Agenda packet — Bell City Council, November 13, 2024 (part 1 of 2)

Agenda

Regular Meeting of the

Bell City Council/Bell Community Housing Authority/Successor Agency to the Bell Community Redevelopment Agency/ Bell Public Finance Authority

Wednesday, November 13, 2024

5:00 P.M. CLOSED SESSION
7:00 P.M. OPEN SESSION

BELL COMMUNITY CENTER
6250 PINE AVENUE, BELL CA 90201

Ali Saleh
Mayor

Monica Arroyo Francis Flores
Vice-Mayor Council Member

Ana Maria Quintana Alicia Romero Council Member Council Member

Welcome to the City Council Meeting

The Bell City Council and staff welcome you. This is your City Government.

Individual participation is a basic part of American Democracy and all Bell residents are encouraged to attend meetings of the City Council. Regular City Council meetings are held the second and fourth Wednesday of the m onth at 7:00 p.m., Bell Community Center, 6250 Pine Avenue. For more information, you may call City Hall during regular business hours 8:00 a.m. to 4:00 p.m., Monday through Friday at (323) 588-6211 Extension 2615.

City Council Organization

There are five City Council members, one of whom serves as Mayor and is the presiding officer of the City Council. These are your elected representatives who act as a Board of Directors for the City of Bell. City Council members are like you, concerned residents of the community who provide guidance in the operation of your City.

Addressing the City Council

If you wish to speak to the City Council on any item which is listed or not listed on the City Council Agenda, please complete a Request to Speak Card available in the back of the City Council Chambers. Please submit the completed card to the City Clerk prior to the meeting. The Mayor will call you to the microphone at the appropriate time if you have filled out a Request to Speak Card. At that time, approach the podium and please clearly state your name and address, and proceed to make your comments.

Compliance with Americans with Disabilities Act

The City of Bell, in complying with the Americans with Disabilities Act (ADA), request individuals who require special accommodation(s) to access, attend, and or participate in a City meeting due to disability. Please contact the City Clerk’s Office, (323) 588-6211, Ext. 2615, at least one business day prior to the scheduled meeting to ensure that we may assist you.

Statement Regarding Compensation for Membe
rs of the Bell City Council

Compensation for the members of the Bell City Council is $673 a month. In accordance with Government Code Section 54952.3, Councilmembers will not receive any additional compensation or stipend for the convening of the following regular meetings: Successor Agency to the Bell Community Redevelop ment Agency, the Bell Community Housing Authority, the Bell Public Finance Authority, the Bell Surplus Property Authority, and the Bell Solid Waste Authority.

Meeting of the
Bell City Council and Related Agencies
November 13, 2024

REGULAR JOINT MEETING OF THE

Bell City Council/Bell Community Housing Authority/Successor Agency to the Bell Community Redevelopment Agency/Bell Public Finance Authority

November 13, 2024

5:00 P.M. Closed Session
7:00 P.M. Regular Meeting

Location: Bell Community Center, 6250 Pine Avenue, Bell CA 90201

Call to Order

Roll Call of the City Council in their capacities as Councilmembers/Members of all Related Agencies: Councilmembers Flores, Quintana, Romero, Vice-Mayor Arroyo, and Mayor Saleh

Communications from the Public on Closed Session Items

This is the time for members of the public to address the City Council and related Authorities and Agencies only on items that are listed under Closed Session.

Closed Session

The City Council and the related Authorities and Agencies will recess to closed session to confer with legal counsel regarding the following matters:

a. CONFERENCE WITH REAL PROPERTY NEGOTIATORS (Pursuant to Government Code section 54956.8)
Property: 6307,6311,6315,6335,6339 Pine Avenue, Bell CA 90201 Agency negotiators: Michael L. Antwine II (City Manager), and Dave Aleshire (City Attorney) Negotiating parties: To be Determined

b. CONFERENCE WITH REAL PROPERTY NEGOTIATORS (Pursuant to Government Code section 54956.8)
Property: 7030 Atlantic Avenue, Bell CA 90201
Agency negotiators: Michael L. Antwine II (City Manager), and Dave Aleshire (City Attorney) Negotiating parties: To be Determined

c. CONFERENCE WITH REAL PROPERTY NEGOTIATORS (Pursuant to Government Code

MEETING WILL BE HELD IN-PERSON AT THE BELL COMMUNITY CENTER

PUBLIC COMMENT: I f you wish to make a comment on items listed on the agenda, you may attend the meeting in- person at Bell Community Center. Please complete a Request to Speak Card available in the location and wait until the mayor calls you to approach the podium. Please clearly state your name and address and proceed to make your comments.

You may also submit input electronically through a temporary public comment email established for City of Bell City Council meetings at [email protected]. Your written comment must be submitted by 4pm on Wednesday, November 13, 2024.

Any emails received after the time indicated will not be included in the record. Written Comments will be subject to the three minute time limitation (approximately 350 words).

The meeting will be recorded and live streamed on the City’s website at http://www.cityofbell.org/?NavID=101

Meeting of the
Bell City Council and Related Agencies
November 13, 2024
section 54956.8)
Property: 4400-4410 Gage Avenue, Bell CA 90201
Agency negotiators: Michael L. Antwine II (City Manager), and Dave Aleshire (City Attorney) Negotiating parties: To be Determined

d. CONFERENCE WITH LEGAL COUNSEL – Government Code Section 54956.9(d)(1) Montebello Unified School District v. Successor Agency to Community Redevelopment Agency of the City of Bell, et al., Los Angeles Superior Court Case No. 20STCV36816

e. Public Employee Performance Evaluation (Government Code Section 54957 (b)) Title: Chief of Police

f. Public Employee Performance Evaluation (Government Code Section 54957 (b)) Title: City Manager

g. CONFERENCE WITH LABOR NEGOTIATORS - Government Code Section 54957.6, Agency designated representatives: Michael L. Antwine II (City Manager), and Dave Aleshire (City Attorney) Employee Organization: Bell Police Officers Association (BPOA)

h. CONFERENCE WITH LABOR NEGOTIATORS - Government Code Section 54957.6, Agency designated representatives: Michael L. Antwine II (City Manager), and Dave Aleshire (City Attorney) Employee Organization: Bell City Employee Association (BCEA)

i. CONFERENCE WITH LABOR NEGOTIATORS - Government Code Section 54957.6, Agency designated representatives: Michael L. Antwine II (City Manager), and Dave Aleshire (City Attorney) Employee Organization: Bell Executive Management Association (BEMA)

Reconvene Regular City Council Meeting

Call to Order

Roll Call of the City Council in their capacities as Councilmembers/Members of all Related Agencies: Councilmembers Flores, Quintana, Romero, Vice-Mayor Arroyo, and Mayor Saleh

Pledge of Allegiance

City Attorney Report

The City Attorney will report out on any action(s) to be taken by the City Council/Agencies on Closed Session matters.

Presentations and Recognitions

a. Mayor’s Citizens Award to Hilda Rodriguez
b. Veterans Day Presentation
c. Pet Health Fair Presentation
d. Republic Services Presentation
e. Proclamation declaring the month of October 2024 as Domestic Violence Awareness Month
f. Proclamations declaring the month of November 2024 as:

1. National Alzheimer's Disease Awareness Month

2. November 22, 2024 as Lebanese Independence Day

Meeting of the
Bell City Council and Related Agencies
November 13, 2024

3. Native American History Month

4. National Family Literacy Month

Communications from the Public

This is the time members of the public may address the City Council and related Authorities and Agencies on items that are on the agenda and non-agenda items that are under the subject matter jurisdiction of City Council and/or its related authorities and agencies. (Each speaker is limited to three minutes)

Mayor and City Council Communications

Pursuant to Assembly Bill 1234, this is the time and place to provide a brief report on meetings, seminars and conferences attended by the Mayor and City Councilmembers.

City Manager Report

In this portion of the agenda, the City Manager will provide a brief report on items of interest to the City Council and/or the community.

Public Hearings

The following item has been posted as a Public Hearing as required by law. The Mayor will open the Public Hearing(s) to receive public testimony only on the item(s) listed under this section.

1. Lease and Relocation Agreement regarding constructing a new digital billboard near 5400 Gage Avenue in the Manufacturing (M) zone. (City Council)

Recommendation: It is recommended that the City Council:

1. Determine that the proposed project is exempt from further review under the California Environmental Quality Act (CEQA), as it qualifies for a categorical exemption under CEQA Guidelines Section 15303, (Class 3) “New Construction or Conversion of a Small Structure”; and

2. Read by title only, waive further reading and adopt Resolution No. 2024-48 titled:

A RESOLUTION OF THE CITY OF BELL CITY COUNCIL

APPROVING A LEASE AND RELOCATION AGREEMENT WITH

OUTFRONT MEDIA, LLC TO CONSTRUCT AND OPERATE A

DIGITAL BILLBOARD ON CITY -OWNED PROPERTY NEAR
5400 GAGE AVENUE

2. Consideration to adopt the Development Impact Fee Study. (City Council)

Recommendation: It is recommended that the City Council read by title only, waive further reading and adopt Resolution 2024-49 titled:

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BELL

ADOPTING THE DEVELOPMENT IMPACT FEES

Meeting of the
Bell City Council and Related Agencies
November 13, 2024
Business Session

3. HDL Business License Tax Presentation. (City Council)

Recommendation: It is recommended that the City Council receive and file the presentation.

4. Request to Set a Public Hearing on January 22, 2025 at 6:30 p.m. to Consider updating and establishing user and regulatory fees for various City services. (City Council)

Recommendation: It is recommended that the City Council schedule a Public Hearing on Wednesday, January 22, 2025 at 6:30 p.m. to consider updating and establishing user and regulatory fees for various City services.

5. Consideration of Approving Amendment No.1 to the Agreement between the City of Bell and HQE Systems, Inc. (City Council)

Recommendation: It is recommended that the City Council:

1. Approve Amendment No. 1 to the Agreement between the City of Bell and HQE Systems, Inc. by increasing the contract sum from $41,304.46 to $88,121.55; and

2. Approve appropriation of $20,184.96 from the American Rescue Plan Act 2021 (ARPA) fund, and $26,632.13 of Homeland Security Grant fund to cover the increase in contract sum of the Agreement between the City of Bell and HQE Systems, Inc.

6. Traffic Signal Equipment Upgrade Project (CIP NO. 7180) – Award of Contract. (City Council)

Recommendation: It is recommended that the City Council:

1. Award a construction contract in the amount of $897,115.76 to Econolite Systems, Inc. for the Traffic Signal Improvements Project (CIP No. 7180).

2. Authorize the City Manager to execute change orders for the project in a total amount not to exceed $89,711.58 (ten percent of the bid amount) for any necessary additional work.

3. Read by title only, waive further reading and adopt Resolution No. 2024-50 titled:

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
BELL, CALIFORNIA APPROVING A FISCAL YEAR 2024-2025
BUDGET AMENDMENT TO APPROPRIATE $14,739 FROM
PROPOSITION C FUNDS (FUND 680) AND $352,080 FROM
OTHER GRANTS (FUND 332) TO THE TRAFFIC SIGNAL
EQUIPMENT UPGRADE PROJECT (CIP NO. 7180)

7. Approval for the Installation of a New Playground Project at Camp Little Bear and to Enter Into an Agreement with Great Western Installations, Inc. (City Council)

Recommendation: It is recommended that the City Council approve an agreement with Great Western Inc. for the removal and replacement of the three Playground Areas at Camp Little Bear.

8. Limited License to Enter Agreement Between Miguel Rodriguez and the City of Bell. (City

Meeting of the
Bell City Council and Related Agencies
November 13, 2024
Council)

Recommendation: It is recommended that the City Council:

1. Approve the Limited License to Enter Agreement between Miguel Rodriguez and the City of Bell.

2. Authorize the City Manager to execute the Limited License to Enter Agreement.

9. Amendment to City Manager Employment Agreement- Removal of Section 3.2: Cost of Living Increase. (City Council)

Recommendation: It is recommended that the City Council approve the amendment to the City Manager’s Contract to remove Section 3.2 which pertains to the Cost -of-Living Adjustments (COLA). This measure is proposed to address potential conflicts of interest arising from the city manager negotiating on behalf of Department Heads of the city while benefiting from similar adjustments.

10. Approval of a Purchase and Sale Agreement with City Ventures Homebuilding, LLC for certain property located at 5241 Florence Avenue. (City Council)

Recommendation: It is recommended that the City Council read by title only, waive further reading and adopt Resolution No. 2024-52 titled:

A RESOLUTION OF THE CITY COUNCIL OF THE OF THE CITY OF

BELL APPROVING A PURCHASE AND SALE AGREEMENT WITH CITY

VENTURES HOMEBUILDING, LLC FOR CERTAIN PROPERTY
LOCATED AT 5241 FLORENCE AVENUE IN THE CITY OF BELL

Consent Calendar

The following Consent Calendar items are expected to be routine and non-controversial. They are acted upon by the City Council and related authorities at one time without discussion. The reading of the full text of ordinances and resolutions will be waived unless a Councilmember requests otherwise.

Recommendation: Approve agenda items 11 through xx.

11. It is recommended that the City Council:

1. Read by title only, waive further reading and adopt Resolution No. 2024-51 titled:

“A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

BELL ACCEPTING THE CIVIC CENTER IMPROVEMENTS/

INTERIOR PAINTING PROJECT AS COMPLETE AND

AUTHORIZING STAFF TO PREPARE AND FILE THE NOTICE

OF COMPLETION WITH THE LOS ANGELES COUNTY
RECORDER”

2. Authorize staff to release retention thirty -five (35) days after the filing of the Notice of Completion.

12. It is recommended that the City Council conduct the second reading of Ordinance 1292 by

Meeting of the
Bell City Council and Related Agencies
November 13, 2024
title only, waiving further reading and adopting Ordinance No. 1292 titled:

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF

BELL TO APPROVE THE DEVELOPMENT AGREEMENT (DA
2024-01) FOR THE CONSTRUCTION AND OPERATION OF A
NEW DIGITAL BILLBOARD AT 5390 RICKENBACKER ROAD

13. Minutes for the Regular City Council Meeting of October 9 and 23, 2024. (City Council)

14. General Warrants, Successor Agency to the Bell Community Redevelopment Agency and Community Housing Authority Warrants of November 13, 2024. (Council/Successor Agency to the Bell Community Redevelopment Agency/Bell Community Housing Authority).

Pending Items – None

Wednesday, November 27, 2024 Regular Meeting Cancelled
Next Regular Meeting Wednesday, December 11, 2024

I, Angela Bustamante, City Clerk of the City of Bell, certify that a true, accurate copy of the foregoing agenda was posted November 10, 2024 at least seventy-two (72) hours prior to the meeting as required by law.

__________________________
Angela Bustamante, City Clerk

REGULAR MEETING OF THE

BELL CITY COUNCIL AND RELATED AGENCIES

November 13, 2024

5:00 P.M. Closed Session
7:00 P.M. Regular Session

INDEX

Agenda Category Item Number Page Numbers

CLOSED SESSION a – i

AGENDA & INDEX 1-9

PUBLIC HEARINGS 1 10-53
2 54-109

BUSINESS SESSION 3 110
4 111-112
5 113-152
6 153-187
7 188-244
8 245-249
9 250-275
10 276

CONSENT CALENDAR 11 277-281
12 282-318
13 319-332
14 333-442

AGENDA ITEM 1
City of Bell
Agenda Report
D
ATE: November 13, 2024
T
O: Mayor and Members of the City Council
F
ROM: Manuel Acosta, Director of Community Development
APPR
OVED Michael L. Antwine II (e-signature)
BY: _____________________________
Michael L. Antwine II, City Manager
SU
BJECT: Lease and Relocation Agreement regarding constructing a new digital billboard near 5400 Gage Avenue in the Manufacturing (M) zone.

R
ECOMMENDATION:

It i
s recommended that the City Council:

1. D
etermine that the proposed project is exempt from further review under the California Environmental Quality Act (CEQA), as it qualifies for a categorical exemption under CEQA Guidelines Section 15303, (Class 3) “New Construction or Conversion of a Small Structure”; and

2. R
ead by title only, waive further reading and adopt Resolution No. 2024-48 titled:

RESOLUTION OF THE CITY OF BELL CITY

COUNCIL APPROVING A LEASE AND RELOCATION

AGREEMENT WITH OUTFRONT MEDIA, LLC TO

CONSTRUCT AND OPERATE A DIGITAL

BILLBOARD ON CITY -OWNED PROPERTY NEAR
5400 GAGE AVENUE
B
ACKGROUND:

In 2023, the
City Council adopted Ordinance Nos. 1278 and 1283 establishing regulations and standards to facilitate the operation of digital billboards within the City’s manufacturing zoning districts. Since then, negotiations have taken place between Outfront Media, LLC (OFM) and the City regarding the construction and operation of a new freestanding digital billboard, featuring a double-sided display on City-owned property.

A
s a result, the City and OFM have developed a Lease and Relocation Agreement (see Exhibit A to Attachment 2) for consideration by the City Council. This report presents an analysis of the proposed billboard, examining its location, potential impacts on the surrounding area, and the public benefits associated with establishing this structure in the City.

The pr
oposed project is located in the Manufacturing (M) zone, and the City’s zoning ordinance allows the construction and operation of a digital billboard in a M zone with a Conditional Use Permit (CUP) from the Planning Commission, and an agreement approved by City Council . On October 16, 2024, the Planning Commission adopted Resolution No. 2024-11PC (Attachment 1)

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AGENDA ITEM 1
approving CUP 2024-04 subject to the findings and conditions provided in the Resolution, (see Attachment 1) and recommended that City Council approve the associated Lease and Relocation Agreement to allow the construction and operation of a new digital billboard near 5400 Gage Avenue.

DISCUSSION AND AN ALYSIS:

The advertising company OFM proposes to construct a new digital billboard structure on vacant city-owned property near I-710. This freeway is a heavily traveled route for commuters, tourists, and commercial vehicles traveling through the community daily to reach various destinations in the area and throughout the State making the proposed location optimal for a digital billboard.

The City will lease the property to OFM who will also pay a percentage of their advertisement revenue to the City, as well as allow the sign to be used for immediate emergency and community messaging by City, County, and State agencies.

The digital billboard will consist of a freestanding pole, a two-sided V-shaped digital display area with each digital sign area having dimensions of 14 feet tall by 48 long, and an overall height of 67 feet. The digital display areas will be lit by LED lighting. The digital billboard structure will be built with a concrete base that will occupy approximately 40 square feet of the site. The bottom of the digital display panels will be 46 feet above the existing grade or base of the sign. The design of the billboard structure will include “City of Bell” as a permanent sign above the panels with an overall design similar to the digital sign that was recently approved by the City Council.

The project also involves the removal of five faces of static/traditional OFM billboard signs located on the same side of the freeway, which are situated on privately owned property.

City staff finds that the proposed billboard at the subject site complies with the development standards of the zoning ordinance and is compatible with the surrounding area. Such standards discuss requirements regarding overall height, billboard display area size and operation. The digital billboard will be comprised mostly of metal and painted in a color pattern that will give the structure an industrial appearance, thereby being compatible with the existing building near the property and other structures in the vicinity. The digital billboard will not produce any light or glare that will be blinding or distracting to nearby businesses, pedestrians, or motorists , will generate negligible noise and will not disturb nearby businesses. The digital billboard will not extend over a sidewalk or a high usage driving lane and is not anticipated to create safety concerns regarding its operation and use near the public right of way, nor will it produce any waste or noxious gases that would be offensive or unhealthy for the general public. Based on this analysis, City staff believes the proposed digital billboard will not be a detriment or negatively impact the surrounding area. Additionally, the project involves the removal of five billboard faces located along the freeway that will improve the visual quality of the area.

General Plan

The proposed project conforms to the Bell General Plan as it achieves several land use objectives.

The new, state-of-the-art digital sign panels will provide for enhanced advertising opportunities for local businesses and increase sales tax revenue to the City. The additional benefit of the proposed digital signage being used for immediate emergency and community messaging by City, County, and State agencies also supports the General Plan objectives. Additionally, the digital signage could be used for regional messaging due to its proximity to I-710. Therefore, the proposed digital billboard accomplishes the following Land Use and Sustainability Element objectives set forth in the General Plan 2030, established in 2018:

1) That the parties have complied with the California Environmental Quality Act.

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AGENDA ITEM 1
2) To promote quality design in new and rehabilitated development throughout the city. 3) To promote sustainability in the planning, design, and construction of new and rehabilitated development throughout the city.
4) To ensure that the future needs for infrastructure and public services are addressed. 5) To ensure a strong industrial and commercial tax base to finance public improvements and services.

Lease and Relocation A greement

The City’s zoning ordinance requires billboard operators to enter into an Agreement with the City, along with a CUP from the Planning Commission, which was approved on October 16, 2024.

Billboards along State highways must also comply with the California Department of Transportation (Caltrans) Outdoor Advertising Act Section 5443(b).

The Lease and Relocation Agreement between the City of Bell and OFM provides the terms, rent amount, including a Minimum Annual Guarantee (MAG) payable to the City from the digital billboard advertisements, and other negotiated provisions between the City and OFM. This agreement also includes an obligation for OFM to allow the City to post Public Servi ce Announcements (PSAs) on the digital billboard at no cost to the City and advertisements by local businesses at a ten percent discounted rate. Staff has determined that the project meets the findings to Approve the Lease and Relocation Agreement according to the Bell zoning ordinance as follows:

i. The proposed Agreement is consistent with the goals, objectives, purposes and provisions of the General Plan, the Municipal Code, and any applicable specific plans and provides for appropriate maintenance and periodic review; The Agreement includes terms that are consistent with several of the Land Use and Sustainability Element objectives set forth in the General Plan 2030, as provided in the General Plan section of this Staff Report, as well as the applicable provisions in the Municipal Code, and provides for appropriate maintenance and periodic review.

ii. The proposed installation site is compatible with the uses and structures on the site and in the surrounding area; The project will be located on a vacant site with sparse landscaping along an interstate freeway. The site is near large power transmission towers and the closest building contains an auto repair use that is approximately 200 feet away.

iii. The proposed digital billboard would not create a traffic or safety problem, including problems associated with on-site access circulation or visibility; The digital billboard will operate in a manner that complies with the operational standards for billboards as set forth in the Bell zoning code and will not create a traffic or safety concern with freeway traffic nor conflict with any on-site access or visibility.

iv. The proposed digital billboard would not interfere with on-site parking or landscaping required by city ordinance or permit; There is no on-site parking or landscaping required for the project.

v. The proposed digital billboard would not otherwise result in a threat to the general health, safety, and welfare of city residents; The digital billboard will not produce any light or glare that will be blinding or distracting to nearby residents, businesses, pedestrians, or motorists, nor will it produce sound that could disturb nearby businesses or motorists. The digital billboard does not extend over a sidewalk or a high usage driving lane, so it is not anticipated to create safety concerns regarding its operation and use near the public right-of-way, and it will not produce any waste or noxious gases that would be

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AGENDA ITEM 1
offensive or unhealthy for the general public. The nearest residence is on the opposite side of I-710, approximately 25 feet from the site.

vi. The proposed digital billboard, in addition to its aesthetic treatment, provides substantial public benefits that would not otherwise accrue to the public in the absence of its installation. The digital billboard will offer the potential for a source of revenue and other public benefits, such as advertising for immediate emergency and community messaging for the City, County, and State agencies. The project also involves removal of outdated signs and will enhance the visual appearance of the City along the freeway.

CONCLUSION:

The proposal for OFM to partner with the City of Bell to construct and operate a digital billboard along I-710 in the City complies with the Bell zoning ordinance and satisfies the findings for the Lease and Relocation Agreement. The digital billboard will not produce glaring light, noises, or sounds beyond ambient level noise that would be considered a nuisance. In addition, the billboard will be approximately 250 feet from the nearest residence; therefore, the City does not anticipate it being a public nuisance.

The billboard will be mostly metal and painted to match the area's existing industrial land uses.

The project also includes removing five faces of existing billboard signs in the vicinity, which will reduce outdated and blighted signage along this portion of the freeway. Lastly, the digital billboard offers the City the potential for revenue and other public benefits.

On October 16, 2024, 2024, the Planning Commission determined that the project met the findings to approve a CUP and adopted Resolution No. 2024-11PC. Further, it is recommended that the City Council approve the subject Lease and Relocation Agreement. Staff, therefore, recommend that the City Council adopt Resolution No. ## to approve the Lease and Relocation Agreement regarding the construction and operation of the digital billboard near 5400 Gage Avenue

ENVIRONMENTAL REVIEW:

Pursuant to the provisions of the California Environmental Quality Act (CEQA), the project qualifies for a categorical exemption under CEQA Guidelines Section 15303, (Class 3) “New Construction or Conversion of a Small Structure” in that the project involves the installation of a new billboard structure on vacant property. This type of development has been determined to not create any potential significant impacts on the surrounding environment and is thereby exempt from any further environmental review.

FISCAL IMPACT:

There will be no fiscal impact associated with the adoption of the Resolution; however, the Agreement between the City and Outfront Media, LLC will generate revenue for the City. The revenue terms for this agreement are as follows: Years 1-5 $140,000; Years 6 -10 $154,000; Years 11-15 $165,000 and Years 16-20 $185,000.

ATTACHMENTS:

1. PC Resolution No. 2024-12PC

2. Resolution No. 2024-48 and Exhibit A - Lease and Relocation Agreement between the City of Bell and Outfront Media, LLC

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Resolution 2024-48

Page 1 ends

RESOLUTION NO. 2024-48

A RESOLUTION OF THE CITY OF BELL CITY

COUNCIL APPROVING A LEASE AND RELOCATION

AGREEMENT WITH OUTFRONT MEDIA, LLC TO

CONSTRUCT AND OPERATE A DIGITAL

BILLBOARD ON CITY -OWNED PROPERTY NEAR
5400 GAGE AVENUE

WHEREAS, an application for a Lease and Relocation Agreement No. 24-1 (“Agreement”) was duly filed by Outfront Media, LLC (“the Applicant”) with respect to a vacant 13,550 square-foot property with Los Angeles County Assessor’s Parcel Number 6327-039 -902, near 5400 Gage Avenue, Bell California (“Property”) that is owned by the City of Bell (“the City”); and

WHEREAS, the Applicant plans to develop and operate a new, freestanding 67-foot tall, double-sided digital billboard sign structure, each display face measuring approximately 14’ x 48’ (“Proposed Project”); and

WHEREAS, the subject property is zoned Manufacturing (M) and pursuant to the Bell Municipal Code (“BMC”), the repair, replacement, or new installation of a digital billboard within a manufacturing zone requires the approval of a Conditional Use Permit (“CUP”) from the Planning Commission and an Agreement approved by City Council with appropriate standards and public benefits to be negotiated with the City and complying with all other standards imposed by the BMC; and

WHEREAS, in accordance with the California Environmental Quality Act (California Public Resources Code §§ 21000, et seq., “CEQA”) and the regulations promulgated thereunder (14 California Code of Regulations §§ 15000, et seq., the “CEQA Guidelines”) the Proposed Project qualifies for a categorical exemption under CEQA Guidelines Section 15303, (Class 3) “New Construction or Conversion of a Small Structure” in that the project involves the installation of a new billboard structure on vacant property; and

WHEREAS, on October 16, 2024, the Planning Commission conducted a duly noticed public hearing, at which time, they received input from staff; opened the public hearing for public testimony and after hearing none, closed the public hearing and adopted Resolution No. 2024- 11PC to approve CUP 2024-04 and recommended that the City Council approve the Lease and Relocation Agreement (Exhibit A); and

WHEREAS, on November 13, 2024, the Agreement for the Proposed Project was scheduled before the City Council as a duly noticed public hearing, at which time they received input from staff and the Applicant, heard public testimony, discussed the Proposed Project, closed the public hearing and, after discussion voted to approve the Agreement based on the findings and conditions provided in this Resolution, and directed the Mayor, City Manager, and City Clerk or their designees to execute the Agreement on behalf of the City; and

WHEREAS, this Resolution and its findings and conditions are made based upon evidence presented to the City Council at its public hearing, including, without limitation, the staff report submitted by the Community Development Department and

WHEREAS, all legal prerequisites to adopting this Resolution have been met.

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Resolution 2024-48

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NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF BELL DOES HEREBY FIND, DETERMINE AND DECLARE AS FOLLOWS:

SECTION 1. The City Council finds that the above recitals are true and correct and are incorporated herein by reference.

