Agenda packet — Bell City Council, June 25, 2025 (part 1 of 3)

Agenda
Regular Meeting of the
B
ell City Council/Bell Community Housing Authority/Successor Agency to the Bell Community Redevelopment Agency/ Bell Public Finance Authority Wednesday, June 25, 2025
5:00
P.M. CLOSED SESSION
7:00 P.M. OPEN SESSION
BEL

L COMMUNITY CENTER
6250 PINE AVENUE, BELL CA 90201
Ali Saleh
Mayor
M
onica 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
June 25, 2025

REGULAR JOINT MEETING OF THE
B
ell City Council/Bell Community Housing Authority/Successor Agency to the Bell Community Redevelopment Agency/Bell Public Finance Authority June 25
, 2025
5:00 P
.M. Closed Session
7:00 P.M. Regular Meeting
Locat
ion: Bell Community Center, 6250 Pine Avenue, Bell CA 90201

C
all to Order
R
oll 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 C
ommunications from the Public on Closed Session Items
Thi
s 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.

C
losed Session
The C
ity Council and the related Authorities and Agencies will recess to closed session to confer with legal counsel regarding the following matters:
a. C
ONFERENCE 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
b. C
ONFERENCE WITH REAL PROPERTY NEGOTIATORS (Pursuant to Government Code 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 Determine
d
c. C
ONFERENCE WITH REAL PROPERTY NEGOTIATORS (Pursuant to Government Code section 54956.8)

MEETING WILL BE HELD IN-PERSON AT THE BELL COMMUNITY CENTER PUBLIC COMMENT: If 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, June 25, 2025. 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
June 25, 2025
Property: 6502 Flora 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 REAL PROPERTY NEGOTIATORS (Pursuant to Government Code section 54956.8)
Property: 4738 Florence Avenue, Bell CA 90201
Agency negotiators: Michael L. Antwine II (City Manager), and Dave Aleshire (City Attorney) Negotiating parties: To be Determined

e. CONFERENCE WITH REAL PROPERTY NEGOTIATORS (Pursuant to Government Code section 54956.8)
Property: APN 6226-005-900,901,902,903
Agency negotiators: Michael L. Antwine II (City Manager), and Dave Aleshire (City Attorney) Negotiating parties: To be Determined

f. CONFERENCE WITH REAL PROPERTY NEGOTIATORS (Pursuant to Government Code section 54956.8)
Property: APN 6226-006-900,901,902,903
Agency negotiators: Michael L. Antwine II (City Manager), and Dave Aleshire (City Attorney) Negotiating parties: To be Determined

g. Conference with Legal Counsel – Existing Litigation, Government Code Section 54956.9(d)(1), Quintero vs City of Bell, (ADJ#17522498, ADJ17822363

h. Conference with Legal Counsel – Existing Litigation, Government Code Section 54956.9(d)(1), Esquivel vs City of Bell, (ADJ#1842280

i. Conference with Legal Counsel – Existing Litigation, Government Code Section 54956.9(d)(1), Perez, et. al vs City of Bell, (Case no. 3038839)

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 on any action(s) to be taken by the City Council/Agencies on Closed Session matters.

Presentations and Recognitions

a. Mayor Citizens Award
b. Proclamation declaring July as Parks and Recreation Month c. Proclamation declaring June as LGBTQ Pride Month

Meeting of the
Bell City Council and Related Agencies
June 25, 2025
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

1. Proposition 218 Public Hearing Adopting Changes to Sewer Rates. (City Council)

Recommendation: It is recommended that the City Council:

1. Conduct a public hearing pursuant to Section 6(a)(2) of Article D of the California Constitution regarding the proposed changes to the sewer rates;

2. During the Public Hearing, consider all protests of the proposed changes to the sewer rates;

3. Close the Public Hearing; and

4. If written protests of the proposed sewer rates are presented by less than a majority owners of the affected parcels of real property, take the following actions:

Read by title only, waive further reading and adopt Resolution 2025-31 titled:

“A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BELL

ADOPTING SEWER RATES FOR THE NEXT FIVE YEARS,
COMMENCING JULY 1, 2025, AND MAKING CERTAIN FINDINGS IN CONECTION THEREWITH.”

AND

Read by title only, waive further reading and Introduce Ordinance No. 1294 titled:

“AN ORDINANCE OF THE CITY OF BELL ADOPTING SEWER RATES
FOR THE NEXT FIVE YEARS, COMMENCING JULY 1, 2025, AND
MAKING CERTAIN FINDINGS IN CONNECTION THEREWITH”

2. Public Hearing: City Vacancies Report Pursuant to Assembly Bill 2561. (City Council)

Recommendation: It is recommended that the City Council conduct a public hearing to

Meeting of the
Bell City Council and Related Agencies
June 25, 2025
receive the City Vacancies Report pursuant to Assembly Bill 2561 and allow for any presentations from the City’s represented bargaining units. This item is informational only; no Council action or resolution is required.

3. Adoption of the Recommended Budget for Fiscal Year 2025-2026. (City Council)

Recommendation: It is recommended that the City Council read by title only, waive further reading and adopt Resolution No. 2025-27 titled:

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BELL

ADOPTING THE CITY BUDGET FOR THE FISCAL YEAR
COMMENCING JULY 1, 2025, AND ENDING JUNE 30, 2026

Business Session

4. Adopting a List of Projects for Fiscal Year 2025-2026 for the use of funds from the Road Repair and Accountability Act of 2017 (SB-1). (City Council)

Recommendation: It is recommended that Council read by title only, waive further reading and adopt Resolution No. 2025-32 titled:

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BELL
ADOPTING A LIST OF PROJECTS FOR FISCAL YEAR 2025 -
2026 TOTALLY OR PARTIALLY FUNDED BY SB-1: THE ROAD
REPAIR AND ACCOUNTABILITY ACT OF 2017 (SB 1)

5. Street Improvement Project Fiscal Year 2024-2025 – Award of Contract. (City Council)

Recommendation: It is recommended that Council:

1. Award a construction contract in the amount of $970,144.10 to Sequel Contractors, Inc. for the Street Improvement Project Fiscal Year 2024-2025; and

2. Authorize the City Manager to execute contract change orders in a total amount not to exceed $97,014.41 (ten percent of the bid amount) for any necessary additional work.

6. Consideration to Approve an Agreement between the City of Bell and Salazar Landscaping dba SLA, Inc. (SLA) for Citywide Landscape Maintenance Services. (City Council)

Recommendation: It is recommended that the City Council approve a Public Works Agreement between the City of Bell and SLA Inc, for Citywide Landscape Maintenance Services in an amount not-to-exceed $131,040 annually for a term of 3 years with the option to extend it by 2 additional one-year terms.

7. Amended and Restated Joint Exercise of Powers Authority Agreement with Gateway Water Management Authority. (City Council)

Recommendation: It is recommended that the City Council read by title only, waive further reading and adopt Resolution 2025-33 titled:

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BELL

Meeting of the
Bell City Council and Related Agencies
June 25, 2025

APPROVING THE AMENDED AND RESTATED JOINT

EXERCISE OF POWERS AUTHORITY AGREEMENT, AS

PRESENTED

8. Appointments to the Governing Board of the Los Angeles Gateway Region Integrated Regional Water Management Authority. (City Council)

Recommendation: It is recommended that the City Council read by title only, waive further reading and adopt Resolution 2025-34:

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BELL

APPOINTING A MEMBER AND ALTERNATE TO THE LOS

ANGELES GATEWAY REGION INTEGRATED REGIONAL

WATER MANAGEMENT JOINT POWERS AUTHORITY

GOVERNING BOARD

9. Approval of Amendment No. 7 to the Agreement with Willdan Engineering for Professional Engineering Services. (City Council)

Recommendation: It is recommended that the City Council approve Amendment No. 7 to the Agreement for Contract Services between the City of Bell and Willdan Engineering with the following key terms:

1. Extend the term of the Agreement to June 30, 2026, with an option to renew for an additional one-year to June 30, 2027; and

2. Maintain current hourly rates at the July 1, 2020 pricing.

10. Approval of a Purchase and Sale Agreement between the City of Bell and Mr. Mohamad and Mrs. Cecilia Khalil for certain real property located at 6502 Flora Avenue. (City Council)

Recommendation: It is recommended that the City Council read by title only, waive further reading and adopt Resolution 2025-35 titled:

A RESOLUTION OF THE CITY COUNCIL OF THE OF THE CITY

OF BELL APPROVING A PURCHASE AND SALE AGREEMENT

WITH MUHAMMAD KHALI AND CECILIA KHALIL FOR
CERTAIN PROPERTY LOCATED AT 6502 FLORA AVENUE IN

THE CITY OF BELL

11. Authorization for the Purchase of Microsoft Office 365. (City Council)

Recommendation: It is recommended that the city council authorize the purchase of Microsoft Office 365, through Intelli -Tech for the period of June 2025 to June 2026. This acquisition will continue to enhance our productivity, improve collaboration, and ensure we have access to the latest tools and security features.

12. Consideration to Approve Amendment No. 1 with Municipal Translation Inc. for Translation and Interpretation Services at Council and Commission meetings. (City Council)

Recommendation: It is recommended that the City Council approve Amendment No. 1 to the agreement with Municipal Translation Inc. for translation and interpretation services, Meeting of the
Bell City Council and Related Agencies
June 25, 2025
extending the term of the agreement from July 1, 2025 to June 30, 2026.

13. S
econd Amendment to City of Bell 2022 City Manager Employment Agreement. (City Council)
R
ecommendation: It is recommended that the City Council approve the Sec ond A
mendment to the City of Bell 2022 employment agreement for Michael L. Antwine II as the City Manager.

14. C
onsider Contingent Approval of Appointment of Damian A. Velasco as Chief of Police and Approval of Chief of Police Employment Agreement. (City Council) R
ecommendation: It is recommended that the City Council approve the appointment of Damian A. Velasco as Chief of Police, contingent upon his successful completion of the standard POST pre-employment screening/background investigation and authorize the City Manager to execute the Chief of Police Employment Agreement.

15. A
pproval of a Fiscal Year 2024/25 Budget Amendment to Transfer $250,000 from General Fund Reserves to the Community Development Department's Professional Services Fund R
ecommendation: It is recommended that City Council read by title only, waive further reading and adopt Resolution 2025-36 titled:

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BELL
APPROVING A FISCAL YEAR 2024 -25 BUDGET AMENDMENT
TO TRANSFER $250,000 FROM THE GENERAL FUND

RESERVES TO THE COMMUNITY DEVELOPMENT

DEPARTMENTS PROFESSIONAL SERVICES ACCOUNT
.

Consent Calendar
The fol
lowing 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.

R
ecommendation: Approve agenda items 16 through 18.

16. G
eneral Warrants, Successor Agency to the Bell Community Redevelopment Agency and Community Housing Authority Warrants of June 25, 2025. (Council/Successor Agency to the Bell Community Redevelopment Agency/Bell Community Housing Authority).

17. R
eceive and File Donations Report for the month of May 2025. (City Council)

18. R
eceive and File City of Bell’s and the Bell Successor Agency Investment Report as of May 2025. (City Council)
P
ending Items – None
Meeting of the
Bell City Council and Related Agencies
June 25, 2025
Annual Reorganization of the City Council
The
Reorganization of the Bell City Council for the year of 2025 in accordance with Bell Municipal Code Section 2.04.030(b).
a) E
lection of Mayor
b) Election of Vice Mayor
July
9, 2025 Regular City Council Meeting Cancelled
Next Regular Meeting Wednesday, July 23, 2025
I, A
ngela Bustamante, City Clerk of the City of Bell, certify that a true, accurate copy of the foregoing agenda was posted June 22, 2025 at least seventy-two (72) hours prior to the meeting as required by law.
__________________________
Angela Bustamante, City Clerk

REGULAR MEETING OF THE
BE

LL CITY COUNCIL AND RELATED AGENCIES
J
une 25, 2025
5:00 P
.M. Closed Session
7:00 P.M. Regular Session
I
NDEX
A
genda Category Item Number Page Numbers
C
LOSED SESSION a – i
AG
ENDA & INDEX 1-10
P
UBLIC HEARINGS 1 11-76
2 3
77-79
80 B
USINESS SESSION 4 81-88
5 89-127
6 128-257
7 258-272
8 273-276
9 277-332
10 333
11 334-337
12 338-374
13 375-412
14 413-447
15 448
CO
NSENT CALENDAR 16 449-519
17 520-521
18 522-630
AGENDA ITEM 1
City of Bell
Agenda Report
D
ATE: June 25, 2025
T
O: Mayor and Members of the City Council
F
ROM: John Oskoui, P.E., Interim Public Works Director
Rey Alfonso, P.E., City Engineer
APPR
OVED Michael L. Antwine II (e-signature)
BY: ___________________________________
Michael L. Antwine II, City Manager
SU
BJECT: Proposition 218 Public Hearing Adopting Changes to Sewer Rates R
ECOMMENDATION:

It i
s recommended that the City Council:
1) C
onduct a public hearing pursuant to Section 6(a)(2) of Article D of the California Constitution regarding the proposed changes to the sewer rates 2) D
uring the Public Hearing, consider all protests of the proposed changes to the sewer rates
3) C
lose the Public Hearing
4) If w
ritten protests of the proposed sewer rates are presented by less than a majority owners of the affected parcels of real property, take the following actions:

R
ead by title only, waive further reading and adopt Resolution 2025-31 titled:
“A RE

SOLUTION OF THE CITY COUNCIL OF THE CITY OF BELL ADOPTING SEWER RAT
ES FOR THE NEXT FIVE YEARS, COMMENCING JULY 1, 2025, AND MAKING CERTAIN FINDINGS IN CONECTION THEREWITH.”
AND
R
ead by title only, waive further reading and Introduce Ordinance No. 1294 titled:
“AN O

RDINANCE OF THE CITY OF BELL ADOPTING SEWER RATES FOR THE NEXT FIVE YEARS, COMMENCING JULY 1, 2025, AND MAKING CERTAIN FINDINGS IN CONNECTION THEREWITH”
B
ACKGROUND:

The
City of Bell (City) owns the local sewer system consisting of approximately 37 miles of local gravity flow sewer pipelines that are maintained by the City. The City’s local sewer system is 11 AGENDA ITEM 1
connected at various locations to trunk sewer and pipelines owned and operated by the County of Los Angeles Sanitation Districts.

P
ursuant to the California Health and Safety Code, the City is required to maintain the sewer facilities in a safe and sanitary condition. The City is also required to conform to a variety of regulations of the State Water Resources Control Board for the maintenance of the system and prevention and cleanup of sanitary sewer overflows.

The C
ity’s sewer system was installed from the 1920’s through the 1950’s. Ideally, the City’s ongoing operations to keep the system in optimal conditions should include the cleaning, annual maintenance, manhole maintenance, video recording and repairing faulty sections.

The C
ity established the Sanitary Sewer Maintenance District (District) to levy an assessment on all properties (citywide) within the District receiving sewer services. The levy is to offset the costs incurred in the maintenance and safe operations of the sewer system. Since the assessments are difficult to increase, the City has been looking at other ways to fund the sewer system.

The
City is required to manage, operate, and maintain all parts of its wastewater (sewer) collection system to protect human health and the environment. In 2021, a Sewer System Management Plan (SSMP) was prepared on behalf of the City to manage its wastewater collection system to comply with the State Water Resources Control Board and its subsidiary Regional Water Quality Control Board’s requirement to develop and implement its own unique SSMP. The SSMP supplements and supports the City’s existing operations and maintenance program.

In 2019, a S
ewer Master Plan was prepared to determine the deficiencies in the existing City’s sewer system. It was found that of the 37 miles of sewer pipelines, approximately 3 miles or 8% of the existing system were identified as being deficient. The costs to repair the deficient reaches were estimated to be $6.3 million in 2019. Given the fact that the cost of those repairs was estimated more than 5 years ago, due to inflation (labor, materials, interest rates, and other cost escalation factors) over the past five years, those costs have increased to approximately $8.9 million dollars in FY2025/26.

As part of the Sewer Master Plan, a flow monitoring exercise was also performed. Based on the monitoring information, the City’s overall existing sewer system capacity was considered only “satisfactory” at that time.

D
ISCUSSION:

To offs
et the costs of the maintenance and safe operations of the sewer system, the City levies and collects assessments against parcels within the District each fiscal year. The District is divided into four zones based upon the density, levels, and type of usage and service requirements.

E
xisting Sewer Assessment
The ex
isting rates for sewer service are provided in Table 1.

TABLE 1: CURRENT SANITARY SEWER MAINTENANCE DISTRICT ASSESSMENT ON

PROPERTIES

PROPERTIES CURRENTLY USING SEWER SERVICE
Description of Zones Charges Per Unit Per Year Unit
Zone 1: Residential: 5 or fewer units $33.12/year Dwelling Unit 12 AGENDA ITEM 1
Zone 2: Residential: 6 or more units $42.64/year Dwelling Unit Zone 3: Commercial: Normal Usage $151.53/year Parcel
Zone 4: Commercial: High Usage $252.67/year Parcel

The City has focused a significant amount of attention and effort on planning in all areas of Sewer Utility Operations to ensure that it is able to provide uninterruptible service to its customers, and so that it remains prepared for the future.

Sewer Rate Study

In 2025, the City retained Willdan Financial Services (Willdan) to perform a Sewer Rate Study (Study) to analyze the revenue sources and expenditures of the sewer utility system, develop a five-year financial analysis, and provide recommendations for proposed rate/and or rate structure adjustments to meet the financial and administrative goals and objectives of the City.

It is projected that, under the existing rates, adequate revenues will not be realized for the City to meet its collective projected operating (O&M) financial obligations, cover costs of capital projects, and be able to make anticipated transfers. Therefore, adjustments to current rates are required to generate additional revenue to fund projected costs of operations and capital projects; and maintain adequate cash reserves. The Study shows that under existing rates, if capital projects are funded, there will be a negative fund balance starting in Fiscal Year 2025-2026 and that the negative fund balance will grow to $4.7 million in Fiscal Year 2029-2030.

Proposed Sewer Rates

Per the Sewer Rate Study prepared by Willdan , the City should consider replacing the City’s current process of levy, by way of assessment shown above, with a levy by way of property-based user fee/charge. This proposed fee/charge will still be included as an annual charge on the County of Los Angeles (County) secured property tax bill. Property -based fees and charges are required to comply with Proposition 218, which is a constitutional amendment adopted in 1996.

As such, fees/charge that are incident to property ownership or tenancy, such as sewer rates, must be based on and not exceed the reasonable proportional cost of providing the service, and revenues received from these charges cannot be used for any other purpose than that for which they are imposed.

City staff and Willdan developed a financial plan to adequately fund the sewer system costs.

Willdan projected the revenues needed to fund the sewer system over a period of five years. The annual sewer rates, identified in Table 2 reflecting the cost of providing service to individual customers based on their allocated sewage units associated with their land use type, are developed for a five (5) year period covering fiscal years 2025-2026 through 2029-2030. The fiscal year starts on July 1 and ends on June 30 of the following year for a 12-month consecutive period.

TABLE 2: PROPOSED ANNUAL SEWER RATES (COSTS ARE ANNUAL BY FISCAL YEAR) Description
Existing
Rates¹
Annual Charge for Each Fiscal Year Beginning July 1,
2025² 2026² 2027² 2028² 2029²
Annual Annual Annual Annual Annual Annual
Zone 1: 5 or Fewer Units
(per Dwelling Unit) $33.12 $118.34 $127.80 $136.11 $144.96 $154.38 13 AGENDA ITEM 1
The
proposed sewer rates and charges are anticipated to generate sufficient revenues to meet the minimal funds necessary for the City to operate, maintain and improve the sewer system for the next five years.

Tabl
e 3 shows projected revenues and expenditures and fund balances if the proposed sewer fees are adopted. The projected revenues generated from the proposed annual sewer rates will include cash reserves on hand to help fund ongoing operations in the event of periodic fluctuations in cash flow, and to address unexpected needs that may require cash funding. Table 3 also includes projected revenues for 2026, calculated based on existing rates, as a basis for comparison with the revenues generated, calculated based on the proposed rates.

TABLE 3: PROJECTED OPERATING RESULTS (in $1,000s)

BY FISCAL YEAR (FY)
Description
With
Existing
Rates Projected if Proposed Rates are Approved
FY
2025-26
FY
2025-26
FY
2026-27
FY
2027-28
FY
2028-29
FY
2029-30
Revenues $345 $1,181 $1,270 $1,354 $1,443 $1,538
Operations & Maintenance
Expenses ($340) ($340) ($342) ($356) ($369) ($382)
Other Expenditures & Transfers ($149) ($149) ($149) ($149) ($149) ($149) Capital Projects ($750) ($750) ($773) ($796) ($820) ($844) Beginning Fund Balance $114 $114 $56 $62 $115 $220
Ending Fund Balance ($780) $56 $62 $115 $220 $383
Zone 2: 6 or More Units
(per Dwelling Unit) $42.64 $118.34 $127.80 $136.11 $144.96 $154.38 Zone 3: Commercial Normal
Usage
(per Parcel) $151.53 N/A N/A N/A N/A N/A
Zone 4: Commercial High Usage
(per Parcel) $252.67 N/A N/A N/A N/A N/A
Commercial/Non-Residential
(per Sewage Unit) N/A $118.34 $127.80 $136.11 $144.96 $154.38

1. The City currently charges annual sewer assessments that are submitted to the County of Los Angeles Assessor's Rolls for each parcel. Each parcel is designated a zone ranging from Zone 1 to Zone 4 .

2. The proposed rate structure consists of an annual rate per sewage unit that applies to each parcel based on the number of sewage units associated with that parcel’s land use type in accordance with Los Angeles County’s code of ordinances 20.40.100. “Table A-Sewage units for designated land uses.” Note: Residential properties are assigned a sewage unit for each dwelling unit, i.e. single-family properties receive one sewage unit each, and multi-family properties receive a sewage unit for each dwelling unit. Commercial/Non-Residential properties are assigned one or more sewage units, based on their respective land use and related sewage units as shown in the County code of ordinances. 14 AGENDA ITEM 1
Intention to Levy

On April 23, 2025, the City Council accepted a report from Willdan on the proposed sewer rates and adopted Resolution No. 2025-20 stating its intent to adopt changes to the sewer rates and directing staff to give notice of a public hearing to record owners of parcels at least 45 days before holding a hearing.

Prop 218 Public Hearing Notice

Article XIII D, section 6 of the California Constitution requires the local government to provide notice at least 45 days before holding a hearing at which the proposed fee or charge will be considered.

On May 8, 2025, a Notice of the Public Hearing, set for June 25, 2025, at 7:00 pm at the Bell Community Center regarding the proposed changes to annual sewer rates , was mailed out to record owners of parcels subject to the proposed sewer rates . This noticing provided an additional three (3) days than the legally required time frame to file a protest.

The proposed fees will be subject to a majority protest proceeding at the public hearing and will be enacted only if there is not a written majority protest of identified parcels subject to the fee.

The Notice mailed to property owners described the protest procedure.

Notification of the public hearing was advertised in the Press Telegram on May 28, 2025 and June 4, 2025. The notification, translated in English, Spanish and in Arabic, was also posted on the City’s website.

Public Hearing

At the Public Hearing, staff recommend the City Council consider all protests against the proposed changes to the annual sewer rates. If written protests against the sewer rates are presented by owners of a majority of the affected parcels, the City Council may not impose the proposed sewer rates.

Rate Adjustment Effective Dates

If adopted, the proposed sewer rates will become effective July 1, 2025, through June 30, 2030.

CEQA

As set forth in 14 California Code of Regulation Section 15273, the California Environmental Quality Act does not apply to the establishment, modification, structuring, restructuring, or approval of rates and other charges by public agencies which are for the purpose of meeting operating expenses, purchasing or leasing supplies, equipment, or materials, meeting financial reserve needs and requirements, and/or obtaining funds for capital projects, necessary to maintain service within existing service areas.

Conflict of Interest Laws

Pursuant to “conflicts of interest” laws, if a governmental decision produces a foreseeable material financial effect on parcels of real property owned by councilmembers, then there are certain factors that must be considered by those councilmembers located inside a 500-foot radius from a project’s boundaries. There is, however, an exception to the disqualification requirement: if the “decision solely concerns repairs, replacement or maintenance of existing streets, water, sewer, storm drainage or similar facilities” then the governmental decision is not material to cause a 15 AGENDA ITEM 1
conflict of interest. 2 CCR § 18702.2. Therefore, no council members are disqualified regarding this project and do not need to recuse themselves.

FIS
CAL IMPACT:

The
proposed sewer rates and charges are anticipated to generate sufficient revenues to meet the revenue requirements of the system for a five-year period.

S
TRATEGIC PLAN 2023-25:

Thi
s agenda aligns with the City of Bell 2023-25 Strategic Plan:

Tar
get 3- Elevating Quality of Life
Goal 5- Maintain a clean City
Action Item-Assess existing in-house maintenance programs and contracts.

Target 4 – Fostering Financial Resiliency
Goal 2 – Complete a Fee Study
A
TTACHMENTS:

1. R
esolution No. 2025-31

2. Ordinance No. 1294

3. Sewer Rate Study

4. Notice mailed to voters (45 Day Notice)
16 Resolution 2025-31

Page 1 ends

RESOLUTION NO. 2025–31

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BELL

ADOPTING SEWER RATES FOR THE NEXT FIVE YEARS,
COMMENCING JULY 1, 2025, AND MAKING CERTAIN

FINDINGS IN CONNECTION THEREWITH

WHEREAS, the City of Bell (“City ”) owns the local sewer system consisting of approximately 37 miles of local gravity flow sewer pipelines that is maintained by the City; and

WHEREAS, a well maintained and operated sewer system is essential to protect human health and the environment; and

WHEREAS, the City retained Willdan Financial Services to perform a sewer rate study to analyze the revenue sources and expenditures of the sewer utility system, develop a five-year financial analysis, and provide recommendations for proposed rate/and or rate structure adjustments to meet the financial and administrative goals and objectives of the City; and

WHEREAS, the Sewer Rate Study, dated April 14, 2025 by Willdan Financial Services, for the City presented at this meeting and on file with the City Clerk (the “Sewer Rate Study”), projected that under the existing rates, the sewer system would not meet its collective projected operating (O&M) financial obligations, cover costs of capital projects, and be able to make anticipated transfers; and

WHEREAS, property related fees and charges , including rates for the sewer service are subject to the requirement of Article XIII D, Section 6 of the California Constitution ( also known as Proposition 218); and

WHEREAS, pursuant to Proposition 218, the Sewer Rate Study, shows that (a) the revenues from the fees will not exceed the funds to provide the sewer service; (b) the revenues will only be used for the purposes described and for no other purpose; (c) the amount of the fee imposed on a parcel or a person as an incident of property ownership does not exceed the proportional cost of service attributable to such parcel; (d) no fee is charged unless the service is used by or immediately available to the property owner; and (e) no fee is charged for a general government service where the service is available to the public at large in substantially the same manner as it is to property owners; and

WHEREAS, on April 23, 2025, at its regularly scheduled City Council Meeting, the City Council adopted Resolution No. 2025-20 stating the City Council’s intention to adopt sewer rates and directing staff to give notice of a Public Hearing pursuant to Proposition 218; and

WHEAREAS, in full compliance with the requirements promulgated in Article XIIID, Section 6 of the California Constitution, the City has given notice by mail to each property owner of record as of the last equalized assessment roll informing each recipient of the public hearing date and his and her right to submit a written protest against the proposed changes to the annual sewer rates; and

WHEREAS, the City published notice of public hearing on May 28, 2025 and on June 4, 2025 in the Press Telegram; and

17 WHEREAS, at the time, date and place for the Public Hearing, the City Council did hear and consider any and all objections or protests and written protests to the proposed changes to the annual sewer rates; and

WHEREAS, the City Clerk has counted the written protests in accordance with the rules on Exhibit A hereto and by this reference incorporated herein; and

WHEREAS, the initiation of the property owner notice, hearing, and protest process as required by Proposition 218 for the proposed changes to the annual sewer rates is not considered a “Project” per CEQA Guidelines and therefore no further environmental analysis is required.

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

SECTION 1. The recitals hereto are true and correct and by this reference incorporated herein.

SECTION 2. The City Council hereby approves of the Study and herby finds that (a) the revenues from the fees will not exceed the funds to provide the sewer service; (b) the revenues will only be used for the purposes described and for no other purpose; (c) the amount of the fee imposed on a parcel or a person as an incident of property ownership does not exceed the proportional cost of service attributable to such parcel; (d) no fee is charged unless the service is used by or immediately available to the property owner; and (e) no fee is charged for a general government service where the service is available to the public at large in substantially the same manner as it is to property owners.

SECTION 3. City Council finds that the protest to the changes to the annual sewer rates has not been made by the owners of a majority of parcels of property of record as of the last equalized assessment roll and that a majority protest does not exist within the meani ng of Article XIII D, Section 6 of the California Constitution. The Protest has been counted in accordance with the rules described on Exhibit A hereto.

SECTION 4. The City Council hereby approves and adopts the following annual sewer rates effective July 1, 2025:

ANNUAL SEWER RATES
Description Annual Charge for Each Fiscal Year Beginning July 1, 2025 2026 2027 2028 2029
Zone 1: 5 or Fewer Units
(per Dwelling Unit)
$118.34 $127.80 $136.11 $144.96 $154.38
Zone 2: 6 or More Units
(per Dwelling Unit)
$118.34 $127.80 $136.11 $144.96 $154.38
Zone 3: Commercial Normal
Usage
(per Parcel)

N/A N/A N/A N/A N/A
Zone 4: Commercial High Usage
(per Parcel)

N/A N/A N/A N/A N/A
Commercial/Non-Residential
(per Sewage Unit)
$118.34 $127.80 $136.11 $144.96 $154.38
The rate structure consists of an annual rate per sewage unit that applies to each parcel based on the number of sewage units associated with that parcel’s land use type in accordance with Los Angeles County’s code of ordinances 20.40.100-“Table A-Sewage units for designated land uses.” 18 Note: Residential properties are assigned a sewage unit for each dwelling unit, i.e. single- family properties receive one sewage unit each, and multi -family properties receive a sewage unit for each dwelling unit. Commercial/Non-Residential properties are assigned one or more sewage units, based on their respective land use and related sewage units as shown in the County code of ordinances.

SEC
TION 5. Pursuant to Government Code Section 53759, there is a 120-day Statute of Limitations on challenges to new or increases to sewer rates.

SEC
TION 6. The City Manager or his designee is authorized and directed to take all necessary and proper steps to implement this Resolution.

SEC
TION 7. The City Clerk shall certify the adoption of this Resolution, which shall be effective upon its adoption.

PA
SSED, APPROVED, AND ADOPTED on this 25th day of June 2025. __________________________________

Ali Saleh, Mayor
APPR
OVED AS TO FORM:
_________________________

David Aleshire, City Attorney
I, A
ngela 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 25th day of June 2025 by the following vote:

AYES:

N
OES:

ABSE
NT:

ABST
AIN:
_________________________________

Angela Bustamante, City Clerk
19 Exhibit A

GUIDELINES FOR THE SUBMISSION AND TABULATION OF PROTESTS

A. Submission of Protests:

There will be a hearing conducted in accordance with the provisions of Proposition 218 (California Constitution Art. XIIID). Whether there is a majority protest will be determined in accordance with the following:

1. Count the protests against the total number of parcels subject to the fee [Based on APNs and/or ratepayer’s regular billing].

2. Count one protest per parcel.

3. Where there are multiple parties with an interest in the parcel, protests rights are liberally construed so that a protest by any party counts as a full protest against that parcel. For example, one protest by a tenant, joint owner, a co-trustee of a trust which is the owner, one of multiple owners or a single owner – is sufficient. One tenant in a multifamily rental unit (regardless of the number of units) on one parcel will count as one protest.

Condominiums consist of multiple parcels, so each gets a vote.

4. The written protest must meet the requirements set out in the notice, including that:
protests must be (i) written, (ii) have a clear statement of protest, (iii) identify the legal interest of the person protesting, and (v) identify the address or assessor parcel number of the property. In order to be valid, a protest must bear the original signature of the party with an interest in the property identified on the protest. Protests not bearing the original signature shall not be counted.

5. Protests shall be submitted to the City Clerk per the notice either by delivery (mail or personal) to the office of the City Clerk by 4:00 pm of the day of the hearing or by submitting the protest at the public hearing. Protests must be received by the end of th e public hearing. No postmarks will be accepted.

6. Although oral comments at the public hearing will not qualify as a formal protest unless accompanied by a written protest, the Board of Directors welcomes input from the community during the public hearing on the proposed fees.

7. Any person who submits a protest may withdraw it by submitting to the City Clerk a written request that the protest be withdrawn. The withdrawal of a protest shall contain sufficient information to identify the affected parcel and the name of the record owner or record customer who submitted both the protest and the request that it be withdrawn.

B. Tabulation of Protests:

1. The City Clerk shall determine the validity of all protests. The City Clerk shall not accept as valid any protest if the City Clerk determines that any of the following conditions exist:
a. The protest does not identify a property served by the City. b. The protest does not bear a signature of a record owner of the parcel identified on the protest.
c. The protest does not state its opposition to the proposed fees. d. The protest was not received by the City before the close of the public hearing on the proposed fees.
e. A request to withdraw the protest is received prior to the close of the public hearing on the proposed fees.

2. The City Clerk’s decision that a protest is not valid or does not apply to a specific fee shall constitute a final action of the City and shall not be subject to any internal appeal.

3. A majority protest exists if written protests are timely submitted and not withdrawn by the record owners of a majority of the properties subject to the proposed fee. 20 At the conclusion of the public hearing, the City Clerk shall complete the tabulation of all protests received, including those received during the public hearing and shall report the results of the tabulation to the City Council upon completion. If review of the protests received demonstrates that the number received is manifestly less than one-half of the parcels served by the City with respect to the fee which is the subject of the protest, then the City Clerk may advise the City Council of the absence of a majority protest without determining the validity of all protests.

21 ORDINANCE NO. 1294

AN ORDINANCE OF THE CITY OF BELL ADOPTING SEWER
RATES FOR THE NEXT FIVE YEARS, COMMENCING JULY 1,
2025, AND MAKING CERTAIN FINDINGS IN CONNECTION

THEREWITH

WHEREAS, the City of Bell ( “City’) owns the local sewer system consisting of approximately 37 miles of local gravity flow sewer pipelines that is maintained by the City; and,

WHEREAS, a well maintained and operated sewer system is essential to protect human health and the environment; and

WHEREAS, the Sewer Rate Study, dated April 14, 2025 by Willdan Financial Services for the City presented at this meeting and on file with the City Clerk (the “Sewer Rate Study”), projected that under the existing rates, the sewer system would not meet its collective projected operating (O&M) financial obligations, cover costs of capital projects, and be able to make anticipated transfers; and

WHEREAS, pursuant to Proposition 218, the Sewer Rate Study, shows that (a) the revenues from the fees will not exceed the funds to provide the sewer service; (b) the revenues will only be used for the purposes described and for no other purposes; (c) the amount of the fee imposed on a parcel or a person as an incident of property ownership does not exceed the proportional cost of service attributable to such parcel; (d) no fee is charged unless the service is used by or immediately available to the property owner; and (e) no fee is charged for a general government service where the service is available to the public at large in substantially the same manner as it is to property owners; and

WHEREAS, on April 23 , 2025, at its regularly scheduled City Council Meeting, the City Council adopted Resolution No. 2025-20 stating the City Council’s intention to adopt sewer rates and directing staff to give notice of a Public Hearing pursuant to Proposition 218; and

WHEREAS, in full compliance with the requirements promulgated in Article XIIID, Section 6 of the California Constitution, the City has given notice by mail to each property owner of record as of the last equalized assessment roll informing each recipient of the public hearing date and his and her right to submit a written protest against the proposed changes to the annual sewer rates; and

WHEREAS, the City published notice of public hearing on May 28, 2025 and on June 4,2025 in the Press Telegram; and

22 WHEREAS, at the time, date and place for the Public Hearing, the City Council did hear and consider any and all objections or protests and written protests to the proposed changes to the annual sewer rates; and

WHEREAS, the City Clerk has counted the written protests; and

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF BELL DOES ORDAIN AS FOLLOWS:

Section 1. The recitals hereto are true and correct and by this reference incorporated herein.

