Agenda packet — Seal Beach City Council, February 24, 2025 (part 2 of 2)

2 We were engaged by the City to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the American Institute of Certified Public Accountants. We were not engaged to and did not conduct an examination or review engagement, the objective of which would be the expression of an opinion or conclusion, respectively, on the accompanying Appropriations Limit Schedule.

Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.

We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement.

This report is intended solely for the information and use of the City Council and the management of the City and is not intended to be and should not be used by anyone other than these specified parties. However, this report is a matter of public record and its distribution is not limited.

Santa Ana, California
January 3, 2024
City of Seal Beach
Appropriations Limit Schedule
For the Year Ending June 30, 2024
3 Amount Source
A. Appropriations Limit from FY 2022-2023 35,968,448 $ Prior year appropriation adopted by the City B. Adjustment Factors:

1. Growth in City Population 1.0444 California Department of Finance

2. Per Capita Cost of Living converted to a ratio 1.0072 California Department of Finance

3. Adjustment Factor 1.0519 (B1 * B2)
C. Annual Adjustment Increase 1,867,470 $ {(B3-1)} * A} D. Other Adjustments

1. Loss responsibility (-) N/A -

2. Transfer to private (-) N/A -

3. Transfer to fees (-) N/A -

3. Assumed responsibility (+) N/A -
E. Total Adjustments 37,835,918 $ (C+D)
F. Appropriations Limit FY 2023-2024 37,835,918 $ (A+E) See Accompanying Notes to Appropriations Limit Schedule.

City of Seal Beach
Notes to Appropriations Limit Schedule
For the Year Ending June 30, 2024
4 Note 1 – Purpose of Limited Procedures Review
Under Article XIIIB of the California Constitution (the Gann Spending Limitation Initiative), California governmental agencies are restricted as to the amount of annual appropriations from proceeds of taxes. Effective for years beginning on or after July 1, 1990, under Section 1.5 of Article XIIIB, the annual calculation of the appropriations limit is subject to agreed upon procedures in connection with the annual audit.

Note 2 – Method of Calculation
Under Section 10.5 of Article XIIIB, for fiscal years beginning on or after July 1990, the appropriations limit is required to be calculated based on the limit for the fiscal year 1986-87, adjusted for the inflation and population factors discussed in Notes 3 and 4 below.

Note 3 – Population Factors
A California governmental agency may use as its population factor either the annual percentage change of the jurisdiction’s own population or the annual percentage change in population of the county where the jurisdiction is located. The factor adopted by the City for the year ending June 30, 2024, represents the annual percentage change in population for the City.

Note 4 – Inflation factors
A California governmental agency may use as its inflation factor either the annual percentage change in the 4th quarter per capita personal income (which percentage is supplied by the California Department of Finance) or the percentage change in the local assessment roll from the preceding year due to the change of local nonresidential construction. The factor adopted by the City for the year ending June 30, 2024, represents the annual percentage change in per capital personal income.

Note 5 – Other Adjustments
A California government agency may be required to adjust its appropriations limit when certain events occur, such as the transfer of responsibility for municipal services to, or from, another government agency or private entity. The City had no such adjustments for the year ending June 30, 2024.

Agenda Item E

AGENDA STAFF REPORT
DATE: February 24, 2025
TO: Honorable Mayor and City Council
THRU: Patrick Gallegos, Interim City Manager
FROM: Alexa Smittle, Community Development Director
SUBJECT: Amendment 1 to the Professional Special Counsel Services Agreement with Telecom Law Firm, P.C.
________________________________________________________________ SUMMARY OF REQUEST:

That the City Council adopt Resolution 7617:

1. Approving Amendment 1 to the Professional Special Counsel Services Agreement with Telecom Law Firm, P.C. to approve an increase in compensation of $30,000 for professional legal and general telecommunications services for a revised total not-to-exceed amount of $70,000, and a 12-month extension to expire on June 30, 2026; and,

2. Directing the Interim City Manager to execute Amendment 1 on behalf of the City.

BACKGROUND AND ANALYSIS:

On August 10, 2023, the City entered into a Special Counsel Services (SCS) agreement with Telecom Law Firm, P.C. (TLF) to provide specialized legal services focused on telecommunications law within the city’s wireless facilities.

TLF's expertise has been invaluable in helping the City navigate wireless communications regulations and infrastructure development. The City maintains 11 wireless facilities located on City-owned property, four of which are currently undergoing review with TLF to update lease agreements.

The initial agreement allocated $40,000 for TLF to provide professional legal services in municipal telecommunications law and related issues. The proposed SCS amendment would augment the project scope to support the continued legal services. The amendment would add an additional $30,000 for a total project budget of $70,000. This increase reflects the anticipated demand for additional support for the wireless facilities sites that require modifications. In addition, the amendment would extend the contract expiration date by twelve months, to June 30, 2026.

Page 2 ends

All costs associated with TLF can be recouped directly from the wireless facility leaseholders. This is typically done at the end of a transaction, either through a directly billed fee or through a signing bonus. The City has already recovered all TLF costs associated with completed transactions and will continue to ensure these fees are ultimately paid by the wireless facility leaseholders.

The extended timeline and increased budget will provide the City with the essential support needed for ongoing and future wireless facility lease negotiations.

ENVIRONMENTAL IMPACT:

The proposed Agreement is exempt from the California Environmental Quality Act (“CEQA”) pursuant to Section 15061(b)(3) of the State CEQA Guidelines which states that CEQA only applies to projects that have potential for causing a significant effect on the environment. Approval of the professional services agreement will not have a significant effect on the environment.

LEGAL ANALYSIS:

The City Attorney has reviewed and approved as to form.

FINANCIAL IMPACT:

Adequate funding is available for Fiscal Year 2024-2025 in account 217-300-0377- 51280. The remaining funding requirements will be addressed in the Fiscal Year 2025-2026 Budget.

STRATEGIC PLAN:

This item is not applicable to the Strategic Plan.

RECOMMENDATION:

That the City Council adopt Resolution 7617:

2. Directing the Interim City Manager to execute Amendment 1 on behalf of the City.

Page 3 ends

SUBMITTED BY: NOTED AND APPROVED:

Alexa Smittle Patrick Gallegos
Alexa Smittle, Community
Development Director
Patrick Gallegos, Interim City Manager
Prepared by: Megan Coats, Management Analyst
ATTACHMENTS:

A. Resolution 7617
B. Amendment 1 to the Professional Special Counsel Services Agreement with Telecom Law Firm, P.C.

C. Original Professional Special Counsel Services Agreement with Telecom Law Firm, P.C.

RESOLUTION 7617

A RESOLUTION OF THE SEAL BEACH CITY COUNCIL
APPROVING AND AUTHORIZING AMENDMENT 1 TO THE

PROFESSIONAL SPECIAL COUNSEL SERVICES
AGREEMENT WITH TELECOM LAW FIRM, P.C.

WHEREAS, the City of Seal Beach (City) and Telecom Law Firm, P.C. (Consultant) are parties to that certain Professional Special Counsel Services Agreement dated August 10, 2023, for specialized legal services focused on telecommunications law within the city’s wireless facility sites (collectively the “Agreement”); and, WHEREAS, the City currently maintains 11 wireless facility sites that are undergoing review to ensure compliance; and,
WHEREAS, the initial agreement allocated funding for professional legal services in general municipal law, telecommunications law, and related issues; and, WHEREAS, additional support is required for wireless facility sites for modifications, necessitating an increase in the project budget and an extension of the contract expiration date.

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

Section 1. The City Council hereby approves Amendment 1 to the Professional Special Counsel Services Agreement with Telecom Law Firm, P.C., extending the Term through June 30, 2026, and approving an increase in compensation of $30,000 for professional legal and general telecom services, for a revised total not-to-exceed amount of $70,000.

Section 2. The Council hereby directs the Interim City Manager to execute Amendment 1 on behalf of the City.

PASSED, APPROVED, and ADOPTED by the Seal Beach City Council at a regular meeting held on the 24th day of February 2025 by the following vote:

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

Lisa Landau, 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 7617 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 24th day of February 2025.

Gloria D. Harper, City Clerk

PROFESSIONAL SERVICES AGREEMENT
Amendment 1
for
Special Counsel Services Relating to Telecommunications Law and Related Issues
Between
City of Seal Beach
211 - 8th Street
Seal Beach, CA 90740
&
Telecom Law Firm, P.C.
17252 Hawthorne Blvd., #438
Torrance, CA 90504
This Amendment 1, dated February 24, 2025, amends that certain agreement (Agreement) made as of August 10, 2023 by and between the City of Seal Beach (City), a California charter city, and Telecom Law Firm, P.C. (Special Counsel). 2 of 3

RECITALS
A. City and Special are parties to the Agreement, pursuant to which Special Counsel provides legal services relating to telecommunications law and related issues.

B. On May 14, 2024, City’s City Manager exercised one administration extension to extend the term of the agreement to June 30, 2025.

C. City and Special Counsel wish to amend the Agreement for Special Counsel to continue providing such services through June 30, 2026 and to increase Special Counsel’s not-to-exceed compensation by $30,000.

AMENDMENT NO. 1
NOW, THEREFORE and in consideration of the foregoing and of the mutual covenants and promises herein set forth, the parties agree to amend the Agreement as follows:

Section 1. Section 4 (Term; Extensions) of the Agreement is hereby amended to read as follows:
“Term, Extensions. Unless earlier terminated or extended, the term of this Agreement will be from August 10 . 2023 to and through June 30, 2026. By mutual written agreement, the Parties may extend this agreement for up to three additional one year terms with the first one year extension term commencing on June 30, 2026.”
Section 2. Section 6 (Compensation) of the Agreement is hereby amended to read as follows:
“Compensation. City shall compensate Special Counsel for the performance of the Services at the rates shown on Exhibit " A" up to a maximum of $70, 000. No other compensation for the Services will be allowed except for items covered by subsequent
amendments to this Agreement.”
Section 3. Except as expressly modified or supplemented by this Amendment 1, all other provisions of the Agreement shall remain unaltered and in full force and effect.

Section 4. The person executing this Amendment 1 on behalf of Special Counsel warrants that he or she is fully authorized to execute this Amendment 1 on behalf of said Party, and that by his or her execution, Special Counsel is formally bound to the provisions of this Amendment 1.

AGREEMENT FOR SPECIAL COUNSEL SERVICES
Telecom Law Firm, P.C.]
Ain
THIS AGREEMENT is made and ent red into as of the lJ' day of 2023, and effective as of - iQ , 2023 ( the Effective
Date" 3 y and between the City of Seal Beach (" City"), municipal corporation of the State of California and Telecom Law Firm, P. C. (" Special Counsel") ( collectively, the "Parties").

RECITALS
A. City requires the professional legal services of attorneys who are experienced in general municipal law focused on telecommunications law and related issues.

B. Special Counsel has the necessary experience and history in providing professional legal services and advice related to wired and wireless telecommunications law including, but not limited to, those areas specifically required by the City.

C. The Special Counsel will provide City with transactional and advisory services only; any litigation -related services will require a separate agreement.

D. The Parties intend this to be a privileged legal services agreement between a law firm ( Special Counsel) and its client ( City).

NOW, THEREFORE, in consideration of these recitals and the mutual covenants contained herein, the Parties agree as follows:

AGREEMENT

1. Incorporation. The RECITALS are incorporated into this Agreement by this reference.

2. Scope of Work. City retains Special Counsel to perform, and Special Counsel agrees to render, those services associated with telecommunications law and related issues ( the " Services") in accordance with this Agreement' s terms and conditions. Special Counsel designates Dr. Jonathan L. Kramer ( CA SBN 244074) and Mr. Robert C. May III ( CA SBN 291483) as the Attorneys jointly responsible to direct or perform this Scope of Work.

3. Standard of Performance. While performing the Services, Special Counsel will exercise the reasonable professional care and skill customarily exercised by reputable members of the California State Bar practicing in telecommunications law related to wireless facilities including leasing, fiber optic networks, two-way radio networks, point- to-point microwave systems, and construction, municipal operations, and enforcements related to those services, and will use reasonable diligence and judgment while exercising its professional skill and expertise.

4. Term Extensions. Unless earlier terminated or extended, the term of this Agreement will be from August 10 . 2023 to and through June 30, 2024. By mutual written agreement, the Parties may extend this agreement for up to three additional one year terms with the first one year extension term commencing on July 1, 2024.

5. Time is ofthe Essence. Time is of the essence for each and every provision of this Agreement.

6. Compensation. City shall compensate Special Counsel for the performance of the Services at the rates shown on Exhibit " A" up to a maximum of $40, 000. No other compensation for the Services will be allowed except for items covered by subsequent amendments to this Agreement.

T. Reimbursable Expenses. Special Counsel shall be entitled to reimbursement for all reasonable and necessary expenses incurred from outside vendors related to performance of the Services. Unless agreed upon by Special Council and City, reimbursable expenses exclude electronic legal research, bill preparation and presentation, and general overhead costs.

8. Advancement of Costs. Special Counsel will advance expenses and costs incurred on behalf of the City under this Agreement in an amount not exceeding $ 500 per month.

If costs will exceed $500 per month, those costs shall be paid directly by City or shall be advanced to Special Counsel pursuant to a separate letter agreement.

9. Payment for Services. Special Counsel shall submit itemized monthly invoices to the City accounting for the Services provided and costs incurred pursuant to the terms of this Agreement. Each monthly invoice shall bill in one- tenth ( 1110) hour increments and shall include the total hours performed to date. Minimum billing requirements are unacceptable to the City and invoice shall charge only for actual time spent. Payment will occur only after receipt by City of invoices sufficiently detailed that clearly set forth by date, the type of work performed, the specific subject of work performed, or legal research performed, and the time spent on a task.

City shall make payment to Special Counsel within thirty ( 30) days of receipt of the invoice, except for those specific items on the invoice which are contested or questioned and returned by City, with written explanation, within thirty ( 30) days of receipt of the invoice. Special Counsel shall provide to City, a written response to any statement contested or questioned and further, upon request of City, provide City with any and all documents related to the service or costs. No charge shall be made for time expended in providing this information to the City.

Special Counsel shall invoice Client monthly for the Services and costs incurred.

The form of invoice shall include a cover summary sheet containing only the "attorney services" and the amount being billed therefore; the " costs advanced" and the amount being billed therefore; and a total for all services and costs invoiced. Attached to the summary sheet shall be the detailed backup information which, as to " attorney services", sets forth the dates services were performed; the initials of the attorney performing said services; the hourly rate attributable thereto; the hours or minutes being invoiced, and the total invoiced costs of attorney services. As to " costs advanced', the detailed back up information shall set forth the dates the costs were incurred, the type of cost incurred; and the total of advance costs incurred.

10. Status of Special Counsel. Special Counsel will perform the Services in Special Counsel' s own way as an independent contractor and in pursuit of Special Counsel' s independent calling, and not as an employee of City. The persons used by Special Counsel to provide services under this Agreement will not be considered employees of City for any purposes.

The payment made to Special Counsel pursuant to the Agreement will be the full and complete compensation to which Special Counsel is entitled. City will not make any federal or state tax withholdings on behalf of Special Counsel or its agents, employees, or subcontractors. 2 contributions on behalf of Special Counsel or its employees or subcontractors. Special Counsel agrees to indemnify City within thirty ( 30) days for any tax, retirement contribution, social security, overtime payment, unemployment payment or workers' compensation payment, including, but not limited to, those based on any provision of the Federal Affordable Care Act which City may be required to make on behalf of Special Counsel or any agent, employee, or subcontractor of Special Counsel for work done under this Agreement. At the City' s election, City may deduct the indemnification amount from any balance owing to Special Counsel.

11. Subcontracting. Special Counsel will not subcontract any portion of the Services without prior written approval of City Attorney or his/ her designee. If Special Counsel subcontracts any of the Services, Special Counsel will be fully responsible to City for the acts and omissions of Special Counsel' s subcontractor and of the persons either directly or indirectly employed by the subcontractor, as Special Counsel is for the acts and omissions of persons directly employed by Special Counsel. Nothing contained in this Agreement will create any contractual relationship between any subcontractor of Special Counsel and City. Special Counsel will be responsible for payment of subcontractors. Special Counsel will bind every subcontractor and every subcontractor of a subcontractor by the terms of this Agreement applicable to Special Counsel' s work unless specifically noted to the contrary in the subcontract and approved in writing by City.

