre - requisites A R I I I I I
Complete pre -requisites 1 1 A R C C
Conduct orientation A RI 1 I 1- 1- T 1 I I
Inputs Solution orientation materials
Training Plan
City of Seal Beach
Tyler Technologies, Inc.
Page / 21
6. 2. 2 Current & Future State Analysis
The Current & Future State Analysis provides the Project stakeholders and Tyler an understanding of process changes that will be achieved with the new system.
City of Seal Beach and Tyler will evaluate current state processes, options within the new software, pros and cons of each based on current or desired state and make decisions about the future state configuration and processing. This may occur before or within the same timeframe as the configuration work package. The options within the new software will be limited to the scope of this implementation and will make use of standard Tyler functionality.
The City of Seal Beach will adopt the existing Tyler solution wherever possible to avoid project schedule and quality risk from over customization of Tyler products. It is the client' s responsibility to verify that in -scope requirements are being met throughout the implementation if functional requirements are defined as part of the contract. The following guidelines will be followed when evaluating if a modification to the product is required:
A reasonable business process change is available.
Functionality exists which satisfies the requirement.
Configuration of the application satisfies the requirement.
An in -scope modification satisfies the requirement.
Requirements that are not met will follow the agreed upon change control process and can have impacts on the project schedule, scope, budget and resource availability.
STAGE 2 Current & Future State Analysis
Tyler Client
RACI MATRIX KEY:
R = Responsible w
A = Accountable a`,
c
U
V)
C = Consulted N
I = Informed
a`, dO
o
U 0)
v QX
c
ro
o
noro
oC
a.+
rn
i Nn
o
O
E
0 rp
w
v
2 n
rccco U o vn
u
Lna
E
U0
c@ v
J
Z
a) G
U
v d
w
rp N
C
a)
a)
CO
L
a)
N
roU
X
Q
E
a
a
E
o
a)
c u
C
a)
V
ET
u
on U
v ro
h
sc
Current State process
0- Z> U x) N a` ii UC
review
A R I I I C C C C C
Discuss future -state
options
A R C C C C C C C C
Make future state
decisions ( non -COTS) C C C C C A R I C C
Document anticipated
configuration options
required to support
A R C C C I I I I
future state
Inputs I Client current state documentation
City of Seal Beach
Tyler Technologies, Inc.
Page / 22
Solution Orientation completion
Outputs /
Data Conversion Assessment
Acceptance Criteria [ only] for Deliverables
Deliverables
Client
RACI MATRIX KEY:
Documentation that describes future -state Delivery of document decisions and configuration options to support
future -state decisions.
Work package assumptions:
City of Seal Beach attendees possess sufficient knowledge and authority to make future state decisions.
City of Seal Beach is responsible for any documentation of current state business processes.
Client is able to effectively communicate current state processes.
6. 2. 3 Conversion Assessment
Data Conversions are a major effort in any software implementation. Tyler' s conversion tools facilitate the predictable, repeatable conversion process that is necessary to support a successful transition to the Tyler system. The first step in this process is to perform an assessment of the existing (" legacy") system( s), to better understand the source data, risks, and options available. Once the data has been analyzed, the plan for data conversion is completed and communicated to the appropriate stakeholders.
Objectives:
Communicate a common understanding of the project goals with respect to data.
Ensure complete and accurate source data is available for review/ transfer.
Map the data from the source to the Tyler system.
Document the data conversion/ loading approach.
STAGE 2 Data Conversion Assessment
Tyler Client
RACI MATRIX KEY:
R = Responsible LU
A = Accountableao
C = Consulted 3
N
1= Informed v 2 u
UQJ Q, a n
O
C
Z1O
t» O NQ1 Q U
O
C
O
Y
Q) to ONro
E
v
Wx
Q1
v
2 in
M
2 n7 C@M O
C
toW
WU
toQ
E
O Q J fQ rp C J
j
Z,
CQ1
E Y
CQ)
E dQ x MU MU
p
N
O
U
C E
i
Q) U
U
N
d
rQ O L C U
L
y
O
O
ZU CQ1 bo Q) D
O
C
X
W
E OdE
G U
X
W N
2 C
LL U
L7
Q_
D W
U
Extract Data from Source
Systems
I C A R
Complete Data
Analysis/ Mapping
A R C C I C C I
Review and Scrub Source
Data I I I A R C I
City of Seal Beach
Tyler Technologies, Inc.
c,;`
Build/ Update Data
Conversion Plan C I
Inputs Client Source data
Client Source data Documentation ( if available)
Outputs / Acceptance Criteria [ only] for Deliverables
Deliverables
Data Conversion Plan built/ updated Client Acceptance of Data Conversion Plan, if Applicable
Work package assumptions:
Tyler will be provided with data from the Legacy system( s) in a mutually agreed upon format.
Tyler will work with City of Seal Beach representatives to identify business rules before writing the conversion.
City of Seal Beach subject matter experts and resources most familiar with the current data will be involved in the data conversion planning effort.
6. 2. 4 Intentionally left blank.
6. 2. 5 Intentionally left blank.
6. 2. 6 Control Point 2: Assess & Define Stage Acceptance Acceptance criteria for this Stage includes completion of all criteria listed below.
Note: Advancement to the Prepare Solution Stage is dependent upon Tyler' s receipt of the Stage Acceptance.
Assess & Define Stage Deliverables:
Documentation of future state decisions and configuration options to support future state decisions.
Modification specification document.
Assess & Define Stage Acceptance Criteria:
All stage deliverables accepted based on criteria previously defined.
Solution Orientation is delivered.
Conversion data extracts are received by Tyler.
Data conversion plan built.
6. 3 Prepare Solution
During the Prepare Solution stage, information gathered during the Initiate & Plan and Assess & Define stages will be used to install and configure the Tyler software solution. Software configuration will be validated by the client against future state decisions defined in previous stages and processes refined as needed to ensure business requirements are met.
City ofSeal Beach
Tyler Technologies, Inc.
Page / 24
6. 3. 1 Initial System Deployment
The timely availability of the Tyler Solution is important to a successful Project implementation. The success and timeliness of subsequent work packages are contingent upon the initial system deployment of Tyler Licensed Software on an approved network and infrastructure. Delays in executing this work package can affect the project schedule.
Objectives:
All licensed software is installed and operational.
City of Seal Beach is able to access the software.
STAGE 3
Initial System Deployment ( Hosted/ SaaS)*
Tyler Client
RACI MATRIX KEY:
Licensed Software is Installed on the Server( s) Software is accessible Licensed Software is Installed on Clients ( if Software is accessible applicable)
Installation Checklist/ System Document System Passes
Infrastructure Design Document ( Ud — If
Applicable)
R = Responsible
A = Accountable a5
C = Consulted
no
c
v
J
I= Informed U
U
N
v OL
C O VCO cO
v o
E hvo
E
m
wx
v
O In
u
lQ O
C J CC Y-' N
YE
v
U
N
E:
Q O f0 y
W U
L
N
L
J
76 W
3Q
n
E
O
a
E
l.Ll
N-- a
O zCu1 YcN uQl v
U
v
O
Cu ccp
U
v
roQ.
u
s
Prepare hosted
w a w a` ti U w
W
environment
A R I C
Install Licensed
Software with
Initial Database on
Server( s) for A R I C
Included
Environments
Install Licensed
Software on Client
Devices ( if I C A R
applicable)
Tyler System
Administration
Training ( if A R I C
applicable)
Outputs /
Acceptance Criteria [ only] for Deliverables Deliverables Licensed Software is Installed on the Server( s) Software is accessible Licensed Software is Installed on Clients ( if Software is accessible applicable)
Installation Checklist/ System Document System Passes
Infrastructure Design Document ( Ud — If
Applicable)
City of Seal Beach
Tyler Technologies, Inc.
Page / 25
Work package assumptions:
The most current generally available version of the Tyler Licensed Software will be installed.
City of Seal Beach will provide network access for Tyler modules, printers, and Internet access to all applicable City of Seal Beach and Tyler Project staff.
6. 3. 2 Configuration
The purpose of Configuration is to prepare the software product for validation.
Tyler staff collaborates with City of Seal Beach to complete software configuration based on the outputs of the future state analysis performed during the Assess and Define Stage. City of Seal Beach collaborates with Tyler staff iteratively to validate software configuration.
Objectives:
Software is ready for validation.
Educate City of Seal Beach SME how to configure and maintain software.
Prepare standard interfaces for process validation ( if applicable).
STAGE 3 Configuration
Tyler -- Client
RACI MATRIX KEY:
R = Responsible LL)
A = Accountable v M V)
C = Consulted C
Y
N
N
J
y
I= Informed o
U
U
a°/, v Q)
MC O 0o i-. CO
a)
n
O
c
Y N
E
m
wx
0 a)
fu
v
LC
Q
0 M
vta
M
U
j
v
V) Q
v
E
O
C J
ro
ro
Y
ro c
v
N
3 N Ua) N w w C aU
mC U
OC a)
m
U
E
L
h
U
c
Q)
w
a
E a
a
E
m 6 r c
U
x
a)
o
U
c ca
a)
Y`
cLa a v
Conduct configuration
w
c'nvii
training
A R I C C
Complete Tyler
configuration tasks A R I I I
where applicable)
Complete Client
configuration tasks I C A R C
where applicable)
Standard interfaces
configuration and A R C I C C C
training ( if applicable)
Updates to Solution
Validation testing plan
C C A R C C
Inputs Documentation that describes future state decisions and configuration options to support future state decisions.
City of Seal Beach
Tyler Technologies, Inc.
Page / 26
Outputs /
Deliverables
Process Refinement
Acceptance Criteria [ only] for Deliverables
Tyler
Configured System N/ A
Work package assumptions:
Tyler provides guidance for configuration options available within the Tyler software. City of Seal Beach is responsible for making decisions when multiple options are available.
6. 3. 3 Process Refinement
Tyler will educate the City of Seal Beach users on how to execute processes in the system to prepare them for the validation of the software. City of Seal Beach collaborates with Tyler staff iteratively to validate software configuration options to support future state.
Objectives:
Ensure that City of Seal Beach understands future state processes and how to execute the processes in the software.
Refine each process to meet the business requirements.
Validate standard interfaces, where applicable.
Validate forms and reports, where applicable.
STAGE 3 Process Refinement
Tyler Client
RACI MATRIX KEY:
N
R = Responsible
cm
LU
A = Accountable a,
C = ConsultedOC
J
I= Informed
o
2 0
a, U Ya, a, Ca acl X O
CM CO a1W CO Lna1
U
N
O
Cr E a) m On3
a)
W f0
a
CL
M
c
Cra
O Y
C
0 LnW
U
toQ- O Crp
J
Ca Yro YC
j
a1 a) a M M Q)
U
C L
Ua) OUN
O
C
OW
a
ti
OO LU
C
T Ua) Q)
U
U
C CM
U
O- tU
LU a
v
U w N 0_ ii U cn O w
Conduct process
training
A R I C I C
Confirm process
decisions
I C A R C I C
Test configuration 1
I C A R C
Refine
configuration
Client
A R I I I
Responsible)
Refine
configuration ( Tyler I C A R C
Responsible)
City of Seal Beach
Tyler Technologies, Inc Page l 27
Validate interface
process and results
Acceptance Criteria [ only] for Deliverables
Deliverables
I C
Updated solution validation test plan
C
documentation ( completed by City of Seal
A R C C
Update client -
specific process
documentation ( if I C A R C
applicable)
Updates to
Solution Validation C C A R C C
testing plan
Inputs Initial Configuration
Documentation that describes future state decisions and configuration options to support future state decisions.
Solution validation test plan
Outputs /
Acceptance Criteria [ only] for Deliverables
Deliverables
Updated solution validation test plan
Completed client -specific process
documentation ( completed by City of Seal
Beach)
Work package assumptions:
None
6. 3. 4 Conversion Delivery
The purpose of this task is to transition the City of Seal Beach' s data from their source (" legacy") system( s) to the Tyler system( s). The data will need to be mapped from the legacy system into the new Tyler system format. A well -executed data conversion is key to a successful cutover to the new system( s).
With guidance from Tyler, the City of Seal Beach will review specific data elements within the system and identify/ report discrepancies. Iteratively, Tyler will collaborate with the City of Seal Beach to address conversion discrepancies. This process will allow for clean, reconciled data to transfer from the source system( s) to the Tyler system( s). Reference Conversion Appendix for additional detail.
City of Seal Beach
Tyler Technologies, Inc.
Page / 28
Load Data
For Testing
Pull Data &
Conversion Map Write & Run Validate Conversion
Balancing Conversion Conversion
Data Reviews
Reports Program Completed
Report &
Correct Errors
Objectives:
Data is ready for production ( Conversion).
STAGE 3 Data Delivery & Conversion
Tyler Client
RACI MATRIX
KEY: w
R = Responsible a5
c
2 N
cn
A = Accountable
0o
c
a,
C= Consult ed a`, 2
C:
U
U' v OL
I = Informed oQ`, c
Q) U O
Y
Q) p
Q)
w oO
C Q) U C C
a-+ N c
o a(Oc
i O cn ) 0O u
J
ra u c J
U Q/ U
W
0 C E
V)
Y
Y
U
C
U
O
Q) to U
U
X
OL O
N
cYo O
S
N
CQ) X N
Q)
O
U
c 0 Q U
Provide data
U w a ti U w
a)
crosswalks/ code A C R I I I
mapping tool
Populate data
crosswalks/ code I C C A R C
mapping tool
Iterations:
Conversion A C R I
Development
Iterations:
Deliver A R I
I
converted data
Iterations:
Proof/ Review C C C A R C C
data and
City of Seal Beach
Tyler Technologies, Inc.
Pcge 29
reconcile to
source system
Inputs
Data Conversion Plan
Configuration
Outputs /
Acceptance Criteria [ only] for Deliverables
Deliverables
Code Mapping Complete / Validated N/ A
Conversion Iterations/ Reviews Complete Conversion complete, verified and ready for final pass
Work package assumptions:
The City of Seal Beach will provide a single file layout per source system as identified in the investment summary.
The City of Seal Beach subject matter experts and resources most familiar with the current data will be involved in the data conversion effort.
The City of Seal Beach project team will be responsible for completing the code mapping activity, with assistance from Tyler.
6. 3. 5 Intentionally left blank.
6. 3. 6 Intentionally left blank.
6. 3. 7 Control Point 3: Prepare Solution Stage Acceptance Acceptance criteria for this Stage includes all criteria listed below in each Work Package.
Note: Advancement to the Production Readiness Stage is dependent upon Tyler' s receipt of the Stage Acceptance.
Prepare Solution Stage Deliverables:
Licensed software is installed.
Installation checklist/ system document.
Conversion iterations and reviews complete.
Prepare Solution Stage Acceptance Criteria:
All stage deliverables accepted based on criteria previously defined.
Software is configured.
Solution validation test plan has been reviewed and updated if needed.
City of Seal Beach
Tyler Technologies, Inc.
Page % 30
6. 4 Production Readiness
Activities in the Production Readiness stage will prepare the client team for go -live through solution validation, the development of a detailed go -live plan and end user training. A readiness assessment will be conducted with the client to review the status of the project and the organizations readiness for go -live.
6. 4. 1 Solution Validation
Solution Validation is the end-to-end software testing activity to ensure that City of Seal Beach verifies all aspects of the Project ( hardware, configuration, business processes, etc.) are functioning properly, and validates that all features and functions per the contract have been deployed for system use.
Objectives:
Validate that the solution performs as indicated in the solution validation plan.
Ensure City of Seal Beach organization is ready to move forward with go -live and training ( if applicable).
STAGE 4 Solution Validation
Tyler Client
RACI MATRIX KEY:
R = Responsible w
A = Accountable a`, g 0 N
C = Consulted M Jv
I = Informed o
U a, v v ami n
coCm Oc OOo O cn
a) V
N
O
C E tko Q)
E
a) tio
Wx oro
N
YcuV)
d
CN
O
V 0Q E
UO
C J C
JtpN N
U
N
E
X
rp
U
Ip
u
N
V)
Ol
CO tpCO N a
W
E
v
4J u
o
E
a
E
M 0
cc
s c
X
N
v
O C
no v
6 L
Update Solution
W a
G U W N LL LL CON W
N
Validation plan A R C C C C
Update test scripts ( as
applicable) C C C A R C
Perform testing C C C A R C
Document issues from
testing C C C A R C
Perform required follow- -'
up on issues A R C C C C
Inputs Solution Validation plan
Completed work product from prior stages ( configuration, business process, etc.) Outputs/
Acceptance Criteria ( only) for Deliverables Deliverables Solution Validation Report
City of Seal Beach updates report with testing
results
City of Seal Beach
Tyler Technologies, Inc.
Page / 31
Work package assumptions:
Designated testing environment has been established.
Testing includes current phase activities or deliverables only.
6. 4. 2 Go -Live Readiness
Tyler and City of Seal Beach will ensure that all requirements defined in Project planning have been completed and the Go -Live event can occur, as planned. A go -live readiness assessment will be completed identifying risks or actions items to be addressed to ensure the client has considered its ability to successfully Go -Live. Issues and concerns will be discussed and mitigation options documented. Tyler and City of Seal Beach will jointly agree to move forward with transition to production. Expectations for final preparation and critical dates for the weeks leading into and during the Go -Live week will be planned in detail and communicated to Project teams.
Objectives:
Action plan for go -live established.
Assess go -live readiness.
Stakeholders informed of go -live activities.
STAGE 4 Go -Live Readiness
Tyler Client
RACI MATRIX KEY:
R = Responsible w
A = Accountable a`, o 0 2
C = Consulted @
CU
J
C:
I = Informed
CI U
n
U
v cN Qa vn
ro C aD C
v Nu
O
cO
4 E: w
0 E
m
wx
U/
o
v
c n O
C
a+ t
N
0 N
UN
Cf0 J
crof0
O
y..