SECTION 2. The City Council finds as follows the following Agreement findings for Digital Signs:

ii. The proposed installation site is compatible with the uses and structures on the site and in the surrounding area; The project will be located on a vacant site with and sparse landscaping along an interstate freeway. The site is near large power transmission towers and the closest building contains an auto repair use that is approximately 285 feet away.

iv. The proposed digital billboard would not interfere with on-site parking or landscaping required by city ordinance or permit; There is no on-site parking or landscaping required for the project.

v. The proposed digital billboard would not otherwise result in a threat to the general health, safety, and welfare of city residents; The digital billboard will not produce any light or glare that will be blinding or distracting to nearby residents, businesses, pedestrians, or motorists, nor will it produce a sound that is above ambient levels that could disturb nearby businesses or motorists. The digital billboard does not extend over a sidewalk or a high-usage driving lane, so it is not anticipated that it will create safety concerns regarding its operation and use near the public right-of-way. It will not produce any waste or noxious gases that would be offensive or unhealthy for the general public.

The nearest residence is on the opposite side of I-710, approximately 25 feet from the site.

vi. The proposed digital billboard, in addition to its aesthetic treatment, provides substantial public benefits that would not otherwise accrue to the public in the absence of its installation. The digital billboard will offer the potential for a source of revenue and other public benefits, such as advertising for immediate emergency and community messaging for the City, County, and State agencies. The project also involves the removal of outdated signs and will enhance the visual appearance along the freeway.

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Resolution 2024-48

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SECTION 3 . In light of the above findings and further testimony and documentation provided at the public hearing to consider approval of the Proposed Project described in the Agreement, the City Council hereby approves the Lease and Relocation Agreement (Exhibit A) and authorizes its execution and all actions necessary to comply with its terms.

SECTION 4. The Mayor, City Manager, and City Clerk or their designees are authorized and directed to take such actions and execute such documents and certifications as may be necessary to implement and affect execution, recordation, and enforcement of this Resolution for the Agreement.

SECTION 5. Pursuant to Government Code Section 65868.5, the City Clerk of the City shall record a copy of said Agreement with the County Recorder within ten (10) days after the Mayor’s signing of the Agreement.

PASSED, APPROVED, AND ADOPTED this 13th day of November 2024.

CITY OF BELL:

__________________________
Ali Saleh, Mayor
APPROVED AS TO FORM:

______________________________
Dave Aleshire, City Attorney

CERTIFICATE OF ATTESTATION AND ORIGINALITY

I, Angela Bustamante, City of the City of Bell, hereby attest to and certify that the foregoing resolution is the original resolution adopted by the Bell City Council at its regular meeting held on the 13
th day of November 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Angela Bustamante, City Clerk

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DIGITAL BILLBOARD LEASE AND RELOCATION AGREEMENT
This Digital Billboard Lease and Relocation Agreement (this “Agreement” or “Lease”) is made and entered into as of ____________, 202 4 (the “Effective Date ”), by and between the CITY OF BELL, a municipal corporation (“CITY”), and OUTFRONT MEDIA LLC, a Delaware limited liability company (“LESSEE”) upon the terms and conditions set forth below.

RECITALS
A. CITY owns that certain real p roperty (the “Property”) legally described and depicted in Exhibit A-1, and located in the City of Bell, County of Los Angeles, State of California, in proximity to the 710 Freeway;
B. Interstate 710 is a heavily traveled route for commuters, tourists, and commercial vehicles traveling through the community daily to reach various destinations in Southern California and the State of California;
C. The CITY has determined tha t advertising on the Digital Billboard (as defined below) is in the CITY’s best interest and LESSEE is willing to make all commercially reasonable efforts to obtain the State Approvals (as defined in Recital P below) for the construction and operation of t he Billboar d Project (as defined below). As used herein, the terms (i) “Digital Billboard” means that certain two -sided LED electronic sign panel, as shown on the depictions attached hereto as Exhibit B, which is to be attached, subject to the terms and co nditions of this Lease, to the Sign Structure; (ii) “Sign Structure” means the portion of the Billboard Project other than the Digital Billboard, and it includes all ancillary equipment and utilities installed on the Premises (as defined in Recital E below ) by LESSEE in connection with the construction and operation of the Billboard Project, which is more particularly described in Exhibit B attached hereto and incorporated herein ; and (iii) “Billboard Project ” means, collectively, the Digital Billboard and Sign Structure that LESSEE will construct on the Premises in accordance with all State Approvals (as defined in Recital P below), the Permits (as defined in Section 3.6 below), the plans attached hereto as Exhibit B, and the criteria set forth in this Agreement.

D. The City of Bell City Council has determined that it is in the best interests of CITY, and for the common benefit of the citizens residing in the CITY, to enter into this Agreement with LESSEE for the construction, operation, and maintenance of the Billboard Project on the Premises; E. CITY desires to lease to LESSEE, and LESSEE desires to lease from CITY, a portion of the Property, as more particularly described and depicted in Exhibit A-2, as attached hereto and incorporated herein (the “Premises”) for purposes of the Billboard Project pursuant to the terms and conditions of this Agreement.

F. CITY has determined that the Billboard Project may be constructed only as part of a billboard relocation that would result in the removal of four (4) existing billboards along the 710 Freeway, as set forth on Exhibit C, attached hereto (the “Removed Billboards”), which Removed Billboards are not located on any property owned by the City; G. Section 5412 of the California Outdoor Advertising Act (Business and Professions Code Section 5200 et seq.) (the “COAA” or “Outdoor Advertising Act”) notes that it is the policy

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of the state of California to encourage local entities and owners of existing billboards to enter into relocation agreements that allow local entities to continue development in a planned manner without expenditure of p ublic funds, while allowing the continued maintenance of private investment and a medium of public communication;
H. In implementation of Section 5412 of the Outdoor Advertising Act, CITY adopted Section 17.84.064 of the Bell Municipal Code pursuant to Ordinance No. 1278, which provides for the relocation of billboards, in order to reduce what CITY determined was an excessive amount of billboards of varying shapes and sizes, while recognizing that billboards can provide important information to the public for a variety of purposes;
I. The provisions of Section 17.84.064 allow CITY to continue d evelopment in a planned manner by implementing planning and zoning goals aimed at limiting the time, place, and manner of billboard placement, thereby addressing concerns relating to traffic safety and aesthetics, as memorialized in Ordinance No. 1278;
J. The California Department of Transportation (“CalTrans”) is the state agency responsible for the regulation of outdoor advertising displays and implementation of the Outdoor Advertising Act;
K. This Agreement is intended to qualify as an agreement under the Bell Municipal Code Section 17.84.064 and as a relocation agreement under the Outdoor Advertising Act Section 5443(b);
L. This Agreement is intended to provide for the removal of a billboard on a landscaped freeway segment prior to operation of the Digital Billboard, followed by the removal of three additional billboards within three years of commencement of this Agreement; M. LESSEE would not remove the foregoing four (4) existing billboards but for the benefits received under this Agreement;
N. Upon removal of the aforementioned existing billboards along the landscaped freeway segment , there will be no outdoor advertising displays within 500 feet of the Digital Billboard;
O. CITY finds that removal of multiple, existing billboards with a single modern outdoor advertising display would co nfer aesthetic and traffic safety benefits on CITY and its residents, thereby accomplishing important planning and zoning goals that benefit the public welfare and allow CITY to continue development in a planned manner, as follows: (1) the proposed modern electronic technology in outdoor advertising displays will allow for the incorporation of controls on brightness levels and bulb direction that minimize ambient light, reduce sky glow, and result in de minimis light intrusion beyond 250 feet (to a point that light increases generally fail to register on light meters beyond this distance); (2) a mod ern structure would eliminate sources of potential blight within CITY and would operate in a more appropriate location; (3) the replacement of aging billbo ard signage with a modern electronic display will serve the public interest by allowing CITY to continue its development in a planned manner and promoting business and commerce within the CITY, and will result in an overall reduction of billboards along the surface streets in CITY; (4) allow CITY a means to broadcast public service announcements on the Digital

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Billboard on a space -available basis; provide for a place -making improvement through the incorporation of a CITY logo as part of the design of the Di gital Billboard; and (5) provide a revenue stream for potentially two decades through a revenue -share component, as provided for under this Agreement that will allow CITY to fund public programs and otherwise address public needs;
P. This Agreement is conditioned upon and subject to LESSEE’s prior obtainment of any and all required entitlements and approvals from the CITY (collectively, the “Entitlements”), including certain approvals required under the California Environmental Quality Act (Public Resources Code Sections 2100 et seq.) (“CEQA”), for LESSEE’s proposed construction, use, and operation of the Digital Billboard and the Billboard Project; and (ii) any and all required approvals from applicable State agencies (including CalTrans) that may be necessary in order to allow for the construction and installation of the Digital Billboard and Billboard Project on the Premises (collectively, the “State Approvals”); and
Q. CITY and LESSEE have previously entered into that certain Deposit and Reimbursement Agreement, dated as of ____________, 2023 (the “ Reimbursement Agreement”), which provides for, among other things, LESSEE 's payment and reimbursement obligations for all reasonable CITY costs incurred in connection with the review and approval of the Billboard Project, Removed Billboards, Entitlements, CEQA approvals for same, and negotiation of this Agreement.

NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties incorporate the Recitals set forth above and agree as follows:

AGREEMENT
ARTICLE 1. PREMISES

1.1. Subject to the terms and conditions of this Agreement, CITY hereby agrees to lease to LESSEE and LESSEE agrees to lease from CITY the Premises. This Agreement is subject to the terms, covenants and conditions hereinafter set forth, and LESSEE covenants, as a material part of the consideration for this Agreement, to keep and perform each and every term, covenant and condition of this Agreement.

1.2. Commencing on the Effective Date, CITY hereby grants to LESSEE the right to access and use any portion of the Property outside of the Premises for (a) any and all purposes in connection with the design, construction, maintenance and repair of the Billboard Project, and (b) any other legally permitted use consistent with this Lease.

ARTICLE 2. TERM

2.1. Commencement Date . Th is Agreement shall be effective as of the Effective Date (as defined above); provided however, the terms contained herein regarding the operation of the Billboard Project shall commence upon the date on which the Building Divisi on of the CITY completes its final inspection following construction of the Billboard Project (the “ CITY Final Approval”) (which shall follow the date on which LESSEE receives all State Approvals necessary

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for the operation of the Digital Billboard), thereby permitting the Digital Billboard to be operational for commercial advertising as contemplated under this Agreement (the “Commencement Date”), and shall continue in effect for a period of ten (10) years from the Commencement Date (the “Initial Term”), subject to one (1) Renewal Term (as defined below) for an additional period of ten (10) years pursuant to Section 2.2 below (the Initial Term, and Renewal Term, as applicable, the “Term”).

2.2. Automatic Renewal.

2.2.1. Upon the expiration of the Initial Term , this Agreement will automatically renew for an additional pe riod of ten (10) years (“Renewal Term”), unless either (i) terminated by the CITY pursuant to the terms hereof, or (ii) LESSEE delivers to City written notice of nonrenewal at least ninety (90) days prior to the expiration of the Initial Term. LESSEE’s notice of nonrenewal shall be delivered to the City in the manner otherwise required for notices hereunder.

2.2.2. If LESSEE holds over on the Premises after t he expiration of the Initial Term or any Renewal Term, such holding over will be construed to be only a tenancy from month to month, subject to all the covenants, conditions and obligations contained in this Agreement that applied immediately prior to expi ration of the Term . If LESSEE does hold over on the Premises , then LESSEE agrees to pay City as monthly rental an amount which is equal to one-twelfth (1/12th) of the annual MAG (as defined below) plus Percentage Rent (as defined below) times 125% paid by LESSEE to City during the last year of this Agreement.

2.3. Obligations after Term. Upon the expiration or earlier termination of this Agreement, both parties shall be relieved of any further obligations hereunder (except for those duties or obligations accruing prior to such expiration or earlier termination, and except for those duties or obligations which expressly survive the expiration or earlier termination of this Agreement), although each party shall continue to have available all remedies for any b reach of this Agreement occurring prior to the date of expiration or earlier termination. Within ninety (90) days following the expiration or earlier termination of this Agreement, LESSEE shall remove any and all above-grade portions of the Billboard Project on the Premises and any other structures installed and/or owned by it excepting landscaping and related irrigation equipment, or other aesthetic improvements made by LESSEE to the Premises. The remaining below -grade portions of the Billboard Project any other structures installed and/or owned by LESSEE shall not be deemed an occupancy of the Premises by LESSEE or give rise to any rental or other obligation.

2.4. Termination Prior to the Commencement Date.

2.4.1. LESSEE may terminate this Agreement on thirty (30) d ays’ written notice in the event that either: (i) LESSEE reasonably determines that it will be unable to secure or maintain any required Permit (as defined below) or that any federal, state or local statute, ordinance, regulation or other governmental action precludes or materially limits use of the leased Premises for outdoor advertising purposes; or (ii) any governmental approvals related to the Billboard Project are legally challenged and remain unresolved at the time of notice of termination from LESSEE, including, but not limited to, any challenges under CEQA.

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2.4.2. CITY may terminate this Agreement on thirty (30) days ’ written notice in the event that the Commencement Date does not occur within twelve (12) months after the date when LESSEE receives the State Approvals necessary for the operation of the Billboard Project, and/or in the event of any default by LESSEE that remains uncured for a period of sixty (60) days following written notice from the non-defaulting party.

2.5. Termination after Commencement Date.

2.5.1. At any time after the Commencement Date, LESSEE may terminate this Agreement effective thirty (30) days after LESSEE gives the CITY written notice if (i) the view of LESSEE’s Digital Billboard on the Premises becomes entirely or partially obstructed, including without limitation, by an object or growth on the Property or on any neighboring property which impedes or reduces the view of the Digital Billboard from Interstate 710; (ii) there occurs a material diversion of traffic from, or a change in the direct ion of, traffic past the Digital Billboard ; (iii) LESSEE is prevented from maintaining electrical power to the Premises or illuminating its Digital Billboard; (iv) maintenance will be materially hampered or made unsafe due to conditions caused by nearby properties, land uses, or utilities; (v) LESSEE fails to receive, or loses, required governmental permits necessary to operate the Digital Billboard, in a manner which prohibits the operation of th e Digital Billboard ; (v i) LESSEE cannot safely use the Premises to renovate, operate, maintain, repair, or improve the Digital Billboard because of a non-remediable condition, and LESSEE did not cause the condition; (vii) use of the Digital Billboard for its intended purpose is prevented or materially limited by law, or LESSEE is required by any court or other governmental entity, for reasons other than eminent domain, to remove the Digital Billboard from the Premises; ( viii) the CITY is in default of its o bligations under this Agreement beyond any applicable notice and cure periods; or ( ix) the Digital Billboard is damaged or destroyed to the extent that the cost to repair or replace the damage or destruction of the Digital Billboard exceeds fifty percent (50%) of its fair market value immediately before it is damaged or destroyed.

2.5.2. If any of the circumstances identified in Section 2.5.1 occurs, then, at its discretion and in lieu of termination, LESSEE may request that the CITY negotiate a reduction in the Rent to an amount that reasonably reflects the diminished value of the Digital Billboard to LESSEE, and in such case, the parties shall negotiate in good faith regarding the terms of such reduction in Rent.

2.5.3. If LESSEE notifies CITY in writing that any obstruction exists which obstruction impedes or reduces the view of the Digital Billboard from Interstate 710 and which did not exist as of the Ef fective Date (each such obstruction, an “Obstruction”), LESSEE will have the right, in addition to all other remedies granted order this Agreement to (a) equitably reduce the MAG, or (b) terminate this Agreement in accordance with the terms set forth in Section

2.5.1 above. Notwithstanding the foregoing , if an Obstruction is located on property owned by CITY, then, prior to having the rights set fort h in the foregoing sentence, LESSEE shall provide notice to CITY identifying such Obstruction, in which event, LESSEE shall have the rights in the foregoing sentence if CITY fails to remove such Obstruction within thirty (30) days of CITY ’s receipt of such notice from LESSEE (the “ Obstruction Cure Period ”). If an Obstruction is located on neighboring property not owned by the CITY, then LESSEE shall provide notice to CITY identifying such Obstruction, and CITY will use best efforts to cause the removal of such Obstruction, provided that the Obstruction Cure Period may be extended up to ninety (90) days so

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long as CITY has commenced its efforts to remove the Obstruction and continues diligently to pursue the removal. LESSEE’s rights under this Section are i n addition to any other remedies it may have under this Agreement.

ARTICLE 3. RENT

3.1. Minimum Annual Guarantee . Each year during the Term of this Lease, LESSEE shall pay CITY the Minimum Annual Guarantee (the “MAG”) in the initial amount of One Hundred and Forty-Thousand Dollars ($140,000) per year, starting on the Commencement Date and ending on the expiration of the Term in accordance with the terms set forth in this Section 3.1.

Term Rent
Years 1-5 $140,000 annually
Years 6-10 $154,000 annually
Years 11-15 $165,000 annually
Years 16-20 $185,000 annually

3.2. Manner of Payment. An annual prorated share of the MAG shall be due and payable on a calendar quarterly basis, commencing within forty-five (45) days of the Commencement Date and within ten (10) days following the beginning of each calendar quarter occurring thereafter without notice, demand, offset, or deduction. LESSEE shall remit the MAG to CITY at the address designated in ARTICLE 20. , or at such other address as CITY may des ignate from time to time in writing to LESSEE for the payment. For any portion of the Term that is less than a full calendar quarter, the MAG shall be prorated based on the number of days in the Term occurring during such calendar quarter and actual number of days in such calendar quarter.

3.3. Application of Payments. All payments received by CITY from LESSEE will be applied to the oldest payment obligation owed by LESSEE to CITY. No designation by LESSEE, either in a separate writing, on a check or money order, or otherwise will modify this Section 3.3 or have any force or effect.

3.4. Percentage Rent.

3.4.1. Annual Percentage Rent. To the extent that forty percent (40%) of the Gross Revenues (as defined below) for a completed Lease Year (as defined below) exceeds the MAG for such Lease Year (the difference being referred to herein as “Percentage Rent”), LESSEE shall pay to CITY, in addition to the MAG and to the extent applicable, the Percentage Rent. The term “Lease Year” means the consecutive 12-month period commencing on the Commencement Date, and each consecutive 12 -month period occurring thereafter during the Term. The term “Gross Revenues” shall mean all revenue actually received by LESSEE in connection with the sale of advertising space on the Digital Billboard less a standard marketing fee of 16.67%, if incurred, and all additional revenue as set forth in Section 3.7 below. For the purposes hereof, any income described in this definition will not include the value of any CITY Usage pursuant to Section 4.7.

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3.4.2. Payment of Percentage Rent. Percentage Rent shall be paid once annually, within thirty (30) days after the end of each year of the Term (but following the Commencement Date) or any Renewal Term. LESSEE shall, with the submission of its Percentage Rent payment, provide the CITY with a copy of all relevant information and reasonable accounting/records documenting its revenue with respect to the Premises and Digital Billboard . LESSEE shall keep records related to its business operations, including but not limited to its calculations of its Gross Revenues in a commercially reasonable form and detail, and in accordance with standard practices used in the outdoor advertising industry. All docume nts, books, and accounting records kept by LESSEE relating to revenue generated by the Billboard Project under this Agreement shall be open to inspection by CITY or its authorized representative at LESSEE ’s office located at 1520 Cahuenga Blvd., Los Angeles, California, during reasonable business hours during the Term and for one (1) year thereafter. CITY may only conduct such inspection/audit(s) once during each year of the Term of this Agreement and once after the termination of the Term by a n authorized representative of the CITY and/or a third party certified public accountant designated by CITY, provided such account is not paid on a contingency fee basis, and provided CITY gives LESSEE prior written notice of such inspection/audit(s). Such documents s hall remain with LESSEE and their contents shall be deemed confidential and shall not be disclosed by CITY , or any of its authorized representatives or a third party certified public accountant, other than to its staff or legal counsel, except as needed to enforce the terms of this Agreement. In the event that the CITY conducts an audit of the documents, books and accounting records relating to revenue generated by the Billboard Project under this Agreement, and CITY discovers that LESSEE has understated Gross Revenues in an amount that is equal to or greater than three percent (3%) different than what LESSEE reported to CITY, LESSEE shall reimburse CITY for the reasonable out -of-pocket cost of the audit paid by CITY to third party consultants; otherwise CITY shall pay costs of the audit.

3.5. One-Time Payment . LESSEE shall pay CITY a one -time, non -refundable amount of Thirty Thousand Dollars and no/100ths Dollars ($30,000.00) (“Implementation Fee”) pursuant to the terms of the Reimbursement Agreement. The Implementation Fee will be paid on the date LESSEE has obtained the CITY Final Approval.

3.6. Permit Acquisition. LESSEE shall make all commercially reasonable efforts to timely obtain the required Permits. The term “Permit(s)” as used herein shall mean all local and state governmental permits and approvals and any other required permits and approvals necessary for the development and operation of the Billboard Project, including, without limitation, the Entitlements, CEQA approvals, and those required under the COAA; provided, no Permit shall be deemed to be received by, or issued to, LESSEE if (A) there exists any unexpired appeal, contest, challenge or review periods for the issuance of such Permit, (B) an appeal, contest, cha llenge (including, without limitation, a Project Approval Challenge (as defined below)) or review has been filed with respect to such Permit and the same has not been resolved on terms satisfactory to LESSEE in its good faith business judgment, or (C) such Permit is only available with conditions unacceptable to LESSEE in its good faith business judgment. The term “Project Approval Challenge” shall mean the initiation by any individual person or entity of any legal or equitable action or proceeding to chall enge the validity of any provision of this Lease, or the validity or implementation of any Permit.

3.7. Additional Revenue . Following the Commencement Date, LESSEE may sublease the Premises for telecommunications facilities required to support the Billboard Project with the

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written approval of the CITY , such approval not to be unreasonably withheld or delayed. All revenue from LESSEE’s sublease(s) for telecommunications facilities will be considered part of the Gross Revenues . Such telecommunications facilit ies shall not interfere with the CITY ’s Telecommunications Facilities as described in Section 4.8. Upon installation, such telecommunication facili ties will become a part of the Billboard Project. LESSEE shall immediately remove any telecommunication facilities that interfere with the CITY ’s Telecommunication Facilities, as determined by the CITY. If LESSEE installs antenna or wireless communication for cellular, wi -fi or other communication devices pursuant to this Section 3.7, CITY shall receive as additional revenue of the collected Gross Revenues subject to the revenue share provision as set forth in Section 3.4.

ARTICLE 4. USE

4.1. LESSEE shall use the Premises for the sole purpose of erecting, constructing, installing, maintaining, securing, repairing, improvement, operating, and other lawful purposes related to outdoor advertising and LESSEE ’s advertising Digital Billboard thereon, including supporting structures; foundations; illumination facilities and connections; utilities, wires, poles, cables, conduits, and pipes over or under the Premises from a public right-of-way to the Digital Billboard; back up panels; service ladders; cameras; CITY name and/or logo described in Section 4.2 below; other appurtenances and ancillary equipment; and for other purposes explicitly identif ied in this Agreement. Notwithstanding anything in this Agreement to the contrary, during the Term of this Agreement, LESSEE will be permitted access to the Premises, including without limitation rights of ingress and egress, for (a) any and all purposes listed in this Agreement; and (b) any other legally permitted use consistent with this Agreement. Notwithstanding anything to the contrary in this Agreement, it is understood and agreed that the Billboard Project shall at all times, whether during construction, or otherwise during the Term hereof or thereafter, be and remain the sole and exclusive property of LESSEE no matter what their degree of attachment to the Premises.

4.2. LESSEE and CITY acknowledge and agree that the CITY ’s name and/or logo shall be incorporated into the Digital Billboard as part of the final design to the extent permitted by State law. The final design for the Digital Billboard (and construction of same) shall be substantially consistent with the plans for the Digital Billboard as depicted in Exhibit B and approved under this Agreement; any minor modifications to such plans shall approved in writing by the City Manager of the CITY, which approval shall not be unreasonably withheld or delayed.

4.3. The parties acknowledge that LESSEE’S ability to use the Premises is dependent upon LESSEE’s obtaining all necessary State Approvals. Subject to the terms of this Agreement, CITY agrees to cooperate with LESSEE as to LESSEE’s obtaining such State Approvals, and any other further approvals from federal agencies, provided however, nothing herein shall limit the CITY’s discretionary / regulatory authority with respect to the permitting required for the Billboard Project and the enforcement of any applicable laws or regulations.

4.4. LESSEE is responsible for ensuring that the Digital Billboard complies with all requirements of the Permits, the COAA and other regulations of CalTrans. LESSEE agrees that upon request by the CI TY, LESSEE will provide updates and any reasonably requested documentation relating to any required CalTrans permits and any status on the issuance of the CalTrans permits. During the Term, LESSEE shall perform all obligations under the CalTrans

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permits at no cost to CITY. LESSEE shall have twelve (12) months from the Effective Date to obtain the CalTrans permits , State Approvals, and the CITY Final Approval for the Billboard Project. If LESSEE has not received such approval at the end of such twelve (12) month period, and provided that LESSEE has diligently pursued the CalTrans permits / State Approvals / CITY Final Approval, LESSEE shall have an option to extend this Agreement for an additional six (6) months to obtain the CalTrans permits / State Approvals / CITY Final Approval for the Billboard Project. If, following such additional six (6) month extension period, LESSEE is still unable to obtain the CalTrans permits / State Approvals / and CITY Final Approval for the Billboard Project, LESSEE may request an additional extension, subject to the mutual written agreement of CITY and LESSEE for such additional extension of time (which request for such extension shall be subject to the CITY’s sole discretion) and, if no such agreement of the parties is rea ched, either party may terminate this Agreement.

4.5. LESSEE shall be responsible, at its sole cost and expense, for completing construction of all improvements necessary for the installation and continuous operation of the Billboard Project, including all Permit costs (including all costs associated with obtaining State Approvals), regulatory charges, CITY -required fees including planning fees, public works fees, CEQA fees, and building permit fees, and the provision of electricity to the Digital Billboard.

4.6. Duty to Maintain Premises . LESSEE shall, at its own expense, maintain the Billboard Project and Premises in a commercially reasonable manner during the Term hereof. LESSEE covenants to ensure the diligent maintenance and care for the Premises and the Billboard Project constructed on the Premises in good working order. The term “Diligent maintenance and care” means reasonable upkeep which employs the standard of care necessary to meet all requirements of applicable local ordinances and regulations, subject to the terms and conditions set forth in ARTICLE 5. below. Notwithstanding the foregoing, CITY shall be responsible for any landscaping of the Premises and related ma intenance and care of such landscaping, including the costs thereto, if applicable . In the event that LESSEE does not maintain the Premises as so required, and such failure continues for thirty (30) days after written notice thereof, CITY has the right, but not the obligation, to (i) enter the Premises and perform the maintenance, and LESSEE shall reimburse CITY for the reasonable costs it incurs in doing so within thirty (30) days of written notice to LESSEE, or (ii) pursue other remedies pursuant to Section 7.2 of this Agreement.

Notwithstanding the above, (a) if more than ten percent (10%) of the display is not operational, the entire display shall be turned off and remain black until the display is repaired, and (b) LESSEE shall comply with State law regarding the limitation of light or glare or such other standards as adopted by the Outdoor Advertising Association of America, Inc. (OAAA), including the 0.3 foot- candles limitation over ambient lig ht levels at a distance of 250 feet. Upon any reasonable complaint by City Manager or designee, Developer shall perform a brightness measurement and display using OAAA standards and provide City with the results of same within five (5) days of City complaint.

4.7. CITY Usage. CITY may, from time to time, request to place advertising on the Digital Billboard at no cost to CITY, provided that (a) CITY is limited to no more than one (1) “click” of display time per calendar year (which, for practical purposes means, that the CITY shall have the right to up to approximately 438,000 messages to be displayed upon the Digital Billboard (each for an eight second period), in each calendar year during the Term), and (b) commercial advertising time on the Digital Billboard is unsold and available (“CITY Usage ”). For purposes of this

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Agreement, a “click” refers to an eight (8) second display of a single advertisement (“Ad”) during each rotation of nine (9) Ads displayed on the Digital Billboard in a continuous cycle. Conte nt displayed as CITY Usage will be displayed evenly throughout a twenty -four (24) -hour day.

