Local Agency Formation Commission

                                                 Regular Meeting Agenda


Wednesday, April 10, 2002

9:00 a.m.


Board of Supervisors Hearing Room, Room 381B

Kenneth Hahn Hall of Administration

500 West Temple Street, Los Angeles 90012



1.                  CALL MEETING TO ORDER




3.                  CONSENT CALENDAR


a.         Annexation No. 686 to County Sanitation District No. 21 – 4.885 acres located on Alamosa Drive, west of Padua Avenue, in the City of Claremont. The landowners are Tamara Gross, Doug Frazier, Barbara Lakin, and Debbie and Doug Granna.


4.         SPECIAL ITEMS


a.         Hacienda Heights Incorporation Update.  (This item was continued from the meeting of March 27, 2002).


b.         Approval of LAFCO February and March 2002 Operating Account Check Registrar, Money Market Account Register and Special Reorganization Check Register.


c.         Special Reorganization Update.

I.          Consideration of additional Hollywood Boundary Adjustments.

II.         State Controller’s Review of San Fernando Valley and Harbor Area              Comprehensive Fiscal Analysis.

III.       Report on San Fernando Valley revenue neutrality negotiation sessions.



            a.         Minutes for the March 27, 2002 Regular Commission Meeting.




            This is the opportunity for members of the public to address the Commission on items that are not on the posted agenda, provided that the subject matter is within the jurisdiction of the Commission.  Speakers are reminded of the three-minute time limitation.


7.         NEW BUSINESS


            This is the opportunity for commissioners to discuss matters not on the Posted Agenda (To be Discussed and upon Commission approval placed on the Agenda for Action at a Future Meeting).




            The following items will be scheduled for the April 24, 2002 Commission meeting:

a.       Protest proceedings on the detachment of the City of Bell Gardens from Belvedere Garbage Disposal District.

b.      Amendment to the Sphere of Influence for County Sanitation District No. 32, and related annexation.

c.       County Sanitation District Annexations.

d.      Consideration of Fiscal Year 2002-03 Proposed Budget.





APRIL 10, 2002







Agenda Item No. 1 is an uninhabited annexation to County Sanitation District No. 21, involving 100% landowner consent.


Annexation No. 686 involves approximately 4.885 acres of territory located on Alamosa Drive, approximately 1,000 feet west of Padua Avenue, in the City of Claremont.  The landowners are Tamara Gross, Doug Frazier, Barbara Lakin, and Debbie and Doug Granna.


The subject territory is vacant and will be developed as four single-family homes.  Surrounding land use consists of residential. 


County Sanitation Districts has determined that the project is exempt from the provisions of CEQA.




Based on the information provided by the property owner, County Sanitation Districts has determined that its sewerage facilities have or, in accordance with current policy, will have adequate capacity to collect, treat, and dispose of the wastewater anticipated to be generated as a result of the proposed annexation.




1.                  Acting in its role as a responsible agency, with respect to the proposed annexation and under State CEQA Guidelines Section 15096, LAFCO certifies that it has independently considered and reached its own conclusions regarding the environmental effects of the project and the notice of exemption certified by the County Sanitation Districts of Los Angeles County (LACSD) and has determined that the document adequately addresses the environmental impacts of the project.  LAFCO finds that it has complied with the requirements of CEQA with respect to the process for a responsible agency, and hereby adopts by reference the Notice of Exemption previously prepared by the LACSD in connection with the certification of that document for the project.


2.                  Adopt resolution making determinations and approving Annexation No. 686 to County Sanitation District No. 21.


3.                  Pursuant to Government Code Section 56844(b), order that the annexation shall be subject to the following term and condition:


The property so annexed shall be subject to the payment of such service charges, assessments or taxes as the County Sanitation Districts may impose.


4.                  Set May 8, 2002 as the date for adoption of the resolution ordering the annexation.






Staff Report – April 10, 2002



Discussions were held by the commission at its regularly scheduled meeting on March 27, 2002 regarding the status of the Hacienda Heights application for incorporation.  In accordance with those discussions, staff has taken the following steps to complete the Hacienda Heights incorporation process:


1.         Legal counsel has prepared a letter agreement to be executed by the Hacienda Heights applicants, Ms. Barbara Fish and Ms. Felicia Minardi, which provides their personal guarantee to immediately provide a minimum deposit of $10,000 and further guarantee an additional amount of $10,000, for a total of $20,000, for LAFCO to have prepared a final Comprehensive Fiscal Analysis (CFA).  It is understood that the guarantors will not be responsible for more than the total amount of $20,000 and will be reimbursed for amounts not expended.


