Agenda packet — Seal Beach City Council, December 11, 2023 (part 2 of 2)

permission.
holes, driveways, manholes,
marquees, hoist away openings,
sidewalk vaults, street banners or
decorations and similar exposures;
or
2) The construction, erection, or
removal of elevators; or
3) The ownership, maintenance or use
of any elevators covered by this
insurance.

This insurance does not apply to:
1) " Bodily injury" or " property damage"
or " personal or advertising injury'
arising out of operations performed
for the state or municipality; or
2) " Bodily injury" or " property damage"
included within the " products -
completed operations hazard".

However, such state or political
subdivision' s status as additional
insured under this policy ends when the
permit ends.

Vendors — but only with respect to
bodily injury' or " property damage"
arising out of " your products" which are
distributed or sold in the regular course
of the vendor' s business, subject to the
following additional exclusions:
1) The insurance afforded the vendor
does not apply to:
a) " Bodily injury' or " property
damage" for which the vendor is
obligated to pay damages by
reason of the assumption of
liability in a contract or
agreement. This exclusion does
not apply to liability for damages
that the vendor would have in
the absence of the contract or
agreement;
b) Any express warranty unauthorized by you;
c) Any physical or chemical
change in the product made
intentionally by the vendor;
d) Repackaging, except when
unpacked solely for the purpose
of inspection, demonstration,
testing, or the substitution of
parts under instructions from the
CG 72 12 12 16
manufacturer, and then
repackaged in the original
container;
e) Any failure to make such
inspections, adjustments, tests
or servicing as the vendor has
agreed to make or normally
undertakes to make in the usual
course of business, in
connection with the distribution
or sale of the products;
f) Demonstration, installation,
servicing, or repair operations,
except such operations
performed at the vendor's
premises in connection with the
sale of the product;
g) Products which, after
distribution or sale by you, have
been labeled or relabeled or
used as a container, part or
ingredient of any other thing or
substance by or for the vendor;
or
h) " Bodily injury" or " property
damage" arising out of the sole
negligence of the vendor for its
own acts or omissions or those
of its employees or anyone else
acting on its behalf. However,
this exclusion does not apply to:
i) The exceptions contained in
Subparagraphs d. or f.; or
ii) Such inspections, adjustments, tests or servicing as the vendor has agreed to
make or normally
undertakes to make in the
usual course of business, in
connection with the
distribution or sale of the
products.
2)This insurance does not apply to any
insured person or organization, from
whom you have acquired such
products, or any ingredient, part or
container, entering into, accompanying or containing such products.

CG 72 12 12 16 Includes copyrighted material of ISO Properties, Inc., with its Page 3 of 5 permission.

CG 72 12 12 16
With respect to the insurance afforded to
such additional insureds a. — d. described
above the following is added to the Section
III — Limits Of Insurance:

If coverage provided to the additional
insured is required by a contract or
agreement, the most we will pay on behalf of
the additional insured is the amount of
insurance:

1. Required by the contract or agreement;
or

2. Available under the applicable Limits of
Insurance shown in the Declarations;
whichever is less.

This endorsement shall not increase the
applicable Limits of Insurance shown in the
Declarations.

However, this insurance afforded to such
additional insureds a. — I. described above:

1. Only applies to the extent permitted by
law; and

2. Will not be broader than that which you
are required by the contract or
agreement to provide for such additional
insured.

SECTION 111— LIMITS OF INSURANCE

1. The following is added to Paragraph 2:

The General Aggregate Limit applies separately
to each of your "locations" owned by or rented to
you or temporarily occupied by you with the
permission of the owner.

2. Paragraph 6. is replaced with:

6. Subject to 5. above, the Damage To
Premises Rented To You Limit is the most
we will pay under Coverage A for damages
because of " property damage" to any one
premises, while rented to you, or in the case
of damage by fire, lightning, explosion,
smoke, or sprinkler leakage, while rented to
or temporarily occupied by you with
permission of the owner. The limit is
increased to $ 1, 000, 000.

3. Paragraph 7. is replaced with:

7. Subject to 5. above, the higher of:
a. $ 10, 000; or
b. The amount shown in , the Declarations
for Medical Expense Limit is the most
we will pay under Coverage C for all
medical expenses because of " bodily
injury" sustained by one person.

This coverage does not apply if Coverage C
Medical Payments is excluded either by
the provisions of any coverage forms
attached to the policy or by endorsement.

SECTION IV — COMMERCIAL GENERAL

LIABILITY CONDITIONS

1. Condition 2. Duties In The Event Of
Occurrence, Offense, Claim Or Suit is
amended to include:
e. Knowledge of an " occurrence", offense,
claim or " suit" by an agent or employee of
any insured shall not in itself constitute
knowledge of the insured unless you, a
partner, if you are a partnership; or an
executive officer or insurance manager, if
you are a corporation receives such notice
of an ' occurrence", offense, claim or " suit"
from the agent or employee.

2. Paragraph b. Excess Insurance ( 1) ( b) ( ii) of
condition 4. Other Insurance is replaced with:
if) That is Fire insurance for premises rented to
you or temporarily occupied by you with
permission of the owner;

3. Condition 6. Representations is amended to
include:
d. Your failure to disclose all hazards or prior
occurrences" or offenses existing as of the
inception date of the policy shall not
prejudice the coverage afforded by this
policy provided such failure to disclose all
hazards or prior " occurrences" or offenses is
not intentional. This provision does not
affect our right to collect additional premium
or exercise our right of cancellation or nonrenewal.

4. Condition 8. Transfer Of Rights Of Recovery
Against Others To Us is amended to include:

If required by a written contract executed prior to
loss, we waive any right of subrogation we may
have against the contracting person or
organization because of payments we make for
injury or damage arising out of your ongoing
operations or " your work" done under a contract
with that person or organization and included in
the "products -completed operations hazard".

5. The following condition is added:

10. Liberalization
If we revise this coverage form to provide
more coverage without additional premium
charge, your policy will automatically provide
the additional coverage as of the day the
revision is effective in your state.

Page 4 of 5 ends

Includes copyrighted material of ISO Properties, Inc., with its CG 72 12 12 16 permission.

CG 72 12 12 16
SECTION V — DEFINITIONS or death resulting from any of these at any

1. Definition 3. " Bodily Injury" is replaced with:
time.

3. " Bodily injury" means bodily injury, sickness

2. The following definition is added:
or disease sustained by a person, including " Location" means premises involving the same mental anguish, mental injury, shock, fright or connecting lots, or premises whose connection is interrupted only by a street,
roadway, waterway, or right- of-way of a railroad.

All terms and conditions apply unless modified by this endorsement.

CG 72 12 12 16 Includes copyrighted material of ISO Properties, Inc., with its Page 5 of 5 permission.

COMMERCIAL AUTO
AC 70 05 03 16
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

BUSINESS AUTO PROTECTION - GOLD
This endorsement modifies insurance provided under the following:

BUSINESS AUTO COVERAGE FORM

SUMMARY OF COVERAGES
A. Effect of This Endorsement
B. Newly Acquired or Formed Entities
C. Employees as Insureds — Nonowned Autos
D. Additional Insured by Contract, Permit or Agreement
E. Supplementary Payments — Bail Bonds
F. Supplementary Payments — Loss of Earnings
G. Personal Effects and Property of Others Extension
H. Prejudgment Interest Coverage
I. Fellow Employee — Officer, Managers and Supervisors
J. Hired Auto Physical Damage
K. Temporary Substitute Autos — Physical Damage Coverage L. Expanded Towing Coverage
M. Auto Loan or Lease Coverage
N. Original Equipment Manufacturer Parts — Leased Private Passenger Types O. Deductible Amendments
P. Rental Reimbursement Coverage
Q. Expanded Transportation Expense
R. Extra Expense — Stolen Autos
S. Physical Damage Limit of Insurance
T. New Vehicle Replacement Cost
U. Physical Damage Coverage Extension
V. Transfer of Rights of Recovery Against Others To Us
W. Section IV — Business Auto Conditions — Notice of and Knowledge of Occurrence X. Hired Car Coverage Territory
Y. Emergency Lock Out
Z. Cancellation Condition
AC 70 05 0316 Includes copyrighted material of Insurance Services Office, Inc. Page 1 of 7 with its permission

COMMERCIAL AUTO
AC 70 05 0316
A. EFFECT OF THIS ENDORSEMENT
Coverage provided under this policy is modified
by the provisions of this endorsement. If there
is any conflict between the provisions of this
endorsement and the provision( s) of any state -
specific endorsement also attached to this policy, then the provision( s) of the state -specific endorsement shall apply instead of the provisions of this endorsement that are in conflict, but only to the extent of the conflict, and only to
the extent necessary to bring such provisions
into conformance with the state requirement( s)
contained in the provision( s) of the state -specific
endorsement.

B. NEWLY ACQUIRED OR FORMED ENTITIES
The Named Insured shown in the Declarations is
amended to include any organization you newly
acquire or form, other than a partnership, joint
venture, or limited liability company, and over
which you maintain ownership or majority ( more
than 50%) interest; if there is no other similar insurance available to that organization. Coverage under this provision is afforded until the 180th
day after you acquire or form the organization or
the end of the policy period, whichever is later.

C. EMPLOYEES AS INSUREDS — NONOWNED
AUTOS
The following is added to paragraph A. 1. Who Is
An Insured of SECTION II — COVERED AUTOS
LIABILITY COVERAGE:
d. Any " employee" of yours is an " insured"
while using a covered " auto" you don' t own,
hire or borrow in your business or your personal affairs.

D. ADDITIONAL INSURED BY CONTRACT,

PERMIT OR AGREEMENT
The following is added to A. I. Who Is An Insured of SECTION II — COVERED AUTOS LIABILITY COVERAGE:

Any person or organization that you are required to name as an additional insured in a written contract or agreement that is executed
or signed by you prior to a " bodily injury' or
property damage" occurrence is an " Insured"
for Covered Auto Liability coverage. However, with respect to covered " autos", such person or organization is an insured only to
the extent that person or organization qualifies
as an " insured" under A. 1. Who is an Insured of
SECTION II — COVERED AUTOS LIABILITY
COVERAGE:

If specifically required by the written contract or
agreement referenced in the paragraph above,
any coverage provided by this endorsement to
an additional insured shall be primary and
any other valid and collectible insurance available to the additional insured shall be noncontributory with this insurance. If the written contract does not require this coverage to be
primary and the additional insured' s coverage to
be non- contributory, then this insurance will be
excess over any other valid and collectible insurance available to the additional insured.

E. SUPPLEMENTARY PAYMENTS — BAIL
BONDS
Supplementary Payments of SECTION II —
COVERED AUTOS LIABILITY COVERAGE is
revised as follows:
2) Up to $ 2, 500 for cost of bail bonds ( including
bonds for related traffic law violations)
required because of an " accident" we cover.

We do not have to furnish these bonds.

F. SUPPLEMENTARY PAYMENTS — LOSS OF

EARNINGS
Supplementary Payments of the SECTION II —
COVERED AUTOS LIABILITY COVERAGE is
revised as follows:
4) All reasonable expenses incurred by the " insured" at our request, including actual loss of earnings up to $ 500 a day because of
time off from work.

G. PERSONAL EFFECTS AND PROPERTY OF

OTHERS EXTENSION

1. The. Care, Custody or Control Exclusion of
SECTION II — COVERED AUTOS
LIABILITY COVERAGE, does not apply to
property damage" to property, other than
your property, up to an amount not exceeding $ 250 in any one " accident". Coverage is excess over any other valid and collectible
insurance.

2. The following paragraph is added to A.4.

Coverage Extensions of SECTION III —
PHYSICAL DAMAGE COVERAGE:
c. We will pay up to $ 500 for your property
that is lost or damaged as a result of a
covered " loss", without applying a deductible. Coverage is excess over any other valid and collectible insurance.

Page 2 of 7 ends

with its permission

COMMERCIAL AUTO
AC 70 05 0316
H. PREJUDGMENT INTEREST COVERAGE substitute for a covered " auto" you own that The following paragraph is added to SECTION II is out of service because of its:

COVERED AUTOS LIABILITY COVERAGE, a. Breakdown;

2. Coverage Extensions, a. Supplementary b. Repair;
Payments:
c. Servicing;
7) Prejudgment interest awarded against the
insured"
d. " Loss'; or
on that part of the judgment we
pay. If we make an offer to pay the appli- e. Destruction cable limit of insurance, we will not pay The coverage that applies is the same as any prejudgment interest based on that the coverage provided for the vehicle being period of time after the offer. replaced.