12. Other Special Counsels. The City reserves the right to employ other special counsels in connection with the Services.

13. Indemnification. Special Counsel will indemnify and hold harmless City and its officers, agents, employees and volunteers from and against all claims, damages, losses and expenses including attorney fees arising out of the performance of the Services to the extent they are caused by the willful misconduct or negligent act or omission of the Special Counsel, any subcontractor, anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable.

The Parties expressly agree that any reasonable payment, attorney' s fee, cost or expense City incurs or makes to or on behalf of an injured employee under the City's selfadministered workers' compensation is included as a loss, expense or cost for the purposes of this section to the extent such injury is caused by willful misconduct or negligent act or omission of Special Counsel, and that this section will survive the expiration or early termination of the Agreement.

14. Insurance. Special Counsel will obtain and maintain for the duration of the Agreement and any and all amendments, insurance against claims for injuries to persons or damage to property which may arise out of or in connection with performance of the Services by Special Counsel or Special Counsel' s agents, representatives, employees or subcontractors. The insurance will be obtained from an insurance carrier admitted and authorized to do business in the State of California. The insurance carrier is required to have a current Best' s Key Rating of not less than " A: VlU'

13. 1 Coverages and Limits. Special Counsel will maintain the types of coverages and minimum limits indicated below, unless Risk Manager or City Manager, in consultation with the City Attorney approves a lower amount. These minimum amounts of coverage will not constitute any limitations or cap on Special Counsel' s indemnification obligations under this Agreement. City, its officers, agents, volunteers and employees make no representation that the limits of the insurance specified to be carried by Special Counsel pursuant 3 to this Agreement are adequate to protect Special Counsel. If Special Counsel believes that any required insurance coverage is inadequate, Special Counsel will obtain such additional insurance coverage, as Special Counsel deems adequate, at Special Counsel' s sole expense.

13. 1. 1 Commercial General Liability Insurance $ 1, 000,000 combined single -limit per occurrence for bodily injury, personal injury and property damage. If the submitted policies contain aggregate limits, general aggregate limits will apply separately to the work under this Agreement or the general aggregate will be twice the required per occurrence limit.

13. 1. 2 Automobile Liability. $ 1, 000, 000 combined single -limit per accident for bodily injury and property damage.

13. 1. 3 Workers' Compensation and Employer' s Liabiliy. Workers' Compensation limits as required by the California Labor Code and Employer' s Liability limits of 1, 000,000 per accident for bodily injury. Workers' Compensation and Employer' s Liability insurance will not be required if Special Counsel has no employees and provides, to City' s satisfaction, a declaration stating this.

13. 1. 4 Professional Liability. Errors and omissions liability appropriate to Special Counsel' s profession with limits of not less than $ 1, 000,000 per claim.

13. 2 Additional Provisions. Special Counsel will ensure that the policies of insurance required under this Agreement contain, or are endorsed to contain, the following provisions:

13.2. 1 For Commercial General Liability Insurance, City, its officers, agents, volunteers and employees will be named as additional insureds.

13. 2. 2 Special Counsel will obtain occurrence coverage, excluding Professional Liability, which will be written as claims -made coverage.

13. 2. 3 This insurance will be in force during the life of the Agreement and any extensions of it and will not be canceled without thirty ( 30) days prior written notice to City sent pursuant to the notice provisions of this Agreement.

13. 3 Providing Certificates of Insurance and Endorsements Prior to City' s execution of this Agreement, Special Counsel will furnish certificates of insurance and endorsements to City.

13. 4 Failure to Maintain Coverage. If Special Counsel fails to maintain any of these insurance coverages, then City will have the option to declare Special Counsel in breach, or may purchase replacement insurance or pay the premiums that are due on existing policies in order to maintain the required coverages. Special Counsel is responsible for any payments made by City to obtain or maintain insurance and City may collect these payments from Special Counsel or deduct the amount paid from any sums due Special Counsel under this Agreement.

13. 5 Submission of Insurance Policies. City reserves the right to require, at any time, complete and certified copies of any or all required insurance policies and endorsements.
4 13. 6 Primary Coverage. For any claims related to the Services and this Agreement, the Special Counsel's insurance coverage will be primary insurance with respect to City, its officers, agents, volunteers and employees. Any insurance or self-insurance maintained by City for itself, its officers, agents, volunteers and employees, will be in excess of Special Counsel' s insurance and not contributory with it.

13. 7 Reduction in Coverage/ Material Changes. Special Counsel will notify City thirty ( 30) days prior to any reduction in any of the insurance coverage required pursuant to this Agreement or any material changes to the respective insurance policies.

15. Conflict Waiver. Actual or possible conflict sometimes arises between existing or potential clients. Special Counsel may be required to ask for a conflict waiver in that event. Special Counsel asks for City' s understanding and cooperation if Special Counsel requests a conflict waiver in order to undertake or continue representation of another client in manner that will not be specifically detrimental or adverse to City.

16. Maintenance of Records. Special Counsel will maintain complete and accurate records with respect to costs incurred under this Agreement. All such records will be clearly identifiable. Special Counsel will allow a representative of City during normal business hours to examine, audit, and make transcripts or copies of such records and any other such documents created pursuant to this Agreement. Special Counsel will allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period of three ( 3) years from the date of final payment under this Agreement.

17. Ownership of Documents. All work product produced by Special Counsel or its agents, employees, and subcontractors pursuant to this Agreement is the property of City.

Special Counsel will provide City with the final version of all briefs, filings, legal memos and work product produced by Special Counsel within a reasonable time, not to exceed ten ( 10) days, after the work product is made final. In the event this Agreement is terminated, all work product produced by Special Counsel or its agents, employees and subcontractors pursuant to this Agreement will be delivered to City pursuant to the termination clause of this Agreement. Special Counsel will have the right to make copies of the work product for Special Counsel' s records.

18. Notices. The name of the persons who are authorized to give written notices or to receive written notice on behalf of City and on behalf of Special Counsel under this Agreement.

For City:

City of Seal Beach
Attn: OvW M"
211 Eighth Street
Seal Beach, CA 90740
For Special Counsel:

Telecom Law Firm, P. C.

Attn: CLIENT NOTICES
3570 Camino del Rio N., Suite 102
San Diego, CA 92108
Except as otherwise stated, all notices to be provided or that may be provided under this Agreement must be in writing and delivered by regular or certified mail. Notices are effective upon actual receipt or actual rejection. Each party will notify the other immediately of any changes of address that would require any notice or delivery to be directed to another address. 5 19. Avoidance of Conflict of Interest. Special Counsel warrants that it has no known financial interest in the subject matter of this Agreement, other than the compensation to be provided for the Services. Special Counsel further warrants that it will comply with all California State Bar Rules of Professional Conduct, including those relating to interests adverse to a client and representing adverse interests.

20. General Compliance with Laws. Special Counsel will keep fully informed of federal, state and local laws and ordinances and regulations which in any manner affect those employed by Special Counsel, or in any way affect the performance of the Services by Special Counsel. Special Counsel will at all times observe and comply with these laws, ordinances, and regulations and will be responsible for the compliance of the Services with all applicable laws, ordinances and regulations.

21. Discrimination and Harassment Prohibited. Special Counsel will comply with all applicable local, state and federal laws and regulations prohibiting discrimination and harassment.

22. Termination of Services. City may terminate Services at any time by delivery to Special Counsel of written notice. After receiving such notice, Special Counsel will cease providing the Services. Special Counsel will cooperate with City in the orderly transfer of all related files and records to City or City' s new counsel.

Special Counsel may terminate the Services at any time with City' s consent or for good cause. Good cause exists if (a) any statement is not paid within sixty ( 60) days of its date; b) City fails to meet any other obligation under this Agreement and continue in that failure for fifteen ( 15) days after Special Counsel send written notice to City; ( c) City has misrepresented or failed to disclose material facts to Special Counsel, refused to cooperate with Special Counsel, refused to follow Special Counsel' s advice on a material mater, or otherwise made Special Counsel' s representation unreasonably difficult; or ( d) any other circumstance exists in which ethical rules of the legal profession mandate or permit Special Counsel' s termination, including situations where a conflict of interest arises.

Termination of the Services, whether by City or by Special Counsel, will not relieve the obligation of City to pay for the Services rendered and costs incurred before the Services formally ceased.

23. Covenants Against Contingent Fees. Special Counsel warrants that Special Counsel has not employed or retained any company or person, other than a bona fide employee working for Special Counsel, to solicit or secure this Agreement, and that Special Counsel has not paid or agreed to pay any elected official or employee of City, nor any company or person.

24. Claims and Lawsuits. By signing this Agreement, Special Counsel agrees that any Agreement claim submitted to City must be asserted as part of the Agreement process as set forth in this Agreement and not in anticipation of litigation or in conjunction with litigation.

Special Counsel acknowledges that if a false claim is submitted to City by Special Counsel, it may be considered fraud and Special Counsel may be subject to criminal prosecution. Special Counsel acknowledges that California Government Code sections 12650 et seq., the False Claims Act applies to this Agreement and, provides for civil penalties where a person knowingly submits a false claim to a public entity.

C.1

25. Jurisdiction and Venue. Any action at law or in equity brought by either of the Parties for the purpose of enforcing a right or rights provided for by this Agreement will be tried in a court of competent jurisdiction in the County of Orange, State of California, and the Parties waive all provisions of law providing for a change of venue in these proceedings to any other county.

26. Successors and Assigns. It is mutually understood and agreed that this Agreement will be binding upon the Parties and their respective successors. Neither this Agreement nor any part of it nor any monies due or to become due under it may be assigned by Special Counsel without the prior consent of City. Notwithstanding the prior sentence, Special Counsel expects to reform itself into a limited liability partnership or other new lawful association of lawyers during the term of this Agreement. So long as Dr. Jonathan L. Kramer and Mr. Robert May III remain the controlling principals of the reformed entity, upon written notice of such reformation to City by Special Counsel, City shall approve the assignment of this agreement to the new entity under the terms and conditions set forth herein.

27. Paragraph Headings. Paragraph headings as used herein are for convenience only and will not be deemed to be a part of such paragraphs and will not be construed to change the meaning thereof.
i

28. Entire Agreement. This Agreement embodies the entire Agreement and understanding between the Parties relating to the subject matter of it. In case of conflict, the terms of this Agreement supersede any and all prior written or oral agreement, order or understanding.

Neither this Agreement nor any of its provisions may be amended, modified, waived or discharged except in writing signed by both Parties.

Balance of page intentionally left blank]
7 29. Authority. The individuals executing this Agreement and the instruments referenced in it on behalf of a Party represents and warrants to the other Party that the signer has the legal power, right and actual authority to bind its Party to the terms and conditions of this Agreement.

IT IS SO AGREED by
SPECIAL COUNSEL:

Telecom Law Firm, P. C.

By:

DI Jonathan L. Kramer, Esq.
ident and Senior Partner

1.1 CITY:.

City of Seal Beach, California
Was1 61a, Me, 1",
iii
Mir
ATTEST:

By:

Gloria D.

APPROVED AS TO FORM: ' iLUUN
By:

Nicholas Ghirelli, Esq , City Attorney
GENERAL TELECOM SERVICES]
EXHIBIT " A"
Discounted Public Agency Hurly Work Fees
Partners $ 350. 00 per hour
Senior Associate Attorneys $ 300. 00 per hour
Associate Attorneys/ Of Counsels $ 280. 00 per hour
Paralegals $ 120. 00 per hour
Legal Assistants $ 70. 00 per hour
All time billed in 10 -minute increments.

Travel Time portal to portal is billed at 60% of the hourly rate shown above.

Expenses billed at cost.

Each of the hourly rates shown in this Exhibit A automatically increase by three percent ( 3%) upon each anniversary of the Effective Date of this Agreement.

END OF EXHIBIT A]
Agenda Item F

AGENDA STAFF REPORT
DATE: February 24, 2025
TO: Honorable Mayor and City Council
THRU: Patrick Gallegos, Interim City Manager
FROM: Iris Lee, Director of Public Works
SUBJECT: Approving the FY 2025-2026 West Orange County Water Board Budget
________________________________________________________________ SUMMARY OF REQUEST:

That the City Council adopt Resolution 7618 approving the FY 2025-2026 West Orange County Water Board budget of $1,683,800, of which the City’s proportionate agency contribution is $286,771.

BACKGROUND AND ANALYSIS:

The West Orange County Water Board (WOCWB) is a joint powers authority comprised of the Cities of Garden Grove, Huntington Beach, Westminster, and Seal Beach. WOCWB owns and operates the OC-9 and OC-35 pipelines for the purpose of importing water from the Municipal Water District of Orange County (MWDOC) and transporting it to the member cities.

The proposed FY 2025-2026 WOCWB budget is $1,683,800. The City’s proportionate contribution is $286,771, which includes the operating cost and debt service payments for the OC-35 realignment project reimbursement agreement with Orange County Transportation Authority (OCTA).

FY 2025-2026 Budget
Operating Cost $169,283
OC-35 Relocation Payment $117,488
TOTAL $286,771
The operating cost reflects a $215 decrease compared to the FY 2024-2025 budget; however, the OC-35 Relocation Payment is anticipated to increase by $20,000 due to fluctuations in interest rates. The loan interest rates are equal to the State of California Surplus Money Investment Fund (SMIF).

All member cities must approve the WOCWB budget prior to April 16, 2025.

Page 2 ends

ENVIRONMENTAL IMPACT:

This item is not subject to the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) of the state CEQA Guidelines because it can be seen with certainty that adoption of the FY 2025-2026 WOCWB budget will not have a significant effect on the environment.

LEGAL ANALYSIS:

The City Attorney has approved the resolution as to form.

FINANCIAL IMPACT:

The City’s proportionate share of $286,771 will be budgeted into the FY 2025-2026 Water Maintenance and Operations Budget.

STRATEGIC PLAN:

This item is not applicable to the Strategic Plan.

RECOMMENDATION:

That the City Council adopt Resolution 7618 approving the FY 2025-2026 West Orange County Water Board budget of $1,683,800, of which the City’s proportionate agency contribution is $286,771.

SUBMITTED BY: NOTED AND APPROVED:

Iris Lee Patrick Gallegos
Iris Lee, Director of Public Works Patrick Gallegos, Interim City Manager ATTACHMENTS:

A. Resolution 7618
B. FY 2025-2026 WOCWB Budget
RESOLUTION 7618

A RESOLUTION OF THE SEAL BEACH CITY COUNCIL

APPROVING THE WEST ORANGE COUNTY WATER
BOARD FISCAL YEAR 2025-26 BUDGET
WHEREAS, the City is a member of the West Orange County Water Board (WOCWB) joint powers authority; and,
WHEREAS, the City jointly owns the WOCWB water pipeline conveyance system with the Cities of Garden Grove, Huntington Beach, and Westminster; and, WHEREAS, the FY 2025-26 WOCWB budget is $1,683,800, of which the City’s proportionate agency contribution is $286,771.

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

Section 1. The City Council hereby approves the proposed FY 2025-26 West Orange County Water Board budget of $1,683,800, of which the City’s proportionate agency contribution is $286,771.

PASSED, APPROVED AND ADOPTED by the Seal Beach City Council at a regular meeting held on the 24th day of February 2025 by the following vote:

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

Lisa Landau, 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 7618 on file in the office of the City Clerk, passed, approved, and adopted by the Seal Beach City Council at a regular meeting held on the 24th day of February 2025.