G
NC C
I_ Y
C -
U U N 4
U
LU
C M
C
C
J
41 U- p O.
w
U
W
C U
X
a)
D
E M Q 1
0 Perform Readiness
C U w v
I
w Uc Ln o
a w
Assessment I A R C C I C I I I I I
Conduct Go -Live planning
session A R C
C C C C C C
Order peripheral
hardware ( if applicable) I
A R
C
Confirm procedures for
Go -Live issue reporting & A R I I I
resolution
I C C I I I I I
Develop Go -Live checklist A R C C
Final system C C I C C
infrastructure review A R
where applicable) C
C
Inputs Future state decisions
Go -live checklist
City of Seal Beach
Tyler Technologies, Inc.
None
6. 4. 3 End User Training
End User Training is a critical part of any successful software implementation. Using a training plan previously reviewed and approved, the Project team will organize and initiate the training activities.
Tyler Led: Tyler provides training for all applicable users. One or multiple occurrences of each scheduled training or implementation topic will be covered.
Tyler will provide standard application documentation for the general use of the software. It is not Tyler' s responsibility to develop client specific business process documentation. Client -led training labs using client specific business process documentation if created by the client can be added to the regular training curriculum, enhancing the training experiences of the end users.
Objectives:
End users are trained on how to use the software prior to go -live.
City of Seal Beach is prepared for on-going training and support of the application.
STAGE 4
End User Training
RACI MATRIX KEY:
Tyler
Client
R = Responsible
A = Accountable c
C = Consulted v
I = Informed
Z
Q U N YC
00rp C
C Q
tp ++
Op
U
O
4J U Qv
J
E
i
a
W
C
c
td
C
a''
v
C
LnQ1 U
LnQ
E
Q CN00 JMa) fp v
C7
L
N U
ro ro ro v
X
E
O Q
E
W
Q U N QJ p
N C
update training plan
w _
A
d
R C
N X
N O
L
1] d
p
o w
u
End User training ( Tyler- C I C
led) A R C
Train-the-trainerC A R C
C C I C C
End User training ( Client - C C I C
led) C C
A R I C C C
Inputs Training Plan
List of End Users and their Roles / Job Duties
City of Seal Beach
Tyler Technologies, Inc.
Page / 33
Outputs / Acceptance Criteria [ only] for Deliverables
Deliverables
End User Training City of Seal Beach signoff that training was delivered
Work package assumptions:
The City of Seal Beach project team will work with Tyler to jointly develop a training curriculum that identifies the size, makeup, and subject -area of each of the training classes.
Tyler will work with City of Seal Beach as much as possible to provide end-user training in a manner that minimizes the impact to the daily operations of City of Seal Beach departments.
City of Seal Beach will be responsible for training new users after go -live ( exception— previously planned or regular training offerings by Tyler).
6. 4.4 Control Point 4: Production Readiness Stage Acceptance Acceptance criteria for this stage includes all criteria listed below. Advancement to the Production stage is dependent upon Tyler' s receipt of the stage acceptance.
Production Readiness stage deliverables:
Solution Validation Report.
Update go -live action plan and checklist.
End user training.
Production Readiness stage acceptance criteria:
All stage deliverables accepted based on criteria previously defined.
Go -Live planning session conducted.
6. 5 Production
Following end user training the production system will be fully enabled and made ready for daily operational use as of the scheduled date. Tyler and City of Seal Beach will follow the comprehensive action plan laid out during Go -Live Readiness to support go -live activities and minimize risk to the Project during go -live.
Following go -live, Tyler will work with City of Seal Beach to verify that implementation work is concluded, post go -live activities are scheduled, and the transition to Client Services is complete for long- term operations and maintenance of the Tyler software.
6. 5. 1 Go -Live
Following the action plan for Go -Live, defined in the Production Readiness stage, City of Seal Beach and Tyler will complete work assigned to prepare for Go -Live.
City of Seal Beach provides final data extract and Reports from the Legacy System for data conversion and Tyler executes final conversion iteration, if applicable. If defined in the action plan, City of Seal Beach manually enters any data added to the Legacy System after final data extract into the Tyler system.
City of Seal Beach
Tyler Technologies, Inc.
Page / 34
Tyler staff collaborates with City of Seal Beach during Go -Live activities. City of Seal Beach transitions to Tyler software for day -to day business processing.
Some training topics are better addressed following Go -Live when additional data is available in the system or based on timing of applicable business processes and will be scheduled following Go -Live per the Project Schedule.
Objectives:
Execute day to day processing in Tyler software.
Client data available in Production environment.
STAGE 5 Go - Live
Acceptance Criteria [ only] for Deliverables
Tyler - Client
RACI MATRIX KEY:
Data is available in production environment Client confirms data is available in production environment
R = Responsible LU
A = Accountable
C = Consulted
J
y
Informed a`
0 o
C
U Nv Cv N
a 0
M
C O bD O Ln
N
LnC
O
dA
N
ro
E WX
N
o
f0
YO
C
CO
mC. L
YcO i
C
toLN
a) O
Ln O
C J C
4J
rcco C JruN
v
a
U1 d
X fy0U
t0
U
U
h0
cc G
c(a
G G
E O
f0
U
U
X
N UQJ
O
W
c0 U
LU NC
U
4JN
41 O
O
Uc
C
ro
U4J
O- O U
W a Q
G
X
W
y
Q. W U W
Provide final source data
extract, if applicable
C C A R
Final source data pushed
into production
environment, if
A C R I C C C
applicable
Proof final converted
data, if applicable
C C C A R C
Complete Go -Live
activities as defined in C C C A R C I C
the Go -Live action plan
Provide Go -Live
assistance
A R C C I C C I C I C
Inputs Comprehensive Action Plan for Go -Live
Final source data ( if applicable)
Outputs / Acceptance Criteria [ only] for Deliverables
Deliverables
Data is available in production environment Client confirms data is available in production environment
Work package assumptions:
City of Seal Beach will complete activities documented in the action plan for Go -Live as scheduled.
City of Seal Beach
Tyler Technologies, Inc.
External stakeholders will be available to assist in supporting the interfaces associated with the Go - Live live process.
The Client business processes required for Go -Live are fully documented and tested.
The City of Seal Beach Project team and subject matter experts are the primary point of contact for the end users when reporting issues during Go -Live.
The City of Seal Beach Project Team and SME' s provide business process context to the end users during Go -Live.
The Tyler Go -Live support team is available to consult with the City of Seal Beach teams as necessary.
The Tyler Go -Live support team provides standard functionality responses, which may not be tailored to the local business processes.
6. 5. 2 Transition to Client Services
This work package signals the conclusion of implementation activities for the Phase or Project with the exception of agreed- upon post Go -Live activities. The Tyler project manager( s) schedules a formal transition of City of Seal Beach onto the Tyler Client Services team, who provides City of Seal Beach with assistance following Go -Live, officially transitioning City of Seal Beach to operations and maintenance.
Objectives:
Ensure no critical issues remain for the project teams to resolve.
Confirm proper knowledge transfer to City of Seal Beach teams for key processes and subject areas.
STAGE 5 Transition to Client Services
Tyler Client
RACI MATRIX KEY:
R = Responsible
A = Accountable
C = ConsultedCrro
I = Informed a`,
Cr
v a
x a
pdf0C CO Op QJ CO
1 U ON
C
1 mo m
W
NN N
Cr
0 NQ) U
tod
E
O
C J
CO a- Q C JN
j CCU CQ/
E
awx
YO O
N
O
U
CC G C
v
Z3
Uv
v(
a
flLU w
a t c
Y
UQ) a
O
U
a1bo U
w a
Y
O Q1
U
X
w
Q1 O
n
C
ii
O
U n
O0
o
w
Transfer client to Client
Services and review
issue reporting and
I I A I I R I I C C C
resolution processes
Review long term
maintenance and
continuous
A R C C C
improvement
Inputs Open item/ issues List
Outputs / Acceptance Criteria [ only] for Deliverables
Deliverables
Client Services Support Document
City of Seal Beach
Tyler Technologies, Inc.
Page / 36
Work package assumptions:
No material project issues remain without assignment and plan.
6. 5. 3 Post Go -Live Activities
Some implementation activities are provided post -production due to the timing of business processes, the requirement of actual production data to complete the activities, or the requirement of the system being used in a live production state.
Objectives:
Schedule activities that are planned for after Go -Live.
Ensure issues have been resolved or are planned for resolution before phase or project close.
STAGE 5 Post Go -Live Activities
Tyler Client
RACI MATRIX KEY:
R = Responsible Ui
A = Accountable a5
C:
y
N
C = Consulted
OQ
c D
J
I= Informed 2
0 U
i
f6coC ZCO 00M
CO to
U
Z
N
CO
E W
n
M
a)
mro
W
a1
f0
2 U
co L- O LnN
NU
ina
E
O
Cp
ra
JO Cca ro c
j
N
E
N
E
d
X
ip
U MU Npj
a1 U
C
N C E
s^
U1 V
U
N 41
d
W
9 w
O LC C U
C
N
U
p
U boC
UC@
N
L
E E
U
N
X
O
C ca Q O
W 2 Uv L W N d LL U O W
Schedule contracted
activities that are
planned for delivery
A R C C C C I C C I C C
after go -live
Determine resolution
plan in preparation for
phase or project close
A R C C C 1 C C I C
out
Inputs I List of post Go -Live activities
Outputs/ Acceptance Criteria [ only) for
Deliverables Deliverables
Updated issues log
Work package assumptions:
System is being used in a live production state.
City of Seal Beach
Tyler Technologies, Inc.
Page l 37
6. 5. 4 Control Point 5: Production Stage Acceptance
Acceptance criteria for this Stage includes completion of all criteria listed below:
Advancement to the Close stage is not dependent upon Tyler' s receipt of this Stage Acceptance.
Converted data is available in production environment.
Production Stage Acceptance Criteria:
All stage deliverables accepted based on criteria previously defined.
Go -Live activities defined in the Go -Live action plan completed.
Client services support document is provided.
6. 6 Close
The Close stage signifies full implementation of all products purchased and encompassed in the Phase or Project. City of Seal Beach transitions to the next cycle of their relationship with Tyler ( next Phase of implementation or long-term relationship with Tyler Client Services).
6. 6. 1 Phase Closeout
This work package represents Phase completion and signals the conclusion of implementation activities for the Phase. The Tyler Client Services team will assume ongoing support of City of Seal Beach for systems implemented in the Phase.
Objectives:
Agreement from Tyler and City of Seal Beach teams that activities within this phase are complete.
STAGE 6 Phase Close Out
Tyler Client
RACI MATRIX KEY:
R = ResponsibleLU
A = Accountable o
C = Consulted
J
I= Informed a`,
0 v
o N
onCo OC 00 CO cn
aJU
rn
o
Cn E QJ dA c0 QJ m_
w
QJo NO r0 Zro roc is Y cO Lnv
QJU a
Ln O
roC
N
J
cro
Y
to C JMQJ
QJ NQJ
E
y
I_
a
x t*U0 U6 Ln
QJ U
C
O QJ Y
N U
UN
QJ
a
U
a
W
M p
tCr U CQJ U
QJ Q/ Q)
YUQJ
O l,CJ roC
U
0 a a tU
W d Oru
L U W N CL LL U O W
Reconcile project budget
and status of contract I A R I I C
Deliverables
Hold
meetingC
post phase review
A R C C C C C C C C
Release phase -
dependent Tyler project A R I
resources
I I
IH
City of Seal Beach
Tyler Technologies, Inc.
v; ,,
Participants Tyler Client
Project Leadership Project Manager
Project Manager Project Sponsor( s)
Implementation Consultants Functional Leads, Power Users, Technical Leads
Technical Consultants ( Conversion, Deployment,
Development)
Client Services
Inputs Contract
Statement of Work
Project artifacts
Outputs / Acceptance Criteria [ only] for Deliverables
Deliverables
Final action plan ( for outstanding items)
Reconciliation Report
Post Phase Review
Work package assumptions:
Tyler deliverables for the phase have been completed.
6. 6. 2 Project Closeout
Completion of this work package signifies final acceptance and formal closing of the Project.
At this time City of Seal Beach may choose to begin working with Client Services to look at continuous improvement Projects, building on the completed solution.
Objectives:
Confirm no critical issues remain for the project teams to resolve.
Determine proper knowledge transfer to City of Seal Beach teams for key processes and subject areas has occurred.
Verify all deliverables included in the Agreement are delivered.
STAGE 6 1 Project Close Out
Client
City ofSeal Beach
Tyler Technologies, Inc.
Page / 39
RACI MATRIX KEY:
Acceptance Criteria [ only] for Deliverables
Deliverables
Post Project Report Client acceptance; Completed report indicating all project Deliverables and milestones have
been completed
R = Responsible Ui
A = Accountable ID O
fuv
C = Consulted
0o
J N
I= Informed
CO
2 C
U° v
4 o
v
v
C
E
N
a
C OOp O Ln CO
E 00 O
00 w
i U1
ro
MC
C
o
tp
C
L
C
toO1 NU V) O. O
ro JN O
Yr0 C
rp
j
a) C
G
y WC
QXip
U MU
N
U
Y
C
O
2 a
2 Y
E
i M
U
Uv
CN
a
U
p
CN
a
W
M O
Lu a C
U
a) v
UO
p UC C o
U
0 CL 0
S
U
LU
M
G U W
r)
d LL V) w
N
Conduct post project
A R C C C C C C C C C review
Deliver post project
report to City of Seal
Beach and Tyler
I A R I I C
leadership
Release Tyler project
A R I I
resources
Inputs Contract
Statement of Work
Outputs/ Acceptance Criteria [ only] for Deliverables
Deliverables
Post Project Report Client acceptance; Completed report indicating all project Deliverables and milestones have
been completed
Work package assumptions:
All project implementation activities have been completed and approved.
No critical project issues remain that have not been documented and assigned.
Final project budget has been reconciled and invoiced.
All Tyler deliverables have been completed.
6. 6. 3 Control Point 6: Close Stage Acceptance
Acceptance criteria for this Stage includes completion of all criteria listed below.
Note: Advancement to the Close Stage is not dependent upon Tyler' s receipt of this Stage Acceptance.
Close Stage Deliverables:
Post Project Report.
Close Stage Acceptance Criteria:
Completed report indicating all Project deliverables and milestones have been completed.
City of Seal Beach
Tyler Technologies, Inc - ,
7. General Assumptions
Tyler and City of Seal Beach will use this SOW as a guide for managing the implementation of the Tyler Project as provided and described in the Agreement. There are a number of assumptions which, when acknowledged and adhered to, will support a successful implementation. Assumptions related to specific work packages are documented throughout the SOW. Included here are general assumptions which should be considered throughout the overall implementation process.
7. 1 Project
Project activities will begin after the Agreement has been fully executed.
The City of Seal Beach Project Team will complete their necessary assignments in a mutually agreed upon timeframe in order to meet the scheduled go -live date, as outlined in the Project Schedule.
Sessions will be scheduled and conducted at a mutually agreeable time.
Additional services, software modules and modifications not described in the SOW or Agreement will be considered a change to this Project and will require a Change Request Form as previously referenced in the definition of the Change Control Process.
Tyler will provide a written agenda and notice of any prerequisites to the City of Seal Beach project manager( s) ten ( 10) business days or as otherwise mutually agreed upon time frame prior to any scheduled on- site or remote sessions, as applicable.
Tyler will provide guidance for configuration and processing options available within the Tyler software. If multiple options are presented by Tyler, City of Seal Beach is responsible for making decisions based on the options available.
Implementation of new software may require changes to existing processes, both business and technical, requiring City of Seal Beach to make process changes.
City of Seal Beach is responsible for defining, documenting and implementing their policies that result from any business process changes.
7. 2 Organizational Change Management
Unless otherwise contracted by Tyler, City of Seal Beach is responsible for managing Organizational Change.
Impacted Client resources will need consistent coaching and reassurance from their leadership team to embrace and accept the changes being imposed by the move to new software. An important part of change is ensuring that impacted client resources understand the value of the change, and why they are being asked to change.
7. 3 Resources and Scheduling
City of Seal Beach resources will participate in scheduled activities as assigned in the Project Schedule.
The City of Seal Beach team will complete prerequisites prior to applicable scheduled activities.
Failure to do so may affect the schedule.
Tyler and City of Seal Beach will provide resources to support the efforts to complete the Project as scheduled and within the constraints of the Project budget.
Abbreviated timelines and overlapped Phases require sufficient resources to complete all required work as scheduled.
City of sea! Beach
Tyler Technologies, Inc.
Page j 41
Changes to the Project Schedule, availability of resources or changes in Scope will be requested through a Change Request. Impacts to the triple constraints ( scope, budget and schedule) will be assessed and documented as part of the change control process.
City of Seal Beach will ensure assigned resources will follow the change control process and possess the required business knowledge to complete their assigned tasks successfully. Should there be a change in resources, the replacement resource should have a comparable level of availability, change control process buy -in, and knowledge.
City of Seal Beach makes timely Project related decisions in order to achieve scheduled due dates on tasks and prepare for subsequent training sessions. Failure to do so may affect the schedule, as each analysis and implementation session is dependent on the decisions made in prior sessions.
City of Seal Beach will respond to information requests in a comprehensive and timely manner, in accordance with the Project Schedule.
City of Seal Beach will provide adequate meeting space or facilities, including appropriate system connectivity, to the project teams including Tyler team members.
For on-site visits, Tyler will identify a travel schedule that balances the needs ofthe project and the employee.
7.4 Data
Data will be converted as provided and Tyler will not create data that does not exist.
City of Seal Beach is responsible for the quality of legacy data and for cleaning or scrubbing erroneous legacy data.
Tyler will work closely with City of Seal Beach representatives to identify business rules before writing the conversion. City of Seal Beach must confirm that all known data mapping from source to target have been identified and documented before Tyler writes the conversion.