2.                  A contract has been prepared for LAFCO to retain the services of the Rosenow, Spevacek Group, Inc. to prepare a final CFA for the Hacienda Heights incorporation proposal.  The consultant would prepare the final CFA based upon the preliminary CFA that has already been prepared.  The final CFA would include an update of the data contained in the preliminary CFA to reflect the latest fiscal year data (fiscal year 2000-2001). The consultant will conduct a coordination meeting with the applicants to discuss their issues with the preliminary CFA and to determine other sources of revenue that may not have been considered in the preliminary CFA. The consultant will also be required to conduct a limited number of meetings with the applicants so that applicants can provide comments on the CFA.


3.                  Staff will coordinate with the consultant in an effort to obtain updated information from the various entities that provided data for the original CFA evaluation. 


It is important to note that the election on the incorporation proposal, if approved by the commission, would likely take place in the 2003 primary election.  Assuming that the updated data for fiscal year 2001-2002 is available in the September/October, 2002 timeframe, the commission will need to take action before the release of that data to avoid having to update the fiscal year data once again.  If it is determined that the commission cannot act before the new data is available, the commission may want to consider waiting until the fiscal year 2001-2002 data is available to have the consultant prepare the final CFA.  This would avoid having to update the final CFA twice.

Staff and the consultant estimate that it will take the following amount of time to complete the CFA and for the commission to make its final determinations:


1.                  Request and gather new fiscal year data                                                            60 Days

2.                  Review new data, analyze, prepare and meet with applicant                               30 Days

3.                  Finalize CFA                                                                                                    30 Days

4.                  Allow applicant time to negotiate with County                                        30 Days

5.                   Hold LAFCO hearing and finalize process                                                         60 Days


Staff and the consultant believe that the commission will be able to make its determinations prior to the release of the fiscal year 2001-2002 data, and therefore, staff recommends that the commission direct staff to move forward with preparation of the final CFA in accordance with the above schedule with the goal of having the commission make its determinations prior to September/October, 2002.




1.                  Authorize the Executive Officer to enter into a letter of agreement with the applicants to                   secure funding of $20,000 as required for preparation of the final CFA.


2.         Authorize the Executive Officer to enter into the attached contract with the Rosenow, Spevacek Group, Inc. for preparation of a final CFA for the Hacienda Heights incorporation proposal for an amount not to exceed $20,000.


3.         Approve staff’s recommended schedule for completion of the final CFA for the Hacienda Heights incorporation proposal.   






            THIS AGREEMENT is made and entered into this            day of                     , 2002,



                            AND            Rosenow Spevacek Group, Inc.

                                                540 North Golden Circle, Suite 305

                                                Santa Ana, CA   92705





            WHEREAS, LAFCO requires specialized technical assistance related to the preparation of final Comprehensive Fiscal Analysis ("CFA") for the proposed incorporation of the Hacienda Heights area of the County of Los Angeles, as more fully set forth in the Scope of Work attached hereto as Exhibit "A";

            WHEREAS, Consultant has the ability to render these specialized services;

            WHEREAS, in rendering these specialized services, Consultant shall devote its time and effort to providing such assistance to LAFCO and, at a minimum, shall exercise the ordinary care and skill expected of the average practitioner in Consultant’s capacity acting under similar circumstances; and

            WHEREAS, LAFCO in accordance with Government Code section 56375(k) may enter into contracts for professional or consulting services to carry out and effect its functions.



            NOW, THEREFORE, the parties hereto do mutually agree as follows:

            1.         Specialized Services.  The Consultant shall provide specialized services described in Exhibit "A" related to preparation of the CFA.  By this reference, Exhibit "A" is incorporated into this Agreement as though fully set forth herein.  In general, this work involves establishment of the base year costs and revenues, calculation of base property tax allocation, calculation of revenue neutrality impacts, determination of a transition period budget, preparation of eight year budget projections, determination of an appropriations limit, preparation of a draft and final CFA, preparation of an executive summary of the CFA, and participation in meetings and hearings related to the incorporation process.  Such services will be provided at the direction of the Executive Officer of LAFCO (“Executive Officer”) or his designee.  LAFCO may authorize additional or extra services be performed by Consultant pursuant to this Agreement upon the terms and conditions set forth herein.