Gloria D. Harper, City Clerk
FISCAL YEAR 2025/26 PROPOSED BUDGET

AGENCY CONTRIBUTIONS

ACCOUNT NUMBER AGENCY OWNERSHIP

PERENTAGE
FY 25/26 COST
50800508.46610 Huntington Beach 56.1 $664,112
50800508.46620 Garden Grove 4.2 $49,720
50800508.46630 Seal Beach 14.3 $169,283
50800508.46640 Westminster 25.4 $300,685
Totals 100.0 $1,183,800
50800508.46610 Huntington Beach 56.1 $382,512
50800508.46620 Garden Grove* 4.2 $0
50800508.46630 Seal Beach 14.3 $117,488
50800508.46640 Westminster* 25.4 $0
Totals 100.0 $500,000
50800508.46610 Huntington Beach 56.1 $1,046,624
50800508.46620 Garden Grove* 4.2 $49,720
50800508.46630 Seal Beach 14.3 $286,771
50800508.46640 Westminster* 25.4 $300,685
Total Budget $1,683,800
Operating Budget (Including Cathodic Protection)
Sixth Year OC-35 Relocation Project Loan Payment
Total Adopted Budget
*Garden Grove and Westminster have paid off their portions of the loan January 9, 2025
Agenda Item G

AGENDA STAFF REPORT
DATE: February 24, 2025
TO: Honorable Mayor and City Council
THRU: Patrick Gallegos, Interim City Manager
FROM: Iris Lee, Director of Public Works
SUBJECT: Notice of Completion for the North Seal Beach Community Center, CIP BG2501
________________________________________________________________ SUMMARY OF REQUEST:

That the City Council adopt Resolution 7619:

1. Accepting the North Seal Beach Community Center Project, by MDJ Management, LLC in the amount of $404,023.76; and,

2. Directing the City Clerk to file a “Notice of Completion” with the Orange County Clerk-Recorder within 15 days from the date of acceptance and to release retention 35 days after recordation of the Notice of Completion contingent upon no claims being filed on the Project.

BACKGROUND AND ANALYSIS:

On January 22, 2024, the City Council adopted Resolution 7481, approving the application for grant funds through the Community Development Block Grant (CDBG) program, to apply upgrades to the North Seal Beach Community Center Project, CIP BG2501 (Project), and to accept any funds awarded through the program.

On August 12, 2024, the City Council adopted Resolution 7553, awarding a Public Works Agreement to MDJ Management, LLC (MDJ) for the Project. The Project implemented a comprehensive remodel of the North Seal Beach Community Center (NSBCC), addressing issues of accessibility, functionality, and sustainability. The grant funds were used to upgrade interior and exterior lighting to energy-efficient fixtures; reconfigure the kitchen to consolidate appliances for energy efficiency and create a better working space for senior meal programs; enhance operable exterior doors to encourage outdoor usage and extend usable space and capacity; upgrade doors from single pane to dual pane glass for increased efficiency and resiliency; rehabilitate restrooms to include low-flow, water efficient fixtures; and implement Americans with Disabilities Act (ADA) compliant upgrades to increase and improve equitable access for all. ADA

Page 2 ends

improvements included removing the walls around the drinking fountain for wheelchair accessibility, replacing sliding doors with swinging doors to remove trip hazards, and eliminating trip hazards in the entryway.

The Project has been completed and inspected to the satisfaction of the City Engineer. It is requested that the City Council formally accept the Project and direct staff to file a Notice of Completion with the Orange County Clerk Recorder’s Office and release the retention 35 days after recordation of the Notice of Completion contingent upon no claims being filed on the Project.

ENVIRONMENTAL IMPACT:

This item complies with all requirements of the California Environmental Quality Act (CEQA) and is categorically exempt under Section 15301 Class 1 Subsection (d) as the work involves restoration or rehabilitation of existing facilities.

LEGAL ANALYSIS:

The City Attorney has reviewed and approved the resolution as to form.

FINANCIAL IMPACT:

Four change orders were issued due to unforeseen conditions encountered during the project. These included, but were not limited to, the removal of an old air conditioning unit causing the kitchen ceiling to sag, termite repair and treatment for the exterior beams, and the sealing of the fascia along with the installation of downspouts to prevent water from entering the building.

The table below presents the breakdown of the Project’s construction costs:

Description Amount
Total Base Bid $319,221.89
Contract Change Orders $ 84,801.87
Project Cost $ 404,023.76
STRATEGIC PLAN:

This item is not applicable to the Strategic Plan.

RECOMMENDATION:

That the City Council adopt Resolution 7619:

1. Accepting the North Seal Beach Community Center rehabilitation, by MDJ Management, LLC in the amount of $404,023.76; and,

Page 3 ends

SUBMITTED BY: NOTED AND APPROVED:

Iris Lee Patrick Gallegos
Iris Lee, Director of Public Works Patrick Gallegos, Interim City Manager Prepared by: Kathryne Cho, Deputy Director of Public Works/City Engineer ATTACHMENTS:

A. Resolution 7619
B. Notice of Completion
RESOLUTION 7619

A RESOLUTION OF THE SEAL BEACH CITY COUNCIL

ACCEPTING COMPLETION OF THE NORTH SEAL BEACH
COMMUNITY CENTER PROJECT, CIP BG2501, BY MDJ
MANAGEMENT, LLC., AND DIRECTING THE FILING OF A

NOTICE OF COMPLETION FOR THE PROJECT
THE SEAL BEACH CITY COUNCIL DOES HEREBY RESOLVE:

Section 1. The City accepts the completion of the North Seal Beach Community Center Project, CIP BG2501 by MDJ Management, LLC in the amount of $404,023.76; and,
Section 2. The City Clerk is hereby directed to file a “Notice of Completion” for the Project with the Orange County Clerk-Recorder within fifteen (15) days of the date of this resolution and to release retention 35 days after the recordation of the Notice of Completion contingent upon no claims being filed on the Project.

PASSED, APPROVED AND ADOPTED by the Seal Beach City Council at a regular meeting held on the 24th day of February 2025 by the following vote:

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

Lisa Landau, Mayor
ATTEST:

Gloria D. Harper, City Clerk
STATE OF CALIFORNIA }
COUNTY OF ORANGE }
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 7619 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 24th day of February 2025.

Gloria D. Harper, City Clerk

RECORDING REQUESTED BY

AND WHEN RECORDED MAIL TO

CITY OF SEAL BEACH
Attn: City Clerk
211 - 8th Street
Seal Beach, CA 90740
Space of above this line for Recorder’s use.
*** No Recording Fee Pursuant to Government Code Sections 6103 and 27383 ****

NOTICE OF COMPLETION
Notice pursuant to Civil Code Section 9204, must be filed within 15 days after completion.

Notice is hereby given that:

1. The undersigned is owner or corporate officer of the owner of the interest or estate stated below in the property hereinafter described:

2. The full name of the owner is: City of Seal Beach.

3. The address of the owner is: 211 – 8th Street, Seal Beach, CA 90740.

4. The nature of the interest or estate of the owner is: In Fee. The City of Seal Beach.

5. A work of improvement on the property hereinafter is described as substantially completed on December 6, 2024. The work was North Seal Beach Community Center, CIP BG2501.

6. The name of the contractor(s), if any, for such improvement was: MDJ Management, LLC.

7. The date of the Contract Award was August 12, 2024.

8. The property on which said work of improvement was completed in the City of Seal Beach, County of Orange, State of California, and is described as follows: 3333 Saint Cloud Drive, Seal Beach, CA.

Date: _______________
_________________________________________
Iris Lee, Director of Public Works, City of Seal Beach
Signature of owner or corporate officer of owner
named in paragraph 2 or agent.

VERIFICATION
I, the undersigned, say: Iris Lee (Director of Public Works) declarant of the foregoing notice of completion; have read said notice of completion and know the contents thereof; the same is true of my own knowledge.

I declare under penalty of perjury the foregoing is true and correct.

Executed on _____________________, 2025, at Seal Beach, California. (Date of Signature)
_________________________________________
Iris Lee, Director of Public Works, City of Seal Beach
Agenda Item H

AGENDA STAFF REPORT
DATE: March 10, 2025
TO: Honorable Mayor and City Council
THRU: Patrick Gallegos, Interim City Manager
FROM: Iris Lee, Director of Public Works
SUBJECT: Approving and Authorizing Amendment 2 to the
Professional Services Agreement with Raftelis Financial Consultants, Inc. for Water and Wastewater Financial
Planning Services
________________________________________________________________ SUMMARY OF REQUEST:

That the City Council adopt Resolution 7620:

1. Approving Amendment 2 to the Professional Services Agreement with Raftelis Financial Consultants, Inc. dated June 12, 2023, as previously amended by Amendment 1 dated March 25, 2024, to provide additional Water and Wastewater Financial Planning Services; increase compensation for such additional services by $51,527 for a revised total contract not-to-exceed amount of $187,294; and extend the term to December 31, 2025; and,

2. Authorizing and directing the Interim City Manager to execute Amendment 2 on behalf of the City; and,

3. Authorizing the Interim City Manager to approve unforeseen additional work requests, up to the total not-to-exceed amount of $10,000.

BACKGROUND AND ANALYSIS:

The City’s water and sewer utilities are funded by fees collected through adopted water and sewer service charges (Enterprise Funds). The rates that customers pay on their utility bills must fund the operating costs, capital improvements, and reserves. Water and sewer rates must be periodically reviewed to ensure rates are set to provide adequate revenue. These studies are performed in accordance with Proposition 218 requirements.

On February 22, 2021, City Council adopted Resolutions 7114 and 7115 adjusting the water and sewer rates, respectively. These resolutions led to the

Page 2 ends

implementation of five incremental annual rate adjustments, beginning in July 2021, with the final adjustment having occurred in January 2025.

In early 2023 an assessment of the current five-year financial plan was conducted, revealing the need for water and sewer rate adjustments. The assessment identified several key factors impacting the Enterprise Funds’ financial stability and long-term infrastructure needs:

1. Fluctuations in water sales due to erratic weather patterns;

2. Underestimated inflation factors in the original rate structure projections;

3. Increased water purchasing costs;

4. Increased operating and capital expenditures due to labor and material shortages and overall pricing increases;

5. Depletion of cash reserves due to capital spending originally slated to be funded through bond proceeds;

6. Deferred critical capital improvement needs on aging infrastructure.

In response to these findings, City Council adopted Resolution 7416 on June 12, 2023, awarding a Professional Services Agreement to Raftelis Financial Consultants, Inc. (Raftelis) to provide water and wastewater financial planning services in a not-to-exceed amount of $82,415, and authorizing the City Manager to approve additional work requests in the amount of $5,000.

The water and wastewater financial plan and proposed rate adjustment findings were presented to City Council on December 11, 2023. On the same night, City Council adopted Resolution 7472 setting a public hearing date on February 12, 2024, that was subsequently continued to February 26, 2024. At the close of the public hearing, the City Council concluded the pending majority protest proceedings and took no further action to adopt the rate adjustments. City Council directed staff to further examine the rates and re-notice the public pursuant to Proposition 218 at a later date.

Accordingly, City Council adopted Resolution 7500 on March 25, 2024, approving Amendment 1 to the Professional Services Agreement with Raftelis, authorizing the additional services, and increasing compensation by $48,352. As work resumed, it became apparent that a substantial reevaluation was needed to accurately account for updated expenditures and revenue losses, integrate utility account updates, incorporate potential external funding sources to mitigate rate impacts, develop various rate scenarios, and comply with relevant legislation (e.g., AB 755 and AB 2577). The process essentially constitutes the development of a new financial plan, incorporating enhanced outreach efforts aimed at re-engaging the public.

Accordingly, Raftelis submitted a proposal dated January 29, 2025, for the additional support work in the amount of $51,527. Additionally, staff recommends authorizing the Interim City Manager to approve additional work requests in a notto-exceed amount of $10,000.

Page 3 ends

ENVIRONMENTAL IMPACT:

This item is not subject to the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) of the state CEQA Guidelines because it can be seen with certainty that approval of a professional services agreement amendment with Raftelis Financial Consultants, Inc. and will not have a significant effect on the environment.

LEGAL ANALYSIS:

The City Attorney has approved the agreement and resolution as to form.

FINANCIAL IMPACT:

Additional costs associated with Amendment 2 will be expensed from the Water and Sewer operation funds. Sufficient funding for this item is available in the adopted FY 2024-25 Budget.

Description Amount
Water O&M – 501-500-0900-51280 $ 25,763.50
Sewer O&M – 503-500-0925-51280 $ 25,763.50
Contingency – Water O&M – 501-500-0900-51280 $ 5,000.00 Contingency – Sewer O&M – 503-500-0925-51280 $ 5,000.00 Total $ 61,527.00
STRATEGIC PLAN:

This item is not applicable to the Strategic Plan.

RECOMMENDATION:

That the City Council adopt Resolution 7620:

2. Authorizing and directing the Interim City Manager to execute Amendment 2 on behalf of the City; and,

Page 4 ends

3. Authorizing the Interim City Manager to approve unforeseen additional work requests, up to the total not-to-exceed amount of $10,000.

SUBMITTED BY: NOTED AND APPROVED:

Iris Lee Patrick Gallegos
Iris Lee, Director of Public Works Patrick Gallegos, Interim City Manager Prepared by: Sean Sabo, Management Analyst
ATTACHMENTS:

A. Resolution 7620
B. Amendment 2 with Raftelis Financial Consultants, Inc.

C. Amendment 1 with Raftelis Financial Consultants, Inc.

D. Agreement with Raftelis Financial Consultants, Inc.

RESOLUTION 7620

A RESOLUTION OF THE SEAL BEACH CITY COUNCIL

APPROVING AN AUTHORIZING THE INTERIM CITY
MANAGER TO EXECUTE AMENDMENT 2 TO THE

PROFESSIONAL SERVICES AGREEMENT WITH
RAFTELIS FINANCIAL CONSULTANTS, INC. TO PROVIDE

WATER AND WASTEWATER FINANCIAL PLANNING

SERVICES
WHEREAS, the City owns and operates a water system and wastewater system; and, WHEREAS, the water and wastewater systems are funded by utility rate-generated revenues; and,
WHEREAS, the water and wastewater utility rates must be periodically reviewed to ensure they are properly set to fund operations and capital needs; and, WHEREAS, climate conditions, material and labor shortages, and critical infrastructure needs have significantly impacted revenue and expenditures; and, WHEREAS, on June 12, 2023, the City Council adopted Resolution 7416 approving a Professional Services Agreement with Raftelis Financial Consultants, Inc. (Raftelis) to provide water and wastewater financial planning services in the amount of $82,415, and authorizing the City Manager to approve work payment requests in the amount of $5,000; and,
WHEREAS, on March 25, 2024, the City Council adopted Resolution 7500 approving Amendment 1 to the Professional Services Agreement with Raftelis to provide additional support services; increasing Raftelis’s compensation for such services by $48,352, for a revised not-to-exceed amount of $135,767; and,
WHEREAS, the City desires to amend the Agreement with Raftelis to provide additional support services; increase Raftelis’s compensation for such services by $51,527, for a revised not-to-exceed amount of $187,294; authorize the Interim City Manager to approve any unforeseen additional work requests, up to a not-to-exceed amount of $10,000; and extend the term to December 31, 2025.

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

Section 1. The City Council hereby approves Amendment 2 to the Agreement dated June 12, 2023, as previously amended by Amendment 1 dated March 25, 2024 between the City of Seal Beach and Raftelis Financial Consultants, Inc. (i) to authorize Raftelis to provide additional water and wastewater financial planning services; (ii) to increase Raftelis’s compensation by $51,527 for the additional services, for a revised total contract not-to-exceed amount of $187,294; and (iii) to extend the Agreement term to December 31, 2025.

Section 2. The City Council hereby authorizes and directs the Interim City Manager to execute Amendment 2.

Section 3. The City Council hereby authorizes the Interim City Manager to approve unforeseen additional work requests in connection with the Agreement in the cumulative not-to-exceed amount of $10,000.

PASSED, APPROVED, and ADOPTED by the Seal Beach City Council at a regular meeting held on the 10th day of March 2025 by the following vote:

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

Lisa Landau, Mayor
ATTEST:

Gloria D. Harper, City Clerk
STATE OF CALIFORNIA }
COUNTY OF ORANGE }
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 7620 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 10th day of March 2025.

