Agenda packet — Bell Gardens City Council, April 22, 2024 (part 3 of 4)

The reasons for the additional work effort are asfollows:

1. HF&H assisted the City with the preparation and submittal of a Notice of Intent to Comply( NOIC) to Ca|Recyc|e by March 1, 2022, which included a resolution to he approved by City Council. Over the course of the year, the NOIC underwent several reviews and revisions, and meetings with CalRecycle which eventually translated into a Corrective Action Plan ([ AP).

2. Ca| Necyc| e released an updated and restructured version of the Electronic Annual Report ( EAR) on June 15, 2022. The new EAR included new sections pertaining to SB 1383 requirements resulting in additional time to learn the updated report structure and gather and analyze data from various sources in the appropriate format prior tosubmittal.

3. The Organic Waste Capacity Planning report included assessing and researching the[ ky' s capacity for organic waste recycling and edible food recovery perSQ 1383. This new report required gathering additional information from all haulers and synthesizing their data to meet LA County' s June 15, 2022 deadline. HF&H also prepared an implementation schedule response in order for the City to meet the November 3O, 2OJZ deadline as requested byLACounty.

4. Alternative methods for S8 1383 compliance allowed jurisdictions to create and implement waiver process. HF& H assisted the City in creating an & 8 1383 waiver process, waiver verification and communication with haulers for incomplete requests including the creation and maintenance of the waiver tracker form.

5. On September 16, 2022, Governor Newsom signed AB 1857 with an effective date of January 1, 2023.

AB 1857 repeals the provision of AB 939 that allows jurisdictions to count up to 10% of the waste sent tu transformation facilities toward their 5O% diversion requirement. In late December 2022, Athens Services reached out to the City requesting a meeting to discuss the impacts AB 1D57 would have on the commercial sector and potentially not meeting the 40% diversion requirement of the non- exclusive agreement. Athens Services also inquired about asix month ramp up period toonboard customers and continue to include transformation as diversion forthe City. HF&H incurred additional hours for research and preparing and attending meetings to address AB 1857 concerns with City staff and Athens Services.
395Exhibit 2
Managing Tomonow' s Resources Today
Ms. Grisse| Chavez
Rabruary3, 2023

Page 3 ends

6. The budget for contract year I did not include any budget associated with contract negotiations with Athens Services which were assumed to be completed in the prior contract year, however, the Citv' o contract negotiations with Athens Services extended into June of2022. Therefore, a portion of that cost was billed tothe existing budget.

Very truly yours,
HF& H CONSULTANTS, LbC
bithEoet, CIVIC
Senior Vice President
Attachment- February 1' 2D23— May 23, 2U23 Work Plan
396Exhibit 2
February 1, 2023- May 23, 2023 Work Plan
Quarterly Reports Meetings 2 10 20 32
Updated Monthly Reports 15 60 75
Task 2 Hours 2 25 80 107
Tota I Task 2 Fees: 630 $ 4, 475 $ 13, 520 $ 18, 625 I............... ------.................................................................. 3 Le Tptlance Assistancewm
Bi Monthly CAP Review and Response 10 6 16

11...................

Gather Data for CalRecycle requests and complete
CAP report via SharePoint 11 25 36
Task 3 Hours: 21 31 52
Total s: 0 3------- 3Task 8, 9 98....................... 6Reelew Exclusive Hauler Annual Rate Ad ustment
I........... .............

Meet with Athens to discuss contamination fees and
finalize Rate Adjustment Request 4 10 14
Total Task 6 Fees: 1, 260 $ 1, 790 0 $ 3, 050
Total Hours 6 56 ill 173
I. I.- I- 1-. 1. 1- 11,......

J..!
Jo9rly Rate 315 $ 179 $ 169
Total Fees 1, 890 $ 10, 024 $ 18, 759 $ 30, 673
397Exhibit 2

CITY OF BELL GARDENS

OFFICE OF THE CITY MANAGER

AGENDA REPORT

Item 11.

TO:

Honorable Mayor and City Council Members
FROM:

Michael B. O'Kelly, City Manager
BY:

Elizabeth Nava, Director of Recreation and Community Services SUBJECT:

AWARD OF PROFESSIONAL SERVICES AGREEMENT FOR QUARTERLY BROCHURE

SERVICES FOR THE CITY OF BELL GARDENS
DATE:

April 22, 2024
RECOMMENDATION:

It is staff's recommendation that the City Council;

1 .

