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55414.00000\40152681.1
IN WITNESS WHEREOF, the parties have executed this Third Amendment to Agreement for Consultant Services on this 28th day of November, 2023.
CITY OF STANTON WILLDAN FINANCIAL SERVICES
By:
Hannah Shin-Heydorn
City Manager
By:
Chris Fisher
Vice President
By:
Rebekah Smith
Assistant Secretary
ATTEST:
By:
Patricia Vazquez
City Clerk
APPROVED AS TO FORM:
By:
HongDao Nguyen
Best Best & Krieger LLP
City Attorney
ATTACHMENT A
CITY OF STANTON
SECOND AMENDMENT TO
AGREEMENT FOR PROFESSIONAL CONSULTANT SERVICES
1. PARTIES AND DATE.
This Second Amendment to the Professional Services Agreement for Overhead Cost Allocation Plan and Comprehensive Fee Study (" Second Amendment"), is made and entered into on this atilday of June, 2023, by and between the City of Stanton (hereinafter referred to as the City") and Willdan Financial Services, a California Corporation, with its principal place of business at 27368 Via Industria, Suite 200, Temecula, California 92590 ( hereinafter referred to as the " Consultant"). City and Consultant are sometimes collectively referred to herein as the Parties."
2. RECITALS.
2. 1 Agreement. The Parties entered into that certain Professional Services Agreement for Overhead Cost Allocation Plan and Comprehensive Fee Study dated January 12, 2021 Agreement").
2. First Amendment. The Parties entered into a First Amendment to Agreement on June 28, 2022, in order to extend the term of the Agreement to June 30, 2023.
2. 3 Second Amendment. The Parties now desire to amend the Agreement in order to extend the term of the Agreement.
3. TERMS.
3. 1 Term. Section 3. 1. 2 of the Agreement is hereby amended in its entirety to read as follows:
The term ofthis Agreement shall be from January 12, 2021 to June 30, 2024, unless earlier terminated as provided herein. Consultant shall complete the Services within the term of this Agreement, and shall meet any other established schedules and deadlines."
3. 2 Remaining Provisions ofAgreement. Except as otherwise specifically set forth in this Second Amendment, the remaining provisions of the Agreement shall remain in full force and effect.
IN WITNESS WHEREOF, the parties have executed this Second Amendment to Agreement for Consultant Services on this - 25441 day of June, 2023. 55414. 00000\ 4152681. 1
ATTACHMENT B
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SIGNATURES ON FOLLOWING PAGE
CITY OF STANTON
By: a . k
H ah Shin- He` y' dom
City Manager
is
City Clerk
APPROVED A" TO FORM:
By:
HongDao Nguyen
Best Best & Krieger LLP
City Attorney
55414. 00000\ 4152681. 1
WILLDAN FINANCIAL SERVICES
By:
Chris Fisher
Vice President
By( j»Q9L -10t
Rebekah Smith
Assistant Secretary
ivrott
ATTACHMENT B
CITY OF STANTON
FIRST AMENDMENT TO
AGREEMENT FOR PROFESSIONAL CONSULTANT SERVICES
PARTIES AND DATE.
This First Amendment to Professional Services Agreement for Overhead Cost Allocation Plan and Comprehensive Fee Study (" First Amendment'), is made and entered into on this 281 day of June, 2022, by and between the City of Stanton ( hereinafter referred to as the " City") and Willdan Financial Services, a California Corporation, with its principal place ofbusiness at 27368 Via Industria, Suite 200, Temecula, California 92590 (hereinafter referred to as the " Consultant').
City and Consultant are sometimes collectively referred to herein as the " Parties."
2. RECITALS.
2. 1 Agreement. The Parties entered into that certain Professional Services Agreement for Overhead Cost Allocation Plan and Comprehensive Fee Study dated January 12, 2021 Agreement').
2.2 First Amendment. The Parties now desire to arnend the Agreement in order to extend the term of the Agreement, and assign the Agreement to Consultant.
3. TERMS.
3. 1 Term. Section 3. 1. 2 of the Agreement is hereby amended in its entirety to read as follows:
The term of this Agreement shall be from January 12, 2021 to June 30, 2023, unless earlier terminated as provided herein. Consultant shall complete the Services within the term of this Agreement, and shall meet any other established schedules and deadlines."
3. 2 Remaining Provisions of Agreement. Except as otherwise specifically set forth in this First Amendment, the remaining provisions of the Agreement shall remain in full force and effect.
IN WITNESS WHEREOF, the parties have executed this First Amendment to Agreement for Consultant Services on this 28th day of June, 2022.
SIGNATURES ON FOLLOWING PAGE
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1 ATTACHMENT B
CITY OF STANTON
By:
6 (/
Zenia Boba-difTa
Interim City Manager
11F
n
NgT4FO
L-2
APPROVED AS TO
By:
HongDao Nguyen
Best Best & Krieger LLP
City Attorney
55414. 00000\ 40152681. 1
WILLDAN FINANCIAL SERVICES
By:
Chris Fisher
Vice President
By:
Rebekah
lk"
Smith
N-4
Assistant Secretary
ATTACHMENT B
CITY OF STANTON
PROFESSIONAL SERVICES AGREEMENT
FOR
OVERHEAD COST ALLOCATION PLAN AND COMPREHENSIVE FEE STUDY
1. PARTIES AND DATE.
This Agreement is made and entered into this / lAday of January, 2021, by and between the City of Stanton, a municipal organization organized under the laws of the State of California with its principal place of business at 7800 Katella Avenue, Stanton, California 90680 (" City") and Willdan Financial Services], a California Corporation, with its principal place of business at 27368 Via Industria, Suite 200, Temecula, California 92590 (" Consultant'). City and Consultant are sometimes individually referred to herein as " Party" and collectively as " Parties."
2. RECITALS.
2. 1 Consultant.
Consultant desires to perform and assume responsibility for the provision of professional consultant services related to the preparation of an overhead cost allocation plan and comprehensive fee study required by the City on the terms and conditions set forth in this Agreement. Consultant represents that it is experienced in providing professional consultant services related to the preparation of an overhead cost allocation plan and comprehensive fee study to public clients, is licensed in the State of California, and is familiar with the plans of City.
2.2 Project.
City desires to engage Consultant to render such services for the preparation of an overhead cost allocation plan and comprehensive fee study project (" Project') as set forth in this Agreement. ( Refer to Exhibit A for the scope of work.)
3. TERMS.
3. 1 Scope of Services and Term.
3. 1. 1 General Scope of Services. Consultant promises and agrees to furnish to the City all labor, materials, tools, equipment, services, and incidental and customary work necessary to fully and adequately supply the professional consultant services necessary for the Project (" Services"). The Services are more particularly described in Exhibit "A" attached hereto and incorporated herein by reference. All Services shall be subject to, and performed in accordance with, this Agreement, the exhibits attached hereto and incorporated herein by reference, and all applicable local, state and federal laws, rules and regulations.
3. 1. 2 Term. The term of this Agreement shall be from the date of the agreement to September 30, 2021, unless earlier terminated as provided herein. Consultant shall complete the Services within the term ofthis Agreement, and shall meet any other established schedules and deadlines.
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3. 2 Responsibilities of Consultant.
3. 2. 1 Independent Contractors, Control and Payment of Subordinates; Independent Contractor. The Services shall be performed by Consultant or under its supervision.
Consultant will determine the means, methods and details of performing the Services subject to the requirements of this Agreement. City retains Consultant on an independent contractor basis and not as an employee. Consultant shall complete, execute, and submit to City a Request for Taxpayer Identification Number and Certification (IRS FormW-9) prior to commencement of any Services under this Agreement. Consultant retains the right to perform similar or different services for others during the term of this Agreement. Any additional personnel performing 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. Neither City, nor any of its officials, officers, directors, employees or agents shall have control over the conduct of Consultant or any of Consultant's officers, employees, or agents, except as set forth in this Agreement. Consultant shall pay all wages, salaries, and other amounts due such personnel in connection with their performance of 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, income tax withholding, unemployment insurance, disability insurance, and workers' compensation insurance.
3. 2. 2 Schedule of Services. Consultant shall perform the Services expeditiously, within the term of this Agreement, and in accordance with the Schedule of Services set forth in Exhibit ` B" attached hereto and incorporated herein by reference. Consultant represents that it has the professional and technical personnel required to perform the Services in conformance with such conditions. In order to facilitate Consultant' s conformance with the Schedule, City shall respond to Consultant' s submittals in a timely manner. Upon request of City, Consultant shall provide a more detailed schedule of anticipated performance to meet the Schedule of Services.
3. 2. 3 Conformance to Applicable Requirements. All work prepared by Consultant shall be subject to the approval of City.
3. 2. 4 Substitution of Key Personnel. Consultant has represented to City that certain key personnel will perform and coordinate the Services under this Agreement. Should one or more of such personnel become unavailable, Consultant may substitute other personnel of at least equal competence upon written approval of City. In the event that City and Consultant cannot agree as to the substitution of key personnel, City shall be entitled to terminate this Agreement for cause. As discussed below, any personnel who fail or refuse to perform the Services in a manner acceptable to the City, or who are determined by the City to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project or a threat to the safety of persons or property, shall be promptly removed from the Project by the Consultant at the request of the City.
The key personnel for performance of this Agreement are as follows: Chris Fisher, Tony Thrasher, Carlos Villarreal, Priti Patel, and Robert Quaid.
3. 2. 5 City' s Representative. The City hereby designates the City Manager, or his or her designee, to act as its representative for the performance of this Agreement (" City' s Representative"). City' s Representative shall have the power to act on behalf of the City for all purposes under this Contract. The City Manager hereby designates Michelle Bannigan, Finance 2-
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Director, or her designee, as the City' s contact for the implementation of the Services hereunder.
Consultant shall not accept direction or orders from any person other than the City' s Representative or his or her designee.
3. 2. 6 Consultant' s Representative. Consultant hereby designates Chris Fisher, Vice President, or his designee, to act as its representative for the performance of this Agreement Consultant' s Representative"). Consultant' s Representative shall have full authority to represent and act on behalf of the Consultant for all purposes under this Agreement. The Consultant' s Representative shall supervise and direct the Services, using his best skill and attention, and shall be responsible for all means, methods, techniques, sequences and procedures and for the satisfactory coordination of all portions of the Services under this Agreement.
3. 2. 7 Coordination of Services. Consultant agrees to work closely with City staff in the performance of Services and shall be available to City' s staff, consultants and other staff at all reasonable times.
3. 2. 8 Standard of Care; Performance of Employees. Consultant shall perform all Services under this Agreement in a skillful and competent manner, consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California. Consultant represents and maintains that it is skilled in the professional calling necessary to perform the Services. Consultant warrants that all employees and subconsultants shall have sufficient skill and experience to perform the Services assigned to them. Finally, Consultant represents that it, its employees and subconsultants have all licenses, permits, qualifications and approvals of whatever nature that are legally required to perform the Services and that such licenses and approvals shall be maintained throughout the term of this Agreement.
As provided for in the indemnification provisions of this Agreement, Consultant shall perform, at its own cost and expense and without reimbursement from the City, any services necessary to correct errors or omissions which are caused by the Consultant' s failure to comply with the standard of care provided for herein. Any employee of the Consultant or its sub -consultants who is determined by the City to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project, a threat to the safety of persons or property, or any employee who fails or refuses to perform the Services in a manner acceptable to the City, shall be promptly removed from the Project by the Consultant and shall not be re- employed to perform any ofthe Services or to work on the Project.
3. 2. 9 Laws and Regulations. Consultant shall keep itself fully informed of and in compliance with all local, state and federal laws, rules and regulations in any manner affecting the performance of the Project or the Services, including all Cal/ OSHA requirements, and shall give all notices required by law. Consultant shall be liable for all violations of such laws and regulations in connection with Services. If the Consultant performs any work knowing it to be contrary to such laws, rules and regulations, Consultant shall be solely responsible for all costs arising therefrom. Consultant shall defend, indemnify and hold City, its officials, directors, officers, employees, agents and volunteers free and harmless, pursuant to the indemnification provisions of this Agreement, from any claim or liability arising out of any failure or alleged failure to comply with such laws, rules or regulations.
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3. 2. 10 Insurance.
3. 2. 10. 1 Time for Compliance. Consultant shall not commence Work under this Agreement until it has provided evidence satisfactory to the City that it has secured all insurance required under this section. In addition, Consultant shall not allow any subconsultant to commence work on any subcontract until it has provided evidence satisfactory to the City that the subconsultant has secured all insurance required under this section.
3. 2. 10. 2 Types of Insurance Required. As a condition precedent to the effectiveness of this Agreement for work to be performed hereunder and without limiting the indemnity provisions of the Agreement, the Consultant in partial performance of its obligations under such Agreement, shall procure and maintain in full force and effect during the term of the Agreement, the following policies of insurance. If the existing policies do not meet the Insurance Requirements set forth herein, Consultant agrees to amend, supplement or endorse the policies to do so.
a) Commercial General Liability: Commercial General Liability Insurance which affords coverage at least as broad as Insurance Services Office " occurrence" form CG 0001, with minimum limits of at least $ 1, 000, 000 per occurrence, and if written with an aggregate, the aggregate shall be double the per occurrence limit.
Defense costs shall be paid in addition to the limits.
The policy shall contain no endorsements or provisions limiting coverage for ( 1) contractual liability; ( 2) cross liability exclusion for claims or suits by one insured against another; or ( 3) contain any other exclusion contrary to the Agreement.
b) Automobile Liability Insurance: Automobile Liability Insurance with coverage at least as broad as Insurance Services Office Form CA 0001 covering " Any Auto' ( Symbol 1) with minimum limits of 1, 000, 000 each accident.
c) Professional Liability: Professional Liability insurance with minimum limits of $1, 000, 000. Covered professional services shall specifically include all work to be performed under the Agreement and delete any exclusions that may potentially affect the work to be performed ( for example, any exclusions relating to lead, asbestos, pollution, testing, underground storage tanks, laboratory analysis, soil work, etc.).
If coverage is written on a claims -made basis, the retroactive date shall precede the effective date of the initial Agreement and continuous coverage will be maintained or an extended reporting period will be exercised for a period of at least three ( 3) years from termination or expiration of this Agreement.
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d) Workers' Compensation: Workers' Compensation Insurance, as required by the State of California and Employer' s Liability Insurance with a limit of not less than $ 1, 000,000 per accident for bodily injury and disease.
3. 2. 10. 3 Endorsements. Required insurance policies shall not be in compliance if they include any limiting provision or endorsement that has not been submitted to the City for approval.
a) The policy or policies of insurance required by Section 3. 2. 10. 2 ( a) Commercial General Liability and ( c) Contractor' s Pollution Liability shall be endorsed to provide the following:
1) Additional Insured: The City, its officials, officers, employees, agents, and volunteers shall be additional
insureds with regard to liability and defense of suits or claims arising out of the performance of the Agreement.
Additional Insured Endorsements shall not ( 1) be restricted to " ongoing operations'; ( 2) exclude " contractual liability"; 3) restrict coverage to " sole" liability of Consultant; or ( 4) contain any other exclusions contrary to the Agreement. 2) Cancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty ( 30) day written notice of cancellation has been served upon the City except ten ( 10) days shall be allowed for non-payment of premium.
b) The policy or policies of insurance required by Section 3. 2. 10. 2 ( b) Automobile Liability and ( d) Professional Liability shall be endorsed to provide the following:
1) Cancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty ( 30) day written notice of cancellation has been served upon the City except ten ( 10) days shall be allowed for non- payment of premium.
c) The policy or policies of insurance required by Section 3. 2. 10. 2 ( e) Workers' Compensation shall be endorsed to provide the following:
1) Waiver of Subrogation: A waiver of subrogation stating that the insurer waives all rights of subrogation against the indemnified parties.
2) Cancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty ( 30) day 4\
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written notice of cancellation has been served upon the City except ten ( 10) days shall be allowed for non- payment of premium.
3. 2. 10. 4 Primary and Non -Contributing Insurance. All insurance coverages shall be primary and any other insurance, deductible, or self-insurance maintained by the indemnified parties shall not contribute with this primary insurance. Policies shall contain or be endorsed to contain such provisions.
3. 2. 10. 5 Waiver of Subrogation. Required insurance coverages shall not prohibit Consultant from waiving the right of subrogation prior to a loss. Consultant shall waive all subrogation rights against the indemnified parties. Policies shall contain or be endorsed to contain such provisions.
3. 2. 10. 6 Deductible. Any deductible or self-insured retention must be approved in writing by the City and shall protect the indemnified parties in the same manner and to the same extent as they would have been protected had the policy or policies not contained a deductible or self-insured retention.
3. 2. 10. 7 Evidence of Insurance. The Consultant, concurrently with the execution ofthe Agreement, and as a condition precedent to the effectiveness thereof, shall deliver either certified copies of the required policies, or original certificates and endorsements on forms approved by the City. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf. At least fifteen ( 15 days) prior to the expiration of any such policy, evidence of insurance showing that such insurance coverage has been renewed or extended shall be filed with the City. If such coverage is cancelled or reduced, Consultant shall, within ten ( 10) days after receipt of written notice of such cancellation or reduction of coverage, file with the City evidence of insurance showing that the required insurance has been reinstated or has been provided through another insurance company or companies.
3. 2. 10. 8 Failure to Maintain Coverage. Consultant agrees to suspend and cease all operations hereunder during such period oftime as the required insurance coverage is not in effect and evidence of insurance has not been furnished to the City. The City shall have the right to withhold any payment due Consultant until Consultant has fully complied with the insurance provisions of this Agreement.
In the event that the Consultant' s operations are suspended for failure to maintain required insurance coverage, the Consultant shall not be entitled to an extension of time for completion of the Services because of production lost during suspension.
3. 2. 10. 9 Acceptability of Insurers. Each such policy shall be from a company or companies with a current A.M. Best' s rating of no less than A:VII and authorized to do business in the State of California, or otherwise allowed to place insurance through surplus line brokers under applicable provisions of the California Insurance Code or any federal law.
3. 2. 10. 10 Insurance for Subconsultants. All Subconsultants shall be included as additional insureds under the Consultant' s policies, or the Consultant shall be 6 00000132996936. 2 n
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responsible for causing Subconsultants to purchase the appropriate insurance in compliance with the terms of these Insurance Requirements, including adding the City as an Additional Insured to the Subconsultant' s policies.
3. 2. 11 Safety. Consultant shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out its Services, the Consultant shall at all times be in compliance with all applicable local, state and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature ofthe work and the conditions under which the work is to be performed. Safety precautions as applicable shall include, but shall not be limited to: ( A) adequate life protection and lifesaving equipment and procedures; (B) instructions in accident prevention for all employees and subconsultants, such as safe walkways, scaffolds, fall protection ladders, bridges, gang planks, confined space procedures, trenching and shoring, equipment and other safety devices, equipment and wearing apparel as are necessary or lawfully required to prevent accidents or injuries; and ( C) adequate facilities for the proper inspection and maintenance of all safety measures.
3.3 Fees and Payments.
3. 3. 1 Compensation. Consultant shall receive compensation, including authorized reimbursements, for all Services rendered under this Agreement at the rates set forth in Exhibit " C" attached hereto and incorporated herein by reference. The total compensation shall not exceed THIRTY- FOUR THOUSAND SIX HUNDRED EIGHTY DOLLARS ($ 34, 680) Total Compensation") without written approval of City' s City Manager. Extra Work may be authorized, as described below, and if authorized, will be compensated at the rates and manner set forth in this Agreement.
3. 3. 2 Payment of Compensation.
Consultant shall submit to City a monthly itemized statement which indicates work completed and hours of Services rendered by Consultant. The statement shall describe the amount of Services and supplies provided since the initial commencement date, or since the start of the subsequent billing periods, as appropriate, through the date of the statement. City shall, within 45 days of receiving such statement, review the statement and pay all approved charges thereon.
3. 3. 3 Reimbursement for Expenses. Consultant shall not be reimbursed for any expenses unless authorized in writing by City.
3. 3. 4 Extra Work. At any time during the term of this Agreement, City may request that Consultant perform Extra Work. As used herein, " Extra Work" means any work which is determined by City to be necessary for the proper completion of the Project, but which the Parties did not reasonably anticipate would be necessary at the execution of this Agreement.
Consultant shall not perform, nor be compensated for, Extra Work without written authorization from the City.
3. 3. 5 Prevailing Wages. Consultant is aware of the requirements of California Labor Code Section 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Section 16000, et seq., (" Prevailing Wage Laws"), which require the payment of prevailing wage rates and the performance of other requirements on " public works" and " maintenance" 7 sta
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projects. If the Services are being performed as part of an applicable " public works" or maintenance" project, as defined by the Prevailing Wage Laws, and ifthe total compensation is 1, 000 or more, Consultant agrees to fully comply with such Prevailing Wage Laws. City shall provide Consultant with a copy of the prevailing rates of per diem wages in effect at the commencement of this Agreement. Consultant shall make copies of the prevailing rates of per diem wages for each craft, classification or type ofworker needed to execute the Services available to interested parties upon request, and shall post copies at the Consultant' s principal place of business and at the project site. It is the intent of the parties to effectuate the requirements of sections 1771, 1774, 1775, 1776, 1777. 5, 1813, and 1815 ofthe Labor Code within this Agreement, and Consultant shall therefore comply with such Labor Code sections to the fullest extent required by law. Consultant shall defend, indemnify and hold the City, its elected officials, officers, employees, agents and volunteers free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws.
3. 4 Accounting Records.
3. 4. 1 Maintenance and Inspection. Consultant shall maintain complete and accurate records with respect to all costs and expenses incurred under this Agreement. All such records shall be clearly identifiable. Consultant shall allow a representative of City during normal business hours to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement. Consultant shall 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.
3. 5 General Provisions.
3. 5. 1 Termination of Agreement.
3. 5. 1. 1 Grounds for Termination. City may, by written notice to Consultant, terminate the whole or any part of this Agreement at any time and without cause by giving written notice to Consultant of such termination, and specifying the effective date thereof, at least seven (7) days before the effective date of such termination. Upon termination, Consultant shall be compensated only for those services which have been adequately rendered to City, and Consultant shall be entitled to no further compensation. Consultant may not terminate this Agreement except for cause.
3. 5. 1. 2 Effect of Termination. If this Agreement is terminated as provided herein, City may require Consultant to provide all finished or unfinished Documents and Data and other information of any kind prepared by Consultant in connection with the performance of Services under this Agreement. Consultant shall be required to provide such document and other information within fifteen ( 15) days ofthe request.
3. 5. 1. 3 Additional Services. In the event this Agreement is terminated in whole or in part as provided herein, City may procure, upon such terms and in such manner as it may determine appropriate, services similar to those terminated. 8-
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3. 5. 2 Delivery ofNotices. All notices permitted or required under this Agreement shall be given to the respective parties at the following address, or at such other address as the respective parties may provide in writing for this purpose:
Consultant:
City:
Willdan Financial Services
27368 Via Industria, Suite 200
Temecula, CA 92590
Atm.: Chris Fisher, Vice President
City of Stanton
7800 Katella Avenue
Stanton, CA 90680
Attn: Michelle Bannigan, Finance Director
Such notice shall be deemed made when personally delivered or when mailed, forty- eight 48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to the party at its applicable address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service.
3. 5. 3 Ownership of Materials and Confidentiality.
3. 5. 3. 1 Documents & Data; Licensing of Intellectual Property. This Agreement creates a non-exclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, and other intellectual property embodied in plans, specifications, studies, drawings, estimates, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings or data magnetically or otherwise recorded on computer diskettes, which are prepared or caused to be prepared by Consultant under this Agreement (" Documents & Data"). Consultant shall require all subconsultants to agree in writing that City is granted a non- exclusive and perpetual license for any Documents & Data the subconsultam prepares under this Agreement. Consultant represents and warrants that Consultant has the legal right to license any and all Documents & Data.
Consultant makes no such representation and warranty in regard to Documents & Data which were prepared by design professionals other than Consultant or provided to Consultant by the City. City shall not be limited in any way in its use of the Documents and Data at any time, provided that any such use not within the purposes intended by this Agreement shall be at City' s sole risk.
3. 5. 3. 2 Confidentiality. All ideas, memoranda, specifications, plans, procedures, drawings, descriptions, computer program data, input record data, written information, and other Documents and Data either created by or provided to Consultant in connection with the performance of this Agreement shall be held confidential by Consultant. Such materials shall not, without the prior written consent of City, be used by Consultant for any purposes other than the performance of the Services. Nor shall such materials be disclosed to any person or entity not connected with the performance of the Services or the Project. Nothing furnished to Consultant which is otherwise known to Consultant or is generally known, or has become known, to the related 9-
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industry shall be deemed confidential. Consultant shall not use City' s name or insignia, photographs of the Project, or any publicity pertaining to the Services or the Project in any magazine, trade paper, newspaper, television or radio production or other similar medium without the prior written consent of City.