Gloria D. Harper, City Clerk
1 AMENDMENT NO. 2

PROFESSIONAL SERVICES AGREEMENT
for
Water and Wastewater Financial Planning Services
between
City of Seal Beach
211 - 8th Street
Seal Beach, CA 90740
&
Raftelis Financial Consultants, Inc.
227 West Trade Street, Suite 1400
Charlotte, NC 28202
(704) 373-1199
This Amendment No. 2, dated February 24, 2025, amends that certain Professional Services Agreement dated June 12, 2023, as previously amended by Amendment No. 1 by and between the City of Seal Beach , a
California charter city, and Raftelis Financial Consultants, Inc North Carolina corporation.
2 RECITALS
A. City and Consultant are parties to the Agreement, as amended by Amendment No. 1, and previously extended to December 31, 2024, pursuant to which Consultant provides professional water and wastewater financial planning services.

B. City and Consultant wish to amend the Agreement by this Amendment No. 2 to (i) provide additional Water and Wastewater Financial Planning Services; (ii) increase compensation for such additional services by $51,527 for a revised total contract not-to-exceed amount of $187,294; and (iii) extend the term to December 31, 2025.

AMENDMENT NO. 2
NOW, THEREFORE and in consideration of the foregoing and of the mutual covenants and promises herein set forth, the parties agree to amend the Agreement as follows:

Section 1. Subsection 1.1.1 of Section 1.0 (Scope of Services) of the Agreement is hereby amended in its entirety to read as follows:

1.1.1 Consultant shall provide those additional services set forth in the attached Exhibit A-2, which are hereby incorporated by this reference. To the extent there is any conflict between Exhibit A, Exhibit A-1, Exhibit A-2, this Agreement as amended by Amendment No. 1, and this Agreement as amended by Amendment No. 2, this Agreement as amended by the provisions of Amendment No. 2
Section 2. Section 2.0 (Term) of this Agreement is hereby amended to read as follows:

The term of this Agreement was originally effective as of June 12, ) and shall remain in full force and effect until
December 31, 2025, unless sooner terminated as provided in Section 5.0 of this Section 3. Section 3.0 (Consultant
amended in its entirety to read as follow:

3.1. City will pay Consultant in accordance with the hourly rates shown on the fee schedule set forth in Exhibits A, A-1 and A-2 for Services, but in no event will the City pay more than $187,294 (One-Hundred Eighty-Seven Thousand Two Hundred Ninety-Four Dollars and 00/100) for the Term. Any additional work authorized by the City pursuant to Section 1.5 and this subsection will be compensated in accordance with the fee schedule set forth in Exhibits A, A-1, and A-2. The Interim City Manager may approve, in writing, an additional expenditure of up to the not-to-exceed amount of $10,000 for the Term for unforeseen additional work requests.
3 Section 4
through 35.0, inclusive, of the Agreement are hereby modified to include the Agreement dated June 12, 2023, Amendment No. 1 dated March 25, 2024, and this Amendment No. 2 dated February 24, 2025 as if all those terms are fully set forth therein.

Section 5. Except as expressly modified or supplemented by this Amendment No. 2, all other provisions of the Agreement, as amended by Amendment No. 1, shall remain unaltered and in full force and effect. In the event of a conflict between the Agreement, Amendment No. 1, and this Amendment No. 2, the provisions of this Amendment No. 2 shall control.

Section 6. The persons executing this Amendment No. 2 on behalf of Consultant each warrant that he or she is each duly authorized to execute this Amendment No. 2 on behalf of said Party and that by his or her execution, Consultant is formally bound to the provisions of this Amendment No. 2.

5 EXHIBIT A-2
Additional Services
RAFTELIS 1
445 S. Figueroa Street, Suite 1925, Los Angeles, CA 90071 www.raftelis.com
January 29, 2025
Ms. Iris Lee, Public Works Director
City of Seal Beach
211 Eighth Street, Seal Beach, CA 90740
Subject: Water and Wastewater Financial Plan Amendment #2 Dear Mrs. Lee,
This proposal is to complete the Water and Sewer Rate Study.

We previously submitted a contract amendment request to complete the study and raise the contract to the amount shown in line 1 in the table below. We used a portion of this amendment to update the study with additional CIP scenarios. After this (prior) update, the study was postponed. Therefore, funds remain as of our December billing cycle, as shown in line 3 of the below table. Line 2 includes all time to be billed up until the end of December. Line 4 is our estimate to complete the study and line 5 is the net increase to the contract.

The estimated scope to complete the study is discussed below. Since time has passed, we will update the O&M and CIP expenses, reserve balances and customer water use. We will meet with staff to review the financial plan and present results to City Council. Gina DePinto will lead our efforts to:

1. Update the City Website

2. Develop social media calendar and content

3. Develop CIP Project Fact Sheets

4. Develop New Content, Infographics and Presentations,

5. Public Notice Creation,

6. Direct Two Community Engagement Events
A more detailed scope and fee is provided below. We enjoy working with you and your staff and believe it will lead to financially viable utilities.

Sincerely,
Steve Gagnon, PE (AZ)
Vice President
P: 714 351 2013; E: [email protected]
RAFTELIS 2
2025 Seal Beach Water and Sewer Rate Study Completion
Task 1. Update the Financial Plan and Rates
Raftelis will update the financial plan model with the latest O&M expenses, water use, CIP expenses and reserve balances. We will summarize the assumptions in a PowerPoint presentation.

MEETINGS: Meetings are in Task 2
DELIVERABLES: Financial Plan model in Microsoft Excel
Task 2. Review Financial Plan Results with City Staff
Raftelis will update the financial plan model with the latest O&M expenses, water use, CIP expenses and reserve balances. We will summarize the assumptions in a PowerPoint presentation.

MEETINGS: Two web meetings with City Staff
Task 3. As Needed Support for Rate Study Questions
The City received several inquiries and questions during the past two rate studies. Raftelis can assist with answering questions as needed.

MEETINGS: Web meetings if needed
DELIVERABLES: Written responses via email
Task 4. Two City Council Presentations
Raftelis will present study results and answer questions at two City Council meetings. We anticipate the first meeting will be to present results and solicit Council feedback and prepare them to provide direction at the second council meeting.

MEETINGS: Two in-person City Council Meetings
DELIVERABLES: Presentations in PowerPoint
Task 5. Update the Prior Report and Include Text for AB 755 We will update the prior report with the new financial plan and rates and include text to satisfy AB 755 which seeks to quantify the cost to sever the highest water users (top 10% of water users).

MEETINGS: If required
DELIVERABLES: Rate Study report in Microsoft Word
RAFTELIS 3
Task 6. Respond to Objections, Prepare Presentation to Summarize Objections and Responses and Present to City Council
Raftelis will respond to AB2257 objections during the response period. The City will respond directly to objectors if it deems it needs to respond. We assume one round of objections and responses. Raftelis will also summarize the objections and responses, prepare a presentation and present the summary to City Council. We have assumed this City Council meeting will occur separate from the public hearing and that the objection process will end at this meeting. The Council will then advise if clarifications are needed, whether to leave rates as is, or conclude the objection process.

The responses to objections
MEETINGS: Up to three web meetings to discuss responses DELIVERABLES: PowerPoint presentation with summary of objections and responses Task 7. Website Updates and Maintenance
Raftelis will update and maintain the rate study website, which includes regularly reviewing content, design, and functionality to ensure it remains accurate, engaging, and user-friendly. Updates and announcements will be added as the rate study progresses. Collaboration with City staff will ensure the website continues to align with project goals and effectively serves its audience.

MEETINGS: One virtual meeting; may be combined with other tasks DELIVERABLES: Updated microsite and ongoing updates and maintenance Task 8. Develop Social Media Calendar and Content
Raftelis will develop a social media plan to inform and engage the community about the need to adjust water and sewer rates. The task includes developing posts tailored to various platforms that explain complex topics like rate structures, funding needs, and infrastructure improvements in a clear and relatable way. The plan will include a calendar to guide City staff as they plan and schedule posts strategically to align with key milestones, public meetings, and decision points in the study. Content will include using existing videos and FAQs and development of new engaging visuals and infographics to enhance understanding and draw interest. The content should encourage community feedback, address common questions, and highlight the benefits of the study to ensure transparency and build trust with residents.

Beyond the rate study, we encourage the City to employ an ongoing social media campaign to feature projects, initiatives, services, and staff on the job to humanize City government and feature Public Works employees as they strive to ensure high quality, uninterrupted water and sewer services.

MEETINGS: One virtual meeting to review strategy, content, and implementation DELIVERABLES: Social media calendar and draft content
Task 9. Develop CIP Project Fact Sheet(s)
Raftelis will develop a fact sheet highlighting key capital improvement projects to inform customers and consumers about critical infrastructure initiatives. The fact sheet will outline essential details such as project necessity, community benefits, and anticipated budgets and timelines. This tool is vital for building RAFTELIS 4
public understanding and support, especially for projects tied to funding decisions, rate adjustments, and significant community impact. By presenting information in a clear, visually engaging format, the fact sheet fosters transparency and ensures consistent messaging across various communication channels, aiding in effective stakeholder engagement and decision-making. The fact sheet(s) will be designed for digital posting online and for printed handouts.

MEETINGS: One virtual meeting to plan content; City staff to provide content and images DELIVERABLES: A digital and print-ready fact sheet
Task 10. Develop New Content, Infographics, and Presentations Raftelis will develop materials and content to build awareness, engage residents in the process, and address misinformation that can be included on the website and in materials, presentations, social media, and in the Proposition 218 Notice. With input from the City, materials may include two press releases, an Op-Ed, direct mail piece, newsletter content for the City Manager and Council, and a video script to recap the 2023-24 rate study and announce the new process and schedule. Without using a professional videographer/producer, Raftelis will guide City staff to record the brief video update using a smart phone.

MEETINGS: One virtual meeting to review content and plan implementation DELIVERABLES: Two draft press releases, an Op-Ed, direct mail piece, newsletter content for the City Manager and Council, and a video script for City staff to recap the 2023-24 rate study and announce the new process and schedule
Task 11. Proposition 218 Notice Development
Raftelis will develop a redesigned Proposition Hearing to clearly stand apart from the Notice issued in December 2023. The content will include all statutorily required elements, along with strategic communications messages to ensure it properly communicates the need and justification for rate increases and the public is given tools to understand the impacts to their individual bills. Beyond satisfying legal requirements, the goal of the Notice will be to describe the ongoing public process that went into the recommendations and make the case for why adoption is critical and invite customers and residents to participate in the community engagement events.
-to-read design
that will encourage customers and the public to read the information and have a broader understanding of the issues. Our pricing includes the development of a print-ready PDF. The City will assume responsibility for the mailing list, printing, and postage. As envisioned, the Notice will be a folded self-mailer, which will velope.

We budgeted time to include the process for AB2257 objections in the Prop 218 notice.

MEETINGS: Two virtual meetings to discuss and review content DELIVERABLES: Draft and Final Prop 218 Public Notice as printer ready files and a digital PDF for the website
RAFTELIS 5
Task 12. Community Engagement Events (2)
We recommend holding two community engagement events (workshop, meeting, or open house) at neutral locations, such as a library, school, or church instead of in Council Chambers to set a tone of repeat of last year and that the City is going
out to residents instead of asking them to come to you. Additionally, we recommend offering one event on a weeknight and another on a Saturday to accommodate different schedules.

Subject matter experts would present or be available to address topics like rates 101, specific proposed rates, utility operations and infrastructure, bonding and debt finance, state and federal grants and loans, water/wastewater legislation and the regulatory environment, and public and fire safety. Depending on the format and logistics, Raftelis would facilitate Q&A and potentially collect question/comment cards upfront to address questions before breaking into one-on-one conversations, such as open house style.

MEETINGS: Up to three virtual planning meetings, and two in-person outreach events DELIVERABLES: Logistics support, facilitation, FAQs, outreach event materials to include up to six new display posters and comment or survey cards
Proposed Schedule
Action/Task Date (2025)
Update Website and Refresh the Webinar Video January 17 Publicly Announce Restart of Rate Study
(website, social media, press release) January 20
Draft Prop 218 Content DUE February 5
City Council Workshop February 10
City Council Authorization of Prop 218 Process February 24 City and Legal Review/Approval of Prop 218 Content
DUE February 28
Prop 218 Design March 3-11
City Legal Review of Prop 218 Notice DUE March 18
Prop 218: Finalize Notice, Send to Printer March 19-20
Postmark Prop 218 Notice March 28
(latest date to postmark)
RAFTELIS 6
(begin 45-day period)
Community Engagement Event #1 April 23 or 30
(Wednesday)
Community Event #2 April 26 or May 3
(Saturday)
Public Hearing May 12
Effective Date July 1, 2025
RAFTELIS 7
Proposed Fee
Raftelis proposes to complete the scope of work outlined above on a time-and-materials basis for the fee shown below.

The following table shows our proposed fee based on our hourly rate and estimated hours.

PM GD SC MS CS Total

1. Update the Financial Plan & Rates with Revised
Water Use, O&M Expenses and CIP 14 18 32 $9,080

2. Webmeetings to Present Financial Plan Results
and Finalize Rates with City Staff 2 6 6 12 $3,540

3. As Needed Support for Rate Study Questions
and Analysis 6 4 10 $3,130

4. Two City Council Presentations 2 12 4 16 $5,581

5. Update the Prior Report Including AB 755 - The
Cost to Serve High Water Users 14 32 46 $11,950

6. Summarize and Respond to Objections, Present
to City Council for AB2257 at a Separate Meeting 22 3 6 31 $10,615

7. Website Updates and Maintenance 1 6 14 20 $4,350

8. Develop Social Media Calendar and Content 1 1 1 4 8 13 $3,316

9. Develop CIP Project Fact Sheet(s) 1 6 10 16 $3,880

10. Develop New Content, Inforgraphics, and
Presentations 1 12 12 $3,660

11. Propostion 218 Notice Development, Including
Text for AB2257 2 2 8 4 14 28 $6,550

12. Facilitate Community Engagement Events
(incl. Public Hearing) 3 2 12 16 28 $9,641
11 5 89 55 74 18 28 264
$375 $295 $195 $195 $170
$33,375 $16,225 $14,430 $3,510 $4,760 $72,300
$72,300
$2,994
$75,294
Remaining Funds $23,767
Contract Amendment $51,527
SG - Project Manager, Steve Gagnon, PE (AZ)
GD - Communications Staff, Gina DePinto, APR
SC - Staff Consultants
MS - Makenna Sturgeon
CS - Creative Services
Tasks
Virtual
Meetings
Number of
In-Person
Meetings
Total Fees &
Expenses
Total Fees
Total Expenses
Total Fees & Expenses
1 AMENDMENT NO. 1

PROFESSIONAL SERVICES AGREEMENT
for
Water and Wastewater financial Planning Services
between
City of Seal Beach
211 - 8th Street
Seal Beach, CA 90740
&
Raftelis Financial Consultants, Inc.
227 West Trade Street, Suite 1400
Charlotte, NC 28202
(704) 373-1199
This Amendment No. 1, dated March 25, 2024, amends that certain agreement (“Agreement”) dated June 12, 2023, by and between the City of Seal Beach (“City”), a California charter city, and Raftelis Financial Consultants, Inc. (“Consultant”), a North Carolina corporation. 2 RECITALS
A. City and Consultant are parties to the Agreement pursuant to which Consultant provides professional water and wastewater financial planning services.

B. Effective June 12, 2023, City and Consultant entered into an Agreement for Consultant to provide professional water and wastewater financial planning services term ending June 30, 2024.

C. City and Consultant wish to amend the Agreement by this Amendment No. 1 to (i) provide additional Water and Wastewater Financial Planning Services; (ii) increase compensation for such additional services by $48,352 for a revised total contract not-to-exceed amount of $135,767; and (iii) extend the term to December 31, 2024.