Adopt the attached resolution, and;
2 .

Authorize the City Manager to execute a Professional Services Agreement for quarterly brochure services with Mike Cabrera Corp. dba InterGraphics Company, for a three-year term with the option of two one-year extensions, subject to City Attorney as to form.

BACKGROUND/DISCUSSION:

On March 19, 2024 the City issued a Request for Proposal ("RFP") for City Quarterly Brochure Services for the City of Bell Gardens. Two proposals were received.

The proposals were reviewed by a staff and evaluated on the proposer’s ability to provide services that meet the requirements set forth in the RFP, relevant experience, as well as service expertise. The RFP also stipulated the City’s desire to enter into a 3-year agreement with the option of two additional one-year terms. Mike Cabrera Corp. dba InterGraphics Company demonstrated a thorough understanding of the City’s needs and has extensive experience providing similar services in South East Los Angeles County municipalities. The annual not-to-exceed cost will be $47,694.90 for a total not-to-exceed cost of $238,475, which includes the three-year term and the optional two one-year extensions.

CONCLUSION:

After a thorough review of proposals, Mike Cabrera Corp. dba InterGraphics Co. successfully demonstrated their understanding, competence, and qualifications for the types of services required in the City Quarterly Brochure RFP. Therefore, it is staff’s recommendation to enter into a Professional Services Agreement with Mike Cabrera Corp. dba InterGraphics Company.

FISCAL IMPACT:

This service will be paid out of and is budgeted for in the City’s General Fund Budget. The total amount of the agreement will not exceed $238,475 for the term of the agreement.

ATTACHMENTS:

Description
398
Exhibit 1 - Resolution No. 2024-26
Exhibit 2- Agreement
APPROVED ELECTRONICALLY BY:

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BEL L

GARDENS, CALIFORNIA, APPROVING A PROFESSIONAL SERVICES

AGREEMENT BY AND BETWEEN THE CITY OF BELL GARDENS AND
MIKE CABRERA CORP. DBA INTERGRAPHICS COMPANY

WHEREAS, the City of Bell Gardens (“City”) requires a qualif ied vendor for brochure production, printing and mailing services for the Recreation and Community Services Department; and

WHEREAS, in accordance with Bell Gardens Municipal Code (“BG MC”) Section

3.04.105, on March 19, 2024, the City released a Re quest for Proposals City Quarterly Brochure (“RFP”); and

WHEREAS, the City received two proposals; and

WHEREAS, after reviewing the proposals, City staff determined that Mike Cabrera Corp. dba InterGraphics Company is qualified to per form the services requested based on its successful track record, expertise and competitive rates; and

WHEREAS, the City desires to enter into an agreement with M ike Cabrera Corp. dba InterGraphics Company for brochure printing ser vices for a three-year term with an optional two one-year extensions.

NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Bell Gardens as follows:

SECTION 1. The City Council of the City of Bell Gardens hereb y finds that the above recitals are true and correct and incorporate them herein by this reference.

SECTION 2. The City Council hereby approves a Professional S ervices Agreement for brochure production, printing and mailing services by and between the City and Mike Cabrera Corp. dba InterGraphics Company, i n a form approved by the City Attorney.

SECTION 3. The City Council hereby authorizes the City Manage r to execute the agreement along with all documents reasonably necessary to effectuate the intent of this Resolution.

SECTION 4. The City Clerk shall attest and certify to the passage and adoption of this Resolution and enter it into the book of origi nal resolutions, and it shall become effective immediately upon its approval.

400Exhibit 1

Resolution No. 2024-26
2 of 3

PASSED, APPROVED, and ADOPTED this 22 nd day of April, 2024.

THE CITY OF BELL GARDENS

Gabriela Gomez, Mayor

APPROVED AS TO FORM: ATTEST:

Stephanie Vasquez Daisy Gomez
City Attorney City Clerk
401Exhibit 1

Resolution No. 2024-26
3 of 3

I, ____________________, City Clerk of the City of Bell Gardens, hereby CERTIFY that City Council Resolution No. ___________was adopted by the Bell Gardens City Council at a regular meeting of the City Council held on ___________________, and was approved and passed by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

402Exhibit 1

1 2024

PROFESSIONAL SERVICES AGREEMENT
(Engagement: City Quarterly Brochure Services)
(Parties: Mike Cabrera Corp. dba InterGraphics Company and City of Bell Gardens)

THIS PROFESSIONAL SERVICES AGREEMENT (hereinafter, “Agreement”) is made and entered into this ______ day of ____________ 2024 (hereinafter, the “Effective Date”) by and between the CITY OF BELL GARDENS , a municipal corporation (hereinafter, “CITY”) and MIKE CABRERA CORP . DBA INTERGRAPHICS COMPANY (hereinafter, “VENDOR”). For the purposes of this Agreement, CITY and VENDOR may be referred to collectively by the capitalized term “Parties.” The capitalized term “Party” may refer to CITY or VENDOR interchangeably, as appropriate.