3. 5. 3. 3 Confidential Information. The City shall refrain from releasing Consultant' s proprietary information (" Proprietary Information") unless the City' s legal counsel determines that the release of the Proprietary Information is required by the California Public Records Act or other applicable state or federal law, or order of a court of competent jurisdiction, in which case the City shall notify Consultant of its intention to release Proprietary Information.
Consultant shall have five ( 5) working days after receipt ofthe Release Notice to give City written notice of Consultant' s objection to the City' s release of Proprietary Information. Consultant shall indemnify, defend and hold harmless the City, and its officers, directors, employees, and agents from and against all liability, loss, cost or expense ( including attorney' s fees) arising out of a legal action brought to compel the release of Proprietary Information. City shall not release the Proprietary Information after receipt of the Objection Notice unless either: ( 1) Consultant fails to fully indemnify, defend ( with City' s choice of legal counsel), and hold City harmless from any legal action brought to compel such release; and/ or (2) a final and non -appealable order by a court of competent jurisdiction requires that City release such information.
3. 5. 4 Cooperation; Further Acts. The Parties shall fully cooperate with one another, and shall take any additional acts or sign any additional documents as may be necessary, appropriate or convenient to attain the purposes of this Agreement.
3. 5. 5 Attorney' s Fees. If either party commences an action against the other party, either legal, administrative or otherwise, arising out ofor in connection with this Agreement, the prevailing party in such litigation shall be entitled to have and recover from the losing party reasonable attorney' s fees and all other costs of such action.
3. 5. 6 Indemnification.
To the fullest extent permitted by law, Consultant shall defend (with counsel of City' s choosing), indemnify and hold the City, its officials, officers, employees, volunteers and agents free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury of any kind, in law or equity, to property or persons, including wrongful death, in any manner arising out of, pertaining to, or incident to any alleged acts, errors or omissions, or willful misconduct of Consultant, its officials, officers, employees, subcontractors, consultants or agents in connection with the performance of the Consultant's Services, the Project or this Agreement, including without limitation the payment of all damages, expert witness fees and attorney' s fees and other related costs and expenses. Consultant' s obligation to indemnify shall not be restricted to insurance proceeds, if any, received by the Consultant or the City, its officials, officers, employees, agents or volunteers.
If Consultant' s obligation to defend, indemnify, and/ or hold harmless arises out of Consultant' s performance as a " design professional" ( as that term is defined under Civil Code section 2782. 8), then, and only to the extent required by Civil Code section 2782. 8, which is fully incorporated herein, Consultant' s indemnification obligation shall be limited to claims that lo- otsl
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arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant, and, upon Consultant obtaining a final adjudication by a court of competent jurisdiction, Consultant' s liability for such claim, including the cost to defend, shall not exceed the Consultant' s proportionate percentage of fault.
3. 5. 7 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.
3. 5. 8 Governing Law. This Agreement shall be governed by the laws of the State of California. Venue shall be in Orange County.
3. 5. 9 Time of Essence. Time is of the essence for each and every provision of this Agreement.
3. 6 City' s Right to Employ Other Consultants. City reserves right to employ other consultants in connection with this Project.
3. 7 Successors and Assigns. This Agreement shall be binding on the successors and assigns of the parties.
3. 8 Assignment or Transfer. Consultant shall not assign, hypothecate, or transfer, either directly or by operation of law, this Agreement or any interest herein without the prior written consent of the City. Any attempt to do so shall be null and void, and any assignees, hypothecates or transferees shall acquire no right or interest by reason of such attempted assignment, hypothecation or transfer.
3. 9 Construction; References; Captions. Since the Parties or their agents have participated fully in the preparation of this Agreement, the language of this Agreement shall be construed simply, according to its fair meaning, and not strictly for or against any Party. Any term referencing time, days or period for performance shall be deemed calendar days and not workdays.
All references to Consultant include all personnel, employees, agents, and subconsultants of Consultant, except as otherwise specified in this Agreement. All references to City include its elected officials, officers, employees, agents, and volunteers except as otherwise specified in this Agreement. The captions of the various articles and paragraphs are for convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content, or intent of this Agreement.
3. 10 Amendment; Modification. No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing and signed by both Parties.
3. 11 Waiver. No waiver of any default shall constitute a waiver of any other default or breach, whether of the same or other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by a Party shall give the other Party any contractual rights by custom, estoppel, or otherwise.
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3. 12 No Third -Party Beneficiaries. There are no intended third -party beneficiaries of any right or obligation assumed by the Parties.
3. 13 Invalidity; Severability. If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.
3. 14 Prohibited Interests. Consultant maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Consultant, to solicit or secure this Agreement. Further, Consultant warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation ofthis warranty, City shall have the right to rescind this Agreement without liability. For the term of this Agreement, no member, officer or employee of City, during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.
3. 15 Equal Opportunity Employment. Consultant represents that it is an equal opportunity employer and it shall not discriminate against any subconsultant, employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex or age. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination. Consultant shall also comply with all relevant provisions of City' s Minority Business Enterprise program, Affirmative Action Plan or other related programs or guidelines currently in effect or hereinafter enacted.
3. 16 Labor Certification. By its signature hereunder, Consultant certifies that it is aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for Worker' s 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.
3. 17 Authority to Enter Agreement. Consultant has all requisite power and authority to conduct its business and to execute, deliver, and perform the Agreement. Each Party warrants that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and bind each respective Party.
3. 18 Counterparts. This Agreement may be signed in counterparts, each of which shall constitute an original.
3. 19 Declaration of Political Contributions. Consultant shall, throughout the term of this Agreement, submit to City an annual statement in writing declaring any political contributions of money, in-kind services, or loan made to any member of the City Council within the previous twelve- month period by the Consultant and all of Consultant' s employees, including any employee(s) that Consultant intends to assign to perform the Services described in this Agreement.
3. 20 Subcontracting.
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3. 20. 1 Prior Approval Required. Consultant shall not subcontract any portion of the work required by this Agreement, except as expressly stated herein, without prior written approval of City. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement.
Signatures on following page.]
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IN ITNESS WHEREOF, the parties have executed this Professional Services Agreement on this day of January, 2021.
CITY OF STANTON
By:
Jarad & Werr5iand
City Manager
ATTEST:
y OFS
APPROVED' AS TO FORM
By: zv
I-IongDao Nguyen
Best Best & Krieger LLP
City Attorney
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WILLDAN FINANCIAL SSEERRV- ICES
By: /
Chris Fisher
Vice President
ByjWaS/r, ) YWU
Rebekah Smith
Assistant Secretary
ATTACHMENT B
D. Questions Response to the Scope of Services
Willdan Financial Services (" Willdan") is confident that we can meet the City of Stanton' s request for services for an Overhead Cost Allocation Plan and Comprehensive User Fee Study. The overall objective of this project will be to develop an updated schedule of fees for City services, that accounts for the true costs of providing those services.
The end products will include user- friendly Excel -based models, which City staff will retain, and which can be easily updated to add or remove services and/ or costs, update budgets in future years, determine the proper allocation of expenditures, and on-going full cost of services provided by the City. Most importantly, we will ensure that the results and recommendations are clear and understandable, defensible, and easily implementable.
For these studies, we will meet directly with departmental representatives at the City at the beginning of the project, to discuss the approach and process for the studies. Discussions will include ways to combine tasks and efforts among the cost allocation plan and user fee study components to maximize efficiencies and ensure adherence to specified timelines.
A key building block of the calculation of updated fees is the development of defensible indirect overhead rates that reflect the cost of support services provided by the City' s central service departments to the operating groups that provide end- user services to the public and customers of the City.
The completion of a CAP is a key component and first step in the analysis necessary to calculate the cost of providing services. A well thought out CAP ensures that indirect costs associated with central overhead services, such as finance or city clerk, are appropriately allocated to operating departments, and ultimately included as a cost component of fees for services. We will work collaboratively with City staff to identify the overhead support services that are provided to operating departments in Stanton and develop a fair and defensible means of allocating these costs. Our unique model allows us to provide a CAP that will also be compliant with 2 CFR Part 200 Federal regulations related to cost reimbursement and grant funding, formerly known as OMB A-87 and 2 CFR Part 225 guidelines, which have now been superseded by the Omni Circular. The new circular did not completely overhaul the guidelines, and the intent is still the same, but it did add new limitations to consider and incorporate into a compliant CAP.
Rather than a costly and
inflexible proprietary software,
which can require expensive
licensing fees, Willdan builds
models utilizing Excel, from the
ground up, employing the City' s
budget as the gauge. This
model, which is then the City' s
to retain, gives City Staff the
control to make on -the -fly
adjustments and updates.
For the Comprehensive Fee Study, we will work directly with personnel at the City who provide services and interact directly with residents and customers, to understand the personnel and procedures involved. By carefully examining these processes, we will be able to identify associated costs such as direct staff costs ( salaries and benefits) associated with personnel involved in the activities, and appropriate overhead allocations from both the department and city levels.
For a successful and effective engagement, it is important to have a thorough understanding of specific City policies and objectives, the structure and organization of the City, and the relationships between the central and operating departments. We bring years of successful experience working directly with hundreds of cities throughout California.
Willdan possesses the resources, practical experience, creative thinking, and collaborative consulting skills necessary to complete this important project. Key distinct advantages that Willdan brings to the City include the following:
On-site Data Gathering
Our experience has taught us that working together, via face- to- face discussions, is the most efficient and thorough way to ensure that results are accurate, and that studies are completed in a timely manner, which again, is critical in this proposed engagement.
Consequently, through on- site interviews with your staff, Willdan will collect the majority of required data for studies.
This method is better than the typical " time and motion surveys" that are provided to agency staff when studies like these are conducted. This process ensures that we gather the data we need in one coordinated step, rather than having to go through repeated follow- up and clarification.
This approach and the dedication of our staff will help ensure we meet the City's timeline and objectives and provide important information to City staff and the Council as soon as possible. of St ° 6
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Public Engagement
Our models and project approach are geared toward delivering our work on schedule and presenting our analysis results at public meetings and Council workshops. While we understand that the City Council and local business community may be generally supportive of increasing fees where necessary, it will be important to present recommendations to them in a way that clearly demonstrates the rationale and supporting analysis.
The Willdan Team is experienced at communicating complex analytical results in a manner that is easy to understand by non -finance - oriented individuals and facilitates discussion. Our proposed principal - in -charge for this engagement has coordinated or participated in numerous public and staff workshops regarding fees and cost of service -based charges. As previously mentioned, our objective is to provide useful, detailed information, and present recommendations to the City Council and public in a way that clearly demonstrates the rationale and supporting analysis. Our experience ensures that we can meet this objective.
User- friendly Models and Reports
Willdan prides itself on creating user- friendly Excel -based models that the City can The model will be retain and conducting our analysis and developing the models collaboratively with City staff. With City staffs immediate input and collaboration, Willdan will developed to allow the design extremely flexible, intuitive Excel -based models. In the future, as the City City to run " what -if" assumes new responsibilities, modifies existing processes, and/ or eliminates " scenarios to address unnecessary services or programs, the models will be capable of adding or deleting possible changes in funds, objects, departments, programs, staff positions, and activities. Willdan ! i staffing levels, understands that issues facing the City are unique; consequently, we design our ! working hours, etc. models to match your immediate and desired needs to ensure that end -results exceed staff expectations rather than using an inflexible proprietary software.
These models are then the City's to retain, after our services are completed, and allows for the creation of revenue projections, highlighting potential new revenues, and levels of subsidy.
A key element of these studies is presenting results and recommendations in a straightforward manner, that allows Council and staff to confidently make fee setting policy decisions and understand the impacts of those decisions.
Rather than using an inflexible proprietary software program, we construct our models from the ground up, as previously discussed, mirroring the City' s budget format wherever possible. As a result, the information contained in our models are easy for City staff to interpret, and the familiar software ensures ease of navigation. As the models are being designed and constructed, we will work together with City staff to determine the best and most effective features to include. After the project is completed, we will provide training, so that staff can independently and efficiently evaluate the effects of changes in certain factors. Created directly from the models, our reports clearly and graphically illustrate the full cost recovery level of fee programs and provide projections of revenue from fee programs.
The following describes our proposed approach, and work plan to prepare an Cost Allocation Plan and Comprehensive User Fee Study.
The purpose of this cost allocation plan engagement is to ensure that the City of Stanton is maximizing the recovery of indirect costs from identified operating departments, as well as enterprise and other chargeable funds and capital projects. Furthermore, a sound cost allocation plan is a foundational element of a user fee study, and the development of internal hourly rates, including CIP billing rates. We will work closely with staff in identifying the proper balance of allocation factors appropriate for the City.
To achieve the maximum cost recovery objective, the City must have a method of identifying and distributing administrative costs that is fair, comprehensive, well documented, and fully defensible. A cost allocation plan coupled with comprehensive overhead rates will enable the City to achieve this goal.
The allocation models utilize an iterative method which is the most accurate allocation methodology. Unlike a direct or step- down" methodology, an iterative method uses the chosen distribution bases and allocates central service costs iteratively until all allocable costs have been distributed.
Using this method, the model can detail the allocation for each central function individually for complete transparency and accountability, while removing bias that might result from the order in which allocations occur in a step-down approach. A direct methodology is essentially a one -iteration methodology, while a step- down method is typically only two iterations and is less precise and unable to accurately track the allocations from start to finish. - St nfoo
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Approach for Managing the Project
Willder' s " hands- on" supervision of Cost Allocation Plan studies, include the following methods:
Effective Project Management — Principal -in -Charge Chris Fisher will manage the entire project with an eye toward high responsiveness, while ensuring that all stakeholders are " on board" with the direction of the project, as well as with the final results. Mr. Fisher will ensure that regular status updates are provided to City staff, conference calls are scheduled, and that in- person meetings are conducted (as necessary).
Adherence to Time Schedule — Willdan recognizes that the use of " timelines" is highly effective in meeting all required deadlines. To keep the project on schedule, there are several tasks that must be completed in a timely manner. Therefore, we will present a project timeline at the kick- off meeting that should be closely followed.
Although the establishment of an experienced project team and a detailed project timeline work extremely well in general, Willdan understands that outside influences can create uncontainable situations for everyone involved in the project. In rare circumstances like these, our team quickly adapts to changes, and communicates our recommended schedule adjustments to the City.
Approach in Communicating with the City
Willdan staff is accustomed to interfacing with local government councils, boards, staff, community organizations, and the public in general in a friendly and helpful manner; we are always mindful that we represent the public agency.
We are sensitive to the need of delivering a quality product, with the highest level of service and professionalism.
Therefore, as the work on the project progresses, we understand that it will be necessary for our staff to work closely with you and City personnel. To accomplish this, we employ a variety of tools, including monitoring project status and budget costs; and ensuring effective communication through several options that are based on the City' s preferences.
Experience with Development Service Processes
A unique aspect of our firm is our relationship with our Engineering Division. For many agencies throughout California and other Western states, this division provides contracted services in planning, engineering, and building and safety.
When conducting cost recovery studies, we regularly consult with our engineering and land -development staff of experts on development -related issues. By working with our planners, engineers, and building officials, we understand development -related agency service procedures and workflow functions, which often make the entire user fee study process smoother for your staff.
Comprehensive User Fee Study Methodology
To comprehensively update fees, the City should develop a comprehensive user fee schedule that accurately accounts for the true cost of providing services. Once the study is complete, the fee study model must be flexible so that the City can add, delete, and revise fees in the future. To meet this goal, we will bring our expertise and unique perspectives to your fee study by approaching the project with these three principles:
1) Defensibility
Our user fee projects have not been legally challenged since the inception of this practice area in our firm. We have accomplished this by closely working with legal counsel familiar with user fee studies, our engineering division and with agency staff. In this way, we can tailor the correct approach to ensure full cost recovery combined with a sound and reasonable basis for each user fee you implement.
While Proposition 218 does not directly apply to non - property - related fees, we employ principles from this important constitutional article to make certain that your user fee and rate schedule is developed with fairness, equity, and proportionate cost recovery principles in mind. With the addition of Proposition 26, Willdan will review each analyzed user fee for compliance and appropriateness to ensure continued defensibility. 2) Project and Staff Time
The City must have a sound and technically defensible fee schedule to ensure costs are appropriately recovered, as applicants approach the City for its services. Our standards and approaches serve to get to the issues of your fee study quickly.
Starting with the project kick- off, we will make certain that your staff understands the purpose and scope of the study and its corresponding on- site departmental interview. As Willdan is able to communicate directly with the service providers, this face-to- face interaction provides valuable time estimates. 3) Responsiveness
We take great pride in providing responsive service to our client agencies. Frequent communication is critical to a successful user fee study experience. We will provide a list of data requirements in advance of the project kick- off. of St fo
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ATTACHMENT B
Due to this simple step, the introductory meeting can focus on the survey input process, answering questions, determining policy goals, and defining next steps in the project. We will follow up weekly with you at each step in the fee study process to make sure that staff " buys in" to the fee study approach and results.
Approach
Our approach to preparing the user fee study and documentation for Stanton includes:
Close coordination with your staff to devise a consensus approach. Different programs and/ or different service delivery methods will necessitate different approaches. We will discuss specific pros and cons with City staff as we determine which methods work best for each fee category; Strict adherence to key legal and policy issues with regard to user fees, including the percent of cost recovery that the City seeks to achieve. A user fee shall not be set higher than the reasonable cost of providing a fee -generating service. Our approach provides you with a fee schedule that achieves maximum legal cost recovery while ensuring that each fee is supported by technically defensible documentation; and Technical analysis necessary to ensure State compliance, and to anticipate and resolve potential policy issues using a combination of industry standards as well as City specific methods.
As described below, there are two basic approaches to calculating user fees:
Approach 1: Case Study Method
This is also sometimes referred to as a cost build- up
approach. Using a time and materials approach, the
Case Study Method" examines the tasks, steps and City
staff involved in providing a particular ` unit' of service, such as a permit review, and then uses that information to develop estimates of the actual labor and material
costs associated with providing a unit of service to a
single user. It is often used when a service is provided on a regular basis, and staff and other costs associated with the service can be segregated from available budget data.
A typical case study fee model should comprise the
following three general cost layers:
1) Central Services Overhead: This category may
involve such costs as labor, services, and supplies that benefit more than one department, division, or project.
The exact benefits to specific areas are impossible to
ascribe to a single activity.
Examples are purchasing, human resources, and liability insurance. As part of the user fee study, these costs are calculated in the overhead cost review.
Central
Services
Overhead
Departmental
Overhead
2) Department Overhead: This category may include
expenses related to such items as office supplies,
outside consultants, and membership dues. It may
include management, supervision, and administrative support that are not provided to a direct fee -generating service.
Typically, these items are charged, on an item -by -item basis, directly to the department, division, or project. 3) Personnel Costs: This category refers to direct salary and benefit costs of staff hours spent on providing a fee - generating service ( e. g., on- site building inspector).
Approach 2: Average Cost Method
This is also sometimes referred to as a programmatic approach, because it looks at costs at a program level, and then allocates them to participants on an occurrence basis. By taking total service costs across a substantial sample period a year) and dividing by the total number of service units delivered over that same period, costs per unit of service is estimated.
This approach is useful when services or programs are provided in a more aggregate manner, where it might be difficult to identify a specific sequence of steps associated with one user or participant; or where it is not feasible to costeffectively segregate costs associated with specific activities. of sta Y1t WILLDAN EXHIBIT A - Page 4 of 11 ig` a
ATTACHMENT B
Work Plans
Our proposed work plans, described in detail by task, are provided below. We propose to maximize efficiency and cost- effectiveness by combining meetings and data gathering efforts between the cost allocation plan and user fee study wherever possible.
We explain how each task will be accomplished and identify associated meetings and deliverables. We want to ensure our scope provides quality and clarity and is responsive to the City' s needs and specific local circumstances. We will work in concert with the City to adjust scopes as needed during the course of the studies.
Overhead and OMB Compliant Cost Allocation plan
This proposed scope of services addresses the completion of both the full and OMB compliant versions of the Cost Allocation Plan ( CAP). We have noted where activities specific to the OMB compliant plan occur.
Task 1: Initial Document Request
Objective: Initial due diligence.
Description: Prior to the kick- off call, relevant documentation will be obtained and reviewed in order to enhance our understanding of the City' s current cost allocation plan and internal structure of the agency. A written request for specific data will be sent to the City. The data provided in this task will provide the building blocks for later model development.
Our request may include ( but is not limited to):
Detailed budget and accounting data;
Prior year' s financial data, salary, position and staffing data; Organizational structure;
Prior cost allocation plan and/ or user fee documentation and models; and Data related to various allocation bases that may be incorporated as part of the methodology, i. e.
City Council agenda frequencies by department, AP/ AR transactions by department, IT equipment distribution by department, etc.
Deliverables: Willdan: Submit information request to City.
City: Provide requested data to Willdan ( prior to Task 2, Kick- off Call/ Refine Scope). We will follow up with the City to confirm in writing the data that we have received, or which is still outstanding.
Task 2: Kick- off Conference Call / Refine Scope
Objective: Confirm project goals and objectives. Identify and discuss policy issues related to the study and determine appropriate fee categories.
Description: Willdan will identify and discuss policy issues typically raised in conjunction with these studies and address data gaps in order to gain a full understanding of the City' s goals for the cost allocation plan.
We will establish effective lines of communication and processes for information gathering and review.
We will also discuss costs that may not be allocable for OMB purposes, and the potential impact on the OMB version of the CAP.
During this call, we will ask that the City assign a project manager to serve as its primary contact. The selected City project manager will ensure that available data is provided to Willdan in a timely manner, thereby maintaining adherence to the project' s schedule.
We will obtain and review the current cost allocation methodology and discuss with City staff. The objective of this review is to determine specific areas of focus as they relate to the City' s objectives, and to discuss and evaluate current and potential allocation factors.
Meetings: One ( 1) project kick- off conference call to initiate the project, discuss data needs and methodologies and to address policy issues. We would propose to conduct the user fee study kick- off during this same call, to maximize efficiency and cost effectiveness of staff and Willdan time.
Deliverables: Willdan: If needed, a revised project scope and schedule.
City: Provide further data requirements and select/ introduce City's project manager. otSfr
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ATTACHMENT B
Task 3: Gather Staffing Information and Develop Cost Allocation Plan Model Description: This task involves the gathering of specific information, directly from City staff, through interviews and discussion, related to the functions served by indirect staff and the departments served by their activities. This task also focuses on the development of, and/ or adjustment of existing, allocation bases, and the development and testing of a model that will ultimately be used to calculate the proper cost allocations derived from data gathered in prior tasks.
The model will be developed to incorporate any recent changes in the provision of City services, and fully allocate central service costs.
The model will also be developed to allocate only those costs eligible under 2 CFR Part 200. This is accomplished by loading relevant data into the model, identifying which costs are not allocable under the OMB guidelines. The OMB Super Circular compliant model is valuable as the City may receive Federal or State grant funding that mandates compliance with Federal OMB regulations.
We will utilize budget and organizational information, and other required information gathered from City staff to complete the work in this task. Specific discussions will be held to discuss bases, how central overhead services are provided to and utilized by other departments, cost categories and allocation criteria, and how these will factor into the overall cost allocation methodology.
The model and methodology will also produce indirect cost rates. These rates will be suitable for a variety of uses, including incorporation into the User Fee Study' s personnel rates, billing to CIP projects, and in the OMB Super Circular compliant CAP, to Federal grants.
Meetings: Online meetings with staff to understand structure and operations as model and allocation bases are developed. Key staff will be interviewed to best understand central overhead staffing and functions and the departments served.
Deliverables: Willdan: One ( 1) user- friendly model in Microsoft Excel format that provides both a full cost allocation plan and an OMB Super Circular compliant cost allocation plan.
Task k: Test and Review CostAllocation Methodology
Objective: Test and review model and results with City.
Description: The draft cost allocation plan model will be reviewed with City staff, and adjusted as necessary, to ensure that preliminary allocations provide an accurate depiction of how the central overhead costs should be borne by the operating programs and funds. Over the past several years, we have successfully integrated online meetings by using WebExTm as an element to our approach. This allows us to remotely guide staff through the model review and allows you the opportunity to interactively change inputs and test approaches.
Meetings: One ( 1) online meeting and demonstration with City Staff to review the model Deliverables: Willdan and City: Draft cost allocation plan model review.
Task 5: Prepare and Present Draft Report
Objective: Prepare the draft cost allocation report.
Description: This task involves the draft report preparation. The cost allocation plan' s background, model methodologies, and results will be discussed; calculations and supporting data will be presented textually and in easily understood tables and provided to the City.
Meetings: One ( 1) online meeting to present the draft report to City Staff, Deliverables: Willdan: Draft report for City review and input.