            2.         Compensation.  The total amount payable by LAFCO hereunder shall not exceed the sum of $20,000 for the work set forth in Exhibit "A".

            A.        Consultant’s Fees.  In consideration of the performance by the Consultant in a manner satisfactory to LAFCO of the work set forth in Exhibit "A", and any other additional or extra services authorized by LAFCO, LAFCO agrees to pay the Consultant a fee of $100.00 per hour during the term of this Agreement.

            B.         Expenses.  Except as specified in this Section, Consultant shall, at its own expense, provide all labor, equipment, maintenance, material, supplies, postage, licenses, registration, data systems, transportation, meals, lodging, telephone expenses, cellular phone expenses, photocopying services, facsimile transmission services and other items required for performance of the Agreement.  LAFCO shall reimburse the actual cost to the Consultant of the following items when incurred in the performance of the Agreement:

C           printing and photocopying for distribution to persons other than parties to the Agreement or their employees;

C           reproduction and enlargement of large-format graphics; and

C           transportation to meetings outside of Los Angeles County.

Consultant shall also be compensated for special and extraordinary goods and services approved in advance by the Executive Officer.  Any expenses in excess of $500.00 for any single item or $1,000.00 in any single month must be approved in advance by the Executive Officer. 

            C.        Sub-Consultants.  If the Consultant requires the expertise of sub-consultants to fulfill its responsibilities, the Consultant shall notify the Executive Officer.  The Consultant shall not contract with any sub-consultant without the prior written approval of the Executive Officer.

            D.        Invoices.  Consultant shall submit an itemized monthly invoice accompanied by a report of work performed for the invoice period and all appropriate receipts.  This report shall be prepared in a format satisfactory to the Executive Officer.  Consultant shall submit invoices pursuant to Section 16, below.  The Executive Officer shall approve or disapprove invoices within fifteen (15) days of receipt.  Consultant shall be paid within fifteen (15) days of the Executive Officer’s approval of each invoice.

            3.         LAFCO’s Representative.  The Executive Officer or his designee shall represent LAFCO in all matters pertaining to establishing the priority of the services to be rendered by Consultant pursuant to this Agreement.

            4.         Quality Assurance.  Consultant will observe, at a minimum, the standards set forth in Section 5, below, and acknowledges that the adequacy of its compliance with the Agreement shall be measured by these standards as well as all other terms and conditions of the Agreement. The Executive Officer will evaluate Consultant's performance under this Agreement on not less than a semi-annual basis.  Such evaluation will include assessing Consultant's compliance with all contract terms and performance standards.  The Executive Officer will report deficiencies in Consultant’s performance to LAFCO.  The report will include improvement/corrective action measures to be taken by LAFCO and Consultant and a reasonable time period for compliance.  If improvement does not occur consistent with the corrective action measures and within the time period approved by LAFCO, LAFCO may terminate this Agreement.  Upon such termination, LAFCO shall be entitled to pursue the same remedies against Consultant as it could pursue in the event of a default by Consultant.  Nothing herein shall prevent LAFCO from utilizing any or all of the provisions of Section 9, below, at any time during the term of this Agreement with or without compliance with this Section.

            5.         Standards.       

            A.        Professional Standards.  Consultant shall exercise independent judgment and complete each assignment in accordance with the professional standards of ethics and competence that apply to the profession of which Consultant is a member.

            B.         Conflicts of Interest.  Consultant shall accept no employment that conflicts with its obligations to LAFCO under this Agreement.  Consultant shall have a continuing obligation to disclose any potential conflicts of interest prior to accepting other assignments, and may not accept any other assignments where a potential conflict exists without first obtaining LAFCO’s approval.