Section 2. The City Council hereby approves of the Study and hereby finds that (a) the revenues from the fees will not exceed the funds to provide the sewer service; (b) the revenues will only be used for the purposes described and for no other purpose; (c) the amount of the fee imposed on a parcel or a person as an incident of property owners does not exceed the proportional cost of service attributable to such parcel; (d) no fee is charged unless the service is used by or immediately available to the property owner; and (e) no fee is charged for a general government service where the service is available to the public at large in substantially the same manner as it is to property owners.

Section 3. The City Council finds that the protes t to the changes to the annual sewer rates has not been made by the owners of a majority of parcels of property of record as of the last equalized assessment roll and that a majority protest does not exist within the meaning of Article XIII D, Section 6 of the California Constitution.

Section 4. The City Council hereby approves and adopts the following annual sewer rates effective July 1, 2025:

N/A N/A N/A N/A N/A
Zone 4: Commercial High
Usage
(per Parcel)

N/A N/A N/A N/A N/A
Commercial/Non-Residential
(per Sewage Unit)
$118.34 $127.80 $136.11 $144.96 $154.38

The rate structure consists of an annual rate per sewage unit that applies to each parcel 23 01201.0005/985016.1
based on the number of sewage units associated with that parcel’s land use type in accordance with Los Angeles County’s code of ordinances 20.40.100- “Table A-Sewage units for designated land uses.”

Note: Residential properties are assigned a sewage unit for each dwelling unit, i.e. single-family properties receive one sewage unit each, and multi-family properties receive a sewage unit for each dwelling unit. Commercial/Non-Residential properties are assigned one or more sewage units, based on their respective land use and related sewage units as shown in the County code of ordinances.

Section 5. Pursuant to Government Code Section 53759, there is a 120 day Statute of Limitations on challenges to new or increases to sewer rates

Section 6. The City Manager or his designee is authorized and directed to take all necessary and proper steps to implement this Ordinance.

Section 7. The City Clerk shall publish this Ordinance as required by law and shall certify the adoption of this Ordinance which shall be effective thirty (30) days after its adoption.

PASSED, APPROVED, AND ADOPTED on the 25
th day of June 2025.

___________________________________
Ali Saleh, Mayor

ATTEST

_________________________________
Angela Bustamante, City Clerk

APPROVED AS TO FORM:

_________________________
David Aleshire, City Attorney

24 I, Angela Bustamante, City Clerk of the City of Bell, hereby attest to and certify that the foregoing Ordinance adopted by the Bell City Council at its regular meeting held on the 25th day of June 2025 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

_________________________________
Angela Bustamante, City Clerk

25 Sewer Rate Study
City of Bell
ATTACHMENT 3
26 i Sewer Rate Study
April 14, 2025

TABLE OF CONTENTS
TABLE OF CONTENTS ................................ ................................ ................................ ............................... i Section 1 – Executive Summary................................ ................................ ................................ ...........1

1.1 Introduction ......................................................................................................................................... 1

1.1.1 Sewer System Background ..................................................................................................... 1

1.1.2 Rate Study Background .......................................................................................................... 2

1.2 Overview of the Rate Study Process ............................................................................................ 3

1.3 Summary of Proposed Rates .......................................................................................................... 4 Section 2 – Revenue Sufficiency Analysis ................................ ................................ .......................... 6

2.1 Financial Planning Principles .......................................................................................................... 6

2.2 Existing Rates ....................................................................................................................................... 6

2.3 Revenue Sufficiency Process ......................................................................................................... 7

2.3.1 Budget .......................................................................................................................................... 7

2.3.2 Capital Improvement Plan (CIP) .......................................................................................... 8

2.3.3 Debt Service ............................................................................................................................... 8

2.3.4 Gross and Net Revenue Requirement ................................................................................ 8

2.4 Customer Data ................................................................................................................................... 9

2.4.1 Customer Billing Analysis.......................................................................................................... 9

2.5 Financial Projections Under Existing Rates ................................................................................ 10 Section 3 – Cost-of-Service (COS) Analysis ................................ ................................ ..................... 12

3.1 General .............................................................................................................................................. 12

3.2 Sewer Cost-of-Service .................................................................................................................... 12

3.2.1 Functional Unbundling of Revenue Requirements ........................................................ 12

3.2.2 Classification of Revenue Requirements .......................................................................... 13

3.2.3 Allocation to Customer Classes and Unit Cost Development.................................... 14

3.2.4 Cost-of-Service and Revenue Check ............................................................................... 18 Section 4 – Proposed Test Year Rates ................................ ................................ ............................... 21

4.1 General .............................................................................................................................................. 21

4.2 Rate Comparison with Other Utilities ......................................................................................... 22 27 ii Sewer Rate Study
April 14, 2025

Section 5 – Projected Operating Results ................................ ................................ .......................... 24

5.1 General .............................................................................................................................................. 24

5.2 Projected User Rate Revenues .................................................................................................... 24

5.3 Summary of Projected Operating Results ................................................................................ 26 Section 6 – Conclusions and Recommendations ................................ ................................ ............ 28

6.1 Disclaimers............................................................................................................................................... 28

6.1.1 General Disclaimer ................................................................................................................. 28

6.1.2 Municipal Advisory Disclaimer ............................................................................................. 28

6.2 Conclusions ....................................................................................................................................... 29

6.3 Recommendations ......................................................................................................................... 30

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Section 1 – Executive Summary

1.1 Introduction
Willdan Financial Services (Willdan) is pleased to submit to the City of Bell (City) the following Sewer Rate Study report (Report) for your consideration. Willdan has completed this study of the City’s sewer rates, which are submitted annually to the Los Angeles County Auditor - Controller’s office for placement each year on the Los Angeles County Secured Property Tax Roll. The results of the investigations, analyses, and conclusions from this study are summarized in this Report.

1.1.1 Sewer System Background
The City, pursuant to the provisions of Article 4, Chapter 6, Part 3, Division 5 of the Health and Safety Code of the State of California, established its Sanitary Sewer Maintenance District (District), also referred to in this report as the sewer utility or sewer enterprise, to pay for the ongoing operation and maintenance of the sewer collection and conveyance facilities within the City. Pursuant to the California Health and Safety Code, the City is required to maintain the sewer facilities in a safe and sanitary condition. The City is also required to conform to a variety of regulations of the State Water Control Board for the maintenance of the system and prevention and cleanup of sanitary sewer overflows. The City originally established the Sanitary Sewer Maintenance District to levy an assessment on all properties within the district, citywide, who receive sewer services , to offset the costs incurred for the maintenance and safe operations of the sewer system. Prior to the City establishing this District, charges were levied and collected by Los Angeles County as part of its Consolidated Sewer Maintenance District, and the County was responsible for maintaining and operating the system.

Going forward, this charge will now be levied as a property -related user fee/charge, also referred to as a sewer rate, as opposed to an assessment. This charge will still be included as an annual charge on the County secured property tax bill. Property-based fees and charges are required to comply with the California Constitution Article XIII D, also known as Proposition 218, or simply Prop 218. In summary, this requires fees that are incident to property ownership or tenancy, such as sewer rates, to be bas ed on and not exceed the reasonable proportional cost of providing the service , and revenues received from these charges cannot be used for any other purpose than that for which they are imposed. Proposition 218 also specifies procedural requirements for implementing sewer rates that are different from the requirements for assessments; primarily that new or increased property-based fees or charges may be imposed if there is no written majority protest submitted by more than a majority of property owners or customers subject to the charge. Prop 218 procedures also require a public hearing, with notice provided by mail at least 45 days prior to the date of the hearing.

29 2 | P a g e

The City’s sewer system was installed from the 1920’s through the 1950’s. The City’s ongoing operations to keep the system in optimal condition include the cleaning, video recording , inspection and repairing of faulty sections of the system and replacement of aging or faulty system components . Cleaning of the lines is accomplished by water jetting the interior surface of the sewer lines and subsequent video recording to document current conditions.

Services are provided by private contractors on a bi-annual schedule.

In 2019, the City prepared a Sewer Master Plan to identify deficiencies in the existing mainline sewer system, recommend alternatives to address the deficiencies, prioritize the deficient reaches, and provide the City with a basis for future infrastructure projects. While the City’s overall existing sewer system capacity is satisfactory currently, there are areas in need of improvements. Based on the 2019 computer model results, four areas of deficiencies were identified with cost estimates totaling $6,252,000 (in 2019 dollars). Capital improvements will be programmed and budgeted on an annual basis, based on priority needs as determined by City Staff and the City Council, and based upon available funding, to correct these deficiencies and prevent clogging or sanitary sewer overflows.

The City provides sewer collection services through the established Sanitary Sewer enterprise to different types of customers within its incorporated limits. As mentioned above, customers and property owners in the City pay for these services through an annual charge placed on the Los Angeles Secured Property Tax Bill. The sewer system includes 37 miles of gravity sewer mains with about 8,611 lateral connections, as well as associated lift stations and manholes throughout the City . The sewage collected from the City’s sewer collection system is conveyed to a collection/interceptor main owned by the Sanitation District of Los Angeles County, District 1 for treatment.

1.1.2 Rate Study Background
The City has focused a significant amount of attention and effort on strategic and master planning measures in all areas of sewer utility operations to ensure that it is able to provide uninterrupted service to its customers, and so that it remains prepared for the future. As part of its ongoing planning efforts, the City commissioned Willdan to perform a sewer rate study to analyze the revenue sources and expenditures of the sewer utility system, develop a five- year financial analysis, and provide recommendations for proposed rate and/or rate structure adjustments to meet the financial and administrative goals and objectives of the City. The primary objectives of the rate study include:
➢ Full recovery of costs related to utility operations (i.e., operating and maintenance costs, debt, and other expenditure requirements);
➢ Development of cost-based rate structures;
➢ Maintaining consistency with Water Environment Federation (WEF) guidelines; 30 3 | P a g e

➢ Providing for equity among customer classes;
➢ Meeting substantive and procedural Proposition 218 requirements; ➢ Maximizing administrative efficiency (i.e., easy to understand and implement); and ➢ Incorporation into the analysis of a 5-Year capital funding plan.

1.2 Overview of the Rate Study Process
This study includes the development and presentation of a pro-forma sewer financial plan for a 5-year planning period, as well as the development of cost-based rates through a cost- of-service and rate design analysis. Utility rates must be set at a level such that operating, maintenance, debt , and capital expenses are funded with the revenues received from customers. In addition, the revenues generated from utility rates must only be used for this purpose and for the sewer system only. This is a significant point, as failure to achieve the revenues needed can lead to unacceptable service levels and inadequately maintained facilities. Therefore, a rate study typically consists of the following three interrelated analyses:

I. Financial Planning/Revenue Requirement Analysis : Creates a five-year plan to support an orderly, efficient program of on -going maintenance and operating costs, capital improvement and replacement activities, debt financing, and retirement of outstanding debt. In addition, the plan should fund and maintain appropriate reserve balances based on industry standards, as well as the City’s fiscal policies and specific needs.

II. Cost -of-Service Analysis : Identifies and apportions annual revenue requirements (i.e., expenditures) to operational and functional cost components based on the demand placed on the sewer utility system. The purpose of this analysis is to develop rates that generate revenues relatively proportionate to the share of the utility’s costs. This objective is consistent with industry standards as well as the requirements of Proposition 218 (Prop 218).

III. Rate Design: Develops an equitable and proportionate schedule of rates for the City’s customer base. The policy objectives are coordinated with Prop 218 requirements and cost-of-service objectives to achieve a balance between customer equity and financial stability goals.

31 4 | P a g e

This rate study utilizes generally accepted rate-making principles and standards established by industry experts such as the WEF in its “Financing and Charges for Sewer Systems, Manual of Practice No. 27”. The principles established by these entities are used as guidelines in the development of the proposed sewer rates. A discussion of some of the key principles of ratemaking is presented in the following subsection of this Report.

1.3 Summary of Proposed Rates
The rate study methodology applied in the development of updated sewer rates, outlined in this Report, consisted of reviewing the historical operating results of the sewer utility system, analyzing the budget to identify the net revenue requirements to be recovered from user rate revenues, performing general cost-of-service allocations based on the rate components and functional cost categories, and revising the rates based on the applicable costs and expenditures to be recovered from user rates. In addition, an analysis of the system’s customers was performed to identify the rate determinants since they drive the recommended rates, which are the primary source for generating revenues. The allocated revenue requirements were utilized in conjunction with the rate determinants and rate structure to develop the proposed sewer rates.

The findings and conclusions of the rate analysis, as well as the resulting revised rate recommendations, were utilized to develop a projection of future operating results for a 5 - year planning period from Fiscal Year (FY) 2026 (beginning July 1, 202 5) through FY 2030 (ending June 30, 20 30), herein referred to as the “Projection Period”. The purpose for developing the 5 -year projections is to demonstrate the financial capability of the sewer revenues to support system operations and maintenance, and fund planned capital improvements. The analyses, findings and accompanying recommendations are presented in the subsequent sections of the Report.

Rate Design Analysis
Considers both the level and structure of the rate design to collect the appropiate and targeted level of revenues.

Cost of Service Analysis
Allocates the revenue requirements to the fixed/variable cost components based on cost of service.

Revenue Requirement Analysis
Compares the revenues to the expenses of the utility
to determine the overall rate adjustment required.
32 5 | P a g e

The sewer rate analysis described in the Report is performed based on the general guidelines of the defined objectives, as well as common industry standards for setting utility rates. In addition to focusing on these major objectives, the rate analyses performed herein may consider other factors in designing rates. As discussed in detail later in the Report, other rate considerations generally include sensitivity to the impact of rate changes on existing customers, relative comparability with neighboring utilities, and variations or changes (if any) from the City’s existing rate structure. The proposed sewer rates for assumed implementation effective July 1, 2025 (or other such date as determined by the City) for FY 2025/26 (FY 2026, herein referred to as the “Test Year”) are provided in Table 1 . It is anticipated that the charges, based on these rates , will be submitted to the Los Angeles County Auditor - Controller for placement on Fiscal Year 202 5/2026 Annual Secured Property Tax Bills, which are typically sent out in early fall each year. The existing rates are provided in Table 2.

Table 1 – Proposed Annual Sewer Rates

Description Rate [1]
Annual Charge:

Per Sewage Unit 118.34$
Notes:
[1] The proposed rate structure consists of an annual rate per sewage unit that applies to each parcel based on the number of sewage units associated with that parcel’s land use type in accordance with Los Angeles County’s code of ordinances

20.40.100 – “Table A – Sewage units for designated land uses”. 33 6 | P a g e

Section 2 – Revenue Sufficiency Analysis

2.1 Financial Planning Principles
While the individual rates for a utility system vary based on a variety of factors, rates should be consistent with common rate-making principles within the utility industry . The guiding principle is that rates designed for any utility should provide a reasonable balance between several key factors. In general, the utility rates should:
➢ Generate a stable revenue stream that, when combined with other sources of funds, is sufficient to meet the expenditure requirements and goals of the system; ➢ Be based upon the proportionate cost of providing the service and not exceed the cost of providing the service – in compliance with California Proposition 218; ➢ Be equitable – that is, they should generate revenue from customer classes in a manner which is reasonably in proportion to the cost of providing the service to that customer class;
➢ Be easy to understand by customers; and
➢ Be easy to administer by the utility.

Striking the appropriate balance between the principles of ratemaking is the result of a detailed process of evaluation of revenue requirements and cost-of-service, and how those translate into the rate design alternatives which meet legal requirements and the specific objectives of the utility under the circumstances in which it operates.

2.2 Existing Rates
As described in the Introduction to this report, t he City has an established Sanitary Sewer enterprise to pay for the maintenance and operation of the sewer collection and conveyance facilities within the City. The utility consists of all properties within the corporate limits of the City. Annual sewer charges are submitted to the County of Los Angeles Auditor- Controller, based on the use and associated sewage units for each parcel.

The existing annual sewer rates consist of four zone designations based upon the density, levels, and type of usage and service requirements. Zone 1 consists of residential customers who have five or fewer dwelling units. Zone 2 consists of residential customers who have six or more dwelling units. Zone 3 consists of normal usage commercial customers, and zone 4 consists of high usage commercial customers. The existing rates for sewer service are provided in Table 2.

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Table 2 – Existing Annual Sewer Rates

2.3 Revenue Sufficiency Process
In evaluating whether the existing rates will generate sufficient revenue to meet the expenditure requirements of the sewer system, the annual expenditures required for the sewer utility system (herein referred to as the “Revenue Requirements”) must be developed.

The Revenue Sufficiency Analysis compares the forecasted revenues f or the sewer utility system under existing rates (including customer growth) to the projected Revenue Requirements.

2.3. 1 Budget
The Revenue Sufficiency Analysis performed as part of this study and summarized in this report utilizes the City’s adopted budget for FY 2024/25 (the “Budget” for FY ending June 30, 2025) as one source of data and information to determine the gross Revenue Requirements to be recovered from user rates over the Projection Period. The Budget, as prepared by the City, is provided on a line-item basis, and is used for projecting the budgeted financial needs for the Test Year and the remainder of the Projection Period. In developing the rate analysis, certain adjustments are made such that the expenditures are categorized into either Operating and Maintenance (O&M) expenses or non-operating expenses. In addition, only recurring costs included in the current Budget were included as part of the Revenue Sufficiency Analysis. One-time costs were identified and evaluated in discussions with City Staff and removed if appropriate. Recurring annual costs were escalated using suitable cost indexes or escalation factors, again in discussion with City Staff and based on historical trends.

The O&M expenses are primarily those ongoing costs for labor, materials, supplies, services, etc., required to manage and operate the utility system on a day -to-day basis while maintaining a dependable level of service. The O&M requirements are generally a function Description Rate [1]
Annual Charge:

Zone 1: 5 or Fewer Units (per Dwelling Unit) 33.12$
Zone 2: 6 or More Units (per Dwelling Unit) 42.64$
Zone 3: Commercial Normal Usage(per Parcel) 151.53$
Zone 4: Commercial High Usage (per Parcel) 252.67$
Notes:
[1] The City currently charges annual sewer assessments that are submitted to the County of Los Angeles Assessor's Rolls for each parcel.

Each parcel is designated a zone ranging from Zone 1 to Zone 4 . 35 8 | P a g e

of a budgetary process and are directly related to the level of service provided to customers of the utility system. The non -operating expenses include such items as capital outlay and any other expenses & transfers.

The Budget also identifies estimated revenues derived from sources other than sewer user rates. Such other revenue sources include interest earnings on investments, and various other miscellaneous service charges. The revenues generated from the other sources are applied to the gross Revenue Requirements to reduce the amount of revenue required from user rates. The result is the net Revenue Requirement.

2.3.2 Capital Improvement Plan (CIP)
Based on the 2019 computer model results , and as mentioned previously in this report , four areas of deficiencies were identified in the City’s Sewer Master Plan, with cost estimates totaling $6,252,000 (in 2019 dollars) . Capital improvements will be programmed and budgeted on an annual basis, based on priority needs as determined by City Staff and the City Council, and based upon available funding, to correct these deficiencies , address degradation of aging system components, and reduce the likelihood of clogging or sanitary sewer overflows. Based on direction provided by City staff, the City determined that it would invest $750,000 annually (cost escalated annually at 3.0%) in a sewer line replacement program, on a prior ity and as needed basis. The assumed level of pay -go (cash funded) capital spending for the Projection Period is provided in Table 3.

Table 3 – Sewer Anticipated Capital Spending ($1,000s)

2.3. 3 Debt Service
The City currently has no outstanding debt associated with the sewer utility system. Also, there are no anticipated future debt issuances included in the Projection Period. Therefore, no annual debt service payments or debt service ratio calculations are included in the analysis and Projection Period.

2.3. 4 Gross and Net Revenue Requirement
The proposed sewer rates developed in the Report are designed for assumed implementation for FY 2025/26 (the Test Year as previously defined). The projected Test Year gross and net Revenue Requirements are estimated by utilizing the Budget and capital estimates and assumed funding sources for capital projects as provided by the City, along with anticipated transfers. The Test Year Revenue Requirements that are used for developing the user rates proposed herein are detailed in Appendix A at the end of this report and summarized in Table 4.
2026 2027 2028 2029 2030
Sewer
Sewer Line Replacement Program Cash 750,000 $ 772,500 $ 795,675 $ 819,545 $ 844,132 $ Total Capital Funding 750,000$ 772,500$ 795,675$ 819,545$ 844,132$ Description Funding
Source
Fiscal Year Ending June 30, ($1,000s)
36 9 | P a g e

Table 4 – Test Year Revenue Requirements – FY 2026

The projected Revenue Requirements for the sewer system over the entire Projection Period are provided in Table 5.

Table 5 – Sewer Revenue Requirements for the Projection Period

2.4 Customer Data
The rate study described herein is heavily reliant upon a detailed analysis of system customers and demand characteristics. The existing utility customer base provide s the determinants utilized in the cost-of-service analysis, and ultimately in calculating the sewer charges, which become the foundation for projecting future revenues generated by the sewer system.

It is important to note that the customer analysis focuses primarily on the customer classifications that will be subject to and impacted by the user rates and charges to be developed in the Report. This consists of the general service (retail) customers that currently pay for utility service pursuant to the existing user rates and charges as previously detailed.

For the purposes of the rate study, it is these customers that will generate revenues based upon the proposed user rates and charges.

2.4.1 Customer Billing Analysis
For the rate study, detailed billing information was provided for each individual parcel. This data offered a breakdown of parcels by land use type, demand characteristics and billed charges. An analysis of the billing data was conducted to obtain an understanding of the existing parcels, land use types, and demand characteristics per parcel.

Description Total
Total O&M 340,587$
Existing Debt Service 0
Other Expenditures & Transfers 840,201
Gross Revenue Requirement 1,180,788$
Less Other Revenues (1,800)
Net Revenue Requirement 1,182,588$
2026 2027 2028 2029 2030
Total O&M $340,587 $342,972 $355,849 $369,241 $383,171 Existing Debt Service 0 0 0 0 0
Future Debt Service 0 0 0 0 0
Other Expenditures & Transfers 840,201 927,308 997,744 1,073,555 1,155,117 Gross Revenue Requirement 1,180,788$ 1,270,280$ 1,353,593$ 1,442,796$ 1,538,288$ Less Other Revenues (1,800) (6,915) (6,620) (5,831) (4,500) Net Revenue Requirement 1,182,588$ 1,277,195$ 1,360,213$ 1,448,627$ 1,542,788$ Description Projected for Fiscal Year Ending June 30,
37 10 | P a g e

Each of these parcels embody certain characteristics in their utility use and service demand profiles that provide the basis for establishing an equitable allocation of system costs. The billing data was utilized to identify the number of sewage units associated with each land use type as identified in Los Angeles County’s code of ordinances 20.40.100 – “Table A – Sewage units for designated land uses”.

The historical customer data was also utilized to establish growth trends for each land use type. The growth trends were then used to project the average number of sewage units associated with each land use type for the Test Year plus the remaining years of the Projection Period.

2.5 Financial Projections Under Existing Rates
The projected customers and accompanying sewage units are applied to the existing rates to develop a projection of user rate revenues that would be generated under existing rates.

The revenues are then compared to the projected revenue requirements/expenditures to determine if revenue adjustments are needed. Based on this comparison, it is projected that under the existing rates, the sewer system would not meet its collective projected operating (O&M) financial obligations , cover costs of capital projects , and be able to make anticipated transfers. Therefore, revenue increases are required to generate additional cash to fund projected costs of operations and capital projects and maintain adequate cash reserves.

The City has established an objective of maintaining at least 180 days of cash reserves to help fund ongoing operations in the event of periodic fluctuations in cash flow , and to address unexpected needs that may require cash funding. Since the City currently collects sewer user revenues through the annual assessor’s roll, as opposed to receiving cash through monthly or bi-monthly billings, it is essential that there are adequate cash reserves to cover expenditures between cycles of revenue collection from annual assessor roll payments. The cash-flow statement outlining the projected operating results under existing rates is summarized in Table 6 for the sewer system. The proposed rates and projected financial results are addressed in the subsequent sections of this Report. 38 11 | P a g e

Table 6 – Sewer System Projected Operating Results - Existing Rates ($1,000s)

39 12 | P a g e

Section 3 – Cost -of-Service (COS) Analysis

3.1 General
The costs incurred by a sewer utility system are generally driven by specific service requirements imposed on the system by its customers. There are several different options that can be used to perform a cost -of-service (COS) analysis and the allocation m ethodology depends upon the basis applied. The sewer COS analysis detailed in Section 3.2 involves an examination of the number and type of customers served in accordance with Los Angeles County’s code of ordinances 20.40.100 – “Table A – Sewage units for designated land uses”.

3.2 Sewer Cost -of-Service
The COS analysis for the sewer utility utilizes the revenue requirements for the Test Year as the cost basis. The Test Year revenue requirement s are functionally unbundled, classified and allocated to customer class es to determine the COS by class. More detail relating to the sewer COS approach can be found in Appendix B.

3.2.1 Functional Unbundling of Revenue Requirements
Since the City provides collection services only, t he sewer system costs are unbundled into Collection, Customer, and Administrative functions. A brief description of each component is as follows:
• Collection – costs associated with lines and facilities that transport wastewater from customer properties to treatment facilities;
• Customer – costs associated with billing, and providing other services to customers (e.g., printing, delivering and collecting utility bills, recordkeeping, etc.). • Administration – various overhead and other non-operating costs.

The allocation of the functionally unbundled revenue requirement s for the Test Year are summarized in Table 7.

40 13 | P a g e

Table 7 - Functional Unbundled Cost Allocations

3.2.2 Classification of Revenue Requirement s
The functionally unbundled revenue requirement s for the sewer system are classified into fixed and volumetric customer components based on methodology consistent with the WEF, Manual of Practice No. 27. It is anticipated that the allocation percentages will not change materially during the Projection Period. However, it is important to note that COS analyses are based on the data at a specific point in time ( i.e., the most recent fiscal year). To the extent that weather conditions, economic conditions and customer usage characteristics change during the Projection Period, the cost allocations can be impacted. The system-wide costs by service characteristic are shown in Table 8.

Description Test Year
2026
Total O&M 340,587$
Existing Debt Service 0
Future Debt Service 0
Other Expenditures & Transfers 840,201
Gross Revenue Requirement 1,180,788$
Less Other Revenues (1,800)
Net Revenue Requirement 1,182,588$
Functional Unbundled Revenue Requirement
Treatment 0$
Collection 145,320
Administration 195,267
Transfers 148,756
CIP 750,000
Existing Debt 0
New Debt 0
Non-Rate Revenue 1,800
Fund Balance [1] (58,555)
Total 1,182,588$
Notes:
[1] Represents a transfer from reserves to provide funding for capital outlay and CIP costs.
41 14 | P a g e

Table 8 - Classification of Unbundled Revenue Requirements

3.2.3 Allocation to Customer Classes and Unit Cost
Development
The functionalized and classified revenue requirement s are allocated to customer classes utilizing a unit cost approach as follows:
• Collection – Based on relative percentage of annual sewer usage; • Customer – Based on relative percentage of units by customer class.

The units of service for each component of cost by customer land use type (if applicable) are provided in Table 9. The units of service consist of the number of customer parcels and accompanying sewage units. Customer parcels are based on the number of customer s as provided in the customer data. Sewage Units are based on the total sewage units applied to each parcel.

Component Customer
Treatment 0$
Collection 145,320
Administration 195,267
Transfers 148,756
CIP 750,000
Existing Debt 0
New Debt 0
Non-Rate Rev & Fund Balance (56,755)
Total 1,182,588$
42 15 | P a g e

Table 9 – Units of Service

Description Total Parcels Total Sewage
Units [1]
SINGLE RESIDENCE 1,863 1,863.0
SINGLE RESIDENCE - Pool 64 64.0
SINGLE RESIDENCE - Pool and misc. 2 2.0 SINGLE RESIDENCE - Therapy pool (spa) 1 1.0 SINGLE RESIDENCE - Tennis court 5 5.0 SINGLE RESIDENCE - Guesthouse 2 2.0
SINGLE RESIDENCE - Other improvements only 3 3.0 SINGLE RESIDENCE - Planned unit development (PUD) 13 13.0 SINGLE RESIDENCE - Vacant 2 1.0
SINGLE RESIDENCE 1 1.0
SINGLE RESIDENCE 4 4.0
SINGLE RESIDENCE - Condominium 37 37.0
SINGLE RESIDENCE - Condominium detached 7 7.0 DOUBLE, DUPLEX, OR TWO UNITS 671 1,342.0 DOUBLE, DUPLEX, OR TWO UNITS 6 12.0
DOUBLE, DUPLEX, OR TWO UNITS 1 2.0
THREE UNITS (ANY COMBINATION) 384 1,152.0 THREE UNITS (ANY COMBINATION) 1 3.0
FOUR UNITS (ANY COMBINATION) 215 860.0
FOUR UNITS (ANY COMBINATION) 3 12.0
FIVE OR MORE APARTMENTS OR UNITS 290 2,621.0 FIVE OR MORE APARTMENTS OR UNITS 9 193.0 MANUFACTURED HOME PARK 4 48.0
COMMERCIAL 1 1.0
COMMERCIAL 1 1.0
STORE 72 72.0
STORE COMBINATION (WITH OFFICE OR RESIDENTIAL) 12 24.0 STORE COMBINATION (WITH OFFICE OR RESIDENTIAL) - Store and residential combination 59 118.0 STORE COMBINATION (WITH OFFICE OR RESIDENTIAL) 2 4.0 SUPERMARKET - Supermarket - 12000 sq. ft. or more 3 15.0 SUPERMARKET - Small food store - less than 6000 sq. ft. 1 1.0 SHOPPING CENTER (NEIGHBORHOOD, COMMUNITY) 4 40.0 SHOPPING CENTER (REGIONAL) 2 60.0
OFFICE BUILDING 21 105.0
OFFICE BUILDING 1 5.0
OFFICE BUILDING - Office and residential 1 2.0 HOTEL AND MOTEL 1 25.0
HOTEL AND MOTEL - Motels - under 50 units 7 175.0 HOTEL AND MOTEL - Motels - 50 or more units 1 40.0 PROFESSIONAL BUILDING 7 35.0
PROFESSIONAL BUILDING - Medical/dental Building 7 35.0 PROFESSIONAL BUILDING - Medical/dental Building 1 5.0 RESTAURANT, COCKTAIL LOUNGE 19 95.0
RESTAURANT, COCKTAIL LOUNGE 2 10.0
RESTAURANT, COCKTAIL LOUNGE - Fast Food - Walk up 4 8.0 BANK, SAVINGS & LOAN 4 4.0
SERVICE SHOPS - RADIO AND TV, PAINT SHOPS, ELECTRIC REPAIR, LAUNDRIES, REFRIGERATION SERVICE 3 6.0 SERVICE STATION 3 3.0
SERVICE STATION 2 2.0
AUTO, RECREATION/CONSTRUCTION EQUIPMENT, SALES AND SERVICE 26 26.0 USED CAR SALES 5 5.0
NEW CAR SALES AND SERVICE 1 3.0
AUTO SERVICE CENTERS (NO GASOLINE) 5 5.0 PARKING LOT (COMMERCIAL USE PROPERTIES) 29 14.5 PARKING LOT (COMMERCIAL USE PROPERTIES) - Lots - commercial parking 1 0.5 MISCELLANEOUS INDUSTRIAL 1 2.0
43 16 | P a g e

Table 9 – Units of Service (Cont.)

The revenue requirement for each cost component is divided by its respective unit of service to calculate a unit cost. The annual “Customer” cost per sewage unit applies to all customers of the sewer utility system. The “Customer” cost per sewage unit is demonstrated in Table 10.

Table 10 – Cost Per Unit

The allocation of the revenue requirement to each land use type is based on the “Customer” unit cost multiplied by the total sewage units for each land use type. The total costs to be recovered from each land use are shown in Table 11.

Description Total Parcels Total Sewage
Units [1]

LIGHT MANUFACTURING, SMALL EQUIPMENT MANUFACTURING, SMALL MACHINE SHOPS, INSTRUMENTS MANUFACTURING, PRINTING PLANTS 21 105.0 HEAVY MANUFACTURING 4 400.0
WAREHOUSING, DISTRIBUTION UNDER 10,000 SQ. FT. 6 12.0 WAREHOUSING, DISTRIBUTION 10,000-24,999 SQ. FT. 8 16.0 WAREHOUSING, DISTRIBUTION 25,000-50,000 SQ. FT. 8 16.0 WAREHOUSING. DISTRIBUTION OVER 50,000 SQ. FT. 28 56.0 PUBLIC STORAGE (BEKINS, LYONS) 1 1.0
PARKING LOT (INDUSTRIAL USE) 2 1.0
OPEN STORAGE - Trucking companies, terminals 2 10.0 CLUBS, LODGE HALLS, FRATERNAL ORGANIZATIONS 5 10.0 COMMERCIAL - VACANT LAND 1 0.5
INDUSTRIAL - VACANT LAND 2 1.0
WAREHOUSING, DISTRIBUTION UNDER 10,000 SQ. FT. 32 64.0 WAREHOUSING, DISTRIBUTION 10,000-24,999 SQ. FT. 1 2.0 ADULT DAY SERVICES - SKILLED CARE SERVICES OFFERED 2 20.0 CHURCHES 11 22.0
SCHOOLS (PRIVATE) 2 10.0
CONVALESCENT HOSPITALS, NURSING HOMES 1 50.0 CEMETERIES, MAUSOLEUMS, MORTUARIES 1 1.0 MORTUARIES, FUNERAL HOMES 1 1.0
Sewer System Total 4,036 9,993.5
Notes:
[1] The number of sewage units by land use code per parcel was provided from LA County Code of Ordinances "20.40.100 Table A - Sewer Usage for Designated Land Uses".