AMENDMENT NO. 1
NOW, THEREFORE and in consideration of the foregoing and of the mutual covenants and promises herein set forth, the parties agree to amend the Agreement as follows:

Section 1. Section 1.0 (Scope of Services) of this Agreement is hereby amended to add subsection 1.1.1 to read as follows:
“1.1.1 Consultant shall provide those additional services set forth in the attached Exhibit A-1, which are hereby incorporated by this reference. To the extent there is any conflict between Exhibit A, Exhibit A-1, Exhibit B, and this Agreement as amended by Amendment No. 1, this Agreement as amended by Amendment No. 1 shall control.”
Section 2. Section 2.0 (Term) of this Agreement is hereby amended to read as follows:
“2.1 The term of this Agreement was originally effective as of June 12, 2023 (the “Effective Date”) and shall remain in full force and effect until December 31, 2024, unless sooner terminated as provided in Section 5.0 of this Agreement.”
Section 3. Section 3.0 (Consultant’s Compensation) of the Agreement is hereby amended in its entirety to read as follow:
“3.1. City will pay Consultant in accordance with the hourly rates shown on the fee schedule set forth in Exhibits A and A-1 for Services, but in no event will the City pay more than $135,767 for the Term. Any additional work authorized by the City pursuant to Section 1.5 will be compensated in accordance with the fee schedule set forth in Exhibits A and A-1.”
3 Section 4. All references to the term “Agreement” throughout Sections 1.0 through 35.0, inclusive, of the Agreement are hereby modified to include the Agreement dated June 12, 2023, and this Amendment No. 1 dated March 25, 2024, as if all those terms are fully set forth therein.

Section 5. Except as expressly modified or supplemented by this Amendment No. 1, all other provisions of the Agreement shall remain unaltered and in full force and effect. In the event of a conflict between the provisions of this Amendment No. 1 and the provisions of the Agreement, the provisions of this Amendment No. 1 shall control.

Section 6. The persons executing this Amendment No. 1 on behalf of Consultant each warrant that he or she is each duly authorized to execute this Amendment No. 1 on behalf of said Party and that by his or her execution, Consultant is formally bound to the provisions of this Amendment No. 1
4 IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. 1 to be executed and attested by their proper officers thereunto:

CITY OF SEAL BEACH
By:

Jill R. Ingram, City Manager
Attest:

By:

Gloria D. Harper, City Clerk
Approved as to Form:

By:

Nicholas Ghirelli, City Attorney
CONSULTANT: Raftelis Financial
Consultants, Inc., a North Carolina
corporation
By:

Peiffer A. Brandt
Chief Executive Officer
By:

Chirstine McIntyre
Secretary
(Please note, two signatures required for
corporations pursuant to California
Corporations Code Section 313 from each of
the following categories: (i) the chairperson of
the board, the president or any vice president,
and (ii) the secretary, any assistant secretary,
the chief financial officer or any assistant
treasurer of such corporation.)
cc
Digitally signed by cc
DN: cn=cc gn=cc c=US United States l=US
United States
Reason: I am the author of this document
Location:

Date: 2024-03-12 15:01-04:00
5 EXHIBIT A-1
Additional Services
RAFTELIS 1
445 S. Figueroa Street, Suite 1925, Los Angeles, CA 90071 www.raftelis.com
March 7, 2024
Ms. Iris Lee
Public Works Director
City of Seal Beach
211 Eighth Street
Seal Beach, CA 90740
Subject: Water and Wastewater Financial Plan Amendment #1 Dear Mrs. Lee,
This proposal is to continue and amend the contract for the Water and Wastewater Financial Plan started in June of 2023.

This amendment includes additional work due to the continuation of the study; the scope items are:
1) a Council study session,
2) a future public hearing,
3) time for anticipated additional questions, modeling or presentation efforts, 4) time for the effort to comply with AB 755 if we need to revise the study, 5) edit and redesign the notice to accommodate a folded self-mailer, and assist with noticing procedures, 6) plan and implement up to two community meetings/open houses, 7) update materials (website, press releases social media, fliers) and develop additional materials for the community meetings (display posters),
8) planning meetings and check-in phone calls and,
9) a budget of up to $1,000 for reimbursables such as printing costs, materials and supplies and refreshments/snacks for open houses.

The time and costs associated with each item are shown in the table below. Although a challenging study, we enjoy working with you and your staff and hope that it will lead to financially viable utilities.

Sincerely,
Steve Gagnon, PE (AZ)
Vice President
P: 714 351 2013
E: [email protected]
RAFTELIS 2
Propose Fee
Raftelis proposes to complete the scope of work outlined above on a time-and-materials basis for the fee shown below.

The following table shows our proposed fee based on our hourly rate and estimated hours.

PM CS SC GD Total

1. Stakeholder Questions and Additional
Meetings 18 8 $2,863

2. Future Public Hearing due to Re-noticing 1 8 2 10 $3,233

3. Rate Study Questions and Additional
Modeling as Needed 18 8 26 $7,780

4. Report Section and Modeling for AB 755 36 9 $2,160

5. Rate Study Workshop 10 12 2 24 $6,060

6. Public Hearing Notice 1 1 8 6 15 $3,530

7. Two Community Meetings/Open Houses 2 14 12 4 30 $9,106

8. Develop & Update Materials (website, social
media, press release, flier) 2 22 6 30 $7,660

9. Planning Meetings and Checkins 10 8 8 16 $4,960

10. Budget for Reimbursables (Printing,
Materials, etc.) $1,000
11 4 72 50 32 14 168
$340 $260 $175 $160
$24,480 $13,000 $5,600 $2,240 $45,320
$45,320
$3,032
$48,352
PM - Project Manager, Steve Gagnon, PE (AZ)
CS - Communications Staff, Gina DePinto, APR
SC - Staff Consultants
GD- Graphic Designer
Seal Beach Financial Plan
Tasks
Virtual
Meetings
Number of
In-Person
Meetings
Total Fees &
Expenses
Total Fees
Total Expenses
Total Fees & Expenses

PROFESSIONAL SERVICES AGREEMENT
for
Water and Wastewater Financial Planning Services
between
City of Seal Beach
211 - 8th Street
Seal Beach, CA 90740
N
Raftelis Financial Consultants, Inc.
227 West Trade Street, Suite 1400
Charlotte, NC 28202
704) 373- 1199
This Professional Service Agreement (" the Agreement") is made as of June 12, 2023 the " Effective Date"), by and between Raftelis Financial Consultants, Inc.

Consultant'), a North Carolina corporation, and the City of Seal Beach (" City"), a California charter city, ( collectively, " the Parties").

RECITALS
A. City desires certain professional water and wastewater financial planning services.

B. Pursuant to the authority provided by its City Charter and Seal Beach Municipal Code § 3.20.025( C), City desires to retain Consultant as an independent contractor to provide professional water and wastewater financial planning services.

C. Consultant represents that the principal members of its firm are qualified professionals and are fully qualified to perform the professional services contemplated by this Agreement by virtue of its experience, and the training, education and expertise of its principals and employees.

D. City desires to retain Consultant as an independent contractor and Consultant desires to serve City to perform those services in accordance with the terms and conditions of this Agreement.

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

AGREEMENT

1. 0 Scope of Services

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

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

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

1. 4. As a material inducement to City to enter into this Agreement, Consultant hereby represents that it has the experience necessary to undertake the Services to be provided. In light of such status and experience,. The City relies upon the skill of Consultant, and Consultant' s staff, if any, to do and perform the Services in a skillful, competent, and professional manner, and Consultant and Consultant's staff, shall perform the Services in such manner.

Consultant shall, at all times, meet or exceed any and all applicable professional 2of19
standards of care. The acceptance of Consultant' s work by the City shall not operate as a release of Consultant from such standard of care and workmanship.

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

2. 0 Term

2. 1. The term of this Agreement shall commence on June 12, 2023, and shall remain in full force and effect until June 30, 2024, unless sooner terminated as provided in Section 5. 0 of this Agreement.

3. 0 Consultant' s Compensation

3. 1. City will pay Consultant in accordance with the hourly rates shown on the fee schedule set forth in Exhibit A for the Services but in no event will the City pay more than the total not -to -exceed amount of $ 82, 415. 00 ( Eight Two Thousand Four Hundred Fifteen dollars and 00/ 100) for the Term.

4. 0 Method of Payment

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

4.2. Upon 24- hour notice from City, Consultant shall allow City or City's agents or representatives to inspect at Consultant' s offices during reasonable business hours all records, invoices, time cards, cost control sheets and other records maintained by Consultant in connection with this Agreement. City's rights under this Section 4. 2 shall survive for three ( 3) years following the termination of this Agreement. '
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5. 0 Termination

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

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

6. 0 Party Representatives

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

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

7. 0 Notices

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

To City: City of Seal Beach
211 - 8th Street
Seal Beach, California 90740
Attn: City Manager
To Consultant: Raftelis Financial Consultants, Inc.
227 West Trade Street
Charlotte, NC 28202
Attn: Steve Gagnon

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

8. 0 Permits and Licenses
Consultant and all of Consultant' s employees and other personnel shall obtain and maintain during the Agreement term all necessary licenses, permits and 4of19
certificates required by law for the provision of the Services under this Agreement, including a business license as required by the Seal Beach Municipal Code.

9. 0 Independent Contractor

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

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

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

Consultant shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: Social Security taxes, other retirement or pension benefits, income tax withholding, unemployment insurance, disability insurance, and workers' compensation insurance. Notwithstanding any other agency, State, or federal policy, rule, regulation, statute or ordinance to the contrary, Consultant and any of its officers, employees, agents, and 5of19
subcontractors providing any of the Services under this Agreement shall not become entitled to, and hereby waive any claims to, any wages, salaries, compensation, benefit or any incident of employment by City, including but not limited to, eligibility to enroll in, or reinstate to membership in, the California Public Employees Retirement System (" PERS") as an employee of City, and entitlement to any contribution to be paid by City for employer contributions or employee contributions for PERS benefits.

9.4. Consultant shall indemnify and hold harmless City and its elected and appointed officials, officers, employees, servants, designated volunteers, and agents serving as independent contractors in the role of City officials, from liability, damages, claims, costs and expenses to the extent caused by Consultant' s personnel practices. or to the extent arising from, caused by or relating to the violation by Consultant of any of the provisions of this Section 9. 0.

In addition to all other remedies available under law, City shall have the right to offset against the amount of any fees due to Consultant under this Agreement any amount due to City from Consultant as a result of Consultant' s failure to promptly pay to City any reimbursement or indemnification arising under this Section. This duty of indemnification is in addition to Consultant' s duty to defend, indemnify and hold harmless as set forth in any other provision of this Agreement. .

10. 0 PERS Compliance and Indemnification

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

10. 2. Indemnification. Consultant shall defend indemnify and hold harmless City, and its City and its elected and appointed officials, officers, employees, servants, designated volunteers, and agents serving as independent contractors in the role of City officials, from liability, damages, claims, costs and expenses of any nature to the extent arising from, caused by, or relating to Consultant' s violation of any provisions of this Section 10. 0. This duty of indemnification , is in addition to Consultant' s duty to defend, indemnify and hold 6of19
harmless as set forth in any other provision of this Agreement. Consultant's indemnification and obligations under this Section shall survive the expiration or termination of this Agreement.

11. 0 Confidentiality

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

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

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

12. 0 Ownership of Documents and Work Product

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

All Data & Documents shall be considered " works made for hire," and all Data & Documents and any and all intellectual property rights arising from their creation, including, but not limited to, all copyrights and other proprietary rights, shall be and remain the property of City without restriction or limitation upon their use, duplication or dissemination by City. Consultant shall not obtain or attempt to obtain copyright protection as to any Data & Documents. 7of19

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

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

Consultant shall bear all costs arising from the use of patented, copyrighted, trade secret or trademarked documents, materials, equipment, devices or processes in connection with its provision of the Services and Data & Documents produced under this Agreement. In the event the use of any of the Written Products or other deliverables hereunder by City is held to constitute an infringement and the use of any of the same is enjoined, Consultant, at its expense, shall: ( 1) secure for City the right to continue using the Data & Documents and other deliverables by suspension of any injunction, or by procuring a license or licenses for City; or ( 2) modify the Data & Documents and other deliverables so that they become non -infringing while remaining in compliance with the requirements of this Agreement. These covenants shall survive the expiration and/or termination of this Agreement.

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

13. 0 Subcontractors
No portion of this Agreement shall be subcontracted without the prior written approval of the City. Consultant is fully responsible to City for the performance of any and all subcontractors.

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

15. 0 Inspection and Audit of Records
Consultant shall maintain complete and accurate records with respect to all Services and other matters covered under this Agreement, including but expressly not limited to, all Services performed, salaries, wages, invoices, time cards, cost control sheets, costs, expenses, receipts and other records with respect to this Agreement. Consultant shall maintain adequate records on the Services provided in sufficient detail to permit an evaluation of all Services in connection therewith. All such records shall be clearly identified and readily accessible. At all times during regular business hours, Consultant shall provide City with access to such records without charge, and the right to examine and audit the same and to make copies and transcripts as City deems necessary, and shall allow inspection of all program data, information, documents, proceedings and activities and all other matters related to the performance of the Services under this Agreement. Consultant shall retain all financial and program service records and all other records related to the Services and performance of this Agreement for at least three ( 3) years after expiration, termination or final payment under this Agreement, whichever occurs later.

City' s rights under this Section 15. 0 shall survive for three ( 3) years after expiration, termination or final payment under this Agreement, whichever occurs later.

16. 0 Safety Requirements
All work performed under this Agreement shall be performed in such a manner as to provide safety to the public and to meet or exceed the safety standards outlined by CAL OSHA and other applicable state and federal laws. City may issue restraint or cease and desist orders to Consultant when unsafe or harmful acts are observed or reported relative to the performance of the Services.

Consultant shall maintain the work sites free of hazards to persons and property resulting from its operations. Consultant shall immediately report to the City any hazardous condition noted by Contractor.
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17. 0 Insurance

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

17. 2. Minimum Scope and Limits of Insurance. Consultant shall, at its sole cost and expense, procure, maintain and keep in full force and effect for the duration of the Agreement, insurance against claims for injuries to persons or damages to property that may arise from or in connection with the performance of this Agreement, as follows:

17. 2. 1. Commercial General Liability Insurance: Consultant shall maintain limits no less than $ 2, 000,000 per occurrence for bodily injury, personal injury and property damage; and if Commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this Agreement/ location or the general aggregate limit shall be twice the required occurrence limit: Coverage shall be at least as broad as the latest version of Insurance Services Office Commercial General Liability coverage ( occurrence form CG 0001). If Consultant is a limited liability company, the commercial general liability coverage shall be amended so that Consultant and its managers, affiliates, employees, agents and other persons necessary or incidental to its operation are insureds;

17. 2. 2. Automobile Liability Insurance: Consultant shall maintain limits no less than $ 1, 000, 000 per accident for bodily injury and property damage. Coverage shall be at least as broad as Automobile Liability: Insurance Services Office Business Auto Coverage form number CA 0001, code 1 ( any auto).

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

17. 2. 4. Professional Liability ( or Errors and Omissions) Liability, with minimum limits of $ 1, 000,000 per claim/ aggregate. If a " claims made" policy is provided, then the policy shall be endorsed to provide an extended reporting period of not less than three years.

17. 3. Acceptability of Insurers. The Insurance policies required under this Section shall be placed with insurers with a current A.M. Best's rating no less than A:VIII, licensed to do business in California, and satisfactory to the City. 10 of 19

17. 4. Additional Insured.

17. 4. 1. For general liability insurance, City, its elected and appointed officials, officers, employees, agents, designated volunteers and those City agents acting as independent contractors in the role of City officials shall be covered as additional insureds with respect to the services or operations performed by or on behalf of the Consultant, including materials, parts or equipment furnished in connection with such work.

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

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

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

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

17. 7. Separation of Insureds. All insurance required by this Section shall contain standard separation of insureds provisions and shall not contain any special limitations on the scope of protection afforded to City, its elected and appointed officials, officers, employees, agents, designated volunteers and those City agents serving as independent contractors in the role of City officials. 11 of 19

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

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

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

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

17. 12. Indemnity Requirements Not Limiting. Procurement of insurance by Consultant shall not be construed as a limitation of Consultant' s liability or as full performance of Consultant's duty to indemnify City under Section 18. 0. 12 of 19

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

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

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

18. 1. Indemnities.