1. FELLOW EMPLOYEE — OFFICERS,
MANAGERS, AND SUPERVISORS L. EXPANDED TOWING COVERAGE
The Fellow Employee Exclusion in SECTION II 1. We will pay up to:

COVERED AUTOS LIABILITY COVERAGE is
a. $ 100 for a covered " auto" you own of replaced as follows; the private passenger type, or
A. " Bodily injury" to any fellow " employee" of
insured" b . $ 500 for a covered " auto" you own that the arising out of and in the course employee' s"
is not of the private passenger type, of the fellow employment or while performing duties related to the con- for towing and labor costs incurred each duct of your business. This exclusion does time the covered " auto" is disabled. Howevnot apply to an " insured" who occupies a er, the labor must be performed at the place
position as an officer, manager, or supervi- of disablement. sor. 2. This coverage applies only for an " auto"
J. HIRED AUTO PHYSICAL DAMAGE covered on this policy for Comprehensive or If covered " auto" designation symbols 1 or 8 apSpecified Causes of Loss Coverage and ply to Liability Coverage and if at least one " auCollision Coverages. to" you own is covered by this policy for Com- 3. Payment applies in addition to the otherwise prehensive, Specified Causes of Loss, or Colli- applicable amount of each coverage you sion coverages, then the Physical Damage have on a covered " auto". coverages provided are extended to " autos" you M. AUTO LOAN OR LEASE COVERAGE lease, hire, rent or borrow without a driver; and 1. In the event of a total " loss" to a covered provisions in the Business Auto Coverage Form
auto", we will pay any unpaid amount due
applicable to Hired Auto Physical Damage apply on the loan or lease, including up to a max - up to a limit of $ 100, 000. The deductible will be imum of $ 500 for early termination fees or equal to the largest deductible applicable to any penalties, for your covered " auto" less:
owned auto" for that coverage. Any Comprehensive deductible does not apply to fire or a. The amount paid under SECTION III —
lightning. PHYSICAL DAMAGE COVERAGE of
K. TEMPORARY SUBSTITUTE AUTOS —
this policy; and
PHYSICAL DAMAGE COVERAGE b. Any:

The following is added to paragraph C. Certain 1) Overdue lease/loan payments at the Trailers, Mobile Equipment And Temporary time of the " loss'; Substitute Autos of SECTION I - COVERED 2) Financial penalties imposed under a AUTOS: lease for excessive use, abnormal
If Physical Damage Coverage is provided by wear and tear or high mileage; this Coverage Form, the following types of 3) Security deposits not refunded by a vehicles are also covered " autos" for Physi- lessor;
cal Damage Coverage: 4) Costs of extended warranties, Credit Any " auto" you do not own while used with Life insurance, Health, Accident, or the permission of its owner as a temporary Disability insurance purchased with the lease; and
AC 70 05 03 16 Includes copyrighted material of Insurance Services Office, Inc., Page 3 of 7 with its permission

COMMERCIAL AUTO
AC 70 05 0316
5) Carry- over balances from previous
leases.

2. This coverage only applies to a " loss" which
is also covered under this policy for Comprehensive, Specified Causes of Loss, or Collision coverage.

3. Coverage does not apply to any unpaid
amount due on a loan for which the covered
auto" is not the sole collateral.

N. ORIGINAL EQUIPMENT MANUFACTURER
PARTS — LEASED PRIVATE PASSENGER
TYPES
Under Paragraph C. Limit of Insurance of
SECTION III — PHYSICAL DAMAGE
COVERAGE, Section 4 is added as follows:

4. We will use new original equipment vehicle
manufacturer parts for any private passenger type covered " auto" where required by the lease agreement which has a term of at
least six months. If a new original equipment vehicle manufacturer part is not in production or distribution we may use a like, kind and quality replacement part.

O. DEDUCTIBLE AMENDMENTS
The following are added to the Deductible provision of SECTION III — PHYSICAL DAMAGE COVERAGE:

If another policy or coverage form that is not an
automobile policy or coverage form issued by
this company applies to the same " accident", the
following applies:

1. If the deductible under this coverage is the
smaller ( or smallest) deductible, it will be
waived:

2. If the deductible under this coverage is not
the smaller ( or smallest) deductible, it will be
reduced by the amount of the smaller ( or
smallest) deductible.

If a Comprehensive or Specified Causes of Loss
Coverage " loss" from one " accident" involves
two or more covered " autos", only the highest
deductible applicable to those coverages will be
applied to the " accident," if the cause of the loss
is covered for those vehicles. This provision only
applies if you carry Comprehensive or Specified
Causes of Loss Coverage for those vehicles,
and does not extend coverage to any covered
autos" for which you do not carry such
coverage.

No deductible applies to glass if the glass is repaired, in a manner acceptable to us, rather than replaced.

P. RENTAL REIMBURSEMENT COVERAGE

1. This coverage applies only to a covered " auto" for which Physical Damage Coverage is provided on this policy.

2. We will pay for rental reimbursement expenses ' incurred by you for the rental of an auto" because of "loss" to a covered " auto".

Payment applies in addition to the otherwise
applicable amount of each coverage you
have on a covered " auto." No deductibles
apply to this coverage.

3. We will pay only for those expenses incurred
during the policy period beginning 24 hours
after the " loss" and ending, regardless of the
policy's expiration, with the lesser of the
following number of days:
a. The number of days reasonably
required to repair or replace the covered
auto". If " loss" is caused by theft, this
number of days is added to the number
of days it takes to locate the covered
auto" and return it to you.
b. The number of days shown in the
Schedule.

4. Our payment is limited to the lesser of the
following amounts:
a. Necessary and actual expenses
incurred.
b. $ 75 for any one day or for a maximum
of 30 days.

5. This coverage does not apply while there
are spare or reserve " autos" available to you
for your operations.

6. If " loss" results from the total theft of a covered " auto" of the private passenger type, we will pay under this coverage only that
amount of your .rental reimbursement expenses which is not already provided for under SECTION III — PHYSICAL DAMAGE COVERAGE Coverage Extension.

Q. EXPANDED TRANSPORTATION EXPENSE
Paragraph AA. a. of SECTION III — PHYSICAL
DAMAGE COVERAGE is replaced by the following:

We will pay up to $ 50 per day to a maximum of
1500 for temporary transportation expense incurred by you because of the total theft of a

Page 4 of 7 ends

with its permission.
covered " auto" of the private passenger type.

We will only pay for those covered " autos" for
which you carry Comprehensive or Specified
Causes of Loss Coverage. We will pay for temporary transportation expenses incurred during the period beginning 24 hours after the theft and
ending, regardless of the policy' s expiration,
when the covered " auto" is returned to use or we
pay for its " loss".

R. EXTRA EXPENSE — STOLEN AUTOS
The following paragraph is added to Coverage
Extensions of SECTION III — PHYSICAL
DAMAGE COVERAGE:
c. We will pay for up to $ 5, 000 for the expense
of returning a stolen covered " auto" to you.

We will pay only for those covered " autos"
for which you carry Comprehensive or Specified Causes of Loss Coverage S. PHYSICAL DAMAGE LIMIT OF INSURANCE T.

Under SECTION III — PHYSICAL DAMAGE
COVERAGE, Paragraph C., Limit of Insurance
is replaced by the following:

C. Limit Of Insurance

1. The most we will pay for " loss" in any one
accident" is the lesser of:
a. The actual cash value of the damaged
or stolen property as of the time of the
loss", or
b. The cost of repairing or replacing the
damaged or stolen property.

2. $ 1500 is the most we will pay for " loss" in
any one " accident" to all electronic equipment that reproduces, receives or transmits audio, visual or data signals which, at the
time of "loss", is:
a. Permanently installed in or upon the
covered " auto" in a housing, opening or
other location that is not normally used
by the " auto" manufacturer for the installation of such equipment. b. Removable from a permanently installed
housing unit as described in Paragraph

2. a. above or is an integral part of that
equipment; or
c. An integral part of such equipment.

3. An adjustment for depreciation and physical
condition will be made in determining actual
cash value in the event of a total " loss".

COMMERCIAL AUTO
AC 70 05 03 16
ment manufacturer or other sources including non -original equipment manufacturers and b. If a repair or replacement results in better than like kind or quality, we will not pay for the amount of the net improvement.

5. If we offer to pay the actual cash value of
the damaged or stolen property, we will
value auto advertising wraps, paint customization, and similar business related advertising modifications, in addition to the actual cash value of the property. Auto advertising
wraps, paint customization, and similar
business related advertising modifications
will be valued at the cost to replace them
with an adjustment made for depreciation
and physical condition.

NEW VEHICLE REPLACEMENT COST
The following is added to the Limit of Insurance
provision of SECTION III — PHYSICAL
DAMAGE COVERAGE:

5. The provisions of paragraphs 1. and 3. do
not apply to a covered " auto" of the private
passenger type or a vehicle with a gross
vehicle weight rating of 20, 000 pounds or
less which is a " new vehicle."
In the event of a total " loss" to your new vehicle to which this coverage applies, we will pay at your option:
a. The verifiable " new vehicle" purchase
price you paid for your damaged vehicle, not including any insurance or warranties purchased; b. If it is available, the purchase price, as
negotiated by us, of a " new vehicle" of
the same make, model, and equipment
or the most similar model available, not
including any furnishings, parts, or
equipment not installed by the manufacturer or manufacturers' dealership; or. c. The market value of your damaged vehicle, not including any furnishings, parts, or equipment not installed by the
manufacturer or manufacturer' s dealership.

We will not pay for initiation or set up costs
associated with loans or leases
As used in this endorsement, a " new

4. The cost of repairing or replacing may: vehicle" means an " auto" of which you are a. Be based on an estimate which includes the original owner that has not been previparts furnished by the original equip - AC 70 05 0316 Includes copyrighted material of Insurance Services Office, Inc., Page 5 of 7 with its permission

COMMERCIAL AUTO
AC 70 05 0316
ously titled and which you purchased less
than 365 days before the date of the " loss".

U. PHYSICAL DAMAGE COVERAGE

EXTENSIONS
Under SECTION III — PHYSICAL DAMAGE
COVERAGE, A. Coverage, Coverage Extensions, b. Loss of Use Expenses is replaced by the following:
b. Loss of Use Expenses
For Hired Auto Physical Damage, we will
pay expenses for which an " insured" becomes legally responsible to pay for loss of use of a vehicle rented or hired without a
driver, under a written rental contract or
agreement. We will pay for loss of use expenses if caused by:
1) Other than collision if the Declarations
indicate that Comprehensive Coverage
is provided for any covered " auto";
2) Specified Causes of Loss only if the
Declarations indicate that Specified
Causes of Loss Coverage is provided
for any covered " auto'; or
3) Collision only if the Declarations indicate
that Collision Coverage is provided for
any covered " auto."
However, the most we will pay for any
expenses for loss of use is $ 50 per day, to a
maximum of $ 1, 500. The insurance provided
by this provision is excess over any other
collectible insurance.

V. TRANSFER OF RIGHTS OF RECOVERY

AGAINST OTHERS TO US
The following is added to the Transfer Of Rights
Of Recovery Against Others To Us Condition:

We waive any right of recovery we may
have against any person or organization to
the extent required of you by a written contract executed prior to any " accident" because of payments we make for damages under this coverage form.

W. NOTICE OF AND KNOWLEDGE OF

Your obligation in the. Duties in the Event
of Accident, Claim, Suit or Loss Condition
relative to providing us with documents
concerning a claim or " suit" will not be
considered breached unless the breach
occurs after such claim or " suit" is known
to:
1) You, if you are an individual;
2) A partner, if you are a partnership;
3) A member, if you are a limited
liability company; or
4) An executive officer or insurance
manager, if you are a corporation.