Description Customer Total
Total Revenue Requirement 1,182,588$ 1,182,588$ Units of Service 9,993.5
Sewage Units/Yearly
Cost Per Unit 118.34$
Per Sewage Unit/Yearly
44 17 | P a g e

Table 11 – COS by Land Use Type

Description Customer
SINGLE RESIDENCE 220,459.44$
SINGLE RESIDENCE - Pool 7,573.49
SINGLE RESIDENCE - Pool and misc. 236.67
SINGLE RESIDENCE - Therapy pool (spa) 118.34
SINGLE RESIDENCE - Tennis court 591.68
SINGLE RESIDENCE - Guesthouse 236.67
SINGLE RESIDENCE - Other improvements only 355.01
SINGLE RESIDENCE - Planned unit development (PUD) 1,538.36 SINGLE RESIDENCE - Vacant 118.34
SINGLE RESIDENCE 118.34
SINGLE RESIDENCE 473.34
SINGLE RESIDENCE - Condominium 4,378.42
SINGLE RESIDENCE - Condominium detached 828.35
DOUBLE, DUPLEX, OR TWO UNITS 158,806.53
DOUBLE, DUPLEX, OR TWO UNITS 1,420.03
DOUBLE, DUPLEX, OR TWO UNITS 236.67
THREE UNITS (ANY COMBINATION) 136,322.75
THREE UNITS (ANY COMBINATION) 355.01
FOUR UNITS (ANY COMBINATION) 101,768.72
FOUR UNITS (ANY COMBINATION) 1,420.03
FIVE OR MORE APARTMENTS OR UNITS 310,157.92
FIVE OR MORE APARTMENTS OR UNITS 22,838.79
MANUFACTURED HOME PARK 5,680.11
COMMERCIAL 118.34
COMMERCIAL 118.34
STORE 8,520.17
STORE COMBINATION (WITH OFFICE OR RESIDENTIAL) 2,840.06 STORE COMBINATION (WITH OFFICE OR RESIDENTIAL) - Store and residential combination 13,963.61 STORE COMBINATION (WITH OFFICE OR RESIDENTIAL) 473.34
SUPERMARKET - Supermarket - 12000 sq. ft. or more 1,775.04 SUPERMARKET - Small food store - less than 6000 sq. ft. 118.34 SHOPPING CENTER (NEIGHBORHOOD, COMMUNITY) 4,733.43
SHOPPING CENTER (REGIONAL) 7,100.14
OFFICE BUILDING 12,425.25
OFFICE BUILDING 591.68
OFFICE BUILDING - Office and residential 236.67
HOTEL AND MOTEL 2,958.39
HOTEL AND MOTEL - Motels - under 50 units 20,708.75
HOTEL AND MOTEL - Motels - 50 or more units 4,733.43
PROFESSIONAL BUILDING 4,141.75
PROFESSIONAL BUILDING - Medical/dental Building 4,141.75 PROFESSIONAL BUILDING - Medical/dental Building 591.68
RESTAURANT, COCKTAIL LOUNGE 11,241.89
RESTAURANT, COCKTAIL LOUNGE 1,183.36
RESTAURANT, COCKTAIL LOUNGE - Fast Food - Walk up 946.69 BANK, SAVINGS & LOAN 473.34
SERVICE SHOPS - RADIO AND TV, PAINT SHOPS, ELECTRIC REPAIR, LAUNDRIES, REFRIGERATION SERVICE 710.01 SERVICE STATION 355.01
SERVICE STATION 236.67
AUTO, RECREATION/CONSTRUCTION EQUIPMENT, SALES AND SERVICE 3,076.73 USED CAR SALES 591.68
NEW CAR SALES AND SERVICE 355.01
AUTO SERVICE CENTERS (NO GASOLINE) 591.68
PARKING LOT (COMMERCIAL USE PROPERTIES) 1,715.87
PARKING LOT (COMMERCIAL USE PROPERTIES) - Lots - commercial parking 59.17 MISCELLANEOUS INDUSTRIAL 236.67
45 18 | P a g e

Table 11 – COS by Land Use Type (Cont.)

3.2.4 Cost -of-Service and Revenue Check
Once the ‘Customer” cost per sewage unit is developed and the costs associated with each land use based on the number of sewage units are determined in Section 3.2.3, rates can be developed to ensure that each land use is generating sufficient revenues to cover their allocated cost of service. The proposed rate structure consists of an annual rate per sewage unit that applies to each parcel based on the number of sewage units associated with that parcel’s land use type in accordance with Los Angeles County’s code of ordinances

20.40.100 – “Table A – Sewage units for designated land uses”.

The revenues generated by each land use vs the cost allocated to each land use are provided in Table 12.

Description Customer

LIGHT MANUFACTURING, SMALL EQUIPMENT MANUFACTURING, SMALL MACHINE SHOPS, INSTRUMENTS MANUFACTURING, PRINTING PLANTS 12,425.25
HEAVY MANUFACTURING 47,334.29
WAREHOUSING, DISTRIBUTION UNDER 10,000 SQ. FT. 1,420.03 WAREHOUSING, DISTRIBUTION 10,000-24,999 SQ. FT. 1,893.37 WAREHOUSING, DISTRIBUTION 25,000-50,000 SQ. FT. 1,893.37 WAREHOUSING. DISTRIBUTION OVER 50,000 SQ. FT. 6,626.80
PUBLIC STORAGE (BEKINS, LYONS) 118.34
PARKING LOT (INDUSTRIAL USE) 118.34
OPEN STORAGE - Trucking companies, terminals 1,183.36
CLUBS, LODGE HALLS, FRATERNAL ORGANIZATIONS 1,183.36
COMMERCIAL - VACANT LAND 59.17
INDUSTRIAL - VACANT LAND 118.34
WAREHOUSING, DISTRIBUTION UNDER 10,000 SQ. FT. 7,573.49 WAREHOUSING, DISTRIBUTION 10,000-24,999 SQ. FT. 236.67
ADULT DAY SERVICES - SKILLED CARE SERVICES OFFERED 2,366.71 CHURCHES 2,603.39
SCHOOLS (PRIVATE) 1,183.36
CONVALESCENT HOSPITALS, NURSING HOMES 5,916.79
CEMETERIES, MAUSOLEUMS, MORTUARIES 118.34
MORTUARIES, FUNERAL HOMES 118.34
Total 1,182,588.00$
46 19 | P a g e

Table 12 – Proposed Rate Revenues vs COS

Yearly Sewage
Units
Total Annual
Fee Per Sewage
Unit
Total
Calculated
Revenues
Total COS
[A] [B] [C]=[A]*[B] [D]
SINGLE RESIDENCE 1,863.0 118.34$ 220,459.44$ 220,459.44$ SINGLE RESIDENCE - Pool 64.0 118.34$ 7,573.49$ 7,573.49$ SINGLE RESIDENCE - Pool and misc. 2.0 118.34$ 236.67$ 236.67$ SINGLE RESIDENCE - Therapy pool (spa) 1.0 118.34$ 118.34$ 118.34$ SINGLE RESIDENCE - Tennis court 5.0 118.34$ 591.68$ 591.68$ SINGLE RESIDENCE - Guesthouse 2.0 118.34$ 236.67$ 236.67$ SINGLE RESIDENCE - Other improvements only 3.0 118.34$ 355.01$ 355.01$ SINGLE RESIDENCE - Planned unit development (PUD) 13.0 118.34$ 1,538.36$ 1,538.36$ SINGLE RESIDENCE - Vacant 1.0 118.34$ 118.34$ 118.34$ SINGLE RESIDENCE 1.0 118.34$ 118.34$ 118.34$ SINGLE RESIDENCE 4.0 118.34$ 473.34$ 473.34$ SINGLE RESIDENCE - Condominium 37.0 118.34$ 4,378.42$ 4,378.42$ SINGLE RESIDENCE - Condominium detached 7.0 118.34$ 828.35$ 828.35$ DOUBLE, DUPLEX, OR TWO UNITS 1,342.0 118.34$ 158,806.53$ 158,806.53$ DOUBLE, DUPLEX, OR TWO UNITS 12.0 118.34$ 1,420.03$ 1,420.03$ DOUBLE, DUPLEX, OR TWO UNITS 2.0 118.34$ 236.67$ 236.67$ THREE UNITS (ANY COMBINATION) 1,152.0 118.34$ 136,322.75$ 136,322.75$ THREE UNITS (ANY COMBINATION) 3.0 118.34$ 355.01$ 355.01$ FOUR UNITS (ANY COMBINATION) 860.0 118.34$ 101,768.72$ 101,768.72$ FOUR UNITS (ANY COMBINATION) 12.0 118.34$ 1,420.03$ 1,420.03$ FIVE OR MORE APARTMENTS OR UNITS 2,621.0 118.34$ 310,157.92$ 310,157.92$ FIVE OR MORE APARTMENTS OR UNITS 193.0 118.34$ 22,838.79$ 22,838.79$ MANUFACTURED HOME PARK 48.0 118.34$ 5,680.11$ 5,680.11$ COMMERCIAL 1.0 118.34$ 118.34$ 118.34$ COMMERCIAL 1.0 118.34$ 118.34$ 118.34$ STORE 72.0 118.34$ 8,520.17$ 8,520.17$ STORE COMBINATION (WITH OFFICE OR RESIDENTIAL) 24.0 118.34$ 2,840.06$ 2,840.06$ STORE COMBINATION (WITH OFFICE OR RESIDENTIAL) - Store and residential combination 118.0 118.34$ 13,963.61$ 13,963.61$ STORE COMBINATION (WITH OFFICE OR RESIDENTIAL) 4.0 118.34$ 473.34$ 473.34$ SUPERMARKET - Supermarket - 12000 sq. ft. or more 15.0 118.34$ 1,775.04$ 1,775.04$ SUPERMARKET - Small food store - less than 6000 sq. ft. 1.0 118.34$ 118.34$ 118.34$ SHOPPING CENTER (NEIGHBORHOOD, COMMUNITY) 40.0 118.34$ 4,733.43$ 4,733.43$ SHOPPING CENTER (REGIONAL) 60.0 118.34$ 7,100.14$ 7,100.14$ OFFICE BUILDING 105.0 118.34$ 12,425.25$ 12,425.25$ OFFICE BUILDING 5.0 118.34$ 591.68$ 591.68$ OFFICE BUILDING - Office and residential 2.0 118.34$ 236.67$ 236.67$ HOTEL AND MOTEL 25.0 118.34$ 2,958.39$ 2,958.39$ HOTEL AND MOTEL - Motels - under 50 units 175.0 118.34$ 20,708.75$ 20,708.75$ HOTEL AND MOTEL - Motels - 50 or more units 40.0 118.34$ 4,733.43$ 4,733.43$ PROFESSIONAL BUILDING 35.0 118.34$ 4,141.75$ 4,141.75$ PROFESSIONAL BUILDING - Medical/dental Building 35.0 118.34$ 4,141.75$ 4,141.75$ PROFESSIONAL BUILDING - Medical/dental Building 5.0 118.34$ 591.68$ 591.68$ RESTAURANT, COCKTAIL LOUNGE 95.0 118.34$ 11,241.89$ 11,241.89$ RESTAURANT, COCKTAIL LOUNGE 10.0 118.34$ 1,183.36$ 1,183.36$ RESTAURANT, COCKTAIL LOUNGE - Fast Food - Walk up 8.0 118.34$ 946.69$ 946.69$ BANK, SAVINGS & LOAN 4.0 118.34$ 473.34$ 473.34$

SERVICE SHOPS - RADIO AND TV, PAINT SHOPS, ELECTRIC REPAIR, LAUNDRIES, REFRIGERATION SERVICE 6.0 118.34$ 710.01$ 710.01$ SERVICE STATION 3.0 118.34$ 355.01$ 355.01$ SERVICE STATION 2.0 118.34$ 236.67$ 236.67$ AUTO, RECREATION/CONSTRUCTION EQUIPMENT, SALES AND SERVICE 26.0 118.34$ 3,076.73$ 3,076.73$ USED CAR SALES 5.0 118.34$ 591.68$ 591.68$ NEW CAR SALES AND SERVICE 3.0 118.34$ 355.01$ 355.01$ AUTO SERVICE CENTERS (NO GASOLINE) 5.0 118.34$ 591.68$ 591.68$ PARKING LOT (COMMERCIAL USE PROPERTIES) 14.5 118.34$ 1,715.87$ 1,715.87$ PARKING LOT (COMMERCIAL USE PROPERTIES) - Lots - commercial parking 0.5 118.34$ 59.17$ 59.17$ MISCELLANEOUS INDUSTRIAL 2.0 118.34$ 236.67$ 236.67$

LIGHT MANUFACTURING, SMALL EQUIPMENT MANUFACTURING, SMALL MACHINE SHOPS, INSTRUMENTS MANUFACTURING, PRINTING PLANTS 105.0 118.34$ 12,425.25$ 12,425.25$ HEAVY MANUFACTURING 400.0 118.34$ 47,334.29$ 47,334.29$ WAREHOUSING, DISTRIBUTION UNDER 10,000 SQ. FT. 12.0 118.34$ 1,420.03$ 1,420.03$ WAREHOUSING, DISTRIBUTION 10,000-24,999 SQ. FT. 16.0 118.34$ 1,893.37$ 1,893.37$ WAREHOUSING, DISTRIBUTION 25,000-50,000 SQ. FT. 16.0 118.34$ 1,893.37$ 1,893.37$ WAREHOUSING. DISTRIBUTION OVER 50,000 SQ. FT. 56.0 118.34$ 6,626.80$ 6,626.80$ PUBLIC STORAGE (BEKINS, LYONS) 1.0 118.34$ 118.34$ 118.34$ PARKING LOT (INDUSTRIAL USE) 1.0 118.34$ 118.34$ 118.34$ Description
47 20 | P a g e

Table 12 – Proposed Rate Revenues vs COS (Cont.)

Yearly Sewage
Units
Total Annual
Fee Per Sewage
Unit
Total
Calculated
Revenues
Total COS
[A] [B] [C]=[A]*[B] [D]
OPEN STORAGE - Trucking companies, terminals 10.0 118.34$ 1,183.36$ 1,183.36$ CLUBS, LODGE HALLS, FRATERNAL ORGANIZATIONS 10.0 118.34$ 1,183.36$ 1,183.36$ COMMERCIAL - VACANT LAND 0.5 118.34$ 59.17$ 59.17$ INDUSTRIAL - VACANT LAND 1.0 118.34$ 118.34$ 118.34$ WAREHOUSING, DISTRIBUTION UNDER 10,000 SQ. FT. 64.0 118.34$ 7,573.49$ 7,573.49$ WAREHOUSING, DISTRIBUTION 10,000-24,999 SQ. FT. 2.0 118.34$ 236.67$ 236.67$ ADULT DAY SERVICES - SKILLED CARE SERVICES OFFERED 20.0 118.34$ 2,366.71$ 2,366.71$ CHURCHES 22.0 118.34$ 2,603.39$ 2,603.39$ SCHOOLS (PRIVATE) 10.0 118.34$ 1,183.36$ 1,183.36$ CONVALESCENT HOSPITALS, NURSING HOMES 50.0 118.34$ 5,916.79$ 5,916.79$ CEMETERIES, MAUSOLEUMS, MORTUARIES 1.0 118.34$ 118.34$ 118.34$ MORTUARIES, FUNERAL HOMES 1.0 118.34$ 118.34$ 118.34$ Total 9,993.5 1,182,588.00$ 1,182,588.00$
Description
48 21 | P a g e

Section 4 – Proposed Test Year Rate s

4.1 General
The methodology used to calculate the recommended sewer rates proposed herein involves applying the projected customers and sewage units to the user rates developed in the preceding cost -of-service and rate analysis to calculate the estimated revenues that would be generated. Then, these projected revenues are compared to the estimated Test Year revenue requirements, and the sewer rates are adjusted on a percentage basis as necessary until the revenues generated are sufficient to meet the revenue needs of the sewer utility system.

When reviewing potential rate structure options in conjunction with the need for additional revenues, it was determined that revenue adjustments are needed, and the existing rate structure needs to be adjusted based on the COS analysis. The proposed sewer rates for the upcoming fiscal year are composed of an annual per sewage unit charge that applies to each parcel, rather than parcels being charged based on a designated zone. The proposed annual sewer rates for the Test Year are provided again in Table 13.

Table 13 – Proposed Annual Sewer Rates

Description Rate [1]
Annual Charge:

20.40.100 – “Table A – Sewage units for designated land uses”. 49 22 | P a g e

4.2 Rate Comparison with Other Utilities
To provide the City with additional insight regarding the proposed rate levels, the analysis includes a comparison of both the existing and proposed user rates relative to the user rates imposed by other sewer utility systems located in the same region. A summary analysis is provided comparing the cost of the annual sewer collection service for a typical residential customer calculated under the existing and proposed rates of the City with those of the other utilities. Since the City currently bills annually through the County of Los Angeles assessor roll, for purposes of a meaningful comparison, the bills for sewer utilities that do not bill annually (i.e., monthly, or bi-monthly) were converted into annual bills. The rates utilized for the other neighboring utilities bills shown in Figure 1 were in effect as of March of 2025 and are exclusive of local taxes, outside surcharges, franchise fees, regulatory fees, or other rate adjustments. It is important to note that the charges compared in Figure 1 are only for collection of sewage. Like the City of Bell, t reatment and disposal of wastewater for these agencies is provided by the Sanitation District of Los Angeles County, and charges for that component of their service are not included in the comparisons shown. An annual summary comparison with other utilities for a residential customer using 800 cubic feet per monthly billing, or 9,600 cubic feet annually is illustrated in Figure 1.

50 23 | P a g e

It should be noted that when making comparisons of sewer service, several factors affect the level of rates and charges. Such factors may include:
1) Terms of wholesale service agreements;
2) Time since last rate update for comparison providers; 3) Level of treatment and effluent disposal methods of sewer service; 4) Anticipated capital improvement programs and capital financing methods; 5) Plant capacity utilization, age of facilities, and assistance in construction by federal or state grants, connection fees, developer contributions, etc.; 6) General Fund and/or administrative fee transfers made by other systems which may account for differences in the level of rates charged; and 7) Bond covenants and funding requirements of the rates.

For the utilities included in the rate comparisons, no analysis has been performed with consideration of the above -mentioned factors as they relate to the reported sewer rates currently being charged.

51 24 | P a g e

Section 5 – Projected Operating Results

5.1 General
As a conclusion to the study, a pro forma operating statement is developed for the sewer system. The statement summarize s the projected financial results based on the system’s revenues, expenses and other revenue requirements anticipated in future years.

The individual operating statements cover the 5 -fiscal year Projection Period through June 30, 20 30, and are prepared on a cash -flow basis. In addition, the pro forma statement includes the applicable annual percentage rate adjustments necessary to meet the projected revenue requirements. The following discussions describe the development of the major components of the projected operating results.

5.2 Projected User Rate Revenues
The projected user rate revenues are estimated by applying the existing and proposed rates to the projected customers and sewage units. The resulting revenues are then compared to the projected revenue requirements (i.e. , O&M expenses, capital outlay, transfers, etc.) in each fiscal year to determine if the revenues are sufficient to satisfy the expenditure needs of the system. To the extent that there are revenue shortfalls in any given year of the Project Period, the sewer rates developed from the COS and Rate analysis outlined in Section 3 of this report are adjusted on a percentage basis as necessary to generate the required level of revenues. The projected sewer user rate revenues are provided in Table 14.

Table 14 – Projected User Rate Revenues

The projected revenues include the annual sewer rate adjustments anticipated for the remaining years of the Projection Period beyond the Test Year. The proposed user rates from which the projected operating results are developed for the entire 5 -fiscal year Projection Period are provided in Table 15. The rates identified in the table below reflect the cost o f providing service to individual customers based on their allocated sewage units associated with their land use type.

Existing Proposed
2026 2026 2027 2028 2029 2030
Total Annual Sewer Revenues 346,800$ 1,182,588$ 1,277,195$ 1,360,213$ 1,448,627$ 1,542,788$ System Projected
52 25 | P a g e

Table 15 – Proposed Annual Sewer Rates

The projected user rates provided herein for the periods beyond the Test Year are intended for strategic planning purposes, and to provide the City with the estimated future rates that may be needed to satisfy the projected cash flow requirements. The rates are developed in accordance with the assumed customer, sewage unit, expenditure, and revenue estimates projected in this rate study. It is important to note that, since it is necessary to utilize numerous assumptions to develop the projected operating results, to the extent that actual customers, sewage units and/or system expenditures differ from those assumed herein, additional rate adjustments m ay be required. For informative purposes, the annual charge for a representative City residential customer based on the projected rates, as well as the accompanying change in the annual charge for each year of the Projection Period is included herein. An illustration of the projected annual charge for a residential customer receiving one sewage unit is provided in Figure 2.

53 26 | P a g e

5.3 Summary of Projected Operating Results
The cash-flow statement outlining the projected operating results is summarized in Table 16 for the sewer system. The results demonstrate that the proposed rates and charges along with the other system revenues are anticipated to be sufficient to satisfy the projected revenue requirements and capital needs of the utility system.

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Table 16 – Sewer System Projected Operating Results - Proposed Rates ($1,000s)

55 28 | P a g e

Section 6 – Conclusions and Recommendations

6.1 Disclaimers

6.1.1 General Disclaimer
In the development of the proposed user rates and charges, certain historical reviews and analyses have been performed, together with the application of assumptions based on prudent financial, operational, and ratemaking relationships. The cost criteria and customer usage characteristics associated with general ratemaking procedures are representative of averages and are not intended as indicators of any individual customer.

In the preparation of the rate study, certain assumptions have been made with respect to conditions that may occur in the future. While it is believed that these assumptions are reasonable for the purpose of this update, they are dependent upon future even ts and actual conditions may differ from those assumed. In addition, the study has used and relied upon certain information that was provided by other parties not associated with Willdan.

Such information includes, among other things, the City’s audited fi nancial statements, annual operating budgets, periodic reports, and other information and data provided by the City, its independent auditors, and other sources. While the sources are believed to be reliable, there has been no independent verification of the information, and no assurances are offered with respect thereto. To the extent that future conditions differ from those assumed herein or provided by others, the actual results may vary from those projected.

6.1.2 Municipal Advisory Disclaimer
Unless the City of Bell, California (the “City”) has a written engagement from Willdan Financial Services (“Willdan”) for municipal advisory services, Willdan is not advising or recommending any action be taken by the recipient of this information with respect to any prospective, new, or existing municipal financial products or issuance of municipal securities (including with respect to the structure, timing, terms and other similar matters concerning such financial products or issues). The City shall discuss any such information and material contained in Willdan’s work product with any and all internal and/or external advisors and experts, including its own municipal advisor, that it deems appropriate before acting on the information and material.

For the avoidance of doubt and without limiting the foregoing, in connection with any revenue projections, cash -flow analyses, feasibility studies and/or other analyses Willdan may provide the City with respect to financial, economic or other matters relat ing to a prospective, new or existing issuance of municipal securities of the City, (A) any such projections, studies and analyses shall be based upon assumptions, opinions or views (including, without limitation, any assumptions related to revenue growth) established by the City, in conjunction with such of its municipal, financial, legal and other advisers as it deems appropriate; and (B) under no circumstances shall Willdan be asked to provide, nor shall it 56 29 | P a g e

provide, any advice or recommendations or subjective assumptions, opinions or views with respect to the actual or proposed structure, terms, timing, pricing or other similar matters with respect to any municipal financial products or municipal securities issuances, including any revisions or amendments thereto.

6.2 Conclusions
As previously addressed, the purpose of this study is to provide a review of the City’s existing utility rates to determine if rate adjustments are necessary to meet the budgeted and/or projected financial needs in future years. This Report is the result of the collaborative efforts of representatives from both the City and Willdan. City staff were diligent and cooperative in their efforts to ensure the availability and quality of source data on financial and operating matters. Based on the reviews, analyse s and assumptions discussed herein, it is concluded that:

1. The proposed user rates and charges are anticipated to generate sufficient revenues to meet the revenue requirements of the system based upon the projected expenditures, transfers, customers, and sewage units estimated for the Test Year. The proposed rates are based on an assumed implementation date of July 1, 2025. To the extent that the implementation date is postponed, additional rate adjustments and/or appropriations from existing reserves may be necessary.

2. The estimated revenues and resulting rate adjustments for the remaining years of the Projection Period beyond the Test Year are developed based on the customer growth assumptions generated from the historical analyses and discussions with City staff. If the customer growth projections are not realized, additional rate adjustments may be necessary.

3. Future capital improvement projects are assumed to occur as reported by the City. To the extent that the timing of such projects may change from that estimated herein, the cost of such projects and resulting impact on future rates and charges may vary from those indicated.

4. The proposed rates and rate structure are consistent with industry standards for rate-setting practices, comply with Proposition 218 and conform to the City’s financial policies with respect to:
a. Equitably recovering costs;
b. Being based upon the proportionate cost of providing services; and c. Generating sufficient revenue to recover system revenue requirements , fund capital needs, and meet reserve requirements.
57 30 | P a g e

6.3 Recommendations
Based on the reviews, analyses and assumptions addressed herein, as well as the resulting conclusions provided above, it is respectfully recommended that the City:

1. Adopt the proposed sewer rates to be placed on the annual secured property tax roll.

2. Enact the proposed rates to become effective as of July 1, 2025 (or other such date as determined by the City). Based on the timing of the project and the required public hearing procedures and noticing requirements, it is expected that the proposed sewer rates will become effective on the recommended date.

3. Readdress the COS analysis portion of this study every three to five years to ensure costs are recovered consistently with COS principles and customer characteristics.

We appreciate the opportunity to be of service to the City in this engagement. In addition, we would like to thank City staff for the valuable assistance provided during the completion of the rate study.

Respectfully Yours,

WILLDAN FINANCIAL SERVICES
58 APPENDIX

DETAIL FOR THE COMPREHENSIVE

SEWER UTILITY RATE STUDY

COMPREHENSIVE SEWER UTILITY RATE STUDY FOR THE

CITY OF BELL, CALIFORNIA
59 APPENDIX A
Revenue Requirement
from User Rates

60 APPENDIX - A

CITY OF BELL, CA

DEVELOPMENT OF RATE REVENUE REQUIREMENTS
[A] [B] [C]=[A]*[B]
FY 2026 % to Sewer Sewer
1 Total Operating Revenues 1,180,788$ 1,180,788$ Less:

Other Operating Revenues
2 Redemptions 7,500$ 100% 7,500$
3 Interest & Penalties Taxes 1,600 100% 1,600 4 Interest Income 5,700 100% 5,700 5 Unrealized Gain/Loss (16,600) 100% (16,600) 6 Total Other Operating Revenues (1,800) (1,800) 7 Total Rate Revenue Requirement 1,182,588$ 100% 1,182,588$ Line No: Description Test Year for Rate Revenue Requirement A - 1
61 APPENDIX B
Sewer Cost-of-Service
Analysis
62 APPENDIX - B

CITY OF BELL, CA

ALLOCATION OF TEST YEAR COSTS TO SEWER FUNCTION
Line No: Expense Group FY 2026
1 Collection $145,320
2 Treatment 0
3 Administration 195,267
4 Pumping 0
5 Customer Service 0
6 Transfers 148,756
7 Existing Debt 0
8 New Debt 0
9 CIP 750,000
10 Capital Outlay 0
11 Total 1,239,343$
Test Year Revenue Requirement
B - 1
63 APPENDIX - B

CITY OF BELL, CA
SEWER CUSTOMER PARCEL & SEWAGE UNITS BY LAND USE CODE (LUC) - TEST YEAR FY 2026 Total Total
Parcels Sewage Units [1]
1 0100 SINGLE RESIDENCE 1,863 1,863.0 2 0101 SINGLE RESIDENCE - Pool 64 64.0 3 0103 SINGLE RESIDENCE - Pool and misc. 2 2.0 4 0104 SINGLE RESIDENCE - Therapy pool (spa) 1 1.0 5 0106 SINGLE RESIDENCE - Tennis court 5 5.0 6 0108 SINGLE RESIDENCE - Guesthouse 2 2.0 7 0109 SINGLE RESIDENCE - Other improvements only 3 3.0 8 010D SINGLE RESIDENCE - Planned unit development (PUD) 13 13.0 9 010V SINGLE RESIDENCE - Vacant 2 1.0 10 01A6 SINGLE RESIDENCE 1 1.0 11 01D6 SINGLE RESIDENCE 4 4.0 12 010C SINGLE RESIDENCE - Condominium 37 37.0 13 01DC SINGLE RESIDENCE - Condominium detached 7 7.0 14 0200 DOUBLE, DUPLEX, OR TWO UNITS 671 1,342.0 15 0201 DOUBLE, DUPLEX, OR TWO UNITS 6 12.0 16 0203 DOUBLE, DUPLEX, OR TWO UNITS 1 2.0 17 0300 THREE UNITS (ANY COMBINATION) 384 1,152.0 18 0301 THREE UNITS (ANY COMBINATION) 1 3.0 19 0400 FOUR UNITS (ANY COMBINATION) 215 860.0 20 0401 FOUR UNITS (ANY COMBINATION) 3 12.0 21 0500 FIVE OR MORE APARTMENTS OR UNITS 290 2,621.0 22 0501 FIVE OR MORE APARTMENTS OR UNITS 9 193.0 23 0900 MANUFACTURED HOME PARK 4 48.0 24 1000 COMMERCIAL 1 1.0
25 1001 COMMERCIAL 1 1.0
26 1100 STORE 72 72.0
27 1200 STORE COMBINATION (WITH OFFICE OR RESIDENTIAL) 12 24.0 28 1210
STORE COMBINATION (WITH OFFICE OR RESIDENTIAL) - Store and residential combination 59 118.0
29 1212 STORE COMBINATION (WITH OFFICE OR RESIDENTIAL) 2 4.0 30 1400 SUPERMARKET - Supermarket - 12000 sq. ft. or more 3 15.0 31 1420 SUPERMARKET - Small food store - less than 6000 sq. ft. 1 1.0 32 1500 SHOPPING CENTER (NEIGHBORHOOD, COMMUNITY) 4 40.0 33 1600 SHOPPING CENTER (REGIONAL) 2 60.0 34 1700 OFFICE BUILDING 21 105.0 35 1702 OFFICE BUILDING 1 5.0
36 1720 OFFICE BUILDING - Office and residential 1 2.0 37 1802 HOTEL AND MOTEL 1 25.0 38 1820 HOTEL AND MOTEL - Motels - under 50 units 7 175.0 39 1832 HOTEL AND MOTEL - Motels - 50 or more units 1 40.0 40 1900 PROFESSIONAL BUILDING 7 35.0 41 1910 PROFESSIONAL BUILDING - Medical/dental Building 7 35.0 42 1912 PROFESSIONAL BUILDING - Medical/dental Building 1 5.0 43 2100 RESTAURANT, COCKTAIL LOUNGE 19 95.0 44 2102 RESTAURANT, COCKTAIL LOUNGE 2 10.0 45 2110 RESTAURANT, COCKTAIL LOUNGE - Fast Food - Walk up 4 8.0 46 2300 BANK, SAVINGS & LOAN 4 4.0 47 2400

SERVICE SHOPS - RADIO AND TV, PAINT SHOPS, ELECTRIC
REPAIR, LAUNDRIES, REFRIGERATION SERVICE 3 6.0 48 2500 SERVICE STATION 3 3.0
49 2510 SERVICE STATION 2 2.0
50 2600

AUTO, RECREATION/CONSTRUCTION EQUIPMENT, SALES AND
SERVICE 26 26.0
51 2610 USED CAR SALES 5 5.0
52 2620 NEW CAR SALES AND SERVICE 1 3.0 53 2670 AUTO SERVICE CENTERS (NO GASOLINE) 5 5.0 54 2700 PARKING LOT (COMMERCIAL USE PROPERTIES) 29 14.5 Line No: DescriptionLUC
B - 2
64 APPENDIX - B

CITY OF BELL, CA
SEWER CUSTOMER PARCEL & SEWAGE UNITS BY LAND USE CODE (LUC) - TEST YEAR FY 2026 Total Total
Parcels Sewage Units [1]Line No: DescriptionLUC
55 2710
PARKING LOT (COMMERCIAL USE PROPERTIES) - Lots -
commercial parking 1 0.5
56 3010 MISCELLANEOUS INDUSTRIAL 1 2.0 57 3100

LIGHT MANUFACTURING, SMALL EQUIPMENT MANUFACTURING,

SMALL MACHINE SHOPS, INSTRUMENTS MANUFACTURING,
PRINTING PLANTS 21 105.0
58 3200 HEAVY MANUFACTURING 4 400.0 59 3300 WAREHOUSING, DISTRIBUTION UNDER 10,000 SQ. FT. 6 12.0 60 3310 WAREHOUSING, DISTRIBUTION 10,000-24,999 SQ. FT. 8 16.0 61 3320 WAREHOUSING, DISTRIBUTION 25,000-50,000 SQ. FT. 8 16.0 62 3330 WAREHOUSING. DISTRIBUTION OVER 50,000 SQ. FT. 28 56.0 63 3400 PUBLIC STORAGE (BEKINS, LYONS) 1 1.0 64 3800 PARKING LOT (INDUSTRIAL USE) 2 1.0 65 3910 OPEN STORAGE - Trucking companies, terminals 2 10.0 66 6400 CLUBS, LODGE HALLS, FRATERNAL ORGANIZATIONS 5 10.0 67 100V COMMERCIAL - VACANT LAND 1 0.5 68 300V INDUSTRIAL - VACANT LAND 2 1.0 69 330C WAREHOUSING, DISTRIBUTION UNDER 10,000 SQ. FT. 32 64.0 70 331C WAREHOUSING, DISTRIBUTION 10,000-24,999 SQ. FT. 1 2.0 71 7610 ADULT DAY SERVICES - SKILLED CARE SERVICES OFFERED 2 20.0 72 7100 CHURCHES 11 22.0
73 7200 SCHOOLS (PRIVATE) 2 10.0 74 7410 CONVALESCENT HOSPITALS, NURSING HOMES 1 50.0 75 7700 CEMETERIES, MAUSOLEUMS, MORTUARIES 1 1.0 76 7710 MORTUARIES, FUNERAL HOMES 1 1.0 77 Sewer System Total 4,036 9,993.5
[1] The number of sewage units by land use code per parcel was provided from LA County Code of Ordinances "20.40.100 Table A - Sewer Usage for Designated Land Uses".