City: Review of draft report, with comments, and edits.
Task 6: Discuss and Revise Report
Objective: Review of draft report, cost distribution methods, and model.
Description: An in- depth review of the draft report and model will be conducted to arrive at an optimum allocation method for each expenditure type.
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ATTACHMENT B
Often, through the course of an engagement, comments usually revolve around issues of understandability; appropriate levels of enterprise funds' cost recovery, etc.; ease of calculation; and overhead costs' distribution methods.
Our reports are structured to include both the full and OMB compliant plan, but in the course of review if a separate report is desired for each or just one of the plans, they will be split.
Following a round of comments from City staff concerning the draft report, the final report will be prepared for presentation to the Council.
Meetings: One ( 1) conference call with City staff to review the report with changes and revisions.
Deliverables: Draft report, and revised draft/final report.
Task 7: Prepare and Present Final Report and Model
Objective: Prepare and present the final report to City Council. Educate City staff on the operation and use of the model for future modifications.
Description: This task is the culmination of the cost allocation plan project. Based on staff comments on the draft report, Willdan will prepare the final report for presentation to City Council.
Meetings: One ( 1) meeting with the City Council to present the final plan if necessary. This meeting would be held in conjunction with the presentation of the user rate study results.
We will also provide staff training on the operation and use of the model.
Deliverables: Willdan: Provide one ( 1) electronic PDF file copy of the final report and models (full and OMB Super Circular compliant); and five (5) bound copies, and one ( 1) unbound copy to the City. Using Microsoft Word and Excel, an updateable electronic copy of the study and models, as well as related schedules, will also be provided on CD/ ROM.
Comprehensive User F= ee Shady
Task 1: Initial Document Request
Objective: Initial due diligence; obtain study -related data.
Description: Prior to the kick-off meeting, we will obtain and review relevant documentation to further enhance our understanding of the services, fees, and rates to be studied. A written request for data will be sent to the City. Please note that Time Survey data is not part of this request and will be gathered during the on- site interviews described in Task 5.
We will request information and documentation on current fees and fee programs, activity levels, and budget and staffing information ( to the extent not already available) related specifically to programs and activities which have associated fees, and for which the City has this level of detail.
Deliverables: Willdan: Submit information request to City.
City: Provide requested data to Willdan ( prior to Task 3, Kick-off Meeting/ Refine Scope). As with the cost allocation plan, we will follow up with the City to confirm receipt of requested data and information and highlight data elements that are outstanding.
Task 2: Compile Inventory of Current and Potential Fees Objective: Willdan will identify a schedule of fees and methodology for calculating the fees.
Description: Based on the results of the initial document request and independent research, incorporate into our model the existing fees, provided by the City, to comprise the parameters of the fee study.
Meetings: It is possible that a conference call with the City may be necessary to discuss new fees to implement or existing fees that may no longer be required.
Deliverables: Willdan: One ( 1) draft list of current fees based on initial data provided ( to be discussed and finalized during the kick- off call).
City: Review completed fee schedule with comments/ revisions to be discussed during the kick- off meeting.
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ATTACHMENT B
Task 3: Kick- off Conference Call / Refine Scope
Objective: Confirm goals and objectives for the User Fee Study. Identify and resolve policy issues typically raised by a User Fee Study, address gaps in data, and refine appropriate existing or new fee categories ( based on Task 2).
Description: Verify our understanding of the City' s goals, the City' s cost -recovery policy for user fees, and to fill any gaps in data/ information necessary for the project. It is important for the City and Willdan to identify and address any foreseeable problems and maintain open communication throughout the process.
During this call, we will ask that the City identify a project manager who will serve as the primary contact for the project. The project manager shall have responsibility for ensuring that all available data is provided in a timely manner, thereby maintaining adherence to the project' s schedule.
Meetings: One ( 1) project kick- off call to initiate the entire project, discuss data needs, and address policy issues.
This will be held in conjunction with the kick- off for the cost allocation plan. As mentioned in the cost allocation plan work plan, we suggest combining the kick- off calls to increase efficiency.
Deliverables: Willdan: 1) Revised project scope and schedule ( if needed); and 2) brief summary of policy decisions if needed).
City: 1) Provide further data needs; and 2) determine/ introduce City' s project manager.
Task k: Develop User Fee Model
Objective: Develop and test model.
Description: This task involves the development of the model ultimately used to calculate the departmental fees, based on data and information gathered in previous tasks and in the Time Survey Interviews described in Task 5. To ensure that City policies are met through the imposition of the calculated fees, the model will be formatted to include appropriate costs.
Key model inputs will include staff and allocated overhead costs per position, and relevant budget data on salaries and benefits. Most of this information will be developed during the cost allocation plan phase of this project and will be incorporated directly into the user fee model. We will request clarification and/or additional data if necessary.
The model will build upon the cost allocation plan results, to provide an allocation of administrative and overhead costs to fee related activities and departments providing services to customers, so that fees and billable rate schedules incorporate applicable costs. Furthermore, the fees and rates charged to customers will also reflect the cost of the services being provided, to the extent possible given policy and/ or political considerations.
Deliverables: Willdan: One ( 1) user-friendly model in Microsoft Excel format, which, when finalized, City staff can use to calculate fee changes annually, or as often as deemed appropriate by the City Council.
Task 5: Time Survey. interviews and On- site information Gathering Objective: Meet with City staff to complete Time Surveys and understand service delivery processes.
Description: In order to assist staff with the completion of the survey worksheets, we will schedule one ( 1) full day of on- site meetings with staff; however, the number of meetings needed may vary depending on the number of staff and departments involved.
The Willdan Team will conduct interviews with supervisors/ managers, as well as other staff, as deemed appropriate and/ or necessary, from each department involved in the user fee study to determine the average time required by City staff to provide each of the services for which a fee is collected.
The fee model is designed so that full cost recovery fees are calculated immediately upon input of staff time. These full costs are also compared to current cost recovery levels. This will allow Willdan and City staff to conclude with a final meeting to review the draft full cost recovery fees, and adjust any times as necessary, once all information has been compiled and input into the fee model. We will schedule the interviews with staff to minimize any disruption to their normal workflow.
Meetings: One ( 1) full business day of on- site meetings/ staff interviews. In light of ongoing public health mandates associated with COVID- 19, we will discuss with the City whether these meetings need to be conducted via WebEx or Zoom. We have been using these tools during the course of the shutdowns and they have proven effective and successful.
Deliverables: Willdan and City: Time surveys and draft full cost recovery fees. r.
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Task 6: Common Fees Comparison
Objective: Examine selected user fees charged by up to five ( 5) comparable cities in Orange County, or jurisdictions that are similar to the City of Stanton.
Description: We will access and use our knowledge of other jurisdictions to benchmark the City' s five ( 5) most common fees or highest yielding fees with comparable jurisdictions agreed.
Fee schedules are rarely readily or directly comparable from agency to agency due to definitional and operational differences. For example, a grading permit in one jurisdiction may include the plan check service, while the same permit in another jurisdiction may not, resulting in similar sounding services with widely varying costs. For this reason, Willdan takes a selection of the City' s most commonly used and/ or highest yielding fees.
The survey will contain the following, a comparison of common or similar fees and charges used by the City and other jurisdictions; current and proposed fees and charges unique to the City of Stanton; fees and charges used by other public entities not currently used in the City; and If possible, identify characteristics and processes unique to the City that account for significant variances in fees and charges used by other jurisdictions.
Deliverables: Willdan: Recommendations provided in Task 8 will incorporate the data gathered during our examination.
Task 7: Data Analysis and Final User Fee Schedule
Objective: Incorporate information obtained from on- site surveys to fully develop model.
Description: We will update the model, based on information received during the on- site surveys, to generate a comprehensive user fee schedule. In addition, it is very common that a supplemental data request may be necessary, based on new fees identified that the City is not currently collecting. Where appropriate, we will suggest and discuss with staff alternate approaches to existing fee programs ( i. e. building fees) and suggest potential areas where fees could be collected where they are not currently.
We will present the full cost recovery level for fees, both current and projected under the new calculated fees, and revenue projections, given certain assumptions about the levels of subsidy for different fees. Current levels of cost recovery will be compared to actual full costs calculated during the course of this study. Cost will be calculated at reasonable activity levels and include all appropriate direct and indirect costs and overhead. We will review fee programs for compliance with Propositions 218 and 26.
in developing the fee schedule, we will make recommendations for new fees where appropriate, based on our experience with other cities. Some areas for new fees may be due to changes in law ( legalized cannabis), or for activities that the City finds itself performing regularly, but for which no fee is collected.
Where possible, we will incorporate discussion of the City' s economic development policies, and where these may intersect with fee programs, for instance setting fees in a manner that encourages certain activities.
The user fee data analysis and model development may take three ( 3) to four (4) weeks with frequent correspondence with City staff to discuss current cost recovery amounts, necessary to recover full cost and frequency activity.
Meetings: One ( 1) meeting, as necessary, to gather additional input, complete analysis and finalize fee schedule.
Please see the note in Task 5 regarding in- person meetings.
Deliverables: Final user fee model for City Council presentation and discussion.
Task 8: Prepare and Present Draft Report
Objective: Prepare draft report.
Description: This task involves the preparation of the draft report that discusses the study' s background, the methodologies utilized in the study, and the results and presentation to various stakeholder groups.
As noted below, meetings may occur during this or the next task as appropriate. The calculations used to generate the user fee study will be included textually, as well as in easy to understand tables.
Individual fee summaries by department and a comprehensive fee schedule will be included. The draft report will include the following:
Key results and findings;
Basic descriptions of each service;
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The full cost of each service and current cost recovery levels; Costs broken down graphically into indirect and direct components, with a graphic display of the level of cost recovery;
Fee recommendations with associate levels of cost recovery; Projections of potential fee revenue;
Assessment of reasonableness of each City' s costs;
Review of reasonableness of current consultant cost structure ( for Building Division services); As appropriate, recommend alternative methodologies for building permit fee calculation; and Summary and recommendations.
The objective of the report is to communicate the recommendation of appropriate fees, which include the appropriate subsidy percentage for those fees where full cost recovery may be unrealistic.
Meetings: One ( 1) conference call with City staff, to present draft results address questions and receive feedback.
Deliverables: Willdan: Draft report for City review and comment.
City: Review of draft report, with comments and edits.
Task 9: Revise Draft Report/ Determine Cost Recovery Levels for Recommended Adoption Objective: Review of draft report and fee model.
Description: The goal of this task is to conduct an in- depth review of the draft report and model, incorporate feedback and changes as a result of previous discussions, and arrive at an optimum fee structure.
Often through the course of an engagement, City staff will volunteer insightful likes and dislikes regarding the existing fee structure. We listen to this feedback carefully because your staff members know the community best. Comments usually revolve around issues of:
Understandability; Appropriate levels of cost recovery; and Fairness to applicants; Full cost recovery hourly rates.
Ease of calculation;
When adjusting fee recovery levels, we believe it is important to address these concerns.
Following one ( 1) round of comments from City staff on the draft report and feedback from City staff, we will prepare the final report for presentation to the City Council.
Meetings: One ( 1) online demonstration (WebEx) to review the report and model, with any revisions.
Deliverables: Draft report, revised draft /final report.
Task 10: Prepare and Present Final Report/ Train Staff on Model Objective: Prepare and present final report to City Council. Train staff on the operation and use of the model for future modifications.
Description: This task is the culmination of the entire project. Based on staff comments received regarding the draft report, we will prepare the final report for presentation.
Meetings: One ( 1) meeting with City Council to present the results and adopt the updated fee schedule. We will also provide staff training on the operation and use of the model on the same day, during regular business hours.
Deliverables: Provide one ( 1) electronic PDF file copy of the final report and models; and, if requested, provide five 5) bound copies, and one ( 1) unbound copy to the City. Using Microsoft Word and Excel, an updateable electronic copy of the study and models, as well as related schedules, will also be provided on CD/ ROM.
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Cater Staff Support
To complete our tasks, we will need the cooperation of City staff. We suggest that the City of Stanton assign a key individual to represent the City as the project manager who can function as our primary contact. We anticipate that the City' s project manager will:
1) Coordinate responses to requests for information;
2) Coordinate review of work products; and
3) Help resolve policy issues.
Willdan will endeavor to minimize the impact on City staff in the completion of this project. We will ask for responses to initial information requests in a timely manner. If there are delays on the part of the City, we will contact the City' s project manager to steer the project back on track. We will keep the City' s project manager informed of data orfeedback we need to keep the project on schedule.
Willdan will rely on the validity and accuracy of the City' s data and documentation to complete the analysis. Willdan will rely on the data as being accurate without performing an independent verification of accuracy and will not be responsible for any errors that result from inaccurate data provided by the client or a third party.
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H. Implementation Schedule
W Ildan understands time is of the essence for the City of Stanton to begin this engagement. These schedules can only be met with the cooperation of City staff. Delays in responding to our requests for data and review will result in corresponding delays to the project schedule. If that is the case, we will notify the City immediately of the possible impact on the schedule.
Cost Allocation Plan
Deliverables:
881: Information Request 865: Draft Report
862: Revised Project Scope and Schedule ( if needed 886: Revised Draft Report/ Final Report 863: User-friendly Model in Microsoft Excel 867: Final Report— Hard and Electronic Copies 884: Draft Cost Allocation Plan Model Review
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E. Schedule of Fees
Not to Exceed Fee
Willdan Financial Services (" Willdan") proposes a not -to -exceed fixed fee of $34, 680 for the Comprehensive Fee Study and Cost Allocation Plan engagement. The tables below provide a breakdown of each fee by task and project team member.
Cost Allocation Plan
Based on the corresponding work plan identified within the scope of services, we propose a not -to -exceed fixed fee of $10, 930 to prepare a Full and OMB Compliant Cost Allocation Plan.
Principal - In- Tech Protect Analytical QArrech
Total
1: Initial Document Request 1. 0 1. 0 2. 0 310
2: Kick- off / Refine Scope 1. 0 1. 0 2. 0 310
3: Gather Staffing Information & Develop Cost Allocation Plan Model 2. 0 5. 0 14. 0 21. 0 3, 175 4: Test and Review Cost Allocation Methodology 1. 0 4. 0 10. D 1. 0 16. 0 2,450 5: Prepare and Present Draft Report 1. 0 4. 0 10. 0 1. 0 1 16. 0 2,450 6: Discuss and Revise Report 1. 0 2. 0 5. 0 1 8. 0 1, 245 7: Prepare and Present Final Reportfrrain Staff on Model 4. 0 2. 0 1 6. 0 990 Comprehensive user Fee Study
Based on the corresponding work plan identified within the scope of services, we propose a not -to -exceed fixed fee of $23, 750 to prepare a User Fee Study.
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Charge Manager Advisor I Total
250 185
Support
125 2161 Hours Cost
e of Services
1: Initial Document Request 1. 0 1. 0 2. 0 310
2: Compile Inventory of Current and Potential Fees 1. 0 2. 0 3. 0 435 3: Kick- off / Refine Scope 1. 0 1. 0 2. 0 4. 0 685
4: Develop User Fee Model 4. 0 12. 0 16. 0 2,240
5: Time Survey Interviews and Information Gathering 3. 0 8. 0 8. 0 19. 0 3, 230 6: Common Fees Comparison 1. 0 4. 0 12. 0 17. 0 2, 490
7: Data Analysis and Final Fee and Rate Schedule 2. 0 8. 0 36. 0 1. 0 47. 0 6, 690 8: Prepare and Present Draft Report 2. 0 4. 0 12. 0 1. 0 19. 0 2, 950 9: Revise Draft/ Determine Cost Recovery Levels 1. 0 6. 0 10. 0 17. 0 2, 610 16: Prepare and Present Final Report/ Train Staff on Model 2. 0 6. 0 4.0 12. 0 2, 110 YY WILLDAN EXHIBIT C - Page 1 of 2
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Our fee includes all direct expenses associated with the project.
We will invoice the City monthly based on percentage of project completed.
Additional services may be authorized by the City and will be billed at our then -current hourly overhead consulting rates.
City shall reimburse Willdan for any costs Willdan incurs, including without limitation, copying costs, digitizing costs, travel expenses, employee time and attorneys' fees, to respond to the legal process of any governmental agency relating to City or relating to the project. Reimbursement shall be at Willdan ' s rates in effect at the time of such response.
The cost of preparing the fee study can be included in the resulting new fee schedule. Therefore, over time, the City can recover the initial outlay of funds that was required to complete the studies.
Willdan will rely on the validity and accuracy of the City' s data and documentation to complete the analysis. Willdan will rely on the data as being accurate without performing an independent verification of accuracy and will not be responsible for any errors that result from inaccurate data provided by the client or a third party.
Hourly Fee Schedule
Our current hourly rates are listed below.
Group Manager Chris Fisher 250
Managing Principal 240
Principal Consultant Bob Quaid 210
Senior Project Manager Tony Thrasher 185
Project Manager 165
Senior Project Analyst 135
Senior Analyst Priti Patel 125
Analyst II 110
Analyst 1 100
W I LLDAN EXHIBIT C - Page 2 of 2 N
ATTACHMENT B
1 CITY OF STANTON
REPORT TO THE CITY COUNCIL
TO: Honorable Mayor and Members of the City Council
DATE: November 28, 2023
SUBJECT: APPROVAL OF A PROFESSIONAL SERVICES AGREEMENT FOR
BUSINESS LICENSE TAX ADMINISTRATION SERVICES AND
BUSINESS LICENSE TAX ORDINANCE AND FEE STUDY
(HINDERLITER, DE LLAMAS, AND ASSOCIATES)
REPORT IN BRIEF:
The City Council will consider approving a professional services agreement with Hinderliter, de Llamas and Associates (“HdL”) for Business License Tax Administration Services and Business License Tax Ordinance and Fee Study. Procurement of these professional services will promote enhanced customer service by providing 24 hours a day, 7 days a week online processing of business license applications and renewals through HdL’s proprietary software and database. Staff has investigated other firms and has not found any comparable companies offering the desired comprehensive services and as such is requesting sole source procurement as provided for in the City’s Purchasing Manual.
RECOMMENDED ACTIONS:
1. City Council find that this item is not subject to California Environmental Quality Act (“CEQA”) pursuant to Sections 15378(b)(5) (Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment); and
2. Waive the competitive procurement process since only one known supplier has been identified and allow for the sole source procurement of professional services; and
3. Authorize the City Manager to enter into an agreement with Hinderliter, de Llamas and Associates to provide Business License Tax Administration Services for an initial term through June 30, 2027, with two additional one-year term extensions; and to conduct a one-time Business License Tax Ordinance and Fee Study, in a form approved by the City Attorney.
Item: 9I
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2 BACKGROUND:
The Finance Department is responsible for processing and collecting payments for approximately 3,000 business license applications and renewals annually. The current process is outdated and labor intensive, requiring the in-house manual printing of invoices and renewals, manual opening of payment envelopes, and manual posting of payments. (Although the City currently utilizes HdL’s proprietary software, approximately more than 50% of business license applications and renewals are processed through this manual process.) The proposed professional services offered by HdL will provide a more efficient, streamlined, accurate, and responsive service to the City’s business community. In addition, staff will be able to direct their attention and efforts to more appropriate activities and projects, providing better customer service and improving overall operational efficiency. HdL will provide the following services utilizing their proprietary software and database that staff will have 24/7 access to:
1. Business License Tax Administration Services (includes Revenue Discovery and Audits)
• Business license account and renewal processing;
• Auditing of renewals and tax liabilities;
• On-line services including reporting, application, renewal, and payment processing;
• Business support services;
• Delinquent account processing; and
• Revenue discovery and compliance services.
2. Business License Tax Ordinance and Fee Study
• Current tax registry analysis;
• Fee analysis and comparative study; and
• Modified tax structure options.
The proposed services are widely used by municipalities throughout California to streamline the business license process, improve customer service, and accelerate the deposit and availability of funds. HdL has a proven track record of improving business license operations and increasing compliance resulting in additional revenue to participating cities.
HdL provides customer support and a service center where the business community can obtain support during normal business hours. HdL will provide businesses with multiple options for registering, renewing, making payments, and will be responsible for answering all general inquiries.
The City has an existing relationship with HdL providing Sales and Use Tax Management Services and business license software and payment services. Under the Sales and Use Tax Management Services, HdL has been successful in generating additional sales tax and transaction and use tax from unregistered and underreporting businesses and has assisted the City in projecting annual sales tax and transaction and use tax revenues. In 3 addition, the City contracted with HdL to complete background checks for cannabis businesses during the initial cannabis business permit period in 2021. HdL has over 20 years of experience in providing a variety of specialized services to local governments nationwide.
ANALYSIS/JUSTIFICATION:
Business License Tax Administration Services
Currently, two part-time Administrative Clerk positions and one full-time Administrative Services Supervisor are responsible for processing business license applications and renewals. As new state laws increase the complexity of administering the City’s business license program by adding additional mandates for local governments to comply with, it is in the best interest of all stakeholders to outsource this complex program to a specialized consultant. Ultimately, the outsourcing of this function to HdL will also enhance customer service to the City’s business community and improve the overall efficiency of the Finance Department.
In addition to increased operational efficiencies, HdL leverages its database to compare receipts for business license taxes against expected values. HdL also performs auditing and revenue recovery functions for these revenues, similar to what the company performs for the City’s sales and transaction and use taxes. These services have resulted in revenue increases in other jurisdictions by ensuring businesses are properly licensed and accurately reported. Staff anticipates the revenue increases due to increased compliance will partially offset the cost of the additional services.
The cost of full-service business license services is $18 per business plus a one-time implementation fee of $5,000. The City will fund the one-time implementation fee and the $18 per business fee will be added to the business license fee. The per business fee will increase annually subject to the Consumer Price Index.
If the City Council approves this agreement, the City would no longer pay annual support and maintenance fees for use of HdL’s proprietary software beginning in Fiscal Year 2024/25. The City’s annual cost in Fiscal Year 2023/24 was $12,177. In addition, the Finance Department currently has one vacant part-time Administrative Clerk position.
During the Fiscal Year 2024/25 budget preparation process, the Finance Director and the City Manager will take the opportunity to review the Department’s staffing needs before a permanent position is filled. Any costs associated with HdL’s Revenue Discovery and Audit Services are subject to 40% of the additional revenue they recover. Therefore, these services are funded by the additional revenue the services generate.
Business License Tax Ordinance and Fee Study
The City’s Business License Ordinance is due for review and it is recommended to update the City’s Municipal Code for the application of fees according to each type of business.
For example, the current Ordinance includes fees for over 30 different business types 4 and as written is outdated. HdL will conduct an analysis of the City’s current Ordinance and the City’s tax registration database. Data will be compiled on the number of businesses, current tax revenues received by the City, categories, and other related information in order to provide an accurate baseline for current models and the impact of changes.
Using the data compiled from the analysis, as well as the data compiled from other sources such as neighboring cities, HdL will prepare a report comparing the City model and best practices to those of neighboring cities. The report will assist and provide the City with guidance as to possible positive changes to its current model.
With this, HdL, in conjunction with City staff and the City Attorney, will draft a series of possible business tax restructuring options for the City Council’s consideration. HdL will draft potential new and detailed structures to be used in the City’s new Ordinance including sample Ordinance language and cost impacts associated with each proposed model.
FISCAL IMPACT:
The Finance Department’s existing Fiscal Year 2023/24 budget includes savings from vacant positions to fund the one-time implementation fee of $5,000 for Business License Tax Administration Services and $30,000 for the Business License Tax Ordinance and Fee Study.
ENVIRONMENTAL IMPACT:
None.
LEGAL REVIEW:
The City Attorney reviewed the Agreement as to form.
PUBLIC NOTIFICATION:
Through the normal agenda posting process.
STRATEGIC PLAN OBJECTIVE ADDRESSED:
Obj. No. 4: Ensure fiscal stability and efficiency in governance.
Prepared by: Amy Massey, Accounting Manager
Reviewed by: Michelle Bannigan, Finance Director
Approved by: Hannah Shin-Heydorn, City Manager
Attachment:
A. Professional Services Agreement
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CITY OF STANTON
PROFESSIONAL SERVICES AGREEMENT
FOR
BUSINESS LICENSE TAX ADMINISTRATION SERVICES AND
BUSINESS LICENSE TAX ORDINANCE AND FEE STUDY
1. PARTIES AND DATE.
This Agreement is made and entered into this 28th day of November, 2023 (the “Effective Date”), by and between the City of Stanton, a municipal organization organized under the laws of the State of California with its principal place of business at 7800 Katella Avenue, Stanton, California 90680 (“City”) and HINDERLITER, DE LLAMAS AND ASSOCIATES, a California corporation, with its principal place of business at 120 S. State College Boulevard, Suite 200, Brea, California 92821 (“Consultant”). City and Consultant are sometimes individually referred to herein as “Party” and collectively as “Parties.”