            6.         Work Product.

            A.        Ownership.  All materials, data and other information of any kind obtained from LAFCO personnel and all materials, data, work product, reports, fiscal analyses, revenue neutrality analyses, draft and final CFAs, and other information of any kind developed by Consultant under this Agreement are the property of LAFCO, and Consultant agrees to take all necessary measures to protect the security and confidentiality of all such materials, data, work product, reports, fiscal analyses, revenue neutrality analyses, draft and final CFAs, and other information.  Consultant shall not distribute any such materials, data, work product, reports, fiscal analyses, revenue neutrality analyses, draft or final CFAs, or other information, in whole or in part, during or after the Agreement term, to anyone, without the prior written approval of the Executive Officer.  The provisions of this Section shall survive the expiration or other termination of this Agreement.

            B.         Consultant to Maintain Files.   Consultant shall maintain copies of files and documents relating its work performed under this Agreement, including supporting and backup data, and shall promptly make the files and documents available for LAFCO's inspection or shall deliver copies to LAFCO, upon request of the Executive Officer or his designee.  LAFCO may require that some or all of Consultant's work product be provided in electronic format.  Consultant shall turn over to LAFCO all original data, in either hard copy or electronic format, at the completion of this Agreement.

            7.         Record Retention and Inspection.  LAFCO or any duly authorized representative of LAFCO shall have the right to examine, audit, excerpt, copy or transcribe any transaction, activity, time card, cost accounting record, financial record, data or other record pertaining to this Agreement or the work preformed thereunder.  Unless otherwise directed by LAFCO, Consultant shall keep all such material for four (4) years after the completion or termination of this Agreement or until all audits are complete, whichever is later.  If any such records are located outside the County of Los Angeles, Consultant shall pay LAFCO for travel and per diem costs connected with any inspection or audit.

            8.         Audit Settlement.  If, at any time during the term of the Agreement or at any time within four (4) years after the expiration or termination of the Agreement, authorized representatives of LAFCO conduct an audit of Consultant regarding performance of this Agreement, and if such audit finds that LAFCO's obligation for the payment of compensation is less than the payments made by LAFCO to Consultant, then Consultant agrees that the difference shall be either repaid forthwith by Consultant, or at LAFCO’s option, credited to LAFCO against any future compensation payments.  If such audit finds that LAFCO's obligation for the payment of compensation is more than the payments made by LAFCO to Consultant, then the difference shall be paid to Consultant by LAFCO, provided that in no event shall LAFCO's maximum obligation under this Agreement be exceeded.

            9.         Term and Termination.  Except as otherwise provided for in this Agreement, this Agreement shall commence upon approval of this Agreement by LAFCO and continue for a period of one year. The Executive Officer may, subject to the approval of LAFCO, extend the Agreement term for an additional year, by notifying the Consultant in writing before the Agreement expiration date.

            A.        Termination for Convenience.

                        (1)        LAFCO may at its sole option and discretion cancel or terminate this Agreement, without cause, upon three (3) days written notice, without any liability other than the payment for work already performed.  In the event of any such termination by LAFCO, Consultant shall be paid the hourly rate set forth in this Agreement for services rendered up to the date of termination of the Agreement.  Within five (5) business days of such termination, Consultant shall transmit to LAFCO all finished or unfinished documents, records, data, information and/or work product created pursuant to this Agreement, accumulated to the date of such termination, in a form capable of assimilation for use by LAFCO.

            B.         Termination for Improper Consideration.

                        (1)        LAFCO may, by written notice to Consultant, immediately terminate the right of Consultant to proceed under this Agreement if LAFCO finds that consideration, in any form, was offered or given by Consultant, either directly or through an intermediary, to any LAFCO commissioner, officer, employee, or agent with the intent of securing the Agreement or securing favorable treatment with respect to the award, amendment, or extension of the Agreement or the making of any determinations with respect to the Consultant’s performance pursuant to the Agreement.  In the event of such termination, LAFCO shall be entitled to pursue the same remedies against Consultant as it could pursue in the event of default by the Consultant.

                        (2)        Among other items, improper consideration may take the form of cash, discounts, service, the provision of travel or entertainment, or tangible gifts.

                        (3)        Consultant shall immediately report any attempt by a LAFCO commissioner, officer, or employee to solicit improper consideration from Consultant.  The report shall be made to the County of Los Angeles Auditor-Controller’s Employee Fraud Hotline at (213) 974-0914 or (800) 544-6861.