RECITALS

WHEREAS, CITY requires for brochure production, printing and mailing services for the Recreation and Community Services Department; and

WHEREAS, CITY staff has determined that VENDOR possesses the experience, skills and training necessary to competently provide such services to CITY; and

WHEREAS, the execution of this Agreement was approved by the Bell Gardens City Council at its Regular Meeting on April 22, 2024.

NOW, THEREFORE, for and in consideration of the mutual covenants and conditions herein contained, CITY and VENDOR agree as follows:

ENGAGEMENT TERMS

1.1 TERM: This Agreement shall have a term of three (3) years commencing on April 23, 2024 through April 22, 2027 (hereinafter, the “Term”). Nothing in this Section shall operate to prohibit or otherwise restrict the CITY’s ability to terminate this Agreement at any time for convenience or for cause as provided under Article V (Termination), below. The Term of the Agreement may be extended by the CITY subject to its same terms and conditions for a maximum of two (2) one -year extensions, provided the City Manager issues written notice of its intent to extend the Term of the Agreement prior to the expiration of the initial Term.

1.2 SCOPE OF WORK:

A. Subject to the terms and conditions of this Agreement, VENDOR agrees to provide the services and tasks described in that certain Request for Proposals of CITY entitled “Request for Proposals City Quarterly Brochure” (hereinafter, “CITY RFP”) dated March 19, 2024, and the written proposal of VENDOR entitled “ RFP City Quarterly Brochure” (hereinafter, the “VENDOR PROPOSAL”) dated April 4, 2024 . The CITY RFP and the VENDOR PROPOSAL are attached and incorporated hereto as Exhibit 403Exhibit 2

2 “A” and “B” respectively. The term “Scope of Work” shall be a collective reference to the CITY RFP and the VENDOR PROPOSAL. The capitalized term “Work” shall be a collective reference to all the various services and tasks referenced in the Scope of Work. In the event of any conflict or inconsistency between the provisions of the document enti tled CITY RFP and the provisions of the document entitled VENDOR PROPOSAL, the requirements of the document entitled CITY RFP shall govern and control but only to the extent of the conflict or inconsistency and no further. In the event of any conflict or inconsistency between the provisions of the Scope of Work and the provisions of this Agreement to which the Scope of Work is attached, the provisions of this Agreement shall govern and control.

1.3 PROSECUTION OF WORK:

A. VENDOR shall perform the Work contemplated under this Agreement on an as-needed basis. Nothing in this Agreement shall be construed to grant VENDOR the exclusive right to perform any of the types of services or tasks contemplated under this Agreement nor shall anything in this Agreement be construed to entitle VENDOR to the receipt of any sums under this Agreement, except to the extent CITY requests the performance of any Work in the manner described below and such Work is in fact performed and completed by VENDOR and accepted by CITY. CITY requests for the performance of specific as-needed services or tasks contemplated under this Agreement shall be made in the form of a written work order(s) issued by the City Representative (each such written request hereinafter referred to as a “Task Order”). The standard Task Order form will be provided by the City Representative and shall include the following information:

1. A detailed description of the specific services or tasks requested;

2. The location of where the particular services or tasks are to be performed, if applicable;

3. A not-to-exceed budget for performing the services or tasks;

4. A timeline for completing the requested services or tasks;

5. Any other information CITY deems necessary and relevant to the requested services or tasks; and

6. The signature of the City Representative, confirming that the services or tasks have been authorized by the City Representative.

B. VENDOR shall perform no as-needed work under this Agreement without a signed Task Order provided by the City Representative, c ontaining the information set forth in Section 1.3 (A), above.

C. Time is of the essence in the performance of Work under this Agreement, and in the absence of a specific schedule or other instructions from the City Representative, VENDOR shall begin and co mplete performance of the Work in a timely and a diligently manner as possible.