2. RECITALS.
2.1 Consultant.
Consultant desires to perform and assume responsibility for the provision of the professional services, as outlined in Exhibit “A”, required by the City on the terms and conditions set forth in this Agreement. Consultant represents that it is experienced in providing the professional services outlined in Exhibit “A” to public clients, is licensed in the State of California, and is familiar with the plans of City.
2.2 Project.
City desires to engage Consultant to render such services for Business License Tax Administration Services and a Business License Tax Ordinance and Fee Study project (“Project”) as set forth in Exhibit “A” of this Agreement.
3. TERMS.
3.1 Scope of Services and Term.
3.1.1 General Scope of Services. Consultant promises and agrees to furnish to the City all labor, materials, tools, equipment, services, and incidental and customary work necessary to fully and adequately supply the professional services necessary for the Project (“Services”). The Services are more particularly described in Exhibit “A” attached hereto and incorporated herein by reference. All Services shall be subject to, and performed in accordance with, this Agreement, the exhibits attached hereto and incorporated herein by reference, and all applicable local, state, and federal laws, rules, and regulations.
3.1.2 Term. The term of this Agreement shall be from the date identified in Section 1 of this Agreement to June 30, 2027, unless earlier terminated as provided herein. The City Manager shall have the unilateral option, at its sole discretion, to renew this Agreement
ATTACHMENT A
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annually for no more than two additional one-year terms. Consultant shall complete the Services within the term of this Agreement, and shall meet any other established schedules and deadlines.
3.2 Responsibilities of Consultant.
3.2.1 Independent Contractors, Control and Payment of Subordinates; Independent Contractor. The Services shall be performed by Consultant or under its supervision.
Consultant will determine the means, methods, and details of performing the Services subject to the requirements of this Agreement. City retains Consultant on an independent contractor basis and not as an employee. Consultant shall complete, execute, and submit to City a Request for Taxpayer Identification Number and Certification (IRS FormW-9) prior to commencement of any Services under this Agreement. Consultant retains the right to perform similar or different services for others during the term of this Agreement. Any additional personnel performing 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. Neither City, nor any of its officials, officers, directors, employees, or agents shall have control over the conduct of Consultant or any of Consultant's officers, employees, or agents, except as set forth in this Agreement. Consultant shall pay all wages, salaries, and other amounts due such personnel in connection with their performance of 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, income tax withholding, unemployment insurance, disability insurance, and workers’ compensation insurance.
3.2.2 Schedule of Services. Consultant shall perform the Services expeditiously, within the term of this Agreement, and in accordance with the Schedule of Services set forth in Exhibit “A” attached hereto and incorporated herein by reference. Consultant represents that it has the professional and technical personnel required to perform the Services in conformance with such conditions. In order to facilitate Consultant’s conformance with the Schedule, City shall respond to Consultant’s submittals in a timely manner. Upon request of City, Consultant shall provide a more detailed schedule of anticipated performance to meet the Schedule of Services.
3.2.3 Conformance to Applicable Requirements. All work prepared by Consultant shall be subject to the approval of City.
3.2.4 Substitution of Key Personnel. Consultant has represented to City that certain key personnel will perform and coordinate the Services under this Agreement. Should one or more of such personnel become unavailable, Consultant may substitute other personnel of at least equal competence upon written approval of City. In the event that City and Consultant cannot agree as to the substitution of key personnel, City shall be entitled to terminate this Agreement for cause. As discussed below, any personnel who fail or refuse to perform the Services in a manner acceptable to the City, or who are determined by the City to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project or a threat to the safety of persons or property, shall be promptly removed from the Project by the Consultant at the request of the City.
The key personnel for performance of this Agreement is as follows: Connor Duckworth.
3.2.5 City’s Representative. The City hereby designates the City Manager, or his or her designee, to act as its representative for the performance of this Agreement (“City’s
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Representative”). City’s Representative shall have the power to act on behalf of the City for all purposes under this Contract. The City Manager hereby designates the Finance Director, or his or her designee, as the City’s contact for the implementation of the Services hereunder. Consultant shall not accept direction or orders from any person other than the City’s Representative or his or her designee.
3.2.6 Consultant’s Representative. Consultant hereby designates Connor Duckworth, or his or her designee, to act as its representative for the performance of this Agreement (“Consultant’s Representative”). Consultant’s Representative shall have full authority to represent and act on behalf of the Consultant for all purposes under this Agreement. The Consultant’s Representative shall supervise and direct the Services, using his best skill and attention, and shall be responsible for all means, methods, techniques, sequences, and procedures and for the satisfactory coordination of all portions of the Services under this Agreement.
3.2.7 Coordination of Services. Consultant agrees to work closely with City staff in the performance of Services and shall be available to City’s staff, consultants and other staff at all reasonable times.
3.2.8 Standard of Care; Performance of Employees. Consultant shall perform all Services under this Agreement in a skillful and competent manner, consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California. Consultant represents and maintains that it is skilled in the professional calling necessary to perform the Services. Consultant warrants that all employees and subconsultants shall have sufficient skill and experience to perform the Services assigned to them. Finally, Consultant represents that it, its employees and subconsultants have all licenses, permits, qualifications and approvals of whatever nature that are legally required to perform the Services and that such licenses and approvals shall be maintained throughout the term of this Agreement.
As provided for in the indemnification provisions of this Agreement, Consultant shall perform, at its own cost and expense and without reimbursement from the City, any services necessary to correct errors or omissions which are caused by the Consultant’s failure to comply with the standard of care provided for herein. Any employee of the Consultant or its sub-consultants who is determined by the City to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project, a threat to the safety of persons or property, or any employee who fails or refuses to perform the Services in a manner acceptable to the City, shall be promptly removed from the Project by the Consultant and shall not be re-employed to perform any of the Services or to work on the Project.
3.2.9 Laws and Regulations. Consultant shall keep itself fully informed of and in compliance with all local, state, and federal laws, rules and regulations in any manner affecting the performance of the Project or the Services, including all Cal/OSHA requirements, and shall give all notices required by law. Consultant shall be liable for all violations of such laws and regulations in connection with Services. If the Consultant performs any work knowing it to be contrary to such laws, rules and regulations , Consultant shall be solely responsible for all costs arising therefrom. Consultant shall defend, indemnify, and hold City, its officials, directors, officers, employees, agents, and volunteers free and harmless, pursuant to the indemnification provisions of this Agreement, from any claim or liability arising out of any failure or alleged failure to comply with such laws, rules, or regulations.
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3.2.10 Insurance.
3.2.10.1 Time for Compliance. Consultant shall not commence Work under this Agreement until it has provided evidence satisfactory to the City that it has secured all insurance required under this section. In addition, Consultant shall not allow any subconsultant to commence work on any subcontract until it has provided evidence satisfactory to the City that the subconsultant has secured all insurance required under this section.
3.2.10.2 Types of Insurance Required. As a condition precedent to the effectiveness of this Agreement for work to be performed hereunder and without limiting the indemnity provisions of the Agreement, the Consultant in partial performance of its obligations under such Agreement, shall procure and maintain in full force and effect during the term of the Agreement, the following policies of insurance. If the existing policies do not meet the Insurance Requirements set forth herein, Consultant agrees to amend, supplement, or endorse the policies to do so.
(a) Commercial General Liability: Commercial General Liability Insurance which affords coverage at least as broad as Insurance Services Office “occurrence” form CG 0001, with minimum limits of at least $1,000,000 per occurrence, and if written with an aggregate, the aggregate shall be double the per occurrence limit.
Defense costs shall be paid in addition to the limits.
The policy shall contain no endorsements or provisions limiting coverage for (1) contractual liability; (2) cross liability exclusion for claims or suits by one insured against another; or (3) contain any other exclusion contrary to the Agreement.
(b) Automobile Liability Insurance: Automobile Liability Insurance with coverage at least as broad as Insurance Services Office Form CA 0001 covering “Any Auto” (Symbol 1) with minimum limits of $1,000,000 for each accident.
(1) Cancellation: Required insurance policies shall not be canceled or the coverage reduced until thirty (30) day written notice of cancellation has been served upon the City except ten (10) days shall be allowed for non-payment of premium. (c) The policy or policies of insurance required by Section 3.2.10.2 (e) Workers’ Compensation shall be endorsed to provide the following:
(1) Waiver of Subrogation: A waiver of subrogation stating that the insurer waives all rights of subrogation against the indemnified parties.
(2) Cancellation: Required insurance policies shall not be canceled or the coverage reduced until thirty (30) day written
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notice of cancellation has been served upon the City except ten (10) days shall be allowed for non-payment of premium.
3.2.10.3 Primary and Non-Contributing Insurance. All insurance coverage shall be primary and any other insurance, deductible, or self-insurance maintained by the indemnified parties shall not contribute with this primary insurance. Policies shall contain or be endorsed to contain such provisions.
3.2.10.4 Waiver of Subrogation. Required insurance coverages shall not prohibit Consultant from waiving the right of subrogation prior to a loss. Consultant shall waive all subrogation rights against the indemnified parties. Policies shall contain or be endorsed to contain such provisions.
3.2.10.5 Deductible. Any deductible or self-insured retention must be approved in writing by the City and shall protect the indemnified parties in the same manner and to the same extent as they would have been protected had the policy or policies not contained a deductible or self-insured retention.
3.2.10.6 Evidence of Insurance. The Consultant, concurrently with the execution of the Agreement, and as a condition precedent to the effectiveness thereof, shall deliver either certified copies of the required policies, or original certificates and endorsements on forms approved by the City. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf. At least fifteen (15 days) prior to the expiration of any such policy, evidence of insurance showing that such insurance coverage has been renewed or extended shall be filed with the City. If such coverage is cancelled or reduced, Consultant shall, within ten (10) days after receipt of written notice of such cancellation or reduction of coverage, file with the City evidence of insurance showing that the required insurance has been reinstated or has been provided through another insurance company or companies.
3.2.10.7 Failure to Maintain Coverage. Consultant agrees to suspend and cease all operations hereunder during such period of time as the required insurance coverage is not in effect and evidence of insurance has not been furnished to the City. The City shall have the right to withhold any payment due to the Consultant until Consultant has fully complied with the insurance provisions of this Agreement.
In the event that the Consultant’s operations are suspended for failure to maintain required insurance coverage, the Consultant shall not be entitled to an extension of time for completion of the Services because of production lost during suspension.
3.2.10.8 Acceptability of Insurers. Each such policy shall be from a company or companies with a current A.M. Best’s rating of no less than A:VII and authorized to do business in the State of California, or otherwise allowed to place insurance through surplus line brokers under applicable provisions of the California Insurance Code or any federal law.
3.2.10.9 Insurance for Subconsultants. All Subconsultants shall be included as additional insureds under the Consultant’s policies, or the Consultant shall be responsible for causing Subconsultants to purchase the appropriate insurance in compliance with
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the terms of these Insurance Requirements, including adding the City as an Additional Insured to the Subconsultant’s policies.
3.2.11 Safety. Consultant shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out its Services, the Consultant shall at all times be in compliance with all applicable local, state, and federal laws, rules, and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed. Safety precautions as applicable shall include, but shall not be limited to: (A) adequate life protection and lifesaving equipment and procedures; (B) instructions in accident prevention for all employees and subconsultants, such as safe walkways, scaffolds, fall protection ladders, bridges, gang planks, confined space procedures, trenching and shoring, equipment and other safety devices, equipment and wearing apparel as are necessary or lawfully required to prevent accidents or injuries; and (C) adequate facilities for the proper inspection and maintenance of all safety measures.
3.3 Fees and Payments.
3.3.1 Compensation. Consultant shall receive compensation, including authorized reimbursements, for all Services rendered under this Agreement at the rates set forth in Exhibit “A” attached hereto and incorporated herein by reference. The total compensation shall not exceed FOUR-HUNDRED THOUSAND DOLLARS ($400,000) (“Total Compensation”) without written approval of City Manager. Extra Work may be authorized, as described below, and if authorized, will be compensated at the rates and manner set forth in this Agreement.
3.3.2 Payment of Compensation.
Consultant shall submit to City a monthly invoice which indicates work completed and Services rendered by Consultant. The statement shall describe the amount of Services provided since the initial commencement date, or since the start of the subsequent billing periods, as appropriate, through the date of the invoice. City shall, within 45 days of receiving such statement, review the statement and pay all approved charges thereon.
3.3.3 Reimbursement for Expenses. Consultant shall not be reimbursed for any expenses unless authorized in writing by City.
3.3.4 Extra Work. At any time during the term of this Agreement, City may request that Consultant perform Extra Work. As used herein, “Extra Work” means any work which is determined by City to be necessary for the proper completion of the Project, but which the Parties did not reasonably anticipate would be necessary at the execution of this Agreement.
Consultant shall not perform, nor be compensated for, Extra Work without written authorization from the City.
3.3.5 Prevailing Wages. Consultant is aware of the requirements of California Labor Code Section 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Section 16000, et seq., (“Prevailing Wage Laws”), which require the payment of prevailing wage rates and the performance of other requirements on “public works” and “maintenance” projects. If the Services are being performed as part of an applicable “public works” or “maintenance” project, as defined by the Prevailing Wage Laws, and if the total compensation is
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$1,000 or more, Consultant agrees to fully comply with such Prevailing Wage Laws. City shall provide Consultant with a copy of the prevailing rates of per diem wages in effect at the commencement of this Agreement. Consultant shall make copies of the prevailing rates of per diem wages for each craft, classification or type of worker needed to execute the Services available to interested parties upon request, and shall post copies at the Consultant’s principal place of business and at the project site. It is the intent of the parties to effectuate the requirements of sections 1771, 1774, 1775, 1776, 1777.5, 1813, and 1815 of the Labor Code within this Agreement, and Consultant shall therefore comply with such Labor Code sections to the fullest extent required by law. Consultant shall defend, indemnify, and hold the City, its elected officials, officers, employees, agents, and volunteers free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws.
3.4 Accounting Records.
3.4.1 Maintenance and Inspection. Consultant shall maintain complete and accurate records with respect to all costs and expenses incurred under this Agreement. All such records shall be clearly identifiable. Consultant shall allow a representative of City during normal business hours to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement. Consultant shall 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.
3.5 General Provisions.
3.5.1 Termination of Agreement.
3.5.1.1 Grounds for Termination. City may, by written notice to Consultant, terminate the whole or any part of this Agreement at any time and without cause by giving written notice to Consultant of such termination, and specifying the effective date thereof, at least thirty (30) days before the effective date of such termination. Upon termination, Consultant shall be compensated only for those services which have been adequately rendered to City, and Consultant shall be entitled to no further compensation. Consultant may not terminate this Agreement except for cause.
3.5.1.2 Effect of Termination. If this Agreement is terminated as provided herein, City may require Consultant to provide all finished or unfinished Documents and Data and other information of any kind prepared by Consultant in connection with the performance of Services under this Agreement. Consultant shall be required to provide such document and other information within fifteen (15) days of the request.
3.5.1.3 Additional Services. In the event this Agreement is terminated in whole or in part as provided herein, City may procure, upon such terms and in such manner as it may determine appropriate, services similar to those terminated.
3.5.2 Delivery of Notices. All notices permitted or required under this Agreement shall be given to the respective parties at the following address, or at such other address as the respective parties may provide in writing for this purpose:
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Consultant:
Hinderliter, De Llamas, & Associates
120 South State College Boulevard, Suite 200
Brea, CA 92821
Attn: Connor Duckworth
City:
City of Stanton
7800 Katella Avenue
Stanton, CA 90680
Attn: Michelle Bannigan, Finance Director
Such notice shall be deemed made when personally delivered or when mailed, forty-eight (48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to the party at its applicable address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service.
3.5.3 Ownership of Materials and Confidentiality.
3.5.3.1 Documents & Data; Licensing of Intellectual Property. This Agreement creates a non-exclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, and other intellectual property embodied in plans, specifications, studies, drawings, estimates, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings or data magnetically or otherwise recorded on computer diskettes, which are prepared or caused to be prepared by Consultant under this Agreement (“Documents & Data”). Consultant shall require all subconsultants to agree in writing that City is granted a non-exclusive and perpetual license for any Documents & Data the subconsultant prepares under this Agreement. Consultant represents and warrants that Consultant has the legal right to license any and all Documents & Data.
Consultant makes no such representation and warranty in regard to Documents & Data which were prepared by design professionals other than Consultant or provided to Consultant by the City. City shall not be limited in any way in its use of the Documents and Data at any time, provided that any such use not within the purposes intended by this Agreement shall be at City’s sole risk.
3.5.3.2 Confidentiality. All ideas, memoranda, specifications, plans, procedures, drawings, descriptions, computer program data, input record data, written information, and other Documents and Data either created by or provided to Consultant in connection with the performance of this Agreement shall be held confidential by Consultant. Such materials shall not, without the prior written consent of City, be used by Consultant for any purposes other than the performance of the Services. Nor shall such materials be disclosed to any person or entity not connected with the performance of the Services or the Project. Nothing furnished to Consultant which is otherwise known to Consultant or is generally known, or has become known, to the related industry shall be deemed confidential. Consultant shall not use City’s name or insignia, photographs of the Project, or any publicity pertaining to the Services or the Project in any
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magazine, trade paper, newspaper, television or radio production or other similar medium without the prior written consent of City.
3.5.3.3 Confidential Information. The City shall refrain from releasing Consultant’s proprietary information (“Proprietary Information”) unless the City’s legal counsel determines that the release of the Proprietary Information is required by the California Public Records Act or other applicable state or federal law, or order of a court of competent jurisdiction, in which case the City shall notify Consultant of its intention to release Proprietary Information.
Consultant shall have five (5) working days after receipt of the Release Notice to give City written notice of Consultant’s objection to the City’s release of Proprietary Information. Consultant shall indemnify, defend, and hold harmless the City, and its officers, directors, employees, and agents from and against all liability, loss, cost, or expense (including attorney’s fees) arising out of a legal action brought to compel the release of Proprietary Information. City shall not release the Proprietary Information after receipt of the Objection Notice unless either: (1) Consultant fails to fully indemnify, defend (with City’s choice of legal counsel), and hold City harmless from any legal action brought to compel such release; and/or (2) a final and non-appealable order by a court of competent jurisdiction requires that City release such information.
3.5.4 Cooperation; Further Acts. The Parties shall fully cooperate with one another, and shall take any additional acts or sign any additional documents as may be necessary, appropriate, or convenient to attain the purposes of this Agreement.
3.5.5 Attorney’s 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 reasonable attorney’s fees and all other costs of such action.
3.5.6 Indemnification.
To the fullest extent permitted by law, Consultant shall defend (with counsel of City’s choosing), indemnify and hold the City, its officials, officers, employees, volunteers and agents free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury of any kind, in law or equity, to property or persons, including wrongful death, in any manner arising out of, pertaining to, or incident to any alleged acts, errors or omissions, or willful misconduct of Consultant, its officials, officers, employees, subcontractors, consultants or agents in connection with the performance of the Consultant's Services, the Project or this Agreement, including without limitation the payment of all damages, expert witness fees and attorney’s fees and other related costs and expenses. Consultant's obligation to indemnify shall not be restricted to insurance proceeds, if any, received by the Consultant or the City, its officials, officers, employees, agents, or volunteers.
If Consultant’s obligation to defend, indemnify, and/or hold harmless arises out of Consultant’s performance as a “design professional” (as that term is defined under Civil Code section 2782.8), then, and only to the extent required by Civil Code section 2782.8, which is fully incorporated herein, Consultant’s indemnification obligation shall be limited to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant, and, upon Consultant obtaining a final adjudication by a court of competent
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jurisdiction, Consultant’s liability for such claim, including the cost to defend, shall not exceed the Consultant’s proportionate percentage of fault. In no event will any of Consultant Group be liable for any Client monies not collected by Consultant Group, or any special, incidental, or consequential damages of any nature whatsoever, even if such restrictions deprive one or more remedies of their essential purpose. This damage exclusion is independent of any remedies provided for herein
3.5.7 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.
3.5.8 Governing Law. This Agreement shall be governed by the laws of the State of California. Venue shall be in Orange County.
3.5.9 Time of Essence. Time is of the essence for each and every provision of this Agreement.
3.6 City’s Right to Employ Other Consultants. City reserves right to employ other consultants in connection with this Project.
3.7 Successors and Assigns. This Agreement shall be binding on the successors and assigns of the parties.
3.8 Assignment or Transfer. Consultant shall not assign, hypothecate, or transfer, either directly or by operation of law, this Agreement, or any interest herein without the prior written consent of the City. Any attempt to do so shall be null and void, and any assignees, hypothecates or transferees shall acquire no right or interest by reason of such attempted assignment, hypothecation, or transfer.
3.9 Construction; References; Captions. Since the Parties or their agents have participated fully in the preparation of this Agreement, the language of this Agreement shall be construed simply, according to its fair meaning, and not strictly for or against any Party. Any term referencing time, days or period for performance shall be deemed calendar days and not work days.
All references to Consultant include all personnel, employees, agents, and subconsultants of Consultant, except as otherwise specified in this Agreement. All references to City include its elected officials, officers, employees, agents, and volunteers except as otherwise specified in this Agreement. The captions of the various articles and paragraphs are for convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content, or intent of this Agreement.
3.10 Amendment; Modification. No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing and signed by both Parties.
3.11 Waiver. No waiver of any default shall constitute a waiver of any other default or breach, whether of the same or other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by a Party shall give the other Party any contractual rights by custom, estoppel, or otherwise.
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3.12 No Third Party Beneficiaries. There are no intended third party beneficiaries of any right or obligation assumed by the Parties.
3.13 Invalidity; Severability. If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.
3.14 Prohibited Interests. Consultant maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Consultant, to solicit or secure this Agreement. Further, Consultant warrants that it has not paid, nor has it agreed to pay any company or person, other than a bona fide employee working solely for Consultant, any fee, commission, percentage, brokerage fee, gift, or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability. For the term of this Agreement, no member, officer, or employee of City, during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.
3.15 Equal Opportunity Employment. Consultant represents that it is an equal opportunity employer, and it shall not discriminate against any subconsultant, employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex, or age. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff, or termination. Consultant shall also comply with all relevant provisions of City’s Minority Business Enterprise program, Affirmative Action Plan or other related programs or guidelines currently in effect or hereinafter enacted.
3.16 Labor Certification. By its signature hereunder, Consultant certifies that it is aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for Worker’s 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.
3.17 Authority to Enter Agreement. Consultant has all requisite power and authority to conduct its business and to execute, deliver, and perform the Agreement. Each Party warrants that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and bind each respective Party.
3.18 Counterparts. This Agreement may be signed in counterparts, each of which shall constitute an original.
3.19 Declaration of Political Contributions. Consultant shall, throughout the term of this Agreement, submit to City an annual statement in writing declaring any political contributions of money, in-kind services, or loan made to any member of the City Council within the previous twelve-month period by the Consultant and all of Consultant’s employees, including any employee(s) that Consultant intends to assign to perform the Services described in this Agreement.
3.20 Subcontracting.
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3.20.1 Prior Approval Required. Consultant shall not subcontract any portion of the work required by this Agreement, except as expressly stated herein, without prior written approval of City. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement.
[Signatures on following page.]
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IN WITNESS WHEREOF, the parties have executed this Professional Services Agreement on this 28th day of November, 2023.
CITY OF STANTON HINDERLITER, DE LLAMAS, &
ASSOCIATES
By:
Hannah Shin-Heydorn
City Manager
By: _________________________________
Name:
President
ATTEST:
By:
Patricia Vazquez
City Clerk
By:________________________________
Name:___________________________
Corporate Secretary
APPROVED AS TO FORM:
By:_________________________________
Hong-Dao Nguyen
Best Best & Krieger LLP
City Attorney
ATTACHMENT A
Hinderliter De Llamas & Associates (HdL)
Tax and Fee Administration Services and Fees
Business License Tax and Fees
City of Stanton, CA
1211802.2 Page 1 of 4
SCOPE OF SERVICES
Consultant will provide the following Services relative to Client’s business license tax administration.
1. Operations Management Services
1.1. Establish and maintain database of Client businesses.
1.2. Receive and process applications, renewals and payments in a timely fashion.
1.3. Send renewal notices to active businesses within 30 days of the renewal period end date or at another interval specified by Client.
1.4. Provide businesses multiple options for submitting applications, renewals, payments, or support requests (including via website, email, mail, phone, and fax. Consultant license specialists will be available for live interactions Monday through Friday, 8:00am to 5:00pm Pacific).
1.5. Remit revenue to Client no less than monthly.
1.6. Provide Client staff access to website portal offering business registry inquiry, reporting, and electronic department approval capabilities.
2. Compliance Services: 1) Identify and register businesses which are subject to licensure or taxation, 2) collect known debt as pertains to business license or tax, and 3) identify under-reported tax liability.