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

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

18. 2. Subcontractor Indemnification. Consultant shall obtain executed indemnity agreements with provisions identical to those in this Section 18. 0 from 13 of 19
each and every subcontractor or any other person or entity involved by, for, with or on behalf of Consultant in the performance of this Agreement. If Consultant fails to obtain such indemnities, Consultant shall be fully responsible and indemnify, hold harmless and defend the Indemnitees from and against any and all Liabilities in law or equity, whether actual, alleged or threatened, which arise out of, are claimed to arise out of, pertain to, or relate to the acts or omissions of Consultant' s subcontractor, its officers, agents, servants, employees, subcontractors, materialmen, contractors or their officers, agents, servants or employees ( or any entity or individual that Consultant' s subcontractor shall bear the legal liability thereof) in the performance of this Agreement, including the Indemnitees' active or passive negligence, except for Liabilities arising from the sole negligence or willful misconduct of the Indemnitees, as determined by final arbitration or court decision or by the agreement of the Parties.

18. 3. Workers' Compensation Acts Not Limiting. Consultant' s indemnification obligations under this Section, or any other provision of this Agreement, shall not be limited by the provisions of any workers' compensation act or similar act. Consultant expressly waives its statutory immunity under such statutes or laws as to City, its elected and appointed officers, officials, agents, employees, designated volunteers and those City agents serving as independent contractors in the role of City officials.

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

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

19. 0 Non -Discrimination and Equal Employment Opportunity Consultant affirmatively represents that it is an equal opportunity employer. In the performance of this Agreement, Consultant shall not discriminate against any subcontractor, employee, or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex, gender, sexual orientation, gender identity, gender expression, marital status, national origin, ancestry, age, physical disability, mental disability, medical condition, genetic information, or any other basis prohibited by law. Consultant will take affirmative action to ensure that subcontractors and applicants are employed, and that employees are treated during employment, without regard to their race, color, religious creed, sex, gender, gender identity, gender expression, marital status, national origin, 14 of 19
ancestry, age, physical disability, mental disability, medical condition, genetic information or sexual orientation, or any other basis prohibited by law.

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

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

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

23. 0 Severability
The invalidity in whole or in part of any provisions of this Agreement shall not void or affect the validity of the other provisions of this Agreement.

24.0 doverning Law and Venue
This Agreement shall be governed by and construed in accordance with the laws of the State of California, except that any rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not be applied in interpreting this Agreement. Any dispute that arises under or relates to this Agreement ( whether contract, tort or- both) shall be resolved in a superior court with geographic jurisdiction over the City of Seal Beach.

25. 0 No Third Party Beneficiaries
This Agreement is made solely for the benefit of the Parties to this Agreement and their respective successors and assigns, and no other person or entity shall be deemed to have any rights hereunder against either party by virtue of this Agreement.
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26. 0 Waiver
No delay or omission to exercise any right, power or remedy accruing to City under this Agreement shall impair any right, power or remedy of City, nor shall it be construed as a waiver of, or consent to, any breach or default. No waiver of any breach, any failure of a condition, or any right or remedy under this Agreement shall be ( 1) effective unless it is in writing and signed by the Party making the waiver, ( 2) deemed to be a waiver of, or consent to, any other breach, failure of a condition, or right or remedy, or ( 3) deemed to constitute a continuing waiver unless the writing expressly so states.

27. 0 Prohibited Interests; Conflict of Interest

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

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

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

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

28. 0 Final Payment Acceptance Constitutes Release
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The acceptance by Consultant of the final payment made under this Agreement shall operate as and be a release of City from all claims and liabilities for compensation to Consultant for anything done, furnished or relating to Consultant' s work or services. Acceptance of payment shall be any negotiation of City' s check or the failure to make a written extra compensation claim within ten calendar days of the receipt of that check. However, approval or payment by City shall not constitute, nor be deemed, a release of the responsibility and liability of Consultant, its employees, subcontractors and agents for the accuracy and competency of the information provided and/ or work performed; nor shall such approval or payment be deemed to be an assumption of such responsibility or liability by City for any defect or error in the work prepared by Consultant, its employees, subcontractors and agents.

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

30. 0 NonAppropriation of Funds
Payments to be made to Consultant by City for any Services performed within the current fiscal year are within the current fiscal budget and within an available, unexhausted fund. In the event that City does not appropriate sufficient funds for payment of Consultant' s Services beyond the current fiscal year, this Agreement shall cover payment for Consultant' s Services only to the conclusion of the last fiscal year in which City appropriates sufficient funds and shall automatically terminate at the conclusion of such fiscal year.

31. 0 Mutual Cooperation

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

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

32. 0 Time of the Essence
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Time is of the essence in respect to all provisions of this Agreement that specify a time for performance; provided, however, that the foregoing shall not be construed to limit or deprive a Party of the benefits of any grace or use period allowed in this Agreement.

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

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

35. 0 Corporate Authority
The person executing this Agreement on behalf of Consultant warrants that he or she is duly authorized to execute this Agreement on behalf of said party and that by his or her execution, the Consultant is formally bound to the provisions of this Agreement.
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IN WITNESS WHEREOF, the Parties hereto, through their respective authorized representatives have executed this Agreement as of the date and year first above written.

CITY OF SEAL BEACH
9- & n" jn
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Attest:

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CONSULTANT: Raftelis Financial
onsultants, Inc., a North Carolina
orporation
By:

Peiffe A. Brandt
C f Executive Officer
Cm
Christine McIntyre
Secretary
Approved as to Form:

By: jg;i6
Nicholas R. Ghirelli, City Attorney
case note, two signatures required
ui corporations pursuant to California
Corporations Code Section 393 from
each of the following categories: ( i) the
chairperson of the board, the president
or any vice president, and ( ii). the
secretary, any assistant secretary, the
chief financial officer or any assistant
treasurer of such corporation.)

PROOF OF AUTHORITY TO BIND

CONTRACTING PARTY REQUIRED
19 of 19

EXHIBIT A
Consultant' s Scope of Services

R R A F T E LIS

RAFTELIS
May 30, 2023
Ms. Iris Lee
Public Works Director
City of Seal Beach
211 Eighth Street
Seal Beach, CA 90740
Subject: Water and Wastewater Financial Plan
Dear Mrs. Lee,
Raftelis is pleased to submit this proposal for a water and wastewater financial plan. A financial plan is the first half of a rate study. The goal of a financial plan is to assess if your future expected revenue is sufficient to meet expenses over the next 5 to 10 years. We project expenses which include operating, capital, debt, and reserve funding expenses. Capital expenses may be funded through cash and/ or debt. We also plan for reserves. If revenue is not sufficient, the financial plan proposes a series of revenue increases to meet expenses and reserve targets.

As we discussed, we will not perform a cost -of -service study. A cost of service study allocates the City' s revenue requirements to each customer class. A cost -of -service study was performed in the 2021 rate study and we can use the resulting rate structure from this study. Therefore, if our financial plan identifies a need for 10% additional revenue, we will increase all current rates by 10% to yield the additional required revenue.

This letter proposal includes a scope of work. I will be the project manager assisted by a member of our financial consulting staff, and Gina DePinto, APR, who will lead the outreach efforts. Should you have any questions, please contact me using the contact information below.

Sincerely,
Steve Gagnon, PE (AZ)
Vice President
P.• 714 3512013
E. sgagnon@raftelis. com
445 S. Figueroa Street, Suite 1925, Los Angeles, CA 90071 www. raftelis. com,

RAFTELIS
Scope of Services
Task 1: Project Management, Kick-off Meeting, QA/QC, Data Collection and Communication Check-in Meetings
Note: We have assumed that staff meetings are virtual and City Council Meetings are in person.

The kick-off meeting is used to perform our due diligence. As part of the kick-off meeting, Raftelis will:

1. Discuss any items that you think may affect the City' s future financial health such as:
o large CIP projects
o changes in revenue or expenses
o changes in tax revenue
o
Inflation and the projection of future expenses including water purchase costs.

2. Identify objectives for the study.

3. Discuss the state of reserves and financial policies.

4. Discuss any data gaps or questions.

5. Review the schedule.

This task also includes general project management, correspondence, billing, QA/ QC, and data collection. Raftelis will prepare a data request and start preparing the financial model before the kick- off meeting.

The time and cost associated with quality assurance/ quality control (QA/ QC) is also included in this task and includes a QA/ QC review by a Sr. Analyst who is not involved with the project to review calculations and critique the approach.

For the communications and outreach planning and implementation tasks over several months or longer, we typically schedule biweekly virtual check-in meetings of 30 minutes, so we are in regular touch about what we' ve learned, what we' re doing, and whether anything about communications and outreach efforts needs to change.

MEETINGS
Kick-off meeting (in person)
30 -minute virtual check-in meetings ( 16 each virtual) primarily for communications and outreach tasks ( Tasks 6- 9)

DELIVERABLES
Data Request List
Task 2: Water and Wastewater Financial Plan
The financial plan assesses each utility' s financial condition and suggests revenue adjustments to ensure long-term fiscal sustainability. We will analyze the prior financial plan and compare it to the proposed financial plan to assess why additional revenue increases are needed. It is likely a combination of the following factors:
1) Decreased water sales with the prior year drought and heavy rains in early 2023. 2) Low inflation factors used to project expenses.
3) Increased OCWD wholesale rates.
4) Higher capital expenses than projected.
5) Depletion of cash reserves due to capital spending that was originally planned to be funded through bond proceeds.
6) Any other factors that increased expenses beyond those anticipated in the prior financial plan.

RAFTELIS 3
Raftelis will project expenses and revenue over a 10 -year planning horizon. If desired, we can model two to three different financial plan scenarios reflecting different revenue adjustments based on capital investment and other expenses.

As part of the financial plan we review and discuss typical reserves for operating, capital, and if applicable rate stabilization and emergency purposes.

Our models include a dashboard with the following features:

Flexibility to change assumptions such as water sales, CIP levels, debt issuance amounts, and revenue adjustments.

Error flagging of results such as failure to meet debt coverage, unmet reserve targets, etc.

Sensitivity analyses that can be viewed instantaneously.

A sample model dashboard is shown below.
la R FYE 2020 FYE 202f FYE 2022 FYE 2023 FYE 2024 FYE 2025 FYE 2029 Salectiorin_OPtiana — R—me Adjuatmsnta 3.7% 5. 0% 5. 0% 5.0% 5. 0% O. ON. 0. 0% Chert 3: Display Total Funds' AdjuatmantMonth Apdi April Apol' April April April APAI Display Years 5 Demand Reduction 0% 0% 0% 0% 0% 0% 0% Raftelis will develop Pass- through? FALSE Addrt Demand Factor 100% 100% 100% 100% 1007. loci. 100% Rata Revenue Calcaiatod Patnbla Wutsr Salsa 17, 936 AF 17, 652AF 17,635 AF 17, 719 AF 17,751 AF 17, 7941 AF 17, 817AF a customized Reryled Weter Saba Z,Ti6 AF 2,993 AF 2.993AF 2.993 AF 2,963 AF 2, 993 AF Z, 953AF ETpand( or Transyars and Proposed Debt OpDons; financial model that

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FYE9120 FYE ] 021 FYE Mn FYEN13 FYEMSA FYE 2010 FTE 1021 FYE 1021 FYEMS FYE 2024 We' ve assumed two virtual staff presentations to review the financial plan, solicit staff feedback and incorporate it into the financial plan.

MEETINGS
Two webinars to discuss the financial plan

DELIVERABLES
Financial Plan Model in Microsoft Excel
Task 3: Three City Council Presentations
We propose an introductory Council presentation to explain the need for additional revenue. The second workshop will show the financial plan results and the additional revenue increases needed. We will describe all assumptions that will include anticipated revenue based on water sales, inflationary assumptions, and water purchase costs. We have included a third workshop, if needed, to incorporate City Council feedback from the second workshop.

RAFTELIS 4

MEETINGS
Three City Council workshops

DELIVERABLES
Presentation materials in PowerPoint
Task 4: Draft and Final Report Preparation
Raftelis will prepare draft and final reports. The report will describe the assumptions used in projecting revenue and expenses and the revenue adjustments needed to meet expenses and reserve targets.

MEETINGS
Webinar or phone conferences as needed to discuss the Report

DELIVERABLES
Draft and Final Reports
Task 5: Public Hearing Presentation
To adopt the rates, the City must present the rates to the public at a public hearing. Raftelis will prepare a presentation and present study results at the public hearing. Our Project Managers, myselfincluded, do this often and are accustomed to answering questions from the Council and members ofthe public. We assume this meeting will be in person.

PLANNED MEETINGS:

One public hearing presentation
DELIVERABLES:

Public hearing presentation in PowerPoint.

Task 6: Community Meetings with Presentation
We will help the City go beyond communicating with its stakeholders to ensure it also engages with them, meaningfully, through the study process before decisions are made. We propose that Raftelis will help coordinate and present at two community meetings or open houses to inform the public about the need to adjust rates. These are separate from publicly noticed City Council meetings, workshops, and hearings. Open houses allow convenient, one- on-one communication with customers in a low conflict setting, ensuring that customers can get their questions answered and that City staff can benefit from community feedback. This process can be highly collaborative and iterative; the feedback we receive from key stakeholders will help guide the overall direction ofthe study and inform the methodologies and options ultimately selected for the final rate proposal. Our presentation will be reviewed by our communications staff who are experts at developing clear, compelling, and consistent messages that build awareness and support with stakeholders.

PLANNED MEETING( S):

Web meetings as needed to discuss the messaging, meeting logistics, and presentation; two in-person community meetings or open houses
DELIVERABLE( S):

Presentation in PowerPoint
Develop promotional materials including digital and print event notices, invitations, social media content, a press release, and direct mail postcard ( printing and postage are not included)

RAFTELIS
o Recommend producing 8- 10 graphic display/ poster boards for use in the open houses o Logistical coordination and on- site facilitation of the open houses o Gathering feedback from participants
o Compiling a summary report of feedback
Task 7: Proposition 218 Public Notice Preparation
While requirements of Proposition 218 notifications are easy to satisfy, too many municipalities and utilities miss the opportunity to educate and inform ratepayers. Over the years, Raftelis has designed countless Proposition 218 notifications that go beyond the minimum dictated by statute to deliver visually appealing pieces that customers want to read. We will draft the content and match the City' s established brand guidelines to design custom graphics that support clear, positive messaging in the Notice. Once these arrive in mailboxes, customers will not only be properly notified but will understand the City' s needs and be more likely to support rate adjustments.

PLANNED MEETING( S):

Web meetings as needed to discuss the public hearing notice DELIVERABLE( S):

Draft notification language for the City' s legal counsel' s review/ approval, designed notification with two rounds of revisions, and final press -ready PDF in English. As needed, the City will provide language translations to be included in the final designed Notice.

Task 8: Communication and Outreach Plan Development
As a first step in getting a comprehensive look at how we can build a strategy most effectively, Raftelis will conduct a two- hour in-person outreach kickoff meeting followed by a communications analysis to identify areas we can leverage.

It' s in our best interest to invite staff who participate in the City and Public Works Department communications assets to participate in the kickoff because we will review assets, obstacles, challenges, and opportunities with respect to communications and outreach to obtain a clear picture of your working environment and staff resources. We' ll amass your internal and external stakeholders, communication materials, channels, and programs and evaluate what' s working, or what may need a tweak. Doing so provides us with a foundation to build an effective plan.

From there, Raftelis will develop an outreach plan that includes the following components:

Situation analysis — this is a combination ofinternal research and input gathered in the kickoff workshop.

Stakeholder identification — stakeholder mapping is inserted into the plan to show how key stakeholders are connected to the communication process. It also identifies special population communication needs such as necessary translation services, or community communication preferences.

Communication channel identification - this section covers which communications channels will be used to reach stakeholders, such as the City' s website, social media, printed and electronic materials, bills, direct mail, newsletters, and other available opportunities.

Messaging platform — this provides messages about why rates are changing, how the results will be implemented, and potential impacts to customers for use in such materials as FAQs, infographics, website updates, bill inserts, etc.

Internal communication strategies — this section will provide guidance to ensure all City staff are aware ofthe rates study and feel prepared and empowered to answer questions about it or where to direct stakeholders for information.