All in -scope source data is in data extract(s).
Each legacy system data file submitted for conversion includes all associated records in a single approved file layout.
The client will provide the legacy system data extract in the same format for each iteration unless changes are mutually agreed upon in advance. If not, negative impacts to the schedule, budget and resource availability may occur and/ or data in the new system may be incorrect.
The City of Seal Beach Project Team is responsible for reviewing the converted data and reporting issues during each iteration, with assistance from Tyler.
Client is responsible for providing or entering test data ( e. g., data for training, testing interfaces, etc.)
7. 5 Facilities
City of Seal Beach will provide dedicated space for Tyler staff to work with City of Seal Beach resources for both on- site and remote sessions. If Phases overlap, City of Seal Beach will provide multiple training facilities to allow for independent sessions scheduling without conflict.
City of Seal Beach will provide staff with a location to practice what they have learned without distraction.
City of Seal Beach
Tyler Technologies, Inc.
Page / 42
S. Glossary
Acceptance Confirming that the output or deliverable is suitable and conforms to the agreed upon criteria.
Accountable The one who ultimately ensures a task or deliverable is completed; the one who ensures the prerequisites of the task are met and who delegates the work to those responsible. [ Also see RACI]
Application A computer program designed to perform a group of coordinated functions, tasks or activities for the benefit of the user.
Application Programming Interface ( API) A defined set of tools/ methods to pass data to and received data from Tyler software products
Agreement This executed legal contract that defines the products and services to be implemented or performed.
Business Process The practices, policy, procedure, guidelines, or functionality that the client uses to complete a specific job function.
Business Requirements Document A specification document used to describe Client requirements for contracted software modifications.
Change Request A form used as part of the Change Control process whereby changes in the scope of work, timeline, resources, and/ or budget are documented and agreed upon by participating parties.
Change Management Guides how we prepare, equip and support individuals to successfully adopt change in order to drive organizational success outcomes
Code Mapping [ where applicable] An activity that occurs during the data conversion process whereby users equate data ( field level) values from the old system to the values available in the new system. These may be one to one or many to one. Example: Old System [ Field = eye color] [ values = BL, Blu, Blue] maps to New Tyler System [ Field - Eye Color] [ value = Blue].
Consulted Those whose opinions are sought, typically subject matter experts, and with whom there is two-way communication. [ Also see RACI]
Control Point This activity occurs at the end of each stage and serves as a formal and intentional opportunity to review stage deliverables and required acceptance criteria for the stage have been met.
Data Mapping [ where applicable] The activity determining and documenting where data from the legacy system will be placed in the new system; this typically involves prior data analysis to understand how the data is currently used in the legacy system and how it will be used in the new system.
Deliverable A verifiable document or service produced as part of the Project, as defined in the work packages.
Go- Live The point in time when the Client is using the Tyler software to conduct daily operations in Production.
Informed Those who are kept up- to-date on progress, often only on completion of the task or deliverable, and with whom there is just one- way communication. [ Also see RACIj
City of Seal Beach
Tyler Technologies, Inc. Page / 43
Infrastructure The composite hardware, network resources and services required for the existence, operation and management of the Tyler software.
Interface A connection to and potential exchange of data with an external system or application. Interfaces may be one way, with data leaving the Tyler system to another system or data entering Tyler from another system, or they may be bi- directional with data both leaving and entering Tyler and another system.
Integration A standard exchange or sharing of common data within the Tyler system or between Tyler applications
Legacy System The software from which a client is converting.
Modification Custom enhancement of Tyler' s existing software to provide features or functions to meet individual client requirements documented within the scope of the Agreement.
On- site Indicates the work location is at one or more of the client' s physical office or work environments.
Organizational Change The process of changing an organization' s strategies, processes, procedures, technologies, and culture, as well as the effect of such changes on the organization.
Output A product, result or service generated by a process.
Peripheral devices An auxiliary device that connects to and works with the computer in some way. Some examples: scanner, digital camera, printer.
Phase A portion of the Project in which specific set of related applications are typically implemented. Phases each have an independent start, Go - Live and closure dates but use the same Implementation Plans as other Phases of the Project. Phases may overlap or be sequential and may have different Tyler resources assigned.
Project The delivery of the software and services per the agreement and the Statement of Work. A Project may be broken down into multiple Phases.
RACI A matrix describing the level of participation by various roles in completing tasks or Deliverables for a Project or process.
Individuals or groups are assigned one and only one of the following roles for a given task: Responsible ( R), Accountable ( A), Consulted ( C), or Informed ( I).
Remote Indicates the work location is at one or more of Tyler' s physical offices or work environments.
Responsible Those who ensure a task is completed, either by themselves or delegating to another resource. [ Also see RACI]
Scope Products and services that are included in the Agreement.
Clty of Seal Beoch
yier Technologies, inc.
Pogo- r 44
Solution The implementation of the contracted software product( s) resulting in the connected system allowing users to meet Project goals and gain anticipated efficiencies.
Stage The top- level components of the WBS. Each Stage is repeated for individual Phases of the Project.
Standard Software functionality that is included in the base software ( offthe- shelf) package; is not customized or modified.
Statement of Work (SOW) Document which will provide supporting detail to the Agreement defining Project - specific activities, services and Deliverables.
System The collective group of software and hardware that is used by the organization to conduct business.
Test Scripts The steps or sequence of steps that will be used to validate or confirm a piece of functionality, configuration, enhancement, or Use Case Scenario.
Training Plan Document( s) that indicate how and when users of the system will be trained relevant to their role in the implementation or use of the system.
Validation ( or to validate) The process of testing and approving that a specific Deliverable, process, program or product is working as expected.
Work Breakdown Structure ( WBS) A hierarchical representation of a Project or Phase broken down into smaller, more manageable components.
Work Package A group of related tasks within a project.
City of Seal C? each
Tyler ler.hnologies, Inc.
Part 4: Appendices
9, conversion
Incode Utility
S
Billing Conversion
Utility Billing -
Utility Contact Information
Utility Mailing and Billing Addresses
Utility Parcels
Account Master - ( Average monthly payment, deposits, bank drafts, comments/ notes) Meters/ Services
Transaction History— Includes current year plus one prior year Read History
Utility Billing — Legacy/ Historical Views
Unlimited historical transactions provided by client can be converted by Tyler into historical views Incode Financials Conversion
C?. ' J- General Ledger
Standard Conversion Includes:
Full chart of accounts listing, descriptions, and corresponding account types Element ( segment) values and descriptions
Summarized budget figures for current fiscal year
If Unlimited historical transactions as provided by client.
NOTE: Training will be provided on how to import additional budget years from Excel.
Arcounts Payable
Standard Conversion Includes:
Vendor master information, address, primary contact, and NOTES Unlimited historical transactions as provided by client.
Personnel Management
Standard Conversion Includes:
Basic employee information — employee master, address, primary contact, dates, phone numbers, dependents, NOTES
Employee Deductions & Taxes
Employee Direct Deposit Information
Employee Leave Balances
Employee Retirement
Rates/ Base Pay ( salary / hourly compensation)
Unlimited historical transactions provided by client.
NOTE: Employee positions/ deductions will be created according to recommended best business practices.
General Ledger
Standard Conversion Includes:
Full chart of accounts listing, descriptions, and corresponding account types Element ( segment) values and descriptions
Unlimited historical transactions as provided by client.
NOTE: Summarized budget figures for current fiscal year and historical years can be imported into the system from Excel. The client is ultimately responsible for producing the budget figures in Excel and verifying the results. Training will be provided on how to import budgets from Excel.
NOTE: Summarized beginning balance sheet entries, as well as summarized fiscal year activity entries, can be imported into the system from Excel for the current year. The client is ultimately responsible for producing the entries in Excel and verifying the results. Training will be provided on how to import JE' s from Excel.
Accounts Payable
Standard Conversion Includes:
Vendor master information, address, primary contact, and NOTES Unlimited historical transactions as provided by client.
NOTE: 1099 balances and non -1099 balances can be imported into the system using a standard import available to the client from Excel. The client will ultimately be responsible for creating the Excel spreadsheet and verifying the results. Training will be provided on how to import balances from Excel. 6 Personnel Management
Standard Conversion Includes:
Basic employee information — employee master, address, primary contact, dates, phone numbers, dependents, NOTES
Current direct deposit bank information
Federal and state tax withholding information
Unlimited historical transactions provided by client.
NOTE: Employee positions/ deductions will be created according to recommended best business practices.
NOTE: Clients going live on payroll mid -calendar year will have the option to import or enter quarterly employee payroll history to meet federal and state reporting requirements giving the ability to create a single set of W -2' s at calendar year end. The client will ultimately be responsible for entering in the quarterly employee payroll history and verifying the results. Training will be provided on how to enter in this information.
Community Development: Permits
Permit master basic information
Parcels and Addresses
Inspections — Converted to one legacy Inspection type. Original Inspection type will be visible in the workflow section
Sub -Permit Associations — Visible in workflow and attached records section Fees — Converted to one legacy Fee type. Original Fee type will be visible in fees tab Type — Converted to one legacy Permit type. Original Permit type will be converted as a memo custom field
Classification — Converted to one legacy Permit classification. Original Permit classification will be converted as a memo custom field
Notes
Payment and Fee history — Converted to one legacy Fee type Converted as Memo Custom fields
Contacts and Contact Addresses
Type
Classification
Bonds and Escrow
Zones
Activities and Actions
Holds
Conditions
t. Business Management
Business entity
License master basic information
Contacts — Unique ( keyed) contacts converted to global contacts Non - keyed contacts converted to Memo Custom field
Parcel and Addresses
Inspections — Converted to one legacy Inspection type. Original Inspection type will be visible in the workflow section
Fees
Holds
Conditions
Notes
Contractors
Business Types & NAICS codes
Payment and Fee history
Converted as memo custom fields
o Bonds and Escrow
o Activities and Actions
Community Development: Cede Cases
Code Case master basic information
Parcels and Addresses
Inspections — Converted to one legacy Inspection type. Original Inspection type will be visible in the workflow section
Violations — Converted to one legacy Violation type. Original Violation type will be visible in the workflow section
Fees — Converted to one legacy Fee type. Original Fee type will be visible in fees tab Type — Converted to one legacy Code type. Original Code type will be converted as a memo custom field
Notes
Payment and Fee history — Converted to one legacy Fee type Converted as memo custom fields
o Contacts and Contact Addresses
o Type
o Bonds and Escrow
o Zones
o Activities and Actions
o Holds
o Conditions
5'.'. 10fCommunity Development: Plans
Plan master basic information
Parcels and Addresses
Inspections — Converted to one legacy Inspection type. Original Inspection type will be visible in the workflow section
Fees — Converted to one legacy Fee type. Original Fee type will be visible in fees tab Type — Converted to one legacy Plan type. Original Plan type will be converted as a memo custom field
Classification — Converted to one legacy Plan classification. Original Plan classification will be converted as a memo custom field
Notes
Payment and Fee history — Converted to one legacy Fee type Converted as memo custom fields
o Contacts and Contact Addresses
o Type
o Classification
o Bonds and Escrow
o Zones
o Activities and Actions
o Holds
o Conditions
10. Additional Appendices
10. 1 Intentionally left blank.
11. Project Timeline
11. 1 Incode Financial Management Timeline
I •...'. tyler Implementation Schedule: Incode Financial Management Implementation IU Task Name M- 1 Ml M2 M3 I M4 M5 I M6 M7 I M8 I M9 M10 Mll M12 M13 M14 I M15 M16 Incode Financial Management
11 1
y..
Stage 1: Initiate and Plan ( All applications)
Stage 2: Assess & Define•
Stage 3: Prepare Solution
Stage 4: Production Readiness
Stage 5: Production
Stage 6: Close
Project Complete
This timeline is an example. Please use it as a general guide ONLY. Its purpose is to demonstrate the order in which various products are typically implemented and the potential overlap of stages for each phase The exact timing of each deliverable depends on many factors including, but not limited to, the client' s ability to commit resources to the project, client blackout dates, and the alignment of client business practices with Tyler implementation methodology. Tyler makes no guarantees that implementation schedules will align with this example.
City of Seal Beach
Tyler Technologies, Inc.
Page l 50
11. 2 Incode Utility Billing Timeline
tyleC Implementation Schedule: Incode Utility Billing Implementation ID Task Name M- 1 M1 M2 M3 I M4 MS I M6 M7 I MS I M9 I M10 M11 M12 M13 M14 M15 M16 Incode Utility Billing
Stage 1: Initiate and Plan ( All applications) r1
Stage 2: Assess & Define
Stage 3: Prepare Solution
Stage 4: Production Readiness
stage 5: Production
Stage 6: close
Project Complete
This timeline is an example. Please use it as a general guide... ONLY. Its purpose is to demonstrate the order in which various products are typically implemented and the potential overlap of stages for each phase. The exact timing of each deliverable depends on many factors including, but not limited to, the client' s ability to commit resources to the project, client blackout dates, and the alignment of client business practices with Tyler implementation methodology. Tyler makes no guarantees that implementation schedules will align with this example.
City of Seal Beach
Tyler Technologies, Inc.
Page l 51
11. 3 MyCivic Timeline
ty er Implementation Schedule: MyCivic Implementation
ID Task Name M- 1 Ml I M2 I M3 M4MS I M6 I M7 I MS I M9 M10 M11 M12 1 M13 M14 M15 M16 MyCivic
1 j
M
j
Stage 1: Initiate and Plan ( All applications)
Stage 2: Assess & Define
Stage 3: Prepare Solutionrl
Stage 4: Production Readiness
Stage 5: Production
Stage 6: Close
Project Complete
This timeline is an example. Please use it as a general guide ONLY. Its purpose is to demonstrate the order in which various products are typically implemented and the potential overlap of stages for each phase. The exact timing of each deliverable depends on many factors including, but not limited to, the client' s ability to commit resources to the project, client blackout dates, and the alignment of client business practices with Tyler implementation methodology. Tyler makes no guarantees that implementation schedules will align with this example.
11. 4 Intentionally left blank.
City of Seal Beach
Tyler Technologies, Inc.
Page If 52
Exhibit F
Y
Exhibit F
Web Services -Hosted Application Terms
Tyler Technologies, Inc. will provide you with the hosted applications indicated in the Investment Summary. The terms and conditions contained in this document only apply to our provision of those applications. Capitalized terms not otherwise defined will have the meaning assigned to such terms in the Agreement.
1. Hosted Applications. We will provide you with any of the following hosted applications as indicated in the Investment Summary.
1. 1. Web Services: Our Web Services are designed to enable you to easily establish a presence on the Internet. Our Web Hosting and Design is composed of our Web Hosting and Design Publishing Component and other miscellaneous components. These components may be used independently or in conjunction with each other.
1. 2. Utility Billing On -Line: Our Utility Billing On -Line Component allows you to make available certain information from your utility billing system to citizens with Internet access. This information is posted to your web site, which is hosted on our web server. With the proper security clearance, citizens with Internet access have access to the data which can include: Consumption information, service level information, requests for service, accounting information and the opportunity to pay their Utility Bill over the Internet using a credit card.
1. 3. Court On -Line: Our Court On -Line Component provides the ability for municipal court fines to be paid by credit card via the Internet. This system interfaces seamlessly with our Incode Municipal Court System.
1. 4. On -Line Records Search: Our On -Line Records Search Component allows you to display citations and/ or docket information. The website can be available for public view or locked down to secured access only. This system interfaces seamlessly with our INCODE Municipal Court System.
1. 5. Building Projects On -Line: Our Building Projects On - Line Component allows you to make available certain information from your building projects system to citizens with Internet access. This information is posted to your web site, which is hosted on our web server. With the proper security clearance, citizens with Internet access have access to the data which can include:
Building project status, inspection results, inspection scheduling and the opportunity to pay their building projects over the Internet using a credit card.
1. 6. Business License On -Line: Our Business License On -Line Component allows you to make available certain information from your business license system to citizens with Internet access. This information is posted to your web site, which is hosted on our web server. With the proper 4 1
Exhibit F
security clearance, citizens with Internet access have access to the data which can include:
business license status, business license renewal and the opportunity to pay their business license over the Internet using a credit card.
1. 7. Accounts Receivable On -Line: Our Accounts Receivable On -Line Component allows you to make available certain information from your accounts receivable system to citizens with Internet access. This information is posted to your web site, which is hosted on our web server. With the proper security clearance, citizens with Internet access have access to the data which can include:
current balance, contract status, and the opportunity to pay the accounts receivable over the Internet using a credit card.
1. 8. Call Center On -Line: Our Call Center On -Line Component allows you to make available certain information from your call center system to citizens with Internet access. This information is posted to your web site, which is hosted on our web server. With the proper security clearance, citizens with Internet access have access to the data which can include: current and past incidents, create a new incident and view status of incident.
1. 9. Property Tax On -Line: Our Property Tax On -Line Component allows you to make available certain information from your Property Tax System to citizens with Internet access. This information is posted to your web site, which is hosted on our web server. With the proper security clearance, citizens with Internet access have access to the data which can include: parcel number, receipt number, tax amount due, and the opportunity to pay the Property Tax over the Internet using a credit card.
1. 10. Sa/ es Tax On -Line: Our Sales Tax On -Line Component allows you to make available certain information from your Sales Tax System to citizens with Internet access. This information is posted to your web site, which is hosted on our web server. With the proper security clearance, citizens with Internet access have access to the data to pay outstanding Sales Tax balances over the Internet using a credit card.
1. 11 -Code Enforcement Online: Our Code Enforcement Online component allows you to make available certain information from your code enforcement system to citizens with Internet access. This information is posted to your website, which is hosted on our web server. With the proper security clearance, citizens with Internet access have access to data which can include: Incident Status, Incident Results.