404Exhibit 2

3 1.4 COMPENSATION: VENDOR shall perform the Work in accordance with “Cost and Pricing” beginning on page 5 of the VENDOR PROPOSAL (hereinafter, the “FEE SCHEDULE ”). The foregoing notwithstanding, VENDOR’s total compensation for the performance of all Work contemplated under this Agreement, will not exceed the total budgeted annual aggregate sum of FORTY-SEVEN

THOUSAND SIX HUNDRED NINETY -FOUR DOLLARS AND NINETY CENTS ($47,694.90) (hereinafter, the “Annual Not -to-Exceed Sum”), during the Term of this Agreement unless such added expe nditures are first approved by the City Council. In the event VENDOR’s charges are projected to exceed the Annual Not- to-Exceed Sum prior to the expiration of this Agreement , CITY may suspend VENDOR’s performance pending CITY’s approval of any anticipated expenditures in excess of the Annual Not-to-Exceed Sum or any other CITY approved amendment to the compensation terms of this Agreement.

1.5 PAYMENT OF COMPENSATION : Following the conclusion of each calendar month, VENDOR shall submit to CITY an itemized invoice indicating the services performed and tasks completed during the recently concluded calendar month, including any applicable Task Order services and the reimbursable out -of-pocket expenses incurred. If the amount of VENDOR’s compensation is a function of hours worked by VENDOR’s personnel, the invoice should indicate the number of hours worked, the persons respo nsible for performing the Work, the rate of compensation at which such services and tasks were perfor med, the subtotal for each task and service performed and a grand total for all services performed.

Within thirty (30) calendar days of receipt of each invoice, CITY will notify VENDOR in writing of any dispute d amounts included in the invoice. Within forty-five (45) calendar days of receipt of each invoice, CITY will pay all undisputed amounts included on the invoice. CITY will not withhold applicable taxes or other authorized deductions from payments made to VENDOR.

1.6 ACCOUNTING RECORDS : VENDOR will maintain complete and accurate records with respect to all matters c overed under this Agreement for a period of three (3) years after the expiration or termination of this Agreement. CITY will have the right to access and examine such records, without charge, during normal business hours. CITY will further have the right to audit such records, to make transcripts therefrom and to inspect all program data, documents, proceedings, and activities.

1.7 ABANDONMENT BY VENDOR: In the event VENDOR ceases to perform the Work agreed to under this Agreement or otherwise abandons the underta king contemplated herein prior to the expiration of this Agreement or prior to completion of any or all tasks set forth in the Scope of Work , VENDOR will deliver to CITY immediately and without delay, all materials, records and other work product prepared or obtained by VENDOR in the performance of this Agreement.

Furthermore, VENDOR will only be compensated for the reasonable value of the services, tasks and other Work performed up to the time of cessation or abandonment, less a deduction for any damages, costs or additional expenses which CITY may incur as a result of VENDOR’s cessation or abandonment.

405Exhibit 2

4 II.

PERFORMANCE OF AGREEMENT

2.1 CITY’S REPRESENTATIVE : The CITY hereby designates Elizabeth Nava, Director of Recreation & Community Services (hereinafter, the “ City Representative”) to act as its representative for the performance of this Agreement.

The City Representative or their designee will act on behalf of the CITY for all purposes under this Agreement. VENDOR will not accept directions or orders from any person other than the City Representative or their designee.

2.2 VENDOR REPRESENTATIVE: VENDOR hereby designates Mike Cabrera, to act as its representative for the performance of this Agreement (hereinafter, “Vendor Representative”). Vendor Representative will have full authority to represent and act on behalf of the VENDOR for all purposes under this Agreement. Vendor Representative or their designee will supervise and direct the performance of the Work, using their best skill and attention, and will be responsible for all means, methods, techniques, sequences and procedures and for the satisfactory coordination of all portions of the Work under this Agreement. Notice to the Vendor Representative will constitute notice to VENDOR.

2.3 COORDINATION OF SERVICE; CONFORMANCE WITH REQUIREMENTS :

VENDOR agrees to work closely with CITY staff in the performance of the Work and this Agreement and will be available to CITY staff and the City Representative at all reasonable times. All work prepared by VENDOR will be subject to inspection and approval by City Representative or their designees.