Subject to the terms of this Agreement, CITY may use such time to promote any purpose that in its sole discretion determines best serves the needs of CITY and residents, including but not limited to advertising CITY events and programs. CITY will submit “camera ready” artwork to LESSEE, at no cost to LESSEE, for display purposes. CITY agrees that for any CITY Usage pursuant to this Section: (i) CITY will provide LESSEE with prior written notice of its desire for CITY Usage; (ii) CITY will provide LESSEE with the copy or text of such messages not less than ten (10) business days prior to the date such messages are to appear on the Digital Billboard; and (iii) CITY Usage shall be limited to messages for the civic and public purposes described in this Section and will not be used directly or indirectly for any types of messaging or advertising which LESSEE would otherwise be able to sell to third parties in the ordinary course of LESSEE ’s business. CITY represents and warrants that all advertising materials and content supp lied by CITY to LESSEE for display in connection with CITY Usage, are owned or duly licensed by CITY and do not infringe or misappropriate the rights of any other person or entity; comply with all applicable federal, state, and local laws, rules and regula tions, and any industry codes or rules by which the parties may be bound and do not contain any obscene, libelous, slanderous or otherwise defamatory materials or refer in an offensive manner to the gender, race, or ethnicity of any individual or group; ar e not false; and do not infringe upon any copyright, trademark, or other intellectual property or privacy right of any third party. CITY hereby agrees to indemnify, protect, defend and hold harmless LESSEE and its officers, employees, agents, and represent atives, and each of their successors and assigns, against any and all claims, judgments, causes of action, damages, penalties, costs, liabilities, losses, damages, fees and expenses arising out of or in connection with the CITY Usage, including but not lim ited to, any claim for defamation, or infringement of any copyright, trademark, or other intellectual property or privacy right and reasonable attorneys’ fees, expenses, and liabilities incurred in defending any such claims, any action, or proceeding brought thereon.

4.8. Reservation for CITY Telecommunications Facilities.

4.8.1. CITY reserves the right to access and install on the Premises infrastructure and related equipment for telecommunications, surveillance or other video equipment that the CITY deems necessary for the public health, safety and welfare (“CITY’s Telecommunications Facilities”). Installation and maintenance of CITY’s Telecommunications Facilities shall be at no cost to LESSEE, and the CITY ’s Telecommunications Facilities shall not be installed on the Digital Billboard nor interfere with, hinder, or in any way affect the operation, use, and maintenance of the Premises by LESSEE. Other than in the case of emergency, LESSEE shall provide notice at least five (5) business days in advance of any work or any temporary interference to the CITY’s Telecommunications Facilities. CITY shall not perform any work on the Premises that would create any interference in the operation of the Digital Billboard unless LESSEE has approved the same, and in any event, any such work shall be performed at such hours to minimize the impact on LESSEE ’s operation of the Digital Billboard. Such other facilities proposed by LESSEE will require the CITY’s approval as set forth in Section 3.6 of this Agreement.

4.8.2. The CITY reserves the right for itself and others in the future to establish nonexclusive utility easements (including easements for construction, maintenance, repair,

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replacement and reconstruction) over, under, through or on the Premises in locations that will not unreasonably interfere with LESSEE ’s use of the Premises as contemplated by this Agreement.

CITY will be responsible for the maintenance or repair of the utility easements.

4.8.3. CITY agrees that if CITY does install the CITY ’s Telecommunications Facilities on the Premises, then CITY will be responsible for all design, permits and other approvals as well as all construction and maintenance of the CITY’s Telecommunications Facilities. In connection with the design, construction and operation of the CITY ’s Telecommunications Facilities, CITY agrees to indemnify, protect, defend, and hold harmless LESSEE and its officers, employees, agents, and representatives and each of their successors and assigns from and against any and all claims, judgments, causes of action, damages, penalties, costs, liabilities, losses, damages, fees, and expenses, including all costs, reasonable attorneys’ fees, expenses and liabilities incurred in the defense of any such claim or any action or proceeding brought thereon, arising at any time during or after the Term as a direct result of the CITY’s Telecommunications Facilities.

4.9. Discount Provision. LESSEE shall offer a te n percent (10%) discount off its applicable rates for display of advertising to any current, active member of the CITY ’s Chamber of Commerce, with a CITY business address. The discount shall not apply to any advertisement that promotes a product or service that is not locally produced or offered within the CITY limits, or that could be sold or obtained elsewhere.

4.10. Non-Operational Digital Billboard. If ten percent (10%) or more of the Digital Billboard screen is not operational, the entire screen shall display black until it is repaired by LESSEE.

4.11. Prohibited Use . LESSEE shall not utilize the Billboard Project to advertise smoking, vaping products, tobacco use, hashish, “gentlemen’s clubs,” adult entertainment, sexually-oriented materials, images and language, “obscene matter” as that term is defined in California Penal Code Section 311and any content restricted in the State Outdoor Advertising Act (“ODA”).

4.12. Emergency Notifications. At no cost to the CITY and as further consideration for the use and occupancy of Premises, LESSEE shall make the Digital Billboard available to CalTrans and the California Highway Patrol for purposes of “Amber Alerts ” and for emergency or disaster notifications by local, state or federal agencies such as Federal Emergency Management Agency (“FEMA”) messages. Such usage of the Digital Billboard shall not be deemed CITY Usage.

ARTICLE 5. PHYSICAL CONDITION OF PREMISES; WAIVER

5.1. Prior to taking possession of the Premises, LESSEE shall have the right to inspect the Premises at reasonable times, and shall be deemed to have accepted the Premises as being in good sanitary order, condition and repair. LESSEE shall, at LESSEE’s sole cost and expense, keep the Premises and any part thereof in good condition and repair. LESSEE shall remove any graffiti from the Billboard Project within five (5) business days of LESSEE’s receipt of written notice from CITY. CITY shall have no obligation what soever to alter, improve, or repair the Premises, or any part thereof, unless after the Effective Date of this Agreement, CITY materially changes the condition of the Premises in a manner that interferes with LESSEE’s use of the Premises, and the parties h ereto acknowledge and agree that CITY has made no representations to LESSEE respecting the existing condition of the Premises except as specifically set forth herein. LESSEE

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12 01135.0001/1030978.1
further agrees that it shall submit to CITY, prior to applying for any permits to renovate, reconstruct, improve, alter, or in any way modify the Premises, plans and specifications for CITY’s prior written approval.

5.2. LESSEE shall accept possession of the Premises, in their physical condition effective upon the Effective Date on an “as-is” basis with no warranty, express or implied, by CITY as to the condition of the soil, its geology, the presence of known or unknown physical defects or faults, its suitability for the use intended by the LESSEE, any onsite soils contamination, or any si milar matters. Notwithstanding the foregoing, LESSEE shall have no liability to CITY or any third party for any Hazardous Materials existing on the Premises prior to the date on which LESSEE first takes possession of the Premises. CITY represents and warrants to LESSEE that the Property does not contain any Hazardous Materials, and CITY has not placed, stored, released, transported, or otherwise used Hazardous Materials on or below the surface of the Property. The term “Hazardous Materials” means any and all pollutants, wastes, flammables, explosives, radioactive materials, hazardous or toxic materials, hazardous or toxic wastes, hazardous or toxic substances, carcinogenic materials or contaminants and all other materials governed, monitored, or regulated by any Federal, State or local Law or regulation, including the Comprehensive Environmental Response, Compensation and Liability Act, the Hazardous Substances Account Act, and/or the Resources Conservation and Recovery Act, together with asbestos, asbestos-containing materials, hydrocarbons, polychlorinated biphenyl ( “PCB”) or PCB -containing materials, petroleum, gasoline, petroleum products, crude oil or any fraction, product or by product thereof.

5.3. CITY shall, upon request and at LESSEE’s cost, provide to LESSEE copies of all reports, studies, surveys and other data and information regarding the Premises which is now available to CITY. CITY represents that it has no information disclosable pursuant to California Health and Safety Code § 25359.7(a).

ARTICLE 6. INSURANCE

6.1. Commercial General Liability Insurance . Throughout the Term, at LESSEE ’s sole cost and expense, LESSEE shall keep or cause to be kept in full force and effect, commercial general liability insurance against claims and liability for personal/bodily injury, death, or property damage arising from the use and occupancy of the Premises, providing protection of Two Million Dollars ($2,000,000.00) per occurrence and Four Million Dollars ($4,000,000) aggregate. Such insurance shall be primary to and not contrib uting with any other insurance, self -insurance or joint self - insurance maintained by CITY, and shall include the CITY as an additional insured.

6.2. Policy Form, Contents and Insurer . All insurance required by express provision of this Agreement shall be carri ed only by financially responsible insurance companies licensed to do business in the State of California with a current A.M. Best rating of no less than A:VII. All such policies shall contain language to the effect that: (1) the policies are primary and noncontributing with any insurance that may be carried by CITY; (2) the policies cannot be canceled or terminated except after such prior notice to CITY by the insurer as it customarily provides; (3) CITY and each of CITY’s elected officials, officers and employees are additional insureds for the commercial general liability policy thereunder; and (4) the required insurance applies separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer ’s

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liability. LESSEE shall furnish CITY certificates and endorsements evidencing the insurance.

LESSEE may effect for its own account any insurance not required under this Agreement.

6.3. Failure to Maintain Insurance; Proof of Compliance . LESSEE shall deliver to CITY, in the manner required for notices and copies of endorsements to all insurance policies required by this Agreement, within the following time limits: (1) For insurance required at the commencement of this Agreement, within ten (10) days after execution of this Agreement and prior to LESSEE’s occupancy of, or performance of any construction on, the Premises; (2) For insurance becoming required at a later date, at least ten (10) days before that requirement takes effect, or as soon thereafter as the requirement, if new, takes effect; (3) For any renewal or replacement of a policy already in existence, as soon as practical after the renewal or replacement.

ARTICLE 7. DEFAULT

7.1. By LESSEE. LESSEE will be in default under this Agreement upon occurrence of any of the following:

7.1.1. LESSEE is at any time in default in the payment of Rent (as defined below) or any other monetary sum called for by this Agreement for more than fifteen (15) days following LESSEE’s receipt of written notice from CITY; or

7.1.2. LESSEE is at any time in default in the keeping and performing of any of its other covenants or agreements herein contained, and should such other default continue for thirty (30) days after written no tice thereof from CITY to LESSEE specifying the particulars of such default, or if such other default is of a nature that curing such default will take more than thirty (30) days LESSEE has failed to commence such cure within such thirty (30) day period and to thereafter diligently pursue completion of such cure.

7.2. Remedies Upon LESSEE’s Default.

7.2.1. Upon the occurrence and during the continuance of any such default, in addition to any and all other rights or remedies of CITY hereunder, or by law or in equity provided, CITY may terminate this Agreement, at any time and in its sole discretion, effective thirty (30) days after CITY gives LESSEE written notice of termination.

7.2.2. Anything in this Agreement to the contrary notwithstanding, neither CITY nor LESSEE shall be liable to the other under or in connection with this Agreement for any consequential or punitive damages and each party waives, to the full extent permitted by applicable laws, any claim for consequential or punitive damages, and any claim for loss of bus iness or profits.

7.3. By CITY. CITY will not be in default under this Agreement unless CITY fails to perform obligations required of CITY within thirty (30) days after written notice is delivered by LESSEE to CITY specifying the obligation which CITY has failed to perform; provided, however, that if the nature of CITY’s obligation is such that more than thirty (30) days are required for performance, then CITY will not be in default if CITY commences performance within such 30 - day period and thereafter diligentl y prosecutes the same to completion. All obligations of CITY hereunder will be construed as covenants, not conditions.

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14 01135.0001/1030978.1

7.4. Remedies upon CITY’s default. If the CITY is in default under this Agreement beyond any applicable cure period, during the continuance of any such default, in addition to any and all other rights or remedies of LESSEE hereunder, or by law or in equity provided, LESSEE may terminate this Agreement, at any time and in its sole discretion, effective thirty (30) days after LESSEE gives CITY written notice of termination.

ARTICLE 8. COMPLIANCE WITH LAW
LESSEE shall not use the Premises nor permit anything to be done in or about the Premises which will in any way conflict with any federal, state or local law, statute, ordinance, or other governmental rule or regulation now in force or which may hereinafter be enacted or promulgated.

LESSEE will comply with all laws, statutes, ordinances and other governmental rules, regulations or requirements now in force or which may hereinafter be enacted or promulgated, relating to or affecting the condition, use or occupancy of the Premises, excluding structural changes not related to or affected by LESSEE ’s improvements or acts. The judgment of a court of competent jurisdiction or the admission by LESSEE in any action against LESSEE, whether CITY be a party thereto or not, that LESSEE has violated any law, statute, ordinance or any other governmental rule or regulation affecting the Premises shall be conclusive of that fact as between CITY and LESSEE.

ARTICLE 9. AUTHORITY OF PARTIES

9.1. Each party represents and warrants that the individual executing this Agreement on behalf of such party is fully authorized to execute and deliver this Agreement on behalf of such party and that this Agreement is binding upon such party in accordance with its terms.

9.2. The CITY hereby delegates to its CITY Manager, the authority to extend any time periods established by this Agreement for up to one (1) year if deemed necessary, in the CITY Manager’s sole and absolute discretion.

ARTICLE 10. WAIVER
The waiver by either party of any term, provision, covenant or condition herein contained shall not be deemed to be a waiver of such term, provision, covenant or condition on any subsequent breach of the same or any other term, provision, covenant or condition herein contained. The subsequent payment or acceptance of Rent hereunder shall not be deemed to be a waiver of any preceding breach by the party so acting, of any term, provision, covenant or condition of this Agreement, other than the payment or failure to pay the particular rental so paid or accepted, regardless of the aggrieved party’s knowledge of such preceding breach at the time of payment or acceptance of such rent.

ARTICLE 11. TIME
Time is of the essence of this Agreement and each and all of its pro visions in which performance is a factor.

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15 01135.0001/1030978.1
ARTICLE 12. FURTHER ASSURANCES
Each party will execute all additional documents or instruments and take all necessary action that either party reasonably considers necessary to carry out the proper purposes of this Agreement.

ARTICLE 13. FORCE MAJEURE

13.1. The term “Force Majeure Event” means a cause of delay that is not the fault of the party who is required to perform under this Agreement and is beyond that party ’s reasonable control, including the elements (including floods, earthquakes, windstorms, and unusually severe weather), fire, energy shortages or rationing, riots, acts of terrorism, war or war -defense conditions, acts of any public enemy, epidemics, pandemics, the actions or inactions of any governmental entity (excluding CITY ) or that entity ’s agents, litigation, labor short ages (including shortages caused by strikes or walkouts), and materials shortages.

13.2. If the performance of any act required by this Agreement or any cure to be performed by either CITY or LESSEE is prevented or delayed because of a Force Majeure Event, then the time for performance will be extended for a period equivalent to the period of delay, and performance of the act during the period of delay will be excused . An extension of time for any such Force Majeure Event will be for the period of the enforced delay and will commence to run from the time of the commencement of the cause, if notice by the party claiming such extension is sent to the other party within thirty (30) days of the commencement of the cause. Times of performance under this Agreement may also be extended in writing by the mutual agreement of CITY and LESSEE.

ARTICLE 14. REMOVED BILLBOARDS

14.1. The Removed Billboards are more particularly described in Exhibit C, attached hereto and incorporated herein, which shows the billboard on a landscaped freeway segment that will be removed prior to operation of the Digital Billboard and three additional billboards that will be removed within three (3) years of the Commencement Date of this Agreement. If LESSEE fails to timely remove all of the Removed Billboards pursuant to the terms of this Section 14.1, CITY may, at its option, elect to remove the outstanding Removed Billboards by providing thirty (30) days advanced written notice to LESSEE of its election and seek reimbursement from LESSEE of the costs of removal, which will be paid within thirty (30) days of LESSEE'S receipt of the CITY'S written demand.

14.2. LESSEE will permanently remove each of the Removed Billboards . CITY and LESSEE agree that LESSEE may toll the demolition and removal of the Removed Billboards in the event that there is a Project Approval Challenge. The tolling period shall last until the date upon which any legal challenge is resolved such that LESSEE may proceed with construction and operation of the Digital Billboard, unless this Agreement is otherwise terminated as set forth in this Agreement, in which case the obligation to demolish and remove the Removed Billboards shall become null and void. LESSEE hereby acknowledges and agrees that no claim for relocation or removal arising under California Government Code Section 7260 or other applicable law shall be submitted to CITY with respect to the Removed Billboards.

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ARTICLE 15. ALTERATIONS AND ADDITIONS
Other than as expressly required or permitted herein, LESSEE shall not make or suffer to be made any alterations, additions, or improvements in or to or about the Premises or any part thereof without the written consent of CITY. Excepting only the installation of the Billboard Project and related equipment (which shall remain the property of LESSEE), any alterations, additions, or improvements in, to, or about the Premises shall, on the expiration or earlier termination of this Agreement, become a part of the realty and belong to CITY and shall be surrendered with the Premises. For avoidance of doubt, any below ground equipment installed by LESSEE shall become property of the CITY. Except as provided in Section 4.6, any alterations, additions, or improvements to the Premises desired by LESSEE, other than those expressly required or permitted herein, shall require CITY ’s prior written consent, and shall be made by LESSEE at LESSEE’s sole cost and expense and in a good and workmanlike manner, free and clear of all liens and claims of liens for labor, services, materials, supplies, or equipment performed on or furnished to the Premises, in accordance with Section 4.6 hereof. If LESSEE makes any alterations to the Premises as provided herein, the alterations shall not be commenced until fifteen (15) days after CITY has received notice from LESSEE stating the date that construction of the alterations is to commence, so that CITY can post an appropriate notice of non -responsibility. Upon completion of the alterations to CITY’s satisfaction, a notice of completion shall be recorded.

ARTICLE 16. EMINENT DOMAIN
Either party hereto shall have the right, at its option, to terminate this Agreement, if any entity that by law is authorized to exercise the power of eminent domain acquires by using the power of eminent domain or through negotiations under the threat of using the power of eminent domain more than fifty percent (50%) of the Premises or such portion that LESSEE cannot make materially full use of the Premises for the purpose specified herein in paragraph 4.A (the “Condemned Property”). Termination under this Section w ill occur on the date the condemning entity obtains possession of, or title to the Condemned Property, whichever occurs first. Within fifteen (15) business days after the termination date, CITY shall: (a) refund to LESSEE any pre-paid Rent for the unexpired portion of the Term; and (b) relinquish any interest it may have in the Caltrans permits and execute any documents needed to confirm that LESSEE is the sole owner of the CalTrans permits. If termination occurs under this Section, then LESSEE and CITY m ay each independently seek to recover from the condemning entity all compensation and other remedies provided by law for the interests taken from them; however, CITY may not seek or recover compensation for LESSEE ’s lost interests, and LESSEE may not seek or recover compensation for CITY’s lost interests.

ARTICLE 17. ESTOPPEL CERTIFICATE
CITY or LESSEE shall, at any time and from time to time upon not less than thirty (30) days’ prior written notice from the other party, execute, acknowledge and deliver to the other party a statement in writing (a) certifying that this Agreement is unmodified and in full force and effect or, if modified, stating the nature of such modification and certifying that this Agreement, as so modified, is in full force and effect, and the date to which the Rent and other charges are paid in advance, if any, and (b) acknowledging that there are not, to the knowledge of the party delivering the estoppel, any uncured defaults on the part of the other party hereunder, or specifying such

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17 01135.0001/1030978.1
defaults if any are claimed. Any such statement may be relied upon by any prospective purchaser or encumbrancer of all or any portion of the Premises.

ARTICLE 18. ATTORNEYS’ FEES
In the event any action or proceeding is brought between the parties hereto seeking interpretation or enforcement of any of the terms and provisions of this Agreement, the prevailing party in such action shall be entitled to have and to recover its actual attorneys ’ fees and other expenses in connection with such action or proceeding, in addition to its recoverable court costs, from the losing party.

ARTICLE 19. SUCCESSORS
Subject to the provisions of this Agreement with respect to assignment and subletting, each and all of the covenants and conditions of this Agreement shall be binding on and shall inure to the benefit of the heirs, administrators, executors, successors and assigns of the respective parties.

ARTICLE 20. NOTICES
Any notice or payment required or permitted to be given hereunder shall be in writing and may be personally served, sent by a nationally recognized overn ight courier service or by United States mail, certified or registered, return receipt requested, with postage prepaid and properly addressed, or sent by electronic mail (provided a copy of the notice sent by overnight courier or mail pursuant to the terms herein). Such notice or payment shall be deemed to have been given: (a) if personally served, on the same day that such personal service is made; (b) if sent by overnight delivery service, on the next succeeding business day; (c) if deposited in the United States mail, on the third (3rd) business day thereafter , or (d) if delivered by electronic mail, on the date of transmission .

For the purposes hereof, the addresses of the parties hereto (until notice of a change thereof is given as provided in this ARTICLE 20) shall be as follows:

CITY: City of Bell
6330 Pine Avenue
Bell, CA 90201
Attn: City Manager
Telephone: 323-588-621, ext. 2617
Email:

With a copy to: City Attorney
David Aleshire
Aleshire & Wynder, LLP
1 Park Plaza, Suite 1000
Irvine, California 92614
Telephone: 949-223-1170
Email: [email protected]
LESSEE: Outfront Media LLC
1520 Cahuenga Blvd.

Los Angeles CA 90028

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18 01135.0001/1030978.1
Telephone: (323) 276-7255
Attn: Katie Metz
Email: [email protected]
With a copy to: Lessee’s Counsel
Sean Marciniak
Hanson Bridgett LLP
425 Market Street, 26th Floor
San Francisco, CA 94105
Telephone: (925) 746-8471
Email: [email protected]
ARTICLE 21. EXECUTION BY CITY NOT A WAIVER
LESSEE understands and agrees that CITY, by entering into and e xecuting this Agreement, shall not have waived any right, duty, privilege, obligation or authority vested in the CITY to approve, disapprove or conditionally approve any application which LESSEE may be required to make under any laws, rules, ordinances or regulations now or hereafter in effect which said CITY may be empowered to apply, including but not limited to any use permit or approval, whether similar in nature or not.

ARTICLE 22. ENTIRE AGREEMENT
All Exhibits identified herein and attached hereto are expressly i ncorporated into and form a part of this Agreement. This Agreement , together with the Reimbursement Agreement, contains the entire agreement between the parties with respect to the subject matter hereof and supersedes all negotiations, representations, or oral or written agreements made prior to the execution of this Agreement. If any provision of the Reimbursement Agreement conflicts with any provision in this Agreement, the provisions contained this Agreement will govern and control. No promise, representation, warranty, or covenant not included in this Agreement or otherwise in the Reimbursement Agreement has been or is relied upon by either party. Each party has relied on its own examination of this Agreement, the counsel of its own advisors, and the warranties, representations, and covenants in this Agreement itself. The failure or refusal of either party to inspect the Premises or Property, to read this Agreement or other documents, or to obtain legal or other advice relevant to this transaction constitutes a waiver of any objection, contention, or claim that might have been based on such reading, inspection, or advice.

ARTICLE 23. INTERPRETATION
This Agreement is to be interpreted and construed according to the laws of the State of California.

ARTICLE 24. CAPTIONS
The captions in the headings of the paragraphs of this Agreement are for convenience only and are not part of the substantive terms of this Agreement.

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19 01135.0001/1030978.1
ARTICLE 25. AMENDMENTS
This Agreement may be modified only by a written instrument signed by the parties in interest at the time of the modification. The City represents that the City Manager is authorized to to execute amendments to this Agreement.

ARTICLE 26. RENT DEFINED
All monetary obligations of LESSEE to CITY under the terms of this Agreement are deemed to be Rent (“Rent”).

ARTICLE 27. SEVERABILITY
Each and every provision of this Agreement is, and shall be construed to be, a separate and independent covenant and agreement. If any term or provision of this Agreement or the application thereof shall to any extent be held to be invalid or unenforceable as determined by a court of competent jurisdiction, the remainder of this Agreement, or the application of such term or provision to circumstances other than those to which it is held to be invalid or unenforceable, shall not be affected hereby, and each term and provision of this Agreement shall be valid and shall be enforced to the extent permitted by law.

ARTICLE 28. ATTORNMENT
LESSEE agrees to attorn to any party who acquires ownership of the Premises, and that in such event, such new owner shall not be: (a) liable for any act or omission of any prior CITY or with respect to events occurring prior to acquisition of ownership of the Premises; or (b) subject to any offsets or defenses which LESSEE might have against any prior CITY.

ARTICLE 29. QUIET POSSESSION
So long as LESSEE is not in default under this Agreement and is paying the Rent and performing all of the covenants and conditions of this Agreement, LESSEE shall quietly have, hold, and enjoy the Premises during the Term and any Renewal Term without interrupt ion or disturbance from CITY or any other persons claiming by, through or under CITY.

ARTICLE 30. RELATIONSHIP OF THE PARTIES; NOT THIRD-PARTY

BENEFICIARIES
This Agreement does not create any relationship or association between CITY and LESSEE other than that of landlord and tenant, and it is expressly understood and agreed that CITY does not in any way nor for any purpose become a partner of LESSEE or a joint venturer with LESSEE in the conduct of LESSEE’s business or otherwise; nor does this Agreement create between CITY and LESSEE the relationship of principal and agent. The parties do not intend to create any third-party beneficiaries to this Agreement.

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ARTICLE 31. NON-LIABILITY
No member, official, or employee of either party will be personally liable to the other, or any successor in interest, in the event of any default or breach by a party or for any amount which may become due to a party or its successors, or on any obligations under the terms of this Agreement.

Each hereby waives and releases any claim it may have agains t the members, officials or employees of the other party with respect to any default or breach by such party or for any amount which may become due to the non -defaulting party or its successors, or on any obligations under the terms of this Agreement.

ARTICLE 32. VENUE
Any action to enforce or interpret this Agreement must be filed in the Superior Court for the County of Los Angeles, California.

ARTICLE 33. COMMISSION
Each party represents to the other that it has not been represented by any broker in connection with this Agreement and that no real estate broker ’s commission, finder ’s fee or other compensation (individually and collectively, “Commission”) is due or payable. Each party agrees to indemnify and hold the other harmless from any claims or liability, including reasonable attorneys’ fees in connection with a claim by any person for a Commission based upon any statement, representation or agreement of the other party.

ARTICLE 34. MEMORANDUM OF AGREEMENT
Promptly following the Effective Date, the CITY and LESSEE shall execute, acknowled ge and record a Memorandum of Agreement in the form attached as Exhibit D (“Memorandum”) with respect to LESSEE ’s lease of the Premises in the Official Records of Los Angeles County (“Official Records”). Upon termination or expiration of this Agreement, LESSEE shall execute, acknowledge and record a Quitclaim Deed or other documentation necessary to terminate this Agreement and the Memorandum, in the Official Records.

ARTICLE 35. COUNTERPARTS
This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. A party’s signature transmitted by facsimile or electronic mail shall be valid and effective. [Signatures appear on next page.]

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Signature Page to Digital Billboard Lease and Relocation Agreement 01135.0001/1030978.1

WHEREFORE, the parties hereto have entered into this Agreement as of the Effective Date set forth above.
“LESSEE” OUTFRONT MEDIA LLC, a Delaware
limited liability company

By:

Name:

Title: ________________________________

“CITY” CITY OF BELL, a municipal corporation

By:

Michael L. Antwine II, City Manager
ATTEST:

_______________________
Name:

Title:

APPROVED AS TO FORM:

________________________
Name: David J. Aleshire
Title: City Attorney

Page 45 ends

Exhibit A-1
Legal Description of Property
01135.0001/1030978.1

EXHIBIT A-1

LEGAL DESCRIPTION AND DEPICTION OF THE PROPERTY

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Exhibit A-2
Description of Premises
01135.0001/1030978.1

EXHIBIT A-2

DESCRIPTION AND DEPICTION OF THE PREMISES

Page 47 ends

Exhibit B
Digital Billboard, Billboard Structure, and Billboard Project 01135.0001/1030978.1

EXHIBIT B

DIGITAL BILLBOARD, BILLBOARD STRUCTURE, BILLBOARD PROJECT

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Exhibit C
Removed Billboards
01135.0001/1030978.1

EXHIBIT C

REMOVED BILLBOARDS

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Exhibit D
Memorandum of Agreement
01135.0001/1030978.1

EXHIBIT D

MEMORANDUM OF AGREEMENT
RECORDING REQUESTED BY:

CITY OF BELL
6330 PINE AVENUE
BELL, CA 90201
ATTN: CITY MANAGER

AND WHEN RECORDED MAIL TO:

Outfront Media LLC
1520 Cahuenga Blvd.