2. Term. We will grant you access to the hosted applications provided you timely pay all associated fees.
The term of your subscription will commence on the Effective Date and will continue for five ( 5) years.
Thereafter, the term will be automatically extended in separate one ( 1) year periods. Either party may cancel this subscription to the hosted applications upon sixty ( 60) days written notice to the other.
3. Nature of Website. We shall maintain a website for you, allowing a user to access relevant data provided by you. This data may include information from your Tyler Software system. This website will be capable of accepting payments via Secured Socket Layer (SSL) encryption and credit card or debit card charge.
4. Data Procurement. You must set up a merchant account with Electronic Transaction System Corporation or authorized. net to be solely used for our Web Service transactions. The merchant account must be set up to fund to your bank account. You are responsible for all fees and expenses of y
Pj
Exhibit F
the merchant account. You must install and run Tyler Web Services to allow us to transfer the necessary data from your system to our servers on a real time basis. Certain information, such as payment information, must be conveyed to you. We will be responsible for transferring such information to you on a regular basis. Tyler Web Services requires a dedicated IP address; assignment of this address is your responsibility. While we assume responsibility for data transfer, we are not responsible for accuracy of data transferred.
5. Limited License. Your license to use the hosted applications will automatically terminate upon cancellation of this subscription, or upon your failure to timely pay fees or otherwise comply with these terms and conditions.
6. Ownership of Data. All data you provide to us for the purposes of generating the website shall remain your property. Should you terminate your subscription, we shall return to you any such data in our possession.
7. Fees. You agree to pay the initial fee and annual subscription fees as stated in the Investment Summary and in accordance with our Invoicing and Payment Policy. We may increase the per -transaction fee for online payment no more than once per year with sixty (60) days prior written notice. 3 y
i"1
CERTIFICATE OF LIABILITY INSURANCE DATE( MM/ DD/ YYYY)
X COMMERCIAL GENERAL LIABILITY
2/ 12/ 2021
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO 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 CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER( S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER.
IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy( ies) must be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement( s).
PRODUCER
Moira Crosby
Hays Companies Inc. PHONE FAX
133 Federal Street, 4th Floor
A/ C No Ext), A1C No):
E- MAIL
ADDRESS: mcrosb y @ha yscorn companies P com
INSURERS AFFORDING COVERAGE NAIC #
Boston MA 02110
11000, 000
MED EXP ( Any one person) $
INSURERA: Hartford Fire Insurance Comp ny 19682 INSURED INSURER B: Hartford Casualt Insurance Coan m 29424
Tyler Technologies, Inc.
INSURERC: Llo ds of London Syndicates 4000 & 5101 Tennyson Parkway INSURER D: 9667 &
INSURER E: 1686 Plano TX 75024
INSURER F:
COVERAGES CECC PTIIATAnnnl DI= . nn
C 7z1B REVISION NUMBER:
THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACTOR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAYBE 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. TN SR ADDL SUER
LTR TYPE OF INSURANCE POLICY EFF POLICY EXP
1= WVD POLICY NUMBER MM/ DD/ YYYYI ( MM/ DDfYYYYJ LIMITS
X COMMERCIAL GENERAL LIABILITY
A CLAIMS -MADE a] OCCUR
X 08UENAY8572 4/ 1/ 2020 4/ 1/ 2021
EACH OCCURRENCE $ 1, 000, 000
DAMAGE TO RENTED
PREMISES Ea occurrence $ 11000, 000
MED EXP ( Any one person) $ 10, 000
PERSONAL & ADV INJURY S 1, 000, 000
GEN' LAGGREGATE LIMIT APPLIES PER.
GENERAL AGGREGATE S 2, 000, 000
110TIER: LICY F—] JECT PRO LOCPRODUCTS-COMP/ OPAGG S 2, 000, 000 A
AUTOMOBILE
X
X
LIABILITY
ANY AUTO
ALL OWNED SCHEDULED
AUTOS AUTOS
HIREDAUTOS X NON - OWNED
AUTOS
X 08UENAY8572 4/ 1/ 2020 4/ 1/ 2021
COMBINED SINGLE LIMIT
Ea accident S 1, 000, 000
BODILY INJURY ( Per person) S
BODILY INJURY ( Per accident) S
PROPERTY DAMAGE
Per S accident
X UMBRELLA LIAB X OCCUR
B
EXCESS LAB
CLAIMS - MADE
EACH OCCURRENCE S 25, 000, 000
DED RETENTIONS X 08XHUAZ8392 4/ 1/ 2020 4/ 1/ 2021
WORKERS COMPENSATION
AGGREGATE S
S
25, 000, 000
AND EMPLOYERS' LIABILITY
Y/ N
ANY PROPRIETORiPARTN ER/ EXECUTIVE
B OFFICER/ MEMBER EXCLUDED? N / A
Mandatory in NH) 08WEeL5271 4/ 1/ 2020 4/ 1/ 2021 Ifyes. describe under DESCRIPTION OF OPERATIONS below
PER OTHSTATUTE ER
E. L. EACH ACCIDENT S
E, L. DISEASE - EA EMPLOYEE $
1, 000, 000
1, 000, 000
C Cyber / Privacy Prof Liab B0621PTYLE000220 12/ 17/ 2020 12/ 17/ 2021 C Cyber/ Privacy Prof Liab H0621PTYLE000320 12/ 17/ 2020 12/ 17/ 2021 E. L. DISEASE - POLICY LIMIT S
Primary Limit
Excess L— t
1, 000, 000
10, 000, 000
10, 000, 000
DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES ( ACORD 101, Additional Remarks Schedule, may be attached if more space is required) City Of Seal Beach is Additional Insured required by written contract. under the general liability, auto and umbrella policies where
CERTIFICATE HOLDER
CANCELLATION
City of Seal Beach
211 8th St
Seal Beach, CA 90740- 6379
SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE
THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS.
AUTHORIZED REPRESENTATIVE
ames Hays/ CEMITC
ACORD 25 ( 2014/ 01) 1988- 2014 ACORD CORPORATION. All rights reserved.
INS025 ( 201401) The ACORD name and logo are registered marks of ACORD
RESOLUTION 7110
A RESOLUTION OF THE SEAL BEACH CITY COUNCIL
AUTHORIZING THE CITY MANAGER TO EXECUTE A
SOFTWARE AS A SERVICE AGREEMENT WITH TYLER
TECHNOLOGIES, INC. FOR FINANCIAL AND LAND
MANAGEMENT SOFTWARE AND SERVICES
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, the City of Seal Beach has determined that the City must immediately replace its financial software and land management system because its current system is outdated and will be made obsolete due to changes in technology; and
WHEREAS, the City became aware of the full scope of this obsolescence and need to replace software when Microsoft announced a software update early in 2021, creating a critical need for an emergency software replacement; and WHEREAS, Seal Beach Municipal Code Section 3. 20. 025 provides for an exemption from bidding requirements for purchases in certain circumstances, including the purchase of a commodity ( software and systems) that can be only obtained from one vendor and, separately, emergency purchases and, separately, the purchase of professional services, all of which apply to this situation based on information in the staff report from the Finance Director; and WHEREAS, the City worked with its technology consultant to develop a request for proposals for a new online finance software system with expanded functionality and current technology and the ability to support the City's needs in the future; and WHEREAS, the City determined that Tyler Technologies, Inc. is uniquely qualified to provide its financial software and land management system as an online software service that will serve the needs of the City based on price and functionality and, most important, timeliness; and
WHEREAS, based on these factors, it is essential that the City enter into a five- year Software as a Service Agreement (" Agreement") with Tyler Technologies, Inc., which includes system administration, system management, and system monitoring activities, including but not limited to software configuration, data conversion, implementation, training, service, and access to system upgrades. After the initial five- year term, the Agreement will automatically renew for additional one- year terms until terminated by either party providing notice of termination not less than sixty (60) days prior to the end of the then -current term; and
WHEREAS, the first year costs include the first-year SAAS configuration and implementation of $ 223, 770, first- year staff augmentation/ contingency for 44, 754, and an ongoing annual subscription service of $ 175,745, for a total not - to -exceed cost of $ 444, 269 ( collectively " First Year Costs").
NOW, THEREFORE, THE SEAL BEACH CITY COUNCIL DOES HEREBY RESOLVE.-
SECTION
ESOLVE:
SECTION 1. the City Council hereby approves Budget Amendment No. BA 21- 08- 01 to modify the Fiscal Year 2020/ 2021 budget as follows:
SECTION 2. The City Council hereby approves that Software as a Service Agreement for Tyler Incode Financial Software and Tyler Energov Land Management between the City of Seal Beach and Tyler Technologies, Inc., in an amount not to exceed $ 444, 269 for First - Year Costs, including: one- time SAAS configuration and implementation costs of $ 223, 770, first- year staff augmentation/ contingency for $ 44, 754, and an ongoing annual subscription service of $ 175, 745, for a total not - to - exceed cost of $ 444, 269 for the First Year Costs, as set forth in Exhibit " A", attached hereto and incorporated herein by this reference as though set forth in full.
Adopted/
Revised Proposed Budget
Description Account Budget Budget Amendment
General Fund — 001- 080- 47000 9, 475, 372 9, 437, 276 38, 096) Transfers Out CIP
CIP Fund — 045- 000- 31500 11, 290, 507 11, 252, 411 38, 096) Transfers In
CIP Fund — 045- 333- 49605 10, 230, 907 10, 192, 811 38, 096) Capital Projects Project BG 1504
Water Fund — 019- 950- 49605 9, 479, 839 9, 531, 248 51, 409 Capital Projects Project BG 1504
Sewer Fund — 044- 975- 49605 1, 949, 741 2, 001, 150 51, 409 Capital Projects Project BG 1504
General Fund— 001- 020- 44000 579, 100 655,640 76, 540 Contract Professional Water Fund — 017- 900- 44000 389, 112 407, 959 18, 847 Contract Professional Sewer Fund — 043- 925- 44000 222, 400 241, 247 18, 847 Contract Professional SECTION 2. The City Council hereby approves that Software as a Service Agreement for Tyler Incode Financial Software and Tyler Energov Land Management between the City of Seal Beach and Tyler Technologies, Inc., in an amount not to exceed $ 444, 269 for First - Year Costs, including: one- time SAAS configuration and implementation costs of $ 223, 770, first- year staff augmentation/ contingency for $ 44, 754, and an ongoing annual subscription service of $ 175, 745, for a total not - to - exceed cost of $ 444, 269 for the First Year Costs, as set forth in Exhibit " A", attached hereto and incorporated herein by this reference as though set forth in full.
SECTION 3. The City Council hereby authorizes and directs the City Manager to execute the attached Agreement on behalf of the City in a form satisfactory to the City Attorney.
PASSED, APPROVED and ADOPTED by the Seal Beach City Council at a regular meeting held on the Stn day of February, 2021 by the following vote:
AYES: Council Members:
NOES: Kalm_ ick, Varipapa Moore Sustarsic Massa Lavitt Council Members:
ABSENT: Council Members:
ABSTAIN: Council Members:
Joe Kalmick, Mayor
AT T:..
Gloria D. Harps r, City Clerk ,
STATE OF CALIFORNIA }
COUNTY OF ORANGE } SS
CITY OF SEAL BEACH }
1, Gloria D. Harper, City Clerk of the City of Seal Beach, do hereby certify that the foregoing resolution is the original copy of Resolution 7110 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular vlie ting held on the 8th day of February, 2021.
Gloria D. Harpe City C rk----.--
RESOLUTION 7362
A RESOLUTION OF THE SEAL BEACH CITY COUNCIL
APPROVING AND AUTHORIZING AMENDMENT NO. 1 TO
THE PROFESSIONAL SERVICES AGREEMENT WITH
HOLISTIC SYSTEM INTEGRATION SOLUTIONS
WHEREAS, The City of Seal Beach (City) is implementing a new land management software system and requires expert information technology assistance; and, WHEREAS, the City has contracted with Holistic System Integration Solutions to assist in the software implementation; and,
WHEREAS, the City has determined that additional time is needed to complete the proposed scope of work; and,
WHEREAS, Consultant is a highly qualified consulting firm, specializing in information technology support and will serve the needs of the City; and, WHEREAS, City and Consultant wish to extend the Term of the Agreement to June 30, 2023, as provided herein.
NOW, THEREFORE, THE SEAL BEACH CITY COUNCIL DOES HEREBY RESOLVE:
Section 1. The City Council hereby approves Amendment No. 1 to the Professional Services Agreement with Holistic System Integration Solutions as set forth in Exhibit “A”, attached hereto and incorporated herein by this reference as though set forth in full, extending the end of the term to June 30, 2023.
Section 2. The Council hereby directs the City Manager to execute the Amendment on behalf of the City.
PASSED, APPROVED and ADOPTED by the Seal Beach City Council at a regular meeting held on the 9th day of January, 2023 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 7362 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 9th day of January, 2023
Gloria D. Harper, City Clerk
PROFESSIONAL SERVICES AGREEMENT
Amendment No. 1
for
Temporary Software Implementation Services
Between
City of Seal Beach
211 - 8th Street
Seal Beach, CA 90740
&
Holistic System Integration Solutions
P.O. Box 6313
La Quinta, CA 92248
760-861-6532
This Amendment No. 1, dated January 9, 2023, amends that certain agreement (Agreement) made as of June 14, 2021 by and between the City of Seal Beach (City), a California charter city, and Holistic System Integration Solutions (Consultant), a Sole Proprietorship.
2 of 3
RECITALS
A. City and Consultant are parties to the Agreement, pursuant to which Consultant provides professional consulting services to the City for the purposes of providing guidance in design, configuration, and implementation of Tyler EnerGov software system.
B. City and Consultant wish to amend the Agreement for Consultant to continue providing such services on an as needed basis through the end of fiscal year 2022-2023.
AMENDMENT NO. 1
NOW, THEREFORE and in consideration of the foregoing and of the mutual covenants and promises herein set forth, the parties agree to amend the Agreement as follows:
Section 1. Section 2.0 (Term) of the Agreement is hereby amended to read as follows:
The term of this Agreement shall commence on June
14, 2021 and shall remain in full force and effect until 11:59 p.m. on June 30, 2023, unless sooner terminates
as provided in Section 5.0 of this Agreement.
Section 2. All references to the term “Agreement” throughout Sections
1.0 through 28.0 inclusive, of the Agreement are hereby modified to include the this Amendment No. 1, dated January 9, 2023, as if all of those terms are fully set forth therein.
Section 3. Except as expressly modified or supplemented by this Amendment No. 1, all other provisions of the Agreement shall remain unaltered and in full force and effect.
Section 4. The person executing this Amendment No. 1 on behalf of Consultant warrants that he or she is fully authorized to execute this Amendment NO. 1 on behalf of said Party, and that by his or her execution, Consultant is formally bound to the provisions of this Amendment No. 1.
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
By:_________________________
Jill R. Ingram, City Manager
Attest:
By:_________________________
Gloria D. Harper, City Clerk
Approved as to Form:
By:_________________________
Craig A. Steele, City Attorney
CONSULTANT:
Holistic System Integration Solutions, a
Sole Proprietorship
By: __________________________
Angelica Zarco, President
PROFESSIONAL SERVICES AGREEMENT
for
Temporary Software Implementation Services
between
City of Seal Beach
211 - 8th Street
Seal Beach, CA 90740
P.
Holistic System Integration Solutions
P. O. Box 6313
La Quinta, CA 92248
760- 861- 6532
This Professional Service Agreement ("the Agreement') is made as of June 14, 2021 the " Effective Date") by and between Holistic System Integration Solutions Consultant'), a Sole Proprietorship, 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 § 3.20. 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. 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.
2of18
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. 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 June 14, 2021 and shall remain in full force and effect until 11: 59 p. m. on December 31, 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 $77,000. 00 ( seventy- seven thousand dollars) 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 extend the time period as necessary and 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 of this Agreement.
6. 2. Angelica Zarco is the Consultant' s primary representative for purposes of this Agreement. Angelica Zarco 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: Holistic System Integration Solutions
P. O. Box 6313
La Quinta, California 92248
Attn: Angelica Zarco, President
7. 2. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service.
4of18
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 subcontractors providing any of the Services under this Agreement shall not 5of18
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 indemnification is in addition to Consultant' s duty to defend, indemnify and hold harmless as set forth in any other provision of this Agreement. 6of18
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.
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 7of18
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 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 8of18
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 9of18
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 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 10 of 18
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.
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 11 of 18
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
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 12 of 18
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 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.
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 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 13 of 18
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
Attest:
M
Approved as Fo
By:
Craig A. Steele, City Attorney
CONSULTANT: Holistic System
Integration Solutions, a California
Corporation
B:
Angelica Zarco, Preset
ase note, two signatures required
orporafions pursuant to California
Lwiporations Code Section 313 from
of the following categories: ( i) the
erson of the board, the president
any vice president, and ( ii) the
ecreiary, any assistant secretary, the
chief financial officer or any assistant
treasurer of such corporation.)
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 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 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 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 at 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, 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 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 L
AGENDA STAFF REPORT
DATE: January 9, 2023
TO: Honorable Mayor and City Council
THRU: Jill R. Ingram, City Manager
FROM: Alexa Smittle, Community Development Director
SUBJECT: Short Term Rentals
________________________________________________________________ SUMMARY OF REQUEST:
That the City Council:
1. Conduct a public hearing to receive input and consider the Planning Commission’s recommendation to approve a Zone Text Amendment for Short Term Rentals; and,
2. Introduce, waive full reading, and read by title only Ordinance 1701, an Ordinance amending the City of Seal Beach Municipal Code by revising Section 11.4.05.135 of Chapter 11.2.05 of Title 11.
BACKGROUND AND ANALYSIS:
Two recent legal cases related to short-term rentals were reviewed in separate California Courts of Appeal, Kracke v. City of Santa Barbara (2021) and Keen v.