Notes:

B - 3
65 APPENDIX - B

CITY OF BELL, CA
ALLOCATION OF SEWER COSTS - TEST YEAR FY 2026
Line No: Description Sewer Costs Customer Total (Check) Allocation Factors:
1 Treatment 0.00% 100.00%
2 Collection 100.00% 100.00%
3 Administration 100.00% 100.00%
4 Transfers 100.00% 100.00%
5 CIP 100.00% 100.00%
6 Capital Outlay 0.00% 100.00%
7 Existing Debt 100.00% 100.00%
8 New Debt 100.00% 100.00%
Allocation of Costs:
9 Treatment -$ -$ -$ 10 Collection 145,320 145,320 145,320
11 Administration 195,267 195,267 195,267
12 Transfers 148,756 148,756 148,756
13 CIP 750,000 750,000 750,000
14 Capital Outlay - - -
15 Existing Debt - - -
16 New Debt - - -
17 Non-Rate Rev & Fund Balance (56,755) (56,755) (56,755) 18 Total 1,182,588$ 1,182,588$ 1,182,588$
Total Units of Service 9,993.5
Units
Sewage
Units/Yearly
Cost Per Unit 118.34$
Units
Per Sewage
Unit/Yearly
B - 4
66 APPENDIX - B

CITY OF BELL, CA
SEWER COST OF SERVICE BY COST COMPONENT AND LAND USE CODE (LUC) - TEST YEAR FY 2026 [A] [B]
Customer Total
1 0100 SINGLE RESIDENCE 220,459.44$ 220,459.44$ 2 0101 SINGLE RESIDENCE - Pool 7,573.49 7,573.49 3 0103 SINGLE RESIDENCE - Pool and misc. 236.67 236.67 4 0104 SINGLE RESIDENCE - Therapy pool (spa) 118.34 118.34 5 0106 SINGLE RESIDENCE - Tennis court 591.68 591.68 6 0108 SINGLE RESIDENCE - Guesthouse 236.67 236.67 7 0109 SINGLE RESIDENCE - Other improvements only 355.01 355.01 8 010D SINGLE RESIDENCE - Planned unit development (PUD) 1,538.36 1,538.36 9 010V SINGLE RESIDENCE - Vacant 118.34 118.34 10 01A6 SINGLE RESIDENCE 118.34 118.34 11 01D6 SINGLE RESIDENCE 473.34 473.34 12 010C SINGLE RESIDENCE - Condominium 4,378.42 4,378.42 13 01DC SINGLE RESIDENCE - Condominium detached 828.35 828.35 14 0200 DOUBLE, DUPLEX, OR TWO UNITS 158,806.53 158,806.53 15 0201 DOUBLE, DUPLEX, OR TWO UNITS 1,420.03 1,420.03 16 0203 DOUBLE, DUPLEX, OR TWO UNITS 236.67 236.67 17 0300 THREE UNITS (ANY COMBINATION) 136,322.75 136,322.75 18 0301 THREE UNITS (ANY COMBINATION) 355.01 355.01 19 0400 FOUR UNITS (ANY COMBINATION) 101,768.72 101,768.72 20 0401 FOUR UNITS (ANY COMBINATION) 1,420.03 1,420.03 21 0500 FIVE OR MORE APARTMENTS OR UNITS 310,157.92 310,157.92 22 0501 FIVE OR MORE APARTMENTS OR UNITS 22,838.79 22,838.79 23 0900 MANUFACTURED HOME PARK 5,680.11 5,680.11 24 1000 COMMERCIAL 118.34 118.34
25 1001 COMMERCIAL 118.34 118.34
26 1100 STORE 8,520.17 8,520.17
27 1200 STORE COMBINATION (WITH OFFICE OR RESIDENTIAL) 2,840.06 2,840.06 28 1210
STORE COMBINATION (WITH OFFICE OR RESIDENTIAL) - Store and residential combination 13,963.61 13,963.61
29 1212 STORE COMBINATION (WITH OFFICE OR RESIDENTIAL) 473.34 473.34 30 1400 SUPERMARKET - Supermarket - 12000 sq. ft. or more 1,775.04 1,775.04 31 1420 SUPERMARKET - Small food store - less than 6000 sq. ft. 118.34 118.34 32 1500 SHOPPING CENTER (NEIGHBORHOOD, COMMUNITY) 4,733.43 4,733.43 33 1600 SHOPPING CENTER (REGIONAL) 7,100.14 7,100.14 34 1700 OFFICE BUILDING 12,425.25 12,425.25 35 1702 OFFICE BUILDING 591.68 591.68 36 1720 OFFICE BUILDING - Office and residential 236.67 236.67 37 1802 HOTEL AND MOTEL 2,958.39 2,958.39 38 1820 HOTEL AND MOTEL - Motels - under 50 units 20,708.75 20,708.75 39 1832 HOTEL AND MOTEL - Motels - 50 or more units 4,733.43 4,733.43 40 1900 PROFESSIONAL BUILDING 4,141.75 4,141.75 41 1910 PROFESSIONAL BUILDING - Medical/dental Building 4,141.75 4,141.75 42 1912 PROFESSIONAL BUILDING - Medical/dental Building 591.68 591.68 43 2100 RESTAURANT, COCKTAIL LOUNGE 11,241.89 11,241.89 44 2102 RESTAURANT, COCKTAIL LOUNGE 1,183.36 1,183.36 45 2110 RESTAURANT, COCKTAIL LOUNGE - Fast Food - Walk up 946.69 946.69 46 2300 BANK, SAVINGS & LOAN 473.34 473.34 47 2400

SERVICE SHOPS - RADIO AND TV, PAINT SHOPS, ELECTRIC REPAIR, LAUNDRIES, REFRIGERATION SERVICE 710.01 710.01 48 2500 SERVICE STATION 355.01 355.01 49 2510 SERVICE STATION 236.67 236.67 50 2600 AUTO, RECREATION/CONSTRUCTION EQUIPMENT, SALES AND SERVICE 3,076.73 3,076.73 51 2610 USED CAR SALES 591.68 591.68 52 2620 NEW CAR SALES AND SERVICE 355.01 355.01 53 2670 AUTO SERVICE CENTERS (NO GASOLINE) 591.68 591.68 54 2700 PARKING LOT (COMMERCIAL USE PROPERTIES) 1,715.87 1,715.87 55 2710 PARKING LOT (COMMERCIAL USE PROPERTIES) - Lots - commercial parking 59.17 59.17 56 3010 MISCELLANEOUS INDUSTRIAL 236.67 236.67 57 3100

LIGHT MANUFACTURING, SMALL EQUIPMENT MANUFACTURING, SMALL MACHINE SHOPS, INSTRUMENTS MANUFACTURING, PRINTING PLANTS 12,425.25 12,425.25 58 3200 HEAVY MANUFACTURING 47,334.29 47,334.29 59 3300 WAREHOUSING, DISTRIBUTION UNDER 10,000 SQ. FT. 1,420.03 1,420.03 60 3310 WAREHOUSING, DISTRIBUTION 10,000-24,999 SQ. FT. 1,893.37 1,893.37 Line
No: DescriptionLUC
B - 5
67 APPENDIX - B

CITY OF BELL, CA
SEWER COST OF SERVICE BY COST COMPONENT AND LAND USE CODE (LUC) - TEST YEAR FY 2026 [A] [B]
Customer Total
Line
No: DescriptionLUC
61 3320 WAREHOUSING, DISTRIBUTION 25,000-50,000 SQ. FT. 1,893.37 1,893.37 62 3330 WAREHOUSING. DISTRIBUTION OVER 50,000 SQ. FT. 6,626.80 6,626.80 63 3400 PUBLIC STORAGE (BEKINS, LYONS) 118.34 118.34 64 3800 PARKING LOT (INDUSTRIAL USE) 118.34 118.34 65 3910 OPEN STORAGE - Trucking companies, terminals 1,183.36 1,183.36 66 6400 CLUBS, LODGE HALLS, FRATERNAL ORGANIZATIONS 1,183.36 1,183.36 67 100V COMMERCIAL - VACANT LAND 59.17 59.17 68 300V INDUSTRIAL - VACANT LAND 118.34 118.34 69 330C WAREHOUSING, DISTRIBUTION UNDER 10,000 SQ. FT. 7,573.49 7,573.49 70 331C WAREHOUSING, DISTRIBUTION 10,000-24,999 SQ. FT. 236.67 236.67 71 7610 ADULT DAY SERVICES - SKILLED CARE SERVICES OFFERED 2,366.71 2,366.71 72 7100 CHURCHES 2,603.39 2,603.39
73 7200 SCHOOLS (PRIVATE) 1,183.36 1,183.36 74 7410 CONVALESCENT HOSPITALS, NURSING HOMES 5,916.79 5,916.79 75 7700 CEMETERIES, MAUSOLEUMS, MORTUARIES 118.34 118.34 76 7710 MORTUARIES, FUNERAL HOMES 118.34 118.34 77 Total 1,182,588.00$ 1,182,588.00$
B - 6
68 APPENDIX - B

CITY OF BELL, CA
SEWER RATE CALCULATION - TEST YEAR FY 2026
[A] [B] [C]=[A]/[B]
Total Costs Yearly Sewage
Units
Total Annual Fee
Per Sewage Unit
1 0100 SINGLE RESIDENCE $ 220,459.44 1,863.0 $ 118.34 2 0101 SINGLE RESIDENCE - Pool $ 7,573.49 64.0 $ 118.34 3 0103 SINGLE RESIDENCE - Pool and misc. $ 236.67 2.0 $ 118.34 4 0104 SINGLE RESIDENCE - Therapy pool (spa) $ 118.34 1.0 $ 118.34 5 0106 SINGLE RESIDENCE - Tennis court $ 591.68 5.0 $ 118.34 6 0108 SINGLE RESIDENCE - Guesthouse $ 236.67 2.0 $ 118.34 7 0109 SINGLE RESIDENCE - Other improvements only $ 355.01 3.0 $ 118.34 8 010D SINGLE RESIDENCE - Planned unit development (PUD) $ 1,538.36 13.0 $ 118.34 9 010V SINGLE RESIDENCE - Vacant $ 118.34 1.0 $ 118.34 10 01A6 SINGLE RESIDENCE $ 118.34 1.0 $ 118.34 11 01D6 SINGLE RESIDENCE $ 473.34 4.0 $ 118.34 12 010C SINGLE RESIDENCE - Condominium $ 4,378.42 37.0 $ 118.34 13 01DC SINGLE RESIDENCE - Condominium detached $ 828.35 7.0 $ 118.34 14 0200 DOUBLE, DUPLEX, OR TWO UNITS $ 158,806.53 1,342.0 $ 118.34 15 0201 DOUBLE, DUPLEX, OR TWO UNITS $ 1,420.03 12.0 $ 118.34 16 0203 DOUBLE, DUPLEX, OR TWO UNITS $ 236.67 2.0 $ 118.34 17 0300 THREE UNITS (ANY COMBINATION) $ 136,322.75 1,152.0 $ 118.34 18 0301 THREE UNITS (ANY COMBINATION) $ 355.01 3.0 $ 118.34 19 0400 FOUR UNITS (ANY COMBINATION) $ 101,768.72 860.0 $ 118.34 20 0401 FOUR UNITS (ANY COMBINATION) $ 1,420.03 12.0 $ 118.34 21 0500 FIVE OR MORE APARTMENTS OR UNITS $ 310,157.92 2,621.0 $ 118.34 22 0501 FIVE OR MORE APARTMENTS OR UNITS $ 22,838.79 193.0 $ 118.34 23 0900 MANUFACTURED HOME PARK $ 5,680.11 48.0 $ 118.34 24 1000 COMMERCIAL $ 118.34 1.0 $ 118.34 25 1001 COMMERCIAL $ 118.34 1.0 $ 118.34 26 1100 STORE $ 8,520.17 72.0 $ 118.34 27 1200 STORE COMBINATION (WITH OFFICE OR RESIDENTIAL) $ 2,840.06 24.0 $ 118.34 28 1210
STORE COMBINATION (WITH OFFICE OR RESIDENTIAL) - Store and residential combination $ 13,963.61 118.0 $ 118.34 29 1212 STORE COMBINATION (WITH OFFICE OR RESIDENTIAL) $ 473.34 4.0 $ 118.34 30 1400 SUPERMARKET - Supermarket - 12000 sq. ft. or more $ 1,775.04 15.0 $ 118.34 31 1420 SUPERMARKET - Small food store - less than 6000 sq. ft. $ 118.34 1.0 $ 118.34 32 1500 SHOPPING CENTER (NEIGHBORHOOD, COMMUNITY) $ 4,733.43 40.0 $ 118.34 33 1600 SHOPPING CENTER (REGIONAL) $ 7,100.14 60.0 $ 118.34 34 1700 OFFICE BUILDING $ 12,425.25 105.0 $ 118.34 35 1702 OFFICE BUILDING $ 591.68 5.0 $ 118.34 36 1720 OFFICE BUILDING - Office and residential $ 236.67 2.0 $ 118.34 37 1802 HOTEL AND MOTEL $ 2,958.39 25.0 $ 118.34 38 1820 HOTEL AND MOTEL - Motels - under 50 units $ 20,708.75 175.0 $ 118.34 39 1832 HOTEL AND MOTEL - Motels - 50 or more units $ 4,733.43 40.0 $ 118.34 Line
No: Customer ClassLUC
B - 7
69 APPENDIX - B

CITY OF BELL, CA
SEWER RATE CALCULATION - TEST YEAR FY 2026
[A] [B] [C]=[A]/[B]
Total Costs Yearly Sewage
Units
Total Annual Fee
Per Sewage Unit
Line
No: Customer ClassLUC
40 1900 PROFESSIONAL BUILDING $ 4,141.75 35.0 $ 118.34 41 1910 PROFESSIONAL BUILDING - Medical/dental Building $ 4,141.75 35.0 $ 118.34 42 1912 PROFESSIONAL BUILDING - Medical/dental Building $ 591.68 5.0 $ 118.34 43 2100 RESTAURANT, COCKTAIL LOUNGE $ 11,241.89 95.0 $ 118.34 44 2102 RESTAURANT, COCKTAIL LOUNGE $ 1,183.36 10.0 $ 118.34 45 2110 RESTAURANT, COCKTAIL LOUNGE - Fast Food - Walk up $ 946.69 8.0 $ 118.34 46 2300 BANK, SAVINGS & LOAN $ 473.34 4.0 $ 118.34 47 2400

SERVICE SHOPS - RADIO AND TV, PAINT SHOPS, ELECTRIC REPAIR, LAUNDRIES, REFRIGERATION SERVICE $ 710.01 6.0 $ 118.34 48 2500 SERVICE STATION $ 355.01 3.0 $ 118.34 49 2510 SERVICE STATION $ 236.67 2.0 $ 118.34 50 2600 AUTO, RECREATION/CONSTRUCTION EQUIPMENT, SALES AND SERVICE $ 3,076.73 26.0 $ 118.34 51 2610 USED CAR SALES $ 591.68 5.0 $ 118.34 52 2620 NEW CAR SALES AND SERVICE $ 355.01 3.0 $ 118.34 53 2670 AUTO SERVICE CENTERS (NO GASOLINE) $ 591.68 5.0 $ 118.34 54 2700 PARKING LOT (COMMERCIAL USE PROPERTIES) $ 1,715.87 14.5 $ 118.34 55 2710 PARKING LOT (COMMERCIAL USE PROPERTIES) - Lots - commercial parking $ 59.17 0.5 $ 118.34 56 3010 MISCELLANEOUS INDUSTRIAL $ 236.67 2.0 $ 118.34 57 3100

LIGHT MANUFACTURING, SMALL EQUIPMENT MANUFACTURING, SMALL MACHINE SHOPS, INSTRUMENTS MANUFACTURING, PRINTING PLANTS $ 12,425.25 105.0 $ 118.34 58 3200 HEAVY MANUFACTURING $ 47,334.29 400.0 $ 118.34 59 3300 WAREHOUSING, DISTRIBUTION UNDER 10,000 SQ. FT. $ 1,420.03 12.0 $ 118.34 60 3310 WAREHOUSING, DISTRIBUTION 10,000-24,999 SQ. FT. $ 1,893.37 16.0 $ 118.34 61 3320 WAREHOUSING, DISTRIBUTION 25,000-50,000 SQ. FT. $ 1,893.37 16.0 $ 118.34 62 3330 WAREHOUSING. DISTRIBUTION OVER 50,000 SQ. FT. $ 6,626.80 56.0 $ 118.34 63 3400 PUBLIC STORAGE (BEKINS, LYONS) $ 118.34 1.0 $ 118.34 64 3800 PARKING LOT (INDUSTRIAL USE) $ 118.34 1.0 $ 118.34 65 3910 OPEN STORAGE - Trucking companies, terminals $ 1,183.36 10.0 $ 118.34 66 6400 CLUBS, LODGE HALLS, FRATERNAL ORGANIZATIONS $ 1,183.36 10.0 $ 118.34 67 100V COMMERCIAL - VACANT LAND $ 59.17 0.5 $ 118.34 68 300V INDUSTRIAL - VACANT LAND $ 118.34 1.0 $ 118.34 69 330C WAREHOUSING, DISTRIBUTION UNDER 10,000 SQ. FT. $ 7,573.49 64.0 $ 118.34 70 331C WAREHOUSING, DISTRIBUTION 10,000-24,999 SQ. FT. $ 236.67 2.0 $ 118.34 71 7610 ADULT DAY SERVICES - SKILLED CARE SERVICES OFFERED $ 2,366.71 20.0 $ 118.34 72 7100 CHURCHES $ 2,603.39 22.0 $ 118.34 73 7200 SCHOOLS (PRIVATE) $ 1,183.36 10.0 $ 118.34 74 7410 CONVALESCENT HOSPITALS, NURSING HOMES $ 5,916.79 50.0 $ 118.34 75 7700 CEMETERIES, MAUSOLEUMS, MORTUARIES $ 118.34 1.0 $ 118.34 76 7710 MORTUARIES, FUNERAL HOMES $ 118.34 1.0 $ 118.34 B - 8
70 APPENDIX - B

CITY OF BELL, CA
SEWER REVENUE VS COST OF SERVICE BY LAND USE CODE (LUC) CHECK - TEST YEAR FY 2026 [A] [B] [C]=[A]*[B] [D] [E]=[D]-[C]
Yearly Sewage
Units
Total Annual Fee
Per Sewage Unit
Total Calculated
Revenues Total COS
Difference
Calc vs COS
1 0100 SINGLE RESIDENCE 1,863.0 118.34$ 220,459.44$ 220,459.44$ -$ 2 0101 SINGLE RESIDENCE - Pool 64.0 118.34$ 7,573.49$ 7,573.49$ -$ 3 0103 SINGLE RESIDENCE - Pool and misc. 2.0 118.34$ 236.67$ 236.67$ -$ 4 0104 SINGLE RESIDENCE - Therapy pool (spa) 1.0 118.34$ 118.34$ 118.34$ -$ 5 0106 SINGLE RESIDENCE - Tennis court 5.0 118.34$ 591.68$ 591.68$ -$ 6 0108 SINGLE RESIDENCE - Guesthouse 2.0 118.34$ 236.67$ 236.67$ -$ 7 0109 SINGLE RESIDENCE - Other improvements only 3.0 118.34$ 355.01$ 355.01$ -$ 8 010D SINGLE RESIDENCE - Planned unit development (PUD) 13.0 118.34$ 1,538.36$ 1,538.36$ -$ 9 010V SINGLE RESIDENCE - Vacant 1.0 118.34$ 118.34$ 118.34$ -$ 10 01A6 SINGLE RESIDENCE 1.0 118.34$ 118.34$ 118.34$ -$ 11 01D6 SINGLE RESIDENCE 4.0 118.34$ 473.34$ 473.34$ -$ 12 010C SINGLE RESIDENCE - Condominium 37.0 118.34$ 4,378.42$ 4,378.42$ -$ 13 01DC SINGLE RESIDENCE - Condominium detached 7.0 118.34$ 828.35$ 828.35$ -$ 14 0200 DOUBLE, DUPLEX, OR TWO UNITS 1,342.0 118.34$ 158,806.53$ 158,806.53$ -$ 15 0201 DOUBLE, DUPLEX, OR TWO UNITS 12.0 118.34$ 1,420.03$ 1,420.03$ -$ 16 0203 DOUBLE, DUPLEX, OR TWO UNITS 2.0 118.34$ 236.67$ 236.67$ -$ 17 0300 THREE UNITS (ANY COMBINATION) 1,152.0 118.34$ 136,322.75$ 136,322.75$ -$ 18 0301 THREE UNITS (ANY COMBINATION) 3.0 118.34$ 355.01$ 355.01$ -$ 19 0400 FOUR UNITS (ANY COMBINATION) 860.0 118.34$ 101,768.72$ 101,768.72$ -$ 20 0401 FOUR UNITS (ANY COMBINATION) 12.0 118.34$ 1,420.03$ 1,420.03$ -$ 21 0500 FIVE OR MORE APARTMENTS OR UNITS 2,621.0 118.34$ 310,157.92$ 310,157.92$ -$ 22 0501 FIVE OR MORE APARTMENTS OR UNITS 193.0 118.34$ 22,838.79$ 22,838.79$ -$ 23 0900 MANUFACTURED HOME PARK 48.0 118.34$ 5,680.11$ 5,680.11$ -$ 24 1000 COMMERCIAL 1.0 118.34$ 118.34$ 118.34$ -$ 25 1001 COMMERCIAL 1.0 118.34$ 118.34$ 118.34$ -$ 26 1100 STORE 72.0 118.34$ 8,520.17$ 8,520.17$ -$ 27 1200 STORE COMBINATION (WITH OFFICE OR RESIDENTIAL) 24.0 118.34$ 2,840.06$ 2,840.06$ -$ 28 1210
STORE COMBINATION (WITH OFFICE OR RESIDENTIAL) - Store and residential combination 118.0 118.34$ 13,963.61$ 13,963.61$ -$ 29 1212 STORE COMBINATION (WITH OFFICE OR RESIDENTIAL) 4.0 118.34$ 473.34$ 473.34$ -$ 30 1400 SUPERMARKET - Supermarket - 12000 sq. ft. or more 15.0 118.34$ 1,775.04$ 1,775.04$ -$ 31 1420 SUPERMARKET - Small food store - less than 6000 sq. ft. 1.0 118.34$ 118.34$ 118.34$ -$ 32 1500 SHOPPING CENTER (NEIGHBORHOOD, COMMUNITY) 40.0 118.34$ 4,733.43$ 4,733.43$ -$ 33 1600 SHOPPING CENTER (REGIONAL) 60.0 118.34$ 7,100.14$ 7,100.14$ -$ 34 1700 OFFICE BUILDING 105.0 118.34$ 12,425.25$ 12,425.25$ -$ 35 1702 OFFICE BUILDING 5.0 118.34$ 591.68$ 591.68$ -$ 36 1720 OFFICE BUILDING - Office and residential 2.0 118.34$ 236.67$ 236.67$ -$ 37 1802 HOTEL AND MOTEL 25.0 118.34$ 2,958.39$ 2,958.39$ -$ 38 1820 HOTEL AND MOTEL - Motels - under 50 units 175.0 118.34$ 20,708.75$ 20,708.75$ -$ 39 1832 HOTEL AND MOTEL - Motels - 50 or more units 40.0 118.34$ 4,733.43$ 4,733.43$ -$ 40 1900 PROFESSIONAL BUILDING 35.0 118.34$ 4,141.75$ 4,141.75$ -$ 41 1910 PROFESSIONAL BUILDING - Medical/dental Building 35.0 118.34$ 4,141.75$ 4,141.75$ -$ 42 1912 PROFESSIONAL BUILDING - Medical/dental Building 5.0 118.34$ 591.68$ 591.68$ -$ 43 2100 RESTAURANT, COCKTAIL LOUNGE 95.0 118.34$ 11,241.89$ 11,241.89$ -$ 44 2102 RESTAURANT, COCKTAIL LOUNGE 10.0 118.34$ 1,183.36$ 1,183.36$ -$ 45 2110 RESTAURANT, COCKTAIL LOUNGE - Fast Food - Walk up 8.0 118.34$ 946.69$ 946.69$ -$ 46 2300 BANK, SAVINGS & LOAN 4.0 118.34$ 473.34$ 473.34$ -$ 47 2400

SERVICE SHOPS - RADIO AND TV, PAINT SHOPS, ELECTRIC REPAIR, LAUNDRIES, REFRIGERATION SERVICE 6.0 118.34$ 710.01$ 710.01$ -$ 48 2500 SERVICE STATION 3.0 118.34$ 355.01$ 355.01$ -$ Line
No: Customer ClassLUC
B - 9
71 APPENDIX - B

CITY OF BELL, CA
SEWER REVENUE VS COST OF SERVICE BY LAND USE CODE (LUC) CHECK - TEST YEAR FY 2026 [A] [B] [C]=[A]*[B] [D] [E]=[D]-[C]
Yearly Sewage
Units
Total Annual Fee
Per Sewage Unit
Total Calculated
Revenues Total COS
Difference
Calc vs COS
Line
No: Customer ClassLUC
49 2510 SERVICE STATION 2.0 118.34$ 236.67$ 236.67$ -$ 50 2600 AUTO, RECREATION/CONSTRUCTION EQUIPMENT, SALES AND SERVICE 26.0 118.34$ 3,076.73$ 3,076.73$ -$ 51 2610 USED CAR SALES 5.0 118.34$ 591.68$ 591.68$ -$ 52 2620 NEW CAR SALES AND SERVICE 3.0 118.34$ 355.01$ 355.01$ -$ 53 2670 AUTO SERVICE CENTERS (NO GASOLINE) 5.0 118.34$ 591.68$ 591.68$ -$ 54 2700 PARKING LOT (COMMERCIAL USE PROPERTIES) 14.5 118.34$ 1,715.87$ 1,715.87$ -$ 55 2710 PARKING LOT (COMMERCIAL USE PROPERTIES) - Lots - commercial parking 0.5 118.34$ 59.17$ 59.17$ -$ 56 3010 MISCELLANEOUS INDUSTRIAL 2.0 118.34$ 236.67$ 236.67$ -$ 57 3100

LIGHT MANUFACTURING, SMALL EQUIPMENT MANUFACTURING, SMALL MACHINE SHOPS, INSTRUMENTS MANUFACTURING, PRINTING PLANTS 105.0 118.34$ 12,425.25$ 12,425.25$ -$ 58 3200 HEAVY MANUFACTURING 400.0 118.34$ 47,334.29$ 47,334.29$ -$ 59 3300 WAREHOUSING, DISTRIBUTION UNDER 10,000 SQ. FT. 12.0 118.34$ 1,420.03$ 1,420.03$ -$ 60 3310 WAREHOUSING, DISTRIBUTION 10,000-24,999 SQ. FT. 16.0 118.34$ 1,893.37$ 1,893.37$ -$ 61 3320 WAREHOUSING, DISTRIBUTION 25,000-50,000 SQ. FT. 16.0 118.34$ 1,893.37$ 1,893.37$ -$ 62 3330 WAREHOUSING. DISTRIBUTION OVER 50,000 SQ. FT. 56.0 118.34$ 6,626.80$ 6,626.80$ -$ 63 3400 PUBLIC STORAGE (BEKINS, LYONS) 1.0 118.34$ 118.34$ 118.34$ -$ 64 3800 PARKING LOT (INDUSTRIAL USE) 1.0 118.34$ 118.34$ 118.34$ -$ 65 3910 OPEN STORAGE - Trucking companies, terminals 10.0 118.34$ 1,183.36$ 1,183.36$ -$ 66 6400 CLUBS, LODGE HALLS, FRATERNAL ORGANIZATIONS 10.0 118.34$ 1,183.36$ 1,183.36$ -$ 67 100V COMMERCIAL - VACANT LAND 0.5 118.34$ 59.17$ 59.17$ -$ 68 300V INDUSTRIAL - VACANT LAND 1.0 118.34$ 118.34$ 118.34$ -$ 69 330C WAREHOUSING, DISTRIBUTION UNDER 10,000 SQ. FT. 64.0 118.34$ 7,573.49$ 7,573.49$ -$ 70 331C WAREHOUSING, DISTRIBUTION 10,000-24,999 SQ. FT. 2.0 118.34$ 236.67$ 236.67$ -$ 71 7610 ADULT DAY SERVICES - SKILLED CARE SERVICES OFFERED 20.0 118.34$ 2,366.71$ 2,366.71$ -$ 72 7100 CHURCHES 22.0 118.34$ 2,603.39$ 2,603.39$ -$ 73 7200 SCHOOLS (PRIVATE) 10.0 118.34$ 1,183.36$ 1,183.36$ -$ 74 7410 CONVALESCENT HOSPITALS, NURSING HOMES 50.0 118.34$ 5,916.79$ 5,916.79$ -$ 75 7700 CEMETERIES, MAUSOLEUMS, MORTUARIES 1.0 118.34$ 118.34$ 118.34$ -$ 76 7710 MORTUARIES, FUNERAL HOMES 1.0 118.34$ 118.34$ 118.34$ -$ 77 Total 9,993.5 1,182,588.00$ 1,182,588.00$ -$ B - 10
72 www.willdan.com
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73 CITY OF BELL

NOTICE OF PUBLIC HEARING REGARDING

PROPOSED CHANGES TO ANNUAL SEWER RATES
Hearing Date & Time: June 25, 2025, 7:00 PM
Hearing Location: Bell Community Center
6250 Pine Avenue, Bell, California 90201
Why are you receiving this notice?
The City of Bell (City) is mailing this notice to you because you are a sewer customer, or record owner of property that receives sewer service. This notice is provided pursuant to California Constitution Article XIIID (also known as “Proposition 218”), which requires the City to notify property owners and customers of proposed changes to property-related fees such as those for sewer service. This notice describes proposed changes to the rates for this service and provides information about a public hearing to be held on June 25, 2025, at 7:00 p.m., at the Bell Community Center, 6250 Pine Avenue, Bell, CA 90201. If adopted, the proposed rates for sewer service will be in effect beginning July 1, 2025.

What do the sewer rates fund?
The City owns facilities to collect and convey sewage from residential, multi-family, and non-residential customers within its service territory. The sewage collected is transported to a collection/interceptor main owned by the Sanitation District of Los Angeles County, District 1, for treatment and disposal by the District at their facilities. The costs for treatment and disposal are billed separately by the Sanitation District and are not included in this City sewer charge.

The sewer infrastructure owned by the City includes 37 miles of gravity sewer mains. The City maintains, inspects and repairs the collection infrastructure, including pipelines, laterals and lift stations, and is also responsible for repair and replacement of aging and worn system components, and responding to emergency sanitary sewer overflows. The City conducts sanitary sewer system inspections every other year, which includes manholes, pipes, siphons, and completes regular cleaning and repairs.

Annual sewer rates charged to system users (customers) are placed each year on the Los Angeles County Secured Property Tax roll and are paid through property owners’ property taxes. These charges are the primary source of revenue to operate and maintain the sewer collection system and are used solely for this purpose. Sewer rate revenue provides funding for costs related to system operations, maintenance, capital projects, debt repayment, administration, as well as costs related to prudent long-term operational or financial management of the utility, such as maintaining adequate fund reserves and planning for contingencies.

Proposed annual rates are based on a comprehensive utility rate study and financial plan completed by an independent consultant. The rate structure was designed so that revenues derived from the proposed rates do not exceed the amount of revenue required for the City to provide the service, nor will the revenue from the sewer rates be used for any purposes other than those for which they are imposed. The amount of the proposed rates imposed on any parcel or person as an incidence of their property ownership will not exceed the proportional cost of the service attributable to such parcel; and no rate will be imposed for service unless that service is actually used by, or immediately available to, the property owner or customer in question. The draft rate study prepared by the consultant is available for review with the City Clerk.

Why are the sewer rate changes needed?
The utility rate study determined that the City’s current annual sewer rates cannot provide the funding needed to meet the rising costs of system operations, inspections, and maintenance. These costs increase over time and include administrative support for operations, repair and replacement of aging system components, and maintenance of designated reserves. While these costs have risen every year, sewer charges have not increased in more than 25 years, leaving the City with insufficient revenue to address increasing costs.

In addition, the City’s 2019 Sewer Master Plan identified approximately $6,252,000 in capital facilities projects necessary to upgrade and modernize collection facilities to maintain critical infrastructure that ensures the health and safety of the community, minimize occurrences of sanitary sewer overflows, and provide for continued uninterrupted sewer service.

The City is also planning to implement a Fats, Oils and Greases (FOG) program to reduce the amount of fats, oils and greases discharged to the sanitary sewer collection system, which will reduce maintenance costs for the sewer system and also help eliminate sewer system overflows.

ATTACHMENT 4
74 How the annual sewer rates are determined and how they work To develop sewer rates that generate sufficient revenue to meet fiscal and policy objectives of the City, a determination of the annual revenue required from sewer rates was completed. As previously mentioned, the revenue requirement includes projected expenditures for operations, maintenance, inspections, repair and replacement of aging system components, equipment, and planned capital projects.

The revenue requirement also includes designated reserves. Maintaining appropriate reserve funds is critical to the ability of the City to serve its customers and respond to unforeseen and unpredictable events and costs. The reserves, like all elements of the sewer charges, may only be used to fund costs associated with the sewer system.

The revenue requirements were compared to the total sources of available funds under existing rates during each year of the forecast period to determine the adequacy of projected revenues to meet those requirements. Where a shortage of revenue was found, a series of revenue adjustments was calculated, which if implemented, will provide sufficient revenue to meet those needs. Following is a description of the proposed sewer rates.

The structure of the proposed annual sewer rates is mostly consistent with the previous rates and modeled after the benefit methodology utilized for the Los Angeles County Consolidated Sewer Maintenance Assessment District. Some adjustments were made to per-benefit unit charges for different types of customers to reflect the updated cost-of-service analysis and proportional costs of service attributable to different types of properties.

Proposed annual sewer charges consist of a per Sewage Unit rate that is calculated based on costs included in the revenue requirement and applied to various types of customers and properties based on their assigned Sewage Units. The annual charge for each parcel is determined by multiplying the rate per Sewage Unit ($118.34) by the number of Sewage Units assigned for each Land Use, as outlined in the Los Angeles County Code of Ordinances section 20.40.100. For example, a single-family property is assigned one (1) Sewage Unit per LA County guidelines and is charged the $118.34 rate to arrive at an annual charge of $118.34. A duplex property, which is assigned two (2) Sewage Units, will have a charge of $236.68 ($118.34 x 2). A commercial property assigned three (3) Sewage Units will have a charge of $355.02 ($118.34 x 3). The rate structure was designed so each system user will be charged an amount proportional to the cost of serving them.

New annual sewer rates
In order to provide necessary funding for the sewer system, the City is proposing to implement new annual sewer rates as a series of annual adjustments starting on July 1, 2025, and each July 1 thereafter until July 2029. The following table summarizes the proposed sewer rates. The rates will go into effect and remain in effect until superseded by Council action.

Proposed Annual Sewer Rates
July 1, 2025 – July 1, 2029

75 Monthly Impact of Proposed Sewer Rates
Based on the proposed annual rates shown in the previous table, effective July 1, 2025, the annual sewer charge placed on the yearly Los Angeles County Property Tax Bill for a single-family residential customer would increase from the current $33.12 per year to $118.34 per year. While the rates are submitted to the County to be included on annual property tax bills, it is important to note the monthly equivalent.

The Monthly impact of this change for a typical residential customer with one (1) sewage unit is shown below:
 Monthly amount with current annual charge: $2.76
 Monthly amount with proposed annual charge: $9.86
 Increase in Monthly amount with proposed change: $7.10

How do you file a protest or participate in the public hearing? The City will consider the new sewer rates at a Public Hearing on Wednesday, June 25, 2025, at 7:00 p.m. at the Bell Community Center, 6250 Pine Avenue, Bell, CA 90201. You are invited to present oral or written testimony at the Public Hearing. Any owner or customer of record of a parcel subject to the proposed rates may submit a written protest against the proposed rate revisions. If written protests are filed for a majority of the affected parcels, the proposed rate revisions will not be adopted.

In accordance with Government Code section 53759, there is a 120-day statute of limitations for challenging any new, increased, or extended fee or charge, commencing from the later of the effective date of the new rates or of the date of the final passage, adoption, or approval of the resolution adopting the new rates.

In order for a written protest to be counted, it must include the following: a statement indicating that the identified property owner or customer of record is opposed to the proposed sewer rate changes; the street address or Assessor's Parcel Number (APN) for the parcel(s) with respect to which the protest is made; and the name and signature of the owner or customer.

Written protests may be mailed, or hand delivered, to the City Clerk at 6330 Pine Avenue, Bell, CA 90201, prior to 4:00 p.m. on June 25, 2025, or hand delivered to the City Clerk at the Public Hearing on June 25, 2025. To be counted, a signed written protest must be received by the City Clerk before the conclusion of the Public Hearing. Protests submitted via e-mail or other electronic means will not be accepted. For any written protest, whether mailed or submitted in person to the City Clerk, please identify on the front of the envelope that the enclosed protest is for the Public Hearing on the Proposed Rate Changes – Sewer Rates.

The City Council will hear and consider written and oral protests of all interested persons to the proposed rate changes at the Public Hearing. Oral comments at the Public Hearing will not qualify as formal protests unless accompanied by a written protest. If you wish to legally challenge any action taken by the City on the above matter, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the City at, or prior to, the public hearing. Upon the conclusion of the Public Hearing, there will be no more written protests accepted and no more testimony taken, and the City Council will consider adoption of the proposed sewer rates described in this notice. If written protests, as outlined above, are not presented by a majority of property owners or customers of record, the City Council will be authorized to adopt the proposed rates. While both property owners and customers of record may submit written protests, only one protest will be counted for each parcel.

If adopted, the rates for sewer service will be in effect beginning July 1, 2025. 76 AGENDA ITEM 2

Page 1 ends

City of Bell
Agenda Report

DATE: June 25, 2025

TO: Mayor and Members of the City Council

FROM: Gina Skibar, Deputy Director of Human Resources and Risk Management

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

SUBJECT: Public Hearing: City Vacancies Report Pursuant to Assembly Bill 2561

RECOMMENDATION:

It is recommended that the City Council conduct a public hearing to receive the City Vacancies Report pursuant to Assembly Bill 2561 and allow for any presentations from the City’s represented bargaining units. This item is informational only; no Council action or resolution is required.

BACKGROUND:

Assembly Bill (AB) 2561 (Chapter 823, Statutes of 2024) requires public agencies to report on staffing vacancies, recruitment efforts, and retention strategies. The law also calls for the identification of any challenges or policy-related obstacles affecting recruitment.

If the vacancy rate in any recognized employee bargaining unit exceeds 20% of authorized positions, the agency must provide additional specified information upon request by the bargaining unit. AB 2561 further mandates that agencies allow bargaining units the opportunity to present their perspectives during the public hearing.

Recruitment and retention are core priorities for the City and align with our organizational Purpose and Principles. The City emphasizes maintaining a positive workplace culture, investing in professional development and training, and offering competitive compensation packages comparable to those of other local agencies.