C.        Termination for Default.

                        (1)        If Consultant fails to perform the work under this Agreement in accordance with the covenants, terms and conditions herein or fails to comply with any other covenant, term or condition of the Agreement, LAFCO may, by written notice of default to Consultant, terminate the whole or any part of the Agreement.  Nothing in this Section shall prevent LAFCO from recovering any and all damages arising from the default.  Alternatively, LAFCO may elect not to terminate the Contract without waiving its right to such recovery.

                        (2)        LAFCO, in its sole discretion, may permit Consultant ten (10) calendar days from notification of default to cure the default.  LAFCO, in its sole discretion, may also, by written notice, extend the cure period.

                        (3)        If Consultant does not cure the default to the reasonable satisfaction of LAFCO within the time specified by the notice of default or written extension of time, the Agreement or portion thereof, as determined by LAFCO, shall be terminated.  Within five (5) business days of such termination, Consultant shall transmit to LAFCO all finished or unfinished documents, records, data, information and/or work product created pursuant to this Agreement, accumulated to the date of such termination, in a form capable of assimilation for use by LAFCO.

(4)        LAFCO may provide the Consultant with ten (10) days written notice to terminate any sub-consultant of Consultant for failure to perform in substantial compliance with the terms and conditions of this Agreement and/or in accordance with applicable laws and regulations.  In the event of termination of a sub-consultant by reason of default, Consultant shall self-perform or contract for another sub-consultant approved by the Executive Officer to take over the work and services, and prosecute the same to completion.  Consultant shall be liable for any additional costs incurred by Consultant as a result of the replacement of the sub-consultant.  In the Executive Officer’s sole discretion, the Executive Officer may refrain from directing the Consultant to terminate the sub-consultant for default if the sub-consultant cures the default within ten (10) calendar days after the notice is given.  The Executive Officer, in his sole discretion, may also, by written notice, extend the cure period, if the sub-consultant reasonably commences to cure its default within the ten (10) day period and diligently and in good faith continues to cure the default.

            D.        LAFCO's Remedies for Default.   

                        (1)        In the event LAFCO terminates the Agreement in whole or in part for Consultant's default, LAFCO may procure replacement services from a third party or by LAFCO's employees upon such terms and in such manner as LAFCO deems appropriate. Consultant shall be liable to LAFCO for any excess costs arising from the use of replacement services.  Excess costs shall consist of those reasonable costs incurred by LAFCO in procuring comparable replacement services that exceed the costs LAFCO would have been obligated to pay to Consultant for the services in question.

                        (2)        Consultant shall not be responsible for the failure to perform if it arises out of causes beyond the control and without the fault or negligence of Consultant.  Such causes may include, but are not restricted to, acts of LAFCO in either its sovereign or contractual capacity, acts of the federal and state governments in their sovereign capacities, fires, floods, epidemics, quarantine restrictions, strikes, freight embargoes, and unusually severe weather.  If the failure to perform is caused by the default of a sub-consultant arising from causes beyond the control of both Consultant and sub-consultant, and without the negligence of either of them, Consultant shall not be liable for any excess costs for failure to perform unless Consultant had sufficient time to obtain performance from another party.

                        (3)        The rights and remedies of LAFCO provided in this Section shall not be exclusive and are in addition to any other rights and remedies provided by law or under this Agreement.

            E.         Default for Insolvency.  LAFCO may terminate this Agreement for default without giving Consultant written notice of default and time to cure upon the occurrence of any of the following events:

(1)        Consultant becomes insolvent.  Consultant shall be deemed to be insolvent if Consultant has ceased to pay its debts in the ordinary course of business or cannot pay its debts as they become due, whether Consultant has committed an act of bankruptcy or not, whether Consultant has filed for federal bankruptcy protection and whether it is insolvent within the meaning of the federal bankruptcy law.

(2)        The filing of a voluntary petition to have Consultant declared bankrupt.

(3)        The appointment of a receiver or trustee for Consultant.

(4)        The execution by Consultant of an assignment of this Agreement for the benefit of creditors.

The rights and remedies of LAFCO provided in this Section shall not be exclusive and are in addition to any other rights and remedies provided by law or under this Agreement.