City of Manhattan Beach (2022). While the details of the cases varied, the respective opinions of the appellate courts both held that the California Coastal Act overrides cities’ short-term rental bans, as such bans restrict coastal access and therefore any bans would require Coastal Commission approval. As a result, at the September 26, 2022 City Council meeting, the City Council directed staff to suspend enforcement of Section 11.4.05.135 of the City’s Municipal Code which states, “No residentially zoned property, or any portion thereof, shall be leased or rented for a term of 29 days or less for any purpose, including but not limited to any residential or commercial purpose such as vacation rentals, weddings, or other event rentals.” The City Council further directed staff to return with a program for short-term rentals (STRs). As STRs are addressed within the Zoning Code, this item was presented to the Planning Commission for its review and recommendation prior to this presentation to the City Council.
The proposed Zone Text Amendment would amend Seal Beach Municipal Code Section 11.4.05.135 to allow for STRs in certain residential zones under the
conditions described in Attachment A, the draft Ordinance. Some of the key points of the proposed amendment are as follows.
1. An owner of a residential unit who wishes to operate an STR would need to apply for a permit initially, and renew it annually.
2. An owner may only own one STR.
3. STRs must be located in the Coastal Zone.
4. The total number of STR permits issued will be limited to 25. A program to manage applications, including a lottery system if required, will be established by staff.
5. STR operators must have a business license and remit 12 percent transient occupancy taxes to the City.
6. STRs may not be:
a. Income-restricted units,
b. Accessory dwelling units established after January 1, 2020, c. Junior accessory dwelling units, or
d. Units within developments that otherwise prohibit STRs, e.g. through community covenants, conditions, and restrictions.
7. STRs may only host a total of two persons per bedroom, plus two; e.g. for a three bedroom house, maximum occupancy would be eight.
8. STRs may not host large events.
9. The owner must identify a local point of contact that is available 24 hours a day, 7 days a week that can address issues at the STR.
10.Owners must provide specific information to occupants and post information within the unit.
11.Owners must maintain liability insurance and indemnify the City.
12.STR permits shall not apply to those existing vacation rentals in operation with a valid Conditional Use Permit.
13.The program will be evaluated by the City Council 18 months after implementation, and annually thereafter.
This is a challenging situation in that the recent court decisions necessitate that the City take action, but the potential impacts of this Zone Text Amendment are not fully known at this time. On the one hand, an increase in overnight accommodations is likely to provide support to local businesses that benefit from tourism, and new STRs will increase transient occupancy tax revenues. The City’s General Plan supports tourism of the coastline, and Seal Beach has fewer overnight accommodations than neighboring coastal jurisdictions. Above all, it is important the City be compliant with the Coastal Act, which is the impetus for this STR program.
However, staff believes steps must be taken to ensure no negative impacts occur within existing residential neighborhoods, particularly related to noise and similar disruptions. In addition, the use of housing as overnight accommodations may conflict with the intent of other State laws, particularly as they relate to certification of the City’s Housing Element by the California Department of Housing and
Community Development. Recent housing legislation is aimed at increasing the volume of available homes. It is with these challenges in mind that staff is proposing to limit the number of short-term rentals at this time and has included programmatic aspects of the proposed Ordinance intended to make STR rules clear to all future operators so they may be good neighbors. In addition, staff will work with larger hosting platforms such as AirBnB and VRBO to enforce the proposed permits and applicable taxes.
A public hearing for this item was held by the Planning Commission on November 7, 2022. The Planning Commission recommended two changes to the draft Ordinance that was presented by staff. First, staff had recommended limiting the number of STRs to one percent of the housing units in the Coastal Zone. By County Assessor records, that would have been a limit of 45 STRs. The Planning Commission recommended starting smaller, specifically 25 units, as there is always opportunity to increase the number of STRs, but difficulty in reducing the allowable number. Second, the Planning Commission recommended this program be evaluated 18 months after adoption, giving the City Council an opportunity to review market demand, revenues, and service costs. Both of these changes have been incorporated into proposed Ordinance 1701. If approved by the City Council, staff will then pursue a Coastal Development Permit from the Coastal Commission to ensure compliance with the Coastal Act.
ENVIRONMENTAL IMPACT:
The adoption of this Ordinance is not a “project” under the California Environmental Quality Act, Public Resources Code Section 21000 et seq. and the State CEQA Guidelines (collectively “CEQA”) because it can be seen with certainty that the new regulation of short-term rentals in fully built-out residential areas will lead to no direct or indirect physical change in the environment. The Zone Text Amendment consists only of minor revisions and clarifications to existing regulations and specification of procedures related thereto in certain residentially zoned property to ensure consistency and eliminate internal conflict between existing provisions.
The Ordinance therefore is not subject to CEQA pursuant to CEQA Guidelines Section 15060(c)(2) and Section 15301, because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.
LEGAL ANALYSIS:
This item has been reviewed as to form.
FINANCIAL IMPACT:
No direct allocation of funds is being requested at this time. This Ordinance will result in additional demand on services, but is also expected to generate additional revenues.
STRATEGIC PLAN:
This item is not applicable to the Strategic Plan.
RECOMMENDATION:
That the City Council:
1. Conduct a public hearing to receive input and consider the Planning Commission’s recommendation to approve a Zone Text Amendment for Short Term Rentals; and,
2. Introduce, waive full reading, and read by title only Ordinance 1701, an Ordinance amending the City of Seal Beach Municipal Code by revising Section 11.4.05.135 of Chapter 11.2.05 of Title 11.
SUBMITTED BY: NOTED AND APPROVED:
Alexa Smittle Jill R. Ingram
Alexa Smittle, Community
Development Director
Jill R. Ingram, City Manager
ATTACHMENTS:
A. Ordinance 1701
B. Ordinance Redline with Planning Commission Changes
C. Planning Commission Resolution 22-19
ORDINANCE 1701
AN ORDINANCE OF THE CITY OF SEAL BEACH AMENDING THE SEAL BEACH MUNICIPAL CODE AMENDING SECTION 11.4.05.135 (SHORTTERM RENTAL OF RESIDENTIALLY ZONED PROPERTY) TO PERMIT
AND REGULATE SHORT-TERM RENTALS IN RESIDENTIAL ZONES IN
THE CITY AND FINDING THE ORDINANCE TO BE EXEMPT FROM
REVIEW UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
THE CITY COUNCIL OF THE CITY OF SEAL BEACH DOES ORDAIN AS FOLLOWS:
Section 1. Section 11.4.05.135 of the Seal Beach Municipal Code is hereby amended in its entirety to read as follows:
“11.4.05.135 Short-Term Rental of Residentially Zoned Property.
A. Purpose. The purpose of this Chapter is to establish regulations, standards, and a permitting process governing the renting or leasing of privately owned visitor-serving residential dwelling units on a short-term basis in order to maintain the long-term rental housing stock in the City; comply with the Coastal Act; ensure the collection and payment of Transient Occupancy Taxes ("TOT"); safeguard the residents of the City of Seal Beach by ensuring that Short-Term Rental activities do not threaten the character of residential neighborhoods; and ensure that such Short-Term Rental activities do not become a nuisance, or threaten the public health, safety, or welfare of neighboring properties.
B. Definitions.
The following definitions shall apply to this Section:
"Booking Transaction" means any reservation and/or payment service provided by a person or entity who facilitates a Short-Term Rental transaction between a prospective Guest and a Short-Term Rental Owner.
“Coastal Zone” shall have the same meaning as California Public Resources Code (PRC) Section 30103(a), as may be amended from time to time. "City" means City of Seal Beach.
"Director" means the Director of Community Development or their designee. "Guest" means any person or persons renting a Short-Term Rental as a transient occupant.
"Local Contact Person" means the Owner or person designated by the Owner to respond to and take remedial action regarding Short-Term Rental issues or complaints. "Owner" or “STR Owner” means a property owner who is contracting with Guests for Short-Term Rental of any structure or portion of a structure for dwelling, lodging or sleeping purposes, either directly or indirectly through a Hosting Platform such as VBRO or AirBnB. “Owner” may be a person, group or entity. "Platform Agreement" means a duly-executed agreement between a Hosting Platform and the City, which, among other things, provides that the Hosting Platform will collect from Short-Term Rental Tenants and pay the Transient Occupancy Tax to the City on behalf of STR Owners, and will book only those STRs that have a valid ShortTerm Rental Permit. "Primary Residence" means a person's permanent residence or usual place of return for housing as documented by at least two (2) of the following current documents:
driver's license; voter registration; tax documents showing the residential unit as the person's residence; or a utility bill.
"Prohibited Buildings List" means a list maintained by the City identifying the address(es) of all buildings and/or properties whose owner(s), including any applicable homeowners' association or board of directors, have notified the City, pursuant to City procedures, that Short-Term Rentals are not permitted to operate anywhere in such building or property including, without limitation, deed restricted affordable housing units.
"Short-Term Rental” ("STR") means a single residential dwelling unit, or portion thereof, that is offered or provided to paying Guests by an STR Owner for twenty-nine (29) or fewer consecutive nights. The term "Short-Term Rental" shall not include hotels, motels, inns, or bed and breakfast inns.
"Short-Term Rental Advertisement" means any method of soliciting Guests to use a dwelling unit for Short-Term Rental purposes.
"Short-Term Rental Permit" or "Permit" means a Permit, with a Permit number, issued by the City to allow Short-Term Rentals.
"Short-Term Rental Tenant" (“STR Tenant”) means a person who has entered into an agreement to compensate an Owner for the use and occupancy of a Short-Term Rental, and who shall be responsible for compliance with the applicable terms of this Chapter and the STR Permit.
"Transient Occupancy Tax" ("TOT") means local Transient Occupancy Tax as set forth in Chapter 4.35 of the Seal Beach Municipal Code or any successor ordinance.
C. Permit Required.
1. No person or entity shall advertise, rent to a Guest, or otherwise operate a Short-Term Rental (“STR”) in the City unless a Permit has been issued by the City pursuant to this Chapter. The Owner of an STR shall apply to obtain a Permit from the City and must remain in compliance with all requirements of this Chapter. The Director will provide an application form for an STR Permit which shall include all information determined by the Director to be necessary to evaluate the eligibility of the Owner and subject property, consistent with this Chapter.
2. STR must be located within the Coastal Zone.
3. The total number of STR Permits shall not exceed twenty-five (25).
4. STR Permits shall be issued on a lottery basis to eligible applicants.
5. The STR Permit required by this Chapter shall not apply to any “vacation rental” in operation pursuant to a valid Conditional Use Permit (“CUP”) issued by the City under Ordinance No. 1619-U prior to October 1, 2022, as long as such CUP remains valid and in effect. The STR shall comply with the conditions of its CUP and the operational requirements of this Chapter. If a CUP is terminated or revoked, the Owner shall obtain an STR permit prior to re-establishing an STR on the same property.
6. The City Council shall establish a fee for an STR Permit by resolution provided, however, the fee shall be no greater than necessary to defer the cost incurred by the City in administering the provisions of this Chapter.
7. An STR Permit is valid for one (1) year from the date of issuance. The STR Permit is personal and may not be transferred or assigned and does not run with the land. An STR Permit may be renewed annually by the Director if the STR Owner: (1) pays the renewal fee; (2) provides information concerning any changes to the previous application for, or renewal of, the STR Permit; (3) submits records to demonstrate compliance with this Chapter as required by the Director; and (4) the STR is otherwise in compliance with the requirements of this Chapter.
8. The STR Owner shall identify, to the satisfaction of the City, a Local Contact Person, who shall be available twenty-four (24) hours per day, seven (7) days a week for: (1) responding within one (1) hour to complaints regarding the condition, operation, or conduct of the STR or its occupants; and (2) taking any remedial action necessary to resolve such complaints.
9. STR Permits issued pursuant to this Chapter are subject to the following standard STR permit conditions, in addition to any other property-specific condition the Director deems necessary in order to maintain neighborhood compatibility:
(a) The Owner shall, by written agreement with the STR Tenant, limit overnight occupancy of the STR to a specific number of occupants. The maximum number of Guests who may occupy the STR at one time is two persons per bedroom, plus two additional Guests (including children). Lofts that meet California Building Code egress requirements are considered a bedroom for the purposes of the occupancy calculation. In no event may the maximum occupancy exceed twelve (12) persons in any STR.
(b) Large-scale events (i.e., exceeding maximum allowed occupancy) such as parties, weddings, fundraisers, and conferences, are prohibited. (c) The Owner shall insure that the occupants and/or Guests of the STR do not create unreasonable noise or disturbances, engage in disorderly conduct, or violate provisions any Federal, State, or Local law pertaining to noise, disposal of waste, disorderly conduct, the consumption of alcohol, or the use of illegal drugs. (d) The Owner shall, upon notification that occupants and/or Guests of his or her STR have created unreasonable noise or disturbances, engaged in disorderly conduct or committed violations of any Law, including those pertaining to noise, disposal of waste, disorderly conduct, the consumption of alcohol or the use of illegal drugs, promptly prevent a recurrence of such conduct by those occupants or Guests. (e) The Owner of the STR unit shall post a copy of the STR Permit and the STR Permit conditions in a conspicuous place within the STR. (f) Eligibility requirements. The Owner must satisfy the following requirements at the time of submitting an STR Permit application:
(i) The dwelling unit shall not be a deed-restricted affordable housing unit, in a group residence as defined by Section 11.6.05.010 of the Seal Beach Municipal Code, or included on the Prohibited Buildings List. (ii) An Owner shall not be granted a permit for more than one (1) STR within the City of Seal Beach.
(iii) No more than one STR permit shall be issued per property except in multi- family single lot subdivisions (i.e. condominiums or townhomes) the number of STR Permits allowed shall be as follows:
Number of units per property Number of STR
Permits
Up to 15 1
16 or more 4
(iv) The dwelling unit or property used as an STR shall not be the subject of any active or pending code enforcement actions or violations pursuant to the Seal Beach Municipal Code. A code enforcement notice of violation, if issued to an STR must be addressed within fifteen (15) days, or the STR Permit shall be revoked. (v) If the dwelling unit or property used as an STR is subject to the rules of a homeowners' or condominium association, any Short-Term Rental activity shall comply with those rules and this Chapter shall not be inferred to grant any permission that invalidates or supersedes any applicable requirements of those homeowners' or condominium associations.
(vi) The Owner shall provide proof that the STR is not prohibited by a Homeowners' Association Conditions Covenants and Restrictions or any other community standards/guidelines, applicable to the proposed STR. A letter from the Homeowners’ Association would satisfy this requirement. (vii) The Owner shall sign an indemnification and hold harmless agreement in a form approved by the City Attorney, agreeing to indemnify, save, protect, hold harmless, and defend the City of Seal Beach, its officers, employees and agents from any liability in any way arising out of the use of the STR including, without limitation, from the STR Guests.
(viii) The Owner shall maintain in effect a policy or policies of liability insurance for the property and the STR that meet or exceed the City’s standard insurance requirements for STRs, as published on the City’s website. The Owner shall provide a copy of the applicable certificates of insurance, naming the City, its officers agents and employees, as additional named insured with the STR permit application and each renewal application, and at other times within three (3) business of days following request by a City representative.
(ix) The STR shall be a legally permitted dwelling unit. Accessory Dwelling Units, as defined in Section 11.4.05.115(B) of the Seal Beach Municipal Code shall not be used as an STR unless the unit was legally established prior to January 1, 2020.
(x) A Junior Accessory Dwelling Unit as defined in Section
11.4.05.115(B) shall not be advertised or used as an STR.
D. STR Regulations.
1. All marketing and advertising of an STR, including any listing on a Hosting Platform, shall clearly list the City-issued STR Permit number.
2. STRs are prohibited in any part of the property not approved, permitted, and constructed for residential use including, but not limited to, vehicle(s) parked on the property, storage sheds, trailer(s), garage(s), boat(s) or similar watercraft, tree house(s), or any temporary structure(s), including, but not limited to, tent(s).
3. Each STR shall have a notice posted within the unit in a location clearly marked and accessible to the Guest (e.g., posted on the refrigerator, included within a binder with additional information on the unit, etc.), containing the following information:
(a) The maximum number of occupants permitted in the unit; (b) Location of parking spaces;
(c) Name and contact information for the Owner and/or Local Contact Person; (d) Trash and recycling pickup information;
(e) Emergency contact information for police, fire, or emergency medical services;
(f) Evacuation plan for the unit showing emergency exit routes, exits, and fire extinguisher locations; and
(g) Tsunami evacuation routes, if the STR is located in a tsunami zone.
4. No sign shall be posted on the exterior of the STR to advertise the availability of the unit.
5. It is unlawful for any STR Owner, occupant, renter, lessee, person present upon, or person having charge or possession of the STR premises, to make or continue to cause to be made or continued any loud, unnecessary, or unusual noise which disturbs the peace and quiet of any neighborhood, or which causes discomfort or annoyance to any reasonable person of normal sensitivities residing in the area, or which violates any provision of Chapter 7.15 ("Noise") of the Seal Beach Municipal Code.
6. The minimum age of the STR Tenant shall be 25 years old.
7. The City will post STR contact information on the City website for the public to access.
8. An STR may not be operated as any other commercial home-based business.
9. The Owner shall, upon reasonable request from the City, permit the City’s Building Official or their designee to inspect the STR for compliance with this Chapter and the Permit.
E. STR Owner Requirements.
1. The Owner shall provide information on the maximum allowed number of occupants, parking capacity and location of parking spaces, noise regulations and quiet hours, and trash and recycling disposal requirements in writing to prospective Guests, prior to their occupancy.
2. The Owner shall provide and maintain working fire extinguishers, smoke detectors, and carbon monoxide detectors, in compliance with applicable health, building, fire, and safety codes; and information related to emergency exit routes on the property, local contact, and emergency contact information.