Community engagement techniques — this section will identify the techniques we will recommend for community engagement to ensure key stakeholders from each customer group and the development community, potentially highly impacted customer groups, underrepresented populations, etc., all have an opportunity to provide input into decision making.

RAFTELIS
Traditional and social media strategies — this section will provide an approach to using local media and your social media platforms for reaching your community with information.

Materials — this section will identify materials we recommend that we can develop for you to help us communicate such as newsletters, fact sheets, brochures, flyers, webpages, and an explainer video of legal rates setting.

Success measures — this section will identify the outputs and outcomes we will use to measure project success.

Implementation plan — this section ensures the Outreach Plan is accessible, usable, and practical. It identifies roles, responsibilities, materials, activities, and their due dates. We will refer to this document during project update calls.

PLANNED MEETING( S):

One in-person outreach kickoff meeting, two virtual meetings to review the draft Outreach Plan and receive feedback DELIVERABLE( S):

Draft and Final Communications and Outreach Plan with message platform, FAQs, one press release, social media content
Task 9: Materials Development
Key messages developed as part of the Communications and Outreach Plan come to life when woven together into powerful communications pieces by Raftelis' strategic communicators and professional graphic designers. Visual representation of proposed rate changes in an easy -to -understand and accessible format significantly improves customer understanding ofrate structure changes that may impact customer bills. Raftelis can provide a suite of communications pieces to assist with communicating rate and rate structure changes in print, online, or in person.

Exact materials will be determined in consultation with you, with specific estimates provided before expending time and materials. As a rough estimate, a brochure or fact sheet averages around $ 1, 500 each. A 2 -minute explainer video is roughly $ 2, 500-$ 5, 000 depending on content and format ( animation vs original b -roll, etc.). Generally, there are cost savings as more materials are produced using similar content and design.

PLANNED MEETING( S):

Web meetings as needed to discuss materials development DELIVERABLE( S):

Materials as requested
As proposed, hours built in for design and development of 2- 3 products

RAFTELIS
Raftelis proposes to complete the scope of work outlined above on a time -and -materials basis for the fee shown below.

The following table shows our proposed fee based on our hourly rate and estimated hours. The fee shows an optional task for a communications and outreach plan and materials development.

St; - Statt Uansultants k Total Fees & Expenses
GD- Graphic Designer i - —
t
j Number of
Virtual In -Person Total Fees &
Tasks Y Meetings Meetings PM CS SC GD Total Expenses

1. Project Management, Kick- off Meeting and 16 1 i 14 1'4i 10 38' 10, 593
QA/ QC, Communications . Check -ins

2.. Water and Wastewater Financial Plan 2 r 80 j24 56 18, 760 r

3. Three City Council Presentations 3 20 3 6, 2 31
r
9,449

4. Draft and Final Reports i ; 10 34 44 f $ 9, 790
5- Public Hearing Presentation11 8 4 2 14 4,363

6. Community Meetings with Presentation 2 t
2 1.0 14
4 4. 1 32
d
1 $ 8,826

7. Proposition 218 Public Notice Preparation 2 i 2 12 t1 10 26 5, 825

8.. Communication & Outreach Plan 21' 1 30 i 6 37 9, 533 i 1
9: Materials Development 4 11 10 1 12 24 5, 275
28 8 t 990 87 114 34 325
340 260 175 160
30, 600 22, 620 19, 950 73, 170
Total Fees 73, 170
PM - Project Manager, Steve Gagnon, PE ( AZ) r
CS - Communications Staff, Gina DePinto, APR i 1
Total Expenses 9, 245
St; - Statt Uansultants k Total Fees & Expenses
GD- Graphic Designer i - —
RAFTELiS 8
Schedule
A proposed schedule is shown below. It assumes that Raftelis will receive data by late July and that we will implement rates for January 2024.

Notice to Proceed

1. Project Management, Kick- off Meeting and
QA/ QC, Communications Check -ins
City Provides Requested Data

2. Water and Wastewater Financial Plan
Kick- off Meeting

3. Three City Council Presentations

4. Draft and Final Reports

6. Public Hearing Presentation

6. Community Meetings with Presentation

7. Proposition 218 Public Notice Preparation
Public Noticing Period

8. Communication & Outreach Plan
9: Materials Development

JUN JUL AUG SEP OCT NOV DEC JAN
7k'
0 0
Q O O
O

1.1 EXHIBIT B

TERMS FOR COMPLIANCE WITH CALIFORNIA LABOR LAW REQUIREMENTS

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

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

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

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

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

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

6. Consultant shall comply with and be bound by the provisions of Labor Code Sections 1774 and 1775 concerning the payment of prevailing rates of wages to workers and the penalties for failure to pay prevailing wages. Consultant shall, as a penalty to City, forfeit 200.00 for each calendar day, or portion thereof, for each worker paid less than the prevailing rates as determined by the DIR for the work or craft in which the worker is employed for any public work done pursuant to this Agreement by Consultant or by any subcontractor.

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

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

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

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

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

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

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

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

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

13. To the maximum extent permitted by law, Consultant shall indemnify, hold harmless and defend ( at Consultant' s expense with counsel reasonably acceptable to City) City, its officials, officers, employees, agents and independent contractors serving in the role of City officials, and volunteers from and against any demand or claim for damages, compensation, fines, penalties or other amounts arising out of or incidental to any acts or omissions listed above by any person or entity ( including Consultant, its subcontractors, and each of their officials, officers, employees and agents) in connection with any work undertaken or in connection with the Agreement, including without limitation the payment of all consequential damages, attorneys' fees, and other related costs and expenses. All duties of Consultant under this Section shall survive the termination of the Agreement. rliantif• 1722AAq RAFTEFIN
ACORD.. CERTIFICATE OF LIABILITY INSURANCE
DATE ( NNNDD/ YYY`/)
6/ 15/ 2023
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS

CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER( S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER.

IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or 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 any rights to the certificate holder in lieu of such endorsement( s).

USI Insurance Svcs, Charlotte
6100 Fairview Road Ste 1400
Charlotte, NC 28210
800 868-8834INSURER
GU
NAME:ME: I Brad Christensen

PHONE FAX
AIC, No, Ext): AIC, No):

ADDRESS: E- MAIL brad. christensen@usi. com
INSURER( S) AFFORDING COVERAGE NAIC #
A National Fire Insurance Co. of Hartford 20478

INSURED
Raftelis Financial Consultants, Inc.
227 West Trade Street, Ste. 1400
Charlotte, NC 28202
INSURER B: Continental Insurance Company 35289
INSURER C: American Casualty Company of Reading PA 20427 INSURER D: Continental Casualty Company 20443
INSURERE:

INSURER F:

COVERAGES CERTIFICATE NUMBER: REVISION NUMBER:

THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACTOR OTHER DOCUMENT WITH RESPECT TO WHICH THIS

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

INSR LTR TYPE OF INSURANCE

ADDLISUBR

INSR WVD POLICY NUMBER

POLICY EFF
MIDD

POLICY EXP
D
LIMITS
A X COMMERCIAL GENERAL LIABILITY 6076000011 0112112023 01/ 21/ 202 EACH OCCURRENCE $ 1, 000,000 PREMISES Ea occu nce 5500, 000 CLAIMS - MADE 1 OCCUR
MED EXP (Any oneperson) 515,000
PERSONAL & ADV INJURY S1, 000, 000
GEN' L AGGREGATE LIMIT APPLIES PER: GENERAL AGGREGATE $ 2, 000, 000 PRODUCTS - COMP/ OP AGG 52, 000, 000 X POLICY
PROJECT LOC
OTHER:

D AUTOMOBILE LIABILITY BUA6076000025 1/ 21/ 2023 01/ 21/ 202 EDacct CNDSINGLELIMIT $ 1, 000, 000 BODILY INJURY ( Per person) S

ANY AUTO
OWNED SCHEDULED BODILY INJURY ( Per accident) S

AUTOS ONLY AUTOS

HIRED NON - OWNED

X AUTOS ONLY X AUTOS ONLY
PROPERTY DAMAGE 5
Per accident
5 B X UMBRELLA LIAB X OCCUR CUE6076000039 1/ 21/ 2023 0112112024 EACH OCCURRENCE $ 5, 000, 000 EXCESS LIAB CLAIMS - MADE AGGREGATE s5, 000, 000
DED I X RETENTION 510000 S
C WORKERS COMPENSATIONWC676000042 AND EMPLOYERS' LIABILITY N

ANY PROPRIETOR/ PARTNER/ EXECUI
YIN
OFFICER/ MEMBEREXCLUDED?
Mandatory in NH)
NIA
WC676305637
1/ 21/ 2023
1/ 21/ 2023
01/ 21/ 202
0112112024

X PERTUT OTH -
A PR
E. L. EACH ACCIDENT $ 1, 000, 000
E. L. DISEASE - EA EMPLOYEE 31, 000, 000
E. L. DISEASE - POLICY LIMIT 51, 000, 000 If yes, describe under DESCRIPTION OF OPERATIONS below
D Professional 652071235 D112112023 0112112024 5, 000, 000 Aggregate 5, 000, 000 Occurrence
3/ 4/ 1994 Retro Date
DESCRIPTION OF OPERATIONS/ LOCATIONS/ VEHICLES ( ACORD 101, Additional Remarks Schedule, maybe attached if more space is required) The City of Seal Beach its elected and appointed officials, officers, employees, agents, designated volunteers and those City agents acting as independent contractors in the role of City officials shall be See Attached Descriptions)

SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE City of Seal Beach THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN 211 - 8th Street ACCORDANCE WITH THE POLICY PROVISIONS.

Seal Beach, CA 90740

AUTHORIZED REPRESENTATIVE
40ai,_ L U 6d,
W Tyt$t5- ZU 10 At- UKU L UKrUKH I IUM Mu I IyI Iu I U Ul vwu.

ACORD 25 ( 2016103) 1 of 2 The ACORD name and logo are registered marks of ACORD S40414805/ M39162930 LUSZZ
I. DESCRIPTIONS. ( Continued from Page 1)
covered as additional insuredswith respect to General Liability, Automobile and Umbrella will follow form as per written contract. The coverage afforded to the Additional Insured is on a Primary and Non Contributory basis for General Liability, Automobile and Umbrella if required by written contract. Waiver of Subrogation applies to General Liability, Automobile, Workers Compensation and Umbrella policies in favor of the above listed Additional Insured per written contract. A 30 day notice of cancellation will be given except for non- payment of premium will be 10 days if required by written contract.

SAGITTA 25. 3 ( 2016103) 2 of 2
S40414805/M39162930
Agenda Item I

AGENDA STAFF REPORT
DATE: February 24, 2025
TO: Honorable Mayor and City Council
THRU: Patrick Gallegos, Interim City Manager
FROM: Michael Henderson, Chief of Police
SUBJECT: Parking Enforcement Automated License Plate Reader (ALPR) and Supporting Equipment Refresh
________________________________________________________________ SUMMARY OF REQUEST:

That the City Council adopt Resolution 7621:

1. Approving the expenditure of $214,479.37 for the reimplementation and refresh of the Seal Beach Parking ALPR system, CIP BG2401; and,

2. Authorizing the Interim City Manager to execute on behalf of the City all contracts and proposals, including any necessary extensions or amendments thereafter.

BACKGROUND AND ANALYSIS:

Parking enforcement and animal control are critical functions of the City of Seal Beach Police Department (Department). The Department relies heavily on Senior Community Service Officers (SCSOs) and Police Aides (PAs) to enforce local laws, provide animal control services, support patrol, and maintain order.

Mobile (vehicle-mounted) license plate recognition (LPR) technology is the central pillar that the Department’s parking enforcement and animal control programs are built upon. Everything, from parking permit checks, the issuance of citations, and SCSO/PA responses to calls, rely upon complex, interconnected computer systems.

In 2023, the Department’s operations resulted in approximately 22,900 citations.

SCSOs and PAs handled over 6,000 service calls. However, ongoing equipment failures are significantly hampering the effectiveness of SCSOs and PAs. This decrease in efficiency is expected to worsen as equipment issues persist. If immediate action is not taken, Department staff anticipate several negative outcomes, including:

Page 2 ends

• A substantial decline in parking citations being issued and decrease in parking revenue
• Increased response times for service calls
• SCSO and PO safety issues due to failing equipment
• Significant disruptions to animal control and jail services There are two (2) integrated mobile LPR companies, Genetec and Motorola Vigilant. The Department has utilized Genetec’s LPR since the initiation of the Department’s smart parking technology program in 2017. Staff recommends proceeding with a Genetec Distributor to optimize existing infrastructure and integrations.

Due to the complex and customized nature of the associated Genetec equipment and software, staff recommends using a licensed Genetec distributor for these hardware and support services. Since some of the operational components are not compatible with outside vendors or other manufacturers, switching vendors would require a substantial cost increase to unnecessarily replace components to be compatible with other manufacturers.

There are three (3) licensed Genetec distributors who support the West Coast region with the municipal, parking, and law enforcement experience who are qualified to support the City’s smart parking technology program. Introducing new vendors or hardware would needlessly complicate reimplementation efforts, slow down productivity, and increase costs. Additionally, the Department strives to maintain a degree of hardware consistency between patrol and parking fleet vehicles. This maximizes interoperability and simplifies maintenance.

An Invitation to Bid was issued on October 16, 2024, and each of the three qualified (3) vendors submitted a proposal by the November 26, 2024 deadline. After a thorough review of the proposals and reference checks were completed, ComSonics’s proposal was selected.

ComSonics’ proposal provides the most complete service agreement that includes support and overall coverage. This is critical to the success of the program because the additional cost allows us to conduct maintenance and repairs in a more cost-effective manner.

Staff is recommending ComSonics due to its lower five-year cost projection, which includes change order requests, making them the lowest total bid. Additionally, ComSonic had excellent references including local agencies with similar needs to Seal Beach.

ENVIRONMENTAL IMPACT:

There is no environmental impact related to this item.

Page 3 ends

LEGAL ANALYSIS:

The City Attorney has reviewed and approved as to form.

FINANCIAL IMPACT:

The funding has been set aside in the Revitalization Plan and was approved by the City Council at the Strategic Planning session on January 30, 2024. Sufficient funds have been allocated in the approved FY 2024-25 budget under capital project BG2401 Revitalization Plan account 301-500-0333-55000. ComSonics’ proposal total is not to exceed a total of $214,479.37 for the five-year period.

Recurring costs, such as licensing fees and routine management costs outside of the established warranty and agreements, are to be budgeted for in the Department’s technology budget, which will be included in future years.

STRATEGIC PLAN:

This item is not applicable to the Strategic Plan.

RECOMMENDATION:

That the City Council adopt Resolution 7621:

1. Approving the expenditure of $214,479.37 for the reimplementation and refresh of the Seal Beach Parking ALPR system, CIP BG2401; and,

2. Authorizing the Interim City Manager to execute on behalf of the City all contracts and proposals, including any necessary extensions or amendments thereafter.

SUBMITTED BY: NOTED AND APPROVED:

Michael Henderson Patrick Gallegos
Michael Henderson, Chief of Police Patrick Gallegos, Interim City Manager Prepared by: Chris Hendrix, Operations Bureau Lieutenant ATTACHMENTS:

A. Resolution 7621
B. City of Seal Beach Invitation to Bid Genetec LPR 10162024 C. RFP (Request for Proposal) Responses
D. City of Seal Beach Professional Services Agreement with ComSonic RESOLUTION 7621

A RESOLUTION OF THE SEAL BEACH CITY COUNCIL FOR
APPROVAL OF EXPENDITURE OF FUNDS – PARKING

ENFORCEMENT AUTOMATED LICENSE PLATE READER
(ALPR) & SUPPORTING EQUIPMENT REFRESH
WHEREAS, ALPR technology has proven to be a valuable tool to assist the Police Department with the enforcement of parking regulations as well as assisting in locating missing persons and identifying suspect(s) and suspect(s)’ vehicles related to crimes in the area; and,
WHEREAS, on October 16, 2024, the City issued an Invitation to Bid for the ALPR and supporting equipment refresh, CIP BG2401 (Project); and, WHEREAS, on November 26, 2024, the Police Department received three (3) bids in response to the Invitation to Bid, and ComSonics submitted a bid in the amount of $214,479.37 after a thorough review of proposals and completion of background checks; and,
WHEREAS, upon reviewing the Invitation to Bid and Instructions to Bidders, the bids submitted for the work to be performed pursuant to the Agreement and the plans and specifications, the City Council finds that ComSonics is a qualified firm to perform the Project.