The City currently has three (3) represented bargaining units:

• Bell Police Officers Association (BPOA): 30 Full-Time Equivalent (FTE) positions • Bell City Employees Association (BCEA): 51 FTE positions • Bell Executive Management Association (BEMA): 12 FTE positions

Additionally, the City employs approximately ninety ( 90) temporary or part-time staff. This report provides vacancy data as of June 25, 2025.

Vacancies

77 AGENDA ITEM 2

Page 2 ends

Vacancies arise throughout the year due to staff promotions, transfers, retirements, resignations, terminations, or the creation of new positions. When a vacancy occurs, the City’s Human Resources Officer collaborates with the affected department to initiate recruitment efforts aimed at maintaining service quality, operational efficiency, and minimizing overtime costs.

Current vacancies by bargaining group (as of June 25, 2025):

Employee Bargaining Group Total Number of Vacancies Vacancy Rate BPOA 2 6.67%
BCEA 2 3.92%
BEMA 1 8.33%

As none of the bargaining units currently exceed the 20% vacancy threshold, no additional reporting requirements under AB 2561 are triggered at this time.

Recruitment and Retention of Staff

The City uses a variety of strategies to attract and retain talent.

Recruitment efforts include:

• Posting openings on the City’s website and recruitment portal (NEOGOV) • Advertising positions on the City’s social media platforms • Proactive outreach for hard-to-fill positions

While the City’s compensation levels are currently lower than those of many surrounding agencies, the City continues to make efforts to remain competitive and to invest in a positive, supportive workplace culture. Staff development, training, and internal promotional opportunities remain a focus.

There is also a growing interest in adopting a more proactive approach to local recruitment, encouraging qualified candidates from within the Bell community to apply for open positions.

This approach can help strengthen community ties, improve retention, and foster a public workforce that reflects the diversity and values of the City.

Retention strategies include:

• Offering competitive compensation within available resources • Investing in employee training and development
• Promoting internal advancement opportunities
• Providing regular employee recognition and engagement • Cultivating a supportive, appreciative workplace culture

These efforts aim to ensure staff feel valued, supported, and empowered to build meaningful careers in public service.

FISCAL IMPACT:

There is no fiscal impact associated with this report

78 AGENDA ITEM 2

Page 3 ends

ALTERNATIVE ACTIONS:

No alternative actions are required as this item is informational and satisfies the reporting obligations of AB 2561. The City Council may provide additional direction or feedback at its discretion.

STRATEGIC PLAN 2023-25:

Target 2: Building Bridges Through Communication
Goal 2: Expand the use of social media

Target 3: Elevating Quality of Life
Goal 6: Develop Community Participation
Goal 7: Leverage partnership

FISCAL IMPACT:

NONE

ATTACHMENT(S):

NO ATTACHMENTS

79 UNDER SEPARATE COVER
AGENDA ITEM NO. 3

3. Adoption of the Recommended Budget for Fiscal Year 2025- 2026. (City Council)

Recommendation: It is recommended that the City Council read by title only, waive further reading and adopt Resolution No. 2025-27 titled:

A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF BELL ADOPTING THE CITY BUDGET
FOR THE FISCAL YEAR COMMENCING JULY 1,
2025, AND ENDING JUNE 30, 2026

80 AGENDA ITEM 4
City of Bell
Agenda Report

DATE: June 25, 2025

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: Adopting a L ist of Projects for Fiscal Year 2025-2026 for the use of funds from the Road Repair and Accountability Act of 2017 (SB-1)

RECOMMENDATION:

It is recommended that Council read by title only, waive further reading and adopt Resolution No. 2025-32 titled:

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BELL
ADOPTING A LIST OF PROJECTS FOR FISCAL YEAR 20 25-
2026 TOTALLY OR PARTIALLY FUNDED BY SB-1: THE ROAD
REPAIR AND ACCOUNTABILITY ACT OF 2017 (SB 1)

BACKGROUND:

On April 28, 2017, the Governor of California signed Senate Bill 1 (SB -1), the Road Repair and Accountability Act of 2017, also known as the Road Maintenance and Rehabilitation Account (RMRA). SB-1 provides additional state funding to address basic road maintenance, rehabilitation, and critical safety needs on highways and local streets, which is funded by a per gallon fuel tax and vehicle registration fees.

Each city and county is required to adopt by resolution a list of all projects proposed to receive funding from the RMRA. The resolution must include a description and location of each proposed project, a proposed schedule of completions and the estimated useful life of the improvement.

The resolution will also include how the City set its transportation priorities and the use of the limited SB-1 funding.

The City’s infrastructure decisions regarding the allocation of transportation funds, relies in part, on the City’s approved Pavement Management System (PMS) 2022 Update. This management tool facilitates the effectiveness of decisions for the maintenance, resurfacing, and reconstruction of the community’s roadways. The PMS database was established using a combination of pavement conditions survey and rating of every street to identify structural deterioration, surface deterioration/condition, ride quality, skid resistance, potholes, and related data.

81 AGENDA ITEM 4
DISCUSSION:

The SB-1 funding will help the City maintain and rehabilitate its roadways this year and assist with similar projects in the future. The outcome of this project is designed to improve the estimated useful life of these city streets from fifteen (15) to twenty (20) years.

New FY 2025/2026 Project

The Street Improvement Project FY 25/26 (Project) includes the following RMRA eligible streets:

Project Title: Street Improvement Project FY 2025/2026 (FY25/26 SB1 Funds: $924,465, Prior Year’s SB1 Funds: $115,409) for a Total Estimated Project Cost: $1,039,874

Project Description: The project will include cold milling the existing AC pavement; constructing an ARHM overlay; repairing damaged driveways, sidewalks, curb and gutter, and AC pavement; upgrading ADA curb ramps; adjusting utility manholes; and restoring the traffic striping.

Estimated Project Schedule: Start - July 1, 2025, with completion by June 30, 2026, based on the component being funded with RMRA funds.

Estimated Project Useful Life: The project will provide an estimated useful life for street improvements of fifteen (15) to twenty (20) years.

Project Location: See List Below
Street Name From To
1 Prospect Ave. Gage Ave. Bell Pl.
2 Bell Pl. King Ave. Mayflower Pl
3 Mayflower Ave. Bell Pl. Acacia St.
4 Acacia St. Prospect Ave. Mayflower Ave.
5 Nevada St. Prospect Ave. Mayflower Ave.
6 Bear Ave. Gage Ave. Bell Ave.
7 Woodward Ave. Gage Ave. Randolph St.

Pursuant to the PMS, these streets have a pavement condition index (“PCI”) of 47 (poor) to 60 (fair) on an index of 1 (very poor) to 100 (good).

The proposed Project budget is as follows:

Construction $724,410
Plans, Specifications and Estimate (@12.5%) $90,551
Construction Management/Labor Compliance/Inspection (@12.5%) $90,551 Project Management $25,000
Bid Advertising $700
Contingency (@ 15%) $108,662
TOTAL ESTIMATED COST $1,039,874

The Project is proposed to be funded from SB1 FY2026 revenues estimated in the amount of $924,465, based on May 2025 State Department of Finance projected revenues, and SB1 Fund Balance from prior years in the amount of $115,409. The scope of work will include cold milling the existing AC pavement; constructing an Asphalt Rubber Hot Mix (ARHM ) overlay; repairing 82 AGENDA ITEM 4
damaged driveways, sidewalks, curb and gutter, and AC pavement; upgrading ADA curb ramps; adjusting utility manholes; and restoring the traffic striping.

The Project plans and specifications preparations for bid will start in August 2025 and is anticipated to be ready for bid in December 2025. Construction is expected to start in March 2026 and be completed in July 2027.

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 council member’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 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; (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 override 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

83 AGENDA ITEM 4
(b) 15% of the real residential property is 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 to the General Fund.

If the City Council approves the SB1 List of Project, the Project will be included in the City’s Capital Improvement Program for Fiscal Year 2025/2026 for adoption.

STRATEGIC PLAN 2023-25

This agenda item aligns with the City of Bell 2023-25 Strategic Plan:

Target 3 - Elevating Quality of Life
Goal 5 - Maintain a clean City
Action Item: Assess existing in-house maintenance programs and contracts

ATTACHMENTS:

1. Resolution No. 2025-32

2. Council Member 500’ Radius Map and Project Map
84 Attachment 1

Page 1 ends

RESOLUTION NO. 2025-32

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BELL ADOPTING A LIST OF PROJECTS FOR FISCAL YEAR 20 25-2026 TOTALLY OR PARTIALLY FUNDED BY SB-1: THE ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017 (SB 1)

WHEREAS, Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017 (Chapter 5, Statutes of 2017) was passed by the Legislature and Signed into law by the Governor in April 2017 to address the significant multi-modal transportation funding shortfalls statewide; and

WHEREAS, SB 1 includes accountability and transparency provisions that will ensure the residents of our City are aware of the projects proposed for funding in our community and which projects have been completed each fiscal year; and

WHEREAS, the City must adopt by resolution a list of projects proposed to receive fiscal year funding from the Road Maintenance and Rehabilitation Account (RMRA), created by SB 1, which must include a description and the location of each proposed project, a proposed schedule for the project’s completion, and the estimated useful life of the improvement; and

WHEREAS, the City is estimated to receive approximately $924,465 in RMRA funding in FY 2025-2026; and

WHEREAS, this is the ninth year in which the City is receiving SB 1 funding and will enable the City to continue essential road maintenance and rehabilitation projects, safety improvements, repairing and replacing aging bridges, and increasing access and mobility options for the traveling public that would not have otherwise been possible without SB 1; and

WHEREAS, the City used a Pavement Management System to develop the SB 1 project list to ensure revenues are being used on the most high-priority and cost-effective projects that also meet the communities priorities for transportation investment; and

WHEREAS, the funding from SB 1 will help the City maintain and rehabilitate its streets, and add active transportation infrastructure throughout the City this year and into the future; and

WHEREAS, the 2023 California Statewide Local Streets and Roads Needs Assessment found that the City streets and roads are in “good” condition and this revenue will help us increase the overall quality of our road system and over the next decade will bring our streets and roads into a “very good” condition; and

WHEREAS, the SB 1 project list and overall investment in our local streets and roads infrastructure with a focus on basic maintenance and safety, investing in complete streets infrastructure, and using cutting-edge technology, materials and practices, will have significant positive co-benefits statewide.

NOW, THEREFORE, THE CITY COUNCIL DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:

SECTION 1. The foregoing recitals are true and correct. 85 Attachment 1

Page 2 ends

SECTION 2. The following project will be funded in-part or solely with Fiscal Year 2025/2026 Road Maintenance and Rehabilitation Account revenues.

Project Title: Street Improvement Project FY 2025/2026 (FY25/26 SB1 Funds: $924,465, Prior Year’s SB1 Funds:$115,409) (Total Estimated Project Cost: $1,039,874) Project Description: The project will include cold milling the existing AC pavement; constructing an ARHM overlay; repairing damaged driveways, sidewalks, curb and gutter, and AC pavement; upgrading ADA curb ramps; adjusting utility manholes; and restoring the traffic striping.

Estimated Project Schedule: Start - July 1, 2025 to Completion -June 30, 2026 based on the component being funded with RMRA funds.

Estimated Project Useful Life: The project will provide an estimated useful life for street improvements of fifteen (15) to twenty (20) years.

SECTION 3. The Public Works Director or his designee is hereby authorized to undertake such acts as necessary to carry out this Resolution.

SECTION 4. The City Clerk shall attest to the passage of the Resolution and it shall thereupon be in full force and effect.

PASSED, ADOPTED AND APPROVED this 25
th day of June 2025.

__________________________________
Ali Saleh, Mayor

APPROVED AS TO FORM

_________________________
Dave Aleshire, City Attorney

86 Attachment 1

Page 3 ends

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 25
th day of June 2025, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

_________________________________
Angela Bustamante, City Clerk

87 S Maywood Ave
Legend
500' Radius
City Council Member
Property
City Boundary
Brompton
at and Sf RlwyUnion Pacific RR
ATTACHMENT 2
88 AGENDA ITEM 5
City of Bell
Agenda Report

DATE: June 25, 2025

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: Street Improvement Project Fiscal Year 2024-2025 – Award of Contract

RECOMMENDATION:

It is recommended that the City Council:

1. Award a construction contract in the amount of $ 970,144.10 to Sequel Contractors, Inc. for the Street Improvement Project Fiscal Year 2024-2025; and

2. Authorize the City Manager to execute contract change orders in a total amount not to exceed $97,014.41 (ten percent of the bid amount) for any necessary additional work.

BACKGROUND:

In April 2017, the Governor of California signed Senate Bill 1 (SB -1), the Road Repair and Accountability Act of 2017, also known as the Road Maintenance and Rehabilitation Account (RMRA). SB-1 provides additional state funding to address basic road maintenance, rehabilitation, and critical safety needs on highways and local streets. The RMRA is funded by a per gallon fuel tax and vehicle registration fees. For Fiscal Year 2023-2024 (FY2023-24), the City was projected to receive $817,464 in SB1 Funds. SB-1 requires that the City Council adopt a list of projects for the use of the fund by July 1
st of each funded year.

On May 8, 2024; the City Council adopted a list of SB-1 projects for FY2023-24 to be completely or partially funded by SB-1. The following are the street segments included in that project list:

Street Name From To
1 Brompton Avenue Atlantic Avenue Woodward Avenue
2 Brompton Avenue King Avenue Mayflower Place
3 Nelson Drive Vinevale Avenue Heliotrope Avenue
4 Casitas Avenue Randolph Street Filmore Street
5 Filmore Avenue Home Avenue Casitas Avenue
6 Clarkson Avenue Randolph Street Gage Avenue
7 Otis Avenue Florence Avenue 200’ S/o Walnut Street
8 Flora Avenue Live Oak Street 175’ N/o Live Oak St
9 Orchard Street Bell Avenue 275’ N/o Bell Avenue
10 Bell Avenue Bissell Avenue Salt Lake Avenue

89 AGENDA ITEM 5
The following street segments were added to the street improvement design:

Street Name From To
11 River Drive Gave Avenue, Frontage
Road
220’ North
12 Vinevale Avenue @ Weik Avenue

To incorporate stormwater capture components into the project, the following locations were added for the installation of biofilter system.

Street Name Intersection
1 Gage Avenue Clarkson Avenue
2 Gage Avenue Wilcox Avenue

The Project consists of pavement cold mill, applying ARAM, and ARHM pavement overlay . It includes replacing damaged sidewalk, curb and gutter, driveway approaches, pavement section, adjusting manhole frames and valves to grade, adjusting water valve and water meter box es to grade, installing detectable warning surface, speed humps , tree wells, irrigation lines, pavement striping and markings, and other incidental and appurtenant work necessary for the proper completion of the Project. For the stormwater capture component, the Project also includes installation of two Ecostream Biofilter systems to capture trash, sediment, and heavy metals from stormwater runoff.

DISCUSSION:

The City issued a construction bid notice on April 14, 2025. The bid opening was held on May 14, 2025. Seven (7) bids were received with a bid range of $970,144.10 to $1,260,000. The list of bidders and bid amounts are as follows:

Contractor Bid Amount
1 Sequel Contractors, Inc. $970,144.10
2 Onyx Paving Company, Inc. $1,023,000.00
3 PALP DBA Excel Paving $1,039,950.97
4 LCR Earthwork $1,130,103.35
5 Dash Construction Company, Inc. $1,156,475.40
6 All American Asphalt $1,208,802.10
7 Hardy & Harper, Inc. $1,260,000.00

The apparent low bidder is Sequel Contractors, Inc. (Sequel) of Santa Fe Springs, California. The low bid was approximately 10% lower than the Engineer’s Estimate of $1,078,514. All required forms, licenses, registrations, bonds and insurance certificates have been submitted by Sequel and verified. Additionally, Sequel has successfully completed several comparable projects in Southern California. Staff recommend that the City Council award a construction contract to Sequel.

As a courtesy, staff reached out to the City of Cudahy to find out if they would like to participate in the subject street improvement project since a portion Otis Avenue at 200’ south of Walnut Street belongs to the City of Cudahy. We are awaiting City of Cudahy’s response. 90 AGENDA ITEM 5
Conflict of Interest

(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 override all of the above:

(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 is no impact to the General Fund. This project is included in the proposed FY2025-2026 Capital Improvement Program and the Design was completed during FY2024-2025. Staff propose 91 AGENDA ITEM 5
to use SB1 Fund, Measure M Fund, and Measure W Fund. Measure W Fund will fund the stormwater component of the Project.

There will be no impact on the General Fund.

STRATEGIC PLAN 2023-25:

This agenda item aligns with the City of Bell 2023-25 Strategic Plan

Target 3 - Elevating Quality of Life
Goal 5 - Maintain a clean City
Action Item- Assess existing in-house maintenance programs and contracts

ATTACHMENT:

1) Sequel Contractors, Inc. Contract
2) Council Member 500’ Radius and Project Map

92 BID PW25-001
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AGREEMENT

FOR PUBLIC WORKS SERVICES BETWEEN
THE CITY OF BELL AND SEQUEL CONTRACTORS, INC.

THIS AGREEMENT FOR PUBLIC WORKS SERVICES (herein “Agreement”) is made and entered into this 25th day of June, 2025, by and between the City of Bell, a California charter city ("City") and Sequel Contractors, Inc., a California corporation ("Contractor").

City and Contractor are 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 services 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 inco rporated herein by this reference, which may be referred to herein as the “services” or “work” h ereunder. 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 93 BID PW25-001
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01135.0006 2012758.2
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 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 p roject entitled STREET IMPROVEMENTS ON VARIOUS STREETS FY 202 4- 2025, 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 t erms of this Agreement shall govern.

1.3 Compliance with Law.

Contractor shall keep itself informed concerning, and shall render all services hereunder 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 re gulations established by t he 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 r ates 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 94 BID PW25-001
SPC25-07 CA-3
01135.0006 2012758.2
($200) for each calendar day, or portion thereof, for each worker paid less than the prevailing rates as determined by the DIR for the work or craft in which the worker is employed for any public work done pursuant to this Agreement by Contractor or by any subcontractor. (d) Payroll Records. Contractor shall comply with and be bound by the provisions 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 available for inspection as provided by Section 1776; and inform the City of the location of the records. (e) Apprentices. Contr actor 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 wo rker 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.” 95 BID PW25-001
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Contractor’s Authorized Initials
Contractor’s Responsibility for Subcontractors. For every subcontractor who will perform work under this Agreement, Contractor shall be responsible for such sub contractor’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 subcontractor for work under this Agreement. Contractor shall be required to take all actions n ecessary to enforce such contractual provisions and ensure subcontractor’s compliance, including without limitation, conducting a review of the certified payroll records of the subcontractor on a p eriodic 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 l icenses, 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 this Agreement, and shall indemnify, defend and hold harmless City, its officers, employees or agents of City, against any such f ees, as sessments, taxes, pe nalties or interest levied, assessed or imposed against City hereunder.

1.6 Familiarity with Work.
(a) By executing this Agreement, Contractor warrants that Contractor (i) has thoroughly investigated 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 follow ing 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 d ifferent 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. 96 BID PW25-001
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01135.0006 2012758.2
(d) In the event that a dispute arises between City and Contractor whether the conditions materially dif fer, 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.
(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 storage facilities, during the life of the Agreement to furnish continuous protection to the work, and the equipment, materials, papers, d ocuments, 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 n egligence. 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.
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 work 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 removal, replacement, and reinstitution of equipment and materials necessary to gain access, shall be the sole responsibility of the Contractor. 97 BID PW25-001
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All warranties and guarantees of subc ontractors, 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 ot her warranty or guaranty under this Ag reement, 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.

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 services, 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 increa se in com pensation of up to ten perc ent (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 work shall not exceed an amount agreed upon in writing and signed by Contractor and Contract Officer. If the cost of the Change Order cannot be agreed upon, the City will pay for actual work of the Change Order completed, to the satisfaction of the City, as follows:
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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 such 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 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.

1.10 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 inco rporated herein by this reference. The total compensation, including reimbursement for actual expenses, shall not exceed Nine Hundred Seventy Thousand One Hundred Forty Four Dollars and Ten Cents ($970,144.10) (the “Contract Sum”), unless additional compensation is approved pursuant to Section 1.10. 99 BID PW25-001
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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 p rovided 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.

2.4 Invoices.

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 Contractor 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 thirty (30) days of receipt of Contractor’s correct and undisputed invoice; however, Contr actor 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 does 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 Contract 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 100

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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 w ritten 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.

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 unforeseeable 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 101

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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 t erminated in accordance with Article 7 of th is Agreement, this Agreement shall continue in full force and effect until completion of the services but not exceeding one (1) year from the date hereof, except as otherwise provided in the Schedule of Performance (Exhibit “D”).

ARTICLE 4. 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:

Thomas S. Pack President

(Name) (Title)

Michael A. Mahler Secretary
(Name) (Title)

Corey Pack Project Manager
(Name) (Title)
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 written approval of City. Additionally, Contractor shall make every reasonable effort to maintain the stability 102

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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 otherwise, 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 John Oskoui, Interim Director of Public Works, or such person as may be designated by the City Manager. It shall be the Contractor’s responsibility to assure that the Contract 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 othe rwise 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 of Contractor in its business or otherwise or a joint venturer or a member of any joint enterprise with Contractor.

4.5 Prohibition Against Subcontracting or Assignment.

The experience, knowledge, capability and reputation of Contractor, its principals and employees were a substantial inducement for the City to enter into this Agreement. 103

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Therefore, Contractor shall not contract with any other entity to perform in whole or in part the services required hereunder without the express written approval of the City. All subcontractors shall obtain, at its or Contractor’s expense, such licenses, permits, registrations and approvals (including from the Ci ty) as may be required by law for the performance of any services or work under this Agreement. In addition, neither this Agreement nor any interest herein may be transferred, assigned, conveyed, hypothecated, or encumbered voluntarily or by operation of law, whether for the benefit of creditors or otherwise, without the prior written approval of City. Transfers restricted hereunder shall include the transfer to any person or group of persons acting in concert of more than twenty five percent (25%) of the present ownership and/or control of Contractor, taking all transfers into account on a cumulative basis. In the event of any s uch unapproved transfer, including any bankruptcy proceeding, this Agreement shall be void. No approved transfer shall release the Contractor or any surety of Contractor of any liability hereunder without the express consent of City.

ARTICLE 5. INSURANCE, INDEMNIFICATION AND BONDS

5.1 Insurance Coverages.

The Contractor shall procure and maintain, at its sole cost and expense, in a form and content satisfactory to City, during the entire term of this Agreement including any extension thereof, the following policies of insurance which shall cover all elected and appointed officers, employees and agents of City:
(a) Commercial General Liability Insurance (Occurrence Form CG0001 or equivalent). Commercial General Liability Insurance (Occurrence Form CG0001 or equivalent). A policy of comprehensive general liability insurance written on a per occurrence basis for bodily injury, personal injury and property damage. The policy of insurance shall be in an amount not less than $5,000,000 per occurrence or if a general aggregate limit is used, then the general aggregate limit shall be twice the occurrence limit. (b) Workers Compensation Insurance. A policy of workers compensation insurance in such amount as will fully comply with the laws of the State of California, with Statutory Limits, and Employer’s Liability insurance with a limit of no less than $1,000,000 per accident for bodily injury or disease, and wh ich shall indemnify, insure and provide legal defense for the Contractor against any loss, claim or damage arising from any injuries or occupational diseases occurring to any worker employed by or any persons retained by the Contractor in the course of car rying out the work or services contemplated in this Agreement.
(c) Automotive Insurance (Form CA 0001 (Ed 1/87) including “any auto” and endorsement CA 0025 or equivalent). A policy of comprehensive automobile liability insurance written on a per occurrence for bodily injury and property damage in an amount not less than $5,000,000. Said policy shall include coverage for owned, non -owned, leased, hired cars and any automobile.
(d) Pro fe ss ion al Liabil ity. Professional liability insurance 104

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appropriate to the Contractor’s profession. This coverage may be written on a “claims made” basis and must include coverage for contractual liability. The professional liability insurance required by this Agreement must be endorsed to be applicable to claims based upon, arising out of or related to services performed under this Agreement. The insurance must be maintained for at least 5 consecutive years following the completion of Contractor’s services or the termination of this Agreement. During this ad ditional 5-year period, Contractor shall annually and upon request of the City submit written evidence of this continuous coverage. If Design/Build, Professional liability insurance shall be in an amount no less than $2,000,000 per occurrence or claim, and $2,000,000 policy aggregate.
(e) Additional Insurance. Policies of such other insurance, as may be required in the Special Requirements in Exhibit “B”.
(f) Contractor’s Pollution Legal Liability and/or Errors and Omissions. If project involves environmental hazards, a policy shall be with limits no less than $1,000,000 per occurrence or claim, and $2,000,000 policy aggregate. (g) Builder’s Risk. Builder’s Risk (Course of Construction) Insurance utilizing an “All Risk” (Special Perils) coverage form, with limits equal to the completed value of the project and no coinsurance penalty provisions. (h) Sub cont rac to rs. Contractor shall include all subcontractors as insureds under its policies or shall furnish separate certificates and certified endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of the requirements stated herein.

5.2 General Insurance Requirements.

All of the above policies of insurance shall be primary insurance and shall name the City, its elected and appointed officers, employees and agents as additional insureds and any insurance maintained by City or its officers, employees or agents may apply in excess of, and not contribute with Contractor’s insurance. The insurer is deemed hereof to waive all rights of subrog ation and contribution it may have against the City, its officers, employees and agents and their respective insurers. Moreover, the insurance policy must specify that where the primary insured does not satisfy the self-insured retention, any additional insured may satisfy the self-insured retention.

All of said policies of insurance shall provide that said insurance may not be amended or cancelled by the insurer or any party hereto without providing thirty (30) days prior written notice by certified mail return receipt requested to the City. In the event any of said policies of insurance are cancelled, the Contractor shall, prior to the cancellation date, submit new evidence of insurance in conformance with Section 5.1 to the Contract Officer.

No work or services under this Agreement shall commence until the Contractor has provided the City with Certificates of Insurance, additional insured endorsement forms or appropriate insur ance binders evidencing the above insurance coverages and said 105

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Certificates of Insurance or binde rs are approved by the City. City reserves the right to inspect complete, certified copies of and endorsements to all required insurance policies at any time. Any failure to comply with the reporting or other provisions of the policies including breaches or warranties shall not affect coverage provided to City.

All certificates shall name the City as additional insured (providing the appropriate endorsement) and shall conform to the following “cancellation” notice:

CANCELLATION:

SHOULD A NY OF THE ABO VE DES CRIBED POLICIES BE

CANCELLED BEFORE THE EXPIRATION DATED THEREOF, THE
ISSUING COMPANY SHALL M AIL THIRTY (30)-DAY A DVANCE
WRITTEN NOTICE TO CERTIFICATE HOLDER NAMED HEREIN.
[to be initialed]
Agent’s Initials
City, its respective elected and appointed officers, directors, officials, employees, agents and volunteers are to be covered as additional insureds as respects: liability arising out of activities Contractor performs; products and completed operations of Contractor; premises owned, occupied or used by Contractor; or any automobiles owned, leased, hired or borrowed by Contractor. The coverage shall contain no special limitations on the scope of protection afforded to City, and their respective elected and appointed officers, officials, employees or volunteers. Contractor’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability.

Any deductibles or self-insured retentions must be declared to and approved by City.

At the option of City, either the insurer shall reduce or eliminate such deductibles or self- insured retentions as respects City or its respective elected or appointed officers, officials, employees and volunteers or the Contractor shall procure a bond guaranteeing payment of losses and related investigations, claim administration, defense expenses and claims.

The Contractor agrees that the requirement to provide insurance shall not be construed as limiting in any way the extent to which the Contractor may be held responsible for the payment of damages to any persons or property resulting from the Contractor’s activities or the activities of any person or persons for which the Contractor is otherwise responsible nor shall it limit the Contractor’s indemnification liabilities as provided in Section 5.3.

In the event the Contractor subcontracts any portion of the work in compliance with Section 4.5 of th is Agreement, the contract between the Contr actor and such subcontractor shall require the subcontractor to maintain the same policies of insurance that the Contractor is required to maintain pursuant to Section 5.1, and such certificates and endorsements shall be provided to City.
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5.3 Indemnification.

To the full extent permitted by law, Contractor agrees to indemnify, defend and hold harmless the City, its officers, employees and agents (“Indemnified Parties”) against, and will hold and save them and each of them harmless from, any and all actions, either judicial, administrative, arbitration or regulatory claims, damages to persons or property, losses, costs, penalties, obligations, errors, omissions or liabilities whether actual or threatened (herein “claims or liabilities”) that may be asserted or claimed by any person, firm or entity arising out of or in connection with the negligent performance of the work, operations or activities p rovided herein of Contractor, i ts officers, employees, agents, subcontractors, or invitees, or any individual or entity for which Contractor is legally liable (“indemnitors”), or arising from Contractor’s or indemnitors’ reckless or willful misconduct, or arising from Contractor’s or indemnitors’ negligent performance of or failure to perform any term, provision, covenant or condition of this Agreement, and in connection therewith:
(a) Contractor will defend any action or actions filed in connection with any of said claims or liabilities and will pay all costs and expenses, including legal costs and attorneys’ fees incurred in connection therewith;
(b) Contractor will promptly pay any judgment rendered against the City, its officers, agents or employees for any such claims or liabilities arising out of or in connection with the negligent performance of or failure to perform such work, operations or activities of Contractor hereunder; and Contractor agrees to save and hold the City, its officers, agents, and employees harmless therefrom;
(c) In the event the City, its officers, agents or employees is made a party to any action or proceeding filed or prosecuted against Contractor for such damages or other claims arising out of or in connection with the negligent performance of or failure to perform the work, operation or activities of Contractor hereunder, Contractor agrees to pay to the City, its officers, agents or employees, any and all costs and expenses incurred by the City, its officers, agents or employees in such action or proceeding, including but not limited to, legal costs and attorneys’ fees.

In addition, Contr actor agrees to indemni fy, d efend and hold h armless the Indemnified Parties from, any and all claims and liabilities for any infringement of patent rights, copyrights or trademark on any person or persons in consequence of the use by the Indemnified Parties of articles to be supplied by Contractor under this Agreement, and of which the Contractor is not the patentee or assignee or has not the lawful right to sell the same.

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acts or omissions, but, to the fullest extent permitted by law, shall apply to claims and liabilities resulting in part from City’s negligence, except that design p rofessionals’ indemnity hereunder shall be limited to claims and liabilities arising out of the negligence, recklessness or willful misconduct of the design professional. The indemnity obligation shall be binding on successors and assigns of Contractor and shall survive termination of this Agreement.

5.4 Notification of Third-Party Claims.

City shall timely notify Contractor of the receipt of any third-party claim relating to the work under this Agreement. City shall be entitled to recover from Contractor its reasonable costs incurred in providing such notification.

5.5 Performance and Labor Bonds.

Concurrently with execution of this Agreement Contractor shall deliver to the City, the following:
(a) A performance bond in the amount of the Contr act Sum of th is Agreement, in the form provided by the City Clerk, which secures the faithful performance of this Agreement.
(b) A labor and materials bond in the amount of the Contract Sum of this Agreement, in the form provided by the City C lerk, which secures the payment of all persons fu rnishing labor and/or materials in connection with the work und er this Agreement.

Both the performance and labors bonds required under this Section 5.5 shall contain the original notarized signature of an authorized officer of the surety and affixed thereto shall be a certified and current copy of his power of attorney. The bond shall be unconditional and remain in force during the entire term of the Agreement and shall be null and void only if the Contractor promptly and faithfully performs all terms and conditions of this Agreement and pays all labor and mat erials for work and s ervices und er this Agreement.

5.6 Sufficiency of Insurer or Surety.

Insurance and bonds required by this Agreement shall be satisfactory only if issued by companies qualified to do business in California, rated “A” or better in the most recent edition of Best’s Rating Guide, The Key Rating Guide or in the Federal Register, and only if they are of a financial category Class VII or better, unless such requirements are waived by the Risk Manager of the City (“Risk Manager”) due to unique circumstances. If this Agreement continues for more than 3 years duration, or in the event the Risk Manager determines that the work or services to be performed under this Agreement creates an increased or decreased risk of loss to the City, the Contractor agrees that the minimum limits of the insurance policies and the performance bond required by Section 5.5 may be changed accordingly upon receipt of written notice from the Risk Manager. 108

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5.7 Substitution of Securities.

Pursuant to Public Contract Code Section 22300, substitution of eligible equivalent securities for any funds withheld to ensure performance under this Agreement may be permitted at the request and sole expense of the Contractor. Alternatively, the Contractor may, pursuant to an escrow agreement in a form prescribed by Public Contract Code Section 22300, request payment of retentions funds earned directly to the escrow agent at the sole expense of the Contractor.

5.8 Release of Securities.

City shall release the Pe rformance and Labor Bonds wh en the following have occurred:
(a) Contractor has made a written request for release and provided evidence of satisfaction of all other requirements under Article 5 of this Agreement. (b) the Work has been accepted; and
(c) after passage of the time within which lien claims are required to be made pursuant to applicable laws; if lien claims have been timely filed, City shall hold the Labor Bond until such claims have been resolved, Contractor has provided statutory bond, or otherwise as required by applicable law.

ARTICLE 6. RECORDS, REPORTS, AND RELEASE OF INFORMATION

6.1 Records.

Contractor shall keep, and require subcontractors to keep, such ledgers, books of accounts, invoices, vouchers, canceled checks, reports, studies, certified and accurate copies of p ayroll records in compliance with all applicable laws, or other documents relating to the disburs ements charged to City and services performed hereunder (the “books and records”), as shall be necessary to perform the services required by this Agreement and enable the Contract Officer to evaluate the performance of such services.

Any and all such documents shall be maintained in accordance with generally accepted accounting principles and shall be complete and detailed. The Contract Officer shall have full and free access to such books and records at all times during normal business hours of City, including the right to inspect, copy, audit and make records and transcripts from such records. Such records shall be maintained for a period of 3 years following completion of the services hereunder, and the City shall have access to such records in the event any audit is required. In the event of dissolution of Contractor’s business, custody of the books and records may be given to City, and access shall be provided by Contractor’s successor in interest. Notwithstanding the above, the Contractor shall fully cooperate with the City in providing access to the books and r ecords if a public records request is made and disclosure is required by law including but not limited to the California Public Records Act. 109

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6.2 Reports.

Contractor shall periodically prepare and submit to the Contract Officer such reports concerning the performance of the services required by this Agreement as the Contract Officer shall require. Contractor hereby acknowledges that the City is greatly concerned about the cost of work and services to be performed pursuant to this Agreement. For this reason, Contractor agrees that if Contractor becomes aware of any facts, circumstances, techniques, or events that may or will materially increase or decrease the cost of the work or services contemplated herein or, if Contractor is providing design services, the cost of the project being designed, Contractor shall promptly notify the Contr act Officer of s aid fact, circumstance, technique or event and the estimated increased or decreased cost related thereto and, if Contractor is providing design services, the estimated increased or decreased cost estimate for the project being designed.

6.3 Ownership of Documents.

Contractor s hall h ave an unrestricted right to use the concepts embodied therein. All subcontractors shall provide for assignment to City of any documents or materials prepared by them, and in the event Contractor fails to secure such assignment, Contractor shall indemnify City for all damages resulting therefrom. Moreover, Contractor with respect to any documents and materials that may qualify as “works made for hire” as defined in 17 U.S.C. § 101, s uch documents and materials are hereby deemed “works made for hire” for the City.