X. HIRED CAR — COVERAGE TERRITORY
Item ( 5) of the Policy Period, Coverage Territory
General Conditions is replaced by the following:
5) Anywhere in the word if a covered " auto" is
leased, hired, rented or borrowed without a
driver for a period of 30 days or less; and
Y. EMERGENCY LOCKOUT
We will reimburse you up to $ 100 for reasonable
expense incurred for the services of a locksmith
to gain entry into your covered " auto" subject to
these provisions:

1. Your door key, electronic key or key entry
pad has been lost, stolen or locked in your
covered " auto" and you are unable to enter
such " auto" , or

2. Your keyless entry device battery dies and
you are unable to enter such " auto" as a result,
SECTION IV — BUSINESS AUTO 3. Your key, electronic key or key entry pad CONDITIONS, Paragraph A is amended as has been lost or stolen and you have follows: changed the lock to prevent an unauthorized

6. NOTICE OF AND KNOWLEDGE OF
entry; and

OCCURRENCE

Page 6 of 7 ends

with its permission.

4. Original copies of receipts for services of a
locksmith must be provided before reimbursement is payable.

Z. CANCELLATION CONDITION
Paragraph A. 2. of the COMMON POLICY
CONDITION — CANCELLATION applies
except as follows:

COMMERCIAL AUTO
AC 70 05 03 16
If we cancel for any reason other than nonpayment of premium, we will mail or deliver to the First Named Insured written notice of
cancellation at least 60 days before the effective date of cancellation. This provision does not apply in those states that require
more than 60 days prior notice of cancellation.

AC 70 05 03 16 Includes copyrighted material of Insurance Services Office, Inc., Page 7 of 7 with its permission
A ® ORE CERTIFICATE OF LIABILITY INSURANCE

DATE ( MMIDD/ YYYY)
1/ 14/ 2022
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLYAND 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
Leavitt Coastal Valley Insurance Services, Inc
License # 0598871
204 E. Enos Dr Suite B
Santa Maria CA 93454
NSE. Carmen Trejo
PHHCNE E ( 805) 925- 8607
IC No): ( 805) 928- 7210
noWDREssccarmen- trejo@leavitt. com
INSURERS AFFORDING COVERAGE NAIC #
INSURER A: Depositors Insurance Company 42587

INSURED
Alexander' s Contract Services, Inc.

Alexander' s Meter Reading Solutions
8655 Morro Rd. Ste. C
Atascadero CA 93422
INSURER B: Federal Insurance Company 20281
INSURERC: State Compensation Insurance Fund 35076
INSURER D: Lloyd' s of London 85202
INSURER E: Landmark American Ins Company 33138
INSURER F:

COVERAGES CERTIFICATE NUMBER: 22/ 23 CA 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 RESPECTTO WHICH THIS

CERTIFICATE MAYBE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECTTO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.

INSR LTR
ACCORDANCE WITH THE POLICY PROVISIONS.

ADD
INSO
SUER

POLICY NUMBER

PMIDDY P
LIMITS

X COMMERCIAL GENERAL LIABILITY EACH OCCURRENCE S
1, 000, 000

A CLAIMS -MADE X OCCUR
GE ToNTED PREM SES ( Ea occurrence) $
100, 000
MED EXP ( Any one person) S X ACP3029605060 1/ 17/ 2022 1/ 17/ 2023 5, 000

PERSONAL BADV INJURY S
1, 000, 000
GENIAGGREGATE LIMIT APPLIES PER. GENERALAGGREGATE S 2, 000, 000

POLICY PEC LOC PRODUCTS - COMPIOPAGG S
2, 000, 000
S
OTHER:

AUTOMOBILE LIABILITY
COMBINED SINGLE LIMIT S 1, 000, 000 Ea accident
BODILY INJURY ( Per person) S
A

ANYAUTO

ALL OWNED SCHEDULED
AUTOS AUTOS X ACP3029605060 1/ 17/ 2022 1/ 17/ 2023 BODILY INJURY ( Per accident) S

PROPERTY DAMAGE S
Per accident

NON -OWNED

HIRED AUTOS AUTOS
5 X UMBRELLA LIAS X OCCUR EACH OCCURRENCE S 10, 000, 000 AGGREGATE S 10, 000, 000 B
EXCESS L1AS CLAIMS -MADE
DED I I RETENTION S 7818- 67- 80 S
1/ 17/ 2022 1/ 17/ 2023

WORKERS COMPENSATION

AND EMPLOYERS' LIABILITY YIN
ANY PROPRIEfORIPARTNERIEXECUTNE

X PEROTH- STATUTE ER
E. L. EACH ACCIDENT S 1, 000, 000
C OFFICER/ MandatoryMEMBER EXCLUDED? In NH)
NIA
9122761- 22 1/ 17/ 2022 1/ 17/ 2023 E. L. DISEASE - F1IEMPLOYEE S 1, 000, 000 E. L. DISEASE - POLICY LIMIT S 1, 000, 000
If yes, describe under
DESCRIPTION OF OPERATIONS below
D TECH CYBER LIABILITY WG00005: 10AA 8/ 27/ 2021 8/ 27/ 2022 LIMIT 2, 000, 000 E PROFESSIONAL LIABILITY LERS3986 4/ 7/ 2021 4/ 7/ 2022 LIMIT 2, 000, 000 DESCRIPTION OF OPERATIONS I LOCATIONS I VEHICLES ( ACORD 101, Additional Remarks Schedule, may be attached If more spam is required) The City, its directors, officials, officers, employees, agents and volunteers shall be covered as additional insureds with primary and non- contributory with respects to General and Auto Liability per attached form. 30 - day notice of cancellation applies. All forms apply when required by written contract.

CPRTIFIrATF i4ni nER CANCELLATION
U 79t3t3- LU74 ACUKU CURPORA ium Ali rights reserve0.

ACORD 25 ( 2014/ 01) The ACORD name and logo are registered marks of ACORD INS025 ( 201401)

SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE City of Seal Beach

THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN Attn • Public Works Director
ACCORDANCE WITH THE POLICY PROVISIONS.
211 - 8th Street

AUTHORIZED REPRESENTATIVE
Seal Beach, CA 90740
Carmen ' Trejo/ CATREJ( sr^ tiT--
U 79t3t3- LU74 ACUKU CURPORA ium Ali rights reserve0.

ACORD 25 ( 2014/ 01) The ACORD name and logo are registered marks of ACORD INS025 ( 201401)

COMMERCIAL GENERAL LIABILITY
CG 20 0104 13
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

PRIMARY AND NONCONTRIBUTORY -

OTHER INSURANCE CONDITION
This endorsement modifies insurance provided under the following:

COMMERCIAL GENERAL LIABILITY COVERAGE PART

PRODUCTS/ COMPLETED OPERATIONS LIABILITY COVERAGE PART
The following is added to the Other Insurance ( 2) You have agreed in writing in a contract or Condition and supersedes any provision to the agreement that this insurance would be contrary: primary and would not seek contribution
Primary And Noncontributory Insurance from any other insurance available to the This insurance is primary to and will not seek
additional insured.
contribution from any other insurance available
to an additional insured under your policy
provided that:
1) The additional insured is a Named Insured
under such other insurance; and
All terms and conditions of this policy apply unless modified by this endorsement.

CG 20 0104 13 © Insurance Services Office, Inc., 2012 Page 1 of 1

COMMERCIAL AUTO
AC 70 05 0316
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

BUSINESS AUTO PROTECTION - GOLD
This endorsement modifies insurance provided under the following:

BUSINESS AUTO COVERAGE FORM

1. Fellow Employee — Officer, Managers and Supervisors
J. Hired Auto Physical Damage
K. Temporary Substitute Autos — Physical Damage Coverage L. Expanded Towing Coverage
M. Auto Loan or Lease Coverage
N. Original Equipment Manufacturer Parts — Leased Private Passenger Types O. Deductible Amendments
P. Rental Reimbursement Coverage
Q. Expanded Transportation Expense
R. Extra Expense — Stolen Autos
S. Physical Damage Limit of Insurance
T. New Vehicle Replacement Cost
U. Physical Damage Coverage Extension
V. Transfer of Rights of Recovery Against Others To Us
W. Section IV — Business Auto Conditions — Notice of and Knowledge of Occurrence X. Hired Car Coverage Territory
Y. Emergency Lock Out
Z. Cancellation Condition
AC 70 05 03 16 Includes copyrighted material of Insurance Services Office, Inc. Page 1 of' 7 with its permission

COMMERCIAL AUTO
AC 70 05 031,6
A. EFFECT OF THIS ENDORSEMENT
Coverage provided under this policy is modified
by the provisions of this endorsement. If there
is any conflict between the provisions of this
endorsement and the provision( s) of any state -
specific endorsement also attached to this policy, then the provision( s) of the state -specific endorsement shall apply instead of the provisions of this endorsement that are in conflict, but only to the extent of the conflict, and only to
the extent necessary to bring such provisions
into conformance with the state requirement( s)
contained in the provision( s) of the state - specific
endorsement.

B. NEWLY ACQUIRED OR FORMED ENTITIES
The Named Insured shown in the Declarations is
amended to include any organization you newly
acquire or form, other than a partnership, joint
venture, or limited liability company, and over
which you maintain ownership or majority ( more
than 50%) interest; if there is no other similar insurance available to that organization. Coverage under this provision is afforded until the 1 Both
day after you acquire or form the organization or
the end of the policy period, whichever is later.

D. ADDITIONAL INSURED BY CONTRACT,

PERMIT OR AGREEMENT
The following is added to A. I. Who Is An Insured of SECTION II — COVERED AUTOS LIABILITY COVERAGE:

Any person or organization that you are required to name as an additional insured in a written contract or agreement that is executed
or signed by you prior to a " bodily injury" or
property damage" occurrence is an " insured"
for Covered Auto Liability coverage. However, with respect to covered " autos", such person or organization is an insured only to
the extent that person or organization qualifies
as an " insured" under A. I. Who is an Insured of
SECTION II — COVERED AUTOS LIABILITY
COVERAGE:

We do not have to furnish these bonds.

F. SUPPLEMENTARY PAYMENTS — LOSS OF

G. PERSONAL EFFECTS AND PROPERTY OF

OTHERS EXTENSION

1. The. Care, Custody or Control Exclusion of
SECTION II — COVERED AUTOS
LIABILITY COVERAGE, does not apply to
property damage" to property, other than
your property, up to an amount not exceeding $ 250 in any one "accident". Coverage is excess over any other valid and collectible
insurance.

2. The following paragraph is added to A. 4.

Page 2 of 7 ends

with its permission

COMMERCIAL AUTO
AC 70 05 03 16
H. PREJUDGMENT INTEREST COVERAGE substitute for a covered " auto" you own that The following paragraph is added to SECTION 11 is out of service because of its:

COVERED AUTOS LIABILITY COVERAGE, a. Breakdown;

2. Coverage Extensions, a. Supplementary b. Repair;
Payments:
c. Servicing;
7) Prejudgment interest awarded against the
d. " Loss"; or
insured" on that part of the judgment we
pay. If we make an offer to pay the appli- e. Destruction cable limit of insurance, we will not pay The coverage that applies is the same as any prejudgment interest based on that the coverage provided for the vehicle being period of time after the offer. replaced.