THE SEAL BEACH CITY COUNCIL DOES HEREBY RESOLVE:

SECTION 1. The City Council hereby approves the plans and specifications for the Project.

SECTION 2. Based on the recitals set forth above, the City Council hereby awards a Professional Services Agreement to ComSonics for the Project in the not-to-exceed amount of $214,479.37 and rejects all other bids.

SECTION 3. The City Council hereby authorizes and directs the Interim City Manager to execute the Professional Services Agreement with ComSonics on behalf of the City.

SECTION 4. The City Council hereby authorizes the Interim City Manager to approve payments for additional work requests in connection with the Project in the not-to-exceed amount of $214,479.37.

PASSED, APPROVED, and ADOPTED by the Seal Beach City Council at a regular meeting held on the 24th day of February 2025 by the following vote:

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

Lisa Landau, 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 7621 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 24th day of February 2025.

Gloria D. Harper, City Clerk

?aCouSoNtcs" 1350 Port Republic Rd
PO Box 1105
llarrisonburg, VA 2280'l
800-335-9681 oxt. 1243
lax 540-2137-2131
Customeri crty ol seal Beach
(6) Onsne Crty LPR System
5 Y€ar Hadware Wananty
Mike Nesselrodt
Public Safety Accounts Manager
[email protected]
!iE!!4r.0!-s9Es!j9
Auiovu* Sha@23 650nn Ciy KIT mdud.s 6a n
ShaDZ3 dual p@ssing un( w[h
Hodzo.aweni€l mo!n15. unng, LJSSGpS. in'
v€hicl. maDri.q .nd G.n6tec Patollerx l'6nse. 2
CimeEs $d eme6 mounts includ6d s21 945 00 s102 702 60
AL],M,OFFLLNEMAP.NA
Mapping Lcnse
'.cludrng
d.la forNonh
amen@ - Per v6hrcle [email protected] 2
Adva.r.oe Yeartv Fees
G€.eleIM Advr.l5oe Ren.wal lor 1
AutoVuTM mobile sysrem @nn6cl'on ro
Socunly CenG.' 1 y6ar (or rwo curc.i V qll.nr
LPR unE) 2 s312 00
pr.te Li.t Y.rnv subscnbri.n Fe.

AU,PLATELINK.AASE,lY
V.hicle @nnedio.s lor 1 Year Alos up Io 2
veh c es b seid daG ro lhe cloud 1o be shared 5l 35000
AU PLATEL]NK,1CAR 1Y
Ano6 I vehi.le ro s6.d d3ta io the clold lo b6
sha€d PlaELink aa* is eou'6d
Comsonics Mobil. lnst ll.rion.nd Mrinran.c6
A3!
Com&nic V€h cl. lnsial alion and Tra'n'no 53,531 00 s2r 136 00 ComSo.iG PoEctManaoeme.l lo.e T'me Fee) $1 333 00 l S] s1 33400 Comslni6 ManEnen@ PlEn (1 Y6ar)
Enend.d W.da nty Optio.s
-
335 00
A!-K-c)(x- adva.ed swap wamnry s.ry c
!@€d€ Lom etum 3.d reoar lor frst vea. ol sa e
Ensd€d wamnt lo. AU-K-cr\x kir witrr Advan@
iopl@m6r @vo6gs - 4 Yeau addnDna
@v.69e o@s rcl Ln lude lpdale lo.dvenc4d
[email protected] lor y6ar 1 ([email protected] €n.or en€nd
prstslh year an6r purch.s6) Thsinclud.s
@v6E9e ol autovur v.hi.l€ hardwa.€. Gsn.bc
PErrollerB sonw.6 upg..d6s a.d B.nomEd
uodar6. cro4 rcr @vd icEhicle Ftr 5 s6: 244 00 st7 301 52 Toralwitho exr€nded wam y
s253.64 60 s214 479 X7
Tor.l with 5 yeaB ol adv.nc€d Pl.c.tunt
Coverag€
Q uote C reated : 1 1 /26/2024
Q uote Ex p i res : 226/2025
Unn SRP otv Eneflded Pric6
[IHHIJJH:I
Portable computer
Systems,lnc.
7i00 Vra Paseo Del sur
Suite 202
Scottsdale AZ 852S8
United States
PO#
Quote
#1736
11t25t2024
Note: This Quote is good and valid for 15 days beyond the Quote Date Eill ro ship ro TOTAL
Kevin Edwards
City of Seal Beach
2',1 1 8TH Sr
Seal Beach CA 90740-6305
United States
City of Seal Beach
211 8TH St
Seal Beach CA 90740-6305
United States $198,299.79
Expir ati on D ate: 1 2125 12024
Terms Shipping Method
Deposit - 50%
(LPR)
Expiration Date
1212512024
Project Description
Seal Beach - Overtime Kit Option
Engineering services
I Project management services for add on Mobile LPR project deployment, up to five mobile LPR vehicles. 6, Installation services for one mobile LPR vehicle with wheel imaging cameras. i Configuration services for add on mobrle LPR projects. Includes adding new units to exis(inq server environment and configuring add on hardware to match existing hardware specifications. 1 Remote training for Mobile LPR. Includes remote training session on LPR N4obile Vehicle software and hardware (up to five people participants) and remote web based training session on LPR Security Center software - Security Desk and Config Tool - (up to 10 particrpants).
1 Cost of technician to travel to provide on-site installation. This is a per trip charge; if technician is required to return to site for reasons outside of Route'l's conrrol, there wrll need to be additional trip charges.

Subtotal: $16,950.00
Hardware and Software - Sensors and Data Acquisition
6 Autovua Sharpz3 OVERTIME Sinqle base KIT includes base unit, LPR module for up to 2 LPR cameras, hard " mount brackets, advanced GPS n-avigation with dead reckoning, POE aux camera option, 2 Tire Cameras, 2 LPR units and in-vehicle license.
6 Mapping License including data for North America
6 Routel consumables
1 Route 1 Shipping Via FEDEX or UPS
6 Extended Warranty for AU-K-OXX kit wrth Advance Replacement coveraqe - 4 Years addrtional coverage. Does not Include update to advanced replacement for year 1 (warranty cannot extend past 5th year after purchase). This includes coveraqe of Autovu vehicle hardware, Gene(ec Patroller software upgrades and Benomad updares.

Does not cover in-vehicle PC.
6 AU-K-OXX- advanced swap warranty service upgrade from return and repair for first year of sale. subtotal: $153,094.62
support and Licenses
6 Genetec* Advantage for 1
Autovu" mobile system connection to
Security Center - 1 year.

Sales Rep
Elton Crawford
Ponable Computer
Svstems,lnc.
7i00 Vra Paseo Del 5ur
Suite 202
Scottsdale AZ 85258
lJnited States
Quote
TilRPPJ"H]
Subtotal:
#1736
11/25/2024
$t 2,300.00
$15,955.17
$198,299.79
,]
1 6
Routel Comprehensive support for on Premise for one year.

Routel Comprehensive Support - annual on site maintenance visit.

Routel Comprehensive Support - one Mobile LPR vehicle for one year Tax (%)
Total
The below Terms of Sale are an integral part of this quote. ln order for this quote to be effective, the attached Terms of Sale must be agreed to.

Customer Authorizing Party Signature:

Date of Signature:

EP EYEP
SOLUTlONS,rr.rc
Pricing
OPIIoN 1 - PURCHASE
YearT-LPRFleet
Yeor 7 - Genetec Advontoge (S-yeor renewol)
Part Number/Name Description aty Unit Price Extended Price AU-K-C223-850 City Kil (Add-On) 2 $17,830.00 $3s,660.00 AU.K.CXX,EWRR-4Y Extended warranty for AU-K-cxx kit - return and reptace - 4 yearc (Add On)
2 $6,846.84 $13,693.68
AU.M.OFFLINEMAPNA
Mapping License (Add -On) 2 $o.oo $o.oo
Computing Kit Mounts and docking station, does not
include CradtePoint, computer, antenna, etc
(Add-On)
2 $1 ,87s.00 $3,750.00
AU-K-C223-850 Ciq Kft (Upgrade) 4 $1 5,012.1 9 $60,048.76 AU-K-CXX.EWRR-4Y Extended Warranty for AU-K-CXX kit - return and replace -4 years (Upgrade)
4 $6,320.16 $25,280.64
GPS GPS unit + extension cabte 6 $i 29.09 $77 4.54
AU-PI
3RDPARryEXPO
RTER-lX
3'd party exporter - 1 endpoint 1 $2,031.2s $2,031.25
GSC.l SDKDIXON

RAPID LPR TOOL
One (1) Genetec SDK connection for Dixon
Resources Untimited with Rapid LPR Toot
1 $203.1 3 $203.13
Autovu Certif ication Certification tree. Travet not inctuded 2 $o.oo $o.oo lnsta ttation and
Configuration
1 $42,000.00 $42,000.00
Freight '1 $r,ooo.oo $1,ooo.oo
Support 1 $4,000.00 $4,ooo.oo
AU-PLATELINK-BASE1Y
PtateLink for 1 year includes 2 vehicles
connections - per year
1 $338.82 $338.82
AU-PLATELINK-1 CAR1YPtateLink for I year - per year per car 4 $225.88 $903.s2 Taxes 8.75% tax rate 1 $8,f7o.41 $8,170.41
Subtotat: $198,454.75
Part Number/Name Description aty Unit Price Extended Price Beinstatement Lapsed ADV- onty if 5 year purchased 1 $o.oo $o.oo 3450 Patmer Drive, Suite 4-191, Cameron Park, CA 95682
u,,..,tu,,.eyep-salutl ons.corn I sates@eyep-sotutions-com Phone: (9'16) 550-3170 | Fax: (530) 387-2106
I Prolect Management, on srte rnstallation,
I on-site trarning, Patrotl.er conf iguration
Per year.

EP. EYEP
SOLUTIONS,'*c
Synergis Enterprise Reader $4s.s0 $ r ,592.50
ADV-CAI.4-E.5Y Omnicast Enterprise Reader 87 $r 45.44 $12,653.28 ADV-LPR.M.5Y Autovu mobiLe system 6 $568.75 $3,412.s0
subtotal: $17,6s8.28
Options
Total Controct Volue
5 year contract value excluding options
Part Number/Name Description Qty Unit Price Extended Price Support Per year .l $4,ooo.oo $4,000.00
AU.PLATELINK-BASE.l Y PtateLink for 1 year inctudes 2
vehicles connections - per yea r
T $s38.82 $338.82
AU,PLATELIN K-1 CAR,l Y Piatelink for I year - per year per car
4 $22s.88 $e03.52
Annuat Subtotat: $5,242.34
Part Number/Name Description Qr/ Unit Price Eltended Price Additionattrips Support or preventative
maintena nce - as needed
1 $3,ooo.oo $3,ooo.oo
Upgrade 5.9 to 5.11 T $4,400.00 $4,4oo.oo
Part Number/Name Extended Price
Year 1 (LPR Fteet) $r 98,454.75
Year (LPR Advantage - 5 year paid upfront) $17,6s8.28
Years 2-5 - totat $20,969.36
5 year Total: $237,082.39
3450 Patmer Drive, Suite 4-'19'l , Cameron Park, CA 95682 ww!t/.eyep-so{ulicns.cont I [email protected]
Phone: (916) 550-3'1 70 I Fax: (530) 387-21 06
Yeors 2-S (renewed annually)
ADV-RDR-E-5Y
I On-site upgrade - must be
I combrned with LPR instal.tation trip.

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

2.0 Term
The term of this Agreement shall commence on 02/24/2025, and shall remain in full force and effect until 02/24/2030, unless sooner terminated as provided in Section 5.0 of this Agreement.

3.0 Consultant’s Compensation
In consideration of Consultant’s performance of the Services described in Section 1.0, City will pay Consultant in accordance with the hourly rates shown on the fee schedule set forth in Exhibit B for the Services but in no event will City pay more than the total not-to-exceed amount of $214,479.37 for the Term of this Agreement. Payment for any additional work authorized by City pursuant to Subsection 1.6 will be compensated in accordance with the fee schedule set forth in Exhibit B, and shall not exceed the cumulative amount established by the City Manager at the time of award for the Term.

4.0 Method of Payment
Consultant shall submit to City monthly invoices for all Services rendered pursuant to this Agreement. Such invoices shall be submitted within 15 days of the end of the month during which the Services were rendered and shall describe in detail the Services rendered during the period, the days worked, number of hours worked, there would not be an hourly rate, except for out of warranty or relocation after initial install, and the Services performed for each day in the period. City will pay Consultant within 30 days of receiving Consultant’s invoice. City will not withhold any applicable federal or state payroll and other required taxes, or other authorized deductions from payments made to Consultant.

5.0 Termination

5.1. Termination by City.

Seal Beach Police Department
ALPR Parking Technology Refresh
City Council Meeting
February 24, 2025
Background
• Mobile Automated License Plate Recognition (ALPR) has been utilized in Seal Beach since the initiation of the smart parking technology program in 2017 and (besides our people)is the central pillar that our parking enforcement and animal control programs are built upon
• In 2019, the City was recognized for the innovative use of integrated parking technology (first end-to-end parking technology solution on the West Coast)
• Throughout the City, parking is based on the license plate which optimizes the program and provides a more efficient operation Background
• The current ALPR technology has exceeded the life cycle (impacting program effectiveness and reductions in parking revenue) • Budget allocation was authorized to proceed with an ALPR technology refresh for 6 vehicles
• SBPD has direct experience with the 2 integrated mobile LPR companies (Genetec & Motorola)
• Motorola failed to provide the support required by the City’s smart parking technology program
Why Genetec?
● Complex & customized nature of the associated Genetec equipment and software
○ Able to optimize existing infrastructure and integrations with continuity and consistency with patrol & parking fleet vehicles ○ Simplifies maintenance and maximizes interoperability ● Switching vendors would require substantial increases to unnecessarily replace components and needlessly complicate reimplementation efforts (which would exceed budget allocation) Invitation to Bid
• 3 qualified, experienced and licensed Genetec distributors who support the West Coast region with municipal, parking and law enforcement experience were solicited on October 16, 2024 • The Invitation to Bid included a detailed scope of work, submission criteria and evaluation guidelines
• Each distributor completed an onsite inspection of the existing infrastructure with Police Department staff the week of November 5, 2024
• Proposals were received from each distributor on November 26, 2024.

Vendor Selection
• Proposals were received from Route 1 (incumbent), Eye P Solutions and ComSonics
• After thorough review of the proposals received, Route 1 and ComSonics were shortlisted and references were contacted • Existing concerns about responsiveness and consistency with Route 1 were confirmed by other agencies
• ComSonics has provided the most cost-effective and complete proposal to the City that includes support and overall coverage Financial & Service Impact
Impact to current revenue
• In 2023, our operations resulted in approximately 22,900 citations. SCSOs PAs handled over 6,000 service calls. However, ongoing equipment failures are significantly hampering the effectiveness of SCSOs and PAs. This decrease in efficiency is expected to worsen as equipment issues persist. • We anticipate several negative outcomes if immediate action is not taken:

1. A substantial decline in parking revenue

2. Increased response times for service calls

3. SCSO and PO safety issues

4. Significant disruptions to Animal Control and Jail services Budget Allocation
• The approved budget allocation for this project was $242,608 • ComSonics proposal is approximately $214,000
• Cost savings = Approximately $30,000 which can be invested in other aspects of the technology configuration
• Recurring costs, such as licensing fees, and routine management costs outside of the established warranty and agreements are to be budgeted for in the Police Department technology budget. • We recommend that a portion of the annual parking revenue be set aside in anticipation of preventative maintenance and the inevitable technology updates and upgrades that will be required in the future.

Questions?
[email protected]

Seal Beach City CouncilFebruary 24, 2025

Seal Beach City Council
February 24, 2025