Los Angeles, CA 90028
Attention: Katie Metz

SPACE ABOVE THIS LINE FOR RECORDER’S USE

EXEMPT FROM RECORDING FEES PURSUANT TO GOVERNMENT CODE
SECTION 27383 AND DOCUMENTARY TRANSFER TAXES PURSUANT TO REVENUE AND TAXATION CODE SECTION 11922.

MEMORANDUM OF DIGITAL BILLBOARD LEASE AND RELOCATION

AGREEMENT
This MEMORANDUM OF DIGITAL BILLBOARD LEASE AND RELOCATION AGREEMENT (“Memorandum”) is made effective as of this ___ day of ______________, 20___, by and between CITY OF BELL, a municipal corporation (“Landlord”), and OUTFRONT MEDIA LLC, a Delaware limited liability company (“Tenant”), with respect to the following:

In connection with the construction and operation of an electronic billboard on a portion of real property owned by Landlord and located in the City of Bell, County of Los Angeles, State of California (the “Premises”), Landlord and Tenant entered into that certain Digital Billboard Lease and Relocation Agreement , dated __________, 2023 (the “Agreement”). Pursuant to the Agreement, Landlord and Tenant agreed (among other things) that Tenant would lease and construct and operate an electronic billboard for general advertising on the Premises. The Premises is legally described and depicted on Exhibit A attached hereto. The term of the Agreement is ten (10) years, commencing from the operational date of the electronic billboard, subject to automatic renewal for an additional period of ten (10) years. This Memorandum is recorded to provide record notice of the Agreement. Nothing in this Memorandum shall modify or amend the Agreement, and in the event of any conflicts between this Memorandum and the Agreement, the provisions of the Agreement shall prevail.
[Signature Pages Follow]

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Exhibit A-1
Legal Description of Property
01135.0001/1030978.1
IN WITNESS WHEREOF , the parties hereto have entered into this Memorandum effective as of the date first written above.

LANDLORD:

CITY OF BELL,
a municipal corporation
By: _________________________
Name: Michael L. Antwine
Its: City Manager
ATTEST:

Name: _____________________
Title: _____________________
APPROVED AS TO FORM:

By: _____________________
Name: David J. Aleshire
Title: City Attorney

TENANT:

OUTFRONT MEDIA LLC,
a Delaware limited liability company
By: _________________________
Name: _________________________
Its: _________________________

[Signatures to Be Notarized]

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Exhibit A-1
Legal Description of Property
01135.0001/1030978.1
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

State of California )
County of Los Angeles )

On ____________________, before me, ____________________________, Notary Public, personally appeared _______________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature

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State of California )
County of Los Angeles )

On ____________________, before me, ____________________________, Notary Public, personally appeared _______________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the i nstrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature

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AGENDA ITEM 2

City of Bell
Agenda Report

DATE: November 13, 2024

TO: Honorable Mayor and City Council

FROM: R ickey Manbahal, Finance Director

APPROVED Michael L. Antwine II (e-signature)
BY: ________________________________________
Michael L. Antwine II, City Manager

SUBJECT: Consideration to adopt the Development Impact Fee Study

RECOMMENDATION:

It is recommended that the City Council read by title only, waive further reading and adopt Resolution 2024-49 titled:

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF BELL ADOPTING THE DEVELOPMENT IMPACT
FEES

BACKGROUND:

The City Council approved a Master Services Contract with Willdan to prepare a Development Impact Fee study analysis. As part of the creation of the Development Impact Fee Study Analysis, Willdan h eld multiple meetings with City staff to discuss various impact fee categories, public facility’s assessments and needs, Infrastructure, Open Space and Park Improvements, City Administrative Services and future Development needs.

Currently, Willdan has completed a draft Nexus Study which identifies the various fee categories and assigns fees associated fee schedule based on the methodologies associated with each category.

On August 28, 2024, Willdan presented the Council with a summary of the methodology used to develop Impact Fees Nexus Study and Report.

On October 11, 2024, staff published a notice of public hearing for November 13, 2024. Staff will update the City of Bell Master Fee schedule to include Development Impact Fees at a future Council meeting following adoption.

DISCUSSION:

The purpose of the public hearing is to receive public comment and adopt the Development Impact Fee Report.

The Development Impact Fees (DIF) Study is designed to address resident concerns regarding the impact new development will have on future City growth. DIFs are paid by developers to

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AGENDA ITEM 2

mitigate the impacts of new development. The report identifies six (6) categories where DIFs can mitigate impacts:

• Increased traffic
• Increased needs for parking
• Parks and recreation
• Government facilities
• Public safety facilities
• Sewer facilities

The City’s adopted General Plan estimates that future development, in accordance with adopted guidelines, will facilitate an increase of 616 dwelling units representing an increase of 2,226 residents. An additional 3,979 jobs will be created per the General Plan. This growth will result in a future demand for facilities relating to traffic, parking, government facilities, public safety and wastewater. The anticipated growth will decrease the ratio of parkland per 1,000 residents and thus generating the need for a new park to maintain the established level of service.

Willdan and staff determine the change in terms of the public facilities and needs for the fee categories. Willdan further updated the demographics and presented the City with the facilities list and discussed the status for each fee type. Additionally, Willdan worked with the City to implement an impact fee program that ensures new development pays its fair share of infrastructure while being mindful of the overall fee burden on new development.

Establishing a Development Fee Schedule that best addresses the City’s future growth is crucial to ensure that the current and future needs of City residents are met. The City is actively implementing, facilitating and encouraging several significant Economic Development projects that will impose a burden on their infrastructure.

Due to the lack of a Development Impact Fee Schedule, the City has not been able to charge fees to those developments that would be used to fund future facility expansions, benefiting residents. This has led to a negative correlation: as development increases, service levels will decrease for existing residents. Therefore, it is necessary for new development to mitigate its impact on the City.

Staff will periodically review and update the Nexus Study every 3 to 5 years to ensure that the cost methodologies and categories are accurate with current economic trends and development activities occurring or planned within the City.

The table of recommended development fees follows:

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AGENDA ITEM 2

The proposed DIFs revenue would be strategically budgeted and utilized address for the purpose of expansion of public facilities and city services. Additionally, the study proposes an updated Quimby Fee would be used for the construction of new and rehabilitating dilapidated park facilities.

CONCLUSION:

It is recommended that the City Council adopt Resolution 2024-49 to implement the Development Impact Fee Schedule. Currently, the City does not have a Development Impact Fee schedule and therefore does not have a dedicated revenue stream to address the needs of their residents as the City experiences growth.

FISCAL IMPACT:

The City will receive future special revenues from these fees that will be designated and specified for use in only the approved categories identified within the Nexus Study.

ATTACHMENTS:

1. Development Impact Fee Study

2. Resolution 2024-49

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CITY OF BELL

DEVELOPMENT IMPACT FEE NEXUS STUDY

DRAFT

MAY 7, 2024

Oakland Office Corporate Office Other Regional Offices
66 Franklin Street 27368 Via Industria Aurora, CO
Suite 300 Suite 200 Orlando, FL
Oakland, CA 94607 Temecula, CA 92590 Phoenix, AZ
Tel: (510) 832-0899 Tel: (800) 755-6864 Plano, TX
Fax: (888) 326-6864 Seattle, WA
Washington, DC
www.willdan.com

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TABLE OF CONTENTS
EXECUTIVE SUMMARY ............................................................................ 4 Background and Study Objectives 5
Facility Standards and Costs 5
Use of Fee Revenues 5
Development Impact Fee Schedule Summary 6

1. INTRODUCTION ............................................................................. 7 Public Facilities Financing in California 7
Study Objectives 7
Fee Program Maintenance 8
Study Methodology 8
Types of Facility Standards 8
New Development Facility Needs and Costs 9
Organization of the Report 10

2. GROWTH FORECASTS ................................................................. 11 Land Use Types 11
Impact Fees for Accessory Dwelling Units 11
Existing and Future Development 12
Occupant Densities 13

3. TRANSPORTATION FACILITIES ...................................................... 15 Trip Demand 15
Trip Demand Growth 16
Existing Facilities 17
Fee per Trip Demand Unit 17
Planned Projects 18
Fee Schedule 18

4. PARKS AND RECREATION FACILITIES ............................................ 20 Service Population 20
Existing Park and Recreation Facilities Inventory 20
Parkland and Park Facilities Unit Costs 21
Parkland and Park Facility Standards 22
Mitigation Fee Act 22
Quimby Act 23
City of Bell Parkland and Park Facilities Standards 23
Facilities Needed to Accommodate New Development 23
Parks and Recreation Facilities Cost per Capita 24
Use of Fee Revenue 25
Fee Schedule 25

5. GENERAL GOVERNMENT FACILITIES ............................................. 28

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City of Bell Development Impact Fee Nexus Study
ii

Service Population 28
Existing Facilities Inventory 29
Cost Allocation 30
Fee Revenue Projection 30
Capital Improvement Plan 30
Fee Schedule 31

6. PARKING FACILITIES ................................................................... 32 Parking Requirements 32
Parking Facilities Unit Costs 32
Use of Fee Revenue 33
Fee Schedule 33

7. PUBLIC SAFETY FACILITIES .......................................................... 35 Service Population 35
Existing Facility Inventory 36
Planned Facilities 36
Cost Allocation 36
Existing Level of Service 36
Fee Revenue Projection 37
Fee Schedule 37

8. SEWER FACILITIES ...................................................................... 39 Sewer Demand 39
EDU Generation by New Development 39
Existing Facilities 40
Facility Needs and Costs 40
Cost per EDU 42
Fee Schedule 42

9. AB 602 REQUIREMENTS ............................................................. 44 Compliance with AB 602 44
66016.5. (a) (2) - Level of Service 44
66016.5. (a) (4) – Review of Original Fee Assumptions 44 66016.5. (a) (6) – Capital Improvement Plan 44

10. IMPLEMENTATION ........................................................................ 45 Impact Fee Program Adoption Process 45
Inflation Adjustment 45
Reporting Requirements 45
Programming Revenues and Projects with the CIP 47

11. MITIGATION FEE ACT FINDINGS ................................................... 48 Purpose of Fee 48
Use of Fee Revenues 48
Benefit Relationship 48
Burden Relationship 49

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City of Bell Development Impact Fee Nexus Study
iii

Proportionality 49

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4 Executive Summary
This report summarizes an analysis of development impact fees needed to support future development in the City of Bell through 2045. It is the City’s intent that the costs representing future development’s share of public facilities and capital improvements be imposed on that development in the form of a development impact fee, also known as a public facilities fee. The public facilities and improvements included in this analysis are divided into the fee categories listed below:
• Transportation Facilities
• Parks and Recreation Facilities
• General Government Facilities
• Public Safety Facilities
• Parking Facilities
• Sewer Facilities

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5 Background and Study Objectives
The primary policy objective of a development impact fee program is to ensure that new development pays the capital costs associated with growth. Although growth also imposes operating costs, there is not a similar system to generate revenue from new development for services. The primary purpose of this report is to calculate and present fees that will enable the City to expand its inventory of public facilities, as new development creates increases in service demands.

The City collects public facilities fees under authority granted by the Mitigation Fee Act (the Act), contained in California Government Code Sections 66000 et seq . Th is report provides the necessary findings required by the Act for adoption of the fees presented in the fee schedules contained herein.

Facility Standards and Costs
There are three approaches commonly used to calculate facilities standards and allocate the costs of planned facilities to accommodate growth in compliance with the Mitigation Fee Act requirements in this study.

The existing inventory approach is based on a facility standard derived from the City’s existing level of facilities and existing demand for services. This approach results in no facility deficiencies attributable to existing development. This approach is often used when a long-range plan for new facilities is not available. Future facilities to serve growth will be identified through the City’s two- year CIP and budget process and/or completion of a new facility master plan. This approach is used to calculate the general government and parks and recreation facilities fees in this report.

The planned facilities approach allocates costs based on the ratio of planned facilities that serve new development to the increase in demand associated with new development. This approach is appropriate when specific planned facilities that only benefit new development can be identified, or when the specific share of facilities benefiting new development can be identified. This approach is also used to support a specific demand standard identified by policy in a City’s General Plan. This approach is used for the transportation facilities fees in this report.

The system plan approach is based on a master facility plan in situations where specific needed facilities serve both existing and new development. This approach allocates existing and planned facilities across existing and new development to determine new development’s fair share of facility needs. This approach is used when it is not possible to differentiate the benefits of new facilities between new and existing development. This approach is used to calculate the public safety fee in this report.

Use of Fee Revenues
Impact fee revenue must be spent on new facilities or expansion of current facilities to serve new development. Facilities can be generally defined as capital acquisition items with a useful life greater than five years. Impact fee revenue can be spent on capital facilities to serve new development, including but not limited to land acquisition, construction of buildings, construction of infrastructure, the acquisition of vehicles or equipment , information technology, software licenses and equipment.

In that the City cannot predict with certainty how and when development within the City will occur during the planning horizon assumed in this study, the City may need to update and revise the project lists funded by the fees documented in this study. Any substitute projects should be funded within the same facility category, and the substitute projects must still benefit and have a relationship to new development. The City could identify any changes to the projects funded by

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City of Bell Development Impact Fee Nexus Study

6 the impact fees when it updates the CIP. The impact fees could also be updated if significant changes to the projects funded by the fees are anticipated.

Development Impact Fee Schedule Summary
Table E.1 summarizes the development impact fees that meet the City’s identified needs and comply with the requirements of the Mitigation Fee Act.

Land Use Traffic Facilities
Parks and
Recreation
Facilities 1
General
Government
Parking In
Lieu Police Sewer
Total
(Onsite
Parking)2
Residential - Fee per Dwelling Unit
Single Family 13,597$ 5,439$ 2,120$ 90,325$ 2,497$ 1,817$ 25,470$ Multifamily 9,110$ 4,169 1,624 112,907$ 1,913$ 1,817 18,633$ Nonresidential - Fee per 1,000 Sq. Ft.

Commercial 21,192$ -$ 351$ $180,651 413 909$ 22,865$ Office 21,192$ - 538 $149,037 635 1,144$ 23,509$ Industrial 12,985$ - 192 $90,325 226 454$ 13,857$ Sources: Tables 3.5, 4.9, 5.5.
1 Mitigation Fee Act fee shown. Quimby fees in lieu of parkland dedication only apply to development occurring in subdivisions. Quimby in-lieu fees are $37,884 per single family unit and $33,579 per multifamily unit. 2 Assumes that development project provides parking onsite. Maximum justified fee of $28,122 in-lieu of providing one space onsite. Refer to City's municipal code parking standards for detailed parking requirements.

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City of Bell Development Impact Fee Nexus Study

7 1. Introduction
This report presents an analysis of the need for public facilities to accommodate new development in the City of Bell. This chapter provides background for the study and explains the study approach under the following sections:
§ Public Facilities Financing in California;
§ Study Objectives;
§ Fee Program Maintenance;
§ Study Methodology; and
§ Organization of the Report.

Public Facilities Financing in California
The changing fiscal landscape in California during the past 40 years has steadily undercut the financial capacity of local governments to fund infrastructure. Three dominant trends stand out:
§ The passage of a string of tax limitation measures, starting with Proposition 13 in 1978 and continuing through the passage of Proposition 218 in 1996; § Declining popular support for bond measures to finance infrastructure for the next generation of residents and businesses; and
§ Steep reductions in federal and state assistance.

Faced with these trends, many cities and counties have had to adopt a policy of “growth pays its own way.” This policy shifts the burden of funding infrastructure expansion from existing ratepayers and taxpayers onto new development. This funding shift has been accomplished primarily through the imposition of assessments, special taxes, and development impact fees also known as public facilities fees. Assessments and special taxes require the approval of property owners and are appropriate when the funded facilities are directly related to the developing property. Development impact fees, on the other hand, are an appropriate funding source for facilities that benefit all development jurisdiction -wide. Development impact fees need only a majority vote of the legislative body for adoption.

Study Objectives
The primary policy objective of a public facilities fee program is to ensure that new development pays the capital costs associated with growth. The primary purpose of this report is to establish impact fees for the City based on the most current available facility plans and growth projections.

The maximum justified fees will enable the City to expand its inventory of public facilities as new development leads to increases in service demands.

The City can collect public facilities fees under authority granted by the Mitigation Fee Act (the Act), contained in California Government Code Sections 66000 et seq. Th is report provides the necessary findings required by the Act for adoption of the fees presented in the fee schedules presented in this report.

Bell is forecast to see moderate growth through this study’s planning horizon of 2045. This growth will create an increase in demand for public services and the facilities required to deliver them.

Given the revenue challenges described above, Bell has decided to use a development impact fee program to ensure that new development funds its share of facility costs associated with growth. This report makes use of the most current available growth forecasts and facility plans to

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City of Bell Development Impact Fee Nexus Study

8 update the City’s existing fee program to ensure that the fee program accurately represents the facility needs resulting from new development.

Fee Program Maintenance
Once a fee program has been adopted it must be properly maintained to ensure that the revenue collected adequately funds the facilities needed by new development. To avoid collecting inadequate revenue, the inventories of existing facilities and costs for planned facilities must be updated periodically for inflation, and the fees recalculated to reflect the higher costs. The use of established indices for each facility included in the inventories (land, building s, and equipment), such as the Engineering News-Record, is necessary to accurately adjust the impact fees. For a list of recommended indices, see Chapter 10.

While fee updates using inflation indices are appropriate for annual or periodic updates to ensure that fee revenues keep up with increases in the costs of public facilities, it is recommended to conduct more extensive updates of the fee documentation and calculation when significant new data on growth forecasts and/or facility plans become available. For further detail on fee program implementation, see Chapter 10.

Study Methodology
Development impact fees are calculated to fund the cost of facilities required to accommodate growth. The six steps followed in this development impact fee study include:

1. Estimate existing development and future growth: Identify a base year for existing development and a growth forecast that reflects increased demand for public facilities;

2. Identify facility standards: Determine the facility standards used to plan for new and expanded facilities;

3. Determine facilities required to serve new development: Estimate the total amount of planned facilities, and identify the share required to accommodate new development;

4. Determine the cost of facilities required to serve new development: Estimate the total amount and the share of the cost of planned facilities required to accommodate new development;

5. Calculate fee schedule: Allocate facilities costs per unit of new development to calculate the development impact fee schedule. Calculate fees per square foot of residential by dividing fee per unit by average unit square footage; and

6. Identify alternative funding requirements: Determine if any non -fee funding is required to complete projects.

The key public policy issue in development impact fee studies is the identification of facility standards (step #2, above). Facility standards document a reasonable relationship between new development and the need for new facilities. Standards ensure that new development does not fund deficiencies associated with existing development.

Types of Facility Standards
There are three separate components of facility standards:
§ Demand standards determine the amount of facilities required to accommodate growth, for example, park acres per thousand residents, square feet of library space per capita, or gallons of water per day. Demand standards may also reflect a level of service such as the vehicle volume-to-capacity (V/C) ratio used in traffic planning.

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City of Bell Development Impact Fee Nexus Study

9 § Design standards determine how a facility should be designed to meet expected demand, for example, park improvement requirements and technology infrastructure for City office space. Design standards are typically not explicitly evaluated as part of an impact fee analysis but can have a significant impact on the cost of facilities. Our approach incorporates the cost of planned facilities built to satisfy the City’s facility design standards.
§ Cost standards are an alternate method for determining the amount of facilities required to accommodate growth based on facility costs per unit of demand. Cost standards are useful when demand standards were not explicitly developed for the facility planning process. Cost standards also enable different types of facilities to be analyzed based on a single measure (cost or value ) and are useful when different facilities are funded by a single fee program. Examples include facility costs per capita, cost per vehicle trip, or cost per gallon of water per day.

New Development Facility Needs and Costs
Several approaches can be used to identify facility needs and costs to serve new development.

This is often a two -step process: (1) identify total facility needs, and (2) allocate to new development its fair share of those needs.

There are three common methods for determining new development’s fair share of planned facilities costs in this study: the existing inventory method, the planned facilities method, and the system plan method. Often the method selected depends on the degree to which the community has engaged in comprehensive facility master planning to identify facility needs.

The formula used by each approach and the advantages and disadvantages of each method is summarized below:

Existing Inventory Method
The existing inventory method allocates costs based on the ratio of existing facilities to demand from existing development as follows:

Current Value of Existing Facilities
Existing Development Demand
Under this method new development will fund the expansion of facilities at the same standard currently serving existing development. The existing inventory method results in no facility deficiencies attributable to existing development. This method is often used when a long -range plan for new facilities is not available. Future facilities to serve growth are identified through a biennial CIP and budget process, possibly after completion of a new facility master plan. This approach is used to calculate the general government and parks and recreation facilities fees in this report.

Planned Facilities Method
The planned facilities method allocates costs based on the ratio of planned facility costs to demand from new development as follows:

Cost of Planned Facilities
New Development Demand
This method is appropriate when planned facilities will entirely serve new development, or when a fair share allocation of planned facilities to new development can be estimated. This approach is appropriate when specific planned facilities that only benefit new development can be identified, or when the specific share of facilities benefiting new development can be identified. This approach is also used to support a specific demand standard identified by policy in a City’s General Plan. This approach is used for the transportation facilities fees in this report. = cost per unit of demand
= cost per unit of demand

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City of Bell Development Impact Fee Nexus Study

10 System Plan Method
This method calculates the fee based on the value of existing facilities plus the cost of planned facilities, divided by demand from existing plus new development:

Value of Existing Facilities + Cost of Planned Facilities Existing + New Development Demand
This method is useful when planned facilities need to be analyzed as part of a system that benefits both existing and new development. It is difficult, for example, to allocate a new fire station solely to new development when that station will operate as part of an integrated system of fire stations that together achieve the desired level of service.

The system plan method ensures that new development does not pay for existing deficiencies.

Often facility standards based on policies such as those found in Comprehensive Plans are higher than the existing facility standards. This method enables the calculation of the existing deficiency required to bring existing development up to the policy -based standard. The local agency must secure non -fee funding for that portion of planned facilities required to correct the deficiency to ensure that new development receives the level of service funded by the impact fee.

This approach is used to calculate the public safety facilities fee in this report.

Organization of the Report
The determination of a public facilities fee begins with the selection of a planning horizon and development of growth projections for population and employment. These projections are used throughout the analysis of different facility categories and are summarized in Chapter 2.

Chapters 3 through 7 identify facility standards and planned facilities, allocate the cost of planned facilities between new development and other development, and identify the appropriate development impact fee for each of the following facility categories:
• Transportation Facilities
• Parks and Recreation Facilities
• General Government Facilities
• Public Safety Facilities
• Sewer Facilities
• Parking Facilities

Chapter 9 describes how this nexus study complies with the requirements of AB 602.

Chapter 10 details the procedures that the City must follow when implementing a development impact fee program. Impact fee program adoption procedures are found in California Government Code Sections 66016 through 66018.

The five statutory findings required for adoption of the maximum justified public facilities fees in accordance with the Mitigation Fee Act are documented in Chapter 11. = cost per unit of demand

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11 2. Growth Forecasts
Growth projections are used as indicators of demand to determine facility needs and allocate those needs between existing and new development. This chapter explains the source for the growth projections used in this study based on a 2023 base year and a planning horizon of 2045.

Estimates of existing development and projections of future growth are critical assumptions used throughout this report. These estimates are used as follows:
§ The estimate of existing development in 2023 is used as an indicator of existing facility demand and to determine existing facility standards. § The estimate of total development at the 2045 planning horizon is used as an indicator of future demand to determine total facilities needed to accommodate growth and remedy existing facility deficiencies, if any. § Estimates of growth from 0223 through 2045 are used to (1) allocate facility costs between new development and existing development, and (2) estimate total fee revenues.

The demand for public facilities is based on the service population , dwelling units or nonresidential development creating the need for the facilities.

Land Use Types
To ensure a reasonable relationship between each fee and the type of development paying the fee, growth projections distinguish between different land use types. The land use types for which impact fees have been calculated for are defined below. § Residential dwelling units : All residential dwelling units including detached and attached one -unit dwellings (Includes si ngle family homes and townhomes) and attached multifamily dwellings including duplexes and condominiums. Fees charged per square foot.
§ Commercial: All commercial, retail, educational, lodging, and service development. § Office: All general, professional, and medical office development. § Industrial: All warehouse, distribution, manufacturing, and other industrial development.

Some developments may include more than one land use type, such as a mixed-use development with both residential and commercial uses. In those cases, the facilities fee would be calculated separately for each land use type.

The City has the discretion to determine which land use type best reflects a development project’s characteristics for purposes of imposing an impact fee and may adjust fees for special or unique uses to reflect the impact characteristics of the use . If a project results in the intensification of use, at its discretion, the City can charge the project the difference in fees between the existing low intensity use and the future high intensity use.

Impact Fees for Accessory Dwelling Units
The California State Legislature recently amended requirements on local agencies for the imposition of development impact fees on accessory dwelling units (ADU) with Assembly Bill AB 68 in 2021. The amendment to California Government Code §65852.2(f)(2) stipulates that local agencies may not impose any impact fees on ADUs less than 750 square feet. ADU s greater

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City of Bell Development Impact Fee Nexus Study

12 than 750 square feet can be charged impact fees in proportion to the size of the primary dwelling unit.

Calculating Impact Fees for Accessory Dwelling Units
For ADUs greater than 750 square feet, impact fees can be charged as a percentage of the single-family impact fee. The formula is:

In the case of an 800 square foot ADU and a 1,600 square foot primary r esidence, the impact fees would be 50 percent (800 square feet / 1,600 square feet = 50% ) of the single-family dwelling unit fee.

Existing and Future Development
Table 2.1 shows the estimated number of residents, dwelling units, employees, and building square feet in Bell, both in 2023 and in 2045. The base year estimates of household residents and dwelling units comes from the California Department of Finance. The projection or residents is based on data from the Southern California Association of Governments (SCAG) Connect SoCal Demographic and Growth Forecast.

Base year employees were estimated based on the latest data from the US Census’ OnTheMap application and exclude local government (public administration) employees. Total projected workers were also identified in the SCAG Connect SoCal Demographic and Growth Forecast.

𝐴𝐷𝑈 𝑆𝑞𝑢𝑎𝑟𝑒 𝐹𝑒𝑒𝑡
𝑃𝑟𝑖𝑚𝑎𝑟𝑦 𝑅𝑒𝑠𝑖𝑑𝑒𝑛𝑐𝑒 𝑆𝑞𝑢𝑎𝑟𝑒 𝐹𝑒𝑒𝑡 × 𝑆𝑖𝑛𝑔𝑙𝑒 𝐹𝑎𝑚𝑖𝑙𝑦 𝐼𝑚𝑝𝑎𝑐𝑡 𝐹𝑒𝑒 = 𝐴𝐷𝑈 𝐼𝑚𝑝𝑎𝑐𝑡 𝐹𝑒𝑒

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City of Bell Development Impact Fee Nexus Study

13 Table 2.1: Existing and New Development

Occupant Densities
All fees in this report are calculated based on dwelling units or building square feet. Occupant density assumptions ensure a reasonable relationship between the size of a development project, the increase in service population associated with the project, and the amount of the fee.

Occupant densities (residents per dwelling unit or workers per building square foot) are the most appropriate characteristics to use for most impact fees. The fee imposed should be based on the land use type that most closely represents the probable occupant density of the development.

The occupancy factors are shown in Table 2.2. The residential density factors are based on the most recent available data for Bell from California Department of Finance . The nonresidential occupancy factors are derived from data from the Institute of Traffic Engineers Trip Generation Manual, 11th Edition.
2023 2045 Increase
Residents 1 32,689 34,915 2,226
Dwelling Units2
Single Family 5,766 6,139 373
Multifamily 3,749 3,992 243
Total 9,515 10,131 616
Employment 3
Commercial 3,548 5,079 1,531
Office 4,572 6,545 1,973
Industrial 1,101 1,576 475
Total 9,221 13,200 3,979
1 Current population from California Department of Finance (DOF). Projection for 2045 calculated based on total single family and multifamily units in 2045, multiplied by estimates of 3.98 residents per single family unit and 3.05 residents per multifamily unit calculated from the 2022 American Community Survey data for Bell.

Sources: City of Bell Housing Element, 2021-2029; California Department of Finance (DOF), Table E-5, 2023; U.S. Census Bureau, OnTheMap Application, http://onthemap.ces.census.gov, 2023; Southern California Association of Governments (SCAG) Connect SoCal Demographics and Growth Forecast Technical Report, 2020; Willdan Financial Services.
2 Current values from DOF. Increase in new dwelling units assumes 28 new units per year, consistent with the annual dwelling unit increase assumed in the City's 2021-2029 Housing Element. Assumes existing ration of single family to multifamily units will be maintained. 3 Base year from US Census OnTheMap Application and excludes local government workers. Total in 2045 Identified in SCAG's Connect SoCal Demographic and Growth Forecast. Allocation to land uses at buildout based on current proportions.