3. Transient Occupancy Taxes shall be collected on all STRs pursuant to Seal Beach Municipal Code Chapter 4.35 and paid to the City as required by that Chapter. If a Hosting Platform does not collect payment for the rental, Hosts or Operators are solely responsible for the collection of all applicable TOT and remittance of the collected tax to the City in accordance with Chapter 4.35 of this Code (Uniform Transient Occupancy Tax).
4. The Owner and the Guest shall be responsible and liable for any activity which may create a nuisance or other tortious or criminal violations at an STR.
5. The Owner shall authorize any Hosting Platform on which his or her STR(s) is listed to provide to the City the operator listing and other information to demonstrate compliance with all provisions of this Chapter.
F. Hosting Platform Responsibilities.
1. Hosting platforms shall not process or complete any Booking Transaction for any STR, unless the STR has a valid current STR Permit issued by the City. Hosting platforms are required to list the STR Permit number and expiration date.
2. Within forty-five (45) days of the effective date of this Ordinance, Hosting Platforms with listings located in the City shall provide to the City contact information of the Hosting Platform.
3. A Hosting Platform with listings located in the City shall provide to the City on a monthly basis, in a format specified by the City, the STR Permit number of each listing, the name of the person responsible for each listing, the address of each such listing, and, for each Booking Transaction that occurs within the reporting period, the number of days booked, and the total price paid for each rental.
4. Hosting Platforms shall remove any listings for STRs, including those on the City's Prohibited Buildings List, from the platform upon notification by the City.
5. Hosting Platforms shall be responsible for collecting all applicable TOT and remitting the same to the City. The Owner shall remain responsible for collection and remittance of the TOT in the event that a Hosting Platform fails to fulfill its responsibilities under this Section to collect and/or remit to the City or the Hosting Platform and the Owner enter into an agreement regarding the fulfillment of this subsection.
6. All Hosting Platforms operating in the City must comply with all Federal, State, or Local (including the Huntington Beach Municipal Code) laws.
G. Enforcement.
1. Violations of this Section shall be enforced as provided in Chapter 1.15 of this Code.
2. Each separate calendar day in which a violation exists may be considered a separate violation. However, a thirty (30) day-warning period from the effective date of this Ordinance shall be provided prior to issuing fines for advertising an STR without a valid STR Permit number.
3. If the City issues three (3) citations for separate violations of this Ordinance against an STR within any twelve (12) month period and those violations are confirmed or enforced in an administrative or criminal court proceeding, the STR Permit shall be revoked, or suspended, or additional conditions may be imposed by the Director by providing written notice to the STR Owner setting forth the basis of the intended action and giving the STR Owner an opportunity, within fourteen (14) calendar days, to appeal the revocation, suspension, or amendment of the Permit in writing to the City Manager or their designee. If such an appeal is timely filed, the City Manager or designee shall hold a hearing and may determine to grant the appeal, revoke the STR Permit, suspend the STR Permit, or impose additional conditions upon the STR Permit and thereafter give written notice of the decision to the STR Owner. If an STR Permit is revoked, the STR may not be re-registered with the City, and the property may not be used as an STR, for a period of twelve (12) months from the date of revocation. The action of the City Manager or designee on such an appeal shall be final and not subject to further administrative appeal.
4. The City hereby finds and declares that repeated violations of this Chapter constitute a public nuisance which may be enjoined under all applicable laws including Code of Civil Procedure Section 731.
5. An STR Owner convicted of violating any provision of this Chapter in a criminal case or found to be in violation of this Chapter in a civil or administrative proceeding brought by the City may be ordered to reimburse the City its full investigative and enforcement costs and pay all unpaid TOT if applicable, in addition to any other remedy at law or equity.
6. The remedies provided in this Section are cumulative and not exclusive, and nothing in this Section shall preclude the use or application of any other remedies, penalties, or procedures established by law.
7. The Director, or their designee, shall have the authority to establish administrative rules and regulations consistent with the provisions of this Chapter for interpreting, clarifying, carrying out, furthering, and enforcing the requirements and the provisions of this Chapter.
8. If any provision of this Section conflicts with any provision of Title 11 (Zoning) as to STRs, the terms of this Section shall control.” H. Program Review
1. The City Council shall review and evaluate this Ordinance within eighteen (18) months of adoption, and annually thereafter. The review shall, at a minimum, include an analysis of demand for STR Permits based on applications received, complaints and calls for service associated with the operation of new STRs, and summary of new revenues associated with STRs.
Section 2. Environmental Review.
The adoption of this Ordinance is not a “project” under CEQA because it can be seen with certainty that the new regulation of short-term rentals in fully built-out residential areas will lead to no direct or indirect physical change in the environment. The Zone Text Amendment consists only of minor revisions and clarifications to existing regulations and specification of procedures related thereto in certain residentially zoned property to ensure consistency and eliminate internal conflict between existing provisions. The amendment, therefore, is not subject toexempt from the requirements of CEQA and the State CEQA Guidelines. Further, it can be under Guidelines Section 15061(b)(3) and Section 15301, because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.
Section 3. Severability.
If any provision or clause of this Ordinance or the application thereof to any person or circumstances is held to be unconstitutional or to be otherwise invalid by any court of competent jurisdiction, such invalidity shall not affect other section provisions, or clauses, or applications, and to this end the provisions, sections, and clauses of this ordinance are declared to be severable.
Section 4. Effective Date.
This Ordinance shall take effect thirty (30) days following its adoption by the City Council.
Section 5. Certification.
The City Clerk shall certify to the adoption of this Ordinance, and the City Clerk shall cause this Ordinance or a summary thereof to be published as required by law. The City Manager is directed to widely publicize the adoption of this Ordinance.
PASSED AND ADOPTED by the City Council of the City of Seal Beach on this 9th day of January, 2023, by the following vote:
AYES:
NOES:
_____________________
Joe Kalmick, Mayor
ATTEST:
____________________________
Gloria D. Harper, CMC, City Clerk
APPROVED AS TO FORM
____________________________
Craig A. Steele, City Attorney
ORDINANCE 1701
AN ORDINANCE OF THE CITY OF SEAL BEACH AMENDING THE SEAL BEACH MUNICIPAL CODE AMENDING SECTION 11.4.05.135 (SHORTTERM RENTAL OF RESIDENTIALLY ZONED PROPERTY) TO PERMIT
AND REGULATE SHORT-TERM RENTALS IN RESIDENTIAL ZONES IN
THE CITY AND FINDING THE ORDINANCE TO BE EXEMPT FROM
REVIEW UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
THE CITY COUNCIL OF THE CITY OF SEAL BEACH DOES ORDAIN AS FOLLOWS:
Section 1. Section 11.4.05.135 of the Seal Beach Municipal Code is hereby amended in its entirety to read as follows:
“11.4.05.135 Short-Term Rental of Residentially Zoned Property.
A. Purpose. The purpose of this Chapter is to establish regulations, standards, and a permitting process governing the renting or leasing of privately owned visitor-serving residential dwelling units on a short-term basis in order to maintain the long-term rental housing stock in the City; comply with the Coastal Act; ensure the collection and payment of Transient Occupancy Taxes ("TOT"); safeguard the residents of the City of Seal Beach by ensuring that Short-Term Rental activities do not threaten the character of residential neighborhoods; and ensure that such Short-Term Rental activities do not become a nuisance, or threaten the public health, safety, or welfare of neighboring properties.
B. Definitions.
The following definitions shall apply to this Section:
"Booking Transaction" means any reservation and/or payment service provided by a person or entity who facilitates a Short-Term Rental transaction between a prospective Guest and a Short-Term Rental Owner.
“Coastal Zone” shall have the same meaning as California Public Resources Code (PRC) Section 30103(a), as may be amended from time to time. "City" means City of Seal Beach.
"Director" means the Director of Community Development or their designee. "Guest" means any person or persons renting a Short-Term Rental as a transient occupant.
"Local Contact Person" means the Owner or person designated by the Owner to respond to and take remedial action regarding Short-Term Rental issues or complaints. "Owner" or “STR Owner” means a property owner who is contracting with Guests for Short-Term Rental of any structure or portion of a structure for dwelling, lodging or sleeping purposes, either directly or indirectly through a Hosting Platform such as VBRO or AirBnB. “Owner” may be a person, group or entity. "Platform Agreement" means a duly-executed agreement between a Hosting Platform and the City, which, among other things, provides that the Hosting Platform will collect from Short-Term Rental Tenants and pay the Transient Occupancy Tax to the City on behalf of STR Owners, and will book only those STRs that have a valid ShortTerm Rental Permit. "Primary Residence" means a person's permanent residence or usual place of return for housing as documented by at least two (2) of the following current documents:
driver's license; voter registration; tax documents showing the residential unit as the person's residence; or a utility bill.
"Prohibited Buildings List" means a list maintained by the City identifying the address(es) of all buildings and/or properties whose owner(s), including any applicable homeowners' association or board of directors, have notified the City, pursuant to City procedures, that Short-Term Rentals are not permitted to operate anywhere in such building or property including, without limitation, deed restricted affordable housing units.
"Short-Term Rental” ("STR") means a single residential dwelling unit, or portion thereof, that is offered or provided to paying Guests by an STR Owner for twenty-nine (29) or fewer consecutive nights. The term "Short-Term Rental" shall not include hotels, motels, inns, or bed and breakfast inns.
"Short-Term Rental Advertisement" means any method of soliciting Guests to use a dwelling unit for Short-Term Rental purposes.
"Short-Term Rental Permit" or "Permit" means a Permit, with a Permit number, issued by the City to allow Short-Term Rentals.
"Short-Term Rental Tenant" (“STR Tenant”) means a person who has entered into an agreement to compensate an Owner for the use and occupancy of a Short-Term Rental, and who shall be responsible for compliance with the applicable terms of this Chapter and the STR Permit.
"Transient Occupancy Tax" ("TOT") means local Transient Occupancy Tax as set forth in Chapter 4.35 of the Seal Beach Municipal Code or any successor ordinance.
C. Permit Required.
1. No person or entity shall advertise, rent to a Guest, or otherwise operate a Short-Term Rental (“STR”) in the City unless a Permit has been issued by the City pursuant to this Chapter. The Owner of an STR shall apply to obtain a Permit from the City and must remain in compliance with all requirements of this Chapter. The Director will provide an application form for an STR Permit which shall include all information determined by the Director to be necessary to evaluate the eligibility of the Owner and subject property, consistent with this Chapter.
2. STR must be located within the Coastal Zone.
3. The total number of STR Permits shall not exceed twenty-five (25).
4. STR Permits shall be issued on a lottery basis to eligible applicants.
5. The STR Permit required by this Chapter shall not apply to any “vacation rental” in operation pursuant to a valid Conditional Use Permit (“CUP”) issued by the City under Ordinance No. 1619-U prior to October 1, 2022, as long as such CUP remains valid and in effect. The STR shall comply with the conditions of its CUP and the operational requirements of this Chapter. If a CUP is terminated or revoked, the Owner shall obtain an STR permit prior to re-establishing an STR on the same property.
6. The City Council shall establish a fee for an STR Permit by resolution provided, however, the fee shall be no greater than necessary to defer the cost incurred by the City in administering the provisions of this Chapter.
7. An STR Permit is valid for one (1) year from the date of issuance. The STR Permit is personal and may not be transferred or assigned and does not run with the land. An STR Permit may be renewed annually by the Director if the STR Owner: (1) pays the renewal fee; (2) provides information concerning any changes to the previous application for, or renewal of, the STR Permit; (3) submits records to demonstrate compliance with this Chapter as required by the Director; and (4) the STR is otherwise in compliance with the requirements of this Chapter.
8. The STR Owner shall identify, to the satisfaction of the City, a Local Contact Person, who shall be available twenty-four (24) hours per day, seven (7) days a week for: (1) responding within one (1) hour to complaints regarding the condition, operation, or conduct of the STR or its occupants; and (2) taking any remedial action necessary to resolve such complaints.
9. STR Permits issued pursuant to this Chapter are subject to the following standard STR permit conditions, in addition to any other property-specific condition the Director deems necessary in order to maintain neighborhood compatibility:
(a) The Owner shall, by written agreement with the STR Tenant, limit overnight occupancy of the STR to a specific number of occupants. The maximum number of Guests who may occupy the STR at one time is two persons per bedroom, plus two additional Guests (including children). Lofts that meet California Building Code egress requirements are considered a bedroom for the purposes of the occupancy calculation. In no event may the maximum occupancy exceed twelve (12) persons in any STR.
(b) Large-scale events (i.e., exceeding maximum allowed occupancy) such as parties, weddings, fundraisers, and conferences, are prohibited. (c) The Owner shall insure that the occupants and/or Guests of the STR do not create unreasonable noise or disturbances, engage in disorderly conduct, or violate provisions any Federal, State, or Local law pertaining to noise, disposal of waste, disorderly conduct, the consumption of alcohol, or the use of illegal drugs. (d) The Owner shall, upon notification that occupants and/or Guests of his or her STR have created unreasonable noise or disturbances, engaged in disorderly conduct or committed violations of any Law, including those pertaining to noise, disposal of waste, disorderly conduct, the consumption of alcohol or the use of illegal drugs, promptly prevent a recurrence of such conduct by those occupants or Guests. (e) The Owner of the STR unit shall post a copy of the STR Permit and the STR Permit conditions in a conspicuous place within the STR. (f) Eligibility requirements. The Owner must satisfy the following requirements at the time of submitting an STR Permit application:
(i) The dwelling unit shall not be a deed-restricted affordable housing unit, in a group residence as defined by Section 11.6.05.010 of the Seal Beach Municipal Code, or included on the Prohibited Buildings List. (ii) An Owner shall not be granted a permit for more than one (1) STR within the City of Seal Beach.
(iii) No more than one STR permit shall be issued per property except in multi- family single lot subdivisions (i.e. condominiums or townhomes) the number of STR Permits allowed shall be as follows:
Number of units per property Number of STR
Permits
Up to 15 1
16 or more 4
(iv) The dwelling unit or property used as an STR shall not be the subject of any active or pending code enforcement actions or violations pursuant to the Seal Beach Municipal Code. A code enforcement notice of violation, if issued to an STR must be addressed within fifteen (15) days, or the STR Permit shall be revoked. (v) If the dwelling unit or property used as an STR is subject to the rules of a homeowners' or condominium association, any Short-Term Rental activity shall comply with those rules and this Chapter shall not be inferred to grant any permission that invalidates or supersedes any applicable requirements of those homeowners' or condominium associations.
(vi) The Owner shall provide proof that the STR is not prohibited by a Homeowners' Association Conditions Covenants and Restrictions or any other community standards/guidelines, applicable to the proposed STR. A letter from the Homeowners’ Association would satisfy this requirement. (vii) The Owner shall sign an indemnification and hold harmless agreement in a form approved by the City Attorney, agreeing to indemnify, save, protect, hold harmless, and defend the City of Seal Beach, its officers, employees and agents from any liability in any way arising out of the use of the STR including, without limitation, from the STR Guests.
(viii) The Owner shall maintain in effect a policy or policies of liability insurance for the property and the STR that meet or exceed the City’s standard insurance requirements for STRs, as published on the City’s website. The Owner shall provide a copy of the applicable certificates of insurance, naming the City, its officers agents and employees, as additional named insured with the STR permit application and each renewal application, and at other times within three (3) business of days following request by a City representative.
(ix) The STR shall be a legally permitted dwelling unit. Accessory Dwelling Units, as defined in Section 11.4.05.115(B) of the Seal Beach Municipal Code shall not be used as an STR unless the unit was legally established prior to January 1, 2020.
(x) A Junior Accessory Dwelling Unit as defined in Section
11.4.05.115(B) shall not be advertised or used as an STR.
D. STR Regulations.
1. All marketing and advertising of an STR, including any listing on a Hosting Platform, shall clearly list the City-issued STR Permit number.
2. STRs are prohibited in any part of the property not approved, permitted, and constructed for residential use including, but not limited to, vehicle(s) parked on the property, storage sheds, trailer(s), garage(s), boat(s) or similar watercraft, tree house(s), or any temporary structure(s), including, but not limited to, tent(s).
3. Each STR shall have a notice posted within the unit in a location clearly marked and accessible to the Guest (e.g., posted on the refrigerator, included within a binder with additional information on the unit, etc.), containing the following information:
(a) The maximum number of occupants permitted in the unit; (b) Location of parking spaces;
(c) Name and contact information for the Owner and/or Local Contact Person; (d) Trash and recycling pickup information;
(e) Emergency contact information for police, fire, or emergency medical services;
(f) Evacuation plan for the unit showing emergency exit routes, exits, and fire extinguisher locations; and
(g) Tsunami evacuation routes, if the STR is located in a tsunami zone.
4. No sign shall be posted on the exterior of the STR to advertise the availability of the unit.
5. It is unlawful for any STR Owner, occupant, renter, lessee, person present upon, or person having charge or possession of the STR premises, to make or continue to cause to be made or continued any loud, unnecessary, or unusual noise which disturbs the peace and quiet of any neighborhood, or which causes discomfort or annoyance to any reasonable person of normal sensitivities residing in the area, or which violates any provision of Chapter 7.15 ("Noise") of the Seal Beach Municipal Code.
6. The minimum age of the STR Tenant shall be 25 years old.
7. The City will post STR contact information on the City website for the public to access.
8. An STR may not be operated as any other commercial home-based business.
9. The Owner shall, upon reasonable request from the City, permit the City’s Building Official or their designee to inspect the STR for compliance with this Chapter and the Permit.
E. STR Owner Requirements.
1. The Owner shall provide information on the maximum allowed number of occupants, parking capacity and location of parking spaces, noise regulations and quiet hours, and trash and recycling disposal requirements in writing to prospective Guests, prior to their occupancy.