2.1. Discovery Services
2.1.1.Develop a list of businesses subject to Client licensure or taxation.
2.1.2.Notify non-compliant businesses of their options to comply or dispute their non-compliant status.
Notification and support to businesses will be facilitated through the website, mail, email, phone and fax.
2.1.3.Review information and forms submitted by the business for completion and accuracy, inclusive of any additional required documentation (i.e. home occupation permit). All submissions are filed and stored electronically and made available to Client upon request.
2.1.4.Provide businesses with detailed invoicing and options to pay via website, mail, and phone.
2.1.5.Remit revenue to Client no less than monthly, along with all business applications and any additional documentation.
2.2. Collection Services
2.2.1.Identify businesses subject to Client licensure or taxation which have known debt to Client and have failed to pay within an appropriate time frame.
2.2.2.Notify businesses of their options to comply or dispute their non-compliant status.
2.2.3.Provide businesses with detailed invoicing and options to pay via website, mail and phone.
2.2.4.Remit revenue to Client no less than monthly.
2.3. Audit Services
2.3.1. Identify potential under-reporting and/or misclassified businesses.
2.3.2.Audit businesses mutually agreed to by Client and Consultant that are identified as potential under-reporting businesses.
2.3.3.Submit audit summaries to Client and discuss further actions.
2.3.4.Educate businesses on proper reporting practices.
2.3.5.Invoice and collect identified delinquencies.
3. Online Payment Processing – Consultant’s services include PCI compliant payment processing services powered by FIS Global, which supports both credit card and eCheck transactions.
3.1. Client Responsibilities
3.1.1.As a condition to its receipt of the Service, Client shall execute and deliver any and all applications, agreements, certifications or other documents required by FIS Global, Networks or EXHIBIT A - Page 1 of 4 ATTACHMENT A
Hinderliter De Llamas & Associates (HdL)
Tax and Fee Administration Services and Fees
Business License Tax and Fees
City of Stanton, CA
1211802.2 Page 2 of 4
other third parties whose consent or approval is necessary for the processing of Transactions by FIS Global. “Network” is an entity or association that operates, under a common service mark, a system which permits participants to authorize, route, and settle Transactions among themselves, including, for example, networks operated by VISA USA and Mastercard, Inc., NYCE Corporation, American Express, and Discover.
3.1.2.Client hereby grants Consultant the full right, power and authority to request, receive and review any Data or records reflected in a Transaction report. Client represents and warrants that it has the full right and authority to grant these rights.
4. Business License Tax Ordinance / Fee Study
4.1. Current Tax Registry Analysis – Consultant will conduct an analysis of the current business license ordinance and the Client’s tax registration database. Data will be compiled on the number of businesses, current tax revenues received by the Client, categories, and other related information to provide a baseline of the Client’s current tax structure and to allow Consultant to model the potential impact of changes to the current model.
4.2. Fee Analysis and Comparative Study – Using the data compiled from the registration analysis, as well as data compiled from other sources such as neighboring cities, Consultant will prepare a report comparing the Client model to those of neighboring cities. The report will assist and provide the Client with guidance as to possible positive changes to its current model. As part of this phase Consultant will discuss possible administrative adjustments to the current municipal code. The final report will include, among other things, a complete business license tax structure recommendation along with revenue associated with each proposed model.
4.3. Modified Tax Structure Options – As a result of the findings of the comparison report, Consultant, in conjunction with Client staff, will draft a series of possible business tax re-structuring options for Client consideration. Options may include the proposing of gross receipt-based taxes, employeebased taxes, flat taxes, or a hybrid of all mentioned options. Consultant will draft potential new and detailed structures to be used in the Client’s new ordinance. Consultant will also review and work with the Client Attorney’s office in drafting new ordinance language in support of a chosen model.
FEES
5. Operations Management Services
5.1. Fees for performing operations management Services shall be $18.00 for each processed account, which is any account for which an application or renewal/return was processed, or active account which was sent a renewal notice and a one (1) time implementation fee of $5,000.00.
5.2. Fees will be increased as of January 1st of each calendar year with reference to the 12-month percent change in the most recently published annual Consumer Price Index for All Urban Consumers (CPIU), West Region, as reported by the U.S. Bureau of Labor Statistics (the “CPI Change”). Each annual increase in the Fees will be equal to the greater of two percent (2%) or the actual CPI Change and the lesser of ten percent (10%) or the actual CPI Change. For example, if the actual CPI Change is 1.5%, then the annual increase will be 2%, if the actual CPI Change is 3.5%, then the annual increase will be 3.5%, and if the actual CPI Change is 12%, then the annual increase will be 10%.
5.3. Fees related to travel and lodging expenses are billed at cost and apply to all meetings (including implementation, training, operations and support). Travel expenses only apply to out-of-scope travel and must therefore be pre-approved by Client.
EXHIBIT A - Page 2 of 4 ATTACHMENT A
Hinderliter De Llamas & Associates (HdL)
Tax and Fee Administration Services and Fees
Business License Tax and Fees
City of Stanton, CA
1211802.2 Page 3 of 4
5.4. Fees will be invoiced monthly to Client for Services performed during the prior month. Fees will be netted out of Client’s monthly revenue disbursement. Client will submit payment for any balance due to Consultant within 30 days of receiving the invoice.
6. Compliance Services
6.1. Fees for performing compliance Services apply to all monies received for the current tax/license period and any other prior period collected (including monies received for taxes, penalties, interest, and fees).
6.1.1.Fees for performing discovery Services shall be a contingency Fee of 40% of the revenues received as a result of the Services.
6.1.2.In the event that Client discovers a non-compliant business and reports the business to Consultant (including a calculation of all taxes/fees due), Consultant will categorize the business as a collection service effort and thus apply the lower collection Services contingency Fee rate.
6.1.3.Fees for performing collection Services shall be a contingency Fee of 25% of the revenues received as a result of the Services.
6.1.4.Fees for performing audit Services shall be a contingency Fee of 40% of the revenues received as a result of the Services.
6.2. Consultant recognizes Client’s authority to waive or reduce the tax/fee debt of a business. Should Client decide to do so for a business whose deficiency was identified by Consultant, Consultant shall be entitled to compensation in the amount of one half (1/2) of the Fees Consultant would have otherwise earned. Deficiencies which are uncollectable due to insolvency or dissolution of the business, or for deficiencies which are otherwise incapable of collection (i.e. statute of limitation or other legal defense) shall not be considered a Client voluntary election to waive, and thus, Consultant would not be entitled to compensation related thereto under this provision.
6.3. The fee shall be paid notwithstanding any related Client assistance, work in parallel, and/or incurrence of attorneys’ fees or other costs or expenses in connection, with the relevant Services.
6.4. Fees related to travel and lodging expenses are billed at cost and applied to all meetings (including implementation, training, operations, and support). Travel expenses only apply to out-of-scope travel and must therefore be pre-approved by Client.
6.5. Fees will be invoiced monthly to Client for Services performed during the prior month. Fees will be netted out of Client’s monthly revenue disbursement. Client will submit payment for any balance due to Consultant within 30 days of receiving the invoice.
7. Payment Processing – Consultant will configure payment processing services to utilize either a taxpayer funded model (convenience fee) or Client funded model, as directed by Client. Client may switch between these models upon written request to Consultant. Fees for each of these payment processing models are detailed here.
7.1. Taxpayer funded model – Client authorizes Consultant to collect each convenience fee from the taxpayer at time of payment.
7.1.1.Credit and debit card processing – 2.9% of transaction amount, minimum of $2.00
7.1.2.ACH/eCheck processing - $1.25 per transaction
7.2. Client funded
7.2.1.Credit and debit card processing – 2.9% of transaction amount
7.2.2.ACH/eCheck processing - $0.50 per transaction
7.3. Returned payments/NSF fee – Each occurrence of a card chargeback, returned payment or insufficient funds will incur a fee of $25.00, to be applied to the taxpayers account.
EXHIBIT A - Page 3 of 4 ATTACHMENT A
Hinderliter De Llamas & Associates (HdL)
Tax and Fee Administration Services and Fees
Business License Tax and Fees
City of Stanton, CA
1211802.2 Page 4 of 4
7.4. Consultant reserves the right to review and adjust pricing related to payment processing services on an annual basis. Consultant will communicate any such adjustment to Client in writing, with 60 days advance notice. Items that will be considered in the review of fees may include, but are not limited to: regulatory changes, card association rate adjustments, card association category changes, bank/processor dues and assessments, average consumer payment amounts, card type utilization, and costs of service.
8. Business License Tax Ordinance / Fee Study – Fee is $25,000.00, due 50% upon project kick-off, and 50% upon delivery of final report.
IN WITNESS WHEREOF, the parties hereto have entered into this Scope of service through their duly authorized representatives as of ___________, 2023.
CONSULTANT:
Hinderliter De Llamas & Associates (HdL)
By: _________________________
Its: _________________________
By: _________________________
Its: _________________________
CLIENT:
City of Stanton, CA
By: ________________________
Its: ________________________
By: ________________________
Its: ________________________
EXHIBIT A - Page 4 of 4 ATTACHMENT A
1 CITY OF STANTON
REPORT TO THE CITY COUNCIL
TO: Honorable Mayor and Members of the City Council
DATE: November 28, 2023
SUBJECT: APPROVE RESOLUTION TO RECEIVE AND FILE FISCAL YEAR 2022/23 DEVELOPMENT IMPACT FEE REPORT AND MAKE CERTAIN
FINDINGS PURSUANT TO GOVERNMENT CODE SECTION 66000, ET.
SEQ.
REPORT IN BRIEF:
The Fiscal Year 2022/23 Annual Financial Report of Development Impact Fees (“Fiscal Year 2022/23 Development Impact Fee Report”) is hereby provided to City Council in Attachment A to this staff report as required by California Government Code Section 66006, which was enacted by Assembly Bill No. 1600 (AB 1600). All development impact fees that have been collected, including interest earned on the fees, have been spent or have been earmarked for spending as of June 30, 2023. Consequently, there are no funds that are required by California Government Code Section 66006 to be refunded to property owners. Attachment A (pages 14-16) includes Resolution No. 2023-28 to approve the receipt and filing of the Fiscal Year 2022/23 Development Impact Fee Report and certain findings the California Government Code requires the City Council to affirm.
RECOMMENDED ACTIONS:
1. City Council finds that this item is not subject to California Environmental Quality Act (“CEQA”) pursuant to Section 15378(b)(5) (Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment); and
2. Approve Resolution No. 2023-28 to receive and file the Fiscal Year 2022/23 Development Impact Fee Report and make certain findings pursuant to Government Code Section 66006; entitled:
“RESOLUTION OF THE CITY COUNCIL OF THE CITY OF STANTON TO RECEIVE AND FILE THE FISCAL YEAR 2022/23 DEVELOPMENT IMPACT
FEE REPORT AND MAKE CERTAIN FINDINGS, AS REQUIRED BY
CALIFORNIA GOVERNMENT CODE SECTION 66000 et seq.”.
Item: 10A
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2 ANALYSIS:
AB 1600 requires that local agencies annually report certain financial information related to capital improvement projects (streets, transit facilities, parks, sewers, storm drains, etc.) that have been funded by development impact fees. AB 1600 enacted California Government Code Sections 66000-66008 that generally contain four requirements:
1. A local jurisdiction must follow the process set forth in the bill and make certain determinations regarding the purpose and use of each development impact fee and establish a “nexus” or connection between a development project or class of projects and the public improvement being financed with the fee.
2. The fee revenue must be segregated from the General Fund in order to avoid the commingling of public improvement fees and General Fund revenues.
3. If the City had had possession of funds generated by development impact fees for five years or more, and has not spent such funds, or committed such funds to a project, it must make certain findings describing the continuing need to retain those funds. If the local jurisdiction is unable to make the findings required by state law, the City must refund the fees to property owners.
4. An annual report must be made of fees collected, interest earned, projects on which fees were expended, and any transfers or loans from the fee account. The report must be presented to the agency’s governing board within 180 days of the end of the fiscal year.
The Annual Development Impact Fee Report presented on Attachment A summarizes the Fiscal Year 2022/23 fund activity for the following types of facilities: Streets (Fund 261), Traffic Signals (Fund 262), Community Centers (Fund 263), Police Facilities (Fund 264), and the Sewer Capital Improvement Fund (Fund 502). The report shows the amount of fees collected during Fiscal Year 2022/23, interest income, a brief description of the projects funded, the percentage of the projects funded by the development fees, and the beginning and ending balance of the funds. The plan to expend any unexpended funds for the various fees is also outlined in the attached report.
The findings required to be made by AB 1600 with respect to unexpended fees as of June 30, 2023, are set forth below:
1. The purposes for which these fees have been collected are for the projects identified in the Annual Financial Report of Development Impact Fees.
2. There is a reasonable relationship between the fees and the purposes for which they have been collected. The fees are necessary to mitigate the impacts of development.
3 3. For projects that remain incomplete as of June 30, 2023, the approximate timing for the completion of these projects is set forth in the Annual Financial Report of Development Impact Fees. The source of funding to complete these projects are existing reserves of the related funds and development impact fees anticipated to be collected in future fiscal years in amounts enough to complete these projects.
4. The City Council finds that although not yet committed to a specific project, the City needs to continue to retain the funds held in the Community Centers Fee Fund and Police Facilities Fee Fund to fund future facility projects once enough funding is accumulated.
Based on the foregoing, the City is not required to refund any fees collected pursuant to the requirements of AB 1600.
FISCAL IMPACT:
As of June 30, 2023, no refund of development impact fees is required.
ENVIRONMENTAL IMPACT:
None.
LEGAL REVIEW:
The City Attorney reviewed the staff report and Attachment A as to form.
PUBLIC NOTIFICATION:
Through the normal agenda notification process. In addition, on November 13, 2023, the City Clerk posted a public notice to notify the public the reports are available for public inspection. The notice was posted as follows: at the Stanton Family Resource Center, Stanton Post Office, City Hall, and on the City’s website.
STRATEGIC PLAN OBJECTIVE ADDRESSED:
Obj. No. 4: Ensure fiscal stability and efficiency in governance.
Prepared by: Michelle Bannigan, Finance Director
Public Notification Reviewed by: Patricia A. Vazquez, City Clerk Approved by: Hannah Shin-Heydorn, City Manager
Attachment:
A. Fiscal Year 2022/23 Development Impact Fee Report
RESOLUTION NO. 2023-28
1 RESOLUTION NO. 2023-28
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF STANTON TO RECEIVE AND FILE THE FISCAL YEAR 2022/23 DEVELOPMENT IMPACT FEE REPORT AND
MAKE CERTAIN FINDINGS, AS REQUIRED BY CALIFORNIA GOVERNMENT CODE SECTION 66000 et seq.
WHEREAS, on April 11, 2011, the City Council approved Ordinance 977 adopting the City of Stanton’s Development Impact Fee program applicable to new or expanded commercial development and new residential development projects, which became effective on June 12, 2011; and
WHEREAS, on June 14, 2022, the City Council approved Resolution No. 2022-32 adopting the Fiscal Year 2022/23 Operating Budget and Capital Budget; and WHEREAS, California Government Code Section 66006(b) requires that for each separate account or fund established for the collection and expenditure of Development Impact Fees, the City shall make available to the public within one hundred eighty (180) days after the last day of each fiscal year a report; and WHEREAS, California Government Code Section 66006(b)(2) requires that the City review the information made available to the public at a regularly scheduled public meeting after the information is made available to the public; and WHEREAS, this report was filed with the City Clerk’s office and available for public review on November 13, 2023; and
WHEREAS, the City has complied with all of the foregoing provisions.
NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF
STANTON DOES HEREBY FIND AND DETERMINE THAT THE FOREGOING RECITALS AND DETERMINATIONS ARE TRUE AND CORRECT:
SECTION 1: That the City Council of the City of Stanton at a public meeting has reviewed the following information, attached as “Exhibit A”, pursuant to California Government Code Section 66006(b)(1), as is required by California Government Code Section 66006(b)(2), including:
(A) A brief description of the type of fee in the account or fund; (B) The amount of the fee;
(C) The beginning and ending balance of the account or fund; (D) The amount of fees collected, and the interest earned; (E) An identification of each public improvement on which fees were expended and the amount of the expenditure of each improvement, including the total percentage of the cost of the public improvement that was funded with fees; (F) An identification of an approximate date by which the construction of the public improvement will commence if the local agency determines that sufficient funds have been collected to complete financing on an incomplete
ATTACHMENT A
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RESOLUTION NO. 2023-28
2 public improvement, as identified in Section 66001(a)(2), and the public improvement remains incomplete;
(G) A description of each interfund transfer or loan made from the account or fund, including the public improvement on which the transferred or loaned fees will be expended, and, in the case of an interfund loan, the date on which the loan will be repaid, and the rate of interest that the account or fund will receive on the loan; and
(H) The amount refunds made pursuant to Section 66001(e) and any allocations pursuant to Section 66001(f).
SECTION 2: That the City Council of the City of Stanton at a public meeting has reviewed the proposed findings for unexpended funds, including:
(1) Identifying the purpose to which the fee is to be put; (2) Demonstrating a reasonable relationship between the fee and the purpose for which it is charged;
(3) Identifying all sources and amounts of funding anticipate to complete financing in incomplete improvements; and
(4) Designating the approximate dates on which the funding referred to in subparagraph (C) is expected to be deposited into the appropriate account or fund.
SECTION 3: That the City Council of the City of Stanton hereby determines that all reportable fees, collections, and expenditures have been received, deposited, invested, and expended in compliance with the relevant sections of the California Government Code and all other applicable laws for Fiscal Year 2022/23.
SECTION 4: That the City Council of the City of Stanton hereby determines that no refunds and allocations of reportable fees, as required by California Government Code Section 66001, are deemed payable at this time.
SECTION 5. That the City Council of the City of Stanton hereby determines that the City is in compliance with California Government Code Section 66000, et seq., relative to receipt, deposit, investment, expenditure, or refund of reportable fees received and expended relative to city facilities for new development for Fiscal Year 2022/23.
SECTION 6: The City Clerk shall certify as to the adoption of this Resolution.
ATTACHMENT A
RESOLUTION NO. 2023-28
3 PASSED, APPROVED, AND ADOPTED this 28th day of November 2023.
DAVID J. SHAWVER, MAYOR
APPROVED AS TO FORM:
HONGDAO NGUYEN, CITY ATTORNEY
ATTEST:
I, Patricia A. Vazquez, City Clerk of the City of Stanton, California DO HEREBY CERTIFY that the foregoing Resolution, being Resolution No. 2023-28 has been duly signed by the Mayor and attested by the City Clerk, all at a regular meeting of the Stanton City Council, held on November 28, 2023, and that the same was adopted, signed, and approved by the following vote to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
PATRICIA A. VAZQUEZ, CITY CLERK
ATTACHMENT A
CITY OF STANTON
ANNUAL DEVELOPMENT
IMPACT FEE REPORT
(AB1600)
EXHIBIT A
Table of Contents
Letter of Transmittal ............................................................................................................. i
INTRODUCTION
Legal Requirement for Development Impact Fee Reporting .......................................... 1 Description and Purpose of Development Impact Fees .................................................. 2 Description and Purpose of Sewer Connection Fee ...................................................... 3 Fee Schedule ................................................................................................................. 4
FINANCIAL SUMMARY REPORT
Summary Report – Development Impact/Sewer Connection Fees ............................... 5
NOTE TO THE DEVELOPMENT IMPACT FEE REPORT
Note 1 – Refund of Developer Fee ................................................................................ 7
DEVELOPMENT IMPACT FEE AND SEWER CONNECTION FEES
PROJECTS IDENTIFICATION ............................................................................................ 8
EXHIBIT A
7800 Katella Avenue
Stanton, CA 90680
P | (714) 379-9222
F | (714) 890-1443
[email protected]
www.ci.stanton.ca.us
November 13, 2023
To the Honorable Mayor, Members of the City Council, and Citizens of Stanton:
State law requires any local agency that imposes development impact fees to prepare a five-year report providing specific information about those fees. Therefore, in accordance with the provisions of the California Government Code Section 66000 et seq., as amended by the Assembly Bill (AB) 518 and Senate Bill (SB) 1693, I hereby submit the Development Impact Fee (DIF) Report for the City of Stanton, California for the Fiscal Year (FY) ended June 30, 2023.
DIFs are charged by the local government agencies in connection with approval of development projects. The purpose of these fees is to defray all or a portion of the cost of public facilities related to the development project. The legal requirements for enactment of a DIF program are set forth in Government Code Sections 66000-66025 (the “Mitigation Fee Act”), the bulk of which was adopted as 1987’s AB 1600 and, thus, commonly referred to as “AB 1600 requirements”.
In Stanton, DIFs are collected on or before the issuance of building permit or date the certificate of occupancy is issued for the purpose of mitigating the impacts caused by new development on the City’s infrastructure. Fees are used to finance the acquisition, construction and improvement of public facilities needed as a result of this new development. A separate fund has been established to account for the impact of new development on each of the following types of facilities: Streets (Fund 261), Traffic Signals (Fund 262), Community Centers (Fund 263), and Police Facilities (Fund 264) Although not included in the City’s DIF program, this report also includes reporting for the City’s sewer connection fees as well to comply with California Government Code section 66013. The activity for these fees is accounted for in the Sewer Capital Improvement Fund (Fund 502).
California Government Code sections 66006 (b) and 66013 require the City prepare and make available to the public the DIF and Sewer Connection Fees Report within 180 days after the last day of each fiscal year. The City Council must review the annual report at a regularly scheduled public meeting after the information is made available to the public. The report was made available to the public for review through public notification on November 13, 2023.
Respectfully submitted,
Michelle Bannigan
Michelle Bannigan
Finance Director
i
EXHIBIT A
1 INTRODUCTION
LEGAL REQUIREMENTS FOR DEVELOPMENT IMPACT FEE REPORTING A. California Government Code Section 66006 (b)
Government Code Section 66006 (b) defines the specific reporting requirements for local agencies that impose AB 1600 DIF on new development. Annually, for each separate fund established for the collection and expenditure of DIFs, the local agency shall, within 180 days after the last day of each fiscal year, make available to the public the information shown below for the most recent fiscal year.
A brief description of the fee;
The amount of the fee;
The beginning and ending balance of the account or fund; The amount of the fees collected, and the interest earned; An identification of each public improvement on which fees were expended and the amount of the expenditures on each improvement, including the total percentage of the cost of the public improvement that was funded with fees; An identification of an approximate date by which the construction of the public improvement will commence, if the local agency determines that sufficient funds have been collected to complete financing on an incomplete public improvement; A description of each interfund transfer or loan made from the account or fund, including the public improvement on which the transferred or loaned fees will be expended, and, in the case of an interfund loan, the date on which the loan will be repaid, and the rate of interest that the account or fund will receive on the loan; and The amount of refunds made due to insufficient funds being collected to complete financing on incomplete public improvements, and the amount of reallocation of funds made due to administrative costs of refunding unexpended revenues exceeding the amount to be refunded.
B. California Government Code Section 66001 (d)
For all funds established for the collection and expenditure of DIFs, Government Code Section 66001 (d) has additional requirements. For the fifth fiscal year following the first deposit into the fund and every five years thereafter, the local agency shall make all of the following findings with respect to that portion of the fund remaining unexpended, whether committed or uncommitted:
Identify the purpose to which the fee is to be put;
Demonstrate a reasonable relationship between the fee and purpose for which it is charged;
EXHIBIT A
2 Identify all sources and amounts of funding anticipated to complete financing in incomplete improvements; and
Designate the approximate dates on which the funding is expected to be deposited into the appropriate account or fund.
C. Additional Notes
The State of California Government Code Section 66002 states that local agencies that have developed a fee program may adopt a Capital Improvement Program (CIP) indicating the approximate location, size, and timing of projects, plus an estimate for the cost of all facilities or improvements to be financed by fees.
D. Establishing a Reasonable Relationship Between the Fee and the Purpose for Which It Is Charged
On April 12, 2011, the City Council adopted Ordinance No. 977, establishing a DIF program.
The DIF fees became effective on June 12, 2011 and are applied to new or expanded commercial development, new residential development, and upon uses which intensify the use of existing commercial or residential structures. Adjustment to the fees is generally made annually in accordance with the Bureau of Labor Statistics Consumer Price Index for all Urban Consumers. The DIF’s nexus study sets forth the relationship between contemplated future development, facilities needed to serve future development and the estimated costs for those improvements based on the current General Plan.
DESCRIPTION AND PURPOSE OF DEVELOPMENT IMPACT FEES
The City collects DIFs to offset and address the impacts of new development on facilities and infrastructure. Currently, there are four DIF categories: Streets, Traffic Signals, Community Centers, and Police Facilities. While each fee category has its own methodology for determining fees, two main principles apply throughout:
1) The City aims to maintain the existing level of service as the City continues to grow; and 2) New development should pay its fair share of the City’s infrastructure needs.