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City of Bell Development Impact Fee Nexus Study

14 Table 2.2: Occupant Density Assumptions

Residential
Single Family 3.98 Residents Per Dwelling Unit
Multifamily 3.05 Residents Per Dwelling Unit
Nonresidential
Commercial 2.12 Employees per 1,000 square feet
Office 3.26 Employees per 1,000 square feet
Industrial 1.16 Employees per 1,000 square feet
Sources: U.S. Census Bureau, 2022 American Community Survey 5-Year Estimates, Tables B25024 and B25033; ITE Trip Generation Manual, 11th Edition; Willdan Financial Services.

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15 3. Transportation Facilities
This chapter details an analysis of the need for transportation facilities to accommodate new development. The chapter documents a reasonable relationship between new development and the impact fee for funding of these facilities.

Trip Demand
The need for transportation facilities is based on the trip demand placed on the system by development. A reasonable measure of demand is the number of average daily vehicle trips, adjusted for the type of trip. Vehicle trip generation rates are a reasonable measure of demand on the City’s system of street improvements across all modes because alternate modes (transit, bicycle, pedestrian) often substitute for vehicle trips.

The two types of trips adjustments made to trip generation rates to calculate trip demand are described below:
§ Pass-by trips are deducted from the trip generation rate. Pass -by trips are intermediates stops between an origin and a destination that require no diversion from the route, such as stopping to get gas on the way to work. § The trip generation rate is adjusted by the average length of trips for a specific land use category compared to the average length of all trips on the street system.

These adjustments allow for a holistic quantification of trip demand that takes trip purpose and length into account for fee calculation purposes.

Table 3.1 shows the calculation of trip demand factors by land use category based on the adjustments described above. Data is based on extensive and detailed trip surveys conducted in the Institute of Traffic Engineers (ITE) and by the San Diego Association of Governments (SANDAG). The trip rates come from ITE. The pass -by trip assumptions and trip length assumptions come from SANDAG. Data from SANDAG is used because t he surveys provide one of the most comprehensive databases available of trip generation rates, pass-by trips factors, and average trip length for a wide range of land uses.

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City of Bell Development Impact Fee Nexus Study
16 Table 3.1: Trip Rate Adjustment Factors

Trip Demand Growth
The planning horizon for this analysis is 204 5. Table 3.2 lists the 2023 and 2045 land use assumptions used in this study. The trip demand factors calculated in are multiplied by the existing and future dwelling units and nonresidential square footage to determine the increase in trip demand attributable to new development.

Table 3.2: Land Use Scenario and Trip Demand

Primary
Trips1
Diverted
Trips1
Total
Excluding
Pass-by 1
Average
Trip
Length2
Adjust-
ment
Factor3 ITE Category
PM Peak
Hour
Trips4
Trip
Demand
Factor5
A B C = A + B D E = C x D F G = E x F
Residential
Single Family 86% 11% 97% 7.9 1.11 Single Family Housing (210) 1.00 1.11 Multifamily 86% 11% 97% 7.9 1.11 Apartment (220) 0.67 0.74 Nonresidential - per Employee
Commercial 47% 31% 78% 3.6 0.41 Shopping Center (820) 1.89 0.77 Office 77% 19% 96% 8.8 1.22 General Office (710) 0.45 0.55 Industrial 79% 19% 98% 9.0 1.28 General Light Industrial (110) 0.68 0.87 Nonresidential - per 1,000 Sq. Ft.

Commercial 47% 31% 78% 3.6 0.41 Shopping Center (820) 4.21 1.73 Office 77% 19% 96% 8.8 1.22 General Office (710) 1.42 1.73 Industrial 79% 19% 98% 9.0 1.28 General Light Industrial (110) 0.83 1.06 4 Trips per dwelling unit or per 1,000 building square feet. 5 The trip demand factor is the product of the trip adjustment factor and the trip rate.

Sources: San Diego Association of Governments, Brief Guide of Vehicular Traffic Generation Rates for the San Diego Region, April 2002; Institute of Traffic Engineers, Trip Generation, 10th Edition; Willdan Financial Services.
1 Percent of total trips. Primary trips are trips with no midway stops, or "links". Diverted trips are linked trips whose distance adds at least one mile to the primary trip. Pass-by trips are links that do not add more than one mile to the total trip. Based on SANDAG data. 2 In miles. Based on SANDAG data.
3 The trip adjustment factor equals the percent of non-pass-by trips multiplied by the average trip length and divided by the systemwide average trip length of 6.9 miles.

Trip 2023
Residential
Demand
Factor
Units /
Employees Trips
Units /
Employees Trips
Units /
Employees Trips
Residential - Dwelling Units
Single Family 1.11 5,766 6,400 373 414 6,139 6,814 Multifamily 0.74 3,749 2,788 243 181 3,992 2,969 Subtotal 9,515 9,188 616 595 10,131 9,783 Nonesidential - Employees
Commercial 0.77 3,548 2,749 1,531 1,187 5,079 3,936 Office 0.55 4,572 2,510 1,973 1,083 6,545 3,593 Industrial 0.87 1,101 958 475 414 1,576 1,372 Subtotal 9,221 6,217 3,979 2,684 13,200 8,901 Total 15,405 3,279 18,684

82.5% 17.5% 100%
Sources: Tables 2.1 and 3.1.

Growth 2023 to Buildout Total - Buildout

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City of Bell Development Impact Fee Nexus Study
17 Existing Facilities
The City plans to use transportation facilities fee revenue to construct improvements to add capacity to the system of transportation facilities that serves new development. The City may only use impact fee revenue to provide facilities and intensify usage of existing facilities needed to serve new development. The City should program fee revenue to capacity expanding projects through its CIP and budget process. The City’s impact fee transportation CIP is shown in Table

3.3. Projects that are rehabbing or retrofitting existing facilities have been excluded from this list.

A share of each project corresponding with new development’s total share of trip demand at the planning horizon is allocated to new development through this impact fee. In total, approximately $3 million is allocated to new development through the impact fee.

Table 3.3: Transportation Project Costs and Allocation to New Development

Fee per Trip Demand Unit
Every impact fee consists of a dollar amount, representing the value of facilities, divided by a measure of demand. In this case, all fees are first calculated as a cost per trip demand unit. Then these amounts are translated into housing unit (cost per unit) and employment space (cost per 1,000 square feet) fees by multiplying the cost per trip by the trip generation rate for each land use category. These amounts become the fee schedule.

Table 3.4 displays the calculation of the cost per trip demand unit. The total cost allocated to new development from Table 3.3 is divided by the growth in trip demand from Table 3.2 to determine the cost per trip needed to accommodate new development. This figure drives the fee calculation.

Table 3.4: Cost per Trip for existing facilities

Quantity Unit cost
Total Replacement
Cost
Centerline Miles Streets 33.6 $ 2,053,571 69,000,000$ Traffic Signals 30 $200,000 6,000,000
Gage Avenue Bridge 30,000,000
Slauson Avenue Bridge 30,000,000
Florence Avenue Bridge 50,000,000
Total 185,000,000$
Sources: City of Bell Pavement Management Program Update 2022 - Final Report, May 2022; City of Bell; Willdan Financial Services.

Existing Facilities $ 185,000,000
Exisitng Trips 15,405
Cost per Trip 12,009$
Sources: Tables 3.2 and 3.3.

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City of Bell Development Impact Fee Nexus Study
18 Planned Projects
The City plans to use transportation facilities fee revenue to construct improvements to add capacity to the system of transportation facilities that serves new development. The City may only use impact fee revenue to provide facilities and intensify usage of existing facilities needed to serve new development. The City should program fee revenue to capacity expanding projects through its CIP and budget process. The City’s impact fee transportation CIP is shown in Table

3.5. Projects that are rehabbing or retrofitting existing facilities have been excluded from this list.

Table 3.5: Planned Transportation Projects

Fee Schedule
Table 3. shows the maximum justified transportation facilities fee schedule. The City can adopt any fee up to these amounts. The maximum justified fees are based on the cost per trip identified in Table 3.4. The cost per trip is multiplied by the trip demand factors in Table 3.1 to determine a fee per unit of new development. The fee per dwelling unit is converted into a fee per square foot by dividing the fee per dwelling unit by the assumed average square footage of a dwelling unit.

The total fee includes a two percent (2%) administrative charge to fund costs that include: a standard overhead charge applied to all City programs for legal, accounting, and other departmental and administrative support, and fee program administrative costs including revenue collection, revenue, and cost accounting, mandated public reporting, and fee justification analyses.

In Willdan’s experience with impact fee programs, two percent of the base fee adequately covers the cost of fee program administration. The administrative charge should be reviewed and adjusted during comprehensive impact fee updates to ensure that revenue generated from the charge sufficiently covers, but does not exceed, the administrative costs associated with the fee program.

Total Project
Cost
Stop-Controlled Intersection Upgrade 214,300$
Florence Avenue Corridor Project 1,200,000
Traffic Signal Improvement Project 685,900
Total 2,100,200$
Sources: City of Bell Local Roadway Safety Plan, August 24, 2022; City of Bell; Willdan Financial Services.

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City of Bell Development Impact Fee Nexus Study
19 Table 3.6: Maximum Justified Transportation Facilities Impact Fee Schedule

A B C = A x B D = C x 0.02 E = C + D E / 1,000
PM Peak Fee
Land Use
Cost Per
Trip
Hour Trip
Rate Base Fee 1
Admin
Charge1, 2 Total Fee1
per Sq.

Ft.

Residential - per Dwelling Unit
Single Family 12,009$ 1.11 13,330$ 267$ 13,597$ 9.06$ Multifamily 12,009 0.74 8,931 179 9,110 10.41 Nonresidential - per Building Square Feet
Commercial 12,009$ 1.73 20,776$ 416$ 21,192$ 21.19$ Office 12,009 1.73 20,776 416 21,192 21.19 Industrial 12,009 1.06 12,730 255 12,985 12.99 1 Fee per dwelling unit, per 1,000 square feet of nonresidential.

Sources: Tables 3.1 and 3.4; Willdan Financial Services. 2 Administrative charge of 2.0 percent for (1) legal, accounting, and other administrative support and (2) impact fee program administrative costs including revenue collection, revenue and cost accounting, mandated public reporting, and fee justification analyses.

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20 4. Parks and Recreation Facilities
The purpose of the parks and recreation facilities impact fee is to fund the parks and recreation facilities needed to serve new development. The maximum justified impact fee is presented based on the City’s existing park facility standards.

Service Population
Park and recreation facilities in Bell primarily serve residents. Therefore, demand for services and associated facilities is based on the City’s residential population. Table 4.1 shows the existing and future projected service population for park and recreation facilities.

Table 4.1: Park and Recreation
Facilities Service Population

Existing Park and Recreation Facilities Inventory
The City of Bell maintains several park and recreation facilities throughout the city. Table 4.2 summarizes the City’s existing parkland inventory in 2023. All facilities are located within the City limits. In total, the inventory includes a total of 12.27 acres of City-owned parkland.

Table 4.2: Parkland Inventory

Residents
Existing (2023) 32,689
Growth (2023 to Buildout) 2,226
Total (Buildout) 34,915
Source: Table 2.1.

Name
Developed
Acres
Treder Park 1.43
Ernest Debs Park 2.15
Camp Little Bear Park 1.18
Futsal Park 0.25
Pritchard Field 1.80
Biancini Park 0.25
Gage/Heliotrope Park 0.26
Veterans Park 3.26
Total - Parkland 10.58
Source: City of Bell.

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City of Bell Development Impact Fee Nexus Study
21 Table 4.3 displays the City’s inventory of recreation centers and special use facilities, including community centers, park buildings and various other facilities. The total replacement cost of these facilities is divided by the existing park acres to determine an existing special use facilities cost per improved park acre.

Table 4.3: Recreation Centers and Special Use Facilities Inventory

Parkland and Park Facilities Unit Costs
Table 4.4 displays the unit costs necessary to develop parkland in Bell. The land cost assumption was based on an analysis of recent land sales within the City of Bell using data from CoStar. An estimate of $748,000 per acre for standard parkland improvements is based on the recent data from other Willdan clients. The land value is based on the weighted average of land sales in Bell provided by CoStar since 2017 , along with recent appraisals, and is consistent with the assumption used in other chapters of this report.

Inventory Units Unit Cost
Replacement
Cost
Treder Park Restroom 444 Sq. Ft. 350 155,400$ Treder Park Fire Tower 720 350 252,000$ Community Center 7,842 350 2,744,700$
Debs Park Office/Rec Center 1,413 350 494,550$ Veterans Park Club House 5,004 350 1,751,400$ Futsal Park Building (tech center) 5,000 350 1,750,000$ Pritchard Field Office/Restrooms 1,000 350 350,000$ Little Bear Park Office/Rec Ctr 3,978 Sq. Ft. 350 1,392,300 25,401 8,890,350$
Total Park Acres 10.58
Building and Special Use Facilities Cost per Acre 840,298$ Sources: City of Bell; Table 4.2, Willdan Financial Services.

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City of Bell Development Impact Fee Nexus Study
22 Table 4.4: Park Facilities Unit Costs

Parkland and Park Facility Standards
Park facility standards establish a reasonable relationship between new development and the need for expanded parkland and park facilities. Information regarding the City’s existing inventory of existing parks facilities was obtained from City staff.

The most common measure in calculating new development’s demand for parks is the ratio of park acres per resident. In general, facility standards may be based on the Mitigation Fee Act (using a city’s existing inventory of parkland and park facilities), or an adopted policy standard contained in a master facility plan or general plan. Facility standards may also be based on a land dedication standard established by the Quimby Act
.1 In this case, the City will use the Mitigation
Fee Act to impose park impact fees for development not occurring in subdivisions and will use the Quimby Act for development occurring in subdivisions.

Mitigation Fee Act
The Mitigation Fee Act does not dictate use of a particular type or level of facility standard for public facilities fees. To comply with the findings required under the law, facility standards must not burden new development with any cost associated with facility deficiencies attributable to existing development.2 A simple and clearly defensible approach to calculating a facility standard is to use the City’s existing ratio of park acreage per 1,000 residents. Under this approach, new development is required to fund new parkland and park facilities at the same level as existing residents have provided those same types of facilities to date.

1 California Government Code §66477.
2 See the Benefit and Burden findings in Background Report.

Cost
Per Acre
Share of
Total Costs
Improvements
Standard Park Improvements 1 748,000$
Building and Special Use Facilities 724,560
Subtotal 1,472,560$ 36%
Land Acquisition 2,600,000$ 64%
Total Cost per Acre 4,072,560$ 100%
1 Improvement costs are estimated at $748,000 per acre for site improvements (curbs, gutters, water, sewer, and electrical access), plus basic park and school field amenities such as basketball or tennis court, parking, tot lot, irrigation, turf, open green space, pedestrian paths, and picnic tables. Excludes special use facilities such as recreation centers, structures and pools.

Sources: San Diego County Parks and Recreation: Prototypical Park Cost Estimate; Table 4.3, Willdan Financial Services.

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City of Bell Development Impact Fee Nexus Study
23 Quimby Act
The Quimby Act specifies that the dedication requirement must be a minimum of 3.0 acres and a maximum of 5.0 acres per 1,000 residents. A jurisdiction can require residential developers to dedicate above the three -acre minimum if the jurisdiction’s existing park standard at the time it adopted its Quimby Act ordinance justifies the higher level (up to five acres per 1,000 residents).

The standard used must also conform to the jurisdiction’s adopted general or specific plan standards.

The Quimby Act only applies to land subdivisions. The Quimby Act would not apply to residential development on future approved projects on single parcels, such as apartment complexes and other multifamily development.

The Quimby Act allows payment of a fee in lieu of land dedication. The fee is calculated to fund acquisition of the same amount of land that would have been dedicated.

The Quimby Act allows use of in -lieu fee revenue for any park or recreation facility purpose.

Allowable uses of this revenue include land acquisition, park improvements including recreation facilities, and rehabilitation of existing park and recreation facilities.

City of Bell Parkland and Park Facilities Standards
Table 4.5 shows the existing standard for improved park acreage per 1,000 residents based on the type of parkland. In total the City has an existing parkland standard of 0.38 acres per 1,000 residents, which allows the City to charge at 3.0 acres per 1,000 residents under the Quimby Act.

For development not subject to the Quimby Act, the fee analysis in this report will be based on maintaining a 0.38 acre per 1,000 service population standard as new development adds demand for parks in Bell.

Table 4.5: Park Facility Standards

Facilities Needed to Accommodate New Development
Table 4.6 shows the park facilities needed to accommodate new development at the existing standard and the Quimby standard, respectively. To achieve the standard by the planning horizon, depending on the amount of development subject to the Quimby Act, new development must fund the purchase and improvement of between 0.71 and 6.68 parkland acres, at a total cost ranging between $1.8 million and $17.4 million.

The facility standards and resulting fees under the Quimby Act are higher, because development will be charged to provide 3.0 acres of parkland per 1,000 residents, and 0.71 acres of improvements, whereas development not subject to the Quimby Act will be charged to provide only 0.71 acres of parkland per 1,000 service population, and 0.71 acres of improvements. Since the exact amount of development that will be subject to the Quimby fees is unknown at this time, Developed Park Acreage 10.58
Service Population (2023) 32,689
Existing Standard (Acres per 1,000 Residents) 0.32
Quimby Act Standard (Acres per 1,000 Residents) 3.00
Sources: Tables 4.1 and 4.2.

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City of Bell Development Impact Fee Nexus Study
24 Table 4.6 presents the range of total facility costs that may be incurred depending on the amount of development occurring in subdivisions.

Table 4.6: Park Facilities to Accommodate New Development

Parks and Recreation Facilities Cost per Capita
Table 4.7 shows the cost per capita of providing new park facilities at the Quimby standard, and the existing facility standard. The cost per capita is shown separately for land and improvements.

The costs per capita in this table will serve as the basis of three fees:
• A Quimby Act Fee in -lieu of parkland dedication. This fee is payable by residential development occurring in subdivisions.
• A Mitigation Fee Act Fee for parkland acquisition. This fee is payable by residential development not occurring in subdivisions.
• A Mitigation Fee Act Fee for parkland improvements. This fee is payable by all residential development.

A development project pays either the Quimby Act Fee in-lieu of land dedication, or the Mitigation Fee Act Fee for land acquisition, not both. All development projects pay the Mitigation Fee Act Fees for park improvements.

Calculation Parkland Improvements Total Range1
Parkland (Quimby Act), Improvements (Mitigation Fee Act) 2 Facility Standard (acres/1,000 capita) A 3.00 0.32 Service Population Growth (2023 to Buildout) B 2,226 2,226 Facility Needs (acres) C = A x B/1000 6.68 0.71 Average Unit Cost (per acre) D $ 2,600,000 $ 748,000 Total Cost of Facilities E = C x D $ 17,368,000 $ 531,000 $ 17,899,000 Parkland and Improvements - Mitigation Fee Act 3
Facility Standard (acres/1,000 capita) A 0.32 0.32 Service Population Growth (2023 to Buildout) B 2,226 2,226 Facility Needs (acres) C = A x B/1000 0.71 0.71 Average Unit Cost (per acre) D $ 2,600,000 $ 748,000 Total Cost of Facilities E = C x D $ 1,846,000 $ 531,000 $ 2,377,000 Note: Totals have been rounded to the thousands.

Sources: Tables 4.1, 4.3, and 4.5.
1 Values in this column show the range of the cost of parkland acquisition and development should all development be either subject to the Quimby Act, or to the Mitigation Fee Act, respectively.
2 Cost of parkland to serve new development shown if all development is subject to the Quimby Act (Subdivisions of 50 units or more). Parkland charged at 3.0 acres per 1,000 residents; improvements charged at the existing standard. 3 Cost of parkland to serve new development shown if all development is subject to the Mitigation Fee Act. Parkland and improvements are charged at the existing standard.

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City of Bell Development Impact Fee Nexus Study
25 Table 4.7: Park Facilities Cost per Capita

Use of Fee Revenue
The City can use park and recreation facilities fee revenue to purchase parkland and construct facilities to add to the system of park facilities that serves new development. The City may only use impact fee revenue to provide facilities and intensify usage of existing facilities needed to serve new development. The City should program fee revenue to capacity expanding projects through its CIP and budget process. The City’s current parks CIP is shown in Table 4.8. Note that the costs in Table 4. 8 do not drive the fee calculation. Rather, the costs shown in the table indicate the initial uses of park impact fee revenue. Additional projects will need to be identified to meet the City’s park standards as new development occurs.

Table 4.8: Park Facilities CIP

Fee Schedule
To calculate fees by land use type, the investment in park facilities is determined on a per resident basis for parkland acquisition, and parkland improvements. T hese investment factors (shown in Table 4.7) are based on the unit cost estimates and the City’s existing facility standards.

Table 4.9 and Table 4.10 show the maximum justified park and recreation facilities fee based on the existing standard per capita under the Quimby Act and under the existing park standard under the Mitigation Fee Act, respectively. The investment per capita is converted to a fee per dwelling unit using the residential occupancy density factor from Table 2.2. The fee per dwelling unit is converted into a fee per square foot by dividing the fee per dwelling unit by the assumed average square footage of a dwelling unit.

Improvements
Calculation Quimby Fee OR Impact Fee AND Impact Fee
Parkland Investment (per acre) A 2,600,000$ 2,600,000$ 1,472,560$ Existing Standard (acres per 1,000 capita) B 3.00 0.38 0.38 Total Cost Per 1,000 capita C = A x B 7,800,000$ 988,000$ 559,600$ Cost Per Resident D = C / 1,000 7,800$ 988$ 560$ Sources: Tables 4.4 and 4.5.

Land
Total Cost
Improvements
Subtotal
Land Acquisition
Total Cost per Acre

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City of Bell Development Impact Fee Nexus Study
26 The total fee includes an administrative charge to fund costs that include: (1) legal, accounting, and other administrative support and (2) impact fee program administrative costs including revenue collection, revenue, and cost accounting, mandated public reporting, and fee justification analyses.

Table 4.9: Maximum Justified Park and Recreation Facilities Fee Schedule Quimby

A B C = A x B D = C x 0.02 E = C + D
Cost Per Base Admin
Land Use Capita Density Fee Charge1 Total Fee Fee per sf Single Family
Parkland 7,800$ 3.98 31,044$ 621$ 31,665$ 21.11$ Improvements 508 3.98 2,022 40 2,062 1.37 Total 8,308$ 33,066$ 661$ 33,727$ 22.48$ Multifamily
Parkland 7,800$ 3.05 23,790$ 476$ 24,266$ 27.73$ Improvements 508 3.05 1,549 31 1,580 1.81 Total 8,308$ 25,339$ 507$ 25,846$ 29.54$ 1 Administrative charge of 2.0 percent for (1) legal, accounting, and other administrative support and (2) impact fee program administrative costs including revenue collection, revenue and cost accounting, mandated public reporting, and fee justification analyses.

Sources: Tables 2.2 and 4.7; Willdan Financial Services.

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City of Bell Development Impact Fee Nexus Study
27 Table 4.10: Maximum Justified Park and Recreation Facilities Fee Schedule – Mitigation Fee Act
A B C = A x B D = C x 0.02 E = C + D
Cost Per Base Admin
Land Use Capita Density Fee Charge1 Total Fee Fee per sf Single Family
Parkland 832$ 3.98 3,311$ 66$ 3,377$ 2.25$ Improvements 508 3.98 2,022 40 2,062 1.37 Total 1,340$ 5,333$ 106$ 5,439$ 3.63$ Multifamily
Parkland 832$ 3.05 2,538$ 51$ 2,589$ 2.96$ Improvements 508 3.05 1,549 31 1,580 1.81 Total 1,340$ 4,087$ 82$ 4,169$ 4.76$ 1 Administrative charge of 2.0 percent for (1) legal, accounting, and other administrative support and (2) impact fee program administrative costs including revenue collection, revenue and cost accounting, mandated public reporting, and fee justification analyses.

Sources: Tables 2.2 and 4.7; Willdan Financial Services.

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28 5. General Government Facilities
The purpose of this fee is to ensure that new development funds its fair share of general government facilities. A fee schedule is presented based on the existing standard of general government facilities in the City of Bell to ensure that new development provides adequate funding to meet its needs.

Service Population
General government facilities serve both residents, visitors, and businesses. Therefore, demand for services and associated facilities are based on the City’s service population including residents, visitors, and workers.

Table 5.1 shows the existing and future projected service population for general government facilities. While specific data is not available to estimate the actual ratio of demand per resident to demand by businesses (per worker) for this service, it is reasonable to assume that demand for these services is less for one employee compared to one resident, because nonresidential buildings are typically occupied less intensively than dwelling units. The 0.31 -weighting factor for workers is based on a 40 -hour workweek divided by the total number of non- work hours in a week (128) and reflects the degree to which nonresidential development yields a lesser demand for general government facilities.

Table 5.1: General Government Facilities Service
Population

A B A x B = C
Persons
Weighting
Factor
Service
Population
Residents
Existing (2023) 32,689 1.00 32,689
New Development 2,226 1.00 2,226
Total (Buildout) 34,915 34,915
Workers
Existing (2023) 9,221 0.31 2,859
New Development 3,979 0.31 1,233
Total (Buildout) 13,200 4,092
Combined Residents and Weighted Workers
Existing (2023) 35,548
New Development 3,459
Total (Buildout) 39,007
Sources: Table 2.1; Willdan Financial Services.
1 Workers are weighted at 0.31 of residents based on a 40 hour work week out of a possible 128 non-work hours in a week (40/128 = 0.31)

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City of Bell Development Impact Fee Nexus Study
29 Existing Facilities Inventory
The City’s general government facilities inventory is comprised of the City Hall, and the Public Works Yard. The replacement cost of these facilities was provided by the City. The land value is based on the weighted average of land sales since 2017 in Bell provided by CoStar. In total the City owns approximately $18.6 million worth of general government facilities. Table 5.2 displays the City’s existing inventory of general government facilities.

Table 5.2: Existing General Government Facilities Inventory

Inventory Units Unit Cost
Replacement
Cost
City Hall
Land 0.84 acres 2,600,000$ 2,176,000$
Building 9,115 sq. ft. 350 3,190,250 Subtotal 5,366,250$
Library
Land 0.46 acres 2,600,000$ 1,185,000$
Building 4,965 sq. ft. 350 1,737,750 Subtotal 2,922,750$
Bell House
Land 0.30 acres 2,600,000$ 779,000$
Building 3,264 sq. ft. 350 1,142,400 Subtotal 1,921,400$
City Yard
Land 0.93 acres 2,600,000$ 2,417,000$
Building 4,050 sq. ft. 350 1,417,500 Subtotal 3,834,500$
Bell Housing Authority Office
Land 0.46 acres 2,600,000$ 1,198,000$
Building 5,016 sq. ft. 350 1,755,600 Subtotal 2,953,600$
Vehicles and Equipment
Computer Network System and IT Resources 1,090,025$
Vehicles 475,000
Subtotal 1,565,025$
Total Value - Existing Facilities 18,563,525$
Sources: City of Bell; Willdan Financial Services.

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City of Bell Development Impact Fee Nexus Study
30 Cost Allocation
Table 5.3 shows the calculation of the existing facilities standard per capita for general government facilities. This cost is calculated by dividing the total existing value of all general government facilities by the existing service population. The cost per capita is multiplied by the worker weighting factor of 0.31 to determine the cost per worker.

Table 5.3: General Government Facilities
Existing Standard

Fee Revenue Projection
The City plans to use general government facilities fee revenue to construct improvements and acquire capital facilities and equipment to add capacity to the City’s general government facilities to serve new development. Table 5.4 shows the projected fee revenue based on the growth in service population identified in Table 5.1.

Table 5.4: Revenue Projection - Existing Standard

Capital Improvement Plan
The City should program fee revenue to capacity expanding projects through its CIP and budget process. The City’s general government facilities impact fee CIP is shown in Table 5.5. Note that the costs in Table 5.5 do not drive the fee calculation. Rather, the costs shown in the table indicate the initial uses of impact fee revenue. Additional projects will need to be identified to meet the City’s facility standards as new development occurs.

Value of Existing Facilities 18,563,525$
Existing Service Population 35,548
Cost per Capita 522$
Facility Standard per Resident 522$
Facility Standard per Worker 1 162
1 Based on a weighing factor of 0.31.

Sources: Tables 5.1 and 5.2.