2. The Owner shall provide and maintain working fire extinguishers, smoke detectors, and carbon monoxide detectors, in compliance with applicable health, building, fire, and safety codes; and information related to emergency exit routes on the property, local contact, and emergency contact information.
3. Transient Occupancy Taxes shall be collected on all STRs pursuant to Seal Beach Municipal Code Chapter 4.35 and paid to the City as required by that Chapter. If a Hosting Platform does not collect payment for the rental, Hosts or Operators are solely responsible for the collection of all applicable TOT and remittance of the collected tax to the City in accordance with Chapter 4.35 of this Code (Uniform Transient Occupancy Tax).
4. The Owner and the Guest shall be responsible and liable for any activity which may create a nuisance or other tortious or criminal violations at an STR.
5. The Owner shall authorize any Hosting Platform on which his or her STR(s) is listed to provide to the City the operator listing and other information to demonstrate compliance with all provisions of this Chapter.
F. Hosting Platform Responsibilities.
1. Hosting platforms shall not process or complete any Booking Transaction for any STR, unless the STR has a valid current STR Permit issued by the City. Hosting platforms are required to list the STR Permit number and expiration date.
2. Within forty-five (45) days of the effective date of this Ordinance, Hosting Platforms with listings located in the City shall provide to the City contact information of the Hosting Platform.
3. A Hosting Platform with listings located in the City shall provide to the City on a monthly basis, in a format specified by the City, the STR Permit number of each listing, the name of the person responsible for each listing, the address of each such listing, and, for each Booking Transaction that occurs within the reporting period, the number of days booked, and the total price paid for each rental.
4. Hosting Platforms shall remove any listings for STRs, including those on the City's Prohibited Buildings List, from the platform upon notification by the City.
5. Hosting Platforms shall be responsible for collecting all applicable TOT and remitting the same to the City. The Owner shall remain responsible for collection and remittance of the TOT in the event that a Hosting Platform fails to fulfill its responsibilities under this Section to collect and/or remit to the City or the Hosting Platform and the Owner enter into an agreement regarding the fulfillment of this subsection.
6. All Hosting Platforms operating in the City must comply with all Federal, State, or Local (including the Huntington Beach Municipal Code) laws.
G. Enforcement.
1. Violations of this Section shall be enforced as provided in Chapter 1.15 of this Code.
2. Each separate calendar day in which a violation exists may be considered a separate violation. However, a thirty (30) day-warning period from the effective date of this Ordinance shall be provided prior to issuing fines for advertising an STR without a valid STR Permit number.
3. If the City issues three (3) citations for separate violations of this Ordinance against an STR within any twelve (12) month period and those violations are confirmed or enforced in an administrative or criminal court proceeding, the STR Permit shall be revoked, or suspended, or additional conditions may be imposed by the Director by providing written notice to the STR Owner setting forth the basis of the intended action and giving the STR Owner an opportunity, within fourteen (14) calendar days, to appeal the revocation, suspension, or amendment of the Permit in writing to the City Manager or their designee. If such an appeal is timely filed, the City Manager or designee shall hold a hearing and may determine to grant the appeal, revoke the STR Permit, suspend the STR Permit, or impose additional conditions upon the STR Permit and thereafter give written notice of the decision to the STR Owner. If an STR Permit is revoked, the STR may not be re-registered with the City, and the property may not be used as an STR, for a period of twelve (12) months from the date of revocation. The action of the City Manager or designee on such an appeal shall be final and not subject to further administrative appeal.
4. The City hereby finds and declares that repeated violations of this Chapter constitute a public nuisance which may be enjoined under all applicable laws including Code of Civil Procedure Section 731.
5. An STR Owner convicted of violating any provision of this Chapter in a criminal case or found to be in violation of this Chapter in a civil or administrative proceeding brought by the City may be ordered to reimburse the City its full investigative and enforcement costs and pay all unpaid TOT if applicable, in addition to any other remedy at law or equity.
6. The remedies provided in this Section are cumulative and not exclusive, and nothing in this Section shall preclude the use or application of any other remedies, penalties, or procedures established by law.
7. The Director, or their designee, shall have the authority to establish administrative rules and regulations consistent with the provisions of this Chapter for interpreting, clarifying, carrying out, furthering, and enforcing the requirements and the provisions of this Chapter.
8. If any provision of this Section conflicts with any provision of Title 11 (Zoning) as to STRs, the terms of this Section shall control.” H. Program Review
1. The City Council shall review and evaluate this Ordinance within eighteen (18) months of adoption, and annually thereafter. The review shall, at a minimum, include an analysis of demand for STR Permits based on applications received, complaints and calls for service associated with the operation of new STRs, and summary of new revenues associated with STRs.
Section 2. Environmental Review.
The adoption of this Ordinance is not a “project” under CEQA because it can be seen with certainty that the new regulation of short-term rentals in fully built-out residential areas will lead to no direct or indirect physical change in the environment. The Zone Text Amendment consists only of minor revisions and clarifications to existing regulations and specification of procedures related thereto in certain residentially zoned property to ensure consistency and eliminate internal conflict between existing provisions. The amendment, therefore, is exempt from the requirements of CEQA and the State CEQA Guidelines under Guidelines Section 15061(b)(3) and Section 15301, because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.
Section 3. Severability.
If any provision or clause of this Ordinance or the application thereof to any person or circumstances is held to be unconstitutional or to be otherwise invalid by any court of competent jurisdiction, such invalidity shall not affect other section provisions, or clauses, or applications, and to this end the provisions, sections, and clauses of this ordinance are declared to be severable.
Section 4. Effective Date.
This Ordinance shall take effect thirty (30) days following its adoption by the City Council.
Section 5. Certification.
The City Clerk shall certify to the adoption of this Ordinance, and the City Clerk shall cause this Ordinance or a summary thereof to be published as required by law. The City Manager is directed to widely publicize the adoption of this Ordinance.
PASSED AND ADOPTED by the City Council of the City of Seal Beach on this 9th day of January, 2023, by the following vote:
AYES:
NOES:
_____________________
Joe Kalmick, Mayor
ATTEST:
____________________________
Gloria D. Harper, CMC, City Clerk
APPROVED AS TO FORM
____________________________
Craig A. Steele, City Attorney
ORDINANCE XXXX
AN ORDINANCE OF THE CITY OF SEAL BEACH AMENDING THE SEAL BEACH MUNICIPAL CODE AMENDING SECTION 11.4.05.135 (SHORTTERM RENTAL OF RESIDENTIALLY ZONED PROPERTY) TO PERMIT
AND REGULATE SHORT-TERM RENTALS IN RESIDENTIAL ZONES IN
THE CITY AND FINDING THE ORDINANCE TO BE EXEMPT FROM
REVIEW UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
THE CITY COUNCIL OF THE CITY OF SEAL BEACH DOES ORDAIN AS FOLLOWS:
Section 1. Section 11.4.05.135 of the Seal Beach Municipal Code is hereby amended in its entirety to read as follows:
“11.4.05.135 Short-Term Rental of Residentially Zoned Property.
A. Purpose. The purpose of this Chapter is to establish regulations, standards, and a permitting process governing the renting or leasing of privately owned visitor-serving residential dwelling units on a short-term basis in order to maintain the long-term rental housing stock in the City; comply with the Coastal Act; ensure the collection and payment of Transient Occupancy Taxes ("TOT"); safeguard the residents of the City of Seal Beach by ensuring that Short-Term Rental activities do not threaten the character of residential neighborhoods; and ensure that such Short-Term Rental activities do not become a nuisance, or threaten the public health, safety, or welfare of neighboring properties.
B. Definitions.
The following definitions shall apply to this Section:
"Booking Transaction" means any reservation and/or payment service provided by a person or entity who facilitates a Short-Term Rental transaction between a prospective Guest and a Short-Term Rental Owner.
“Coastal Zone” shall have the same meaning as California Public Resources Code (PRC) Section 30103(a), as may be amended from time to time. "City" means City of Seal Beach.
"Director" means the Director of Community Development or their designee. "Guest" means any person or persons renting a Short-Term Rental as a transient occupant.
"Local Contact Person" means the Owner or person designated by the Owner to respond to and take remedial action regarding Short-Term Rental issues or complaints. "Owner" or “STR Owner” means a property owner who is contracting with Guests for Short-Term Rental of any structure or portion of a structure for dwelling, lodging or sleeping purposes, either directly or indirectly through a Hosting Platform such as VBRO or AirBnB. “Owner” may be a person, group or entity. "Platform Agreement" means a duly-executed agreement between a Hosting Platform and the City, which, among other things, provides that the Hosting Platform will collect from Short-Term Rental Tenants and pay the Transient Occupancy Tax to the City on behalf of STR Owners, and will book only those STRs that have a valid ShortTerm Rental Permit. "Primary Residence" means a person's permanent residence or usual place of return for housing as documented by at least two (2) of the following current documents:
driver's license; voter registration; tax documents showing the residential unit as the person's residence; or a utility bill.
"Prohibited Buildings List" means a list maintained by the City identifying the address(es) of all buildings and/or properties whose owner(s), including any applicable homeowners' association or board of directors, have notified the City, pursuant to City procedures, that Short-Term Rentals are not permitted to operate anywhere in such building or property including, without limitation, deed restricted affordable housing units.
"Short-Term Rental” ("STR") means a single residential dwelling unit, or portion thereof, that is offered or provided to paying Guests by an STR Owner for twenty-nine (29) or fewer consecutive nights. The term "Short-Term Rental" shall not include hotels, motels, inns, or bed and breakfast inns.
"Short-Term Rental Advertisement" means any method of soliciting Guests to use a dwelling unit for Short-Term Rental purposes.
"Short-Term Rental Permit" or "Permit" means a Permit, with a Permit number, issued by the City to allow Short-Term Rentals.
"Short-Term Rental Tenant" (“STR Tenant”) means a person who has entered into an agreement to compensate an Owner for the use and occupancy of a Short-Term Rental, and who shall be responsible for compliance with the applicable terms of this Chapter and the STR Permit.
"Transient Occupancy Tax" ("TOT") means local Transient Occupancy Tax as set forth in Chapter 4.35 of the Seal Beach Municipal Code or any successor ordinance.
C. Permit Required.
1. No person or entity shall advertise, rent to a Guest, or otherwise operate a Short-Term Rental (“STR”) in the City unless a Permit has been issued by the City pursuant to this Chapter. The Owner of an STR shall apply to obtain a Permit from the City and must remain in compliance with all requirements of this Chapter. The Director will provide an application form for an STR Permit which shall include all information determined by the Director to be necessary to evaluate the eligibility of the Owner and subject property, consistent with this Chapter.
2. STR must be located within the Coastal Zone.
3. The total number of STR Permits shall not exceed one percent of the total housing units within the Coastal Zone of Seal Beachtwenty-five (25).
4. STR Permits shall be issued on a lottery basis to eligible applicants.
5. The STR Permit required by this Chapter shall not apply to any “vacation rental” in operation pursuant to a valid Conditional Use Permit (“CUP”) issued by the City under Ordinance No. 1619-U prior to October 1, 2022, as long as such CUP remains valid and in effect. The STR shall comply with the conditions of its CUP and the operational requirements of this Chapter. If a CUP is terminated or revoked, the Owner shall obtain an STR permit prior to re-establishing an STR on the same property.
6. The City Council shall establish a fee for an STR Permit by resolution provided, however, the fee shall be no greater than necessary to defer the cost incurred by the City in administering the provisions of this Chapter.
7. An STR Permit is valid for one (1) year from the date of issuance. The STR Permit is personal and may not be transferred or assigned and does not run with the land. An STR Permit may be renewed annually by the Director if the STR Owner: (1) pays the renewal fee; (2) provides information concerning any changes to the previous application for, or renewal of, the STR Permit; (3) submits records to demonstrate compliance with this Chapter as required by the Director; and (4) the STR is otherwise in compliance with the requirements of this Chapter.
8. The STR Owner shall identify, to the satisfaction of the City, a Local Contact Person, who shall be available twenty-four (24) hours per day, seven (7) days a week for: (1) responding within one (1) hour to complaints regarding the condition, operation, or conduct of the STR or its occupants; and (2) taking any remedial action necessary to resolve such complaints.
9. STR Permits issued pursuant to this Chapter are subject to the following standard STR permit conditions, in addition to any other property-specific condition the Director deems necessary in order to maintain neighborhood compatibility:
(a) The Owner shall, by written agreement with the STR Tenant, limit overnight occupancy of the STR to a specific number of occupants. The maximum number of Guests who may occupy the STR at one time is two persons per bedroom, plus two additional Guests (including children). Lofts that meet California Building Code egress requirements are considered a bedroom for the purposes of the occupancy calculation. In no event may the maximum occupancy exceed twelve (12) persons in any STR.
(b) Large-scale events (i.e., exceeding maximum allowed occupancy) such as parties, weddings, fundraisers, and conferences, are prohibited. (c) The Owner shall insure that the occupants and/or Guests of the STR do not create unreasonable noise or disturbances, engage in disorderly conduct, or violate provisions any Federal, State, or Local law pertaining to noise, disposal of waste, disorderly conduct, the consumption of alcohol, or the use of illegal drugs. (d) The Owner shall, upon notification that occupants and/or Guests of his or her STR have created unreasonable noise or disturbances, engaged in disorderly conduct or committed violations of any Law, including those pertaining to noise, disposal of waste, disorderly conduct, the consumption of alcohol or the use of illegal drugs, promptly prevent a recurrence of such conduct by those occupants or Guests. (e) The Owner of the STR unit shall post a copy of the STR Permit and the STR Permit conditions in a conspicuous place within the STR. (f) Eligibility requirements. The Owner must satisfy the following requirements at the time of submitting an STR Permit application:
(i) The dwelling unit shall not be a deed-restricted affordable housing unit, in a group residence as defined by Section 11.6.05.010 of the Seal Beach Municipal Code, or included on the Prohibited Buildings List. (ii) An Owner shall not be granted a permit for more than one (1) STR within the City of Seal Beach.
(iii) No more than one STR permit shall be issued per property except in multi- family single lot subdivisions (i.e. condominiums or townhomes) the number of STR Permits allowed shall be as follows:
Number of units per property Number of STR
Permits
Up to 15 1
16 or more 4
(iv) The dwelling unit or property used as an STR shall not be the subject of any active or pending code enforcement actions or violations pursuant to the Seal Beach Municipal Code. A code enforcement notice of violation, if issued to an STR must be addressed within fifteen (15) days, or the STR Permit shall be revoked. (v) If the dwelling unit or property used as an STR is subject to the rules of a homeowners' or condominium association, any Short-Term Rental activity shall comply with those rules and this Chapter shall not be inferred to grant any permission that invalidates or supersedes any applicable requirements of those homeowners' or condominium associations.
(vi) The Owner shall provide proof that the STR is not prohibited by a Homeowners' Association Conditions Covenants and Restrictions or any other community standards/guidelines, applicable to the proposed STR. A letter from the Homeowners’ Association would satisfy this requirement. (vii) The Owner shall sign an indemnification and hold harmless agreement in a form approved by the City Attorney, agreeing to indemnify, save, protect, hold harmless, and defend the City of Seal Beach, its officers, employees and agents from any liability in any way arising out of the use of the STR including, without limitation, from the STR Guests.
(viii) The Owner shall maintain in effect a policy or policies of liability insurance for the property and the STR that meet or exceed the City’s standard insurance requirements for STRs, as published on the City’s website. The Owner shall provide a copy of the applicable certificates of insurance, naming the City, its officers agents and employees, as additional named insured with the STR permit application and each renewal application, and at other times within three (3) business of days following request by a City representative.
(ix) The STR shall be a legally permitted dwelling unit. Accessory Dwelling Units, as defined in Section 11.4.05.115(B) of the Seal Beach Municipal Code shall not be used as an STR unless the unit was legally established prior to January 1, 2020.
(x) A Junior Accessory Dwelling Unit as defined in Section
11.4.05.115(B) shall not be advertised or used as an STR.
D. STR Regulations.
1. All marketing and advertising of an STR, including any listing on a Hosting Platform, shall clearly list the City-issued STR Permit number.
2. STRs are prohibited in any part of the property not approved, permitted, and constructed for residential use including, but not limited to, vehicle(s) parked on the property, storage sheds, trailer(s), garage(s), boat(s) or similar watercraft, tree house(s), or any temporary structure(s), including, but not limited to, tent(s).
3. Each STR shall have a notice posted within the unit in a location clearly marked and accessible to the Guest (e.g., posted on the refrigerator, included within a binder with additional information on the unit, etc.), containing the following information:
(a) The maximum number of occupants permitted in the unit; (b) Location of parking spaces;
(c) Name and contact information for the Owner and/or Local Contact Person; (d) Trash and recycling pickup information;
(e) Emergency contact information for police, fire, or emergency medical services;
(f) Evacuation plan for the unit showing emergency exit routes, exits, and fire extinguisher locations; and
(g) Tsunami evacuation routes, if the STR is located in a tsunami zone.
4. No sign shall be posted on the exterior of the STR to advertise the availability of the unit.
5. It is unlawful for any STR Owner, occupant, renter, lessee, person present upon, or person having charge or possession of the STR premises, to make or continue to cause to be made or continued any loud, unnecessary, or unusual noise which disturbs the peace and quiet of any neighborhood, or which causes discomfort or annoyance to any reasonable person of normal sensitivities residing in the area, or which violates any provision of Chapter 7.15 ("Noise") of the Seal Beach Municipal Code.
6. The minimum age of the STR Tenant shall be 25 years old.
7. The City will post STR contact information on the City website for the public to access.
8. An STR may not be operated as any other commercial home-based business.
9. The Owner shall, upon reasonable request from the City, permit the City’s Building Official or their designee to inspect the STR for compliance with this Chapter and the Permit.
E. STR Owner Requirements.
1. The Owner shall provide information on the maximum allowed number of occupants, parking capacity and location of parking spaces, noise regulations and quiet hours, and trash and recycling disposal requirements in writing to prospective Guests, prior to their occupancy.