1. FELLOW EMPLOYEE — OFFICERS,
MANAGERS, AND SUPERVISORS L. EXPANDED TOWING COVERAGE
The Fellow Employee Exclusion in SECTION II 1. We will pay up to:

COVERED AUTOS LIABILITY COVERAGE is
a. $ 100 for a covered " auto" you own of
replaced as follows;
the private passenger type, or
A. " Bodily injury" to any fellow " employee" of
insured"
b. $ 500 for a covered " auto" you own that
the arising out of and in the course
employee's"
is not of the private passenger type,
of the fellow employment or
while performing duties related to the con- for towing and labor costs incurred each duct of your business. This exclusion does time the covered " auto" is disabled. Howevnot apply to an " insured" who occupies a er, the labor must be performed at the place
position as an officer, manager, or supervi- of disablement. sor. 2. This coverage applies only for an " auto"
J. HIRED AUTO PHYSICAL DAMAGE covered on this policy for Comprehensive or If covered " auto" designation symbols 1 or 8 apSpecified Causes of Loss Coverage and ply to Liability Coverage and if at least one auCollision Coverages. to" you own is covered by this policy for Com- 3. Payment applies in addition to the otherwise prehensive, Specified Causes of Loss, or Colli- applicable amount of each coverage you sion coverages, then the Physical Damage have on a .covered " auto". coverages provided are extended to " autos" you M. AUTO LOAN OR LEASE COVERAGE lease, hire, rent or borrow without a driver; and 1. In the event of a total " loss" to a covered provisions in the Business Auto Coverage Form auto", we will pay any unpaid, amount due applicable to Hired Auto Physical Damage apply on the loan or lease, including up to a max - up to a limit of $ 100,000. The deductible will be imum of $ 500 for early termination fees or equal to the largest deductible applicable to any penalties, for your covered " auto" less:
owned " auto" for that coverage. Any Comprea. The amount paid under SECTION III — hensive deductible does not apply to fire or PHYSICAL DAMAGE COVERAGE of lightning. this policy; and
K. TEMPORARY SUBSTITUTE AUTOS —
b. Any: PHYSICAL DAMAGE COVERAGE
The following is added to paragraph C. Certain
1) Overdue lease/ loan payments at the
loss";
Trailers, Mobile Equipment And Temporary
time of the
Substitute Autos of SECTION 1 - COVERED 2) Financial penalties imposed under a AUTOS: lease for excessive use, abnormal
If Physical Damage Coverage is provided by
wear and tear or high mileage;
this Coverage Form, the following types of 3) Security deposits not refunded by a vehicles are also covered " autos" for Physi- lessor;
cal Damage Coverage: 4) Costs of extended warranties, Credit Any " auto" you do not own while used with Life insurance, Health, Accident, or the permission of its owner as a temporary Disability insurance purchased with x the lease; and
AC 70 05 0316 Includes copyrighted material of Insurance Services Office, Inc., Page 3 of 7 with its permission

COMMERCIAL AUTO
AC 70 05 0316
5) Carry-over balances from previous No deductible applies to glass if the glass is releases. paired, in a manner acceptable to us, rather than

2. This coverage only applies to a " loss" which replaced. is also covered under this policy for Com- P. RENTAL REIMBURSEMENT COVERAGE prehensive, Specified Causes of Loss, or 1. This coverage applies only to a covered " au - Collision coverage. to" for which Physical Damage Coverage is

3. Coverage does not apply to any unpaid provided on this policy. amount due on a loan for which the covered
auto"

2. We will pay for rental reimbursement ex - is not the sole collateral. penses incurred by you for the rental of an
N. ORIGINAL EQUIPMENT MANUFACTURER auto" because of "loss" to a covered " auto".

PARTS — LEASED PRIVATE PASSENGER Payment applies in addition to the otherwise TYPES applicable amount of each coverage you
Under Paragraph C. Limit of Insurance of have on a covered. " auto." No deductibles SECTION III — PHYSICAL DAMAGE apply to this coverage.

COVERAGE, Section 4 is added as follows: 3. We will pay only for those expenses incurred

4. We will use new original equipment vehicle during the policy period beginning 24 hours manufacturer parts for any private passen- after the "loss" and ending, regardless of the ger type covered " auto" where required by policy' s expiration, with the lesser of the the lease agreement which has a term of at following number of days:
least six months. If a new original equip- a. The number of days reasonably ment vehicle manufacturer part is not in pro- required to repair -or replace the covered duction or distribution we may use a like, auto". If " loss" is caused by theft, this kind and quality replacement part. number of days is added to the number O. DEDUCTIBLE AMENDMENTS of days it takes to locate the covered The following are added to the Deductible provi- auto" and return it to you. sion of SECTION III — PHYSICAL DAMAGE b. The number of days shown in the COVERAGE: Schedule.

If another policy or coverage form that is not an 4. Our payment is limited to, the lesser of the automobile policy or coverage form issued by following amounts:
this company applies to the same " accident", the a. Necessary and actual expenses following applies: incurred.

1. If the deductible under this coverage is the b. $ 75 for any one day or for a maximum smaller ( or smallest) deductible, it will be of 30 days. waived:

5. This coverage does not apply while there

2. If the deductible under this coverage is not are spare or reserve " autos" available to you the smaller (or smallest) deductible, it will be for your operations. reduced by the amount of the smaller ( or 6. If " loss" results from the total theft of a cov- smallest) deductible. ered " auto" of the private passenger. type,
If a Comprehensive or Specified Causes of Loss we will pay under this coverage only that Coverage " loss" from one " accident" involves amount of your rental reimbursement ex - two or more covered " autos", only the highest penses which `is not already provided for un - deductible applicable to those coverages will be der SECTION III — PHYSICAL DAMAGE applied to the " accident," if the cause of the loss COVERAGE Coverage Extension. is covered for those vehicles. This provision only Q. EXPANDED TRANSPORTATION EXPENSE applies if you carry Comprehensive or Specified
Causes of Loss Coverage for those vehicles, Paragraph AA. a. of SECTION III — PHYSICAL and does not extend coverage to any covered DAMAGE COVERAGE is replaced by the follow - autos" for which you do not cant' such mg:
coverage. We will pay up to $ 50 per day to a maximum of 1500 for temporary transportation expense incurred by you because of the total theft of a

Page 4 of 7 ends

Includes copyrighted material of Insurance Services Office, Inc AC470 05 0316 with its permission.
covered " auto" of the private passenger type.

We will only pay for those covered " autos" for
which you carry Comprehensive or Specified
Causes of Loss Coverage. We will pay for temporary transportation expenses incurred during the period beginning 24 hours after the theft and
ending, regardless of the policy's expiration,
when the covered " auto" is returned to use or we
pay for its " loss".

We will pay only for those covered " autos"
for which you carry Comprehensive or Specified Causes of Loss Coverage S. PHYSICAL DAMAGE LIMIT OF INSURANCE T.

UnderSECTION III — PHYSICAL DAMAGE
COVERAGE, Paragraph C., Limit of Insurance
is replaced by the following:

C. Limit Of Insurance

2. $ 1500 is the most we will pay for " loss" in
any one " accident" to all electronic equipment that reproduces, receives or transmits audio, visual or data signals which, at the
time of " loss", is:
a. Permanently installed in or upon the
covered " auto" in a housing, opening or
other location that is not normally used
by the " auto" manufacturer for the installation of such equipment. b. Removable from a permanently installed
housing unit as described in Paragraph

2. a. above or is an integral part of that
equipment; or
c. An integral part of such equipment.

3. An adjustment for depreciation and physical
condition will be made in determining actual
cash value in the event of a total "loss".

COMMERCIAL AUTO
AC 70 05 03 16
ment manufacturer or other sources including non - original equipment manufacturers and b. If a repair or replacement results in better than like kind or quality, we will not pay for the amount of the net improvement.

NEW VEHICLE REPLACEMENT COST
The following is added to the Limit of Insurance
provision of SECTION III — PHYSICAL
DAMAGE COVERAGE:

We will not pay for initiation or set up costs
associated with loans or leases
As used in this endorsement, a " new

COMMERCIAL AUTO
AC 70 05 0316
ously titled and which you purchased less
than 365 days before the date of the "loss".

U. PHYSICAL DAMAGE COVERAGE

EXTENSIONS
Under SECTION III — PHYSICAL DAMAGE
COVERAGE, A. Coverage, Coverage Extensions, b. Loss of Use Expenses is replaced by the following:
b. Loss of Use Expenses
For Hired Auto Physical Damage, we will
pay expenses for which an " insured" becomes legally responsible to pay for loss of use of a vehicle rented or hired without a
driver, under a written rental contract or
agreement. We will pay for loss of use expenses if caused by:
1) Other than collision if the Declarations
indicate that Comprehensive Coverage
is provided for any covered " auto";
2) Specified Causes of Loss only if the
Declarations indicate that Specified
Causes of Loss Coverage is provided
for any covered " auto'; or
3) Collision only if the Declarations indicate
that Collision Coverage is provided for
any covered " auto."
However, the most we will pay for any
expenses for loss of use is $ 50 per day, to a
maximum of $1, 500. The insurance provided
by this provision is excess over any other
collectible insurance.

V. TRANSFER OF RIGHTS OF RECOVERY

AGAINST OTHERS TO US
The following is added to the Transfer Of Rights
Of Recovery Against Others To Us Condition:

W. NOTICE OF AND KNOWLEDGE OF

OCCURRENCE
SECTION IV — BUSINESS AUTO
CONDITIONS, Paragraph A is amended as
follows:

6. NOTICE OF AND KNOWLEDGE OF

OCCURRENCE
a. Your obligation in the Duties in the Event
of Accident, Claim, Suit or Loss Condition relative to notification requirements applies only when the " accident" or
loss" is known to:
1) You, if you are an individual;
2) A partner, if you are a partnership;
3) A member, if you are a limited liability
company; or
4) An executive officer or insurance
manager, if you are a corporation.
b. Your obligation in the. Duties in the Event
of Accident, Claim, Suit or Loss Condition
relative to providing us with documents
concerning a claim or " suit' will not be
considered breached unless the breach
occurs after such claim or " suit" is known
to:
1) You, if you are an individual;
2) A partner, if you are a partnership;
3) A member, if you are a limited
liability company; or
4) An executive officer or insurance
manager, if you are a corporation.

X. HIRED CAR — COVERAGE TERRITORY
Item ( 5) of the Policy Period, Coverage Territory
General Conditions is replaced by the following:
5) Anywhere in the world if a covered " auto" is
leased, hired, rented or borrowed without a
driver for a period of 30 days or less; and
Y. EMERGENCY LOCKOUT
We will reimburse you up to $ 100 for reasonable
expense incurred for the services of a locksmith
to gain entry into your covered " auto" subject to
these provisions:

1. Your door key, electronic key or key entry
pad has been lost, stolen or locked in your
covered " auto" and you are unable to enter
such " auto" , or

2. Your keyless entry device battery dies and
you are unable to enter such " auto" as a result,

3. Your key, electronic key or key entry pad
has been lost or stolen and you have
changed the lock to prevent an unauthorized
entry; and

Page 6 of 7 ends

with its permission.

4. Original copies of receipts for services of a
locksmith must be provided before reimbursement is payable.

Z. CANCELLATION CONDITION
Paragraph A. 2. of the COMMON POLICY
CONDITION — CANCELLATION applies
except as follows:

COMMERCIAL AUTO
AC 70 05 0316
If we cancel for any reason other than nonpayment of premium, we will mail or deliver to the First Named Insured written notice of
cancellation at least 60 days before the effective date of cancellation. This provision does not apply in those states that require
more than 60 days prior notice of cancellation.

AC 70 05 03 16 Includes copyrighted material of Insurance Services Office, Inc., Page 7 of 7 with its permission

COMMERCIAL GENERAL LIABILITY
CG 72 12 12 16
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

COMMERCIAL GENERAL LIABILITY

COVERAGE ENHANCEMENT ENDORSEMENT

INCLUDING MEDICAL PAYMENTS
This endorsement modifies insurance provided under the following:

COMMERCIAL GENERAL LIABILITY COVERAGE PART
SECTION I — COVERAGES, COVERAGE A

BODILY INJURY AND PROPERTY DAMAGE
LIABILITY, 2. Exclusions is amended as follows:

1. Paragraph ( 2)( a) of Exclusion g. Aircraft, Auto
Or Watercraft is replaced with:
a) Less than 51 feet long; and

2. The following is added to Exclusion j. Damage
To Property:
a) Paragraphs ( 3) and ( 4) does not apply to
property damage" to borrowed equipment
while not in use, while at the insured' s
premises or a job site; or
b) Paragraph ( 4) does not apply " property
damage" to customers goods while on the
insured' s premises for the purpose of being
worked on or used in a manufacturing
process.

Limit of Insurance - The most we will pay for
damages for " property damage" coverage
provided by this coverage in any one
occurrence" is $ 10, 000.

Deductible - Our obligation to pay for a covered
loss applies only to the amount of loss in excess
of $ 500. We will pay the deductible amount to
effect settlement of any claim or " suit" and, upon
notification of this action having been taken, you
shall promptly reimburse us for the deductible as
has been paid by us. This insurance is excess
over any other valid and collectible insurance.

3. The last paragraph of 2. Exclusions is replaced
with:

If Damage To Premises Rented To You is not
otherwise excluded, exclusions c. through n. do
not apply to damage by fire, lightning, explosion,
smoke or sprinkler leakage to premises while
rented to you or temporarily occupied by you
rented to you or temporarily occupied by you
with permission of the owner. A separate limit of
insurance applies to this coverage as described
in Section III - Limits of Insurance.