2.4 STANDARD OF CARE; PERFORMANCE OF EMPLOYEES : VENDOR represents, acknowledges and agrees to the following:

A. VENDOR will perform all W ork skillfully, competently and to the hi ghest standards of VENDOR’s profession;

B. VENDOR shall at all times employ such force, plant, materials, and tools as will be sufficient in the opinion of the CITY to perform the Work within the time limits established, and as provided herein. It is understood and agreed that said tools, equipment, apparatus, facilities, labor, and material shall be furnished and said Work performed and completed as required by the Agreement, and subject to the approval of the CITY’s authorized representative;

C. VENDOR will perform all Work in a manner reasonably satisfactory to the CITY;

D. VENDOR will comply with all applicable federal, state and local laws and regulations, including the conflict of interest provisions of Government Code Section 1090 and the Political Reform Act (Government Code Section 81000 et seq.). VENDOR shall be liable for all violations of such laws and regulations in connection with the Work. If VENDOR performs any work knowing it to be contrary to such laws, rules and regulations, VENDOR shall 406Exhibit 2

5 be solely responsible for all costs arising therefrom;

E. VENDOR understands the nature and scope of the Work to be performed under this Agreement as well as any and all schedules of performance;

F. All of VENDOR’s employees and agents possess sufficient skill, knowledge, training and experience to perform those service s and tasks assigned to them by VENDOR; and

G. All of VENDOR’s employees and agen ts (including , but not limited to, subcontractors and subconsultants) possess all licenses, permits, certificates, qualifications and approvals of whatever nature that are legally required to perform the tasks and services contemplated under this Agreement and all such licenses, permits, certificates, qualifications and approvals will be maintained throughout the term of this Agreement and made available to CITY for copying and inspection.

The Parties acknowledge and agree that VENDOR will perform, at VENDOR’s own cost and expense and without any reimbursement from CITY, any services necessary to correct any errors or omissions caused by VENDOR’s failure to comply with the standard of care set forth under this Section or by any like failure on the part of VENDOR’s employees, agents, contractors, subcontractors and subconsultants. Such effort by VENDOR to correct any errors or omissions will be commenced immediately upon the ir discovery by either Party and will be completed within seven (7) calendar days from the date of discovery or such other extended period of time authorized by the City Representative in writing and in their sole and absolute discretion. The Parties acknowledge and agree that CITY’s acceptance of any work performed by VENDOR or on VENDOR’s behalf will not constitute a release of any deficiency or delay in performance. The Parties further acknowledge, understand and agree that CITY has relied upon the foregoing representations of VENDOR, including but not limited to the representation that VENDOR possesses the skills, training, knowledge and experience necessary to perform the Work skillfully, competently and to the highest standards of VENDOR’s profession.

2.5 ASSIGNMENT: The skills, training, knowledge and experience of VENDOR are material to CITY’s willingness to enter into this Agreement. Accordingly, CITY has an interest in the qualifications and capabilities of the person(s) who will perform the services and tasks to be undertaken by VENDOR or on behalf of VENDOR in the performance of this Agreement. In recognition of this interest, VENDOR agrees that it will not assign or transfer, either directly or indirectly or by operation of law, this Agreement or the performance of any of VENDOR’s duties or obligations under this Agreement without the prior written consent of the CITY. In the absence of CITY’s prior written consent, any attempted assignment or transfer will be ineffective, null and void and will constitute a material breach of this Agreement.

2.6 SUBSTITUTION OF KEY PERSONNEL: VENDOR has represented to CITY that certain key personnel will perform and coordinate the Work under this Agreement. 407Exhibit 2

6 Should one or more of such personnel become unavailable, VENDOR may substitute other personnel of at least equal competence upon written approval of CITY. In the event that CITY and VENDOR cannot agree as to the substitution of key personnel, CITY shall be entitled to terminate this Agreement for cause. As discussed below, any personnel who fail or refuse to perform the Work in a manner acceptable to the CITY, or who are determined by the CITY to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project or a threat to the safety of persons or property, shall be promptly removed from the Project by the VENDOR at the request of the CITY.