6.4 Confidentiality and Release of Information.
(a) Information gained or work product produced by Cont ractor in performance of this Agreement shall be considered confidential, unless such information is in the public domain or already known to Contractor. Contractor shall not release or disclose any such information or work product to persons or entities other than City without prior written authorization from the Contract Officer.
(b) Contractor, its officers, employees, agents or subcontractors, shall not, without prior written authorization from the Contract Officer or unless requested by the City Attorney, voluntarily provide documents, declarations, letters of support, testimony at 110

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depositions, r esponse to interrogatories or other information concerning the work performed under this Agreement. Response to a subpoena or court order shall not be considered "voluntary" provided Contr actor gives C ity notice of su ch court o rder or subpoena.
(c) If Contractor, or any officer, employee, agent or subcontractor of Contractor, provides any information or work product in violation of this Agreement, then City shall have the right to reimbursement and indemnity from Contractor for any damages, costs and fees, including attorneys’ fees, caused by or incurred as a result of Contractor’s conduct.
(d) Contractor shall promptly notify City should Contractor, its officers, employees, agents or subcontractors be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admissions or other discovery request, court order or subpoena from any party regarding this Agreement and the work performed there under. City retains the right, but has no obligation, to represent Contractor or be present at any deposition, hearing or similar proceeding. Contractor agrees to cooperate fully with City and to provide City with the opportunity to review any response to discovery requests provided by Contractor. However, this right to review any such response does not imply or mean the right by City to control, direct, or rewrite said response.

ARTICLE 7. ENFORCEMENT OF AGREEMENT AND TERMINATION

7.1 California Law.

This Agreement shall be interpreted, construed and governed both as to validity and to performance of the parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of Los Angeles, State of California, or any other appropriate court in such county, and Contractor covenants and agrees to submit to the personal jurisdiction of such court in the event of such action. In the event of l itigation in a U.S. District Court, venue shall lie exclusively in the Central District of California, in the County of Los Angeles, State of California.

7.2 Disputes.
(a) Default; Cure. In the event that Contractor is in default under the terms of this Agreement, the City shall not have any obligation or duty to continue compensating Contractor for any work performed after the date of default. Instead, the City may give notice to Contractor of the default and the reasons for the default. The notice shall include the timeframe in which Contractor may cure the default. This timeframe is presumptively thirty (30) days, but may be extended, though not reduced, if circumstances warrant. During the period of time that Contractor is in default, the City shall hold all invoices and shall proceed with payment on the invoices only when the default is cured.

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the City may take necessary steps to terminate this Agreement under this Article. Any failure on the part of the City to give notice of the Contractor’s default shall not be deemed to result in a waiver of the City’s legal rights or any rights arising out of any provision of this Agreement.
(b) Dispute Resolution. This contract is subject to the provisions of Article 1.5 (commencing at Section 20104) of Division 2, Part 3 of the California Public Contract Code regarding the resolution of public works claims of less than $375,000.

Article 1.5 mandates certain procedures for the filing of claims and supporting documentation by the Contractor, for the r esponse to such claims by the City, for a mandatory meet and confer conference upon the request of the Contractor, for mandatory non-binding mediation in the event litigation is commenced, and for mand atory judicial arbitration upon the failure to resolve the dispute through mediation. This Agreement hereby incorporates the provisions of Article 1.5 as though fully set forth herein.

7.3 Retention of Funds.

Contractor hereby authorizes City to deduct from any amount payable to Contractor (whether or not arising out of this Agreement) (i) any amounts the payment of which may be in dispute hereunder or which are necessary to compensate City for any losses, costs, liabilities, or damages suffered by City, and (ii) all amounts for which City may be liable to third parties, by r eason of Contractor’s acts or omissions in performing or failing to perform Contractor’s obligation under this Agreement. In the event that any claim is made by a third party, the amount or validity of whi ch is disputed by Contractor, or any indebtedness shall exist which shall appear to be the basis for a claim of lien, City may withhold from any payment due, without liability for interest because of such withholding, an amount sufficient to cover such claim. The failure of City to exercise such right to deduct or to withhold shall not, however, affect the obligations of the Contractor to insure, indemnify, and protect City as elsewhere provided herein.

7.4 Waiver.

Waiver by any party to this Agreement of any term, condition, or covenant of this Agreement shall not constitute a waiver of any other term, condition, or covenant. Waiver by any party of any breach of the provisions of this Agreement shall not constitute a waiver of any other provision or a waiver of any subsequent breach or violation of any provision of this Agreement. A cceptance by City of any work or services by Contractor shall not constitute a waiver of any of the provisions of this Agreement. No delay or omission in the exercise of any right or remedy by a non- defaulting party on any default shall impair such right or remedy or be construed as a waiver. Any waiver by either party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement.

7.5 Rights and Remedies are Cumulative.

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party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party.

7.6 Legal Action.

Notwithstanding any contrary p rovision herein, Contractor shall file a claim pursuant to Government Code Sections 905 et seq. and 910 et seq., in ord er to pursue a legal action under this Agreement.

7.7 Liquidated Damages.

Since the determination of actual damages for any delay in performance of this Agreement would be extremely difficult or impractical to determine in the event of a breach of this Agreement, the Contractor and its sureties shall be liable for and shall pay to the City the sum of One Thousand Three Hundred Dollars and Zero Cents ($1,300.00) as liquidated damages for each calendar day of delay in the performance of any s ervice required hereunder, as specified in the Schedule of Performance (Exhibit “D”), and per section 6-9 of the Special Provisions. The City may withhold from any monies payable on account of services p erformed by the Contractor any accrued liquidated damages.

Pursuant to Government Code Section 4215, Contractor shall not be assessed liquidated damages for delay in completion of the project when such delay was caused by the failure of the public agency or owner of the utility to p rovide for removal or relocation of utility facilities.

7.8 Termination Prior to Expiration of Term.

This Section shall govern any termination of this Contract except as specifically provided in the following Section for termination for cause. The City reserves the right to terminate th is Contract at any time, with or without cause, upon thirty (30) days’ written notice to Contractor, except that where termination is due to the fault of the Contractor, the period of notice may be such shorter time as may be determined by the Contract Officer. In addition, the Contractor reserves the right to terminate this Contract at any time, with or without cause, upon sixty (60) days’ written notice to City, except that where termination is due to the fault of the City, the period of notice may be such shorter time as the Contractor may determine. Upon receipt of any notice of termination, Contractor shall immediately cease all services hereunder except such as may be specifically approved by the Contract Officer. Except where the Contractor has initiated termination, the Contractor shall be entitled to compensation for all services rendered prior to the effective date of the notice of termination and for any services authorized by the Contract Officer thereafter in accordance with the Schedule of Compensation or such as may be approved by the Contract Officer, except as provided in Section 7.3. In the event the Contractor h as initiated 113

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termination, the Contractor shall be entitled to compensation only for the reasonable value of the work product actually produced hereunder. In the event of termination without cause pursuant to this Section, the terminating party need not provide the non-terminating party with the opportunity to cure pursuant to Section 7.2.

7.9 Termination for Default of Contractor.

If termination is due to the failure of the Contractor to fulfill its obligations under this Agreement, City may, after compliance with the provisions of Section 7.2, take over the work and prosecute the same to completion by contract or otherwise, and the Contractor shall be liable to the extent that the total cost for completion of the services required hereunder exceeds the compensation h erein stipulated (provided that the City shall use reasonable efforts to mitigate such damages), and City may withhold any payments to the Contractor for the purpose of set-off or partial payment of the amounts owed the City as previously stated.

7.10 Attorneys’ Fees.

If either party to this Agreement is required to initiate or defend or made a party to any action or proceeding in any way connected with this Agreement, the prevailing party in such action or proceeding, in addition to any other relief which may be granted, whether legal or equitable, shall be entitled to reasonable attorney’s fees. Attorney’s fees shall include attorney’s fees on any appeal, and in addition a party entitled to attorney’s fees shall be entitled to all other r easonable costs for investigating such action, taking depositions and discovery and all other necessary costs the court allows which are incurred in such litigation. All such fees shall be deemed to have accrued on commencement of such action and shall be enforceable whether or not such action is prosecuted to judgment.

7.11 Unfair Business Practices Claims.

In entering into this Agreement, Contractor offers and agrees to assign to the City all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. § 15) or under the Cartwright Act (Chapter 2, (commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code), arising from purchases of goods, services or materials related to this Agreement. This assignment shall be made and become effective at the time the City renders final payment to the Contractor without further acknowledgment of the Parties.

ARTICLE 8. OFFICERS AND EMPLOYEES: NON-DISCRIMINATION

8.1 Non-liability of City Officers and Employees.

No officer or employee of the City shall be personally liable to the Contractor, or any successor in interest, in the event of any default or breach by the City or for any amount which may become due to the Contractor or to its successor, or for breach of any obligation of the terms of this Agreement.
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8.2 Conflict of Interest.

Contractor covenants that neither it, nor any officer or principal of its firm, has or shall acquire any interest, directly or indirectly, which would conflict in any manner with the interests of City or which would in any way hinder Contractor’s performance of services under this Ag reement. Contractor further covenants that in the performance of this Agreement, no person having any such interest shall be employed by it as an officer, employee, agent or subcontractor without the express written consent of the Contract Officer. Contractor agrees to at all times avoid conflicts of interest or the appearance of any conflicts of interest with the interests of City in the performance of this Agreement.

No officer or employee of the City shall have any financial interest, direct or indirect, in this Agreement nor shall any such officer or employee participate in any decision relating to the Ag reement which effects his financial interest or the financial interest of any corporation, partnership or association in which he is, directly or indirectly, interested, in violation of any State statute or regulation. The Contractor warrants that it has not paid or given and will not pay or give any third party any money or other consideration for obtaining this Agreement.

8.3 Covenant Against Discrimination.

Contractor covenants that, by and for itself, its heirs, executors, assigns, and all persons claiming under or through them, there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, gender, sexual orientation, marital status, national origin, ancestry, or other protected class in the performance of th is Agreement. Contractor shall take affirmative action to insure that applicants are employed and that employees are treated during employment without regard to their race, color, creed, religion, sex, gender, sexual orientation, marital status, national origin, ancestry, or other protected class.

8.4 Unauthorized Aliens.

Contractor hereby promises and agrees to comply with all of the provisions of the Federal Immigration and Nationality Act, 8 U.S.C. § 1101 et seq., as amended, and in connection therewith, shall not employ unauthorized aliens as defined therein. Should Contractor so employ such unauthorized aliens for the p erformance of work and/or services co vered by this A greement, and should any liability or sanctions be imposed against City for such use of unauthorized aliens, Contractor hereby agrees to and shall reimburse City for the cost of all such liabilities or sanctions imposed, together with any and all costs, including attorneys' fees, incurred by City.

ARTICLE 9. MISCELLANEOUS PROVISIONS

9.1 Notices.

Any notice, demand, request, document, consent, approval, or communication either party desires or is required to give to the other party or any other person shall be in writing 115

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and either served personally or sent by prepaid, first-class mail, in the case of the City, to the City Manager and to the attention of the Contract Officer (with her/his name and City title), City Of Bell, 6330 Pine Avenue, Bell, CA 90201 and in the case of the Contractor, to the person at the address designated on the execution page of this Agreement. Either party may change its address by notifying the other party of the change of address in writing.

Notice shall be deemed communicated at the time personally delivered or in seventy- two (72) hours from the time of mailing if mailed as provided in th is Section. All correspondence relating to this Agreement shall be serialized consecutively.

9.2 Interpretation.

The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either party by reason of the authorship of this Agreement or any other rule of construction which might otherwise apply.

9.3 Counterparts.

This Agreement may be executed in counterparts, each of which shall be deemed to be an original, and such counterparts shall constitute one and the same instrument.

9.4 Integration; Amendment.

This Agreement including the attachments hereto is the entire, complete and exclusive expression of the understanding of the parties. It is understood that there are no oral agreements between the parties hereto affecting this Agreement and this Agreement supersedes and cancels any and all previous negotiations, arrangements, agreements and understandings, if any, between the parties, and none shall be used to interpret this Agreement. No amendment to or modification of this Agreement shall be valid unless made in writing and approved by the Contractor and by the City Council. The parties agree that this requirement for written modifications cannot be waived and that any attempted waiver shall be void.

9.5 Severability.

In the event that any one or more of the phrases, sentences, clauses, paragraphs, or sections contained in this Agreement shall be declared invalid or unenforceable by a valid judgment or decree of a court of competent jurisdiction, such invalidity or unenforceability shall not affect any of the remaining phrases, sentences, clauses, paragraphs, or sections of this Agreement which are hereby declared as severable and shall be interpreted to carry out the intent of the parties hereunder unless the invalid provision is so material that its invalidity deprives either party of the basic benefit of their bargain or renders this Agreement meaningless.

9.6 Warranty & Representation of Non-Collusion.

No official, officer, or employee of City has any financial interest, direct or indirect, in this Agreement, nor shall any official, officer, or employee of City p articipate in any 116

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decision relating to this Agreement which may affect his/her financial interest or the financial interest of any corporation, partnership, or association in which (s)he is directly or indirectly interested, or in violation of any corporation, partnership, or association in which (s)he is directly or indirectly in terested, or in violation of any State or municipal statute or regulation. The determination of “financial interest” shall be consistent with State law and shall not include interests found to be “remote” or “noninterests” pursuant to Government Code Sections 1091 or 1091.5. Contractor warrants and represents that it has not paid or given, and will not pay or give, to any third party including, but not limited to, any City official, officer, or employee, any money, consideration, or other thing of value as a result or consequence of obtaining or being awarded any agreement. Contr actor further warrants and represents that (s)he/it has not engaged in any act(s), omission(s), or other conduct or collusion that would result in the payment of any money, consideration, or other thing of value to any third party including, but not limited to, any City official, officer, or employee, as a result of consequence of obtaining or being awarded any agreement.

Contractor is aware of and understands that any such act(s), omission(s) or other conduct resulting in such payment of money, consideration, or other thing of value will render this Agreement void and of no force or effect.

Contractor’s Authorized Initials

9.7 Corporate Authority.

The persons executing this Agreement 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 Agreement on behalf of said party, (iii) by so executing this Agreement, such party is formally bound to the provisions of this Agreement, and (iv) the entering into this Agreement does not violate any provision of any other Agreement to which said party is bound. This Agreement shall be bind ing upon the h eirs, executors, administrators, successors and assigns of the parties.
[SIGNATURES ON FOLLOWING PAGE]

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IN WITNESS WHEREOF, the p arties hereto have executed this Ag reement on the date and year first-above written.

CITY:

CITY OF BELL
_________________________________
Ali Saleh, Mayor
ATTEST:
_________________________________
Angela Bustamante
City Clerk

APPROVED AS TO FORM:

ALESHIRE & WYNDER, LLP
_______________________________
David J. Aleshire, City Attorney

CONTRACTOR:

SEQUEL CONTRACTORS, INC.

By: ____________________________
Thomas S. Pack, President
By: ____________________________
Michael A. Mahler, Secretary
Address: 13546 Imperial Highway
Santa Fe Springs, CA 90670

Two corporate officer signatures required when Contractor is a corporation, with one signature required from e ach 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 R EGULATIONS APPLICABLE TO CONTRACTOR’S BUSINESS ENTITY.
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CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT

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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 ________________

On ____________________ before me, ________________________________________ (insert name and title of officer)
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 the 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: (Seal)

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STATE OF CALIFORNIA

COUNTY OF ________________

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: (Seal)

On ____________________ before me, ________________________________________

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EXHIBIT “A”

SCOPE OF WORK
I. Contractor shall perform all of the work and comply with all of the specifications and requirements in the Plans, Specifications, and Contract Documents for the project entitled STREET IMPROVEMENTS ON VARIOUS STREETS FY 2024– 2025 IN THE CITY OF BELL including any documents or exhibits referenced therein.

II. Brief description of the work to be performed:

Street Improvements on various streets. The project consists of pavement cold mill, applying ARAM, and ARHM overlay. It includes replacing sidewalk, pavement section, driveway, curb and gutter, adjusting manhole frames and valves to grade, adjusting water valve and water meter box to grade, installing detectable warning surface, speed hump, tree well vaults, irrigation, striping, and other incidental and appurtenant work necessary for the proper completion of the Project.

III. All work is subject to review and acceptance by the City and must be revised by the Contractor without additional charge to the City until found satisfactory and accepted by City.

IV. Contractor shall provide safe and continuous passage for pedestrian and vehicular traffic in accordance with the Work A rea Traffic Control Handbook (WATCH), latest edition.

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EXHIBIT “B”

SPECIAL REQUIREMENTS
(Superseding Contract Boilerplate)
Added text is shown as bold italics, deleted text is shown as strikethroughs.

Section 9.8, “Bonds”, is added to the Agreement and shall read as follows:
“9.8 Bonds.

In accordance with Section 5.4, upon execution of this Agreement and prior to commencement of work, Contractor shall provide a performance bond securing Contractor’s faithful performance of this Agreement in the amount equal to or greater than the Contract Sum. In addition, prior to commencement of work, Contractor shall provide a payment bond in the amount of the Contract Sum securing payment for all persons furnishing labor and materials in connection with the work under this Agreement in a form acceptable to the City.

If the Contract Sum is increased, Contractor shall increase the amounts of the performance bond and payment bond in the same or greater amount as the increase in the Contract Sum.

The following documents on pages CA-33 through CA-41, inclusive, shall be required to be completed and executed by Contractor and are hereby made a part of this Agreement:
o Faithful Performance Bond
o Payment Bond
o Worker’s Compensation Insurance Certificate
o Declaration of Sufficiency of Funds
o Guaranty
o Final Closeout Agreement and Release of All Claims”

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EXHIBIT “C”

SCHEDULE OF COMPENSATION
Contractor shall perform all work at the rates on the Bid Sheet submitted as part of Contractor’s Proposal, and listed below:

I. A retention of five percent (5%) shall be held from each payment as a contract retention to be paid as part of the final payment upon satisfactory completion of services.

II. Within the budgeted amounts for each item on the Bid Sheet, and with the approval of the Contract Officer, funds may be shifted from one item’s subbudget to another so long as the Contract Sum is not exceeded per Section 2.1, unless Additional Work is approved per Section 1.10.

III. The City will compensate Contractor for the Services performed upon submission of a valid invoice. Each invoice is to include:

A. Line items for all personnel describing the work performed, the number of hours worked, and the hourly rate.

B. Line items for all materials and equipment properly charged to the Services.

C. Line items for all other approved reimbursable expenses claimed, with supporting documentation.

D. Line items for all approved subcontractor labor, supplies, equipment, materials, and travel properly charged to the Services.

IV. The total compensation for the Services shall not exceed $970,144.10 as sated in Section 2.1 of this Agreement.

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EXHIBIT “D”

SCHEDULE OF PERFORMANCE
I. Contractor shall perform all work timely in accordance with the following schedule:

A. Task A Construction Schedule
Days to Perform: 10 working days from Execution of Contract Deadline Date :

B. Task B Complete All Work
Days to Perform: 45 working days after the date in the Notice to Proceed
Deadline Date :

C. Task C NOT APPLICABLE

II. Contractor shall deliver the following tangible work products to the City by the following dates.

A. Construction Schedule

B. Completion of all work per plans and specifications

III. The Contract Officer may approve extensions for performance of the services in accordance with Section 3.2.

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Property
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at and Sf Rlwy Union Pacific RR
Proposed Project
ATTACHMENT 2
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City of Bell
Agenda Report

DATE: June 25, 2025

TO: Honorable Mayor and Members of the City Council

FROM: John Oskoui, P.E., Interim Public Works Director BY: Kenneth Jones, Public Works Manager

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

SUBJECT: Consideration to Approve a n Agreement between the City of Bell and Salazar Landscaping dba SLA, Inc. (SLA) for Citywide Landscape Maintenance Services

RECOMMENDATION:

It is recommended that the City Council approve a Public Works Agreement between the City of Bell and SLA Inc, for Citywide Landscape Maintenance Services in an amount not-to-exceed $131,040 annually for a term of 3 years with the option to extend i t by 2 additional one-year terms.

BACKGROUND:

The City’s Public Works Department oversees maintenance of the City’s landscaped areas within the public right-of-way including parks, civic facilities, street median islands and bulb-outs and slopes. The goal is to maintain a well -run citywide landscape maintenance program creating clean, inviting and aesthetically pleasing public streets and spaces to be enjoyed by the residents of Bell and general public.

City staff perform limited scope of work, mostly in case of emergencies, as related to landscape maintenance; however, the city-wide landscape maintenance is contracted out due to the limited staff within the Public Works Department. The current agreement between the City of Bell and Mariposa Landscaping Inc. is nearing the end of its term and there have been concerns regarding performance and the need for the City to assess and evaluate new landscape services from other agencies.

DISCUSSION:

On May 12, 2025, staff issued a Request for Proposals (RFP) for Citywide Landscape Maintenance Services.

On June 4, 2025, the City received 7 proposals from the following proposers:

SLA, Inc.

EMTS, Inc.

Masters Landscape & Maintenance
Mariposa Landscapes, Inc.
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Priority Landscape Services, LLC.

Stay Green
DMS Facility Services

The proposals were reviewed by the Public Works Department staff and carefully evaluated based on the following criteria listed in the RFP.

• Qualifications- 30 points
• Past Performance- 20 points
• Understanding and Approach to performing Required Services- 30 points • Competitive pricing as compared to other qualified Proposers- 20 points Public Works staff reviewed and scored the proposals independently. The scores were then combined to determine a numerical ranking of each proposal. The following table shows the ranking of proposers based on the above-listed criteria.

RANK CONTRACTOR SCORE
1 SLA, Inc. 88.0
2 EMTS, Inc. 83.5
3 Masters Landscape & Maintenance 72.5
4 Mariposa Landscapes, Inc. 70.0
5 Priority Landscape Services, LLC 64.0
6 Stay Green 60.5
7 DMS Facility Services 30.5

Staff have determined that SLA, Inc., is the most qualified proposer to provide the required services to the City of Bell and its proposal represents the best overall value.

SLA’s proposal stood out from all other proposals because of their proposed workplan to provide proactive maintenance services to the City of Bell . The referenced workplan was developed using information obtained through an assessment which provided a critical analysis of the current condition of landscaped medians and parkways in the City of Bell. The findings of the assessment were based on identified deficiencies in four specific areas; irrigation, weed control, plant health and visual appearance. SLA has provided recommendations on how to mitigate the stated deficiencies and a plan of action to achieve them.

SLA Inc. is a licensed landscape contractor based in Bell Gardens, California with over 20 years of experience in the field of Landscape Maintenance for local governments. SLA has successfully maintained 30+ acres of public landscapes, including parks, medians, and school grounds. The company emphasizes sustainable practices, such as drought-tolerant landscaping, rainwater capture, and electric equipment, while delivering high-quality services like irrigation repair, tree care, and hardscape maintenance.

The term of the subject agreement is 3 years with the option of extending it by 2 one-year terms, at the sole discretion of the City. The cost of the contract will remain fixed for the initial 3-year term. If the City selects to exercise the option of extending the term, then each additional year’s fee could be subject to adjustment based on the Consumer Price Index (CPI) for Los Angeles - Long Beach-Anaheim or maintain the current rate of the agreement or the City and vendor may agree to other pricing terms and conditions based on economic factors at that time. 129
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Therefore, staff recommend that the City Council approve a Public Works Agreement between the City of Bell and SLA, Inc. for Citywide Landscape Maintenance Services.

FISCAL IMPACT:

There is no impact to the City’s General Fund. The City’s proposed budget for FY 2025-26 includes $150,000 in the Lighting and Landscaping Maintenance District Fund (Fund 450) for city-wide landscape maintenance services.

STRATEGIC PLAN 2023-25:

Target 3- Elevating Quality of Life
Goal 5- Maintain a Clean City
Action Item: Issue RFP for Landscape Services

ATTACHMENT(S):

1. Contract Services Agreement

2. SLA Inc. Proposal

3. SLA Inc. Schedule of Compensation

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CONTRACT SERVICES AGREEMENT

By and Between

CITY OF BELL

and

SALAZAR LANDSCAPING dba SLA

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AGREEMENT FOR CONTRACT SERVICES

BETWEEN THE CITY OF BELL AND
SALAZAR LANDSCAPING dba SLA

THIS AGREEMENT FOR CONTRACT SERVICES (herein “Agreement”) is made and entered into this 25th day of June, 2025 by and between the City of Bell, a California charter city (“City”) and Salazar Landscaping dba SLA, a California corporation (“Contractor”). City and Contractor may be referred to, individually or collectively, as “Party” or “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.

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

ARTICLE 1. SERVICES OF CONTRACTOR

1.1 Scope of Services.

In compliance with all terms and conditions of this Agreement, the Contractor shall provide those services specified in the “Scope of Services” 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 services required under this Agreement in a thorough, competent, and professional manner, and is experienced in performing the work and se rvices contemplated herein. Contractor shall at all times faithfully, competently and to the best of its ability, experience and talent, perform all 132
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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 mean those standards of practice recognized by one or more first -class firms performing similar work under similar circumstances.

1.2 Contractor’s Proposal.

The Scope of Services shall include the Contractor’s scope of work or bid which shall be incorporated herein by this reference as though fully set forth herein. In the event of any inconsistency between the terms of such proposal and this Agreement, the terms of this Agreement shall govern.

1.3 Compliance with Law.

1.4 Licenses, Permits, Fees and Assessments.

Contractor shall obtain at its sole cost and expense such licenses, permits 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 this Agreement, and shall indemnify, 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.

1.5 Familiarity with Work.

By executing this Agreement, Contractor warrants that Contractor (i) has thoroughly investigated and considered the scope of services 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 th e 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. Should the Contractor discover any latent or unknown conditions, which will materially affect the performance of the services hereunder, Contractor shall immediately inform the City of such fact and shall not proceed except at Contractor’s risk until written instructions are received from the Contract Officer.
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1.6 Care of Work.

The Contractor shall adopt reasonable methods 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 respon sible for all such damages, to persons or property, until acceptance of the work by City, except such losses or damages as may be caused by City’s own negligence.

1.7 Further Responsibilities of Parties.

Both parties agree to use reasonable 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 necess ary to carry out the purposes of this Agreement. Unless hereafter specified, neither party shall be responsible for the service of the other.

1.8 Additional Services.

City shall have the right 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 Contract Officer 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 Agreem ent, which said adjustments are subject to the written approval of the Contractor. Any increase in compensation of up to ten percent (10%) of the Contract Sum or $25,000, whichever is less; or, in the time to perform of up to one hundred eighty (180) days, may be approved by the Contract Officer. Any greater increases, taken either sep arately or cumulatively, must be approved by the City Council. It is expressly understood by Contractor that the provisions of this Section shall not apply to services specifi cally 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 establ ished in this Section are followed.

1.9 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.
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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 annual compensation, including reimbursement for actual expenses, shall not exceed One Hundred Thirty One Thousand Forty Dollars ($ 131,040.00) (the “Contract Sum”), unless additional compensation is approved pursuant to Section 1.8.

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 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 performance 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 only 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.

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 invoice for payment under this Agreement, Contractor is certifying compliance with all provisions of the Agreement. The invoice shall contain all information specified in Exhibit “C”, and 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 independently review each invoice submitted by the Contractor 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 135
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7.3, City will use its best efforts to 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 any charges or expenses are disputed by City, the original invoice shall be returned by City to Contractor for correction and resubmission. Review and payment by City for any invoice pr ovided 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.

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 unforeseeable 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, quarantine restrictions, riots, strikes, freight embargoes, wars, litigation, 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.
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3.4 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 three (3) years from the date hereof, except as otherwise provided in the Schedule of Performance (Exhibit “D”). The City may, in its sole discretion, extend the Term for two (2) additional one-year terms.

ARTICLE 4. COORDINATION OF WORK

4.1 Representatives and Personnel of Contractor.

(Name) (Title)

(Name) (Title)
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. Therefore, the foregoing 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 direction and control of the Principals. For purposes of this Agreement, the foregoing Principals may not be replaced nor may their responsibilities be substantially reduced by Contractor without the express written approval of City. Additionally, Contractor shall utilize only competent personnel to perform services pursuant to this Agreement. 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 th is 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 otherwise, 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 Jessie Salazar President
Abel Salazar Secretary
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any of Contractor’s officers, employees or agents, shall obtain any rights to retirement, health care or any other benefits which may 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 Kenneth Jones, Public Works Manager, or such person as may be designated by the City Manager. It shall be the Contractor’s responsibility to assure that the Contract 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 specifi ed in writing by the City Manager, to sign all documents on behalf of the City required hereunder to carry out the t erms of this Agreement.

4.4 Independent Contractor.

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 of Contractor in its business or otherwise or a joint venturer or a member of any joint enterprise with Contractor.

4.5 Prohibition Against Subcontracting or Assignment.

The experience, knowledge, capability and reputation of Contractor, its principals and employees were a substantial inducement for the City to enter into this Agreement.

Therefore, Contractor shall not contract with any other entity to perform in whole or in part the services required hereunder without the express written approval of the City. In addition, neither this Agreement nor any interest herein may be transferred, assigned, conveyed, hypothecated or encumbered voluntarily or by operation of law, whether for the benefit of creditors or otherwise, without the prior written approval of City. Transfers restricted hereunder shall include the transfer to any person or group of persons acting in concert of more than twenty five percent (25%) of the present ownership and/or control of Contractor, taking all transfers into account on a cumulative basis. In the event of any such unapproved transfer, including any bankruptcy proceeding, this Agreement shall be void. No approved transfer shall release the Contractor or any surety of Contractor of any liability hereunder without the express consent of City. 138
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ARTICLE 5. INSURANCE AND INDEMNIFICATION

5.1 Insurance Coverages.

Without limiting Contractor’s indemnification of City, and prior to commencement of any services under this Agreement, Contractor shall obtain, provide and maintain at its own expense during the term of this Agreement, policies of insurance of the type and amounts described below and in a form satisfactory to City. (a) General liability insurance . Contractor shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $5,000,000 per occurrence, $10,000,000 general aggregate, for bodily injury, personal injury, and property damage. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted. (b) Automobile liability insurance. Contractor shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the Contractor arising out of or in connection with Services to be performed under this Agreement, including coverage for any owned, hired, non-owned or rented vehicles, in an amount not less than $5,000,000 combined single limit for each accident.
(c) Professional liability (errors & omissions) insurance . Contractor shall maintain professional liability insurance that covers the Services to be performed in connection with this Agreement, in the minimum amount of $2,000,000 per claim and in the aggregate. Any policy inception date, continuity date, or retroactive date must be before the effective date of this Agreement and Contractor agrees to maintain continuous coverage through a period no less than five (5) years after completion of the services required by this Agreement.
(d) Workers’ compensation insurance . Contractor shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of at least $1,000,000).
(e) Subcontractors. Contractor shall include all subcontractors as insureds under its policies or shall furnish separate certificates and certified endorsements for each subcontractor. All coverages for subcontractors shall include all of the requirements stated herein.
(f) Additional Insurance . Policies of such other insurance, as may be required in the Special Requirements in Exhibit “B”.

5.2 General Insurance Requirements.
(a) Proof of insurance. Contractor shall provide certificates of insurance to City as evidence of the insurance coverage required herein, along with a waiver of subrogation endorsement for workers’ compensation. Insurance certificates and endorsements must be approved by City’s Risk Manage r prior to commencement of 139
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performance. Current certification of insurance shall be kept on file with City at all times during the term of this Agreement. City reserves the right to require complete, certified copies of all required insurance policies, at any time. (b) Duration of coverage. Contractor shall procure and maintain for the duration of this Agreement insurance against claims for injuries to persons or damages to property, which may arise from or in connection with the performance of the Services hereunder by Contractor, its agents, representatives, employees or subcontractors. (c) Primary/noncontributing. Coverage provided by Contractor shall be primary and any insurance or self-insurance procured or maintained by City shall not be required to contribute with it. The limits of insurance required herein may be satisfied by a combination of primary and umbrella or excess insurance. Any umb rella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non-contributory basis for the benefit of City before the City’s own insurance or self-insurance shall be called upon to protect it as a named insured. (d) City’s rights of enforcement . In the event any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced, City has the right but not the duty to obtain the insurance it deems necessary and any premium paid by City will be promptly reimbursed by Contractor or City will withhold amounts sufficient to pay premium from Contractor payments. In the alternative, City may cancel this Agreement.
(e) Acceptable insurers . All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance or that is on the List of Approved Surplus Line Insurers in the State of California, with an assigned poli cyholders’ Rating of A - (or higher) and Financial Size Category Class VI (or larger) in accordance with the latest edition of Best’s Key Rating Guide, unless otherwise approved by the City’s Risk Manager. (f) Waiver of subrogation . All insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against City, its elected or appointed officers, agents, officials, employees and volunteers or shall specifically allow Contractor or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Contractor hereby waives its own right of recovery against City, and shall require similar written express waivers and insurance clauses from each of its subcontractors. (g) Enforcement of contract provisions (non -estoppel). Contractor acknowledges and agrees that any actual or alleged failure on the part of the City to inform Contractor of non -compliance with any requirement imposes no additional obligations on the City nor does it waive any rights hereunder. (h) Requirements not limiting . Requirements of specific coverage features or limits contained in this section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification 140
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only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. If the Contractor maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for the higher limits maintained by the Contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.
(i) Notice of cancellation . Contractor agrees to oblige its insurance agent or broker and insurers to provide to City with a thirty (30) day notice of cancellation (except for nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each required coverage.
(j) Additional insured status. General liability policies shall provide or be endorsed to provide that City and its officers, officials, employees, and agents, and volunteers shall be additional insureds under such policies. This provision shall also apply to any excess/umbrella liability policies.
(k) Prohibition of undisclosed coverage limitations . None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing.
(l) Separation of insureds. A severability of interests provision must apply for all additional insureds ensuring that Contractor’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the insurer’s limits of liability. The policy(ies) shall not contain any cross-liability exclusions. (m) Pass through clause . Contractor agrees to ensure that its subContractors, subcontractors, and any other party involved with the project who is brought onto or involved in the project by Contractor, provide the same minimum insurance coverage and endorsements required of Contractor. Contractor agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Contractor agrees that upon request, al l agreements with Contractors, subcontractors, and others engaged in the project will be submitted to City for review. (n) Agency’s right to revise specifications . The City reserves the right at any time during the term of the contract to change the amounts and types of insurance required by giving the Contractor ninety (90) days advance written notice of such change. If such change results in substantial additional cost to the Contractor, the City and Contractor may renegotiate Contractor’s compensation. (o) Self-insured retentions. Any self-insured retentions must be declared to and approved by City. City reserves the right to require that self -insured retentions be eliminated, lowered, or replaced by a deductible. Self -insurance will not be considered to comply with these specifications unless approved by City. 141
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(p) Timely notice of claims. Contractor shall give City prompt and timely notice of claims made or suits instituted that arise out of or result from Contractor’s performance under this Agreement, and that involve or may involve coverage under any of the required liability policies.
(q) Additional insurance. Contractor shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the work.

5.3 Indemnification.

To the full extent permitted by law, Contractor agrees to indemnify, defend and hold harmless the City, its officers, employees and agents (“Indemnified Parties”) against, and will hold and save them and each of them harmless from, any and all actions, either judicial, administrative, arbitration or regulatory claims, damages to persons or property, losses, costs, penalties, obligations, errors, omissions or liabilities whether actual or threatened (herein “claims or liabilities”) that may be asserted or claimed by any person, firm or entity arising out of or in connection with the negligent performance of the work, operations or activities provided herein of Contractor, its officers, employees, agents, subcontractors, or invitees, or any individual or entity for which Contractor is legally liable (“indemnitors”), or arising from Contractor’s or indemnitors’ reckless or willful misconduct, or arising from Contractor’s or indemnitors’ negligent performance of or failure to perform any term, provision, covenant or condition of this Agreement, and in connection therewith:
(a) Contractor will defend any action or actions filed in connection with any of said claims or liabilities and will pay all costs and expenses, including legal costs and attorneys’ fees incurred in connection therewith; (b) Contractor will promptly pay any judgment rendered against the City, its officers, agents or employees for any such claims or liabilities arising out of or in connection with the negligent performance of or failure to perform such work, operations or activities of Contractor hereunder; and Contractor agrees to save and hold the City, its officers, agents, and employees harmless therefrom;
(c) In the event the City, its officers, agents or employees is made a party to any action or proceeding filed or prosecuted against Contractor for such damages or other claims arising out of or in connection with the negligent performance of or failure to perform the work, operation or activities of Contractor hereunder, Contractor agrees to pay to the City, its officers, agents or employees, any and all costs and expenses incurred by the City, its officers, agents or employees in such action or proceeding, including but not limited to, legal costs and attorneys’ fees.