Streets – To provide for the expansion of existing primary and secondary arterial streets as set forth in the nexus study. The purpose of the streets impact fee is to fund roadway improvements to serve new development. The street impact fees will be used to widen and restripe streets to provide additional lanes. The need for street improvements is based on the trip demand placed on the system by new development.
Traffic Signals – To provide for additional traffic signals as set forth in the nexus study. The Public Works Department identified a list of traffic signals at intersections on the primary circulation system with the changes in land use and the resulted changes in number of lanes and traffic flow that will be needed to serve development within the City. Thirteen traffic signals were identified that will require improvement in order to better handle the change in traffic flow in the City due to new development.
EXHIBIT A
3 Community Centers – To provide for the expansion, design and construction of community centers as set forth in the nexus study. The purpose of the fee is to ensure that new development funds its fair share of community centers, based on facilities referenced in the 2011 DIF nexus study. At the time of the nexus study, the City had three community center facilities totaling 27,660 square feet that served a population of approximately 39,000 residents. The nexus study provides for an additional 709 square feet of additional community centers per each residential population increase of 1,000.
Police Facilities – To provide an adequate level of police services. The increased need for services necessitates the construction of an additional facility in order that efficient services may be provided. As of the 2011 DIF nexus study, the Stanton Police Station included an 8,000 square foot facility for 34 police officers, which is approximately 235 square feet per sworn police officer.
As the City’s population increases due to new development, an increase in police facilities space will be needed to provide administrative support space and other police facilities for a larger police staff. Demand for services and associated facilities are based on the City’s residential population.
DESCRIPTION AND PURPOSE OF SEWER CONNECTION FEE
The most recent sewer connection fee was approved by the City Council on June 12, 2018, with the adoption of Resolution No. 2018-19. The purpose of the fee is to connect a structure to the public sewer system. Similar to California Government Code section 66006 (b). California Government Code section 66013 (d) defines the specific reporting requirements for local agencies that impose a fee for sewer connections. The local agency shall make available to the public, within 180 days after the last day of the fiscal year, the following information for that fiscal year:
A description of the charges deposited in the fund;
The beginning and ending balance of the account or fund and the interest earned from investment of moneys in the fund;
The amount of charged collected in that fiscal year.
An identification of each public improvement on which charges were expended and the amount of the expenditure for each improvement, including the total percentage of the cost of the public improvement that was funded with those charges if more than one source of funding was used;
An identification of each public improvement on which charges were expended that was completed during that fiscal year;
Each public improvement that is anticipated to be undertaken in the following fiscal year; and
A description of each interfund transfer or loan made from the capital facilities fund.
The information provided, in the case of an interfund transfer, shall identify the public improvements on which the transferred moneys are, or will be expended. The information, in the case of an interfund loan, shall include the date on which the loan will be repaid, and the rate of interest that fund will receive on the loan.
EXHIBIT A
4 FEE SCHEDULE
The table below lists Fees in effect as of June 30, 2023.
Developer Impact Fees
Sewer Connection Fee
The City’s sewer connection fee is $2,900 per connection.
Fee Low Density
Median
Density
High Density
(1)
Street Fee $ 650 $ 456 $ 398
Traffic Signal Fee $ 145 $ 102 $ 89
Community Center Fee $ 295 $ 295 $ 295
Police Facilities Fee $ 267 $ 267 $ 267
Total DIF $ 1,357 $ 1,120 $ 1,049
EXHIBIT A
Streets Traffic Signals Community Police Sewer
Impact Fee Impact Fee Centers Fee Facilities Fee Connection Fee (Fund 261) (Fund 262) (Fund 263) (Fund 264) (Fund 502)
Beginning Fund Balance 06/30/22 $ 101,872.44 -$ 169,388.42 $ $ 153,046.56 $ 2,844.13 Revenues
Developer Fees 1,287.13 5,753.60 4,266.38 3,861.43 -
Sewer Connection Fees - - - - 105.00Interest Income 2,749.07 15.95 4,502.27 4,068.73 77.32 Unrealized Gains (Losses) (818.81) (7.74) (1,328.94) (1,201.31) (22.48) Total Revenues 7,683.86 1,295.34 7,439.71 6,728.85 159.84 Expenditures
None - - - - -
Total Expenditures - - - - -
Ending Fund Balance (A) 06/30/23 $ 109,556.30 $ 1,295.34 $ 176,828.13 $ 159,775.41 $ 3,003.97Five-Year Revenue Test:
Fiscal Year 2018/19 $ 47,673.94 $ 10,662.11 $ 33,398.85 $ 30,228.79 Fiscal Year 2019/20 59,848.87 13,383.08 43,237.84 39,133.91 Fiscal Year 2020/21 58,410.82 13,140.33 41,080.23 36,914.04 Fiscal Year 2021/22 20,593.00 4,459.14 13,995.62 12,669.95 Fiscal Year 2022/23 7,683.86 1,295.34 7,439.71 6,728.85 Total Revenue Received for Five-Year Period Ended 6/30/2023 (B) $ 194,210.49 $ 42,940.00 $ 139,152.25 $ 125,675.54 Developer Impact Fees
CITY OF STANTON
Developer Impact Fees/Sewer Connection Fees
Pursuant to Government Code Sections 66006 and 66013
as of June 30, 2023
Financial Summary Report of
5 EXHIBIT A
Streets Traffic Signals Community Police Sewer
Impact Fee Impact Fee Centers Fee Facilities Fee Connection Fee (Fund 261) (Fund 262) (Fund 263) (Fund 264) (Fund 502)
Developer Impact Fees
CITY OF STANTON
Developer Impact Fees/Sewer Connection Fees
Pursuant to Government Code Sections 66006 and 66013
as of June 30, 2023
Financial Summary Report of
Unexpended Impact Fees and Interest in Excess of Total Receipts for Last Five Years (A) Less (B) -$ -$ $ 37,675.88 $ 34,099.87 Committed to Capital Projects - Fiscal Year 2023/24 -$ -$ -$ -$ Amount in Excess of Allowed Deposit -$ -$ $ 37,675.88 $ 34,099.87 SEE NOTE 1 SEE NOTE 1 SEE NOTE 2 SEE NOTE 3
Notes:
(2) - Community Centers Fees have not been committed to a future project as of June 30, 2023, because the City is still accumulatingsufficient revenue to fund the cost of new facilities (or increase the square footage of existing facilities). Per the 2011 DIF nexus study, theestimated cost of a new Community Center facility was $2.2 million.(3) - Police Facilities Fees have not been committed to a future project as of June 30, 2023, because the City is still accumulating sufficientrevenue to fund the cost of new facilities (or increase the square footage of existing facilities). Per the 2011 DIF nexus study, the estimatedcost of a new facility was $2 million. 6 (1) - The five-year revenue test is met in accordance with Government Code Section 66001(d).
EXHIBIT A
7 NOTE TO THE DEVELOPMENT IMPACT FEE REPORT
The note addresses an item required by California Government Code Section 66006 (b).
Note 1 – Refund of Developer Fee
At this time, all fees being collected pursuant to the DIF program have been earmarked for current or future capital projects necessary to maintain the current levels of services within existing service areas to serve new development.
EXHIBIT A
8 DEVELOPMENT IMPACT FEE AND SEWER CONNECTION FEES PROJECT
IDENTIFICATION
The DIF projects identification table illustrates the following reporting requirements defined by California Government Code Section 66006 (b):
An identification of each public improvement on which fees were expended and the amount of expenditures on each improvement, including the total percentage of the cost of the public improvement that was funded with fees.
An identification of an approximate date by which the construction of the public improvement will commence if the local agency determines that sufficient funds have been collected to complete financing on an incomplete public improvement.
The Sewer Connection Fee projects identification table illustrates the following reporting requirements defined by California Government Code Section 66013 (d):
An identification of each public improvement on which fees were expended and the amount of expenditures on each improvement, including the total percentage of the cost of the public improvement that was funded with fees.
An identification of each public improvement that is anticipated to be undertaken in the following fiscal year.
EXHIBIT A
Estimated Estimated Budget Actual % Funded
Completion Project Through Through with Developer
Project No. Project Name Project Phase Date Cost 6/30/2023 6/30/2023 % Complete Impact Fees Streets Impact Fee (Fund 261)
211-3510-710205 Cerritos Avenue Widening Project Completed June 2020 208,963 $ $ 140,200 $ 140,200 100.0% 67.1% N/A Garden Grove Blvd. Widening (East of Beach Blvd.) Not Planned N/A 1,300,000 - - 0.0% 0.0% N/A Dale Ave. Widening (North of Lola Ave. to S. of Chapman) Not Planned N/A 4,225,000 - - 0.0% 0.0%N/A Cerritos Avenue Widening (W. of Knott Ave. to E. of Magnolia) Not Planned N/A 5,225,000 - - 0.0% 0.0%N/A Katella Widening (Beach to Dale) Not Planned N/A 1,100,000 - - 0.0% 0.0% Total Streets DIF 12,058,963 140,200 140,200 0.0% 1.2%
Traffic Signals Impact Fee (Fund 262)
2021-105 Fiscal Year 2020/21 Annual Traffic Signal Improvements Not Started June 2022 109,784 55,109 54,068 100.0% 49.2% N/A Traffic Signal at Katella Ave./Dale Ave. Not Planned N/A 1,000,000 - - 0.0% 0.0% N/A Traffic Signal at Katella Ave./Magnolia Ave. Not Planned N/A 1,000,000 - - 0.0% 0.0% N/A Traffic Signal at Orangewood Ave./Knott Ave. Not Planned N/A 1,000,000 - - 0.0% 0.0% N/A Traffic Signal at Orangewood Ave./Western Ave. Not Planned N/A 1,000,000 - - 0.0% 0.0% N/A Traffic Signal at Orangewood Ave./Dale Ave. Not Planned N/A 1,000,000 - - 0.0% 0.0% N/A Traffic Signal at Chapman Ave./Dale Ave. Not Planned N/A 1,000,000 - - 0.0% 0.0% N/A Traffic Signal at Lampson Ave./Beach Blvd. Not Planned N/A 1,000,000 - - 0.0% 0.0% N/A Traffic Signal at Garden Grove Blvd./Beach Blvd. Not Planned N/A 1,000,000 - - 0.0% 0.0% N/A Traffic Signal at Cerritos Ave./Knott Ave. Not Planned N/A 1,000,000 - - 0.0% 0.0% N/A Traffic Signal at Cerritos Ave./Western Ave. Not Planned N/A 1,000,000 - - 0.0% 0.0% N/A Traffic Signal at Cerritos Ave./Beach Blvd. Not Planned N/A 1,000,000 - - 0.0% 0.0% N/A Traffic Signal at Cerritos Ave./Dale Ave. Not Planned N/A 1,000,000 - - 0.0% 0.0% N/A Traffic Signal at Cerritos Ave./Magnolia Ave. Not Planned N/A 1,000,000 - - 0.0% 0.0% Total Traffic Signals DIF 13,109,784 55,109 54,068 0.0% 0.4% Community Centers Impact Fee (Fund 263)
N/A Additional 14,170 square feet of community centers Not Planned N/A 2,210,000 - - 0.0% 0.0% Total Community Centers DIF 2,210,000 - - 0.0% 0.0%
Police Facilities Impact Fee (Fund 264)
N/A Additional 4,000 square feet of police facilities Not Planned N/A - 2,000,000 - 0.0% 0.0% Note:
(1) This schedule was prepared based on the 2011 Developer Impact Fee Nexus Study and the City's Capital Improvement Program Budget.
CITY OF STANTON
Developer Impact Fees Project Identification
Fiscal Year Ended June 30, 2023
Developer Impact Fees
9 EXHIBIT A
Estimated Estimated % Funded
Completion Project with Sewer
Project No. Project Name Project Phase Date Cost Budget Actual % Complete Connection Fees Fiscal Year 2021/22
No expenditures were incurred during Fiscal Year 2021/22. The City has been working on an update of its Sewer Master Plan update to identify future sewer capital project needs.Fiscal Year 2022/23No expenditures were incurred during Fiscal Year 2022/23. The City has been working on an update of its Sewer Master Plan update to identify future sewer capital project needs.Projects Planned for Fiscal Year 2023/24 2024-301 Annual Sewer Rehabilitation Project-Fiscal Year 2023/24 Planned June 2025 $ 550,000
CITY OF STANTON
Sewer Connection Fees Project Identification
Fiscal Year Ended June 30, 2023
Sewer Connection Fee Portion
10 EXHIBIT A
CITY OF STANTON
ANNUAL DEVELOPMENT
IMPACT FEE REPORT
(AB1600)
EXHIBIT A
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Table of Contents
Letter of Transmittal ............................................................................................................. i
INTRODUCTION
Legal Requirement for Development Impact Fee Reporting .......................................... 1 Description and Purpose of Development Impact Fees .................................................. 2 Description and Purpose of Sewer Connection Fee ...................................................... 3 Fee Schedule ................................................................................................................. 4
FINANCIAL SUMMARY REPORT
Summary Report – Development Impact/Sewer Connection Fees ............................... 5
NOTE TO THE DEVELOPMENT IMPACT FEE REPORT
Note 1 – Refund of Developer Fee ................................................................................ 7
DEVELOPMENT IMPACT FEE AND SEWER CONNECTION FEES
PROJECTS IDENTIFICATION ............................................................................................ 8
EXHIBIT A
7800 Katella Avenue
Stanton, CA 90680
P | (714) 379-9222
F | (714) 890-1443
[email protected]
www.ci.stanton.ca.us
November 13, 2023
To the Honorable Mayor, Members of the City Council, and Citizens of Stanton:
State law requires any local agency that imposes development impact fees to prepare a five-year report providing specific information about those fees. Therefore, in accordance with the provisions of the California Government Code Section 66000 et seq., as amended by the Assembly Bill (AB) 518 and Senate Bill (SB) 1693, I hereby submit the Development Impact Fee (DIF) Report for the City of Stanton, California for the Fiscal Year (FY) ended June 30, 2023.
DIFs are charged by the local government agencies in connection with approval of development projects. The purpose of these fees is to defray all or a portion of the cost of public facilities related to the development project. The legal requirements for enactment of a DIF program are set forth in Government Code Sections 66000-66025 (the “Mitigation Fee Act”), the bulk of which was adopted as 1987’s AB 1600 and, thus, commonly referred to as “AB 1600 requirements”.
In Stanton, DIFs are collected on or before the issuance of building permit or date the certificate of occupancy is issued for the purpose of mitigating the impacts caused by new development on the City’s infrastructure. Fees are used to finance the acquisition, construction and improvement of public facilities needed as a result of this new development. A separate fund has been established to account for the impact of new development on each of the following types of facilities: Streets (Fund 261), Traffic Signals (Fund 262), Community Centers (Fund 263), and Police Facilities (Fund 264) Although not included in the City’s DIF program, this report also includes reporting for the City’s sewer connection fees as well to comply with California Government Code section 66013. The activity for these fees is accounted for in the Sewer Capital Improvement Fund (Fund 502).
California Government Code sections 66006 (b) and 66013 require the City prepare and make available to the public the DIF and Sewer Connection Fees Report within 180 days after the last day of each fiscal year. The City Council must review the annual report at a regularly scheduled public meeting after the information is made available to the public. The report was made available to the public for review through public notification on November 13, 2023.
Respectfully submitted,
Michelle Bannigan
Michelle Bannigan
Finance Director
i
EXHIBIT A
1 INTRODUCTION
LEGAL REQUIREMENTS FOR DEVELOPMENT IMPACT FEE REPORTING A. California Government Code Section 66006 (b)
Government Code Section 66006 (b) defines the specific reporting requirements for local agencies that impose AB 1600 DIF on new development. Annually, for each separate fund established for the collection and expenditure of DIFs, the local agency shall, within 180 days after the last day of each fiscal year, make available to the public the information shown below for the most recent fiscal year.
A brief description of the fee;
The amount of the fee;
The beginning and ending balance of the account or fund; The amount of the fees collected, and the interest earned; An identification of each public improvement on which fees were expended and the amount of the expenditures on each improvement, including the total percentage of the cost of the public improvement that was funded with fees; An identification of an approximate date by which the construction of the public improvement will commence, if the local agency determines that sufficient funds have been collected to complete financing on an incomplete public improvement; A description of each interfund transfer or loan made from the account or fund, including the public improvement on which the transferred or loaned fees will be expended, and, in the case of an interfund loan, the date on which the loan will be repaid, and the rate of interest that the account or fund will receive on the loan; and The amount of refunds made due to insufficient funds being collected to complete financing on incomplete public improvements, and the amount of reallocation of funds made due to administrative costs of refunding unexpended revenues exceeding the amount to be refunded.
B. California Government Code Section 66001 (d)
For all funds established for the collection and expenditure of DIFs, Government Code Section 66001 (d) has additional requirements. For the fifth fiscal year following the first deposit into the fund and every five years thereafter, the local agency shall make all of the following findings with respect to that portion of the fund remaining unexpended, whether committed or uncommitted:
Identify the purpose to which the fee is to be put;
Demonstrate a reasonable relationship between the fee and purpose for which it is charged;
EXHIBIT A
2 Identify all sources and amounts of funding anticipated to complete financing in incomplete improvements; and
Designate the approximate dates on which the funding is expected to be deposited into the appropriate account or fund.
C. Additional Notes
The State of California Government Code Section 66002 states that local agencies that have developed a fee program may adopt a Capital Improvement Program (CIP) indicating the approximate location, size, and timing of projects, plus an estimate for the cost of all facilities or improvements to be financed by fees.
D. Establishing a Reasonable Relationship Between the Fee and the Purpose for Which It Is Charged
On April 12, 2011, the City Council adopted Ordinance No. 977, establishing a DIF program.
The DIF fees became effective on June 12, 2011 and are applied to new or expanded commercial development, new residential development, and upon uses which intensify the use of existing commercial or residential structures. Adjustment to the fees is generally made annually in accordance with the Bureau of Labor Statistics Consumer Price Index for all Urban Consumers. The DIF’s nexus study sets forth the relationship between contemplated future development, facilities needed to serve future development and the estimated costs for those improvements based on the current General Plan.
DESCRIPTION AND PURPOSE OF DEVELOPMENT IMPACT FEES
The City collects DIFs to offset and address the impacts of new development on facilities and infrastructure. Currently, there are four DIF categories: Streets, Traffic Signals, Community Centers, and Police Facilities. While each fee category has its own methodology for determining fees, two main principles apply throughout:
1) The City aims to maintain the existing level of service as the City continues to grow; and 2) New development should pay its fair share of the City’s infrastructure needs.
Streets – To provide for the expansion of existing primary and secondary arterial streets as set forth in the nexus study. The purpose of the streets impact fee is to fund roadway improvements to serve new development. The street impact fees will be used to widen and restripe streets to provide additional lanes. The need for street improvements is based on the trip demand placed on the system by new development.
Traffic Signals – To provide for additional traffic signals as set forth in the nexus study. The Public Works Department identified a list of traffic signals at intersections on the primary circulation system with the changes in land use and the resulted changes in number of lanes and traffic flow that will be needed to serve development within the City. Thirteen traffic signals were identified that will require improvement in order to better handle the change in traffic flow in the City due to new development.
EXHIBIT A
3 Community Centers – To provide for the expansion, design and construction of community centers as set forth in the nexus study. The purpose of the fee is to ensure that new development funds its fair share of community centers, based on facilities referenced in the 2011 DIF nexus study. At the time of the nexus study, the City had three community center facilities totaling 27,660 square feet that served a population of approximately 39,000 residents. The nexus study provides for an additional 709 square feet of additional community centers per each residential population increase of 1,000.
Police Facilities – To provide an adequate level of police services. The increased need for services necessitates the construction of an additional facility in order that efficient services may be provided. As of the 2011 DIF nexus study, the Stanton Police Station included an 8,000 square foot facility for 34 police officers, which is approximately 235 square feet per sworn police officer.
As the City’s population increases due to new development, an increase in police facilities space will be needed to provide administrative support space and other police facilities for a larger police staff. Demand for services and associated facilities are based on the City’s residential population.
DESCRIPTION AND PURPOSE OF SEWER CONNECTION FEE
The most recent sewer connection fee was approved by the City Council on June 12, 2018, with the adoption of Resolution No. 2018-19. The purpose of the fee is to connect a structure to the public sewer system. Similar to California Government Code section 66006 (b). California Government Code section 66013 (d) defines the specific reporting requirements for local agencies that impose a fee for sewer connections. The local agency shall make available to the public, within 180 days after the last day of the fiscal year, the following information for that fiscal year:
A description of the charges deposited in the fund;
The beginning and ending balance of the account or fund and the interest earned from investment of moneys in the fund;
The amount of charged collected in that fiscal year.
An identification of each public improvement on which charges were expended and the amount of the expenditure for each improvement, including the total percentage of the cost of the public improvement that was funded with those charges if more than one source of funding was used;
An identification of each public improvement on which charges were expended that was completed during that fiscal year;
Each public improvement that is anticipated to be undertaken in the following fiscal year; and
A description of each interfund transfer or loan made from the capital facilities fund.
The information provided, in the case of an interfund transfer, shall identify the public improvements on which the transferred moneys are, or will be expended. The information, in the case of an interfund loan, shall include the date on which the loan will be repaid, and the rate of interest that fund will receive on the loan.
EXHIBIT A
4 FEE SCHEDULE
The table below lists Fees in effect as of June 30, 2023.
Developer Impact Fees
Sewer Connection Fee
The City’s sewer connection fee is $2,900 per connection.
Fee Low Density
Median
Density
High Density
(1)
Street Fee $ 650 $ 456 $ 398
Traffic Signal Fee $ 145 $ 102 $ 89
Community Center Fee $ 295 $ 295 $ 295
Police Facilities Fee $ 267 $ 267 $ 267
Total DIF $ 1,357 $ 1,120 $ 1,049
EXHIBIT A
Streets Traffic Signals Community Police Sewer
Impact Fee Impact Fee Centers Fee Facilities Fee Connection Fee (Fund 261) (Fund 262) (Fund 263) (Fund 264) (Fund 502)
Beginning Fund Balance 06/30/22 101,872.44 $ -$ 169,388.42 $ 153,046.56 $ 2,844.13 $ Revenues
Developer Fees 5,753.60 1,287.13 4,266.38 3,861.43 -
Sewer Connection Fees - - - - 105.00Interest Income 2,749.07 15.95 4,502.27 4,068.73 77.32 Unrealized Gains (Losses) (818.81) (7.74) (1,328.94) (1,201.31) (22.48) Total Revenues 7,683.86 1,295.34 7,439.71 6,728.85 159.84 Expenditures
None - - - - -
Total Expenditures - - - - -
Ending Fund Balance (A) 06/30/23 109,556.30 $ 1,295.34 $ 176,828.13 $ 159,775.41 $ 3,003.97 $ Five-Year Revenue Test:
Fiscal Year 2018/19 47,673.94 $ 10,662.11 $ 33,398.85 $ 30,228.79 $ Fiscal Year 2019/20 59,848.87 13,383.08 43,237.84 39,133.91 Fiscal Year 2020/21 58,410.82 13,140.33 41,080.23 36,914.04 Fiscal Year 2021/22 20,593.00 4,459.14 13,995.62 12,669.95 Fiscal Year 2022/23 7,683.86 1,295.34 7,439.71 6,728.85 Total Revenue Received for Five-Year Period Ended 6/30/2023 (B) 194,210.49 $ 42,940.00 $ 139,152.25 $ 125,675.54 $ Developer Impact Fees
CITY OF STANTON
Developer Impact Fees/Sewer Connection Fees
Pursuant to Government Code Sections 66006 and 66013
as of June 30, 2023
Financial Summary Report of
5 EXHIBIT A
Streets Traffic Signals Community Police Sewer
Impact Fee Impact Fee Centers Fee Facilities Fee Connection Fee (Fund 261) (Fund 262) (Fund 263) (Fund 264) (Fund 502)
Developer Impact Fees
CITY OF STANTON
Developer Impact Fees/Sewer Connection Fees
Pursuant to Government Code Sections 66006 and 66013
as of June 30, 2023
Financial Summary Report of
Unexpended Impact Fees and Interest in Excess of Total Receipts for Last Five Years (A) Less (B) -$ -$ 37,675.88 $ 34,099.87 $ Committed to Capital Projects - Fiscal Year 2023/24 -$ -$ -$ -$ Amount in Excess of Allowed Deposit -$ -$ 37,675.88 $ 34,099.87 $ SEE NOTE 1 SEE NOTE 1 SEE NOTE 2 SEE NOTE 3
Notes:
(1) - The five-year revenue test is met in accordance with Government Code Section 66001(d).(2) - Community Centers Fees have not been committed to a future project as of June 30, 2023, because the City is still accumulatingsufficient revenue to fund the cost of new facilities (or increase the square footage of existing facilities). Per the 2011 DIF nexus study, theestimated cost of a new Community Center facility was $2.2 million.(3) - Police Facilities Fees have not been committed to a future project as of June 30, 2023, because the City is still accumulating sufficientrevenue to fund the cost of new facilities (or increase the square footage of existing facilities). Per the 2011 DIF nexus study, the estimatedcost of a new facility was $2 million. 6 EXHIBIT A
7 NOTE TO THE DEVELOPMENT IMPACT FEE REPORT
The note addresses an item required by California Government Code Section 66006 (b).