Cost per Capita 522$
Growth in Service Population (2023 to Buildout) 3,459
Projected Fee Revenue 1,805,598$
Sources: Tables 5.1 and 5.3.

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City of Bell Development Impact Fee Nexus Study
31 Table 5.5: General Government Facilities CIP

Fee Schedule
Table 5.6 shows the maximum justified general government facilities fee schedule. The City can adopt any fee up to this amount. The cost per capita is converted to a fee per unit of new development based on dwelling unit and employment densities (persons per dwelling unit or employees per 1,000 square feet of nonresidential building space). The fee per dwelling unit is converted into a fee per square foot by dividing the fee per dwelling unit by the assumed average square footage of a dwelling unit.

The total fee includes a two percent (2.0%) administrative charge to fund costs that include: a standard overhead charge applied to City programs for legal, accounting, and other departmental and administrative support, and fee program administrative costs including revenue collection, revenue and cost accounting and mandated public reporting.

Table 5.6: Maximum Justified General Government Facilities Fee Schedule

Quantity Units Unit Cost Project Cost
- sq. ft. 350$ -$
Total Cost - Planned Facilities -$
Sources: City of Bell; Willdan Financial Services.

A B C = A x B D = C x 0.02 E = C + D F = E / 1,000
Cost Per Admin Fee per
Land Use Capita Density Base Fee 1 Charge1, 2 Total Fee1 Sq. Ft.

Residential - per Dwelling Unit
Single Family 522$ 3.98 2,078$ 42$ 2,120$ 1.41$ Multifamily 522 3.05 1,592 32 1,624 1.86 Nonresidential - per 1,000 Sq. Ft.

Commercial 162$ 2.12 344$ 7$ 351$ 0.35$ Office 162 3.26 527 11 538 0.54 Industrial 162 1.16 188 4 192 0.19 1 Fee per dwelling unit or per 1,000 square feet of nonresidential.

Sources: Tables 2.2 and 5.3.
2 Administrative charge of 2.0 percent for (1) legal, accounting, and other administrative support and (2) impact fee program administrative costs including revenue collection, revenue and cost accounting, mandated public reporting, and fee justification analyses.

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City of Bell Development Impact Fee Nexus Study
32 6. Parking Facilities
The purpose of the parking in -lieu fee is to provide developers with an option to pay an established fee rather than provide the parking spaces onsite required by the Bell Municipal Code zoning requirements. The cost of planned facilities to accommodate the parking spaces otherwise required on site as part of projects determines the maximum justified Parking In -Lieu Fee. This chapter presents the nexus analysis, showing the need and projected cost of parking facilities to maintain the overall parking availability in Bell in accordance with the zoning requirements.

Parking Requirements
Table 6.1 shows the City of Bell parking requirements for residential and nonresidential development. Refer to the City’s Municipal Code for the full requirements as specific by the municipal code.

Parking Facilities Unit Costs
Table 6.2 details the unit cost per parking space to develop multistory above ground parking structures in Bell. The municipal code mandated parking space of nine by twenty feet (9’ x 19’) requires 301 square feet of floor space and additional ninety square feet (90 square feet) of space for entries, exits, ramps and circulation. A prototypical four -story parking garage requires 75 square feet of land per parking space. Table 6.2 calculates typical construction cost in Los Angeles County for a multistory parking garage and land acquisition cost in the City of Bell to determine a facility unit cost per city parking space of $44,277.

Required Parking
Spaces per Unit 1
Dwelling Units
Single Family 2.0
Multifamily 2.0
Total
Building Square Feet (000s)
Commercial 2.5
Office 2.5
Industrial 2.5
Total
Table 6.1: Parking Requirements
1Cudahy Municipal Code requires one space per 400 square feet of Commercial.

Source: City of Bell.

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City of Bell Development Impact Fee Nexus Study
33 Use of Fee Revenue
The City plans to use parking in lieu fee revenue to purchase land and construct improvements to add to parking space inventory. The City may only use parking in lieu fee revenue to provide facilities and intensify usage of existing facilities needed to serve new development.

Fee Schedule
Table 6.3 shows the maximum justified parking in -lieu fee schedule per required parking space.

The maximum justified fees are based on the cost per parking space shown in Table 6.2. The cost per space can be used to determine the fee for projects that meet a fraction of the on -site parking space requirement. The total fee includes a two percent ( 2%) administrative charge to fund costs that include: a standard overhead charge applied to all City programs for legal, accounting, and other departmental and administrative support, and fee program administrative costs including revenue collection, revenue and cost accounting, mandated public reporting, and fee justification analyses.

Table 6.2: Parking Facility Unit Costs
Parking
Space 1
Unit Cost per
Sq. Ft.2
Total Cost
Per Space
Aboveground Parking Facility 3
Construction 301 Sq. ft. 132$ 39,786$
Land 75 Sq. ft. 60 4,492
Total 44,277$
2 WGI: Parking Stucture Cost Outlook, 2023. Assumes additional 35% soft costs. 1 Assumes 171 sqft (9' x 19') for standard parking spaces. Circulation and entry/exit assumes 130 square feet per space, total 301 square feet.
3 Prototypical 4 story parking structure, larger or smaller structure would change ratio of parking spaces to land use.

Sources: City of Bell; WGI; Willdan Financial Services.

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City of Bell Development Impact Fee Nexus Study
34 Table 6.3: Maximum Justified Parking In Lieu Fee Schedule A B C = A x B D = C x 0.02 E = C + D
Land Use
Cost Per
Space
Required
Spaces Base Fee 1
Admin
Charge1, 2 Total Fee1
Fee per
SqFt.

Residential - per Dwelling Unit
Single Family 44,277$ 2.0 88,554$ 1,771$ 90,325$ 60.22$ Multifamily 44,277 2.5 110,693 2,214 112,907 129.04 Nonresidential - per 1,000 Sq. Ft.

Commercial 44,277$ 4.0 177,109$ 3,542$ 180,651$ 180.65$ Office 44,277 3.3 146,115 2,922 149,037 149.04 Industrial 44,277 2.0 88,554 1,771 90,325 90.33 1 Fee per dwelling unit, per 1,000 square feet of nonresidential. 2 Administrative charge of 2.0 percent for (1) legal, accounting, and other administrative support and (2) impact fee program administrative costs including revenue collection, revenue and cost accounting, mandated public reporting, and fee justification analyses.

Sources: Tables 6.1 and 6.2; Willdan Financial Services.

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35 7. Public Safety Facilities
The purpose of this fee is to ensure that new development funds its fair share of public safety facilities. A fee schedule is presented based on the system standard of public safety facilities in the City of Bell to ensure that new development provides adequate funding to meet its needs.

Service Population
Public safety facilities serve both residents and businesses. Therefore, demand for services and associated facilities are based on the City’s service population including residents and workers.

Table 7.1 shows the existing and future projected service population for public safety facilities.

While specific data is not available to estimate the actual ratio of demand per resident to demand by businesses (per worker) for this service, it is reasonable to assume that demand for these services is less for one employee compared to one resident, because nonresidential buildings are typically occupied less intensively than dwelling units. The 0.31 -weighting factor for workers is based on a 40-hour workweek divided by the total number of non-work hours in a week (128) and reflects the degree to which nonresidential development yields a lesser demand for public safety facilities.

Table 7.1: Public Safety Facilities Service
Population

A B A x B = C
Persons
Weighting
Factor
Service
Population
Residents
Existing (2023) 32,689 1.00 32,689
New Development 2,226 1.00 2,226
Total (Buildout) 34,915 30,607
Workers
Existing (2023) 9,221 0.31 2,859
New Development 3,979 0.31 1,233
Total (Buildout) 13,200 11,526
Combined Residents and Weighted Workers
Existing (2023) 35,548
New Development 3,459
Total (Buildout) 39,007
Sources: Table 2.1; Willdan Financial Services.
1 Workers are weighted at 0.31 of residents based on a 40 hour work week out of a possible 128 non-work hours in a week (40/128 = 0.31)

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City of Bell Development Impact Fee Nexus Study
36 Existing Facility Inventory
The City’s public safety facilities inventory is comprised of a share of space at City Hall, support facilities, vehicles and trailers. Table 7.2 displays the City’s existing inventory of public safety facilities, including equipment and vehicles. In total the City owns $ 24.0 million worth of public safety facilities.

Table 7.2: Existing Public Safety Facilities Inventory

Planned Facilities
Table 7.3 summarizes the planned public safety facilities needed to serve the City, as identified by City staff . The City plans to purchase new vehicles and equipment and to make capacity expanding upgrades to its radio system and network programs . The total cost of the identified facilities is $____ million.

Table 7.3: Planned Public Safety Facilities

Cost Allocation
Existing Level of Service
Table 7.4 shows the calculation of the existing facilities standard per capita for general government facilities. This cost is calculated by dividing the total existing value of all general Inventory Units Unit Cost
Replacement
Cost
Police Station
Land 1.02 acres 2,600,000$ 2,657,000$
Building 11,127 sq. ft. 1,000 11,127,000 Subtotal 13,784,000$
Fire Station
Land 0.52 acres 2,600,000$ 1,357,000$
Building 5,685 sq. ft. 1,000 5,685,000 Subtotal 7,042,000$
Vehicles and Equipment
Equipment 1,100,000$
Vehicles 2,049,010
Subtotal 3,149,010$
Total Value - Existing Facilities 23,975,010$
Sources: City of Bell; Willdan Financial Services.

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City of Bell Development Impact Fee Nexus Study
37 government facilities by the existing service population. The cost per capita is multiplied by the worker weighting factor of 0.31 to determine the cost per worker.

Table 7.4: Existing Level of Service

Value of Existing Facilities $ 23,975,010
Existing Service Population 39,007

Cost per Capita $ 615

Facility Standard per Resident $ 615
Facility Standard per Worker1 191

1 Based on a weighing factor of 0.31.

Sources: Tables 7.1 and 7.2.

Fee Revenue Projection
The City plans to use public safety facilities fee revenue to construct improvements and acquire capital facilities and equipment to add to the system of public safety facilities to serve new development. Table 7.5 details a projection of fee revenue, based on the service population growth increment identified in Table 7.1. The City should program public safety facilities fee revenue to capacity expanding projects through its CIP and budget process.

The City will need to use alternative funding sources to fund existing development’s share of the planned public safety facilities. Potential sources of revenue include but are not limited to existing or new general fund revenues, existing or new taxes, and grants.

Table 7.5: Revenue Projection - Existing Standard

Cost per Capita $ 522
Growth in Service Population (2023 to Buildout) 3,459 Projected Fee Revenue $ 1,805,598

Sources: Tables 7.1 and 7.3.

Fee Schedule
Table 7.6 shows the maximum justified public safety facilities fee schedule. The City can adopt any fee up to this amount. The cost per capita is converted to a fee per unit of new development

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City of Bell Development Impact Fee Nexus Study
38 based on dwelling unit and employment densities (persons per dwelling unit or employees per 1,000 square feet of nonresidential building space). The fee per dwelling unit is converted into a fee per square foot by dividing the fee per dwelling unit by the assumed average square footage of a dwelling unit.

Table 7.6: Public Safety Facilities Fee - Maximum Justified Fee Schedule

A B C = A x B D = C x 0.02 E = C + D
Cost Per Admin Fee per
Land Use Capita Density Base Fee 1 Charge1, 2 Total Fee1 Sq. Ft.

Residential - per Dwelling Unit
Single Family 615$ 3.98 2,448$ 49$ 2,497$ 1.66$ Multifamily 615 3.05 1,876 38 1,913 2.19 Nonresidential - per 1,000 Sq. Ft.

Commercial 191$ 2.12 405$ 8$ 413$ 0.12$ Office 191 3.26 623 12 635 0.18 Industrial 191 1.16 222 4 226 0.06 1 Fee per dwelling unit or per 1,000 square feet of nonresidential.

Sources: Tables 2.2 and 7.3.
2 Administrative charge of 2.0 percent for (1) legal, accounting, and other administrative support and (2) impact fee program administrative costs including revenue collection, revenue and cost accounting, mandated public reporting, and fee justification analyses.

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39 8. Sewer Facilities
.

Sewer Demand
Estimates of new development and its consequent increased sewer demand provide the basis for calculating the sewer facilities fee. The need for sewer facilities improvements is based on the sewer demand placed on the system by development. A typical measure of demand is a flow generation rate, expressed as the number of gallons per day generated by a specific type of land use. Flow generation rates are a reasonable measure of demand on the City’s system of sewer improvements because they represent the average rate of demand that will be placed on the system per land use designation.

Table 8.1 shows the calculation of equivalent dwelling unit (EDU) demand factors based on flow generation by land use category. The flow generation estimates based on data from the City’s Wastewater Master Plan. EDU factors express water flow from each land use in terms of the flow generated by a single-family dwelling unit.

Table 8.1: Sewer Demand by Land Use

EDU Generation by New Development
Table 8.2 shows the estimated EDU generation from new development through 2045. The EDU factors from Table 8.1 are multiplied by the land use assumptions from Error! Reference source not found. to estimate total EDUs in the base year, at the planning horizon and for new development. New development will generate approximately 2,527 new EDUs through 204 5, comprising 17.0% of sewer demand in the City at that time.

Land Use Type
Sewerage
Factor1 Density2
Sewerage
Factor per
DU or 1,000
Sq. Ft.

Equivalent
Dwelling
Unit (EDU)
Residential Dwelling Unit
Single Family 1 1.000 1.00 1.00 Multifamily 1 1.000 1.00 1.00 Nonresidential - per 1,000 Sq. Ft.

Commercial 2 4,000 0.50 0.50 Office 5 8,000 0.63 0.63
Industrial 5 20,000 0.25 0.25 1 Rate Study Factor for Demand from Rate Study.
2 Units of SF attributable to Sewerage Factor.

Sources: City of Bell, Sewer Rate Study; Willdan Financial Services.

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City of Bell Development Impact Fee Nexus Study
40 Table 8.2: Sewer Facilities Equivalent Dwelling Units

Existing Facilities
Table 8.3 identifies the existing sewer facilities in the City, along with their age and depreciated value.

Table 8.3: Existing Sewer Facilities

Facility Needs and Costs
Table 8.4 identifies the planned sewer facilities to be funded by the fee. The new sewer facilities were all identified in the City’s Facility Plan. Since sewer facilities projects will benefit both existing development and new development, capacity expanding projects are allocated to new development based on new development’s share of sewer demand at the planning horizon.

Projects that do not expand capacity are not allocated to the impact fee.

Land Use EDU Factor
Units /
1,000 SF EDUs
Units /
1,000 SF EDUs
Units /
1,000 SF EDUs
Residential - per Dwelling Unit
Single Family 1.00 5,766 5,766 373 373 6,139 6,139 Multifamily 1.00 3,749 3,749 243 243 3,992 3,992 Subtotal 9,515 9,515 616 616 10,131 10,131 Nonresidential - per 1,000 Sq. Ft.

Commercial 0.50 3,548 1,774 1,531 766 5,079 2,540 Office 0.63 4,572 2,880 1,973 1,243 6,545 4,123 Industrial 0.25 1,101 275 475 119 1,576 394 Subtotal 9,221 4,929 3,979 2,128 13,200 7,057 Total 14,444 2,744 17,188

84.0% 16.0% 100%
Sources: Tables 2.1 and 8.1
2023 Growth 2023 to 2045 Total - 2045
Project
Year
Installed
Expected
Lifespan
Years in
Service
Current
Replacement
Value
Percent
Depreciated Depreciation
Remaining
Replacement
Cost
Cost Per
EDU
Existing Residential 60,000 lf 1920 100 104$ 34,424,419$ 100.0% 34,424,419 -$ Existing Residential 60,000 1940 100 84$ 34,424,419$ 84.0% 28,916,512 5,507,907$ Existing Residential 60,000 1960 100 64$ 34,424,419$ 64.0% 22,031,628 12,392,791$ Existing Industrial 5,230 lf 1975 100 49 3,000,662 49.0% 1,470,324 1,530,338$ Total 185,230 106,273,917$ 19,431,035$ $1,345
1 2019 costs adjusted for inflation to 2023 dollars using the Engineering News Record's Construction Cost Index.

Sources: City of Bell; Engineering News Record, Construction Cost Index; Table 8.1

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City of Bell Development Impact Fee Nexus Study Update
41 Table 8.4: Sewer Facilities Allocation to New Development

Project Cost (2019) Cost (2023) 1
Allocation
to New
Developme
nt
Cost Allocated
to New
Development
Area 2 Sewer Main, Bypass, Traffic Control 1,131,799$ 1,352,989$ 17.0% 230,008$ Area 14 Sewer Main, Bypass, Traffic Control 1,248,000 1,491,899 17.0% 253,623 Area 33 Sewer Main, Bypass, Traffic Control 1,390,600 1,662,368 17.0% 282,603 Area 35 Sewer Main, Bypass, Traffic Control 2,481,350 2,966,286 17.0% 504,269 6,251,749$ 7,473,542$ 1,270,502$
1 2019 costs adjusted for inflation to 2023 dollars using the Engineering News Record's Construction Cost Index.

Sources: City of Bell; Engineering News Record, Construction Cost Index; Table 8.1

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City of Bell Development Impact Fee Nexus Study Update
42 Cost per EDU
The cost of planned facilities allocated to new development in Table 8. is divided by the total growth in EDUs to determine a cost per EDU. Table 8.5 displays this calculation.

Table 8.5: Cost per EDU

Fee Schedule
The maximum justified fee for sewer facilities is shown in Table 8.6. The cost per EDU is converted to a fee per unit of new development based on the EDU factors shown in Table 8.1.

The fee per average dwelling unit is converted into a fee per square foot by dividing the fee per dwelling unit by the assumed average square footage of a dwelling unit.

The total fee includes an administrative charge to fund costs that include: (1) a standard overhead charge applied to all City programs for legal, accounting, and other departmental and administrative support, (2) capital planning, programming, project management costs associated with the share of projects funded by the facilities fee, and (3) fee program administrative costs including revenue collection, revenue and cost accounting, mandated public reporting, and fee justification analyses.

Existing
Depreciated Cost of Existing Facilities 19,431,035$
Exusting EDUs 14,444
Cost per EDU 1,345
Proposed
Cost Allocated to New Development 1,195,767$
Growth in EDUs (2023 to 2045) 2,744
Cost per EDU $436
Total cost per EDU 1,781$
Sources: Tables 8.2, 8.3 and 8.4

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City of Bell Development Impact Fee Nexus Study Update
43 Table 8.6: Sewer Facilities Impact Fee Schedule
A B C = A x B D = C x 0.02 E = C + D E / Average
Cost Per
EDU EDU Factor Base Fee 1
Admin
Charge1, 2 Total Fee1
Fee per
Sq. Ft.3
Residential Dwelling Unit 4
Single Family 1,781$ 1.00 1,781$ 36$ 1,817$ 1.21 Multifamily 1,781 1.00 1,781 36$ 1,817 2.08 Nonresidential - per 1,000 Sq. Ft.

Commercial 1,781$ 0.50 891$ 18$ 909$ 0.91$ Office 1,781 0.63 1,122 22 1,144 1.14 Industrial 1,781 0.25 445 9 454 0.45 1 Fee per average sized dwelling unit or per 1,000 square feet of nonresidential building space.

Sources: Tables 8.1 and 8.4
2 Administrative charge of 2.0 percent for (1) legal, accounting, and other administrative support and (2) impact fee program administrative costs including revenue collection, revenue and cost accounting, mandated public reporting, and fee justification analyses. 3 Assumes an average of 1,602 square feet per dwelling unit in the State of California per the 2019 American Housing Survey. 4 Average EDU factor per residential dwelling unit weighted by projected single family and multifamily development.

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City of Bell Development Impact Fee Nexus Study Update
44 9. AB 602 Requirements
On January 1, 2022, new requirements went into effect for California jurisdictions implementing impact fees. Among other changes, AB 602 added Section 66016.5 to, the Government Code, which set guidelines for impact fee nexus studies. Three key requirements from that section which concern the nexus study are reproduced here:
66016.5. (a) (2) When applicable, the nexus study shall identify the existing level of service for each public facility, identify the proposed new level of service, and include an explanation of why the new level of service is appropriate.
66016.5. (a) (4) If a nexus study supports the increase of an existing fee, the local agency shall review the assumptions of the nexus study supporting the original fee and evaluate the amount of fees collected under the original fee.
66016.5. (a) (6) Large jurisdictions shall adopt a capital improvement plan as a part of the nexus study.

Compliance with AB 602
The following sections describe this study’s compliance with the new requirements of AB 602. 66016.5. (a) (2) - Level of Service

1. For fees calculated under the existing standard methodology, the fees are calculated such that new development funds facilities at the existing level of service. These fee categories are general government and park and recreation facilities. The existing level service in terms of the existing facility investment per capita shown in each corresponding chapter.

2. For the fees calculated under the system standard methodology, the maximum justified fees represent an increase in the facility level of service. The public safety facilities fees, transportation facilities fees and general plan update fees calculated under this methodology. The increased level of service is required to fund new development’s fair share of facilities identified by the City as necessary to serve the entire City . New development will not fund the entirety of the increase in level of service, rather, it will fund a share of the increased level of service represented by the planned facilities. The City will have to fund existing development’s share of the increase level of service through any other funding source.
66016.5. (a) (4) – Review of Original Fee Assumptions
This study is the first impact fee nexus study completed in Bell, so there are no fee assumptions to review.
66016.5. (a) (6) – Capital Improvement Plan
The Capital Improvement Plan for this nexus study is comprised of the identified planned facilities within each facility fee chapter. Planned facilities identified in this document are sourced from the City’s current adopted CIP and City staff. Adoption of this nexus study would approve the planned facilities identified herein as the Capital Improvement Plan for this nexus study.

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45 10. Implementation
Impact Fee Program Adoption Process
Impact fee program adoption procedures are found in the California Government Code section 66016. Adoption of an impact fee program requires the City Council to follow certain procedures including holding a public hearing. Data, such as an impact fee report, must be made available at least 10 days prior to the public hearing. The City’s legal counsel should be consulted for any other procedural requirements as well as advice regarding adoption of an enabling ordinance and/or a resolution. After adoption there is a mandatory 60 -day waiting period before the fees go into effect.

Inflation Adjustment
The City can keep its impact fee program up to date by periodically adjusting the fees for inflation.

Such adjustments should be completed regularly to ensure that new development will fully fund its share of needed facilities. We recommend that the California Construction Cost Index (https://www.dgs.ca.gov/RESD/Resources/Page-Content/Real-Estate-Services-Division- Resources-List-Folder/DGS-California-Construction-Cost-Index-CCCI) be used for adjusting fees for inflation. The California Construction Cost Index is based on data from the Engineering News Record and is aggregated and made available for free by the State of California.

The fee amounts can be adjusted based on the change in the index compared to the index in the base year of this study (2023).

While fee updates using inflation indices are appropriate for periodic updates to ensure that fee revenues keep up with increases in the costs of public facilities, the City will also need to conduct more extensive updates of the fee documentation and calculation (such as this study) when significant new data on growth forecasts and/or facility plans become available. Note that decreases in index value will result in decreases to fee amounts.

Reporting Requirements
The City will comply with the annual and five -year reporting requirements of the Mitigation Fee Act. For facilities to be funded by a combination of public fees and other revenues, identification of the source and amount of these non -fee revenues is essential. Identification of the timing of receipt of other revenues to fund the facilities is also important.

Table 10.1 summarizes the annual and five -year reporting requirements identified in the Mitigation Fee Act.

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City of Bell Development Impact Fee Nexus Study

46 Table 10.1: Mitigation Fee Act - Annual and Five-year Administrative Requirements CA Gov't Code
Section Timing Reporting Requirements 1
Recommended
Fee Adjustment
66001.(d)
The fifth fiscal year following the
first deposit into the account or
fund, and every five years
thereafter
(A) Identify the purpose to which the fee is to be put. (B) Demonstrate a reasonable relationship between the fee and the purpose for which it is charged.
(C) Identify all sources and amounts of funding anticipated to complete financing in incomplete improv ements.
(D) Designate the approximate dates on which supplemental funding is expected to be deposited into the appropriate account or fund.

Comprehensive
Update
66006. (b) Within 180 days after the last
day of each fiscal year
(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 the fees collected and the interest earned. (E) An identification of each public improvement on which fees were expended including share funded by fees.
(F) An identification of an approximate date by which the construction of the public improv ement will commence.
(G) A description of any potential interfund transfers. (H) The amount of refunds made (if any).

Inflationary
Adjustment
1 Edited for brevity. Refer to the government code for full description.

Sources: California Government Code §6601 and §6606.

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City of Bell Development Impact Fee Nexus Study
47 Programming Revenues and Projects with the CIP
The City maintains a Capital Improvement Program (CIP) to plan for future infrastructure needs.

The CIP identifies costs and phasing for specific capital projects. The use of the CIP in this manner documents a reasonable relationship between new development and the use of those revenues.

The City may decide to alter the scope of the planned projects or to substitute new projects if those new projects continue to represent an expansion of the City’s facilities and provide benefit to new development. If the total cost of facilities varies from the total cost used as a basis for the fees, the City should consider revising the fees accordingly.

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48 11. Mitigation Fee Act Findings
Public facilities fees are one -time fees typically paid when a building permit is issued and imposed on development projects by local agencies responsible for regulating land use (cities and counties). To guide the widespread imposition of public facilities fees the State Legislature adopted the Mitigation Fee Act (the Act) with Assembly Bill 1600 in 1987 and subsequent amendments. The Act, contained in California Government Code Sections 66000 through 66025, establishes requirements on local agencies for the imposition and administration of fee programs.

The Act requires local agencies to document five findings when adopting a fee.

The five statutory findings required for adoption of the public facilities fees documented in this report are presented in this chapter and supported in detail by the preceding chapters . All statutory references are to the Act.

Purpose of Fee
§ Identify the purpose of the fee (§66001(a)(1) of the Act).

Development impact fees are designed to ensure that new development will not burden the existing service population with the cost of facilities required to accommodate growth. The purpose of the fees documented by this report is to provide a funding source from new development for capital improvements to serve that development. The fees advance a legitimate City interest by enabling the City to provide public facilities to new development.

Use of Fee Revenues
§ Identify the use to which the fees will be put. If the use is financing facilities, the facilities shall be identified. That identification may, but need not, be made by reference to a capital improvement plan as specified in §65403 or §66002, may be made in applicable general or specific plan requirements, or may be made in other public documents that identify the facilities for which the fees are charged (§66001(a)(2) of the Act).

Fees documented in this report, if enacted by the City, would be used to fund expanded facilities to serve new development. Facilities funded by these fees are designated to be located within the City limits . Fees addressed in this report have been identified by the City to be restricted to funding the following facility categories: transportation facilities, parks and recreation facilities, general government facilities, public safety facilities and general plan updates.

Benefit Relationship
§ Determine the reasonable relationship between the fees' use and the type of development project on which the fees are imposed (§66001(a)(3) of the Act).

The City will restrict fee revenue to the acquisition of land, construction of facilities , infrastructure and buildings, and purchase of related equipment, furnishings, vehicles, and services used to serve new development. Facilities funded by the fees are expected to provide a citywide network of facilities accessible to the additional residents and workers associated with new development.

Under the Act, fees are not intended to fund planned facilities needed to correct existing deficiencies. Thus, a reasonable relationship can be shown between the use of fee revenue and the new development residential and non-residential use classifications that will pay the fees.

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City of Bell Development Impact Fee Nexus Study
49 Burden Relationship
§ Determine the reasonable relationship between the need for the public facilities and the types of development on which the fees are imposed (§66001(a)(4) of the Act).

Facilities need is based on a facility standard that represents the demand generated by new development for those facilities. For each facility category, demand is measured by a single facility standard that can be applied across land use types to ensure a reasonable relationsh ip to the type of development. For some facility categories service population standards are calculated based upon the number of residents associated with residential development and the number of workers associated with non-residential development. To calculate a single, per capita standard, one worker is weighted differently than one resident based on an analysis of the relative use demand between residential and non-residential development.

The standards used to identify growth needs are also used to determine if planned facilities will partially serve the existing service population by cor recting existing deficiencies. This approach ensures that new development will only be responsible for its fair share of planned facilities, and that the fees will not unfairly burden new development with the cost of facilities associated with serving the existing service population.

Chapter 2, Growth Forecasts provides a description of how service population and growth forecasts are calculated. Facility standards are described in the Facility Standard sections of each facility category chapter.

Proportionality
§ Determine how there is a reasonable relationship between the fees amount and the cost of the facilities or portion of the facilities attributable to the development on which the fee is imposed (§66001(b) of the Act).