            10.       Insurance.  Without limiting Consultant's indemnification of LAFCO and during the term of this Agreement, Consultant shall provide and maintain at its own expense the following programs of insurance.  Such programs and evidence of insurance shall be satisfactory to LAFCO and not contributing with any other insurance maintained by LAFCO.  Certificates or other evidence of coverage and certified copies of additional insured endorsements shall be delivered to the Executive Officer, Local Agency Formation Commission for Los Angeles County (700 N. Central Avenue, Suite 350, Glendale, CA 91203), prior to commencing services under this Agreement, shall specifically identify this Agreement, and shall contain the express condition that LAFCO is to be given written notice by registered mail at least thirty (30) days in advance of any modification or termination of insurance.  Prior to the expiration of such insurance or any renewal or replacement policy, Consultant shall provide satisfactory proof of a renewal or replacement policy complying with this Agreement.

            A.        Liability Insurance .  Such insurance shall be endorsed naming LAFCO and any and all sub-consultants as additional insureds and shall include:

(1)        General liability insurance written on a commercial general liability form or on a comprehensive general liability form covering the hazards of premises/operations, contractual, independent contractors, advertising, products/completed operations, broad form property damage and personal injury with a combined single limit of not less than $1,000,000 per occurrence.  If written with an annual aggregate limit, the aggregate limit shall be not less than two (2) times the required occurrence limit.  Furthermore, there shall be not less than $4,000,000 excess liability coverage.  If written on a claims-made form, Consultant shall be required to provide an extended two-year reporting period commencing upon termination or cancellation of the Agreement.

                        (2)        Comprehensive auto liability insurance endorsed for all owned, non-owned and hired vehicles with a combined single limit of not less than $1,000,000 per occurrence.

            B.         Errors and Omissions Liability Insurance .  Insurance in an amount not less than $2,000,000 per claim, covering liability arising from any error, omission, commission or negligent act by Consultant, its officers, agents, employees or sub-consultants, in the performance of services under the Agreement.  Such insurance shall apply to liability assumed by the insured that results from an error, omission, commission or negligent act of the insured, its officers, employees, agents or sub-consultants.  The policy or endorsement shall specifically identify this Agreement.

            C.        Workers' Compensation Insurance .  Workers' compensation insurance in an amount and form to meet all applicable requirements of the Labor Code of the State of California, including Employer's Liability, with a $1,000,000 limit covering all persons Consultant is required to cover.

            D.        Failure to Procure Insurance .  Failure on the part of Consultant to procure or maintain the required insurance shall constitute a material breach of the Agreement for which LAFCO may immediately terminate the Agreement.

            11.       Indemnification.  Consultant agrees to indemnify, defend and hold harmless LAFCO, its commissioners, alternates, officers, employees and agents from and against any and all liability and expense, including defense costs and legal fees, arising from or connected with claims and lawsuits of third parties for damages or workers’ compensation benefits relating to Consultants operations or its services, including but not limited to, bodily injury, death, personal injury, property damage (including damage to Consultant’s property) or economic injury.  Consultant shall not be obligated to indemnify for liability and expense arising from the active negligence of LAFCO, its commissioners, alternates, officers, employees or agents

            12.       Independent Contractor.  Consultant shall at all times be acting as an independent contractor.  This Agreement is not intended, and shall not be construed, to create the relationship of agent, servant, employee, partnership, joint venture or association as between LAFCO and Consultant.  Consultant understands and agrees that all of Consultant's personnel who furnish services to LAFCO under this Agreement are employees solely of Consultant and not of LAFCO for purposes of workers' compensation liability.  Consultant shall bear the sole responsibility and liability for furnishing workers' compensation benefits to Consultant's personnel for injuries arising from or connected with the performance of the Contract.  Consultant shall comply with all federal, state, and local statutes, laws, and ordinances related to the payment of employer, income, disability, or other tax which may be due by virtue of any compensation received by Consultant under this Agreement.

            13.       Compliance with Anti-Discrimination Laws.

            A.        Consultant certifies and agrees that all employees and/or sub-consultants of Consultant are and will be treated equally during the term of this Agreement, without regard to their race, color, religion, sex, ancestry, age, physical disability, marital status, political affiliation, or national origin, and in compliance with all anti-discrimination laws of the United States of America and the State of California.

            B.         Consultant shall allow LAFCO access to the employment records of Consultant’s staff during regular business hours to verify compliance with these provisions when requested by LAFCO.