2.7 CONTROL AND PAYMENT OF SUBORDINATE: The Work will be performed by VENDOR or under VENDOR’s strict supervision. VENDOR will determine the means, methods and details of performing the Work subject to the requirements of this Agreement. CITY retains VENDOR on an independent contractor basis and not as an employee. VENDOR reserves the right to perform similar o r different services for other principals during the term of this Agreement, provided such work does not unduly interfere with VENDOR’s competent and timely performance of the Work contemplated under this Agreement and provided the performance of such services does not result in the unauthorized disclosure of CITY’s confidential or proprietary information. Any additional personnel perfor ming the Work under this Agreement on behalf of VENDOR are not employees of CITY and will at all times be under VENDOR’s exclusive direction and control. VENDOR will pay all wages, salaries and other amounts due to such personnel and will assume responsibility for all benefits, payroll taxes, Social Security and Medicare payments and the like. VENDOR will be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: Social Security taxes, income tax withholding, unemployment insurance, disability insurance, workers ’ compensation insurance and the like.

2.8 REMOVAL OF EMPLOYEES OR AGENTS : If any of VENDOR’s officers, employees, agents, contractors, subcontractors or subconsultants are determined by the City Representative to be uncooperative, incompetent, a threat to the adequate or timely performance of the tasks assigned to VENDOR, a threat to persons or property, or if any of VENDOR’s officers, employees, agents, contractors, subcontractors or subconsultants fail or refuse to perform the Work in a manner acceptable to the CITY, such officer, employee, agent, contractor, subcontractor or subconsultant will be promptly removed by VENDOR and will not be reassigned to perform any of the Work.

2.9 COMPLIANCE WITH LAWS : VENDOR will keep itself informed of and in compliance with all applicable federal, state or local laws to the extent such laws control or otherwise govern the performance of the Work. VENDOR’s compliance with applicable laws will include, without limitation, compliance with all applicable Cal/OSHA requirements and applicable regulations of the Federal Department of Housing and Urbanization.

7 handicap, ancestry, sex or age. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination.

2.11 INDEPENDENT CONTRACTOR STATUS: The Parties acknowledge, understand and agree that VENDOR and all persons retained or employed b y VENDOR are, and will at all times remain, wholly independent contractors and are not officials, officers, employees, departments or subdivisions of CITY. VENDOR will be solely responsible for the negligent acts and/or omissions of its employees, agents, contractors, subcontractors and subconsultants. VENDOR and all persons retained or employed by VENDOR will have no authority, express or implied, to bind CITY in any manner, nor 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 to VENDOR under this Agreement or is otherwise expressly conferred by CITY in writing.

III.

INSURANCE

3.1 DUTY TO PROCURE AND MAINTAIN INSURANCE: Prior to the beginning of and throughout the duration of the Work, VENDOR will procure and maintain polic ies of insurance that meet the requirements and specifications set forth under this Article. VENDOR will procure and maintain the following insuran ce coverage, at its own expense:

A. Commercial General Liability Insurance : VENDOR will procure and maintain Com mercial General Liability Insurance (“CGL Coverage”) as broad as Insurance Services Office Commercial General Liability coverage (occurrence Form CG 0001) or its equivalent . Such CGL Coverage will have minimum limits of no less than One Million Dollars ($1,000,000.00) per occurrence and Two Million Dollars ($2,000,000.00) in the general aggregate for bodily injury, personal injury, property damage, operations, products and completed operations, and contractual liability.

B. Automobile Liability Insurance : VENDOR will procure and maintain Automobile Liability Insurance as broad as Insurance Services Office Form Number CA 0001 covering Automobile Liability, Code 1 (any auto). Such Automobile Liability Insurance shall have minimum limits of no less than One Million Dollars ($ 1,000,000.00) per accident for bodily injury and property damage.

C. Workers’ Compensation Insurance/ Employer’s Liability Insurance: A policy of workers’ compensation insurance in such amount as will fully comply with the laws of the State of California and which will indemnify, insure and provide legal defense for both VENDOR and CITY against any loss, claim or damage arising from any injuries or occupati onal diseases occurring to any worker employed by or any persons retained by VENDOR in the course of carrying out the Work contemplated in this Agreement.

409Exhibit 2

8 D. Errors & Omissions Insurance: For the full term of this Agreement and for a period of three (3) years thereafter, VENDOR will procure and maintain Errors and Omissions Liability Insurance appropriate to VENDOR’s profession. Such coverage will have minimum limits of no less than One Million Dollars ($1,000,000.00) per claim.

3.2 ADDITIONAL INSURED REQUIREMENTS : The CGL Coverage and the Automobile Liability Insurance will contain an endorsement naming the CITY and CITY’s elected and appointed officials, officers, employees, agents and volunteers as additional insureds.