SECTION I — COVERAGES, SUPPLEMENTARY
PAYMENTS — COVERAGES A AND B is amended
as follows:

1. Paragraph 1. b. is replaced with:
b. Up to $ 2,500 for cost of bail bonds required
because of accidents or traffic law violations
arising out of the use of any vehicle to which
the Bodily Injury Liability Coverage applies.

We do not have to furnish these bonds.

2. Paragraph 1. d. is replaced with:
d. All reasonable expenses incurred by the
insured at our request to assist us in the
investigation or defense of the claim or
suit", including actual loss of earnings up to
500 a day because of time off from work.

SECTION II — WHO IS AN INSURED is amended as
follows:

1. Paragraph 3. a. is replaced with:
a. Coverage under this provision is afforded
only until the 1801h day after you acquire or
form the organization or the end of the policy
period, whichever is earlier;

2. The following is added:

4. Additional Insured — Automatic Status
When Required In An Agreement With
You
Who Is An Insured includes person( s) or
organization( s) described in Paragraphs a. —
i. below with whom you have agreed in
writing in a contract or agreement that such
person or organization be added as an
additional insured on your policy.
a. Co -Owners Of Insured Premises —
with respect to their liability as co- owner
of the premises.

CG 7212 12 16 Includes copyrightedmaterial of ISO Properties, Inc., with its Page 1 of 5 permission.

CG 72 12 12 16
However, their status as additional
insured under this policy ends when you
cease to co- own such premises with
that person or organization.
b. Controlling Interest — with respect to
their liability arising out of their financial
control of you; or premises they own,
maintain, or control while you lease or
occupy these premises.

This insurance does not apply to
structural alterations, new construction
and demolition operations performed by
or for that person or organization.

However, their status as additional
insured under this policy ends when
they cease ' to have such controlling
interest.
c. Grantor of Franchise or License —
with respect to their liability as grantor of
a franchise or license to you.

However, their status as additional
insured under this policy ends:
1) when their contract or agreement
with you granting the franchise or
license ends or expires; or
2) when your license is terminated or
revoked prior to expiration of the
license as stipulated by the contract
or agreement.
d. Lessors of Leased Equipment — with
respect to their liability for "bodily injury",
property damage" or " personal and
advertising injury" caused in whole or in
part by your maintenance, operation or
use of equipment leased to you by such
person( s) or organization( s). This
insurance does not apply to any
occurrence" which takes place after the
equipment lease expires.

However, their status as additional
insured under this policy ends when
their lease, contract, or agreement with
you for such leased equipment ends.
e. Managers, or Lessors of Premises —
with respect to liability arising out of the
ownership, maintenance, or use of that
part of the premises leased to you.

This insurance does not apply to:
1) Any " occurrence" which takes place
after you cease to be a tenant in
that premises.

Structural alterations, new construction,
or demolition operations performed by
or on behalf of the person or
organization.

However, their status as additional
insured under this policy ends when you
cease to be a tenant of such premises.
f. Mortgagee, Assignee, or Receiver —
with respect to their liability as
mortgagee, assignee, or receiver and
arising out of the ownership,
maintenance, or use of the premises by
you.

This insurance does not apply to
structural alterations, new constructions,
and demolition operations performed by
or for that person or organization.

However, their status as additional
insured under this policy ends when
their status as mortgagee, assignee, or
receiver ends.
g. Owners or Other Interest from Whom
Land has been Leased — with respect
to their liability arising out of the
ownership, maintenance, or use of that
part of the land leased to you.

This insurance does not apply to:
1) Any ' occurrence" which takes place
after you cease to lease the land; or
2) Structural alterations, new
construction, or demolition
operations performed by or on
behalf of the person or organization.

However, their status as additional
insured under this policy ends when you
cease to lease that land.
h. State or Political Subdivisions —
Permits Relating to Premises — with
respect to the following hazards for
which the state or governmental agency
or ' subdivision or political subdivision
has issued a permit or authorization in
connection with premises you own, rent,
or control and to which this insurance
applies:
1) The existence, maintenance, repair,
construction, erection, or removal of
advertising signs, awnings,
canopies, cellar entrances, coal

Page 2 of 5 ends

permission.

CG 72 12 12 16
holes, driveways, manholes, manufacturer, and then
marquees, hoist away openings, repackaged in the original sidewalk vaults, street banners or container;
decorations and similar exposures; e) Any failure to make such or inspections, adjustments, tests
2) The construction, erection, or or servicing as the vendor has removal of elevators; or agreed to make or normally
3) The ownership, maintenance or use undertakes to make in the usual of any elevators covered by this course of business, in insurance. connection with the distribution
This insurance does not apply to:
or sale of the products;
1) " Bodily injury" or " property damage"
f) Demonstration, installation,
or " personal or advertising injury" servicing, or repair operations, arising out of operations performed
except such operations
for the state or municipality; or
performed at the vendor' s
premises in connection with the
2) " Bodily injury" or " property damage" sale of the product; included within the " productscompleted operations hazard". g) Products which, after distribution or sale by you, have However, such state or political been labeled or relabeled or subdivision' s status as additional
used as a container, part or
insured under this policy ends when the ingredient of any other thing or permit ends. substance by or for the vendor;
L Vendors — but only with respect to or
bodily injury" or " property damage" h) " Bodily injury" or " property arising out of " your products" which are damage" arising out of the sole distributed or sold in the regular course negligence of the vendor for its of the vendor' s business, subject to the
own acts or omissions or those
following additional exclusions: of its employees or anyone else 1) The insurance afforded the vendor acting on its behalf. However, does not apply to: this exclusion does not apply to:
a) " Bodily injury" or " property i) The exceptions contained in damage" for which the vendor is Subparagraphs d. or f.; or obligated to pay damages by ii) Such inspections, adjust - reason of the assumption of ments, tests or servicing as liability in a contract or the vendor has agreed to
agreement. This exclusion does make or normally
not apply to liability for damages undertakes to make in the that the vendor would have in usual course of business, in the absence of the contract or
connection with the
agreement; distribution or sale of the
b) Any express warranty unau- products.
thorized by you; 2)This insurance does not apply to any c) Any physical or chemical insured person or organization, from change in the product made whom you have acquired such
intentionally by the vendor; products, br any ingredient, part or d) Repackaging, except when container, entering into, accomunpacked solely for the purpose panying or containing such of inspection, demonstration, products.
testing, or the substitution of
parts under instructions from the
CG 7212 1216 Includes copyrighted material of ISO Properties, Inc., with its Page 3, of 5 permission.

CG 72 12 12 16
With respect to the insurance afforded to
such additional insureds a. — d. described
above the following is added to the Section
III — Limits Of Insurance:

If coverage provided to the additional
insured is required by a contract or
agreement, the most we will pay on behalf of
the additional insured is the amount of
insurance:

1. Required by the contract or agreement;
or

2. Available under the applicable Limits of
Insurance shown in the Declarations;
whichever is less.

This endorsement shall not increase the
applicable Limits of Insurance shown in the
Declarations.

However, this insurance afforded to such
additional insureds a. — i. described above:

1. Only applies to the extent permitted by
law; and

2. Will not be broader than that which you
are required by the contract or
agreement to provide for such additional
insured.

SECTION III — LIMITS OF INSURANCE

1. The following is added to Paragraph 2:

The General Aggregate Limit applies separately
to each of your "locations" owned by or rented to
you or temporarily occupied by you with the
permission of the owner.

2. Paragraph 6. is replaced with:

3. Paragraph 7. is replaced with:

7. Subject to 5. above, the higher of:
a. $ 10, 000; or
b. The amount shown in the Declarations
for Medical Expense Limit is the most
we will pay under Coverage C for all
medical expenses because of " bodily
injury" sustained by one person.

This coverage does not apply if Coverage C
Medical Payments is excluded either by
the provisions of any coverage forms
attached to the policy or by endorsement.

SECTION IV — COMMERCIAL GENERAL

LIABILITY CONDITIONS

2. Paragraph b. Excess Insurance ( 1) ( b) ( ii) of
condition 4. Other Insurance is replaced with:
ii) That is Fire insurance for premises rented to
you or temporarily occupied by you with
permission of the owner;

4. Condition 8. Transfer Of Rights Of Recovery
Against Others To Us is amended to include:

5. The following condition is added:

Page 4 of 5 ends

permission.

CG 72 12 12 16
SECTION V — DEFINITIONS or death resulting from any of these at any

1. Definition 3. `Bodily Injury" is replaced with: time.

3. ` Bodily injury" means bodily injury, sickness

2. The following definition is. added:
or disease sustained by a person, including " Location" means premises involving the same mental anguish, mental injury, shock, fright or connecting lots, or premises whose connection is interrupted only by a street,
roadway, waterway, or right- of-way of a railroad.

All terms and conditions apply unless modified by this endorsement.

CG 7212 1216 Includes copyrighted material of ISO Properties, Inc., with its Page 5 of 5 permission.

Agenda Item K

AGENDA STAFF REPORT
DATE: December 11, 2023
TO: Honorable Mayor and City Council
THRU: Jill R. Ingram, City Manager
FROM: Iris Lee, Director of Public Works
SUBJECT: Presentation of Water and Sewer Rate Study and Set Public Hearing Regarding the Proposed New Water and Sewer
Rates
________________________________________________________________ SUMMARY OF REQUEST:

That the City Council adopt Resolution 7472:

1. Authorizing the City Manager to notify the public of the proposed Water and Sewer Rates in compliance with Proposition 218; and,

2. Setting the Water and Sewer Rate Study Public Hearing date for February 12, 2024.

BACKGROUND AND ANALYSIS:

Background:

The City’s Water and Sewer utilities are funded entirely by fees received from the ratepayers, also known as Water Enterprise and Sewer Enterprise funds, respectively. All associated expenditures, such as operating and maintenance costs, capital improvements, and reserves are funded through rate-funded revenues, and not the General Fund.

Rates are regularly evaluated as part of the City’s annual budgeting process to ensure projected revenues are sufficient to cover all Water and Sewer utilityrelated expenditures. The City’s last rate adjustment was approved in February 2021; however, the rates are no longer sufficient to cover ongoing operating, maintenance, repair and improvement costs.

The City retained Raftelis Financial Consultants, Inc. (“Raftelis”) to conduct a Water and Sewer Rate Study to ensure the City’s plan for critical infrastructure maintenance and funding for capital improvement projects are in alignment. This would include meeting established reserve policies, continued reinvestment into

Page 2 ends

the aging infrastructure to ensure system reliability, inflationary cost increases, preparation of current and future mandates, and ensure water quality is met.

Water Utility System:

The City owns and maintains a water system and is responsible for ensuring safe and reliable water for drinking, irrigation, and fire protection. These essential services are accomplished through a strategic combination of highly qualified operators and administrative support staff, which includes City departments such as the Public Works Department, City Manager’s Office, City Clerk’s Office, and the Finance Department. Together, the water system’s two (2) reservoirs, two (2) booster stations, four (4) production wells, 73.5 miles of pipeline, and over 5,300 services are properly maintained.

Based on Raftelis’ detailed financial plan analysis, the February 2021 rate adjustments are no longer sufficient to cover ongoing operating, maintenance, repair and improvement costs due to:

1. Approximately $600,000 in lost revenue due to successful water conservation of 21% during the last major drought, along with the Winter 2023 atmospheric rivers that reduced outdoor irrigation use. ;

2. Increased wholesale import and groundwater costs;

3. Aging infrastructure and deferred maintenance;

4. Overall inflationary impacts; and

5. On-going introduction of new legislation.

Water Enterprise Fund Reserve Policy:

The Water Rates have been constructed with a financial plan that corrects the structural deficit and sufficiently fund operations, capital and reserves. A reserve policy was set based on the types of risk the utility faces. • Operating Reserves – to cover day-to-day expenses and maintain sufficient funds to cover operating cash flows, periods of reduced water sales, or unforeseen costs.
o Minimum 20% of Operating & Maintenance expenditures
o Target: 25% of Operating & Maintenance expenditures
• Capital Replacement Reserves – to cover a portion of upcoming annual capital expenditures and mitigate unexpected capital needs. o Minimum 25% of average 5 - year CIP
o Target: 30% of average 5 - year CIP
• Debt Reserve – to cover debt repayments when cash flow to a debt service is insufficient and prevents default.
o Minimum 20% of total debt services
o Target: 25% of total debt services

Page 3 ends

Water and Sewer Bill Components:

Water and Sewer Rates have two components – (1) fixed charges; and (2) variable volumetric charges. Fixed charges are a function of meter size and is a charge without respect to use. Volumetric charges are calculated based on the amount used multiplied by the rate per unit. The unit is measured in hundred cubic feet (“HCF”), which is approximately 748 gallons.