Contractor shall incorporate similar indemnity agreements with its subcontractors and if it fails to do so Contractor shall be fully responsible to indemnify City hereunder therefore, and failure of City to monitor compliance with these provisions shall not be a waiver hereof. This indemnification includes claims or liabilities arising from any negligent or wrongful act, error or omission, or reckless or willful misconduct of Contractor in the 142
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performance of professional services hereunder. The provisions of this Section do not apply to claims or liabilities occurring as a result of City’s sole negligence or willful acts or omissions, but, to the fullest extent permitted by law, shall apply to c laims and liabilities resulting in part from City’s negligence, except that design professionals’ indemnity hereunder shall be limited to claims and liabilities arising out of the negligence, recklessness or willful misconduct of the design professional. The indemnity obligation shall be binding on successors and assigns of Contractor and shall survive termination of this Agreement.

ARTICLE 6. RECORDS, REPORTS, AND RELEASE OF INFORMATION

6.1 Records.

Contractor shall keep, and require subcontractors to keep, such ledgers, books of accounts, invoices, vouchers, canceled checks, reports, studies or other documents relating to the disbursements charged to City and services performed hereunder (the “books and record s”), as shall be necessary to perform the services required by this Agreement and enable the Contract Officer to evaluate the performance of such services. Any and all such documents shall be maintained in accordance with generally accepted accou nting principles and shall be complete and detailed. The Contract Officer shall have full and free access to such books and records at all times during normal business hours of City, including the right to inspect, copy, audit and make records and transcripts from such records. Such records shall be maintained for a period of three (3) years following completion of the services hereunder, and the City shall have access to such records in the event any audit is required. In the event of dissolution of Contractor’s business, custody of the books and records may be given to City, and access shall be provided by Contractor’s successor in interest. Notwithstanding the above, the Contractor shall fully cooperate with the City in providing access to the books and records if a public records request is made and disclosure is required by law including but not limited to the California Public Records Act.

6.2 Reports.

Contractor shall periodically prepare and submit to the Contract Officer such reports concerning the performance of the services required by this Agreement as the Contract Officer shall require. Contractor hereby acknowledges that the City is greatly concerned about the cost of work and services to be performed pursuant to this Agreement. For this reason, Contractor agrees that if Contractor becomes aware of any facts, circumstances, techniques, or events that may or will materially increase or decrease the cost of the work or services contemplated herein or, if Contractor is providing design services, the cost of the project being designed, Contractor shall promptly notify the Contract Officer of said fact, circumstance, technique or event and the estimated increased or decreased cost related thereto and, if Contractor is providing design services, the estimated increased or decreased cost es timate for the project being designed.
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6.3 Ownership of Documents.

All drawings, specifications, maps, designs, photographs, studies, surveys, data, notes, computer files, reports, records, documents and other materials (the “documents and materials”) prepared by Contractor, its employees, subcontractors and agents in the performance of this Agreement shall be the property of City and shall be delivered to City upon request of the Contract Officer or upon the termination of this Agreement, and Contractor shall have no claim for further employment or additional compensation as a result of the exercise by City of its full rights of ownership use, reuse, or assignment of the documents and materials hereunder. Any use, reuse or assignment of such completed documents for other projects and/or use of uncompleted documents without specific written authorization by the Contractor will be at the City’s sole risk and without liability to Contractor, and Contractor’s guarantee and warranties shall not extend to such use, reuse or assignment. Contractor may retain copies of such documen ts for its own use. Contractor shall have the right to use the concepts embodied therein. All subcontractors shall provide for assignment to City of any documents or materials prepared by them, and in the event Contractor fails to secure such assignment, Contractor shall indemnify City for all damages resulting therefrom. Moreover, Contractor with respect to any documents and materials that may qualify as “works made for hire” as defined in 17 U.S.C. § 101, such documents and materials are hereby deemed “works made for hire” for the City.

6.4 Confidentiality and Release of Information.
(a) All information gained or work product produced by Contractor in performance of this Agreement shall be considered confidential, unless such information is in the public domain or already known to Contractor. Contractor shall not release or disclose any such information or work product to persons or entities other than City without prior written authorization from the Contract Officer. (b) Contractor, its officers, employees, agents or subcontractors, shall not, without prior written authorization from the Contract Officer or unless requested by the City Attorney, voluntarily provide documents, declarations, letters of support, testimony at depositions, response to interrogatories or other information concerning the work performed under this Agreement. Response to a subpoena or court order shall not be considered “voluntary” provided Contractor gives City notice of such court order or subpoena.
(c) If Contractor, or any officer, employee, agent or subcontractor of Contractor, provides any information or work product in violation of this Agreement, then City shall have the right to reimbursement and indemnity from Contractor for any damages, costs and fees, including attorney’s fees, caused by or incurred as a result of Contractor’s conduct.
(d) Contractor shall promptly notify City should Contractor, its officers, employees, agents or subcontractors be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admissions or other discovery request, court order or subpoena from any party regarding 144
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this Agreement and the work performed there under. City retains the right, but has no obligation, to represent Contractor or be present at any deposition, hearing or similar proceeding. Contractor agrees to cooperate fully with City and to provide City with the opportunity to review any response to discovery requests provided by Contractor.

However, this right to review any such response does not imply or mean the right by City to control, direct, or rewrite said response.

ARTICLE 7. ENFORCEMENT OF AGREEMENT AND TERMINATION

7.1 California Law.

This Agreement shall be interpreted, construed and governed both as to validity and to performance of the parties in accordance with the laws of the State of California.

Legal actions concerning any dispute, claim or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of Los Angeles, State of California, or any other appropriate court in such county, and Contractor covenants and agrees to submit to the personal jurisdiction of such court in the even t of such action. In the event of litigation in a U.S. District Court, venue shall lie exclusively in the Central District of California, in the County of Los Angeles, State of California.

7.2 Disputes; Default.

In the event that Contractor is in default under the terms of this Agreement, the City shall not have any obligation or duty to continue compensating Contractor for any work performed after the date of default. Instead, the City may give notice to Contractor of the default and the reasons for the default. The notice shall include the timeframe in which Contractor may cure the default. This timeframe is presumptively thirty (30) days, but may be extended, though not reduced, if circumstances warrant. During the period of time that Contractor is in default, the City shall hold all invoices and shall, when the default is cured, proceed with payment on the invoices. In the alternative, the City may, in its sole discretion, elect to pay some or all of the outstanding invoices during the period of default. If Contractor does not cure the default, the City may take necessary steps to terminate this Agreement under this Article. Any failure on the part of the City to give notice of the Contractor’s default shall not be deemed to result in a waiver of the City’s legal rights or any rights arising out of any provision of this Agreement.

7.3 Retention of Funds.

Contractor hereby authorizes City to deduct from any amount payable to Contractor (whether or not arising out of this Agreement) (i ) any amounts the payment of which may be in dispute hereunder or which are necessary to compensate City for any losses, costs, liabilities, or damages suffered by City, and (ii) all amounts for which City may be liable to third parties, by reason of Contractor’s acts or omissions in performing or failing to perform Contractor’s obligation under this Agreement. In the event that any claim is made by a third party, the amount or validity of which is disputed by Contractor, or any indebtedness shall exist which shall appear to be the basis for a claim of lien, City may withhold from any payment due, without liability for interest because of such withholding, an amount sufficient to cover such claim. The failure of City to exercise such 145
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right to deduct or to withhold shall not, however, affect the obligations of the Contractor to insure, indemnify, and protect City as elsewhere provided herein.

7.4 Waiver.

Waiver by any party to this Agreement of any term, condition, or covenant of this Agreement shall not constitute a waiver of any other term, condition, or covenant.

Waiver by any party of any breach of the provisions of this Agreement shall not constitute a waiver of any other provision or a waiver of any subsequent breach or violation of any provision of this Agreement. Acceptance by City of any work or services by Contractor shall not constitute a waiver of any of the provisions of this Agreement. No dela y or omission in the exercise of any right or remedy by a non -defaulting party on any default shall impair such right or remedy or be construed as a waiver. Any waiver by either party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement.

7.5 Rights and Remedies are Cumulative.

Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties are cumulative and the exercise by either party of one or more of such rights or remedies shall not preclude the exercis e by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party.

7.6 Legal Action.

In addition to any other rights or remedies, either party may take legal action, in law or in equity, to cure, correct or remedy any default, to recover damages for any default, to compel specific performance of this Agreement, to obtain declaratory or injunctive relief, or to obtain any other remedy consistent with the purposes of this Agreement. Notwithstanding any contrary provision herein, Contractor shall file a statutory claim pursuant to Government Code Sections 905 et seq. and 910 et seq., in order to pursue a legal action under this Agreement.

7.7 Termination Prior to Expiration of Term.

This Section shall govern any termination of this Contract except as specifically provided in the following Section for termination for cause. The City reserves the right to terminate this Contract at any time, with or without cause, upon thirty (30) days’ written notice to Contractor, except that where termination is due to the fault of the Contractor, the period of notice may be such shorter time as may be determined by the Contract Officer. In addition, the Contractor reserves the right to terminate this Contract at any time, with or without cause, upon sixty (60) days’ written notice to City, except that where termination is due to the fault of the City, the period of notice may be such shorter time as the Contractor may determine. Upon receipt of any notice of termination, Contractor shall immediately cease all services hereunder except such as may be specifically approved by the Contract Officer. Except where the Contractor has initiated termination, the Contractor shall be entitled to compensation for all services rendered 146
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prior to the effective date of the notice of termination and for any services authorized by the Contract Officer thereafter in accordance with the Schedule of Compensation or such as may be approved by the Contract Officer, except as provided in Section 7. 3. In the event the Contractor has initiated termination, the Contractor shall be entitled to compensation only for the reasonable value of the work product actually produced hereunder. In the event of termination without cause pursuant to this Section, th e terminating party need not provide the non -terminating party with the opportunity to cure pursuant to Section 7.2.

7.8 Termination for Default of Contractor.

If termination is due to the failure of the Contractor to fulfill its obligations under this Agreement, City may, after compliance with the provisions of Section 7.2, take over the work and prosecute the same to completion by contract or otherwise, and the Contractor shall be liable to the extent that the total cost for completion of the services required hereunder exceeds the compensation herein stipulated (provided that the City shall use reasonable efforts to mitigate such damages), and City may withhold any payments to the Contractor for the purpose of set-off or partial payment of the amounts owed the City as previously stated.

7.9 Attorneys’ Fees.

If either party to this Agreement is required to initiate or defend or made a party to any action or proceeding in any way connected with this Agreement, the prevailing party in such action or proceeding, in addition to any other relief which may be granted, whether legal or equitable, shall be entitled to reasonable attorney’s fees. Attorney’s fees shall include attorney’s fees on any appeal, and in addition a party entitled to attorney’s fees shall be entitled to all other reasonable costs for investigati ng such action, taking depositions and discovery and all other necessary costs the court allows which are incurred in such litigation. All such fees shall be deemed to have accrued on commencement of such action and shall be enforceable whether or not such action is prosecuted to judgment.

ARTICLE 8. CITY OFFICERS AND EMPLOYEES: NON-DISCRIMINATION

8.1 Non-liability of City Officers and Employees.

8.2 Conflict of Interest.

Contractor covenants that neither it, nor any officer or principal of its firm, has or shall acquire any interest, directly or indirectly, which would conflict in any manner with the interests of City or which would in any way hinder Contractor’s performance of services under this Agreement. Contractor further covenants that in the performance of this Agreement, no person having any such interest shall be employed by it as an officer, 147
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employee, agent or subcontractor without the express written consent of the Contract Officer. Contractor agrees to at all times avoid conflicts of interest or the appearance of any conflicts of interest with the interests of City in the performance of this Agreement.

No officer or employee of the City shall have any financial interest, direct or indirect, in this Agreement nor shall any such officer or employee participate in any decision relating to the Agreement which affects her/his financial interest or the financial interest of any corporation, partnership or association in which (s)he is, directly or indirectly, interested, in violation of any State statute or regulation. The Contractor warrants that it has not paid or given and will not pay or give any third party any money or other consideration for obtaining this Agreement.

8.3 Covenant Against Discrimination.

Contractor covenants that, by and for itself, its heirs, executors, assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, gender, sexual orientation, marital status, national origin, ancestry or other protected class in the performance of this Agreement. Contractor shall take affirmative action to insure that applicants are employed and that employees are treate d during employment without regard to their race, color, creed, religion, sex, gender, sexual orientation, marital status, national origin, ancestry or other protected class.

8.4 Unauthorized Aliens.

Contractor hereby promises and agrees to comply with all of the provisions of the Federal Immigration and Nationality Act, 8 U.S.C. § 1101 et seq. , as amended, and in connection therewith, shall not employ unauthorized aliens as defined therein. Should Contractor so employ such unauthorized aliens for the performance of work and/or services covered by this Agreement, and should any liability or sanctions be imposed against City for such use of unauthorized aliens, Contractor hereby agrees to and shall reimburse City for the cost of all such liabilities or sanctions imposed, together with any and all costs, including attorneys’ fees, incurred by City.

ARTICLE 9. MISCELLANEOUS PROVISIONS

9.1 Notices.

Any notice, demand, request, document, consent, approval, or communication either party desires or is required to give to the other party or any other person shall be in writing and either served personally or sent by prepaid, first -class mail, in the case of the City, to the City Manager and to the attention of the Contract Officer (with her/his name and City title), City of Bell, 6330 Pine Avenue, Bell, California 90201 and in the case of the Contractor, to the person(s) at the address designated on the e xecution page of this Agreement. Either party may change its address by notifying the other party of the change of address in writing. Notice shall be deemed communicated at the time personally delivered or in seventy -two (72) hours from the time of mailin g if mailed as provided in this Section.
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9.2 Interpretation.

9.3 Counterparts.

This Agreement may be executed in counterparts, each of which shall be deemed to be an original, and such counterparts shall constitute one and the same instrument.

9.4 Integration; Amendment.

The parties agree that this requirement for written modifications cannot be waived and that any attempted waiver shall be void.

9.5 Severability.

9.6 Warranty & Representation of Non-Collusion.

No official, officer, or employee of City has any financial interest, direct or indirect, in this Agreement, nor shall any official, officer, or employee of City participate in any decision relating to this Agreement which may affect his/her financial inte rest or the financial interest of any corporation, partnership, or association in which (s)he is directly or indirectly interested, or in violation of any corporation, partnership, or association in which (s)he is directly or indirectly interested, or in v iolation of any State or municipal statute or regulation. The determination of “financial interest” shall be consistent with State law and shall not include interests found to be “remote” or “noninterests” pursuant to Government Code Sections 1091 or 1091.5. Contractor warrants and represents that it has not paid or given, and will not pay or give, to any third party including, but not limited to, any City official, officer, or employee, any money, consideration, or other thing of 149
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value as a result or consequence of obtaining or being awarded any agreement.

Contractor further warrants and represents that (s)he/it has not engaged in any act(s), omission(s), or other conduct or collusion that would result in the payment of any money, consideration, or other thing of value to any third party including, but not limited to, any City official, officer, or employee, as a result of consequence of obtaining or being awarded any agreement. Contractor is aware of and understands that any such act(s), omission(s) or other conduct resulting in such payment of money, consideration, or other thing of value will render this Agreement void and of no force or effect.

Contractor’s Authorized Initials _______

9.7 Corporate Authority.

The persons executing this Agreement 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 Agreement on behalf of said party, (iii) by so executing this Agreement, such party is formally bound to the provisions of this Agreement, and (iv) that entering into this Agreement does not violate any provision of any other Agreement to which said party is bound. This Agreement shall be binding upon the heirs, executors, administrators, successors and assigns of the parties.

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date and year first-above written.

CITY:

CITY OF BELL, a charter city

Ali Saleh, Mayor
ATTEST:

Angela Bustamante, City Clerk
APPROVED AS TO FORM:

ALESHIRE & WYNDER, LLP

David J. Aleshire, City Attorney
CONTRACTOR:

SALAZAR LANDSCAPING dba SLA, a California
corporation
By:

Name:

Title:

By:

Name:

Title:

Address:

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.

Jessie Salazar
President
Abel Salazer
Secretary
6750 foster Bridge Blvd., Unit G
Bell Gardens, CA 90201
(310) 529-2291
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CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT

STATE OF CALIFORNIA

COUNTY OF LOS ANGELES

On __________, 2025 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)

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

CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT

STATE OF CALIFORNIA

COUNTY OF LOS ANGELES

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
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. 153
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EXHIBIT “A”

SCOPE Of SERVICES
I. Contractor will perform the following Services:

Scope of Services specified in pages P-1 through P-60 attached hereto and incorporated herein.

II. Contractor must perform all Services in compliance with the following requirements:

A. Each task shall be indicated by a written request produced by the City with a description of the work to be performed, and the time desired for completion. All tasks shall be carried out in conformity with all provisions of this Agreement.

B. Contractor must prepare a written description of requested tasks including all components and subtasks; the costs to perform the task (“Task Project”); explain how the cost was determined; and as schedule for completion of the task (“Task Completion Date”); which shall all collectively be referred to as the “Task Proposal.” C. City shall in writing approve, modify or reject the Task Proposal, and may issue a Notice to Proceed.

D. The task shall be performed at a cost not to exceed the Task Budget.

E. Contractor shall complete the task and deliver all deliverables to the City by Task Completion Date.

III. In addition to the requirements of Section 6.2, during performance of the Services, Contractor will keep the City appraised of the status of performance by providing a monthly report.

IV. All work product is subject to review and acceptance by the City, and must be revised by the Contractor without additional charge to the City until found satisfactory and accepted by City.

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SECTION I: INTRODUCTION AND INSTRUCTIONS TO PROPOSERS

A) OVERVIEW

The City of Bell is seeking proposals from qualified vendors to perform Citywide Landscape Maintenance Services in accordance within the Scope of Services of this RFP. All appurtenant work as required by the Specifications.

The City desires to establish a contract with Citywide Landscape Maintenance Contractor to enable the City to provide and maintain a high level of support to accomplish services.

The selected Contractor will provide services per an initial three (3) year agreement with the option to renew for two (2) additional one-year periods.

The City intends that the successful Proposer(s) shall provide the services requested in accordance within the Scope of Services of this RFP, which also includes all exhibits, attachments, and appendices with negotiated modifications.

B) PROPOSED SCHEDULE

RFP Release Date Monday, May 12 , 2025
Questions Due Tuesday, May 27, 2025
City Response to Questions Friday, May 30, 2025
Electronic Proposals Due Date Wednesday, June 4, 2025, at 3:00 PM (PST) Projected City Council Contract Award Date Wednesday, June 25, 2025

C) SCOPE OF SERVICES

The Scope of Services shall include, but not be limited to the following tasks. Proposers are encouraged to recommend alternative approaches and/or additional tasks to complet e the work.

1. Routine Maintenance

When conducting scheduled routine maintenance, the Contractor’s Supervisor or their designee shall inspect each site and respond immediately to any malfunctions, vandalism, hazardous conditions or otherwise abnormal conditions that are inconsistent with the quality standards specified herein or threaten people and/or property by rep orting the condition immediately to the City Representative or their designee.

The Contractor shall furnish all labor, equipment, materials, and supervision to perform maintenance as described herein including, but not limited to the following:

1. Weeding, cultivating, and brush control both mechanically and with chemicals.

2. Fertilizing.

3. Shrub and groundcover trimming and pruning.

4. Irrigation system programming, monitoring, maintenance and repair.

5. General pesticide management includes, but not limited to, rodent, insect , and disease control.
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6. Mowing, verticutting, and aerifying.

7. Raking and dethatching.

8. General litter control, refuse removal, removal of debris and grounds policing

9. Hardscape cleaning.

10. Contractor shall also be responsible for any damages due to personnel and/or equipment (i.e. should a mower damage a fence).

Vehicles must be parked within designated areas or in such a location that will ensure normal and safe vehicular traffic and pedestrian access.

The Contractor shall perform all work between the hours of 7:00 a.m. and 4:30 p.m., Monday through Friday (excluding City observed holidays) for all areas. Work performed outside of this period shall only be done with prior approval of the City Representat ive or their designee.

Contractor shall adjust their schedule as necessary to ensure all work and locations are completed during the week in which a holiday falls.

2. Personnel and Equipment

1. Any employee who fails to work or act in an unacceptable manner, as determined by the City Representative, shall be removed from working on City contracts immediately.

2. All personnel shall wear uniforms, safety shoes, reflective safety vests and other safety equipment while working within roadways rights-of-way.

3. All vehicles shall contain a workable flashing yellow light (or lights) that shall be used while working on roadways, parking lots, bicycle areas, and pedestrian ways.

4. Contractor shall be available to meet with the City Representative to review the Contractor’s schedules and performance, resolve problems, and perform field inspections, as required by the City Representative.

5. All work shall be performed in accordance with the highest landscape maintenance standards. Standards and frequencies may be modified from time to time as deemed necessary by the City for the proper maintenance of the designated sites.

6. The Contractor will be required to complete landscape maintenance services as scheduled.

It is the Contractor's responsibility to dedicate the appropriate number of employees and crews to complete the tasks outlined in this RFP.

7. Contractor shall provide certified pesticide personnel fully trained in all phases of landscape pesticides laws, regulations, operation, reporting, adjustment and repairs.

8. Contractor shall be responsible for providing a safe workplace and for compliance with standard and regulations of the California Occupational Safety and Health Act (CalOSHA), Federal Occupation al and Safety Health Act (OSHA), California Division of Industrial Safety Orders (CDIS) and any other applicable government laws.

9. Contractor shall set up traffic control plans per the latest edition of the California Manual on Uniform Traffic Control Devices (CA MUTCD). No work shall be performed without traffic control devices in place. Contractor shall make every effort to keep commercial and residential driveways open during working hours while adhering to the City - approved traffic control plan. 156
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10. Contractor shall provide the City with names and telephone numbers of at least two qualified people who can be called by the City Representative or their designee, or when emergency maintenance conditions occur during hours when the Contractor’s regular wo rk force is not present within City boundaries.

3. Extra Works

1. Extra work shall be performed by the Contractor using Contractor’s extra work pricing, in accordance with the Extra Work Unit Cost sheet on Exhibit “C”.

2. Costs for extra work shall be based on “per unit” costs agreed to, or lesser, in this contract or labor rate unit cost plus the cost of materials if no line item exists.

3. Only those extra work items authorized via a proposal from the Contractor and signed by the City Representative or their designee shall be paid.

4. No new work of any kind shall be considered an extra unless a separate estimate is given for said work and the estimate is approved by the City Representative before the work commences.

4. Irrigation System Maintenance

The Contractor is responsible for all irrigation system management, repairs, and water conservation at each site. This includes maintaining 111 City irrigation controllers and coordinating with the City to ensure optimal system performance and plant health.

The Contractor shall provide all labor, materials, equipment, and supervision to:

1. Inspect and ensure proper operation of spray heads, piping, valves, and controller clocks.

2. Adjustment of head or nozzle spay and disassembling and assembling irrigation valves to free up obstructions and prevent overspray or excessive runoff into street rights -of-way or other areas not intended to be irrigated.

3. Repairing and adjusting all sprinkler heads to maintain proper and uniform water application and adhere to all State, County and local regulations.

4. Repair any damage caused by the Contractor using identical parts, or approved substitutes with written City approval.

5. Notify the City of system deficiencies and complete repairs within 24 hours unless directed otherwise.

6. Submit cost proposals for repairs between the remote-control valve and meter; such work is considered extra and must be pre-approved

The City may modify irrigation requirements during droughts or water restrictions.

The Contractor is responsible for all irrigation repairs from the master valve downstream, including controllers, rain sensors, wiring, and other components. Main line failures must be reported within 24 hours. Unrepairable components must be replaced at c ost plus 15%, with pre-approval. Labor costs will be paid per bid rates. Unauthorized repairs or failure to meet standards may result in payment deductions and performance notices.

• Irrigation Scheduling and Water Management
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The Contractor shall be responsible for programming/maintaining/adjusting all irrigation controllers, and sprinkler heads to ensure full landscape surface area coverage.

Irrigation Controller Stations

For changes to irrigations schedules controlled by the City’s central irrigation computers, the Contractor shall submit proposed irrigation schedules or a request to change a schedule to the City Representative, two (2) days in advance of the needed change . City Representative, using information provided by the contractor, shall program the change by the date requested.

All inspections shall be included in the work schedule and be performed in the presence of the City Representative unless otherwise authorized.

The Contractor shall be responsible for programming each non -centralized irrigation controller in the “off” position during inclement weather. Failure to do so shall result in a penalty of $100 per occurrence per irrigation controller for those observed to not be in the “off” position.

The City shall have final determination as to the appropriate programming of irrigation controllers. Upon discovery, the Contractor shall immediately report any irrigation system malfunctions, vandalism or damage to the City representative.

The Contractor shall be responsible for necessary repairs to irrigation controllers. The City Representative shall inspect and confirm any proposed repairs to irrigation controllers prior to commencement.

The Contractor shall furnish the City with copies of all invoicing, with both pricing and quantities listed, for any purchases of Rainbird and/or Hunter Industries Products monthly.

• Irrigation/Operations and Maintenance

City Hall 7 stations
Police Department 7 stations
Library/George Bell House 6 stations
Community Center/Treder Park 13 stations
Ernest Debs Park 1 station
Camp Little Bear Park 14 stations
Veterans Memorial Park 16 stations
Pritchard Field Park (Under Construction) TBD
Gage Avenue & Heliotrope Avenue Park (In Design Phase) TBD Otis Avenue Traffic Island 2 stations
Wilcox Avenue Traffic Island 1 station
Carmelita Avenue Traffic Island 1 station
Florence Avenue Medians 4 stations
Florence Avenue Bulb-out Planters 24 stations
Atlantic Avenue Medians 7 stations
Bandini Avenue Medians TBD
Eastern Avenue Medians 8 stations
North/South Gage Avenue TBD
North/South Florence Avenue TBD
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Contractor shall keep all controllers in continuous working order.

Contractor shall repair and clean the irrigation controllers as needed to ensure good working performance.

Contractor shall keep all controller enclosures in good working order. This includes cleaning door panels, vacuuming interiors, pest prevention-eradication, lubrication of hinges, locks, etc.

Contractor is responsible for always securing the controller cabinet door.

Contractor shall adjust all aspect of the irrigation systems in order to:
• Provide optimum coverage of all landscaped areas.
• Prevent or minimize runoff and/or erosion.
• Prevent or minimize water on roadways, facilities (tennis, basketball and handball courts, walkways, fences, private property, or other non-landscaped surfaces). • Match precipitation rates of all nozzles/heads.
• Prevent, eliminate and/or limit hazardous conditions. • Prevent “flood irrigation”; over irrigating one area to account for coverage deficiency in another area.

All system malfunctions, damage, and obstructions shall be recorded, and timely corrective action taken.

In addition to specified routine irrigation system testing, all irrigation systems shall be tested and inspected as necessary when damage is suspected, observed, or reported; daily, if needed.

Contractor shall correct deficient irrigation systems and equipment as necessary following notification from the City Representative.

The Contractor shall ensure that: Sprinkler heads are in good operational order, filters are cleaned regularly, and nozzles are replaced when worn or inadequate coverage occurs. Any minor changes such as riser extensions (vertically or horizontally) sprinkler head exchanges, and filter replacements shall be considered as included in the contract price and no additional compensation shall be allowed, therefore.

• Materials

All replacement materials shall be original types and model materials, unless a substitute is approved by the City Representative. Contactor shall maintain an adequate inventory of medium to high usage stock items for repair of the irrigation systems. Contractor shall implement repairs in accordance with all warranties. Cost of materials invoiced to the City shall be the Contractor’s actual cost, NO mark-ups allowed.

5. Weed Control

The Contractor shall inspect and monitor all specified maintenance areas, including but not limited to, turf grass, shrub and ground cover areas, planters, tree wells, hardscapes areas. These areas shall be always kept free of weeds.

1. Weed removal shall consist of complete removal of all undesirable or misplaced vegetation, including top growth and roots or weeds appear.

2. Weed abatement activities shall be performed a minimum of one (1) time per week.

3. Weed abatement and control can be performed either by hand, mechanical or chemical methods or as requested by the City Representative.
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6. Disease and Pest Control

The Contractor shall regularly inspect all landscaped areas for the presence of disease, snail, insect or rodent infestation. Contractor shall identify and treat to eradicate and/or control plant and turf pests and diseases as necessary to provide a healthy and safe environment for plants and the public. The Contractor shall implement control measures, exercising extreme caution in the application of all spray materials, dusts, or other materials utilized.

All work involving the use of chemicals will be accomplished by a State of California licensed pest control operator. All chemicals requiring a special permit for use must be registered by the Contractor with the Council Agricultural Commissioner’s Office, and Contractor must provide a copy of the permit to the Public Works Department prior to use.

7. Pesticides and Chemicals

Contractor shall submit a list of all chemical herbicides, pesticides, and rodenticides proposed for use under this contract to the Public Works Department for approval. Materials included on this list shall be limited to the chemicals approved by the State of California Department of Food and Agriculture and shall include the exact brand name and generic formulation. The use of any chemical on the list shall be based on the recommendation o f a licensed pest control advisor when required by law.

8. Turf Maintenance

Turf maintenance shall be as follows:

1. Frequency of mowing is specified on Page-8 of Section 13, Facility Specific Maintenance. Turf grass mowing heights will be determined by the City Representative.

2. All turf and hardscape areas shall be free of turf clippings, thatch, plant debris, and trash at the end of each activity.

3. Mechanically trim around sprinklers as needed to provide proper and unobstructed irrigation.

4. Trimming of turf grass shall be performed along walls, and around valve boxes, water meter boxes, backflow devices, trees, shrubs, or any structures located within the turf grass area.

5. Equipment must be sharp and properly adjusted to avoid damage to the turf plant. The blade should provide uniform, level cut without ridges, depressions, or scalping.

5. Care shall be exercised to avoid depressions in the established grade from mowing when the soil is saturated.

7. All turf grass adjacent to sidewalks, curbs, mowing strips, shrub beds, and where no improved surface exists, shall be edged in a neat uniform line.

8. All t urf grass shall be fertilized twice a year to provide healthy growing turf grass with horticulturally acceptable growth and color, as determined by the Public Works Department.

Contractor shall include any costs incurred in purchasing and applying fertilizers in their bid price on the proposal price sheet.

9. Fertilization shall be performed with a balanced fertilizer at one (1) pound actual Nitrogen per 1,000 square feet of area.

10. Contractor shall immediately irrigate after each fertilizer application. All fertilizer application shall be performed with properly calibrated equipment to provide a uniform application. 160
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11. Turfgrass/grass renovation will be scheduled between the City and Contractor.

12. Turf renovation shall consist of aerating, verticutting, thatch removal and overseeding.

Contractor shall provide equipment for annual turfgrass renovation that is able to contain and prevent dust particles from becoming airborne.

13. Overseeding shall be performed within two (2) days after verticutting with properly calibrated seeders.

14. Reseeding of bare spots shall be performed continually throughout the year to re-establish turf to an acceptable quality. Reseeding shall be performed with a certified tur grass seed similar to the establish turf at a rate of eight (8) pounds actual Nitrogen per 1,000 square feet.

9. Ground Cover Maintenance

For the purposes of these specifications, ground cover are low growing plants that grow in colonies to form a solid mat over the surface of the ground. The plan t give flat or two- dimensional effect to the landscape.

Contractor shall be responsible for edging, trimming, cultivation, renovation, planting, fertilization, and irrigation of ground cover areas.

10. Shrub Maintenance

Contractor shall be responsible for pruning, fertilizing and the irrigation of shrubs.

1. Contractor shall continuously prune all shrubs to maintain the size and shape specified by the City Representative. Pruning shall be accomplished to maintain “natural” appearance and to prevent encroachment of passageways, walks, streets and view of signs. Decorative, poodle cuts or other unnatural pruning will NOT be permitted. Contractor shall restrict growth, through pruning, to maintain visibility and optimum irrigation coverage.

2. Shrubs shall be pruned with sharp pruning tools. All clippings shall be removed the same day shrubbery is pruned and prior to vacating the site. Care should include soil build-up prevention around the crown of shrubs.

3. Contractor shall remove dead shrubs and backfill to existing grade with imported clean Class “A” soil as necessary to maintain a consistent finished grade. The replacement of shrubs will be in accordance with the Extra Work Unit Cost sheet. All shrub shall be guaranteed to live and remain in healthy conditions for no less than six (6) months from the date of installation, inspections and verification by the Public Works Department.

4. Shrubs shall be adequately irrigated to maintain healthy appearances, while minimizing irrigation run-off and overspray.

5. Shrubs shall be fertilized as necessary to maintain horticulturally acceptable health and color.

11. Tree Irrigation

1. All trees in medians shall be adequately irrigated to maintain a healthy appearance. Tree irrigation shall promote deep root growth.

2. Contractor shall pick up tree debris and branches on medians as directed by the City. 161
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12. General Clean-Up Activities and Disposal

1. Contractor is responsible for the haul away of all trash and accumulated debris from the work site. All cuttings, weeds, leaves, trash, and other debris generated during operations must be hauled away and properly disposed of each day as work progresses.

2. Contractor must clean walkways, sidewalks, and curb and gutter areas immediately following mowing and edging. All walkway cracks and expansion joints shall be maintained weed and grass free.

3. Contractor shall be responsible for recycling all green waste generated from the contract performance. Contractor shall dispose of green waste in a manner approved by the City.

4. Contractor shall comply with Best Management Practices requirements as specified by the County of Los Angeles and regional agencies. The Contractor shall not allow and shall prevent any non-stormwater discharge into the storm drain system. At a minimum, the Contractor shall implement the best management practices as well as review those that may also be applicable to the Contractor’s work.

13. Facility Specific Maintenance

Civic Center (City Hall/Police Department/Bell Library/George Bell House):

1. Raking, sweeping, blowing, shoveling, removal of landscape debris, leaves and litter from turf/planters/tree wells/ground coverage/walkways/parking lots/etc.

o Litter/landscape debris shall be removed weekly, 1 day per week, regardless of holidays

2. Irrigation
o Repairs (when noticeable or requested by City Representative) o Inspections/tests (monthly)
o Water time adjustments (when requested by City Representative)

3. Shrub/ground coverage care/trim/maintenance (weekly)

4. Replant shrubs/ground coverage as needed. Plants to be procured by contractor .

5. Weed control
o Manual removal from planters/tree wells/walkways/etc., (weekly) o Spray treatment twice (2) per year (on or before September 30th and following the rainy season after May 1st)
o Mulching as needed

6. Mow/edge turf
o All turf areas shall be mowed, trimmed, and edged no less than once (weekly). o A. Mowing shall include cutting all grass to a minimum height of 2.5” and a maximum height of 3 inches.
o Uneven cuts, scalping, and varying heights of turf areas will be considered unsatisfactory to City
o standards.
o Mechanical edging along all walkways and curbing.
o Trimming around and underneath all fixed structures (tables, benches, posts, trees, play equipment, etc.).
o Grass clippings shall be collected and removed to a refuse container if they do not disburse evenly over turf area or the City designates the grass clippings as unsightly. 162
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7. Fertilization (twice per year)
o Shrubs: October and May
o Ground coverage: Between April and August
o Turf: Between February – April; September - November

8. Turf aeration shall occur twice (2) per year (April and October)

9. DG or mulching of planters/tree wells/etc.
o Mulch: Inspect bi-weekly to determine the addition of mulch o D.G: Inspect bi-weekly to determine the addition of D.G.