The reasonable relationship between each facilities fee for a specific new development project and the cost of the facilities attributable to that project is based on the estimated new development growth the project will accommodate. Fees for a specific project are based on the project’s size. Larger new development projects can result in a higher service population resulting in higher fee revenue than smaller projects in the same land use classification. Thus, the fees ensure a reasonable relationship between a specific new development project and the cost of the facilities attributable to that project.

See Chapter 2, Growth Forecasts, or the Service Population sections in each facility category chapter for a description of how service populations or other factors are determined for different types of land uses. See the Fee Schedule section of each facility category chapter for a presentation of the maximum justified facilities fees.

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Resolution 2024-49

Page 1 ends

RESOLUTION NO. 2024-49

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF BELL ADOPTING THE DEVELOPMENT IMPACT
FEES

WHEREAS, the City Council approved an agreement with Willdan Financial Services to prepare a Development Impact Fee study; and

WHEREAS, on August 28, 2024, the City Council received a presentation by Willdan Financial Services, which established guidelines to conduct a Development Impact Fee Study ; and

WHEREAS, The Development Impact Fees (DIF) Study is designed to address resident concerns regarding the impact new development will have on future City growth. DIFs are paid by developers to mitigate the impacts of new development; and

WHEREAS, the City Clerk posted a notice of public hearing on October 11, 2024; and

WHEREAS, City staff is recommending the City Council adopt Resolution 2024-49 which adds the Development Impact Fees to the City Master Fee Schedule.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF BELL DOES HEREBY FIND AND RESOLVE AS FOLLOWS:

SECTION 1. Adopts Resolution 2024-49 establishing and approving the Development Impact Fees:

SECTION 2. The City Clerk shall certify to the adoption of this Resolution and shall cause the same to be processed in the manner required by law.

PASSED, APPROVED AND ADOPTED on this 13
th day of November 2024.

___________________________
Ali Saleh, Mayor
ATTEST:

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Resolution 2024-49

Page 2 ends

__________________ _______
Angela Bustamante, City Clerk

APPROVED AS TO FORM:

______________________
David Aleshire, City Attorney

CERTIFICATE OF ATTESTATION AND ORIGINALITY

I, Angela Bustamante, City Clerk of the City of Bell, hereby attest to and certify that the foregoing resolution is the original resolution adopted by the Bell City Council at its regular meeting held on the 13
th day of November 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
____________________________
Angela Bustamante, City Clerk

Page 109 ends

UNDER SEPARATE COVER
AGENDA ITEM NO. 3

3. HDL Business License Tax Presentation. (City Council)

Recommendation: It is recommended that the City
Council receive and file the presentation.

Page 110 ends

AGENDA ITEM 4

DATE: November 13, 2024

TO: Mayor and Members of the City Council

FROM: Rickey S. Manbahal, Finance Director

APPROVED Michael L. Antwine II (e-signature)
BY: __________________________________
Michael L. Antwine II, City Manager

SUBJECT: Request to Set a Public Hearing on January 22, 2025 at 6:30 p.m. to Consider updating and establishing User and Regulatory Fees for various City services.

RECOMMENDATION:

It is recommended that the City Council schedule a Public Hearing on Wednesday, January 22, 2025 at 6:30 p.m. to consider updating and establishing U ser and R egulatory Fees for various City services.

BACKGROUND:

The City commissioned a U ser and Regulatory Fee study which commenced in FY 2023/24 by ClearSource Financial Consulting (ClearSource). The study provides an up-to-date analysis of the City’s current costs of providing fee-related services.

The proposed fees are set forth in a comprehensive user and regulatory fee schedule for consideration and adoption by Council resolution. User and regulatory fees are set based on Council direction.

The services for which a city imposes a user or regulatory fee typically derive from an individual person or entity’s action, request, or behavior. Therefore, except in cases where there is an overwhelming public benefit generated by a city’s involvement in the individual action, a fee for service ensures that the individual bears most, if not all, of the cost incurred by the City to provide that service. When a fee targets “100% or full cost recovery,” the individual bears the entirety of the cost. When a fee targets less than full cost recovery, another City revenue source – in most cases, the General Fund – subsidizes the individualized activity.

Local Government Best Practices and California Law statutes are in harmony: User and regulatory fees should be set according to the estimated reasonable cost of service and should bear a fair and reasonable relationship to the payer’s burdens on, or benefits received from the activities and/or services provided by the City. Additionally, ongoing review and adjustment of fees provides multiple benefits, including:

• Increasing the availability of General Fund revenues to be used for services and activities available to all residents and businesses, such as public safety and parks services.

City of Bell
Agenda Report

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AGENDA ITEM 4
• Keeping pace with general cost inflation.
• Avoiding fee spikes that are more likely to occur when municipalities leave fees unchanged for a multi-year period.
• Providing fee payers, City Staff, and City policymakers with a pattern of consistency that provides information for forecasting and decision-making purposes. • Helps meet fee-payer service level expectations by collecting fees to fund the existing level of services provided.
• Encouraging generational equity among fee payers by avoiding long-term stagnation of fees followed by significant fee increases.

FISCAL IMPACT:

NONE

ATTACHMENTS:

NONE

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AGENDA ITEM 5

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City of Bell
Agenda Report

DATE: November 13, 2024

TO: Honorable Mayor and Members of the City Council

FROM: Carlos Isals, Chief of Police
John Oskoui, P.E., Interim Public Works Director

PREPARED
BY: German Alvarez, Associate Civil Engineer

APPROVED Michael L. Antwine II (e-signature)
BY: ________________________________________
Michael L. Antwine II, City Manager

SUBJECT: Consideration of Approving Amendment No.1 to the Agreement between the City of Bell and HQE Systems, Inc.

RECOMMENDATION:

It is recommended that the City Council:

1. Approve Amendment No. 1 to the Agreement between the City of Bell and HQE Systems, Inc. by increasing the contract sum from $41,304.46 to $88,121.55; and

2. Approve a ppropriation of $20,184.96 from the American Rescue Plan Act 2021 (ARPA) fund, and $26,632.13 of Homeland Security Grant fund to cover the increase in contract sum of the Agreement between the City of Bell and HQE Systems, Inc.

BACKGROUND:

The City has been evaluating the overall security of its facilities. More specifically, the focus has been on securing City facilities against unauthorized access.

In 2023, the City’s Police and Public Works staff review ed the existing conditions of the Police Department facility and outlined the framework for providing adequate level of security protocol to provide access to the facility by authorized personnel.

On March 05, 2024; a Request for Proposals for design, configuration, procurement and installation of a complete building Access Control System was issued. The identified scope of work was installation of access control devices at s eventeen (17) access points throughout the Police Department facility along with installation of all necessary hardware and programming.

The City received six (6) proposals from qualified firms to complete the required work.

A Review Committee comprised of members of the Police and Public Works departments performed a comprehensive review of the six (6) received proposals and determined HQE Systems, Inc. was the most qualified and responsive proposer to provide a new Access Control System for the Police Department facility.

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AGENDA ITEM 5

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On June 26, 2024; the City Council approved an Agreement for Public Works Services between the City and HQE Systems, Inc. in the amount of $41,304.46 for installation of access control hardware and other necessary work in the Police Department facility.

DISCUSSION:

HQE Systems, Inc. has started the preliminary phase for installation of the access control system for the designated seventeen (17) access points in the Police Department f acility. After commencement of the project, the Police Department staff have identified the need to install access control hardware for an additional ten (10) access points.

Staff has received a proposal from HQE Systems, Inc. for completing the additional work in the Police Department facility at a cost of $26,632.13 (Attachment 3).. Analysis of the said proposal indicated that it is in line with the original bid submitted by H QE Systems, Inc. It is noteworthy to mention that HQE Systems, Inc. original proposed fee of $41,304.46 for the installation of access hardware and supplemental products and services was $ 16,216.58 less than the proposal of the next qualified bidder which was $57,521.04. Given that HQE Systems, Inc. has provided competitive and very reasonable pricing for the additional work, staff also inquired from HQE Systems, Inc. about the cost of installing a standalone access control system for seven (7) access points in the City Hall. H QE Systems, Inc. has submitted a proposal for completing the necessary work in the City Hall for a fee of $20,184.96 (Attachment 4). This proposed fee is also in alignment with the previously submitted proposals by HQE Systems, Inc.

Per Section 1.10 of the Agreement, titled Additional Services (cited below), the City has the option to order extra work beyond that specified in the Scope of Services or make changes by altering, adding to or deducting from said work.

Additional Services.

“City shall have the right, subject to state law and the City’s Municipal Code, at any time during the performance of the services, without invalidating this Agreement, to order extra work beyond that specified in the Scope of Services or make changes by altering, adding to or deducting from said work. No such extra work may be undertaken unless a written order is first given by the Project Manager to the Contractor, incorporating therein any adjustment in (i) the Contract Sum for the actual costs of the extra work, and/or (ii) the time to perform this Agreement, which said adjustments are subject to the written approval of the Contractor. Any increase in compensation for extra work shall require the approval of City Council unless the City Council has previously authorized the City Manager to approve an increase in compensation and the amount of the increase does not exceed such authorization. It is expressly understood by Contractor that the provisions of this Section shall not apply to services specifically set forth in the Scope of Services. Contractor hereby acknowledges that it accepts the risk that the services to be provided pursuant to the Scope of Services may be more costly or time consuming than Contractor anticipates and that Contractor shall not be entitled to additional compensation therefor. City may in its sole and absolute discretion have similar work done by other contractors. No claims for an increase in the Contract Sum or time for performance shall be valid unless the procedures established in this Section are followed.”

Staff is of the opinion that completion of the work as related to installation of access control hardware at the additional access points in the Police Department f acility and a new access control system in the City Hall, can be achieved in the most efficient and economically beneficial

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AGENDA ITEM 5

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manner possible by utilizing the services of HQE Systems, Inc. based on their proposal s for completing the additional work. Therefore, staff recommends that the City Council approve Amendment No 1. to the Agreement for Public Works Services with HQE Systems, Inc. by increasing the contract amount from $ 41,304.46 to $88,121.55.

FISCAL IMPACT:

There will be no impact to the General Fund. The project will be funded utilizing the American Rescue Plan Act 2021 (ARPA), and Homeland Security Grant funds.

ATTACHMENTS:

1. Amendment No.1 to Agreement with HQE Systems, Inc.

2. Agreement between the City of Bell and HQE Systems, Inc.

3. Proposal for Additional Work-Police Department Facility

4. Proposal for Additional Work- City Hall

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ATTACHMENT 1
01135.0006/1031703.1
AMENDMENT NO. 1

TO AGREEMENT FOR PUBLIC WORKS SERVICES

BETWEEN THE CITY OF BELL AND
HQE SYSTEMS, INC.

This AMENDMENT NO. 1 TO AGREEMENT FOR PUBLIC WORKS SERVICES (“Amendment”), by and between the CITY OF BELL (“City”), a California charter city, and HQE SYSTEMS, INC., a California corporation (“Con tractor”), is effective as of the ____ day of November, 2024. City and Contractor may be referred to, individually or collectively, as “Party” or “Parties”.

RECITALS

A. City and Contractor entered into that certain Agreement for Public Works Services dated September 5, 2024 (“Agreement”) whereby Contractor agreed to install an Access Control System for the City’s Police Department facility.

B. The Parties desire to amend the Agreement by expanding the scope of work and increasing the contract sum by $46,817.09.

C. By this Amendment No. 1, the City and Contractor now desire to expand the scope of work and increase contract sum from $41,304.46 to $88,121.55.

D. Except as amended hereby, this extension is subject to the same terms and conditions as provided in the Agreement.

TERMS

1. Contract Amendments. The Agreement is amended as provided herein. Added text is indicated in bold italics, deleted text is indicated in strikethrough.

a. Section 2.1, “Contract Sum”, is hereby amended to read:

2.1 Contract Sum.

Subject to any limitations set forth in this Agreement, City agrees to pay Contractor the amounts specified in the “Schedule of Compensation” attached hereto as Exhibit “C” and incorporated herein by this reference. The total compensation, including reimbu rsement for actual expenses, shall not exceed Forty One Thousand Three Hundred Four Dollars and Forty Six Cents ( $41,304.46 ) Eighty Eight Thousand One Hundred Twenty One Dollars and Fifty Five Cents ($ 88,121.55) (“Contract Sum”), unless additional compensation is approved pursuant to Section 1.10.

b. Exhibit C, “Schedule of Compensation”, is hereby amended and shall now read as follows:

The total compensation, including reimbursement for actual expenses, shall not exceed ($41,304.46 ) ($88,121.55) (the “Contract Sum”), unless additional compensation is approved pursuant to Section 1.10.

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ATTACHMENT 1
01135.0006/1031703.1

2. Continuing Effect of Agreement. Except as amended by this Amendment, all provisions of the Agreement shall remain unchanged and in full for ce and effect. From and after the date of this Amendment, whenever the term “Agreement” appears in the Agreement, it shall mean the Agreement, as amended by this Amendment to the Agreement.

3. Affirmation of Agreement; Warranty Re Absence of Defaults. City and Contractor each ratify and reaffirm each and every one of the respective rights and obligations arising under the Agreement.

Each party represents and warrants to the other that there have been no written or oral modifications to the Agreement other than as provided herein. Each party represents and warrants to the other that the Agreement is currently an effective, valid, and binding obligation.

Contractor represents and warrants to City that, as of the date of this Amendment, City is not in default of any material term of the Agreement and that there have been no events that, with the passing of time or the giving of notice, or both, would constitute a material default under the Agreement.

City represents and warrants to Contractor that, as of the date of this Amendment, Contractor is not in default of any material term of the Agreement and that there have been no events that, with the passing of time or the giving of notice, or both, would constitute a material default under the Agreement.

4. Adequate Consideration. The parties hereto irrevocably stipulate and agree that they have each received adequate and independent consideration for the performance of the obligations they have undertaken pursuant to this Amendment.

5. Authority. The persons executing this Amendment on behalf of the parties hereto warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Amendment on behalf of said party, (iii) by so executing this Amendment, such party is formally bound to the provisions of this Amendment, and (iv) the entering in to this Amendment does not violate any provision of any other agreement to which said party is bound.

[SIGNATURES ON FOLLOWING PAGE]

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ATTACHMENT 1
01135.0006/1031703.1
IN WITNESS WHEREOF, the parties hereto have executed this Amendment on the date and year first-above written.

CITY:

CITY OF BELL, a California charter city

Ali Saleh
Mayor

ATTEST:

Angela Bustamante
City Clerk

APPROVED AS TO FORM:

ALESHIRE & WYNDER, LLP

David J. Aleshire
City Attorney

Two corporate officer signatures required when Contractor is a corporation, with one signature required from each of the following groups: 1) Chairman of the Board, President or any Vice President; and 2) Secretary, any Assistant Secretary, Chief Financial Officer or any Assistant Treasurer. CONTRACTOR’S SIGNATURES SHALL BE DULY

NOTARIZED, AND APPROPRIATE ATTESTATIONS SHALL BE INCLUDED AS

MAY BE REQUIRED BY THE BYLAWS, ARTICLES OF INCORPORATION, OR OTHER RULES OR REGULATIONS APPLICABLE TO CONTRACTOR’S BUSINESS ENTITY.

CONTRACTOR:

HQE Systems, Inc., a California corporation

By:

Qais Alkurdi
Title: CEO

By:

Name: Desiree Carr
Title: Secretary

Address: 27348 Via Industria
Temecula, CA 92590

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ATTACHMENT 1
01135.0006/1031703.1

CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT

STATE OF _________________________

COUNTY OF _________________________

On __________, 2024 before me, ________________, personally appeared ________________, proved to me on the basis of satisfactory evidence to be the person(s) whose names(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authoriz ed capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature: _____________________________________

OPTIONAL
Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form.

CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT

INDIVIDUAL

CORPORATE OFFICER
_______________________________

TITLE(S)

PARTNER(S) LIMITED

GENERAL

ATTORNEY-IN-FACT

TRUSTEE(S)

GUARDIAN/CONSERVATOR
OTHER_______________________________
______________________________________
SIGNER IS REPRESENTING:
(NAME OF PERSON(S) OR ENTITY(IES))
_____________________________________________
_____________________________________________

___________________________________

TITLE OR TYPE OF DOCUMENT
___________________________________

NUMBER OF PAGES
___________________________________

DATE OF DOCUMENT
___________________________________

SIGNER(S) OTHER THAN NAMED ABOVE

A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy or validity of that document.

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ATTACHMENT 1
01135.0006/1031703.1

CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT

STATE OF ______________________

COUNTY OF _____________________________

On __________, 2024 before me, ________________, personally appeared ________________, proved to me on the basis of satisfactory evidence to be the person(s) whose names(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature: _____________________________________

OPTIONAL
Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form.

CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT

INDIVIDUAL

CORPORATE OFFICER
_______________________________

TITLE(S)

PARTNER(S) LIMITED

GENERAL

ATTORNEY-IN-FACT

TRUSTEE(S)

___________________________________

TITLE OR TYPE OF DOCUMENT
___________________________________

NUMBER OF PAGES
___________________________________

DATE OF DOCUMENT
___________________________________

SIGNER(S) OTHER THAN NAMED ABOVE

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V4 ESTIMATE FOR:

City of Bell
Change Order for Card Readers & Crash Bars
(Estimate: PW24001)
Date Submitted: 23 OCTOBER, 2024
Proposal Prepared For: Proposal Approved By:

City of Bell HQE Systems Inc.
6330 Pine Ave 27348 Via Industria
Bell, CA 90201 Temecula, CA 92590
POC: German Alvarez POC: Mr. Qais Alkurdi
Title: Associate Civil Engineer Title: Chief Executive Officer Email: [email protected] Email: [email protected] Tel: 323-588-6211 Tel: (800) 967-3036 X1102
This proposal contains trade secrets and confidential business or financial information exempt from disclosure under the Freedom of Information Act. This proposal includes data that shall not be disclosed outside the Government and shall not be duplicated, used, or disclosed—in whole or in part—for any purpose other than to evaluate this proposal. If, however, a contract is awarded to this offeror as a result of—or in connection with—the submission of this data, the Government shall have the right to duplicate, use, or disclose the data to the extent provided in the resulting contract. This restriction does not limit the Government’s right to use the information contained in this data if it is obtained from another source without restriction. The data subject to this restriction are contained in this proposal and all attachments. All product names, logos, and brands are the property of their respective owners. All company, product, and service names used in this proposal are for identification purposes only. Using these names, logos, and brands do not imply endorsement.

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Summary
HQE Systems, Inc., a Service Disabled Veteran Owned Small Business (SDVOSB), is pleased to provide the below cost for the V3 Change Order at The City of Bell. Offer is valid for 60 days. This estimate is in response to the customer’s request for:
● Ten (10) New Card Readers and associated hardware for new and existing doors ● Quote includes all equipment, licenses, and labor to complete the installation Please submit any resulting purchase order or contract [email protected] Estimate
# Installation Budget Summary Estimate
1 Total Labor $ 9,341.85
2 Total Other Direct Costs (ODC's) $ 1,996.71
3 Total Equipment/Material $ 15,293.57
Total Estimate $ 26,632.13
Bill of Materials
# Part # Equipment Descriptions QTY
Headend / Licensing
1 Genetec: ADV-RDR-S-1Y GenetecTM Advantage for 1 SynergisTM Reader – 1 year 10
Genetec: SY-CLOUDLINK-312 Synergis™CloudLink for Readers 1 2 Genetec: SY-MR52-S3
Mercury MR52 2-reader interface module Series 3
(8 inputs, 6 relays, PCB only, 2 reader license
connections included).
5 3 Altronix: BC400 MR52 Enclosure, 15.5" x 12" x 4.5" D, 19-Gauge, Indoor, Gray 3
4 Altronix: AL600ULACM
Access Power Controller w/ Power Supply/Charger, 8
Fused Relay Outputs, 12/24VDC @ 6A, FAI, 115VAC,
BC400 Enclosure
2 5 Power Sonic: PS-1270-F1 7Ah 12V Rechargeable Sealed Lead Acid (SLA) Battery - F1 Terminal 4
Police Department Additional Readers
6 Genetec:

SY-40KNKS-00-000000
HID Signo 40K reader, Wall mount w/Keypad,

13.56mHz & 125kHz, OSDP/Wiegand, Pigtail, Mobile
Ready, BLE
5 7 Genetec:

SY-40NKS-00-000000
HID Signo 40 reader, Wall mount, 13.56mHz
&125kHz, OSDP/Wiegand, Pigtail, Mobile Ready, BLE 5
HQE SYSTEMS, INC. | A Service-Disabled Veteran Owned Small Business (SDVOSB) Use or disclosure of data contained on this sheet is subject to the restriction on the title page of this proposal.

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8 Security Door Controls:
192-32704-00 Push to Exit Mushroom Button 1
9 Securitron: DPS-W/M Door Contact 5
10 HES: 7000C-12/24D-630 Electric Door Strike 5
11 Bosch: DS150I REX Motions for ACS 5
12 SCP: SCP-ACC-1 Composite ACS Cable (22/6, 18/4, 22/4, 22/2) 500' rolls 2
13 HQE-Misc Misc. Materials, Cables, Connectors, and Conduits 10 HQE SYSTEMS, INC. | A Service-Disabled Veteran Owned Small Business (SDVOSB) Use or disclosure of data contained on this sheet is subject to the restriction on the title page of this proposal.

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End of Estimate
“Our goal at HQE is to continue to serve our veterans through our ‘Hire Veterans Policy HQE-2015-2025’ .

We appreciate our current and past customers who have helped us meet our goals of hiring veterans throughout the years. Your support in HQE is directly impacting the support of our incredible veterans.

Thank you for your consideration and support of Minority Business Enterprise (MBE), Disadvantaged Business Enterprise (DBE), and Service Disabled Veteran Owned Small Business (SDVOSB)!.” Thank You from the team of HQE Systems Inc.

Qas Alud
CEO, Disabled Veteran / Retired
HQE SYSTEMS, INC. | A Service-Disabled Veteran Owned Small Business (SDVOSB) Use or disclosure of data contained on this sheet is subject to the restriction on the title page of this proposal.

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V3 ESTIMATE FOR:

City of Bell
City Hall Stand Alone Headend
(Estimate: PW24002)
Date Submitted: 29 OCTOBER, 2024
Proposal Prepared For: Proposal Approved By:

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Summary
HQE Systems, Inc., a Service Disabled Veteran Owned Small Business (SDVOSB), is pleased to provide the below cost for the equipment at City Hall for The City of Bell. Offer is valid for 60 days. This estimate is in response to the customer’s request for:
● Seven (7) doors with card readers
● Four (4) maglocks
● Two (2) crash bars
● Two (2) door strikes
● Configure as standalone ACS
Please submit any resulting purchase order or contract [email protected] Estimate
# (NEW) Budget Worksheet Summary Estimate
1 Total Labor $ 7,714.64
2 Total Other Direct Costs (ODC's) $ 965.42
3 Total Equipment/Material $ 11,504.90
Total Estimate $ 20,184.96
Payment Terms: NET30
Bill of Materials
# Part # Equipment Descriptions QTY
Licensing
1 Genetec: GSC-Base-S Genetec Security Center (GSC) Base Standard Package. 1
2 Genetec: ADV-RDR-S-1Y GenetecTM Advantage for 1 SynergisTM Reader – 1 year 7 Head-End
3 Genetec:

SY-CLOUDLINK-G2
SynergisTM Cloud Link with 4GB of RAM, 16GB Flash,
second generation, installed with SynergisTM access
control firmware, four RS-485 ports, PoE.
1 4 Genetec: SY-LP1502 Mercury Intelligent Controller, Linux Based, 8In/4Out/2Rd (2 reader licence connections included) 1
5 Genetec: SY-MR52-S3 Mercury MR52 2-reader interface module Series 3 (8 3 HQE SYSTEMS, INC. | A Service-Disabled Veteran Owned Small Business (SDVOSB) Use or disclosure of data contained on this sheet is subject to the restriction on the title page of this proposal.

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inputs, 6 relays
6 Altronix: BC400 MR52 Enclosure, 15.5" x 12" x 4.5" D, 19-Gauge, Indoor, Gray 2 7 Altronix: AL600ULACM Access Power Controller w/ Power Supply/Charger, 8 Fused Relay Outputs, 12/24VDC @ 6A, FAI, 115VAC, BC400 Enclosure 1
8 Power Sonic:

PS-1270-F1 7Ah 12V Rechargeable Sealed Lead Acid (SLA) Battery - F1 Terminal2 9 Genetec:

SY-40NKS-00-000000
HID Signo 40 reader, Wall mount, 13.56mHz &125kHz,
OSDP/Wiegand, Pigtail, Mobile Ready, BLE 7
10 HES: 7000C-12/24D-630 Electric Door Strike 2
11 Alarm Controls:

AC600LB Maglock 4
12 Assa-Abloy: 4822-TESA Crash Bar 2
13 HQE-Misc Misc. Materials, Cables, Connectors, and Conduits 7 HQE SYSTEMS, INC. | A Service-Disabled Veteran Owned Small Business (SDVOSB) Use or disclosure of data contained on this sheet is subject to the restriction on the title page of this proposal.

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End of Estimate
“Our goal at HQE is to continue to serve our veterans through our ‘Hire Veterans Policy HQE-2015-2025’ .

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AGENDA ITEM 6
City of Bell
Agenda Report

DATE: November 13, 2024

TO: Mayor and Members of the City Council

FROM: John Oskoui, P.E., Interim Public Works Director Rey Alfonso, P.E., City Engineer

APPROVED Michael L. Antwine II (e-signature)
BY: _______________________________
Michael L. Antwine II, City Manager

SUBJECT: Traffic Signal Equipment Upgrade Project (CIP NO. 7180) – Award of Contract

RECOMMENDATION:

It is recommended that the City Council:

1. Award a construction contract in the amount of $ 897,115.76 to Econolite Systems, Inc. for the Traffic Signal Improvements Project (CIP No. 7180).

2. Authorize the City Manager to execute change orders for the project in a total amount not to exceed $89,711.58 (ten percent of the bid amount) for any necessary additional work.

3. Read by title only, waive further reading and adopt Resolution No. 2024-50 titled:

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BELL, CALIFORNIA APPROVING A FISCAL YEAR 2024-2025 BUDGET AMENDMENT TO
APPROPRIATE $14,739 FROM PROPOSITION C FUNDS (FUND 680) AND $352,080 FROM OTHER GRANTS (FUND 332) TO THE TRAFFIC SIGNAL EQUIPMENT UPGRADE PROJECT (CIP NO. 7180).

BACKGROUND:

In March 2023, the City received a grant in the amount of $761,400 under the Highway Safety Improvement Program (HSIP). The grant funded the upgrade of traffic signals at 26 signalized intersections. In April 2024, Caltrans increased the grant amount from $761,400 to $1,113,480 for construction. The grant requires a 10% local match.

After securing the HSIP grant for upgrade to traffic signal equipment at 26 intersections, the City added 2 more intersections for traffic signal system upgrades. The cost for the additional 2 signalized intersections will be funded from the City’s local transportation funds . The Project consists of upgrading vehicle signal heads, backplates, pedestrian countdown signal heads, their mountings, installing accessible pedestrian signals (APS), and other incidental and appurtenant work necessary for the proper completion of the Project.

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AGENDA ITEM 6
DISCUSSION:

The City issued a construction bid notice on September 26, 2024. The bid opening was held on October 24, 2024. Five (5) bids were recei ved with a range of $897,115.76 to $1,399,825. The list of bidders and bid amounts are as follows:

Contractor Bid Amount
1 Econolite Systems, Inc. $897,115.76
2 Select Electric, Inc. $1,005,650.00
3 Yunex Traffic $1,123,735.00
4 Elecnor Belco Electric Inc. $1,170,650.00
5 Crosstown Electrical & Data, Inc. $1,399,825.00

The apparent low bidder is Econolite Systems, Inc. (Econolite) of Anaheim, California. The low bid was approximately 32% lower than the Engineer’s Estimate. All required forms, licenses, registrations, bonds and insurance were appropriately submitted by Econolite and verified.

Additionally, Econolite has successfully completed several comparable projects in Southern California. Staff recommend that the City Council award a construction contract to Econolite in the amount of $897,115.76.

The adopted Fiscal Year 2024-2025 budget did not include the cost in change in construction.