2. The Owner shall provide and maintain working fire extinguishers, smoke detectors, and carbon monoxide detectors, in compliance with applicable health, building, fire, and safety codes; and information related to emergency exit routes on the property, local contact, and emergency contact information.
3. Transient Occupancy Taxes shall be collected on all STRs pursuant to Seal Beach Municipal Code Chapter 4.35 and paid to the City as required by that Chapter. If a Hosting Platform does not collect payment for the rental, Hosts or Operators are solely responsible for the collection of all applicable TOT and remittance of the collected tax to the City in accordance with Chapter 4.35 of this Code (Uniform Transient Occupancy Tax).
4. The Owner and the Guest shall be responsible and liable for any activity which may create a nuisance or other tortious or criminal violations at an STR.
5. The Owner shall authorize any Hosting Platform on which his or her STR(s) is listed to provide to the City the operator listing and other information to demonstrate compliance with all provisions of this Chapter.
F. Hosting Platform Responsibilities.
1. Hosting platforms shall not process or complete any Booking Transaction for any STR, unless the STR has a valid current STR Permit issued by the City. Hosting platforms are required to list the STR Permit number and expiration date.
2. Within forty-five (45) days of the effective date of this Ordinance, Hosting Platforms with listings located in the City shall provide to the City contact information of the Hosting Platform.
3. A Hosting Platform with listings located in the City shall provide to the City on a monthly basis, in a format specified by the City, the STR Permit number of each listing, the name of the person responsible for each listing, the address of each such listing, and, for each Booking Transaction that occurs within the reporting period, the number of days booked, and the total price paid for each rental.
4. Hosting Platforms shall remove any listings for STRs, including those on the City's Prohibited Buildings List, from the platform upon notification by the City.
5. Hosting Platforms shall be responsible for collecting all applicable TOT and remitting the same to the City. The Owner shall remain responsible for collection and remittance of the TOT in the event that a Hosting Platform fails to fulfill its responsibilities under this Section to collect and/or remit to the City or the Hosting Platform and the Owner enter into an agreement regarding the fulfillment of this subsection.
6. All Hosting Platforms operating in the City must comply with all Federal, State, or Local (including the Huntington Beach Municipal Code) laws.
G. Enforcement.
1. Violations of this Section shall be enforced as provided in Chapter 1.15 of this Code.
2. Each separate calendar day in which a violation exists may be considered a separate violation. However, a thirty (30) day-warning period from the effective date of this Ordinance shall be provided prior to issuing fines for advertising an STR without a valid STR Permit number.
3. If the City issues three (3) citations for separate violations of this Ordinance against an STR within any twelve (12) month period and those violations are confirmed or enforced in an administrative or criminal court proceeding, the STR Permit shall be revoked, or suspended, or additional conditions may be imposed by the Director by providing written notice to the STR Owner setting forth the basis of the intended action and giving the STR Owner an opportunity, within fourteen (14) calendar days, to appeal the revocation, suspension, or amendment of the Permit in writing to the City Manager or their designee. If such an appeal is timely filed, the City Manager or designee shall hold a hearing and may determine to grant the appeal, revoke the STR Permit, suspend the STR Permit, or impose additional conditions upon the STR Permit and thereafter give written notice of the decision to the STR Owner. If an STR Permit is revoked, the STR may not be re-registered with the City, and the property may not be used as an STR, for a period of twelve (12) months from the date of revocation. The action of the City Manager or designee on such an appeal shall be final and not subject to further administrative appeal.
4. The City hereby finds and declares that repeated violations of this Chapter constitute a public nuisance which may be enjoined under all applicable laws including Code of Civil Procedure Section 731.
5. An STR Owner convicted of violating any provision of this Chapter in a criminal case or found to be in violation of this Chapter in a civil or administrative proceeding brought by the City may be ordered to reimburse the City its full investigative and enforcement costs and pay all unpaid TOT if applicable, in addition to any other remedy at law or equity.
6. The remedies provided in this Section are cumulative and not exclusive, and nothing in this Section shall preclude the use or application of any other remedies, penalties, or procedures established by law.
7. The Director, or their designee, shall have the authority to establish administrative rules and regulations consistent with the provisions of this Chapter for interpreting, clarifying, carrying out, furthering, and enforcing the requirements and the provisions of this Chapter.
8. If any provision of this Section conflicts with any provision of Title 11 (Zoning) as to STRs, the terms of this Section shall control.” H. Program Review
1. The City Council shall review and evaluate this Ordinance within eighteen (18) months of adoption, and annually thereafter. The review shall, at a minimum, include an analysis of demand for STR Permits based on applications received, complaints and calls for service associated with the operation of new STRs, and summary of new revenues associated with STRs.
Section 2. Environmental Review.
The adoption of this Ordinance is not a “project” under CEQA because it can be seen with certainty that the new regulation of short-term rentals in fully built-out residential areas will lead to no direct or indirect physical change in the environment. Alternately, the City finds that adoption of this Ordinance is categorically exempt from CEQA Review as a minor change in land use limitations under CEQA Guidelines Section 15305.The Zone Text Amendment consists only of minor revisions and clarifications to existing regulations and specification of procedures related thereto in certain residentially zoned property to ensure consistency and eliminate internal conflict between existing provisions. The amendment, therefore, is exempt from the requirements of CEQA and the State CEQA Guidelines under Guidelines Section 15061(b)(3) and Section 15301, because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.
Section 3. Severability.
If any provision or clause of this Ordinance or the application thereof to any person or circumstances is held to be unconstitutional or to be otherwise invalid by any court of competent jurisdiction, such invalidity shall not affect other section provisions, or clauses, or applications, and to this end the provisions, sections, and clauses of this ordinance are declared to be severable.
Section 4. Effective Date.
This Ordinance shall take effect thirty (30) days following its adoption by the City Council.
Section 5. Certification.
The City Clerk shall certify to the adoption of this Ordinance, and the City Clerk shall cause this Ordinance or a summary thereof to be published as required by law. The City Manager is directed to widely publicize the adoption of this Ordinance.
PASSED AND ADOPTED by the City Council of the City of Seal Beach on this ___ day of ___, 2022, by the following vote:
AYES:
NOES:
_____________________
Joe Kalmick, Mayor
ATTEST:
____________________________
Gloria D. Harper, CMC, City Clerk
APPROVED AS TO FORM
____________________________
Craig A. Steele, City Attorney
Short Term
Rentals
City Council Meeting
January 9, 2023
Short Term Rentals in Seal Beach
• Zoning Code Section 11.4.05.135 prohibits short term rentals • 14 units have CUP to operate
• Some unpermitted rentals exist
• Become Code Enforcement cases
Current Status
• 2 Recent Appellate Court cases found prohibition of STRs to be violation of the Coastal Act
• Kracke v. City of Santa Barbara (2021)
• Keen v. City of Manhattan Beach (2022)
• As a result, the City Council took action to suspend enforcement of Section 11.4.05.135 on September 26, 2022
Tonight’s Item
• Revision to the Zoning Code
• Proposes a program for limited number of STRs
• Includes recommendation from the Planning Commission
• Subsequently, Coastal Development Permit will be sought Proposed STR Program - Rules
• Limited to the Coastal Zone
• Limited to 25 units in Coastal Zone
• Only 1 rental per owner
• Units may not be income-restricted, junior ADUs, or ADUs built after January 1, 2020
Proposed STR Program – Rules Continued
• 24-hour local contact person
• No large events
• Guests limited to 2 persons/bedroom plus 2
• Posting of rules in unit
• No exterior identification of unit as an STR
Proposed STR Program – Rules Continued
• Interested parties would apply, be selected by lottery on set date • Permit must be renewed annually
• Owners must have business license and pay transient occupancy taxes • Owner shall indemnify City and maintain adequate insurance • Homeowner associations or similar may continue to prohibit STRs Benefits
• Local business benefits from tourism
• Increase in tax revenue
• Additional tourist infrastructure in compliance with Coastal Act Unknowns
• Coastal Commission
• Impacts on neighborhood
• Enforcement volume and cost
• Alignment with Housing Element and State housing laws Questions?
Andrea K. Leisy, Esq.
232 15th Street
Seal Beach, CA 90740
(916) 402-9439
[email protected]
January 9, 2023
Via Email & Hand Delivery
Honorable Mayor Kalmick
Honorable City Councilmembers
City of Seal Beach
211 Eighth Street
Seal Beach, CA 90740
Re: Seal Beach City Council Agenda Item #L – Short Term Rentals Dear Honorable Mayor Kalmick & Honorable City Councilmembers:
I am writing to urge the Council to postpone voting on the above referenced Short Term Rentals (STRs) zone text amendment and Ordinance Number 1701 for the reasons detailed below: namely, (i) because the cap of 25 STRs appears arbitrary and inconsistent with the goals of the Coastal Act; (ii) the STR ordinance does not distinguish between hosted and non-hosted STRs; (iii) the City is bypassing a potentially significant source of additional City revenue - via transient occupancy tax (“TOT”) which may be collected and used for other City projects through a well-managed STR Program [that could be contracted out]; and (iv) the item must be re-agendized under the Ralph M. Brown Act (“Brown Act”) should the Council seek to make an exemption determination under the California Environmental Quality Act (“CEQA”).
If the Council votes to continue the item, or send it back to the Planning Commission for additional recommendation(s), I would welcome the ability to work with staff to provide additional proposed revisions to the ordinance.
1. The Planning Commission’s recommended Citywide Cap of 25 STR units appears arbitrary and inconsistent with the Coastal Act.
Unfortunately, I was out of the country when this item came before the Planning Commission on November 7, 2022. I have, however, subsequently read the staff report prepared for that meeting as well as the staff report prepared for the Council meeting this evening. I do not see any evidence or rational supporting the proposed 25 unit STR citywide cap. Rather, the number appears to have been arbitrarily picked by the Planning Commission without consideration of how many existing STRs are within the City currently, how many are needed to ensure consistency with the goals of the Coastal Act (Pub. Resources Code, § 30000 et seq.), and how many additional units should therefore be permitted. As proposed, the limitation of 25 STRs Honorable Mayor Kalmick
Honorable City Councilmembers
January 9, 2023
could be perceived as a de-facto ban on STRs, including by the Coastal Commission which ultimately must approve the limitation in the coastal zone.
As noted briefly by the staff report, in order to impose a ban on STRs in the coastal zone, local jurisdictions must obtain a coastal development permit (DCP) or an amendment to a local coastal plan (LCP). (Kracke v. City of Santa Barbara (2021) 63 Cal.App.5th 1089; see also Keen v. City of Manhattan Beach (2022) 77 Cal.App.5th 142 [amendments to local coastal program and implementing program, via zoning ordinance(s), restricting STRs in coastal zone required Coastal Commission approval].)
As the Council is undoubtedly already aware, the Coastal Act includes goals such as:
maximizing public access to the beach (Pub. Resources Code, § 30001.5, subd. (c)), improving the availability of lower cost accommodations along the coast, particularly for low-income and middle-income families (Id., § 31411, subd.(e)), and protecting lower cost visitor and recreational facilities (Id., §§ 30213, 31411, subd. (d) [“A lack of affordable accommodations remains a barrier to coastal access”]; see also Greenfield v. Mandalay Shores Community Assn. (2108) 21 Cal.App.5th 896, 899-901 [regulation of STRs in a coastal zone “must be decided by the City and the Coastal Commission”].) Lacking any evidence in support, the 25 STR cap appears to conflict with the above policies of the Coastal Act and should be revisited prior to a vote on the proposed ordinance.
2. Rather than impose an arbitrary Citywide STR Cap of 25 units, the Council should consider a 1-2% limit on non-hosted STRs based on the number of existing units in the City. Hosted STRs should not be limited.
My research of the STR ordinances adopted by other coastal cities allow STRs based on a percentage of existing units as follows: San Diego (1%), Laguna Beach (1.5%), Dana Point (2%). Thus, staff’s original recommendation, to the Planning Commission, to allow 1% of existing units to be licensed as STRs appears more in line with other city ordinances than the now recommended 25 STR cap. Based on my understanding of the City having approximately 14,267 units, that would be a cap of roughly 142 allowed (non-hosted) STR units.
In November 2022, for example, the Coastal Commission approved Dana Point’s STR Program. I recommend that the Council direct staff to review this ordinance, as well as the City of Long Beach ordinance, if they have not already done so. (See https://documents.coastal.ca.gov/reports/2022/11/W13b/W13b-11-2022-exhibits.pdf. [“Dana Point Ordinance”]; https://www.guestable.com/blog/short-term-rental-regulations-in-the-city-oflong-beach/ [Long Beach].) Unlike the draft ordinance before you tonight, the STR Program adopted by Dana Point (as well as other jurisdictions such as Long Beach), distinguish between hosted and non-hosted STRs and do not limit the number of hosted STRs – although the number of days per year a hosted STR may be rented is caped (e.g. at 60 or 90 days per year). The number of un-hosted STRs in Dana Point is limited to 115 (2% of the housing stock).
Honorable Mayor Kalmick
Honorable City Councilmembers
January 9, 2023
Specifically, (1) Hosted STRs involve circumstances where the host (either the property owner or a long-term authorized tenant of the property) stays on-site and lives in a habitable dwelling unit or portion during the guest’s stay; and (2) Un-hosted STRs: alternatively, do not require a host to be present or stay on-site during the stay of their guests. The main rational behind not limiting hosted STRs is that if a property owner also lives onsite, the STR is able to be actively managed and monitored by that owner who, for obvious reasons, has a vested interest in ensuring that guests do not cause a nuisance so that the owner may maintain good neighbor relations. This scenario also allows people who may be on fixed income, to use their property to subsidize their income for things like retirement or health reasons, while the City collects additional TOT revenue. This is a benefit, with little downside, in my view, that I urge the Council to seriously consider.
Finally, the proposed annual lottery system would be, in my view, a potentially confusing logistical and time consuming nightmare. As with other provisions of the STR Program, the City should consider revising this approach after considering the STR programs of other cities such as Dana Point and Long Beach which issue permits subject to annual renewal provisions (or an alternative date determined by the Community Development Director), expiration for inactive permitted STRs, and which provide for a STR waitlist. (See Dana Point Ordinance, supra, Exhibit 3 at pp. 9-10.)
3. A thoughtful STR Program could generate well over $1 million in additional annual direct TOT revenue, which could be used to fund other City projects. The TOT tax in the proposed ordinance, moreover, should be increased from 12% to 13%.
In 2015, the City of Santa Barbara collected $1.2 million in STR TOT taxes from 349 STRs, including 114 in the coastal zone. (Kracke, supra, 63 Cal.App.5th at p. 1093.) That was eight years ago and, while it involved more STR units than Seal Beach is likely willing (or required) to permit as a smaller city, it still represents a potentially significant amount of additional TOT revenue the City could realize from a STR ordinance that does not limit the number to 25 – especially at current higher rental rates. Daily fines for STRs that do not comply with the STR Program, moreover, would also be a direct source of additional City revenue. This estimate also does not include the indirect sources of revenue to local businesses and restaurants from the increased number of domestic and foreign visitors.
The cities of Long Beach and Dana Point, for example, have adopted TOT programs that are also used as part of the STR enforcement mechanism. Long Beach now charges 13% TOT revenue as increased from 12% - the Council should consider amending the draft ordinance to charge the same 13%. (See https://www.longbeach.gov/finance/business-info/businesslicenses/transient-occupancy-tax/.) Lastly, and recognizing the City’s existing staffing constraints, it is not uncommon for local jurisdictions to contract out their STR enforcement and revenue collection to third-party firms with experience in this area. I encourage the City to research this option as well, and would be happy to offer my own time to do so should the Council so direct.
Honorable Mayor Kalmick
Honorable City Councilmembers
January 9, 2023
4. Should the Council wish to adopt the Ordinance tonight, it may not render a CEQA exemption determination without violating the Brown Act.
In the recently published case of G.I. Industries v. City of Thousand Oaks (2022) 84 Cal.App.5th 814, the Court of Appeal held that the Brown Act requires a brief description of any proposed CEQA exemption determination before that determination may be acted on by a local legislative body at a public hearing. (See also, Gov. Code, § 54954.2 (a)(1).) The agenda posted pursuant to the Brown Act for tonight’s hearing does not mention the proposed CEQA exemption determinations identified at page 3 of the Staff Report. The Council therefore may not act on the recommended exemptions as a separate item of business without violating the Brown Act.
Lastly, as to the substance of the recommended CEQA exemption determinations, it appears the recommendations are inconsistent with one another. First, there is reference to the ordinance not being a “project” (as defined by CEQA) and, therefore, not being subject to CEQA because, allegedly, the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment. (See Staff Report, p. 3, citing CEQA Guidelines, § 15060, subd. (C)(2).) Yet, there is no evidence or rational offered to support this conclusion. And, if the ordinance truly is not a “project” subject to CEQA in the first instance, there is no reason to adopt an exemption to CEQA.
The Staff Report, however, also recommends the Council adopt the ordinance pursuant to the Class 1 [Existing Facilities] Categorical Exemption as set forth in CEQA Guidelines section 15301. (Staff Report, p.3.) Assuming the ordinance is a “project” subject to CEQA (which it appears to be), the Class 1 exemption is facially inapplicable. That exemption is for “Existing Facilities” - including the “operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment or topographical features, involving negligible or no expansion of existing or former use[.]” (See CEQA Guidelines, § 15301.) Because the action before the Council is the adoption of an ordinance, having nothing to do with an existing structure or facility, the Class 1 exemption is not applicable and, if adopted, would violate CEQA.
* * *
Thank you in advance for your consideration of these comments. Please contact me if you have any immediate questions and I look forward to appearing before you this evening.
Very truly yours,
Andrea (Andee) Leisy
cc: City Clerk [email protected]