Proposed Water Debt:

To maintain effective operations, it is necessary to secure Water utility revenue through low-interest State Revolving Loans and market-debt loans. This approach ensures ongoing expenditures can be sustained until the anticipated rategenerated revenues come into effect.

Staff will continue to pursue external funding sources to reduce debt issuances, if possible.

FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028
Market Debt
Issuance
$13M $9M
State Loan (SRF) $11M
Wholesale Water Purchase Cost Pass-Through:

The City purchases water from wholesale agencies and has no control over those charges. The City has estimated future wholesale rates, however, if wholesale rates are higher than predicted, the City will pass-through the increase in wholesale water purchase costs as allowable by Government Code Section 53756.

The pass-through amount will not exceed the increase in cost. The pass-through will be calculated at the increase in wholesale water purchase costs divided by annual water use.

Proposed Water Rates:

Current Water Rate structures will remain the same. That is, a fixed charge by meter size, plus a volumetric rate that is broken down into the following:
• A two-tiered Single-Family Residential, Multi-Family Residential, and Leisure World customer class based on consumption; and, • A single-tiered rate structure for Commercial, Irrigation, Sunset Aquatic Park, and City customer class based on consumption.

The tables below illustrate the proposed rate and charge increases for the next five years. These adjustments were calculated by forecasting revenue, expenses and reserves to establish adequate cost-to-debt ratio.

Page 4 ends

Proposed Water Fixed Charges:

Water
Rates
Effective
1/1/2024 4/1/2024 1/1/2025 1/1/2026 1/1/2027 1/1/2028
Monthly Fixed Charges
All Customers
5/8'' $24.25 $32.25 $40.32 $47.17 $52.83 $58.11
3/4'' $24.25 $32.25 $40.32 $47.17 $52.83 $58.11
1" $36.07 $47.97 $59.97 $70.16 $78.58 $86.44

Page 5 ends

Proposed Water Volumetric Charges:

The average Water cost impact per customer class is shown in the tables below:

Water
Rates
Effective
1/1/2024 4/1/2024 1/1/2025 1/1/2026 1/1/2027 1/1/2028
Volumetric Rates ($ /hcf)
Residential
Tier 1 $3.49 $4.64 $5.80 $6.79 $7.60 $8.36
Tier 2 $3.69 $4.91 $6.13 $7.18 $8.04 $8.84
Multi-Family Residential
Tier 1 $3.49 $4.64 $5.80 $6.79 $7.60 $8.36
Tier 2 $3.65 $4.85 $6.07 $7.10 $7.95 $8.75
Leisure World
Tier 1 $3.49 $4.64 $5.80 $6.79 $7.60 $8.36
Tier 2 $3.65 $4.85 $6.07 $7.10 $7.95 $8.75
Commercial $3.49 $4.64 $5.80 $6.79 $7.60 $8.36
Irrigation $3.57 $4.75 $5.94 $6.94 $7.78 $8.56
City $3.53 $4.69 $5.87 $6.87 $7.69 $8.46
Aquatic Park $3.95 $5.25 $6.57 $7.68 $8.61 $9.47

Page 6 ends

Sewer Utility System:

The City also owns and maintains a Wastewater (or also known as Sewer) collections system. This system consists of 181,000 linear feet of pipeline, approximately 800 manholes, and six (6) pump stations. Similar to the Water Utility System, the Sewer Utility System is supported by technical and administrative staff through a rate-supported Sewer Enterprise fund.

Sewer Enterprise Fund Reserve Policy:

The Sewer Rates have been constructed with a financial plan that corrects the structural deficit and sufficiently funds operations, capital and reserves. A reserve policy was set based on the types of risk the utility faces. • Operating Reserves – to cover day-to-day expenses and maintain sufficient funds to cover operating cash flows, periods of reduced revenue, or unforeseen costs.
o Minimum 25% of Operating & Maintenance expenditures
o Target: 25% of Operating & Maintenance expenditures
• Capital Replacement Reserves – to cover a portion of upcoming annual capital expenditures and mitigate unexpected capital needs. o Minimum 25% of average 5 - year CIP
o Target: 25% of average 5 - year CIP
• Debt Reserve – to cover debt repayments when cash flow to a debt service is insufficient and prevents default.
o Minimum 10% of total debt services
o Target: 10% of total debt services

Page 7 ends

Proposed Sewer Debt:

The required Sewer Utility revenue to properly sustain operations will require market-debt issuance. This will provide funding while the proposed rate-generated revenues catch up.

Staff will continue to pursue more favorable external funding sources to reduce debt issuance, if possible.

FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028
Market Debt
Issuance
$14M
Proposed Sewer Rates:

The current Sewer Rate structures will remain the same. • Single Family Residential: fixed charge; and,
• Other Customer Classes: fixed charge plus volumetric rate based on water consumption.

The table below illustrates the proposed rate and charge increases for the next five (5) years. These adjustments were calculated by forecasting revenue, expenses and reserves to establish adequate cost-to-debt ratio.

Page 8 ends

Proposed Sewer Charges:

The average Sewer cost impact per customer class is shown in the table below:

Wastewater
Rates
Effective
1/1/2024 4/1/2024 1/1/2025 1/1/2026 1/1/2027 1/1/2028
Fixed Charges
Single Family Residential $24.02 $32.43 $40.21 $47.85 $54.07 $57.85 Multi-Family Residential $0.61 $0.82 $1.02 $1.22 $1.37 $1.47 Commercial $0.61 $0.82 $1.02 $1.22 $1.37 $1.47
City $0.61 $0.82 $1.02 $1.22 $1.37 $1.47
Leisure World - Fixed Charge $0.61 $0.82 $1.02 $1.22 $1.37 $1.47 Leisure World - Flat Rate $1,099.03 $1,483.69 $1,839.78 $2,189.33 $2,473.95 $2,647.12 Aquatic Park - Sewer Service Equity Charge$498.75 $673.31 $834.91 $993.54 $1,122.70 $1,201.29 Aquatic Park - Sewer Capital Equity Charge$661.00 $892.35 $1,106.51 $1,316.75 $1,487.93 $1,592.08 Navy - Sewer Meter $0.61 $0.82 $1.02 $1.22 $1.37 $1.47
Volumetric Rates ($ / hcf)
Multi-Family Residential $4.00 $5.40 $6.70 $7.97 $9.00 $9.63 Commercial $4.00 $5.40 $6.70 $7.97 $9.00 $9.63
City $4.00 $5.40 $6.70 $7.97 $9.00 $9.63
Leisure World $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Navy - Sewer Meter $0.24 $0.32 $0.40 $0.48 $0.54 $0.58

Page 9 ends

Proposition 218 Requirements:

Water and sewer rate adjustments are subject to Proposition 218’s public hearing and majority protest procedures. Following City Council approval of the Water and Sewer Rate Study, staff will prepare and mail notice to ratepayers that receive Water and/or Sewer services from the City. The City Clerk is responsible for tabulating the written protests received during the 45-day protest period. The City Clerk will report on the number of written protests received up to the time of the hearing. The Mayor will open the public hearing to receive additional written and oral protests.

At the conclusion of the public hearing, the City Clerk will tabulate any additional written protests. The final tabulation may take a few minutes, depending on the number of written protests received by the close of the public hearing. The City Clerk will then report on the total number of written protests received.

If written protests submitted against the Water and Sewer Rate increases exceed more than 50% of the parcels subject to the proposed fee increases, a majority protest exists, and the City Council shall not impose the Water and Sewer Rate increase. If the final tabulation is less than 50% of all the parcels in the City, the City Council would consider implementing the Water and Sewer Rate increases effective April 1, 2024, and then on January 1 for each year from 2025 through 2028.

With Council approval, the public hearing will be scheduled for February 12, 2024.

Effective Dates of Proposed Rate Adjustments:
• FY 2023/24 April 1, 2024 to December 31, 2024
Leisure World
Monthly Current Cost $2,199.28
Monthly Proposed Cost $2,969.03
Diff. ($) $769.75
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
Monthly Current Cost Monthly Proposed Cost Diff. ($)
WW Monthly Cost Impacts - Leisure World

Page 10 ends

• FY 2024/25 January 1, 2025 to December 31, 2025
• FY 2025/26 January 1, 2026 to December 31, 2026
• FY 2026/27 January 1, 2027 to December 31, 2027
• FY 2027/28 January 1, 2028 to December 31, 2028
Proposed Timeline:

Proposed dates for completing the Water and Sewer Rate adjustments are as follows:
• Set Public Hearing Date December 11, 2023
• Mail Notice of Public Hearing Prior to December 28, 2023 • Conduct Community Open House January 18, 2024
• Hold Public Hearing February 12, 2024
• Rate Effective Date April 1, 2024
ENVIRONMENTAL IMPACT:

This item is not subject to the California Environmental Quality Act (“CEQA”) because it is not a “project” as defined under Section 15378(b) of the state CEQA Guidelines. This item is also exempt from CEQA pursuant to Section 15061(b)(3) of the Guidelines because it can be seen with certainty that the approval of Water and Sewer Utility Rates will not have a significant effect on the environment.

LEGAL ANALYSIS:

The City Attorney has approved the resolution as to form.

FINANCIAL IMPACT:

The anticipated increase in Water and Sewer revenue required to sustain proper utility operations, is summarized below:

Projected Water Utility Revenue
FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028
Projected Revenue $6.7M $9.3M $11.2M 12.8M $14.2M
Projected Sewer Utility Revenue
FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028
Projected Revenue $2.5M $3.4M $4.1M $4.8M $5.2M

Page 11 ends

STRATEGIC PLAN:

This item is not applicable to the Strategic Plan.

RECOMMENDATION:

That the City Council adopt Resolution 7472:

1. Authorizing the City Manager to notify the public of the proposed Water and Sewer Rates in compliance with Proposition 218; and,

2. Setting the Water and Sewer Rate Study Public Hearing date for February 12, 2024.

SUBMITTED BY: NOTED AND APPROVED:

Iris Lee Jill R. Ingram
Iris Lee, Director of Public Works Jill R. Ingram, City Manager ATTACHMENT:

A. Resolution 7472
RESOLUTION 7472

A RESOLUTION OF THE SEAL BEACH CITY COUNCIL

DIRECTING STAFF TO INITIATE THE PROPOSITION
218 PROCESS AND SETTING A PUBLIC HEARING

RELATING TO WATER RATES AND SEWER RATES
FOR FEBRUARY 12, 2024 AT 7:00 P.M.

WHEREAS, the City of Seal Beach has a Water Utility that provides water services to residents and businesses; and,
WHEREAS, the City of Seal Beach has a Sewer Utility that provides wastewater collection services to residents and businesses; and,
WHEREAS, the cost to operate, maintain, repair and improve the City’s Water and Sewer Utility systems have increased substantially since the last rate adjustment in February 2021, and are estimated to continue increasing significantly; and, WHEREAS, the City’s currently established Water and Sewer rates are not adequate to meet increasing operating and capital improvements costs without compromise to system operations; and,
WHEREAS, Raftelis Financial Consultants (“Raftelis”) was awarded a professional services agreement to provide Water and Wastewater Financial Planning Services; and,
WHEREAS, Raftelis conducted a Water and Sewer Rate Study and prepared a draft Rate Study for both the Water and Sewer Utility Enterprise funds; and, WHEREAS, in order to adjust Water and Sewer rates, the City must comply with Article XIIID of the Constitution, more commonly known as Proposition 218; and, WHEREAS, an overview of the draft Water and Sewer Rate Study analysis results and recommendations were presented at the December 11, 2023 City Council Meeting.

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

Section 1. The City Council hereby directs staff to initiate the Proposition 218 majority protest process for Water and Sewer Rate adjustments.

Section 2. The City Council hereby sets a Public Hearing relating to proposed changes to Water and Sewer Rates for February 12, 2024 at 7:00 p.m. in the City Council Chambers.

Section 3. The City Council hereby authorizes the City Manager to mail notice in accordance with Proposition 218 regarding the Public Hearing and the proposed changes to the Water and Sewer Rates as required by law.