Note 1 – Refund of Developer Fee
At this time, all fees being collected pursuant to the DIF program have been earmarked for current or future capital projects necessary to maintain the current levels of services within existing service areas to serve new development.
EXHIBIT A
8 DEVELOPMENT IMPACT FEE AND SEWER CONNECTION FEES PROJECT
IDENTIFICATION
The DIF projects identification table illustrates the following reporting requirements defined by California Government Code Section 66006 (b):
An identification of each public improvement on which fees were expended and the amount of expenditures on each improvement, including the total percentage of the cost of the public improvement that was funded with fees.
An identification of an approximate date by which the construction of the public improvement will commence if the local agency determines that sufficient funds have been collected to complete financing on an incomplete public improvement.
The Sewer Connection Fee projects identification table illustrates the following reporting requirements defined by California Government Code Section 66013 (d):
An identification of each public improvement on which fees were expended and the amount of expenditures on each improvement, including the total percentage of the cost of the public improvement that was funded with fees.
An identification of each public improvement that is anticipated to be undertaken in the following fiscal year.
EXHIBIT A
Estimated Estimated Budget Actual % Funded
Completion Project Through Through with Developer
Project No. Project Name Project Phase Date Cost 6/30/2023 6/30/2023 % Complete Impact Fees Streets Impact Fee (Fund 261)
211-3510-710205 Cerritos Avenue Widening Project Completed June 2020 208,963 $ 140,200 $ 140,200 $ 100.0% 67.1% N/A Garden Grove Blvd. Widening (East of Beach Blvd.) Not Planned N/A 1,300,000 - - 0.0% 0.0% N/A Dale Ave. Widening (North of Lola Ave. to S. of Chapman) Not Planned N/A 4,225,000 - - 0.0% 0.0%N/A Cerritos Avenue Widening (W. of Knott Ave. to E. of Magnolia) Not Planned N/A 5,225,000 - - 0.0% 0.0%N/A Katella Widening (Beach to Dale) Not Planned N/A 1,100,000 - - 0.0% 0.0% Total Streets DIF 12,058,963 140,200 140,200 0.0% 1.2%
Traffic Signals Impact Fee (Fund 262)
2021-105 Fiscal Year 2020/21 Annual Traffic Signal Improvements Not Started June 2022 109,784 55,109 54,068 100.0% 49.2% N/A Traffic Signal at Katella Ave./Dale Ave. Not Planned N/A 1,000,000 - - 0.0% 0.0% N/A Traffic Signal at Katella Ave./Magnolia Ave. Not Planned N/A 1,000,000 - - 0.0% 0.0% N/A Traffic Signal at Orangewood Ave./Knott Ave. Not Planned N/A 1,000,000 - - 0.0% 0.0% N/A Traffic Signal at Orangewood Ave./Western Ave. Not Planned N/A 1,000,000 - - 0.0% 0.0% N/A Traffic Signal at Orangewood Ave./Dale Ave. Not Planned N/A 1,000,000 - - 0.0% 0.0% N/A Traffic Signal at Chapman Ave./Dale Ave. Not Planned N/A 1,000,000 - - 0.0% 0.0% N/A Traffic Signal at Lampson Ave./Beach Blvd. Not Planned N/A 1,000,000 - - 0.0% 0.0% N/A Traffic Signal at Garden Grove Blvd./Beach Blvd. Not Planned N/A 1,000,000 - - 0.0% 0.0% N/A Traffic Signal at Cerritos Ave./Knott Ave. Not Planned N/A 1,000,000 - - 0.0% 0.0% N/A Traffic Signal at Cerritos Ave./Western Ave. Not Planned N/A 1,000,000 - - 0.0% 0.0% N/A Traffic Signal at Cerritos Ave./Beach Blvd. Not Planned N/A 1,000,000 - - 0.0% 0.0% N/A Traffic Signal at Cerritos Ave./Dale Ave. Not Planned N/A 1,000,000 - - 0.0% 0.0% N/A Traffic Signal at Cerritos Ave./Magnolia Ave. Not Planned N/A 1,000,000 - - 0.0% 0.0% Total Traffic Signals DIF 13,109,784 55,109 54,068 0.0% 0.4% Community Centers Impact Fee (Fund 263)
N/A Additional 14,170 square feet of community centers Not Planned N/A 2,210,000 - - 0.0% 0.0% Total Community Centers DIF 2,210,000 - - 0.0% 0.0%
Police Facilities Impact Fee (Fund 264)
N/A Additional 4,000 square feet of police facilities Not Planned N/A 2,000,000 - - 0.0% 0.0% Note:
(1) This schedule was prepared based on the 2011 Developer Impact Fee Nexus Study and the City's Capital Improvement Program Budget.
CITY OF STANTON
Developer Impact Fees Project Identification
Fiscal Year Ended June 30, 2023
Developer Impact Fees
9 EXHIBIT A
Estimated Estimated % Funded
Completion Project with Sewer
Project No. Project Name Project Phase Date Cost Budget Actual % Complete Connection Fees Fiscal Year 2021/22
No expenditures were incurred during Fiscal Year 2021/22. The City has been working on an update of its Sewer Master Plan update to identify future sewer capital project needs.Fiscal Year 2022/23No expenditures were incurred during Fiscal Year 2022/23. The City has been working on an update of its Sewer Master Plan update to identify future sewer capital project needs.Projects Planned for Fiscal Year 2023/24 2024-301 Annual Sewer Rehabilitation Project-Fiscal Year 2023/24 Planned June 2025 550,000 $
CITY OF STANTON
Sewer Connection Fees Project Identification
Fiscal Year Ended June 30, 2023
Sewer Connection Fee Portion
10 EXHIBIT
A
ORDINANCE NO. 1135
PAGE 1 OF 9
ORDINANCE NO. 1135
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF STANTON, CALIFORNIA, ADDING SECTION 12.08.450 TO AND AMENDING SECTIONS 12.08.010 AND
12.12.010 OF THE CITY’S MUNICIPAL CODE, REPEALING THE CITY’S ADMINISTRATIVE POLICY NO. VI-1-1, AND DETERMINING THE ORDINANCE TO BE
EXEMPT FROM CEQA PURSUANT TO STATE CEQA GUIDELINES SECTIONS 15060(c)(2), 15061(b)(3) AND 15378(b)(5)
WHEREAS, the City of Stanton, California (“City”) is a municipal corporation, duly organized under the constitution and laws of the State of California; and WHEREAS, pursuant to the California Constitution, Article, XI, section 7, the City of Stanton may make and enforce within its limits all local, police, sanitary, and other ordinances and regulations not in conflict with general law; and WHEREAS, the California Constitution grants the City the right to adopt reasonable regulations regarding its rights-of-way, which reasonable regulations would include the establishment of protections on newly paved streets and the creation of clear enforcement mechanisms relating to encroachment permits; and
WHEREAS, the public right-of-way is a unique public resource held in trust for the benefit of the public; this physically limited resource requires proper management to maximize its efficiency and minimize the costs to taxpayers, to protect against foreclosure of future economic expansion because of premature exhaustion of the public right-of-way, and to minimize the inconvenience to and negative effects on the public from use of the public right-of-way by contractors and utility companies; and
WHEREAS, to protect the integrity and quality of streets and public right-of-way, the Stanton Municipal Code sets forth, in Chapter 12.08 (“Streets and Sidewalks -- Excavation--Excavations”), a permitting and fee system for encroachments and trench cuts to City streets; and
WHEREAS, protections on newly paved streets would safeguard the City’s investment in its infrastructure, preserve the life of streets, and provide a safe driving surface and a pleasing appearance to roadway surfaces that have undergone utility work; and WHEREAS, the City desires to establish protections on newly paved streets through the adoption of this Ordinance to further the purposes stated herein; and WHEREAS, pursuant to California Government Code section 53069.4, the City may, by ordinance, make the violation of any ordinance enacted by its City Council subject to a civil administrative fine or penalty; and
Item: 11A
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ORDINANCE NO. 1135
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WHEREAS, given the foregoing, the City has determined that it is appropriate to amend sections 12.080.010 and 12.12.010 to clarify that Work on City Property or in the public right-of-way without a valid encroachment permit is prohibited and to implement penalties for violating the aforementioned sections.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF STANTON DOES ORDAIN AS FOLLOWS:
SECTION 1: The recitals above are each incorporated by reference and adopted as findings by the City Council.
SECTION 2: The City Council hereby finds that the Ordinance is not subject to the California Environmental Quality Act (“CEQA”) pursuant to State CEQA Guidelines sections 15060(c)(2), 15061(b)(3), and 15378(b)(5). The activity is not subject to CEQA because it will not result in a direct or reasonably foreseeable physical change in the environment; and the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment.
Where it can be seen with certainty that there is no possibility that the activity may have a significant effect on the environment, the activity is not subject to CEQA.
SECTION 3: Section 12.08.450 of Chapter 12.08 of Title 12 of the Stanton Municipal Code, entitled, “Protections on Newly Paved Streets,” is hereby added to read in its entirety as follows (additions are underlined and deletions are in strikeout):
“12.08.450 Protections on Newly Paved Streets
A. Definitions. The following definitions are applicable within this section:
“Asphalt Concrete” (AC) means a blend of aggregate and asphalt binder meeting the specifications set forth in the City of Stanton standard specifications, Orange County standard specifications, and Caltrans Standard Specifications Section 39, " Hot Mix Asphalt," whichever is more stringent or as directed by the Director.
“Director” means Public Works Director or designee.
“Excavate” or “Excavation” means any cutting, drilling, digging, potholing or otherwise disturbing the street surface within the public right-of-way to access or install a utility line or any related facility or for other reasons. “Facility” means any fiber optic, coaxial, or copper cable; communication service equipment; telephone, telecommunications, electric or other wire, line or equipment; utility structure; oil, gas, or other pipeline; duct; conduit; cabinet; tunnel; vault; drain; manhole; splice box; surface location marker; pole; subsurface tiebacks; soil nails; stairs; access ramps; subsurface foundations; landscape features, including curbs around planter areas; ORDINANCE NO. 1135
PAGE 3 OF 9
planter boxes; clocks; bus shelters; phone booths; bike racks; fencing; retaining walls; benches; stockpiles; building materials; and other appurtenances or tangible things located in, upon, above, beneath, or across any public right- of-way.
“Newly Paved Street” means a public street, lane, court, alley, boulevard, median, parkway, parking lot, easement reserved by or dedicated to the city for vehicular or pedestrian travel, or other public right-of-way that was (a) constructed, reconstructed, or overlaid within the past four (4) years, or (b) slurry sealed within the past two (2) years.
“Permit” means written authorization from the Director to excavate, encroach upon, or obstruct a public right-of-way in compliance with this section.
"Public right-of-way" or "right-of-way" means land which by deed, conveyance, agreement, easement, dedication, usage or process of law is reserved for and dedicated to the general public for street, highway, alley, median, public utility, storm drainage, water, sanitary sewer, bikeway or pedestrian walkway purposes.
“Utility” means any person or entity providing electricity, gas, telephone, telecommunications, water, sanitary sewer or other services to customers, and which pursuant to state law or local franchise is entitled to install its facilities in the public right-of-way.
B. Protections on Newly Paved Streets. For streets, alleys, and public places that were constructed, reconstructed, overlaid, or sealed, the following shall apply:
1. Non-emergency street excavation is prohibited for a period of four (4) years from the date of notice of completion of street construction, reconstruction, or overlay.
2. Non-emergency street excavation is prohibited for a period of two (2) years from the date of notice of completion of slurry seal.
Utilities shall plan well enough in advance to determine alternate methods for making necessary repairs to avoid excavating newly resurfaced public streets.
C. Exceptions. Exceptions to the Protections on Newly Paved Streets may be permitted in the following situations, at the discretion of Director:
1. Emergencies that create imminent endangerment of life or property;
2. Interruption of essential utility service;
ORDINANCE NO. 1135
PAGE 4 OF 9
3. Work that is mandated by the city, state, or federal law;
4. Service for new development or new customers where no other reasonable means of providing service exists; and
5. Other situations deemed by the Director to be in the best interest of the general public.
Emergencies and other exceptions do not exempt the permittee from any requirements to repair the pavement as included herein or as conditions of approval of a permit. The provisions of this section shall not apply to officers or employees of the City acting in the discharge of their official duties.
D. Waiver Application. To apply for a waiver to excavate within a public street within four (4) years of the completion date of the street construction, reconstruction, or overlay or within two (2) years of the date of notice of completion of slurry seal, the applicant must submit a written request to the Director. The request must include the following:
1. The location of the excavation.
2. Description of the work to be performed.
3. A statement from the applicant setting forth good cause for why the work was not performed before the public street was resurfaced.
4. A statement from the applicant setting forth good cause for why the work cannot be deferred until after the respective four (4) year or two (2) year time periods referenced in this subsection.
5. A statement from the applicant setting forth good cause for why the work cannot be performed at another location.
E. Permit Conditions. In the event that a waiver is granted under subsection (D) of this section, any excavation in the public street shall be repaired in accordance with any and all conditions of the permit and the following standards:
1. Construction, Reconstruction, Overlay:
i. For street cuts/trenches, on a Newly Paved Street,
perpendicular to traffic lanes (a transverse street cut): The permittee will be required to grind and overlay, two (2) inches of AC, twenty-five (25) feet on both sides of the trench line and for the full width of the street but not less than five (5) feet from the end(s) of the trench. All work requires a properly licensed contractor.
ii. For street cuts/trenches, on a Newly Paved Street, parallel to traffic lanes (a longitudinal street cut): The permittee will be required to grind and overlay two (2) inches of AC, the full width of the street minimum, for the full length of the cut plus ten (10) feet on both ends. All work requires a properly licensed contractor.
ORDINANCE NO. 1135
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2. Slurry Seal:
i. For street cuts/trenches, on a Newly Paved Street,
perpendicular to traffic lanes (a transverse street cut): The permittee will be required to slurry seal, match existing slurry seal, twenty (20) feet on both sides of the trench line and for the full width of all impacted traffic lane(s) cut; but not less than five (5) feet from the end(s) of the trench. If the trench end(s) is less than or equal to five (5) feet from a lane line the adjacent lane shall be included. All work requires a properly licensed contractor.
ii. For street cuts/trenches, on a Newly Paved Street, parallel to traffic lanes (a longitudinal street cut): The permittee will be required to slurry seal, match existing slurry seal, onehalf (1/2) street width minimum, for the full length of the cut/trench plus ten (10) feet on both ends, but not less than or equal to five (5) feet from trench edge both sides of trench, if this limit encroaches into adjacent lane, the other half of the street, then the full lane width shall be included.
All work requires a properly licensed contractor.
3. Microtrenching:
i. For street cuts or trenches on a Newly Paved Street for the purpose of microtrenching, as defined in Government
Code section 65964.5, the Director shall have discretion as to what repairs the permittee will be required to perform on a case-by-case basis.
F. Violation and Penalties. Any street cut, trench, or condition caused or permitted to exist in violation of any of the provisions of this section is a threat to public health, safety, and welfare. Such condition is hereby declared and deemed to be a public nuisance and may be corrected or abated as directed by the Director. In addition to the foregoing, all violations of this section shall be punishable in accordance with Title 1 of this Code.”
SECTION 4: The City Council hereby repeals the City’s Administrative Policy No. VI-1-1 titled “Pavement Cut Policy.”
SECTION 5: Section 12.08.010 of Chapter 12.08 of Title 12 of the Stanton Municipal Code, entitled, “Permit, deposit required,” is hereby amended to read in its entirety as follows (additions are underlined and deletions are in strikeout) ORDINANCE NO. 1135
PAGE 6 OF 9
“12.08.010 Permit, deposit required.
No person, firm or corporation shall make or cause or permit to be made, any excavation in or under the surface of any public street, alley, sidewalk or other public place for the installation, repair or removal of any public conduit, duct or tunnel, or for any other purpose without first obtaining from the city engineer a written permit to make such excavation and make a deposit to cover the cost of inspection and of restoring such public street, alley, sidewalk or other public place to its original condition, together with the incidental expenses in connection therewith as provided in this chapter. No person, firm, contractor, or corporation shall perform any work on or within City Property as defined in Section
12.12.010(A) or the public right-of-way without first obtaining an encroachment permit as required under section 12.12.010 of the Stanton Municipal Code. (Prior code § 12.12.010)
SECTION 6: Section 12.12.010 of Chapter 12.12 of Title 12 of the Stanton Municipal Code, entitled, “Approval of engineer,” is hereby amended to read in its entirety as follows (additions are underlined and deletions are in strikeout) “12.12.010 Approval of engineer.
A. Definitions. The following definitions are applicable within this Title
12.12:
“Facilities” means any fiber optic, coaxial, or copper cable; communication service equipment; telephone, telecommunications, electric or other wire, line or equipment; utility structure; oil, gas, or other pipeline; duct; conduit; cabinet; tunnel; vault; drain; manhole; splice box; surface location marker; pole; subsurface tiebacks; soil nails; stairs; access ramps; subsurface foundations; landscape features, including curbs around planter areas; planter boxes; clocks; bus shelters; phone booths; bike racks; fencing; retaining walls; benches; stockpiles; building materials; and other appurtenances or tangible things located in, upon, above, beneath, or across any City Property or public right- of-way.
“City Property” means both of the following: (i) any easement or license granted to the City; or (ii) any real property owned by the city. “Encroachment Permit” means a permit issued by the City Engineer authorizing Work on or within City Property or the public right-of-way. "Public right-of-way" or "right-of-way" means land which by deed, conveyance, agreement, easement, dedication, usage or process of law is reserved for and dedicated to the general public for street, highway, alley, median, public utility, storm drainage, water, sanitary sewer, bikeway or pedestrian walkway purposes.
ORDINANCE NO. 1135
PAGE 7 OF 9
“Work” means any activity on or within City Property or the public right-of-way that impacts or has the potential to impact Facilities.
B. Unauthorized Work.
1. Subject to subsection (C) below, it is a misdemeanor for any person, firm, corporation, or entity to perform Work on or within City Property or the public right-of-way, without first obtaining a valid Encroachment Permit in compliance with this section 12.12.010.
2. Subject to subsection (C) below, it is a misdemeanor for any person, firm, corporation, or entity to perform Work on or within City Property or the public right-of-way, in violation of any terms or conditions imposed by an Encroachment Permit issued for the Work.
3. Any person, firm, corporation, or entity who violates the provisions of this chapter is guilty of a separate offense for each day, or portion thereof, during which the violation continues C. Exceptions. Subsections (B)(1) and (B)(2) shall not apply to any of the following:
1. Activities by any City employee conducted in the course of their employment.
2. Activities authorized by the City in writing.
3. Actions by first responders and/or members of the public to render assistance or medical care to another person at the scene of an emergency.
D. Penalties. In addition to any other remedies available at law or equity or provided under any other City ordinance, upon discovering a violation of subsection (B)(1) or (B)(2) above, the City may:
1. Require the immediate stoppage and removal of any Workrelated equipment, connections, or tools from City Property or the public right-of-way;
2. After notice in accordance with City standards, terminate water and/or sewer service of any individual or entity responsible for the Work; and
3. Charge the perpetrator an administrative citation as provided for under Section 1.12.070 of the of the Stanton Municipal Code.
ORDINANCE NO. 1135
PAGE 8 OF 9
E. Payment and Appeal Procedures. The payment and appeal procedures for violations of this Ordinance shall be as set forth in Title 1 of the Stanton Municipal Code, as applicable.
F. All applications to the state or any agency thereof for encroachment permits over or access to state highways within the city shall be submitted to the city engineer for approval.
SECTION 7: The City Council hereby directs staff to prepare, execute and file with the Orange County Clerk a Notice of Exemption within five working days of the approval and adoption of this ordinance.
SECTION 8: If any provision of this ordinance or its application to any person or circumstance is held to be invalid, such invalidity has no effect on the other provisions or applications of the ordinance that can be given effect without the invalid provision or application, and to this extent, the provisions of this resolution are severable. The City Council declares that it would have adopted this resolution irrespective of the invalidity of any portion thereof.
SECTION 9: The documents and materials that constitute the record of proceedings on which this Ordinance and the above findings have been based are located in the City Clerk’s Department, 7800 Katella Avenue, Stanton, California. The City Clerk is the custodian of records.
PASSED, APPROVED, AND ADOPTED this 24th day of November, 2023.
DAVID J. SHAWVER, MAYOR
ATTEST:
PATRICIA A. VAZQUEZ, CITY CLERK
APPROVED AS TO FORM:
HONGDAO NGUYEN, CITY ATTORNEY
ORDINANCE NO. 1135
PAGE 9 OF 9
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.
CITY OF STANTON )
I, Patricia A. Vazquez, City Clerk of the City of Stanton, California, do hereby certify that the foregoing Ordinance No. 1135 was introduced at a regular meeting of the City Council of the City of Stanton, California, held on the 14th day of November, 2023 and was duly adopted at a regular meeting of the City Council held on the 28th day of November, 2023, by the following roll-call vote, to wit:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
ABSTAIN: COUNCILMEMBERS:
PATRICIA A. VAZQUEZ, CITY CLERK
1 CITY OF STANTON
REPORT TO THE CITY COUNCIL
TO: Honorable Mayor and Members of the City Council
DATE: November 28, 2023
SUBJECT: BROADCASTING CITY COUNCIL MEETINGS
REPORT IN BRIEF:
At its meeting of October 11, 2022, City Council directed staff to proceed with a 12- month pilot program to live stream City Council meetings on the Zoom virtual meeting platform and to report back to the City Council at the end of the pilot program with participation data.
RECOMMENDED ACTION:
1. City Council find that this item is not subject to California Environmental Quality Act (“CEQA”) pursuant to Sections 15378(b)(5)(Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment); and
2. Provide input/direction to staff on the continuation of televising/broadcasting City Council meetings.
BACKGROUND:
Since the City Council meeting of June 23, 2020, the City has created audio recordings of City Council meetings. Once the audio recording for a meeting is finalized, it is posted to the City’s website. The City continues to create and post audio recordings of City Council meetings to the City’s website and as of December 13, 2022, the City began to create and maintain Zoom video recordings of City Council meetings, which are also posted to the City’s website once finalized. The rebroadcasted Zoom videos are also posted and made available via the City's YouTube Channel.
ANALYSIS AND JUSTIFICATION:
As the end of the 12-month pilot program nears, staff has gathered for City Council review, participation data retrieved through YouTube analytics, as well as City accumulated statistical data for the time period of December 14, 2022, through November 1, 2023.
Item: 11B
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2 Analytics and Metrics
In monitoring the interactions, key metrics, and reports of the City’s posted City Council meeting videos, staff has been able to gauge the consumption of posted videos, along with live streaming participation data. As of November 1, 2023, there has been a total of 23 City Council meeting videos posted to the City’s YouTube channel.
Per YouTube analytics the following definitions are being provided to assist the City Council in understanding the interaction of the public’s consumption of the City’s posted City Council meeting videos during the 12-month pilot program:
• Views: The number of unique views on posted content.
The total number of recorded views, excluding 58 views, due to the verification of content upload views by the Office of the City Clerk, came to a total of 577 unique participant views. This is an average of 25 views per video. • Average view duration: The total watch time of a video divided by the total number of video plays, including replays. This metric measures a video’s ability to engage viewers. If a video is not determined to be engaging, viewers will bounce from the video quickly.
The average view duration of uploaded City Council rebroadcasted Zoom videos was reported as 2.68 minutes.
• Watch time: The total amount of minutes viewers have spent watching a video.
The total amount of minutes participants spent watching uploaded City Council rebroadcasted Zoom videos was reported as 29.95 hours. This is an average of 1.3 hours per video.
• Subscriber: People or accounts that are subscribed to a channel.
The City of Stanton YouTube channel has a total of 53 subscribers and of the reported total subscribers, two subscribers each watched one video. Both views from each of the two subscribers were viewed in the month of January 2023. The remaining views were by non-subscribers of the City’s YouTube channel.
The City’s accumulated statistical data during “in real time” live streaming of City Council meetings during the 12-month pilot program provides data on the following statistics:
• Form of Participation: The mode in which a participant joins an active live stream.