            C.        If LAFCO finds that any of the above provisions have been violated, the same shall constitute a material breach of this Agreement upon which LAFCO may determine to terminate the Agreement.  While LAFCO reserves the right to determine independently that the anti-discrimination provisions of this Agreement have been violated, a final determination by the California Fair Employment Practices Commission or the Federal Equal Employment Opportunity Commission that Consultant has violated state or federal anti-discrimination laws shall constitute a finding on which LAFCO may conclusively rely that Consultant has violated the anti-discrimination provisions of this Agreement.

            D.        The parties agree that in the event Consultant violates the anti-discrimination provisions of the Agreement, LAFCO, at its option, shall be entitled to a sum of five hundred dollars ($500) per violation, pursuant to Section 1671 of the California Civil Code, as damages in lieu of terminating the Agreement.

            14.       Compliance with Civil Rights Laws.  Consultant hereby assures that it will comply with all applicable federal and state statutes to the end that no person shall, on the grounds of race, religion, color, sex, age, physical disability, marital status, political affiliation or national origin, be excluded from participation in, be denied the benefits of, nor be otherwise subjected to discrimination under this Agreement or under any project, program, or activity supported by this Agreement.

            15.       Compliance with Federal, State and Local Laws.  Consultant agrees to comply with all applicable federal, state and local laws, rules, regulations, ordinances, or codes and all provisions required by these laws to be included in this Agreement are incorporated herein by reference. Consultant agrees to defend, indemnify and hold LAFCO harmless from any loss, damage, liability or expense resulting from a violation on the part of Consultant of such laws, rules, regulations or ordinances.

            16.       Notice.  Notice pursuant to this Agreement shall be given in writing and deposited with postage prepaid in the United States Mail, addressed as follows:




Local Agency Formation Commission for Los Angeles County

700 N. Central Avenue, Suite 350

Glendale, CA 91203

Attention:  Executive Officer




Rosenow Spevacek Group, Inc.

540 N. Golden Circle, Suite 305

Santa Ana, CA   92705



The address for notice may be changed by giving notice of such change pursuant to this Section.

            17.       Entire Agreement.  This Agreement constitutes the entire agreement between LAFCO and the Consultant and may be modified only by further written agreement between the parties hereto.  The unenforceability, invalidity or illegality of any provision of this Agreement shall not render the other provisions thereof unenforceable, invalid, or illegal.

            18.       Waiver.  No waiver of a breach of any provision of this Agreement by either party shall constitute a waiver of any other breach of the provision or any other provision of the Agreement.  Failure of either party to enforce a provision of the Agreement at any time, or from time to time, shall not be construed as a waiver of that provision or of any other provision of the Agreement.  The remedies contained in this Agreement shall be cumulative and additional to any other remedies in law or equity.

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

            20.       Disclosure of Information.  Consultant shall not disclose any details in connection with this Agreement or any of Consultant's work product to any third party, except as may be specifically provided for in this Agreement, as required by law or as directed by the Executive Officer.  Recognizing Consultant's need to identify its services and clients, however, Consultant may publicize this Agreement, subject to the following limitations:

A.        All publicity shall be presented in a professional manner.

B.         The name of LAFCO shall not be used in commercial advertisements, press releases, opinions or feature articles, without the prior written consent of LAFCO. LAFCO shall not unreasonably withhold written consent.

            C.        Consultant may list the Agreement in any other proposal submitted in response to a request for proposals or bids from a third party without prior written permission of LAFCO.

            21.       Delegation and Assignment.  Consultant may not delegate its duties or assign its rights under this Agreement, either in whole or in part, without the prior written consent of LAFCO.  Any delegation of duties or assignment of rights under the Agreement without the express written consent of LAFCO shall be null and void and shall constitute a breach for which the Agreement may be terminated.  Any delegation or assignment shall be in the form of a subcontract or formal assignment, as applicable.

            22.       Changes and Amendments.  Except as provided in this Section, renewals and other modifications of this Agreement shall be in writing and shall be executed by the parties and approved by LAFCO in the same manner as the Agreement.  A change which does not materially affect the Scope of Work, period of performance, compensation, method of payment, insurance, indemnity, or other material term or condition of the Agreement shall be effective upon the Executive Officer and Consultant signing a change notice or other writing reflecting a modification of the Agreement.  The Executive Officer may, in his sole discretion, grant Consultant extensions of time for performance of the work where such extensions do not materially affect the work.  Such extensions shall not be deemed to extend the term of this Agreement.