PASSED, APPROVED AND ADOPTED by the Seal Beach City Council at a regular meeting held on the 11th day of December, 2023 by the following vote:

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

Thomas Moore, 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 7472 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 11th day of December, 2023.

Gloria D. Harper, City Clerk
Photo courtesy of Ken Lund (Flickr)
City of Seal Beach
Water and Wastewater Utility Financial Plan
& Rate Study
Dec 11, 2023
2 Agenda
• Background
• Why Review the Water and Wastewater Utilities’
Financial Health?
• Water Utility
• Financial Health Overview
• Proposed Rate Adjustments
• Bill Impacts
• Wastewater Utility
• Financial Health Overview
• Proposed Rate Adjustments
• Bill Impacts
• Public Information
Water System Management
3 1. Water Loss/Water Sampling/Water Audit

2. Consumer Confidence Report

3. Meeting All Regulatory Requirements
Sewer System Management

1. Sewer Audits

2. No Major Sewer Overflows

3. System CCTV and Clearing
Consumer Confidence Report
4 • Since 1990, California
public water utilities have
been providing an annual
water quality report to
customers.
• The City of Seal Beach
Utilities Division vigilantly
safeguards our water
supply and ensures that
the water delivered to
customers meets the
quality standards required
by federal and state
regulatory agencies.

What is PFAS?
5 • Per – and polyfluoroalkyl substances (part of
PFAS)
• Drinking water regulations being finalized by EPA
• Seal Beach is non-detect, however, other areas
in the groundwater basin are being impacted
• Seal Beach is part of a groundwater basin where
treatment plant costs are spread across all water
producers
• PFAS is a big driver in water production cost
6 Water Infrastructure
7 Sewer Infrastructure
What Did We Do to Minimize Costs?
8 1. Internal audit of absolute needs.

2. Reassessed capital improvements and reprioritized schedule.

3. Evaluated staffing levels, and operation and maintenance needs.

4. Actively identified outside funding opportunities.
9 Water and Wastewater
Rate Study
Raftelis Water and Wastewater Financial Plan
Project Team
10 Steve Gagnon, PE (AZ)
Project Manager
Sarah Wingfield
Lead Analyst
▪ 24+ years experience
▪ 15+ years in Orange
County setting water and
wastewater rates
▪ e: [email protected]
▪ ph: (714) 351-2013
Gina DePinto, APR
Communications
▪ e: [email protected]
▪ ph: (213) 262-9311
▪ 34+ years experience
▪ Former PIO in county, city,
special district agencies,
including OCWD
▪ e: [email protected]
▪ ph: (760) 271-7934
11 Why are Rate Increases
Needed?
Five Main Factors Affecting the Financial
Health of the Utilities
12 1. COVID-19 Pandemic, led to high inflation
• Higher labor and material cost

2. Lower Water Use (drought & rain) = decreased revenue to cover mostly fixed costs

3. Wholesale Water Costs
• Increased OCWD water wholesale costs (partly due to PFAS) • MWDOC: Import water wholesaler

4. Aging Infrastructure / Deferred Maintenance

5. New Legislation and Regulations
Inflation
13 Inflation
14 • The U.S. experienced 20 years of benign inflation right up to the City’s last water and wastewater rate studies, which were started in 2019.

FY 2022 FY 2023 FY 2024
Actual Actual Actual
General (for Los Angeles Area)1

6.5% 5.4% 2.1%
Utilities (Electricity)2

14.6% 8.6% 7.0%
Capital 7.9% 4.9% Budgeted
OCWD rate3

4.5% 9.6% 11.8%
MWDOC Volumetric Rate4

2.4% 3.5% 5.8%
1 CPI for All Urban Consumers:Los Angeles, Long Beach, Anaheim 2 CPI for All Urban Consumers: Electricity in LA, LB and Anaheim 3 This does not assume unfavorable EPA ruling for PFAS concentrations 4 FY 2025 increases and beyond were provided by MWDOC
Inflation Factors - 2021 Study All 5 Years
General 2.2%
Utilities 2.2%
Capital 3.2%
OCWD 6.5%
MWDOC Volumetric Rate % Increase 2.4%
The Utility Index vs Normal Goods (CPI)
15 Water Use is Down, Therefore Revenue is
Lower
16 1. City adopted Level 2 water restrictions due to drought

2. 2022/23 Winter Storms – customers use less water for irrigation

3. State Legislation – Making Water Conservation a Way of Life seeks to lower California water use
FYE 2021 FYE 2022 FYE 2023
Total Water Volume (hcf) 1,457,089 1,481,931 1,172,884
2% -21%
Approximately $600k in lost revenue in FYE 2023!
17 Water
Financial Plan
& Proposed Rates
Financial Outlook Without Revenue Increases
(or bond issuances)
18 Water Financial Health Without Rate
Increases
• Not meeting debt coverage
requirements; need 1.2x
• Will quickly deplete reserves
without revenue increases
19 Capital Improvement Projects - Water
20 Capital Improvement
Projects
FYE 2024 * FYE 2025 FYE 2026 FYE 2027 FYE 2028
Total $1,523,863 $6,142,696 $6,250,000 $5,750,000 $6,000,000 Sample Project List
• Lampson Well Treatment System
• LCWA Watermain Relining
• Bolsa Chica Well Rehabilitation
• Navy Reservoir Rehabilitation
• Beverly Manor Booster Station
• FYE 2024 only includes carry-over design funds, but no CIP construction costs due to lack of funding Water Reserves
• Operating reserve = 25% of operating expenses ≈ $1.5M • Capital reserve = 30% of average yearly cash/reserve
funding capital ≈ $1M
• Debt reserve = 25% of debt service ≈ $200 to 500k
• Total reserve goal ≈ $2.5 to $3M
21 Water Financial Plan
22 Why are the revenue increases needed?
1) They are needed to meet debt coverage ratios so the City can issue debt to fund needed capital projects
2) Keep up with inflation
3) Recover lost revenue due to lower water use
4) Fund aging Infrastructure replacement
FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028
April 1, 2024 Jan 1, 2025 Jan 1, 2026 Jan 1, 2027 Jan 1, 2028 Additional Revenue $500k $3.09M $4.98M $6.58M $7.58M
Market Debt Issuance $13M $9M
State Loan (SRF) $11M
Proposed Monthly 5-Year Fixed Charges
23 Water Date Effective ->>
Rates Effective
1/1/2024 4/1/2024 1/1/2025 1/1/2026 1/1/2027 1/1/2028
Monthly Fixed Charges
All Customers
5/8'' $24.25 $32.25 $40.32 $47.17 $52.83 $58.11
3/4'' $24.25 $32.25 $40.32 $47.17 $52.83 $58.11
1" $36.07 $47.97 $59.97 $70.16 $78.58 $86.44

1.5" $69.88 $92.93 $116.17 $135.92 $152.23 $167.45
2" $105.71 $140.59 $175.73 $205.61 $230.28 $253.31
3" $188.08 $250.15 $312.68 $365.84 $409.74 $450.71
4" $312.94 $416.20 $520.25 $608.70 $681.74 $749.92
6" $616.21 $819.56 $1,024.45 $1,198.61 $1,342.44 $1,476.68 8" $985.61 $1,310.86 $1,638.58 $1,917.13 $2,147.19 $2,361.91 10" $1,410.78 $1,876.34 $2,345.42 $2,744.14 $3,073.44 $3,380.78 6" Leisure World $616.21 $819.56 $1,024.45 $1,198.61 $1,342.44 $1,476.68 2" Aquatic Park $159.53 $212.17 $265.21 $310.30 $347.53 $382.28 Private Fire Charges
4" $25.20 $33.51 $41.89 $49.01 $54.89 $60.38
6" $73.18 $97.33 $121.66 $142.34 $159.43 $175.37
8" $155.95 $207.41 $259.27 $303.34 $339.74 $373.72
10" $280.46 $373.01 $466.26 $545.52 $610.98 $672.08
hcf = hundred cubic feet 1 hcf = 748 gallons of water
Proposed 5-Year Volumetric Rates ($/hcf)
24 Water Date Effective ->>
Rates Effective
1/1/2024 4/1/2024 1/1/2025 1/1/2026 1/1/2027 1/1/2028
Volumetric Rates ($ /hcf)
Residential
Tier 1 $3.49 $4.64 $5.80 $6.79 $7.60 $8.36
Tier 2 $3.69 $4.91 $6.13 $7.18 $8.04 $8.84
Multi-Family Residential
Tier 1 $3.49 $4.64 $5.80 $6.79 $7.60 $8.36
Tier 2 $3.65 $4.85 $6.07 $7.10 $7.95 $8.75
Leisure World
Tier 1 $3.49 $4.64 $5.80 $6.79 $7.60 $8.36
Tier 2 $3.65 $4.85 $6.07 $7.10 $7.95 $8.75
Commercial $3.49 $4.64 $5.80 $6.79 $7.60 $8.36
Irrigation $3.57 $4.75 $5.94 $6.94 $7.78 $8.56
City $3.53 $4.69 $5.87 $6.87 $7.69 $8.46
Aquatic Park $3.95 $5.25 $6.57 $7.68 $8.61 $9.47
Water FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028
Rate Revenues $6,160,620 $6,225,060 $6,195,656 $6,195,656 $6,195,656 Other Revenue (misc & int) $25,755 $26,013 $26,273 $88,288 $95,876 Proposed Revenue Increases $508,251 $3,089,186 $4,980,146 $6,578,749 $7,976,703 Total Revenue $6,694,626 $9,340,259 $11,202,075 $12,862,693 $14,268,235 Operating Expenses
Personnel $2,053,371 $2,367,641 $2,557,052 $2,761,616 $2,982,545 Maintenance and Operations $1,854,700 $1,954,935 $2,058,082 $2,128,491 $2,198,471 Fixed Water Purchases $427,127 $456,039 $483,721 $512,059 $542,111 Volumetric Water Purchases $2,033,990 $2,077,022 $1,973,388 $2,069,375 $2,171,009 Total Expenses $6,369,188 $6,855,637 $7,072,243 $7,471,541 $7,894,136 Current Debt Service $541,416 $529,364 $526,647 $520,603 $420,167 Proposed Debt Service $0 $845,669 $1,371,223 $1,956,686 $1,956,686 Net Yearly Cashflow* ($215,978) $1,109,589 $2,231,963 $2,913,864 $3,997,247 Rate Funded Capital $1,523,863 $0 $1,187,158 $0 $4,872,500 Net Cashflow after Capital ($1,739,841) $1,109,589 $1,044,805 $2,913,864 ($875,253) *Does not include millions in needed capital investment Water Financial Outlook with Revenue Increases
25 Water Financial Plan
• The reserves are temporarily high
in FY 2027 & 2028 because debt is
funding capital
26 Average Monthly Water Cost Impacts
27 Average Monthly Water Cost Impacts
28 29
Wastewater
Financial Plan &
Proposed Rates
Wastewater FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 Rate Revenues $2,213,306 $2,213,306 $2,213,306 $2,213,306 $2,213,306 Other Revenue (misc & int) $127,760 $51,500 $31,764 $32,082 $32,403 Proposed Revenue Increases $0 $0 $0 $0 $0
Total Revenue $2,341,066 $2,264,807 $2,245,070 $2,245,388 $2,245,709 Expenses
Personnel $1,250,518 $1,500,559 $1,620,604 $1,750,253 $1,890,273 Maintenance and Operations $1,010,720 $1,061,256 $1,114,319 $1,147,748 $1,182,181 Total Expenses $2,261,238 $2,561,815 $2,734,923 $2,898,001 $3,072,454 Current Debt Service $545,583 $545,623 $545,183 $544,263 $542,863 Proposed Debt Service $0 $0 $0 $0 $0
Net Yearly Cashflow* ($465,755) ($842,632) ($1,035,035) ($1,196,876) ($1,369,608) Rate Funded Capital $3,350,412 $530,000 $721,500 $8,395,000 $4,956,000 Net Yearly Cashflow ($3,816,167) ($1,372,632) ($1,756,535) ($9,591,876) ($6,325,608) *Does not include millions in needed capital investment Wastewater Utility Costs Exceed Revenue
30 Wastewater Financial Health without Rate
Increases
• Not meeting debt coverage
requirements; need 1.2x
• Will quickly deplete reserves
without revenue increases
31 Wastewater Reserves
• Same targets as water
• Plan for Reserve target ≈ $1M
32 Capital Improvement Projects - Wastewater
33 Capital Improvement
Projects
FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028
Total $3,350,412 $500,000 $650,000 $7,300,000 $4,200,000 Sample Project List
• Sewer Mainline and Manhole Repairs
• Pump Station #35
• Boeing/Sunset Aquatic/Adolfo Lopez Pump Station Improvements IIlustrates dip in FYE 25/26 in CIP due to lack of funding.