The City’s type of subscription on the Zoom meeting platform provides two types of observation methods to join a live stream, participants were able to join either via Zoom weblink or telephone (call in). The combined total number of participants who 3 connected to the City’s live stream via weblink and telephone came to a total of 67 watchers/listeners. This is an average of 2.9 participants per meeting. • Watch/Call-In Time: Time spent watching the live stream/listening to the live stream.
Information was gathered to monitor both the arrival and departure times of each individual participant within the live stream. The average duration of a participant remaining within the live stream is reported as 1.6 hours. The total number of minutes participants have watched/listened to the live stream is reported as 77.82 hours.
• Special Events/Items: Agendized items such as interviews and appointments of commissioners/committee members, award ceremonies, and budget workshops, for City Council discussion and consideration.
• Participant Information: Members of the public, representatives from special districts/offices, members of the press, and commissioners/committee members.
This section also includes the total number of verifications of content upload views by the Office of the City Clerk.
Zoom Bombings and Raidings and Security
Recently, many cities throughout California have experienced the return of “Zoom bombings” or “Zoom raidings”, which is when a participant disrupts an online Zoom meeting with visual, video or audio content during a City Council live stream meeting.
To date approximately 60 cities have reported experiencing a form of “Zoom bombing”.
Due to these incidents, 35 of the impacted cities have reported that they have either discontinued Zoom public comments, are considering removal of Zoom public comments, and/or discontinued use of Zoom as a meeting option and are only allowing in-person or written public comments.
The City, during its implementation of the use of the Zoom meeting platform during the pandemic as well as for the 12-month pilot program, has not allowed the option for the public to provide public comment virtually via Zoom, outside of any approved requests submitted to the City Council requesting that the Mayor or a Council Member be allowed to virtually participate at a City Council meeting pursuant to Assembly Bill (AB) 2449.
Members of the public have the option to provide public comment in-person, via written communication, and/or via e-mail correspondence.
The City has been proactive in safeguarding its live streaming of meetings by utilizing Zoom’s security features, including:
• Hide profile photos
• Restrict screen sharing
• Restrict chat functionality
4 • Restrict renaming to meeting organizer
• Restrict unmuting to meeting organizer
• Restrict starting video to meeting organizer
• Remove participant(s)
• Suspend participant activities if needed
However, even with the provided security features the City’s live streaming of meetings is still open to exposure of being “Zoom bombed” as other live streaming cities have experienced.
FISCAL IMPACT:
There is no fiscal impact associated with the recommended actions.
ENVIRONMENTAL IMPACT:
In accordance with the requirements of the California Environmental Quality Act (CEQA), this item is not subject to CEQA pursuant to Sections 15378(b)(5)(Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment).
PUBLIC NOTIFICATION:
Public notification provided through the regular agenda process.
LEGAL REVIEW:
None.
STRATEGIC PLAN OBJECTIVE ADDRESSED:
Obj. No. 6: Maintain and promote a responsive, high quality and transparent government.
Prepared by: Patricia A. Vazquez, City Clerk
Approved by: Hannah Shin-Heydorn, City Manager
Attachment(s):
A. YouTube Analytics
B. City Accumulated Statistical Data
Content Video title Views Watch time (hours) Subscribers Average view duration Total 635 29.9537 2 0:02:68
2022-12-13 City Council Meeting 34 1.3519 0 0:02:23
2023-01-10 City Council Meeting 43 2.3344 1 0:03:15
2023-01-24 City Council Meeting 41 1.2536 1 0:01:50
2023-02-14 City Council Meeting 24 0.4471 0 0:01:07
2023-02-28 City Council Meeting 44 3.1981 0 0:04:21
2023-03-07 City Council Meeting (Special) 32 0.9586 0 0:01:47 2023-03-14 City Council Meeting 33 0.5223 0 0:00:56
2023-03-28 City Council Meeting 19 1.8273 0 0:05:46
2023-04-11 City Council Meeting 16 2.3472 0 0:08:48
2023-04-25 City Council Meeting 18 0.7143 0 0:02:22
2023-05-09 City Council Meeting 22 2.0841 0 0:05:41
2023-05-16 City Council Meeting 15 0.2978 0 0:01:11
2023-05-23 City Council Meeting 18 0.5843 0 0:01:56
2023-06-13 City Council Meeting 16 0.5035 0 0:01:53
2023-06-27 City Council Meeting 43 1.6586 0 0:02:18
2023-07-11 City Council Meeting 35 1.0839 0 0:01:51
2023-08-08 City Council Meeting 30 1.5294 0 0:03:03
2023-08-22 City Council Meeting 27 1.8019 0 0:04:00
2023-08-30 City Council Meeting (Special) 8 0.0576 0 0:00:25 2023-09-12 City Council Meeting 31 1.0977 0 0:02:07
2023-09-26 City Council Meeting 40 2.2157 0 0:03:19
2023-10-10 City Council Meeting 26 0.9398 0 0:02:10
2023-10-24 City Council Meeting 20 1.1447 0 0:03:26
YouTube
Analytics
Attachment: A
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CITY OF STANTON
City Council Meeting - Zoom Attendance Tracking Form
CALENDAR YEAR 2023
MEETING DATE ZOOM WEBLINK PHONE START END SPECIAL ITEMS / EVENT? YOUTUBE VIEWS NOTES December 13 1 None DM: 6:30 PM DM: 7:36 PM
Citizen's Academy, swearing in of
newly appointed Mayor/Council
Members, Reorganization, and
recognition of outgoing Council
Member Rigoberto A. Ramirez.
8 as of 01/10/2023 DM: Resident
YouTube: 3 Views by City Clerk to verify upload.
January 10 2 None DM: 6:30 PM
CLC: 6:30 PM
DM: 7:13 PM
CLC: 7:13 PM
Mayor's Appointments to various
agencies. 18 as of 01/24/2023
DM: Resident
CLC: Office of Congressman Lou Correa, Maggie Moreno
YouTube: 2 Views by City Clerk to verify upload.
January 24 4 1
DM: 6:30 PM
CLC: 6:30 PM
CM: 7:00 PM
OP: 6:58 PM
YH: 7:03 PM
Phn: 7:10 PM
DM: 8:43 PM
CLC: 7:10 PM
CM: 7:32 PM
OP: 8:43 PM
YH: 7:32 PM
Phn: 8:43 PM
None 38 as of 02/28/2023
DM: Resident
CLC: Office of Congressman Lou Correa, Maggie Moreno
CM
OP: Otniel Pavia, Citizens Academy Grad 2021
YH: Yesenia Hernandez, CAPOC
Caller, Unknown
YouTube: 3 Views by City Clerk to verify upload.
February 14 4 None
CLC: 6:30 PM
HE: 6:30 PM
R: 6:30 PM
B: 7:33 PM
CLC: 7:00 PM
HE: 6:43 PM
R: 7:38 PM
B: 7:35 PM
None 23 as of 02/28/2023
CLC: Office of Congressman Lou Correa, Maggie Moreno
HE: Hosan Elattar, Voice of OC
R: Reina
B: Brent
YouTube: 3 Views by City Clerk to verify upload.
February 28 1 None DM: 6:30 PM DM: 7:52 PM None 42 as of 03/14/2023 DM: Resident YouTube: 3 Views by City Clerk to verify upload.
March 7
(Special) 3 None
DM: 6:03 PM
CLC: 6:03 PM
JR: 6:03 PM
DM: 8:40 PM
CLC: 8:40 PM
JR: 8:40 PM
Interviews & Appointments of vacant
seats for Commissions & Committee. 29 as of 03/14/2023
DM: Resident
CLC: Office of Congressman Lou Correa, Maggie Moreno
JR: Consultant / Non-Profit (Lions Club)
YouTube: 3 Views by City Clerk to verify upload.
March 14 2 None DM: 6:30 PM
CLC: 6:30 PM
DM: 7:08 PM
CLC: 7:08 PM Women of Distinction Awards 2023 27 as of 04/05/2023 DM: Resident
CLC: Office of Congressman Lou Correa, Maggie Moreno
YouTube: 4 Views by City Clerk to verify upload.
March 28 6 1
DM: 6:30 PM
CLC: 6:30 PM
PH: 6:30 PM
OP: 6:30 PM
BP: 6:37 PM
HE: 6:38 PM
Phn: 6:30 PM
DM: 7:48 PM
CLC: 8:41 PM
PH: 7:03 PM
OP: 8:25 PM
BP: 8:41 PM
HE: 6:58 PM
Phn: 8:41 PM
None 14 as of 04/12/2023
DM: Resident
CLC: Office of Congressman Lou Correa, Maggie Moreno
PH
OP: Otniel Pavia, P&R Commissioner
BP: Brandon Pho, Voice of OC
HE: Hosan Elattar, Voice of OC
Caller, Unknown
YouTube: 2 Views by City Clerk to verify upload.
April 11 3 None
DM: 6:30 PM
CLC: 6:30 PM
JK: 6:51 PM
DM: 7:54 PM
CLC: 7:54 PM
JK: 7:54 PM
None 12 as of 04/26/2023
DM: Resident
CLC: Office of Congressman Lou Correa, Maggie Moreno
JK
YouTube: 2 Views by City Clerk to verify upload.
April 25 4 None
DM: 6:30 PM
UAN: 5:30 PM
HP: 6:32 PM
JB: 6:38 PM
DM: 8:21 PM
UAN: 8:21 PM
HP: 8:21 PM
JB: 7:35 PM
Interviews & Appointment to vacant
seat for Public Safety Committee. 13 as of 05/09/2023
DM: Resident
UAN: Ugochi Anaebere-Nicholson, Public Law Center
HP: Hannah Poploskie, Public Law Center
JB
YouTube: 2 Views by City Clerk to verify upload.
May 9 None None None None None 18 as of 05/22/2023 YouTube: 2 Views by City Clerk to verify upload.
Attachment: B
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May 16
(Special / Workshop)
5 None
A: 5:00 PM
IA: 5:10 PM
AM: 5:10 PM
G: 5:11 PM
OP: 5:46 PM
A: 5:30 PM
IA: 5:28 PM
AM: 5:30 PM
G: 5:59 PM
OP: 7:06 PM
Budget Workshop 8 as of 05/22/2023
A: Adelina
IA: City Staff
AM: City Staff
G: Gen
OP: Otniel Pavia, P&R Commissioner
YouTube: 3 Views by City Clerk to verify upload.
May 231 None DM: 6:30 PM DM: 7:38 PM None 15 as of 06/27/2023 DM: Resident YouTube: 3 Views by City Clerk to verify upload.
June 131
1 DM: 6:30 PM
Phn: 6:30 PM
DM: 8:43 PM
Phn: 7:27 PM
Fireworks Special Presentation by the
OCSD. 9 as of 06/27/2023
DM: Resident
Caller, Unknown
YouTube: 3 Views by City Clerk to verify upload.
June 273 None
DM: 6:30 PM
SG: 6:30 PM
JG: 6:40 PM
DM: 8:21 PM
SG: 8:58 PM
JG: 8:58 PM
None 37 as of 07/11/2023
DM: Resident
SG: Salgueroc
JG: Jesus G (D4)
YouTube: 2 Views by City Clerk to verify upload.
July 112 None DM: 6:30 PM
CS: 6:57 PM
DM: 6:59 PM
CS: 6:59 PM None 35 as of 08/08/2023
DM: Resident
CS: Comp Score
YouTube: 2 Views by City Clerk to verify upload.
July 25 DARK DARK DARK DARK DARK DARK DARK - Summer Recess August 83 None
DM: 6:30 PM
HE: 6:30 PM
RP: 6:30 PM
DM: 7:56 PM
HE: 7:16 PM
RP: 7:40 PM
None 26 as of 08/23/2023
DK: Resident
HE: Hosam Elattar, Voice of OC
RP
YouTube: 2 Views by City Clerk to verify upload.
August 226
1 DM: 6:30 PM
HE: 6:15 PM
JW: 6:27 PM
WY: 6:35 PM
AM: 6:41 PM
Phn: 6:30 PM
AB: 7:26 PM
DM: 8:27 PM
HE: 8:05 PM
JW: 8:27 PM
WY: 7:00 PM
AM: 7:18 PM
Phn: 7:26 PM
AB: 8:27 PM
Implementation of Term Limits for the
Position of Mayor and FUSUS/OCSD
Pilot Program.
24 as of 09/13/2023
DM: Resident
HE: Hosan Elattar, Voice of OC
JW: John Warren, P&R Commissioner
WY
AM: Anne M.
Phone: Unknown - Iphone
AB
YouTube: 3 Views by City Clerk to verify upload.
August 30
(Special) None None None None Closed Session. None None YouTube: 1 View by City Clerk to verify upload.
September 122
1 DM: 6:30 PM
JM: 6:27 PM
Phn: 5:30 PM
DM: 8:13 PM
JM: 8:13 PM
Phn: 5:34 PM
CR&R Franchise Agreement & Prop.
218 Increase in Service Charges. 27 as of 09/26/2023
DM: Resident
JM: Jamilyn Moreau, Voice of OC / OC Tribune
Phone: Unknown
YouTube: 2 View by City Clerk to verify upload.
September 264 None
DM: 6:30 PM
JM: 6:30 PM
SV: 6:30 PM
VB: 6:38 PM
DM: 8:25 PM
JM: 8:25 PM
SV: 8:25 PM
VB: 7:20 PM
Implementation of Term Limits for the
Position of Mayor and Extending Term
Limits for the Postion of Council
Member.
27 as of 10/10/2023
DM: Resident
JM: Jamilyn Moreau, Voice of OC / OC Tribune
SV: Sandra Verdugo, Public Safety Committee Member
VB: Unknown
YouTube: 3 Views by City Clerk to verify upload.
October 103 None
DM: 6:30 PM
JM: 5:58 PM
JG: 6:31 PM
JG: 6:54 PM
DM: 8:33 PM
JM: 8:33 PM
JG: 6:42 PM
JG: 8:33 PM
None 23 as of 10/24/2023
DM: Resident
JM: Jamilyn Moreau, Voice of OC / OC Tribune
JG: Jesus G (D4)
YouTube: 3 Views by City Clerk to verify upload.
October 242 None DM: 6:30 PM
JM: 5:58 PM
DM: 7:23 PM
JM: 7:23 PM None 20 as of 11/01/2023
DM: Resident
JM: Jamilyn Moreau, Voice of OC / OC Tribune
YouTube: 2 Views by City Clerk to verify upload.
1 CITY OF STANTON
REPORT TO CITY COUNCIL
TO: Honorable Mayor and Members of the City Council
DATE: November 28, 2023
SUBJECT: CITY COUNCIL RECOGNITION AND PROCEDURES POLICY FOR THE
PRESENTATION OF CITY PROCLAMATIONS AND RECOGNITION
AWARDS
REPORT IN BRIEF:
Staff requests that the City Council review and consider the proposed policy and procedures for the presentation of City proclamations, certificates, and recognition awards. The purpose of this proposed policy is to formalize guidelines governing the presentation of proclamations, commendations, awards and other recognition documents or items by the City Council.
RECOMMENDED ACTION:
1. City Council find that this item is not subject to California Environmental Quality Act (“CEQA”) pursuant to Sections 15378(b)(5) (Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment); and
2. Provide input/direction on the proposed recognition and procedures policy; and
3. Consider approval of Administrative Policy II-2-7, “Presentation of City Proclamations, Certificates, and Recognition Awards Procedures,” as proposed, and allow the City Manager to update Administrative Policy II-2-7 as needed for clarifying purposes.
BACKGROUND:
The City receives several requests per month for ceremonial items such as certificates, proclamations, commendations, etc. The City’s current practice is that upon receipt of a request for a ceremonial item, it is submitted for review to the City Clerk to determine applicability and consistency with the City’s current issuance practice, if it is consistent (the City has issued a similar proclamation/recognition/certificate in the immediate past) the requesting organization/party is notified of the approval and the request is processed.
If the City Clerk determines that the request is not consistent (no historical precedent/ the City has not issued a similar proclamation/recognition/certificate in the immediate past) it is then provided to both the Mayor and Mayor Pro Tem for review and consideration and Item: 12A
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2 upon either approval or denial the requesting organization/party is notified of the City’s decision.
Additionally, and historically, the Mayor has been afforded the opportunity to unilaterally issue/authorize approval of ceremonial items independent of the City Clerk review practices.
ANALYSIS AND JUSTIFICATION:
City Council policies are developed for the purpose of establishing standard practices and procedures for the City Council, City Commissions/Committees, and City staff to follow and to promote transparency to all stakeholders, including the citizenry. The City’s proposed recognition policy has been developed to honor individuals, groups, and staff who have made or have demonstrated significant contributions to the community, along with multiple forms of recognition to ensure that the proper level of recognition will be granted to designated people, organizations or events.
Staff has researched a variety of model policies. It is desirable at this time to clarify and define a policy on this subject. The proposed policy provides guidance to staff on the processing of requests, sets eligible and ineligible subjects and topics, and requires that the City Council concur on the issuance of proclamations and recognitions. Should the City Council move forward with approval of the proposed policy, staff will review (and update, as appropriate) the policy every few years to ensure that it continues to reflect the City’s goals, priorities, and operating environment.
City Administrative Policy – Presentation of City Proclamations, Certificates, and Recognition Awards Procedures
The recognition and procedures policy is presented for City Council review and discussion (Attachment A).
FISCAL IMPACT:
There is no fiscal impact associated with the recommended actions.
ENVIRONMENTAL IMPACT:
None, this item is an administrative activity not subject to the California Environmental Quality Act (“CEQA”) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378(b)(5) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly). 3 LEGAL REVIEW:
None.
STRATEGIC PLAN OBJECTIVE(S):
Obj. No. 6: Maintain and promote a responsive, high-quality, and transparent government.
PUBLIC NOTIFICATION:
Public notice for this item was made through the regular agenda process.
Prepared by: Patricia A. Vazquez, City Clerk
Approved by: Hannah Shin-Heydorn, City Manager
Attachment(s):
A. Proposed Administrative Policy II-2-7, “Presentation of City Proclamations, Certificates, and Recognition Awards Procedures”
CITY OF STANTON
ADMINISTRATIVE POLICY
Number
II-2-7
Date
November 28, 2023
SUBJECT:
Presentation of City Proclamations, Certificates, and
Recognition Awards Procedures
Authority
City Council
Administrator
City Manager’s Office
PURPOSE:
To establish consistent criteria and procedures for official City Council recognition of individuals, groups and/or events of significance that directly impact and benefit the City of Stanton and its residents by issuance of certificates of recognition and proclamations.
POLICY:
It is the policy of the City of Stanton to recognize noteworthy contributions and achievements of individuals and organizations through accommodation, proclamation, certificate, City tile or other recognition designation in accordance with the criteria contained in this policy (Exhibit "A"). This policy discourages the City of Stanton from supporting, promoting or otherwise making endorsements for any religious purposes or partisan purposes.
Certificates of Recognition and Proclamations are not statements of policy or individual viewpoints, support, or affiliation. Recognition is from the City Council as a body, and not from an individual member.
Requests may be initiated by the Mayor or a Council Member, community member, or organization and are submitted to the City Clerk. Requests by members of the public must be in writing, addressed to the Office of the City Clerk. Only proclamations dealing with local, county, state issues or those that positively impact the Stanton community and convey an affirmative message to Stanton residents will be considered and are issued in the City's sole and absolute discretion.
If a request for recognition is consistent with any of the requested categories described in Exhibit "A", the City Clerk will issue such recognition or proclamation.
If a request for a Certificate of Recognition is not clearly consistent with any of the request categories described in Exhibit "A," the City Clerk shall calendar an item for City Council consideration at the next available City Council meeting.
No Certificate of Recognition or Proclamation shall be issued in any language other than English, with the exception of a foreign language recognizing any national heritage month or day.
Attachment: A
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TIMING OF REQUESTS:
Requests for recognition must be received by the Office of the City Clerk no later than fourteen (14) days from the scheduled event/recognition date. If a request for recognition is not clearly consistent with any of the request categories in Exhibit “A”, the request may be fulfilled after the desired date depending upon Council direction.
PRESENTATION OF CERTIFICATES OR PROCLAMATIONS:
Certificates or proclamations may be presented in a jacket or frame. Unless a frame is specified by this policy or requested by the Mayor or Council Member, the certificate or proclamation will be presented in a jacket. Mailed certificates or proclamations will be provided in jackets.
Approved certificates or proclamations may be presented at City Council meetings under "Special Presentations" upon the request of the Mayor or Council Member or presented at a business or community event.
EXHIBIT “A”
Guidelines for Recognition Requests
Types of Recognition Awards
Certificates of Recognition: Certificates are used to recognize achievement, express appreciation, or acknowledge service.
Proclamation: Proclamations are issued in recognition of an event, i.e., Veteran Appreciation Month, Fire Prevention Week, or in recognition of an individual for substantial contributions such as lifetime service to the community. Proclamations are not statements of policy but a manner in which the City can make special recognition of an individual or an event.
City Lapel Pin: City lapel pins depict the City logo and may be presented in addition to or in lieu of a certificate or proclamation.
Request Categories:
Any issued certificate or proclamation must be significant to the Stanton community.
Recognition requests that are on the preapproved list may be generated upon request.
The Mayor may approve a Certificate of Recognition on a caseby-case basis if it is not identified on the preapproved list. All Proclamations must be listed on the City Council agenda under the Consent Calendar for approval.
Personal Accomplishments:
Athletic/Academic Accomplishments: Recognition of athletic/academic accomplishment may be given when an individual or team reaches a significant level of competition on a county, regional, state or national level. Recognition should occur when the individual or team has completed the highest level of competition.
Acts of Heroism: Commendations may be given to residents of Stanton who perform heroic acts and to nonresidents who perform acts of heroism to save the life or property of a City resident.
Girl Scout and Boy Scout Accomplishments: A certificate of recognition may be prepared to recognize Stanton residents who achieve the rank of Eagle Scout in the Boy Scouts or the Gold or Silver Award in the Girl Scouts. 100th Birthday of a Stanton resident: A Certificate of Recognition is prepared on occasion for Stanton residents who have achieved their 100th birthday.
Employee Retirements: Proclamations may be issued to employees with 20+ years of service at the time of their retirement. Certificates may be issued to employees retiring with less than 20 years of service.
Employee Recognition: Certificates of Recognition are issued for notable employee accomplishments such as achieving awards, reaching professional milestones, or other accomplishments that are above and beyond their daily duties.
Volunteer Recognition: Certificates of Recognition are issued to individuals who continuously demonstrate notable accomplishments and whose volunteer efforts and/or philanthropic works have directly benefitted the Stanton community and/or Stanton residents.
Stanton Business Recognition Events: Certificates of recognition are presented for Stanton business events, i.e., grand opening events, ribbon cutting events.
Significant Events:
Community Events: Certificates are prepared to be presented at a community event.
Anniversaries of Businesses & Churches: Local businesses and churches celebrating anniversaries (5, 10, 15, 20 years, etc.) shall receive a Certificate of Recognition. Nonlocal businesses and churches celebrating anniversaries shall receive a Certificate of Recognition at Council's direction.
Meetings in Memoriam: A meeting may be dedicated to the memory and/or honor of an individual whose contributions and achievements have community-wide significance, at the time of adjournment by the Mayor. Meetings adjourned in memoriam are at the discretion of the Mayor or a Council Member. A Certificate of Adjournment will be prepared by the City Clerk and mailed to the family surviving the deceased community member.
Regional Events, i.e., Fire Recognition Week, Veteran Appreciation Month: Events of significance to the region, state or nation may be recognized by proclamation, approved on the Consent Calendar portion of the City Council agenda.
Ethnic Celebrations & Religious Observances: Certificates of recognition shall be prepared for events within the community at the request of the Mayor or a Council Member.
Public Officials:
Outgoing Commissioners and Committee Members: Upon leaving office, commissioners and committee members shall receive a certificate of recognition. In the case of an automatic resignation because of excessive or unexcused absences, no certificates are given.
Outgoing City Elected Officials: Outgoing elected officials will receive a commendation commemorating their service to the City. This commendation shall be presented at their final Council meeting.
Sponsorships:
Recognition of Individual or Non-Profit Organizations' Contribution: In recognition of the significant achievement or contribution of a non-profit organization or individual, a Certificate of Recognition shall be presented at a City Council Meeting.
Recognition of Corporate Support: Corporations that have made significant contributions to the City, celebrating anniversaries (5, 10, 15, 20 years, etc.) or corporate citizens shall receive a Certificate of Recognition at a City Council meeting.
City Council Initiated
Items 15D – 15E – 15F
15D: “DISCUSSION REGARDING CAMPAIGN CONTRIBUTIONS AND
LEVINE ACT (AB 1439)”
15E:
“DISCUSSION REGARDING CREATION OF A RESOLUTION IN
SUPPORT OF THE PALESTINIAN PEOPLE OF GAZA”
15F:
“DISCUSSION REGARDING BUSINESS LICENSE COMPLIANCE”
(These items do not contain a staff report)
Items: 15D - 15E - 15F
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