The additional HSIP funding was also not included in the adopted budget. To fund the project, staff recommend the following budget amendment:

PROPOSITION C
(FUND 680)

OTHER FUND
(FUND 332)
TO BE

REIMBURSED BY

THE HSIP GRANT

TOTAL AMOUNT

REQUESTED
Traffic Signal
Equipment Upgrade
(CIP NO. 7180)
$14,739 $352,080 $366,819

Conflict of Interest

According to the State’s “conflict of interest” laws, when a decision involves new infrastructure or more than mere maintenance, the distance from a councilmember’s real property to the new infrastructure is key. For instance:

(a) A councilmember with an interest in real property “located 500 feet or less” from a proposed improvement may not participate in the vote. If the councilmember can show, with “clear and convincing evidence,” that the improvement “will not have any measurable impact on the official’s property,” then the conflict is overcome, and the councilmember may participate in the vote. (2 CCR §18702.2(a)(7).)

(b) A councilmember with an interest in real property located “more than 500 feet but less than 1,000 feet” from a proposed improvement may participate in the vote unless the improvement will change the councilmember’s property’s: (i) development potential;

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AGENDA ITEM 6
(ii) income producing potential; (iii) highest and best use; (iv) market value; or (v) character by substantially altering traffic levels, intensity of use, parking, view, privacy, noise levels, or air quality. (2 CCR §18702.2(a)(8).)

(c) A councilmember with an interest in real property located 1,000 feet or more from the improvement may participate in the vote, because it is presumed that no conflict exists.

But this presumption may be rebutted with “clear and convincing evidence” that the improvement will have a “substantial effect” on the property. (2 CCR §18702.2(b).)

However, please be advised that there are three (3) exceptions that overrides all of the above:

(1) Maintenance of Existing Infrastructure: The maintenance of already existing infrastructure does not create a material conflict of interest for any councilmember, including those who own or have an interest in real property in the vicinity. (2 CCR §18702.2(d)(1).)

(2) No Disproportionate Impact: Regardless of the distance between the improvement and the real property, no conflict exists if the improvement does not provide a benefit or detriment to the councilmember’s property that is “disproportionate to other properties” receiving the services. (2 CCR §18702.2(6).)

(3) Public Generally Exception: If a decision’s impact on the councilmember’s real property is indistinguishable from the decision’s impact on the “public generally,” the councilmember may participate in the vote. An “indistinguishable impact” is defined here as a change impacting a “significant segment of the public” as determined by either:

(a) 25% of: (i) businesses or non-profits; (ii) real property; or (iii) the individual people in the councilmember’s district; or

(b) 15% of the real residential property within the councilmember’s district, so long as the only property at issue for the councilmember is their residence.

FISCAL IMPACT:

There will be no impact on the General Fund. This project was included in the adopted FY 2024- 2025 Capital Improvement Program. The Staff recommend increasing the budget by $352,080 from Other Fund ( Fund 332) to account for the additional HSIP grant amount received and $14,739 from Proposition C (Fund 680) to cover the change in cost on construction.

ATTACHMENTS:

1) Resolution 2024-50
2) Econolite Systems, Inc.-Contract

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Resolution 2024-50

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RESOLUTION NO. 2024 –50

WHEREAS, on April 19, 2024, the California State Transportation Agency increased the Highway Safety Improvement Program (HSIP) funding from $761,400 to $1,113,480 to the Traffic Signal Equipment Upgrade Project.

WHEREAS, the approved FY2024-2025 CIP Budget did not reflect the increase in HSIP grant funding nor reflected the change in cost on construction; and

WHEREAS, to ensure that the Project is appropriately budgeted to fully complete construction, a budget amendment is necessary.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF BELL DOES HEREBY:

SECTION 1. Approve the following amendment to the FY 2024-2025 Budget for the Traffic Signal Equipment Upgrade (CIP No. 7180):

TRAFFIC SIGNAL EQUIPMENT UPGRADE (CIP NO. 7180)

BUDGET AMENDMENT
From To Additional
Amount
Requested
Other Grants (Fund 332)
332-74-73-7180-000-9300
$761,400 $1,113,480 $352,080
Proposition C (Fund 680)
680-74-74-7180-000-9300
$50,000 $64,739 $14,739

SECTION 2. Authorize that this Resolution shall take effect immediately; and the City Clerk shall certify to the passage of this Resolution.

PASSED, APPROVED and ADOPTED this 13
th day of November 2024.

__________________________________
Al i Saleh, Mayor

APPROVED AS TO FORM:

_________________________
Dave Aleshire, City Attorney

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Resolution 2024-50

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CERTIFICATE OF ATTESTATION AND ORIGINALITY

AYES:

NOES:

ABSENT:

ABSTAIN:
_________________________________
Angela Bustamante, City Clerk

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AGREEMENT

FOR PUBLIC WORKS SERVICES BETWEEN

THE CITY OF BELL AND

THIS AGREEMENT FOR PUBLIC WORKS SERVICES (herein “Agreement”) is made and entered into this________ day of ______, 2024, by and between the City of Bell, a California charter city ("City") and Econolite Systems, Inc. ("Contractor"). City and Contractor a re sometimes hereinafter individually referred to as "Party" and hereinafter collectively referred to as the "Parties".

RECITALS

A. City has sought, by issuance of a Request for Proposals or Invitation for Bids, the performance of the services defined and described particularly in Article 1 of this Agreement.

B. Contractor, following submission of a proposal or bid for the performance of the s ervices defined and described particularly in Article 1 of this Agreement, was selected by the City to perform those services.

C. Pursuant to the City of Bell Municipal Code, City has authority to enter into and execute this Agreement.

D. The Parties desire to formalize the selection of Contractor for performance of those services defined and described particularly in Article 1 of this Agreement and desire that the terms of that performance be as particularly defined and described herein.

OPERATIVE PROVISIONS

NOW, THEREFORE, in consideration of the mutual promises and covenants made by the Parties and contained herein and other consideration, the value and adequacy of which are hereby acknowledged, the parties agree as follows:

ARTICLE 1. WORK OF CONTRACTOR

1.1 Scope of Work.

In compliance with all terms and conditions of this Agreement, the Contractor shall provide those services specified in the “Scope of Work” attached hereto as Exhibit “A” and incorporated herein by this reference, which may be referred to herein as the “services” or “work” hereunder. As a material inducement to the City entering into this Agreement, Contractor represents and warrants that it has the qualifications, experience, and facilities necessary to properly perform the work required under this Agreement in a thorough, competent, and professional manner, and is experienced in performing the work and services contemplated herein. Contractor shall at all times faithfully, competently and to the best of its ability, experience and talent, perform all services described herein. Contractor covenants that it shall follow the highest professional standards in performing the work and services required hereunder and that all materials will be both of good quality as well as fit for the purpose intended. For purposes of this Agreement, the phrase “highest professional standards” shall

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mean those standards of practice recognized by one or more first-class firms performing similar work under similar circumstances.

1.2 Bid Documents.

The Scope of Work shall include the Plans, Specifications, and Contract Documents for the project entitled TRAFFIC SIGNAL IMPROVEMENTS FOR HIGHWAY SAFETY IMPROVEMENT PROGRAM (HSIP) CYCLE 11 HSIPSL -5272(020), including any documents or exhibits referenced therein (collectively, “bid documents”), all of which are incorporated herein by this reference. In the event of any inconsistency between the terms of the bid documents and this Agreement, the terms of this Agreement shall govern.

1.3 Compliance with Law.

Contractor shall keep itself informed concerning, and shall render all services h ereunder in accordance with, all ordinances, resolutions, statutes, rules, and regulations of the City and any Federal, State or local governmental entity having jurisdiction in effect at the time service is rendered.

1.4 Compliance with California Labor Law.

(a) Public Work. The Parties acknowledge that the work to be performed under this Agreement is a “public work” as defined in Labor Code Section 1720 and that this Agreement is therefore subject to the requirements of Division 2, Part 7, Chapter 1 (commencing with Section 1720) of the California Labor Code relating to public works contracts and the rules and regulations established by the Department of Industrial Relations (“DIR”) implementing such statutes. The work performed under this Agreement is subject to compliance monitoring and enforcement by the DIR. Contractor shall post job site notices, as prescribed by regulation.

(b) Prevailing Wages. Contractor shall pay prevailing wages to the extent required by Labor Code Section 1771. Pursuant to Labor Code Section 1773.2, copies of the prevailing rate of per diem wages are on file at City Hall and will be made available to any interested party on request. By initiating any work under this Agreement, Contractor acknowledges receipt of a copy of the Department of Industrial Relations (DIR) determination of the prevailing rate of per diem wages, and Contractor shall post a copy of the same at each job site where work is performed under this Agreement.

(c) Penalty for Failure to Pay Prevailing Wages. Contractor shall comply with and be bound by the provisions of Labor Code Sections 1774 and 1775 concerning the payment of prevailing rates of wages to workers and the penalties for failure to pay prevailing wages. The Contractor shall, as a penalty to the City, forfeit two hundred dollars ($200) for each calendar day, or portion thereof, for each worker paid less than the prevailing rates as determined by the DIR for the wo rk or craft in which the worker is employed for any public work done pursuant to this Agreement by Contractor or by any subcontractor.

(d) Payroll Records. Contractor shall comply with and be bound by the p rovisions of Labor Code Section 1776, which requires Contractor and each subcontractor to: keep accurate payroll records and verify such records in writing under penalty of perjury, as specified in Section 1776; certify and make such payroll records

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available for inspection as provided by Section 1776; and inform the City of the location of the records.
(e) Apprentices. Contractor shall comply with and be bound by the provisions of Labor Code Sections 1777.5, 1777.6, and 1777.7 and California Code of Regulations Title 8, Section 200 et seq. concerning the employment of apprentices on public works projects. Contr actor shall be r esponsible for compliance with these aforementioned Sections for all apprenticeable occupations. Prior to commencing work under this Agreement, Contractor shall p rovide City with a copy of the information submitted to any applicable apprenticeship program. Within sixty (60) days after concluding work pursuant to this Agreement, Contractor and each of its subcontractors shall submit to the City a verified statement of the journeyman and apprentice hours performed under this Agreement.

(f) Eight-Hour Work Day. Contractor acknowledges that eight (8) hours labor constitutes a legal day's work. Contractor shall comply with and be bound by Labor Code Section 1810.

(g) Penalties for Excess Hours. Contractor shall comply with and be bound by the provisions of Labor Code Section 1813 concerning penalties for workers who work excess hours. The Contractor shall, as a penalty to the City, forfeit twenty-five dollars ($25) for each worker employed in the performance of this Agreement by the Contractor or by any subcontractor for each calendar day during which such worker is required or permitted to work more than eight (8) hours in any one calendar day and forty (40) hours in any one calendar week in violation of the provisions of Division 2, Part 7, Chapter 1, Article 3 of the Labor Code. Pursuant to Labor Code s ection 1815, work performed by employees of Contractor in excess of eight (8) hours per day, and forty (40) hours during any one week shall be permitted upon public work upon compensation for all hours worked in excess of 8 hours per day at not less than one and one-half (1½) times the basic rate of pay.

(h) Workers’ Compensation. California Labor Code Sections 1860 and 3700 provide that every employer will be required to secure the payment of compensation to its employees if it has employees. In accordance with the provisions of California Labor Code Section
1861, Contractor certifies as follows:

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

Contractor’s Authorized Initials

(i) Contractor’s R esponsibility for Sub contractors. For every subcontractor who will perform work under this Agreement, Contractor shall be responsible for such subcontractor's compliance with Division 2, Part 7, Chapter 1 (commencing with Section 1720) of the California Labor Code, and shall make such compliance a requirement in any contract with any subc ontractor for work under this Agreement.

Contractor shall be required to take all actions necessary to enforce such contractual provisions and ensure subcontractor's compliance, including

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without limitation, conducting a review of the certified payroll records of the subcontractor on a periodic basis or upon becoming aware of the failure of the subcontractor to pay his or her workers the specified prevailing rate of wages. Contractor shall diligently take corrective action to halt or rectify any such failure by any subcontractor.

1.5 Licenses, Permits, Fees and Assessments.

Contractor shall obtain at its sole cost and expense such licenses, permits, registrations, and approvals as may be required by law for the performance of the services required by this Agreement. Contractor shall have the sole obligation to pay for any fees, assessments and taxes, plus applicable penalties and interest, which may be imposed by law and arise from or are necessary for the Contractor’s performance of the services required by th is Agreement, and shall indemni fy, defend and hold harmless City, its officers, employees or agents of City, against any such fees, assessments, taxes, penalties or interest levied, assessed or imposed against City hereunder.

1.6 Familiarity with Work.

(a) By executing this Agreement, Contractor warrants that Contractor (i) h as thoroughly invest igated and considered the scope of work to be performed, (ii) has carefully considered how the services should be performed, and (iii) fully understands the facilities, difficulties and restrictions attending performance of the services under this Agreement. If the services involve work upon any site, Contractor warrants that Contractor has or will investigate the site and is or will be fully acquainted with the conditions there existing, prior to commencement of services hereunder.

(b) Contractor shall promptly, and before the following conditions are disturbed, notify the City, in writing, of any: (i) material Contractor believes may be hazardous waste as defined in Section 25117 of the Health & Safety Code required to be removed to a Class I, II, or III disposal site in accordance with existing law; (ii) subsurface, unknown or latent conditions, materially different from those indicated; or (iii) unknown physical conditions at the site of any unusu al nature, different from those ordinarily encountered and generally recognized as inherent in work of the character provided for in this Agreement, and will materially affect the performance of the services hereunder.

(c) City shall promptly investigate the conditions, and if it finds that the conditions do materially differ, or do involve hazardous waste, and cause a decrease or increase in Contractor's cost of, or the time required for, performance of any part of the work, shall issue a change order per Section 1.10 of this Agreement.

(d) In the event that a dispute arises between City and Contractor whether the conditions materially differ, or involve hazardous waste, or cause a decrease or increase in Contractor's cost of, or time required for, performance of any part of the work, Contractor shall not be excused from any scheduled completion date set, but shall proceed with all work to be performed under the Agreement. Contractor shall retain any and all rights provided either by contract or by law, which pertain to the resolution of disputes and protests between the contracting parties.

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(e) City will compensate Contractor to the extent required by Government Code Section 4215 by issuing a change order per Section 1.10 of this Agreement.

1.7 Protection and Care of Work and Materials.

The Contractor shall adopt reasonable methods, including providing and maintaining stor age facilities, during the life of the Agreement to furnish continuous protection to the work, and the equipment, materials, papers, documents, plans, studies and/or other components thereof to prevent losses or damages, and shall be responsible for all such damages, to persons or property, until acceptance of the work by City, except such losses or damages as caused by City’s own negligence. Stored materials shall be reasonably accessible for inspection. Contractor shall not, without City’s consent, assign, sell, mortgage, hypothecate, or remove equipment or materials which have been installed or delivered and which may be necessary for the completion of the work.

1.8 Warranty.

Contractor warrants all work under the Agreement (which for purposes of this Section shall be deemed to include unauthorized work which has not been removed and any non-conforming materials incorporated into the work) to be of good quality and free from any defective or faulty material and workmanship. Contractor agrees that for a period of one year (or the period of time specified elsewhere in the Agreement or in any guarantee or warranty provided by any manufacturer or supplier of equipment or materials incorporated into the work, whichever is later) after the date of final acceptance, Contractor shall within ten (10) days after being notified in writing by the City of any defect in the work or non- conformance of the work to the Agreement, commence and prosecute with due diligence all work necessary to fulfill the terms of the warranty at its sole cost and expense. Contractor shall act as soon as requested by the City in response to an emergency. In addition, Contractor shall, at its sole cost and expense, repair, remove and replace any portions of the work (or wo rk of other contractors) damaged by its defective work or which becomes damaged in the course of repairing or replacing defective work. For any work so corrected, Contractor's obligation hereunder to correct defective work shall be reinstated for an additional one-year period, commencing with the date of acceptance of such corrected work. Contractor shall perform such tests as the City may require verifying that any corrective actions, including, without limitation, redesign, repairs, and replacements comply with the requirements of the Agreement. All costs associated with such corrective actions and testing, including the r emoval, replacement, and reinstitution of equipment and materials necessary to gain access, shall be the sole responsibility of the Contractor. All warranties and guarantees of subcontractors, suppliers and manufacturers with respect to any portion of the work, whether express or implied, are deemed to be obtained by Contractor for the benefit of the City, regardless of whether or not such warranties and guarantees have been transferred or assigned to the City by separate agreement and Contractor agrees to enforce such warranties and guarantees, if necessary, on behalf of the City. In the event that Contractor fails to perform its obligations under this Section, or under any other warranty or guaranty under this Agreement, to the reasonable satisfaction of the City, the City shall have the right to correct and replace any defective or non- conforming work and any work damaged by such work or the replacement or correction thereof at Contractor's sole expense. Contractor shall be obligated to fully reimburse the City for any expenses incurred hereunder upon demand.

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1.9 Further Responsibilities of Parties.

Both parties agree to use r easonable care and diligence to perform their respective obligations under this Agreement. Both parties agree to act in good faith to execute all instruments, prepare all documents and take all actions as may be reasonably necessary to carry out the purposes of this Agreement. Unless hereafter specified, neither party shall be responsible for the service of the other.

1.10 Additional Work and Change Orders.

(a) City shall have the right at any time during the performance of the s ervices, without invalidating this Agreement, to order extra work beyond that specified in the Scope of Work or make changes by altering, adding to or deducting from said work. No such extra work may be undertaken unless a written change order is first given by the Contract Officer to the Contractor, incorporating therein any adjustment in (i) the Contract Sum, and/or (ii) the time to perform this Agreement, which said adjustments are subject to the written approval of the Contractor (“Change Order”). All Change Orders must be signed by the Contractor and Contract Officer prior to commencing the extra work thereunder.

(b) Any increase in compensation of up to ten percent (10%) of the Contract Sum or $25,000, whichever is less; or any increase in the time to perform of up to one hundred eighty (180) days; and does not materially affect the Work and which are not detrimental to the Work or to the interest of the City, may be approved by the Contract Officer. Any greater increases, taken either separately or cumulatively, must be approved by the City Council.

(c) Any adjustment in the Contract Sum for a Change Order must be in accordance with the rates set forth in the Schedule of Compensation in Exhibit “C”.

If the rates in the Schedule of Compensation do not cover the type of work in the Change Order, the cost of such wo rk shall not exceed an amount agreed upon in writing and signed by C ontractor and Contract O fficer. If the cost of the Change Order cannot be agreed upon, the City will pay for actual work of the Chan ge Order completed, to the satisfaction of the City, as follows:

(i) Labor: the cost of labor shall be the actual cost for wages of workers and subcontractors performing the work for the Change Order at the time such work is done. The use of labor classifications that would increase the cost of su ch work shall not be permitted.

(ii) Materials and Equipment: the cost of materials and equipment shall be at cost to Contractor or lowest current price which such materials and equipment are reasonably available at the time the work is done, whichever is lower.

(iii) If the cost of the extra work cannot be agreed upon, the Contractor must provide a daily r eport that includes invoices for labor, materials and equipment costs for the work under the Change Order. The daily report must include: list of names of workers, classifications, and hours worked; description and list of quantities of materials used; type of equipment, size, identification number, and hours of operation, including loading and transportation, if applicable; description of other City authorized services and expenditures in such detail as the City may require. Failure to submit a daily

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report by the close of the next working day may, at the City’s sole and absolute discretion, waive the Contractor’s rights for that day.

(d) It is expressly understood by Contractor that the provisions of this Section 1.10 shall not apply to services specifically set forth in the Scope of Work.

Contractor hereby acknowledges that it accepts the risk that the services to be provided pursuant to the Scope of Work may be more costly or time consuming than Contractor anticipates and that Contractor shall not be entitled to additional compensation therefor.

City may in its sole and absolute discretion have similar work done by other contractors.

(e) No claim for an increase in the Contract Sum or time for performance shall be valid unless the procedures established in this Section are followed.

1.11 Special Requirements.

Additional terms and conditions of this Agreement, if any, which are made a part hereof are set forth in the “Special Requirements” attached hereto as Exhibit “B ” and incorporated herein by this reference. In the event of a conflict between the provisions of Exhibit “B” and any other provisions of this Agreement, the provisions of Exhibit “B” shall govern.

ARTICLE 2. COMPENSATION AND METHOD OF PAYMENT.

2.1 Contract Sum.

Subject to any limitations set forth in this Agreement, City agrees to pay Contractor the amounts specified in the “Schedule of Compensation” attached hereto as Exhibit “C” and incorporated herein by this reference. The total compensation, including reimbursement for actual expenses, shall not exceed Dollars ($897,115.58) (the “Contract Sum”), unless additional compensation is approved pursuant to Section 1.10.

2.2 Method of Compensation.

The method of compensation may include: (i) a lump sum payment upon completion; (ii) payment in accordance with specified tasks or the percentage of completion of the services less the contract retention; (iii) payment for time and materials based upon the Contractor’s rates as specified in the Schedule of Compensation, provided that (a) time estimates are provided for the p erformance of sub tasks, (b) contract retention is maintained and (c) the Contract Sum is not exceeded; or (iv) such other methods as may be specified in the Schedule of Compensation.

2.3 Reimbursable Expenses.

Compensation may include reimbursement for actual and necessary expenditures for reproduction costs, telephone expenses, and travel expenses approved by the Contract Officer in advance, or actual subcontractor expenses of an approved subcontractor pursuant to Section 4.5, and on ly if specified in the Schedule of Compensation. The Contract Sum shall include the attendance of Contractor at all project meetings reasonably deemed necessary by the City. Coordination of the performance of the work with City is a critical component of the services. If Contractor is required to attend additional meetings to facilitate such coordination, Contractor shall not be entitled to any additional compensation for attending said meetings.

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2.4 Invoices.

Each month Contractor shall furnish to City an original invoice for all work performed and expenses incurred during the preceding month in a form approved by City’s Director of Finance. By submitting an invo ice for payment under this Agreement, Contractor is certifying compliance with all provisions of the Agreement. The invoice shall detail charges for all necessary and actual expenses by the following categories: labor (by sub-category), travel, materials, equipment, supplies, and sub-contractor contracts. Sub-contractor charges shall also be detailed by such categories. Contractor shall not invoice City for any duplicate services performed by more than one person.

City shall, as soon as practicable, independently review each invoice submitted by the Contr actor to determine whether the work performed, and expenses incurred are in compliance with the provisions of this Agreement. Except as to any charges for work performed or expenses incurred by Contractor which are disputed by City, or as provided in Section 7.3, City will cause Contractor to be paid within forty-five (45) days of receipt of Contractor’s correct and undisputed invoice; however, Contractor acknowledges and agrees that due to City warrant run procedures, the City cannot guarantee that payment will occur within this time period. In the event that City d oes not cause Contractor to be paid within thirty (30) days of receipt of an undisputed and properly submitted invoice, Contractor shall be entitled to the payment of interest to the extent allowed under Public Contr act Code Section 20104.50. In the event any charges or expenses are disputed by City, the original invoice shall be returned by City to Contractor, not later than seven (7) days after receipt by the City, for correction and resubmission.

Returned invoices shall be accompanied by a document setting forth in writing the reasons why the payment request was rejected. Review and payment by the City of any invoice provided by the Contractor shall not constitute a waiver of any rights or remedies provided herein or any applicable law.

2.5 Waiver.

Payment to Contractor for work performed pursuant to this Agreement shall not be deemed to waive any defects in work performed by Contractor.

ARTICLE 3. PERFORMANCE SCHEDULE

3.1 Time of Essence.

Time is of the essence in the performance of this Agreement.

3.2 Schedule of Performance.

Contractor shall commence the services pursuant to this Agreement upon receipt of a written notice to proceed and shall perform all services within the time period(s) established in the “Schedule of Performance” attached hereto as Exhibit “D” and incorporated herein by this reference. When requested by the Contractor, extensions to the time period(s) specified in the Schedule of Performance may be approved in writing by the Contract Officer but not exceeding one hundred eighty (180) days cumulatively.

3.3 Force Majeure.

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The time period(s) specified in the Schedule of Performance for performance of the services rendered pursuant to this Agreement shall be extended because of any delays due to unfo reseeable causes beyond the control and without the fault or negligence of the Contractor, including, but not restricted to, acts of God or of the public enemy, unusually severe weather, fires, earthquakes, floods, epidemics, qu arantine restrictions, riots, strikes, freight embargoes, wars, l itigation, and/or acts of any governmental agency, including the City, if the Contractor shall within ten (10) days of the commencement of such delay notify the Contract Officer in writing of the causes of the delay.

The Contract Officer shall ascertain the facts and the extent of delay and extend the time for performing the services for the period of the enforced delay when and if in the judgment of the Contract Officer such delay is justified. The Contract Officer’s determination shall be final and conclusive upon the parties to this Agreement. In no event shall Contractor be entitled to recover damages against the City for any delay in the performance of this Agreement, however caused, Contractor’s sole remedy being extension of the Agreement pursuant to this Section.

3.4 Inspection and Final Acceptance.

City may inspect and accept or reject any of Contractor’s work under this Agreement, either during performance or when completed. City shall reject or finally accept Contractor’s work within forty-five (45) days after submitted to City. City shall accept work by a timely written acceptance, otherwise work shall be deemed to have been rejected. City’s acceptance shall be conclusive as to such work except with respect to latent defects, fraud and such gross mistakes as to amount to fraud. Acceptance of any work by City shall not constitute a waiver of any of the provisions of this Agreement including, but not limited to, Articles 1 and 5, pertaining to warranty and indemnification and insurance, respectively.

3.5 Term.

Unless earlier terminated in accordance with Article 7 of this Agreement, this Agreement shall continue in full force and effect until completion of the services but not exceeding one (1) years from the d ate h ereof, except as otherwise p rovided in the Schedule of Performance (Exhibit “D”).

ARTICLE 4. COORDINATION OF WORK

4.1 Representatives and Personnel of Contractor.

The following principals of Contractor (“Principals”) are hereby designated as being the principals and representatives of Contractor authorized to act in its behalf with respect to the work specified herein and make all decisions in connection therewith:

(Name) (Title)

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It is expressly understood that the experience, knowledge, capability and reputation of the foregoing Principals were a substantial inducement for City to enter into this Agreement. Th erefore, the Principals shall be responsible during the term of this Agreement for directing all activities of Contractor and devoting sufficient time to personally supervise the services hereunder. All personnel of Contractor, and any authorized agents, shall at all times be under the exclusive dir ection and control of the principals. For purposes of this Agreement, the Principals may not be r eplaced, nor may their responsibilities be substantially reduced by Contractor without the express w ritten approval of City. Additionally, Contractor shall make every reasonable effort to maintain the stability and continuity of Contractor’s staff and subcontractors, if any, assigned to perform the services required under this Agreement. Contractor shall notify City of any changes in Contractor’s staff and subcontractors, if any, assigned to perform the services required under this Agreement, prior to and during any such performance.

4.2 Status of Contractor.

Contractor shall have no authority to bind City in any manner, or to incur any obligation, debt or liability of any kind on behalf of or against City, whether by contract or othe rwise, unless such authority is expressly conferred under this Agreement or is otherwise expressly conferred in writing by City. Contractor shall not at any time or in any manner represent that Contractor or any of Contractor’s officers, employees, or agents are in any manner officials, officers, employees, or agents of City. Neither Contractor, nor any of Contractor’s officers, employees, or agents, shall obtain any rights to retirement, health care or any other b enefits which m ay otherwise accrue to City’s employees.

Contractor expressly waives any claim Contractor may have to any such rights.

4.3 Contract Officer.

The Contract Officer shall be [_
or] such person as may be designated by the City Manager. It shall be the Contractor’s responsibility to assure that the Contr act Officer is kept informed of the progress of the performance of the services and the Contractor shall refer any decisions which must be made by City to the Contract Officer. Unless otherwise specified herein, any approval of City required hereunder shall mean the approval of the Contract Officer.

The Contract Officer shall have authority, if specified in writing by the City Manager, to sign all documents on behalf of the City required hereunder to carry out the terms of this Agreement.

4.4 Independent Contractor.

Neither the City nor any of its employees shall have any control over the manner, mode or means by which Contractor, its agents or employees, perform the services required herein, except as otherwise set forth herein. City shall have no voice in the selection, discharge, supervision or control of Contractor’s employees, servants, representatives, or agents, or in fixing their number, compensation or hours of service.

Contractor shall perform all services required herein as an independent contractor of City and shall remain at all times as to City a wholly independent contractor with only such obligations as are consistent with that role. Contractor shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of City.

City shall not in any way or for any purpose become or be deemed to be a partner

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Bell City CouncilNovember 13, 2024

Bell City Council
November 13, 2024