Wastewater Financial Plan
34 Why?
1) Needed to meet debt coverage ratios so the City can issue debt to fund essential capital projects
2) Keep up with inflation
FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028
April 1, 2024 Jan 1, 2025 Jan 1, 2026 Jan 1, 2027 Jan 1, 2028 Additional Revenue $193k $1.13M $1.84M $2.48M $2.94M
Market Debt Issuance $14M
Wastewater Financial Outlook with Revenue
Increases
35 Wastewater FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 Rate Revenues $2,213,306 $2,213,306 $2,213,306 $2,213,306 $2,213,306 Other Revenue (misc & int) $130,665 $74,396 $73,529 $82,143 $99,647 Proposed Revenue Increases $193,664 $1,133,213 $1,843,750 $2,482,320 $2,943,285 Total Revenue $2,537,635 $3,420,915 $4,130,585 $4,777,770 $5,256,238 Expenses
Personnel $1,250,518 $1,500,559 $1,620,604 $1,750,253 $1,890,273 Maintenance and Operations $1,010,720 $1,061,256 $1,114,319 $1,147,748 $1,182,181 Total Expenses $2,261,238 $2,561,815 $2,734,923 $2,898,001 $3,072,454 Current Debt Service $545,583 $545,623 $545,183 $544,263 $542,863 Proposed Debt Service $0 $0 $0 $910,720 $910,720
Net Yearly Cashflow* ($269,186) $313,476 $850,479 $424,786 $730,202 Rate Funded Capital $3,350,412 $530,000 $721,500 $0 $0
Net Yearly Cashflow* ($3,619,598) ($216,524) $128,979 $424,786 $730,202 *Does not include millions in needed capital investment Financial Plan
• Debt coverage is driving
the rate increases, not so
much reserve balances
36 Proposed 5-Year Wastewater Rates
37 Wastewater Current 4/1/2024 1/1/2025 1/1/2026 1/1/2027 1/1/2028 Fixed Charges
Single Family Residential $24.02 $32.43 $40.21 $47.85 $54.07 $57.85 Multi-Family Residential $0.61 $0.82 $1.02 $1.22 $1.37 $1.47 Commercial $0.61 $0.82 $1.02 $1.22 $1.37 $1.47
City $0.61 $0.82 $1.02 $1.22 $1.37 $1.47
Leisure World - Fixed Charge $0.61 $0.82 $1.02 $1.22 $1.37 $1.47 Leisure World - Flat Rate $1,099.03 $1,483.69 $1,839.78 $2,189.33 $2,473.95 $2,647.12 Aquatic Park - Sewer Service Equity Charge $498.75 $673.31 $834.91 $993.54 $1,122.70 $1,201.29 Aquatic Park - Sewer Capital Equity Charge $661.00 $892.35 $1,106.51 $1,316.75 $1,487.93 $1,592.08 Navy - Sewer Meter $0.61 $0.82 $1.02 $1.22 $1.37 $1.47
Volumetric Rates ($ / hcf)
Multi-Family Residential $4.00 $5.40 $6.70 $7.97 $9.00 $9.63 Commercial $4.00 $5.40 $6.70 $7.97 $9.00 $9.63
City $4.00 $5.40 $6.70 $7.97 $9.00 $9.63
Leisure World $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Navy - Sewer Meter $0.24 $0.32 $0.40 $0.48 $0.54 $0.58
Average Wastewater Cost Impacts
38 Average Wastewater Cost Impacts
39 40
Total Cost Impacts -
Water and Wastewater
Average Cost Impacts - Water and Wastewater
41 Average Cost Impacts - Water and Wastewater
42 Financial Assistance Programs
• City Payment Programs
› Criteria-based qualifications
› Contact Utility Billing Division at [email protected] 43 • California Financial Assistance Programs
› Low Income Household Water Assistance Program (LIHWAP) › Administered by Department of Community Services and
Development (CSD)
› www.csd.ca.gov/lihwap
44 Communications and
Outreach
Proposition 218 Procedural Requirements

1. IDENTIFY PARCELS subject to the change

3. PROVIDE WRITTEN NOTICE to all record owners including the amount, basis upon which the amount was calculated, reason for the change, and the date/time/ location of a public hearing

4. HOLD A PUBLIC HEARING no less than 45 days from mailing the notice, consider all protests to the change - if a majority of property owners and customers protest, the change will not be adopted at that time

2. CALCULATE the amount of the change to be imposed
45 • Rate Study Website
• Frequently Asked Questions
• Short Explainer Video
• News Releases
• Social Media Content
• Prop 218 Notification
• Rate Study Open House
46 Public Information
www.2023utilityratestudy.sealbeachca.gov
47 Community Engagement
Meeting/Event Date Time Topic
Informational Webinar Thursday, Nov. 30 6-7:30 p.m.

Overview of City water and sewer utilities,
how rates are determined, legal rate setting
in California
City Council Meeting Monday, Dec. 11 7 p.m. City Council to consider Financial Plan and rate updates
Issue Prop 218 Notice Tentatively Dec. 28
Written notice of the public hearing,
proposed rate adjustments, basis upon
which the rate adjustments were calculated,
reasons for the adjustments, and public right
to protest
Rate Study
Community
Open House
Thursday, Jan. 18, 2024 6-8 p.m.

Utility customers and community members
are invited to meet with staff and financial
experts about utility services and proposed
rates
Public Hearing Tentatively Feb. 12, 2024 7 p.m. City Council to consider proposed rate adjustments
Rates Implemented Tentatively April 2024
Summary
• The utilities are not meeting debt coverage ratios
› Makes it difficult to issue debt to fund needed capital reinvestment • Inflation, lower water use, and revised capital needs have significantly impacted the cost of providing these critical water and wastewater services • Proposed rate increases will restore the utilities’ financial health allowing the City to continue to secure and deliver safe, reliable water and wastewater services • These services receive no revenue from tax dollars. The funds we collect for these services are used to operate and reinvest in these systems. • Modern, resilient, and reliable water and wastewater systems require investment.

We focus on ensuring the best value and the least impact on our customers. 49 Council Action Recommendations
That the City Council adopt a resolution:

1. Authorizing the City Manager to notify the public of the proposed Water and Sewer Rates in compliance with Proposition 218; and,

2. Setting the Water and Sewer Rate Study Public Hearing date for February 12, 2024.
50 51
Conclusion and
Q&A
52 End of Presentation
(Back Up Slides Follow for
Reference If Needed)
53 Glossary
Agenda Item L

AGENDA STAFF REPORT
DATE: December 11, 2023
TO: Honorable Mayor and City Council
THRU: Jill R. Ingram, City Manager
FROM: Gloria D. Harper, City Clerk
SUBJECT: City Council Reorganization
________________________________________________________________ SUMMARY OF REQUEST:

That the City Council approve reorganization of the City Council and selection of Mayor and Mayor Pro Tempore for 2024.

BACKGROUND AND ANALYSIS:

Annually, the City Council selects one of its members as Mayor and one member as Mayor Pro Tempore. Pursuant to City Charter Section 404, the Mayor shall serve in such capacity at the pleasure of the City Council and the City Council shall also designate a Mayor Pro Tempore. City Charter Section 404 is attached for reference.

ENVIRONMENTAL IMPACT:

There is no environmental impact related to this item.

LEGAL ANALYSIS:

No legal analysis is required for this item.

FINANCIAL IMPACT:

There is no financial impact for this item.

STRATEGIC PLAN:

This item is not applicable to the Strategic Plan.

RECOMMENDATION:

That the City Council approve reorganization of the City Council and selection of Mayor and Mayor Pro Tempore for 2024.

SUBMITTED BY: NOTED AND APPROVED:

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

A. City Charter Section 404

Seal Beach Official Charter
- 5 -

ARTICLE IV

ELECTIVE OFFICERS
SECTION 400. Elective Officers. The elective officers of the City shall consist of five (5) members of the City Council, one (1) elected from each of the five (5) Councilmanic Districts as prescribed in Article V. The terms of elective officers shall be four (4) years and until their respective successors qualify. The term of each elective officer shall commence on the twenty-first (21st) day following his/her election at the time of the completion of the canvass of the election returns. (Amended 1974, 1978, 2006, 2014)
SECTION 401. Eligibility. (Repealed 2002)
SECTION 402. Compensation. Compensation for the members of the City Council shall be established by ordinance in accordance with provisions of Sections 36516 and 36516.5 of the State of California Government Code as such provisions now exist or may thereafter be amended. Each member of the City Council shall receive reimbursement for Council authorized expenses in accordance with provisions of Section 36514.5 and 37201 through 37205 of the State of California Government Code. (Amended 1990)
SECTION 403. Vacancies. A vacancy in any elective office shall be filled in accordance with state law. (Amended 2006)
SECTION 404. City Council. Presiding Officer, Mayor.
a) Upon the completion of the canvass of the election returns of any municipal election at which any member or members of the City Council is or are elected, the City Council shall meet and shall elect one (1) of its members as its presiding officer, who shall have the title of Mayor. The Mayor shall have a voice and vote in all its proceedings. The Mayor shall be the official head of the City for all ceremonial purposes. The Mayor shall also act in a liaison capacity between the City Council and the City Manager, and in such capacity shall advise the City Manager on matters of Council Policy. The Mayor shall perform such other duties consistent with the office as may be prescribed by this Charter or as may be imposed by the City Council. The Mayor shall serve in such capacity at the pleasure of the City Council.
b) Mayor Pro Tempore. At the same time as a Mayor is selected, the City Council shall also designate one (1) of its members as Mayor Pro Tempore, who shall serve in such capacity at the pleasure of

Seal Beach Official Charter
- 6 -
the City Council. The Mayor Pro Tempore shall perform the duties of the Mayor during the Mayor’s absence or disability. (Amended 1974) SECTION 405. Powers Vested in the City Council. All powers of the City shall be vested in the City Council except as otherwise provided in this Charter.

SECTION 406. Interference in Administrative Service. Neither the City Council nor any of its members shall interfere with the execution by the City Manager of his/her powers and duties; or order, directly or indirectly, the appointment by the City Manager or by any of the department heads in the administrative service of the City, of any person to an office or employment or removal therefrom. Except for the purpose of inquiry, the City Council and its members shall deal with the administrative service under the City Manager solely through the City Manager and neither the City Council nor any member thereof shall give orders to any subordinate of the City Manager, either publicly or privately.

SECTION 407. Meetings. The City Council shall hold regular meetings at least once each month in accordance with the Brown Act (California Government Code Section 54950 et seq.), as such statute now exists or may hereafter be amended, at such times, as it shall fix by ordinance or resolution. The City Council may adjourn or re-adjourn any meeting and may call special meetings, in accordance with the Brown Act. If at any time any regular meeting falls on a holiday, such regular meeting may be held thereafter prior to the next regular meeting. (Amended 2002)
SECTION 408. Special Meetings (Repealed 2002 – Superseded by Section 407) SECTION 409. Place of Meeting. All meetings shall be held in such place, as the City Council shall fix by ordinance or resolution, or in such place to which any such meeting may be adjourned and shall be open to the public. If, by reason of fire, flood, or other emergency, it shall be unsafe to meet in the place designated, the meetings will be held for the duration of the emergency at such place as is designated by the Mayor, or if he/she should fail to act, by three (3) members of the City Council.

SECTION 410. Quorum. Proceedings. A majority of the members of the City Council shall constitute a quorum to do business, but a less number may adjourn from time to time. In the absence of all of the members of the City Council from any regular meeting, the City Clerk may declare the same adjourned to a stated day and hour. Notice of a meeting adjourned by less than a quorum or by the Clerk shall be given by the Clerk or may be waived by consent in the same manner as specified in this Charter for the giving or waiving of notice of special meetings of the City Council, but need not specify the matters to be acted upon.

Seal Beach City CouncilDecember 11, 2023

Seal Beach City Council
December 11, 2023