            23.       Time.  Except as specifically otherwise provided in this Agreement, Consultant shall perform its services hereunder with due and reasonable diligence consistent with sound professional practices, and all terms and conditions of the Agreement with respect to such performance shall be so construed.

            IN WITNESS WHEREOF, the parties executed this Agreement as of the date first above written.

LOCAL AGENCY FORMATION                             CONSULTANT







By                                                                                By 

LARRY J. CALEMINE                                              

Executive Officer                                                         









APPROVED AS FORM:                                            



County Counsel







April 10, 2002


Hollywood Special Reorganization

Consideration of Boundary Adjustments



On January 23, 2002, the LAFCO commission directed staff and its consultants to analyze the effects of three different boundary scenarios. The first scenario, designated SC1, is the boundary of the special reorganization area as originally proposed by the applicants. The second scenario, designated SC2, would eliminate from the original special reorganization area those areas for which LAFCO had received a request for exclusion from property owners or homeowner associations. The third scenario, designated SC3, would eliminate from the original special reorganization area the territory located south of Melrose Avenue.


During the last few weeks LAFCO has received the following additional requests for boundary adjustments from property owners, applicants and the City of Los Angeles regarding:

1)         Request by the City of Los Angeles to exclude that portion of Griffith Park located west of the northerly extension of Western Ave.

2)         Request by the City of Los Angeles to exclude of that portion of Griffith Park located on both sides of Fern Dell Drive

3)         Request by Forest Lawn and Mount Sinai Memorial Parks to be excluded.

4)         Request by Universal Studios to exclude two parcels from Hollywood and include said parcels in the San Fernando Valley boundary.

5)         Agreement by the applicants to adjust the Hollywood/San Fernando Valley Cahuenga Pass boundary line.

6)         Applicants request to include the triangular area bounded by Melrose Ave on the north, Hoover on the east and the 101 Freeway on the south.

7)         Neighborhood groups requesting exclusion of all territory located south of Willoughby between Western on the east and Fairfax on the west.



1)      The concern raised by the City with regard to Griffith Park property was that transfer of this property could trigger a reversionary interest held by the Griffith heirs. Review of the Grant Deed indicates that the property in question was purchased by the City of Los Angeles from the M.H. Sherman Company and was not a part of the Griffith grant. The Sherman Company deed does not contain a reversionary clause and therefore, the property should not be excluded from the boundary on that basis.

2)      This parcel is the westerly entrance to Griffith Park and as such should remain in the City of Los Angeles.

3)      The applicants have expressed a willingness to exclude these two parcels.

4)      This request is made by Universal Studios so as to have all its non-county properties under the jurisdiction of one municipality. Both applicants have expressed a willingness to cooperate in this effort.

5)      Both applicants have agreed to the relocation of the boundary separating the two territories.

6)      The applicants feel that the needs of this area are being ignored by the City of Los Angeles and that the proposed City of Hollywood will be better able to service the community.

7)      To exclude all the territory south of Willoughby would severely impact the sales tax and property tax revenue sources for the proposed City of Hollywood. The commission recognized this impact when it directed staff to only exclude territory south of Melrose Ave in preparing the SC3 scenario.



Staff recommends your commission direct staff and its consultants to analyze a fourth scenario, to be designated SC4, which will adjust the original special reorganization boundary as follows:

1)                  Parcel 1 to remain within the boundary as submitted by the applicants.

2)                  Parcel 2 to be excluded from the boundary as submitted by the applicants.

3)                  Parcel 3 to be excluded from the boundary as submitted by the applicants.

4)                  Parcel(s) 4 to be excluded from the boundary as submitted by the Hollywood applicants and added to the San Fernando Valley territory.

5)                  Boundary line to be adjusted per agreement between the applicants.

6)                  Parcel 6 to remain within the boundary as submitted by the applicants.

7)                  Exclusion of all properties south of Melrose Ave between Normandy Ave on the east and Sweetzer Ave on the west.

8)                  Exclusion of all properties located north of Melrose Ave. and west of Fairfax Ave.