Bell Community Center:

1. Raking, sweeping, blowing, shoveling, removal of landscape debris, leaves and litter from turf/planters/tree wells/ground coverage/walkways/parking lots/etc.

o Litter/landscape debris shall be removed weekly, 1 day per week, regardless of holidays

2. Irrigation
o Repairs (when noticeable or requested by City Representative) o Inspections/tests (monthly)
o Water time adjustments (when requested by City Representative)

3. Shrub/ground coverage care/trim/maintenance (weekly)

4. Replant shrubs/ground coverage as needed. Plants to be procured by contractor .

5. Weed control
o Manual removal from planters/tree wells/walkways/etc., (weekly) o Spray treatment twice (2) per year (on or before September 30th and following the raining season after May 1st)
o Mulching as needed

6. Mow/edge turf
• All turf areas shall be mowed, trimmed, and edged no less than once (weekly). • A. Mowing shall include cutting all grass to a minimum height of 2.5” and a maximum height of 3 inches.
• Uneven cuts, scalping, and varying heights of turf areas will be considered unsatisfactory to City
• standards.
• Mechanical edging along all walkways and curbing.
• Trimming around and underneath all fixed structures (tables, benches, posts, trees, play • equipment, etc.).
• Grass clippings shall be collected and removed to a refuse container if they do not disburse evenly over turf area or the City designates the grass clippings as unsightly.

7. Fertilization (twice per year)
o Shrubs: October and May
o Ground coverage: Between April and August
o Turf: Between February – April; September - November

8. Turf aeration shall occur twice per year. April and October)

9. DG or mulching of planters/tree wells
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o Mulch: Inspect bi-weekly to determine the addition of mulch o D.G: Inspect bi-weekly to determine the addition of D.G.

Treder Park

1. Raking, sweeping, blowing, shoveling, removal of landscape debris, leaves and litter from turf/planters/tree wells/ground coverage/walkways/parking lots/etc.

o Litter/landscape debris shall be removed weekly, 1 day per week, regardless of holidays

2. Irrigation
o Repairs (when noticeable or requested by City Representative) o Inspections/tests (monthly)
o Water time adjustments (when requested by City Representative)

3. Shrub/ground coverage care/trim/maintenance (weekly)

4. Replant shrubs/ground coverage as needed. Plants to be procured by contracto r.

5. Weed control
o Manual removal from planters/tree wells/walkways/etc as needed o Spray treatment twice (2) per year (on or before September 30th and following the raining season after May 1st)
o Mulching as needed

6. Mow/edge turf
• All turf areas shall be mowed, trimmed, and edged no less than once (weekly). • Mowing shall include cutting all grass to a minimum height of 2.5” and a maximum height of 3 inches.
• Uneven cuts, scalping, and varying heights of turf areas will be considered unsatisfactory to City standards.
• Mechanical edging along all walkways and curbing.
• Trimming around and underneath all fixed structures (tables, benches, posts, trees, play equipment, etc.).
• Grass clippings shall be collected and removed to a refuse container if they do not disburse evenly over turf area or the City designates the grass clippings as unsightly.

7. Fertilization (twice per year)
o Shrubs: October and May
o Ground coverage: Between April and August
o Turf: Between February – April; September - November

8. Turf aeration shall occur twice per year. April and October)

9. DG or mulching of planters/tree wells/etc.
o Mulch: Inspect bi-weekly to determine the addition of mulch o D.G: Inspect bi-weekly to determine the addition of D.G.

Bell Technology Center/Futsal Park:

1. Raking, sweeping, blowing, shoveling, removal of landscape debris, leaves and litter from turf/planters/tree wells/ground coverage/walkways/parking lots/etc.

o Litter/landscape debris shall be removed weekly, 1 day per week, regardless of holidays 164
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2. Irrigation
o Repairs (when noticeable or requested by City Representative) o Inspections/tests (monthly)
o Water time adjustments (when requested by City Representative)

3. Shrub/ground coverage care/trim/maintenance (weekly)

4. Replant shrubs/ground coverage as needed. Plants to be procured by contractor .

6. Fertilization (twice per year)
o Shrubs: October and May
o Ground coverage: Between April and August

7. DG or mulching of planters/tree wells/etc.
o Mulch: Inspect bi-weekly to determine the addition of mulch o D.G: Inspect bi-weekly to determine the addition of D.G.

Nueva Vista Parking Lot:

1. Raking, sweeping, blowing, shoveling, removal of landscape debris, leaves and litter from turf/planters/tree wells/ground coverage/walkways/parking lots/etc.

o Litter/landscape debris shall be removed weekly, 1 day per week, regardless of holidays

2. Irrigation
o Repairs (when noticeable or requested by City Representative) o Inspections/tests (monthly)
o Water time adjustments (when requested by City Representative)

3. Shrub/ground coverage care/trim/maintenance (weekly)

4. Replant shrubs/ground coverage as needed. Plants to be procured by contractor .

6. Fertilization (Twice per year)
o Shrubs: October and May
o Ground coverage: Between April and August

7. DG or mulching of planters/tree wells/etc.
o Mulch: Inspect bi-weekly to determine the addition of mulch o D.G: Inspect bi-weekly to determine the addition of D.G.

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Ernest Debs Park:

1. Raking, sweeping, blowing, shoveling, removal of landscape debris, leaves and litter from turf/planters/tree wells/ground coverage/walkways/parking lots/etc.

o Litter/landscape debris shall be removed weekly, 1 day per week, regardless of holidays

2. Irrigation
o Repairs (when noticeable or requested by City Representative) o Inspections/tests (monthly)
o Water time adjustments (when requested by City Representative)

3. Shrub/ground coverage care/trim/maintenance (weekly)

4. Replant shrubs/ground coverage as needed. Plants to be procured by contractor

6. Fertilization (twice per year)
o Shrubs: October and May
o Ground coverage: Between April and August

7. DG or mulching of planters/tree wells/etc.
o Mulch: Inspect bi-weekly to determine the addition of mulch o D.G: Inspect bi-weekly to determine the addition of D.G.

Camp Little Bear Park:

1. Raking, sweeping, blowing, shoveling, removal of landscape debris, leaves and litter from turf/planters/tree wells/ground coverage/walkways/parking lots/etc.

o Litter/landscape debris shall be removed weekly, 1 day per week, regardless of holidays

2. Irrigation
o Repairs (when noticeable or requested by City Representative) o Inspections/tests (monthly)
o Water time adjustments (when requested by City Representative)

3. Shrub/ground coverage care/trim/maintenance (weekly)

4. Replant shrubs/ground coverage as needed. Plants to be procured by contractor .

6. Fertilization (once per year)
o Shrubs: October and May
o Ground coverage: Between April and August
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7. DG or mulching of planters/tree wells/etc
o Mulch: Inspect bi-weekly to determine the addition of mulch o D.G: Inspect bi-weekly to determine the addition of D.G.

Bianchi Park:

1. Raking, sweeping, blowing, shoveling, removal of landscape debris, leaves and litter from turf/planters/tree wells/ground coverage/walkways/parking lots/etc.

o Litter/landscape debris shall be removed weekly, 3 days per week, regardless of holidays

2. Irrigation
o Repairs (when noticeable or requested by City Representative) o Inspections/tests (monthly)
o Water time adjustments (when requested by City Representative)

3. Shrub/ground coverage care/trim/maintenance (weekly)

4. Replant shrubs/ground coverage as needed. Plants to be procured by contractor

6. Mow/edge turf
• All turf areas shall be mowed, trimmed, and edged no less than (weekly). • Mowing shall include cutting all grass to a minimum height of 2.5” and a maximum height of 3 inches. Uneven cuts, scalping, and varying heights of turf areas will be considered unsatisfactory to City standards.
• Mechanical edging along all walkways and curbing.
• Trimming around and underneath all fixed structures (tables, benches, posts, trees, play equipment, etc.).
• Grass clippings shall be collected and removed to a refuse container if they do not • disburse evenly over turf area or the City designates the grass clippings as unsightly.

7. Fertilization (twice per year)
o Shrubs: October and May
o Ground coverage: Between April and August
o Turf: Between February – April; September - November

8. Turf aeration shall occur twice per year (April and October)

9. DG or mulching of planters/tree wells/etc.
o Mulch: Inspect bi-weekly to determine the addition of mulch o D.G: Inspect bi-weekly to determine the addition of D.G.

Veteran’s Memorial Park:

1. Raking, sweeping, blowing, shoveling, removal of landscape debris, leaves and litter from turf/planters/tree wells/ground coverage/walkways/parking lots/etc.

o Litter/landscape debris shall be removed weekly, 1 day per week, regardless of holidays

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2. Irrigation
o Repairs (when noticeable or requested by City Representative) o Inspections/tests (monthly)
o Water time adjustments (when requested by City Representative)

3. Shrub/ground coverage care/trim/maintenance (weekly)

4. Replant shrubs/ground coverage as needed. Plants to be procured by contractor

6. Mow/edge turf
o All turf areas shall be mowed, trimmed, and edged no less than once (weekly). o Mowing shall include cutting all grass to a minimum height of 2.5” and a maximum height of 3 inches . Uneven cuts, scalping, and varying heights of turf areas will be considered unsatisfactory to City standards.
o Mechanical edging along all walkways and curbing.
o Trimming around and underneath all fixed structures (tables, benches, posts, trees, play equipment, etc.).
o Grass clippings shall be collected and removed to a refuse container if they do not o disburse evenly over turf area or the City designates the grass clippings as unsightly.

7. Fertilization (twice per year)
o Shrubs: October and May
o Ground coverage: Between April and August
o Turf: Between February – April; September - November

8. Turf aeration shall occur twice per year (April and October)

9. DG or mulching of planters/tree wells/etc.
o Mulch: Inspect bi-weekly to determine the addition of mulch o D.G: Inspect bi-weekly to determine the addition of D.G.

Pritchard Field Park:

1. Raking, sweeping, blowing, shoveling, removal of landscape debris, leaves and litter from turf/planters/tree wells/ground coverage/walkways/parking lots/etc.

o Litter/landscape debris shall be removed weekly, 1 days per week, regardless of holidays

2. Irrigation
o Repairs (when noticeable or requested by City Representative) o Inspections/tests (monthly)
o Water time adjustments (when requested by City Representative)

3. Shrub/ground coverage care/trim/maintenance (weekly)

4. Replant shrubs/ground coverage as needed. Plants to be procured by contractor

o Mulching as needed

7. Fertilization (twice per year)
o Shrubs: October and May
o Ground coverage: Between April and August
o Turf: Between February – April; September – November

8. Turf aeration shall occur two (2) times per year (April and October)

9. G or mulching of planters/tree wells/etc.
o Mulch: Inspect bi-weekly to determine the addition of mulch o D.G: Inspect bi-weekly to determine the addition of D.G.

Otis Ave/Wilcox Ave/Carmalita Avenue Traffic Islands:

1. Raking, sweeping, blowing, shoveling, removal of landscape debris, leaves and litter from turf/planters/tree wells/ground coverage/walkways/parking lots/etc.

o Litter/landscape debris shall be removed weekly, 1 days per week, regardless of holidays

2. Irrigation
o Repairs (when noticeable or requested by City Representative) o Inspections/tests (monthly)
o Water time adjustments (when requested by City Representative)

3. Shrub/ground coverage care/trim/maintenance (weekly)

4. Replant shrubs/ground coverage as needed. Plants to be procured by contractor

o disburse evenly over turf area or the City designates the grass clippings as unsightly.

7. Fertilization (twice per year)
o Shrubs: October and May
o Ground coverage: Between April and August
o Turf: Between February – April; September – November

8. Turf aeration shall occur twice per year (April and October)

9. DG or mulching of planters/tree wells/etc.
o Mulch: Inspect bi-weekly to determine the addition of mulch o D.G: Inspect bi-weekly to determine the addition of D.G.

River Drive Walkway Slope (Los Angeles River Slope):

1. Raking, sweeping, blowing, shoveling, removal of landscape debris, leaves and litter from easement grounds (quarterly or every three (3) months per calendar year).

2. Shrub/ground coverage care/trim/maintenance (quarterly or every three (3) months per calendar year)

3. Weed control
o Manual removal (quarterly or every three (3) months per calendar year) o Spray treatment twice (2) per year (on or before September 30th and following the raining season after May 1st)

4. Clear overgrown foliage/grasses (quarterly or every three (3) months per calendar year)

Randolph Street Burlington Northern and Santa Fe Railway (BNSF) Right-of-Away (ROW)

1. Raking, sweeping, blowing, shoveling, removal of landscape debris, leaves and litter from easement grounds (quarterly or every three (3) months per calendar year).

2. Weed control
o Manual removal (quarterly or every three (3) months per calendar year) o Spray treatment twice (2) per year (on or before September 30th and following the raining season after May 1st)

3. Clear overgrown foliage/grasses (quarterly or every three (3) months per calendar year)

Salt Lake Avenue Union Pacific ROW:

1. Raking, sweeping, blowing, shoveling, removal of landscape debris, leaves and litter from easement grounds (quarterly or every three (3) months per calendar year).

3. Clear overgrown foliage/grasses (quarterly or every three (3) months per calendar year)

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Florence Avenue Median:

1. Raking, sweeping, blowing, shoveling, removal of landscape debris, leaves and litter from turf/planters/tree wells/ground coverage/walkways/parking lots/etc.

o Litter/landscape debris shall be removed weekly, 1 day per week, regardless of holidays

2. Irrigation
o Repairs (when noticeable or requested by City Representative) o Inspections/tests (monthly)
o Water time adjustments (when requested by City Representative)

3. Shrub/ground coverage care/trim/maintenance (weekly)

4. Replant shrubs/ground coverage as needed. Plants to be procured by contractor

6. Fertilization (twice per year)
o Shrubs: October and May
o Ground coverage: Between April and August
o Turf: Between February – April; September – November

7. DG or mulching of planters/tree wells/etc.
o Mulch: Inspect bi-weekly to determine the addition of mulch o D.G: Inspect bi-weekly to determine the addition of D.G.

Florence Avenue Bulb-Out Planters:

1. Raking, sweeping, blowing, shoveling, removal of landscape debris, leaves and litter from turf/planters/tree wells/ground coverage/walkways/parking lots/etc.

o Litter/landscape debris shall be removed weekly, 1 days per week, regardless of holidays

2. Irrigation
o Repairs (when noticeable or requested by City Representative) o Inspections/tests (monthly)
o Water time adjustments (when requested by City Representative)

3. Shrub/ground coverage care/trim/maintenance (weekly)

4. Replant shrubs/ground coverage as needed. Plants to be procured by contractor

6. Fertilization (twice per year)
o Shrubs: October and May
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o Ground coverage: Between April and August
o Turf: Between February – April; September – November

7. DG or mulching of planters/tree wells/etc.
o Mulch: Inspect bi-weekly to determine the addition of mulch o D.G: Inspect bi-weekly to determine the addition of D.G.

Atlantic Avenue Medians:

1. Raking, sweeping, blowing, shoveling, removal of landscape debris, leaves and litter from turf/planters/tree wells/ground coverage/walkways/parking lots/etc.

o Litter/landscape debris shall be removed weekly, 1 day per week, regardless of holidays

2. Irrigation
o Repairs (when noticeable or requested by City Representative) o Inspections/tests (monthly)
o Water time adjustments (when requested by City Representative)

3. Shrub/ground coverage care/trim/maintenance (weekly)

4. Replant shrubs/ground coverage as needed. Plants to be procured by contractor .

6. Fertilization (twice per year)
o Shrubs: October and May
o Ground coverage: Between April and August

7. DG or mulching of planters/tree wells/etc.
o Mulch: Inspect bi-weekly to determine the addition of mulch o D.G: Inspect bi-weekly to determine the addition of D.G.

Bandini Avenue Medians:

1. Raking, sweeping, blowing, shoveling, removal of landscape debris, leaves and litter from turf/planters/tree wells/ground coverage/walkways/parking lots/etc.

o Litter/landscape debris shall be removed weekly, 1 day per week, regardless of holidays

2. Irrigation
o Repairs (when noticeable or requested by City Representative) o Inspections/tests (monthly)
o Water time adjustments (when requested by City Representative)

3. Shrub/ground coverage care/trim/maintenance (weekly)

4. Replant shrubs/ground coverage as needed. Plants to be procured by contractor

5. Weed control
o Manual removal from planters/tree wells/walkways/etc., (weekly) 172
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o Spray treatment twice (2) per year (on or before September 30th and following the raining season after May 1st)
o Mulching as needed

6. Slow-release Fertilization (once per year)
o Shrubs: October and May
o Ground coverage: Between April and August

7. DG or mulching of planters/tree wells/etc.
o Mulch: Inspect bi-weekly to determine the addition of mulch o D.G: Inspect bi-weekly to determine the addition of D.G.

Eastern Avenue Medians:

1. Raking, sweeping, blowing, shoveling, removal of landscape debris, leaves and litter from turf/planters/tree wells/ground coverage/walkways/parking lots/etc.

o Litter/landscape debris shall be removed weekly, 1 day per week, regardless of holidays

2. Irrigation
o Repairs (when noticeable or requested by City Representative) o Inspections/tests (monthly)
o Water time adjustments (when requested by City Representative)

3. Shrub/ground coverage care/trim/maintenance (weekly)

4. Replant shrubs/ground coverage as needed. Plants to be procured by contractor

6. Fertilization (twice per year)
o Shrubs: October and May
o Ground coverage: Between April and August

7. DG or mulching of planters/tree wells/etc.
o Mulch: Inspect bi-weekly to determine the addition of mulch o D.G: Inspect bi-weekly to determine the addition of D.G.

North and South Gage Avenue Slope:

1. Raking, sweeping, blowing, shoveling, removal of landscape debris, leaves and litter from easement grounds (First week of every calendar month)

2. Irrigation
o Repairs/inspections (monthly)
o Water time adjustments (when requested by Public Works Manager or Public Works Field Supervisor)

3. Shrub/ground coverage care/trim/maintenance (weekly)

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4. Weed control
o Manual removal (weekly)
o Spray treatment twice (2) per year (on or before September 30th and following the raining season after May 1st)
o Mulching as needed

5. Clear overgrown foliage/grasses (First week of every calendar month)

6. Fertilization (twice per year)
o Shrubs: October and May
o Ground coverage: Between April and August

North & South Florence Avenue Slope:

1. Raking, sweeping, blowing, shoveling, removal of landscape debris, leaves and litter from easement grounds (First week of every calendar month)

2. Irrigation
o Repairs/inspections (weekly)
o Water time adjustments (when requested by Public Works Manager or Public Works Field Supervisor)

3. Shrub/ground coverage care/trim/maintenance (weekly)

4. Weed control
o Manual removal (weekly)
o Spray treatment twice (2) per year (on or before September 30th and following the raining season after May 1st)
o Mulching as needed

5. Clear overgrown foliage/grasses (First week of every calendar month)

6. Fertilization (twice per year)
o Shrubs: October and May
o Ground coverage: Between April and August

14. Reports and Schedules

Contractor shall submit reports and schedules to the City as outlined below. Failure to submit any such reports or schedules in a timely manner may result in a charge or deduction to the Contractor, pursuant to the Agreement. Such reports and schedules must be detailed and thorough and shall include, but not be limited to, the following:

• Suggestions for improving problem areas.
• A description and location of dumping of non-stormwater (not rain) discharges. • Reports of work and or improvements planned.
• Monthly Maintenance Schedule(s) in a weekly time format. • Pesticide Use Reports (submitted monthly).
• Accident Reports (submitted immediately).
• Incident Reports (submitted monthly).
• Hazard Reports (reported immediately, forms submitted monthly).

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15. Quality Level / Corrective Work

The Contractor shall perform scope of services contained herein to the satisfaction of the City representative. The City representative may make inspections at any time and request corrective work from the Contractor. If corrective work is required, the City will provide a written list of items or instructions to the Contractor. The Contractor shall correct deficiencies within seven (7) calendar days on any landscape maintenance. If deficiencies are not corrected, the City will deduct from the Contractor’s payment, pro rata, those applicable portions of the monthly Agreement sum. Repeated failures to provide services at the Standards and Specifications stated herein, or failure to respond to requests for corrective work will result in termination of the Agreement.

For any site that fails to meet City standards as result of some action that is the Contractor’s responsibility, the Contractor is to notify the City immediately and develop a plan to bring the site back to compliance. Should the City notice a site(s) that does not meet City standards and the City has not been notified by the Contractor, the Contractor will be put on notice in writing to bring the site back into compliance. The City reserves the right to impose the following penalty:

• The monthly payment for the specific site(s) will be withheld by the City until the site is back in conformance with City standards.
• If conformance is reached within ( 7) days of notice, the City will release one hundred percent (100%) of the payment.

If the City has to notify the Contractor a second time about the same site within twelve (12) months of the initial notice, the following penalty will occur:

• The City will withhold the monthly payment for the site. If the conformance is reached within 7 days of notice by the City, the City will release ninety percent (90%) of the payment and withheld ten percent (10%) as a penalty.

If at any time during a notice by the City, the Contractor does not bring the site into conformance within seven (7) days, the following penalty will occur:

• The City will withhold twenty percent (20%) of the monthly payment of the full Agreement as a penalty and withhold the next month’s payment following the above -mentioned conditions until conformance is reached or the Contract is terminated.

• The parties will observe the following problem resolution process:

1. Written notice of the problem.

2. Field conference with the Contractor/or Contractor representative to identify the problem and agree on a solution as presented by the Contractor.

3. Conference between the City’s representative and the Contractor’s principal.

4. Imposition of penalties and/or correcting defect at Contractor’s cost.

5. Termination of the Agreement.

During the first two (2) months of the Contract, the Contractor will receive one hundred percent (100%) of the monthly Contract amount. During this period, Contractor will inspect the sites at least monthly and will discuss inspections with City. This proc ess and time frame will allow for the Contractor to understand the site issues enough to proceed.

16. Landscape Maintenance Performance Measures
Based on California Landscape Contractors Association (CLCA) Best Management Practices (BMPs)
The following performance standards shall apply to all landscape maintenance services 175
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provided under this contract. These standards are intended to ensure consistent quality, safety, and environmental compliance across all service areas.

Site Inspection and Incident Reporting
• Contractor shall inspect 100% of service locations during each scheduled maintenance visit. • Hazardous or abnormal conditions (e.g., broken irrigation components, unsafe walkways, vandalism) shall be reported to the City Representative within one (1) hour of discovery. • Contractor shall submit weekly inspection reports, including date, time, site location, inspector name, and observations.

Vegetation Management
a. Weeding, Cultivation, and Brush Control
• Landscaped areas shall not exceed 5% weed coverage per 100 square feet. • Weed control shall follow Integrated Pest Management (IPM) practices. • All chemical applications must be documented and submitted monthly, including product name, quantity, application area, and date.
b. Fertilization
• Fertilization shall follow a seasonal schedule based on plant material needs (e.g., spring and fall for turf).
• Application rates shall not exceed manufacturer recommendations and shall prevent runoff into storm drains.
• Records of product type, application rate, and date must be maintained and made available upon request.
c. Pruning of Shrubs and Groundcovers
• Plant materials shall be maintained in their natural form with required clearances:
o 14 feet vertical clearance over roadways
o 8 feet vertical clearance over sidewalks
• All pruning debris shall be removed from the site on the day of service. • Pruning shall occur at least quarterly or as specified by the City.

Irrigation System Management
• Contractor shall inspect and adjust all irrigation systems monthly during the growing season. • All irrigation repairs shall be completed within three (3) business days of detection. • Monthly irrigation reports shall be submitted and include controller settings, watering adjustments, and completed repairs.

Pesticide and Rodent Control
• Pesticide applications shall only be performed by individuals licensed in accordance with California Department of Pesticide Regulation (DPR) requirements. • A pest control log must be maintained and include target pest, product used, quantity, applicator license number, and location.
• Rodent bait stations shall be inspected and serviced bi-weekly; all stations must be secured and replaced as necessary.

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Turf Maintenance
a. Mowing, Verticutting, and Aeration
• Turf areas shall be mowed to a height of 2.5–3 inches weekly during the growing season and as needed otherwise.
• Verticutting and aeration shall occur at least twice annually or as needed based on soil conditions.
• Clippings shall be removed or mulched; no clippings shall remain on hardscape areas. b. Dethatching
• Dethatching shall occur annually, preferably in early spring or fall. • Thatch shall not exceed ½ inch in thickness.

Cleanliness and Site Safety
a. Litter and Refuse Removal
• All serviced areas shall be free of litter and debris upon completion of maintenance activities.
• Waste shall be removed and disposed of in accordance with municipal regulations on the same day as service.
b. Hardscape Cleaning
• Hardscape surfaces, including pathways, plazas, and curbs, shall be cleaned weekly (e.g., swept, blown, or washed) to remove debris, stains, and plant material. • Graffiti shall be reported to the City within 24 hours.

Damage Responsibility and Vehicle Safety
• Any damage caused by Contractor personnel or equipment shall be reported to the City within 24 hours.
• All such damage shall be repaired or reimbursed within five (5) business days. • Vehicles and equipment must be parked legally and shall not obstruct pedestrian or vehicular access.
• There shall be zero (0) incidents of safety violations involving vehicle or equipment placement.

Work Schedule Compliance
• All routine maintenance shall occur between 7:00 a.m. and 4:30 p.m., Monday through Friday, excluding City holidays, unless otherwise approved in writing by the City. • Contractor shall adjust schedules during holiday weeks to maintain consistent service delivery.
• Weekly work logs shall be submitted and include service locations, crew names, and time on site.

Personnel and Equipment Standards
• All personnel shall wear uniforms and display visible identification badges during work hours. • All equipment shall be maintained in clean, safe, and fully operational condition and inspected weekly.
177
P-24

• Equipment noise levels shall comply with applicable local and state regulations, particularly near residential properties.

17. Landscape Square Footage
• Veterans Memorial Park
6500 Wilcox Avenue
(lot size: 146,320 SF)
Turf - 63,000 SF

178
P-25

• Bianchini Park
4501 E. Gage Avenue
Turf - 8,600 SF

179
P-26

• Civic Center (City Hall, Police Department, Bell Library, & George Bell House) 6330 Pine Avenue
(lot size: 100,365 SF)
Turf - 14,900 SF

180
P-27

• Treder Park
6250 Pine Avenue
(lot size: 73,045 SF)
Turf – 42,900

181
P-28

• Bell Community Center
6250 Pine Avenue
(lot size: 23,900 SF)
Turf - 1,600 Sf

182
P-29

• Ernest Debs Park
3700 Gage Avenue
89,500 SF (no turf)

183
P-30

• Camp Little Bear Park & Resort
6704 Orchard Avenue
59,600 sqft (no turf)

184
P-31

• Pritchard Field Park
7010 Walker Ave
70,000 SF

185
P-32

• Bell Technology Center/Futsal Park
4375 Gage Avenue
38,400 SF (no turf)

186
P-33

• Nueva Vista Parking Lot
6255 Pine Avenue
29,960 sqft (no turf)

187
P-34

• North and South Florence Avenue Slopes
6255 Pine Avenue
North – 18,500 SF
South – 11,200 SF

188
P-35

• Florence Avenue Medians (total: 3,450 SF)
East of Walker Avenue – 1,350 sqft

West of Walker Avenue - 1,450 sqft

189
P-36

West of Bear Avenue – 650 sqft

• Florence Avenue Bulb-out Planters (total: 3,975 SF)

1. 5025 Florence Avenue – 350 SF

190
P-37

2. 5017 Florence Avenue – 1,115 SF

3. 4900 Florence Avenue – 260 SF

191
P-38

4. Florence Avenue @ Mayflower Avenue – 375 SF

192
P-39

5. 4707 Florence Avenue – 50 SF

6. 4612 Florence Avenue – 200 SF

193
P-40

7. Florence Avenue @ King Avenue – 140 SF

8. Florence Avenue @ Woodward Avenue – 420 SF

194
P-41

9. 4335 Florence Avenue – 395 SF

10. 4215 Florence Avenue – 80 SF

195
P-42

11. 4001 Florence Avenue – 380 SF

12. 3906 Florence Avenue – 210 SF

196
P-43

• Atlantic Avenue Center Medians (total: 21,840 SF)

1. 7062 Atlantic Avenue – 1,630 SF

197
P-44

2. 7004 Atlantic Avenue – 1,365 SF

198
P-45

3. 6902 Atlantic Avenue – 3,200 SF

199
P-46

4. 6712 Atlantic Avenue – 1,780 SF

5. 6624 Atlantic Avenue – 2,475 SF

200
P-47

6. 6510 Atlantic Avenue – 4,435 SF

201
P-48

7. 6322 Atlantic Avenue – 2,340 SF

202
P-49

8. 6239 Atlantic Avenue – 4,615 SF

203
P-50

• Traffic Islands (total: 4,750 SF)

1. Otis Avenue @ Gage Avenue – 1,625 SF

2. Wilcox Avenue @ Gage Avenue – 1,890 SF

204
P-51

3. Carmelita Avenue @ Randolph Street – 1,235 SF

• Salt Lake Avenue – Burlington Northern Santa Fe (BNSF) Right-of-way 146,370 SF

205
P-52

• Randolph Street – Union Pacific (UP) Right-of-way
594,750 SF

206
P-53

207
P-54

208
P-55

• River Drive Walkway Slope (total: 92,762 SF)

1. Randolph St to Gage Avenue – 9,012 SF

209
P-56

2. Gage Avenue to Florence Avenue – 74,030 SF

210
P-57

3. Florence Avenue to Live Oak Street – 9,720 SF

211
P-58

• North & South Gage Avenue Slopes

1. (North) 5217 Gage Avenue to 5327 Gage Avenue – 10,340 SF

2. (South) 5216 Gage Avenue to 5320 Gage Avenue – 12,645 SF

• Eastern Avenue Medians (total: 10,160 SF)

1. Mansfield Way to Rickenbacker Road – 4,820 SF

212
P-59

2. Rickenbacker Road to Bandini Blvd – 5,340 SF

• Bandini Boulevard Medians (total: 20,520 SF)

1. Eastern Avenue to Wiley Post Road – 1,800 SF

213
P-60

2. Wiley Post Road to Ameila Earhart Way – 12,035

3. Ameila Earhart Way to West of Yeager Way – 6,685 SF

214
ATTACHMENT 1
01135.0006 2013054.2 B-1

EXHIBIT “B”

SPECIAL REQUIREMENTS
(Superseding Contract Boilerplate)
I. Section 4.6 entitled “Local Preference” is hereby added to read in its entirety as follows:

4.6 Local Preference
The City is an economically disadvantaged community with high unemployment and the City in awarding of contracts en courages the contractors to undertake their best efforts to hire locally. To that end, Contractor c ovenants it shall make its best efforts to cause all solicitations for full or part -time, new or replacement, employment relating to the services performed under this Agreement. Best efforts include having a local hiring program approved by the City (“Local Hire Program”) which requires regular reporting requirements necessary for evaluating the compliance with the Local Hire Program. In addition, the Contractor shall: (i) advertise in local newspapers regarding job opportunities, (ii) establish a point of contact to provide information about available job opportunities to the community, (iii) conduct outrea ch efforts to attr act local hires, subcontractors and tradesmen, and (iv) coordinate local hire workshops with the City to educate potential local subcontractors and tradesmen about employment opportunities.”
II. Section 5.4, entitled “Performance Bond” is hereby deleted in its entirety.

III. Section 7.7, entitled "Liquidated Damages” is hereby amended in its entirety to read as follows:

7.7 Complaints: Liquidated Damages
(a) Complaints received by the City or through observation by the Contract Officer, regarding the Contractor’s performance will be transmitted to the Contractor’s office in writing, by telephone or facsimile, and handled by the Contractor. All complaints are t o receive a follow-up response within twenty -four (24) hours following notification of the Contractor. A report of the Contractor’s investigation and the corrective action taken shall be made promptly by the Contractor to the Contractor Officer. Repeat complaints may be handled 215
ATTACHMENT 1
01135.0006 2013054.2 B-2

by a joint visit to the site by a City Inspector and the Contractor. Complaints received directly by the Contractor shall be submitted in writing to the City on the day such complaints are received. Contractor shall maintain a log of complaints received and corrective actions implemented which shall be submitted to the City within ten (10) days following the end of the month. Repeat complaints of poor service quality of similar nature shall be handled in the manner prescribed below. These penalties are prov ided to provide an alternative to Agreement termination for minor performance failures by Contractor. Nothing herein shall waive the right of the City to terminate the Agreement for repeated or material violations of the performance standards.
(b) An initial complaint shall be handled in accordance with the subsection (a) of this Section. (c) When the Contract Officer determines that additional violations of a similar nature have occurred within any 180 calendar day period, a written complaint shall be filed with the Contractor by the City. The written complaint shall include a description of the complaint of the Contractor’s performance and warning that the next complaint will result in the assessment of liquidated damages in the amount of $100 per incident, provided that after the fourth incident in any 180 day period the penalty shall go to $500 per incident. (d) When the Contract Officer determines that a third violation similar in nature as the previous violation has occurred within 180 days of the material violation, a written complaint shall be filed with the Contractor by the City. The written complaint shall include a description of the compliant of the Contractor’s performance, and of the penalty therefore. The Contractor Officer and/or designee shall meet with the Contractor within five (5) working days and develop a written corrective action plan to prevent further occurrence of the problem. The corrective action plan shall be prepared by the Contractor within ten (10) working days after the meeting between the Contract Officer and/or designee and Contractor. The corrective action plan is subject to the approval of the Contract Officer. (e) If repeated violations continue, the City may provide notice of termination in accordance with Article 7.

216
ATTACHMENT 1
C-1
01135.0006 2013054.2
EXHIBIT “C”

SCHEDULE OF COMPENSATION

CITYWIDE LANDSCAPE MAINTENANCE SERVICES

The following prices in the schedule of compensation is to remain fixed for the term of this Agreement. The following prices listed below must include all labor, equipment, fees of any kind, overhead, traffic control, fuel, materials, consumables, surcharges, disposal fees, and any other cost associated with and necessary for the Contractor to complete all landscape maintenance services requested within this RFP.

Item
No.

Description Months Price per
Month
Annual
Amount
City Facilities

1 Maintenance of Civic Center (City Hall/Police
Department/Bell Library/George Bell House in
accordance with SOS on Page 8 of RFP.

12 $1,000.00

$12,000.00

2 Maintenance of Bell Community Center in
accordance with SOS on Page 9 of RFP

12 $450.00

$5,400.00
City Parks

3 Maintenance of Treder Park in accordance
with SOS on Page 10 of RFP

12 $700.00

$8,400.00

4 Maintenance of Bell Technology Center/Futsal
Park in accordance with SOS on Page 10 of RFP

12 $400.00

$4,800.00

5 Maintenance of Ernest Debs Park in
accordance with SOS on Page 12 of RFP

12 $500.00

$6,000.00

6 Maintenance of Camp Little Bear Park in
accordance with SOS on Page 12 of RFP

12 $550.00

$6,600.00

7 Maintenance of Bianchi Park in accordance
with SOS on Page 13 of RFP

12 $300.00

$3,600.00

8 Maintenance of Veteran’s Memorial Park in
accordance with SOS on Page 13 of RFP

12 $1,700.00

$20,400.00

9 Maintenance of Pritchard Field Park in
accordance with SOS on Page 14 of RFP

12 $620.00

$7,440.00
City Parking Lot

10 Maintenance of Nueva Vista Parking Lot in
accordance with SOS on Page 11 of RFP

12 $300.00

$3,600.00
Traffic Islands

11 Maintenance of Otis Ave/Wilcox
Ave/Carmalita Ave Traffic Islands in
accordance with SOS on Page 15 of RFP

12 $100.00

$1,200.00
Slopes

12 Maintenance of River Drive Walkway Slope in
accordance with SOS on Page 16 of RFP

12 $850.00

$10,200.00
217
ATTACHMENT 1
C-2
01135.0006 2013054.2

13 Maintenance of North and South Gage
Avenue Slope in accordance with SOS on

Page 19 ends

Bell City CouncilJune 25, 2025

Bell City Council
June 25, 2025