3.3 REQUIRED CARRIER RATING : All varieties of insurance required under this Agreement will be procured from insurers admitted in the State of California and authorized to issue policies directly to California insureds. Except as otherwise provided elsewhere under this Article, all required insurance will be procured from insurers who, according to the latest edition of the Best ’s Insurance Guide, have an A.M. Best’s rating of no less than A:VII. CITY may also accept policies procured by insurance carriers with a Standard & Poor ’s rating of no less than BBB according to the latest published edition of the Standard & Poor’s rating guide. As to Workers’ Compensation Insurance/ Employer ’s Liability Insurance, the CITY Representative is authorized to authorize lower ratings than those set forth in this Section.

3.4 PRIMACY OF VENDOR’S INSURANCE: All polic ies of insurance provided by VENDOR will be primary to any coverage available to CITY or CITY’s elected or appointed officials, officers, employees, agents or volunteers. Any insurance or self-insurance maintained by CITY or CITY’s elected or appointed officials, officers, employees, agents or volunteers will be in excess of VENDOR’s insurance and will not contribute with it.

3.5 WAIVER OF SUBROGATION: All insurance coverage provided pursuant to this Agreement will not prohibit VENDOR or VENDOR’s officers, employees, agents, subcontractors or subconsultants from waiving the right of subrogation prior to a loss. VENDOR hereby waives all rights of subrogation against CITY, its officials, officers, employees agents and volunteers.

3.6 VERIFICATION OF COVERAGE : VENDOR acknowledges, understands and agrees, that CITY’s ability to verify the procurement and maintenance of the insurance required under this Article is critical to safeguarding CITY’s financial well-being and, indirectly, the coll ective well-being of the residents of the CITY.

Accordingly, VENDOR warrants, represents and agrees that it will furnish CITY with original certificates of insurance and endorsements evidencing the coverage required under this Article on forms satisfactor y to CITY in its sole and absolute discretion. The certificates of insurance and endorsements for each insurance policy will be signed by a person authorized by that insurer to bind coverage on its behalf, and will be on forms provided by the CITY if requested. All certificates of insurance and endorsements will be received and approved by CITY as a condition precedent to VENDOR’s commencement of any Work. Upon CITY’s written request, VENDOR will also provide CITY with certified copies of all required 410Exhibit 2

9 insurance policies and endorsements.

3.7 FAILURE TO MAINTAIN COVERAGE : In the event any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced immediately so as to avoid a lapse in the required coverage, CITY has the right but not the duty to obtain the insurance it deems necessary and any premium paid by CITY wil l be promptly reimbursed by VENDOR or CITY will withhold amounts sufficient to pay premium from VENDOR payments. In the alternative, CITY may cancel this Agreement effective upon notice.

3.8 SPECIAL RISKS OR CIRCUMSTANCES. CITY reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.

IV.

INDEMNIFICATION

4.1 The Parties agree that CITY and CITY’s elected and appointed off icials, officers, employees, agents and volunteers (hereinafter, the “City Indemnitees”) should, to the fullest extent permitted by law, be protected from any and all loss, injury, damage, claim, lawsuit, cost, expense, attorneys’ fees, litigation costs, or any other cost arising out of or in any way related to the performance of this Agreement. Accordingly, the provisions of this indemnity provision are intended by the Parties to be interpreted and construed to provide the City Indemnitees with the fullest protection possible under the law. VENDOR acknowledges that CITY would not enter into this Agreement in the absence of VENDOR’s commitment to indemnify, defend and protect CITY as set forth herein . Notwithstanding the foregoing, to the extent VENDOR’s Work are subject to Civil Code Section 2782.8, the above indemnity shall be limited, to the extent required by Civil Code Section 2782.8, to Claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the VENDOR. VENDOR’s obligation to indemnify shall not be restricted to insurance proceeds, if any, received by the CITY, its officials, officers, employees, agents or volunteers.

4.2 To the fullest extent permitted by law, VENDOR shall indemnify, hold harmless and defend the C ity Indemnitees from and against all liability, loss, damage, expense, cost (including without limitation reasonable attorneys’ fees, expert fees and all other costs, and fees of litigation) of every nature a rising out of or in connection with VENDOR’s performance of work hereunder or its failure to comply with any of its obligations contained in this Agreement, except such loss or damage which is caused by the sole negligence or willful misconduct of the CITY.

4.3 CITY shall have the right to offset against the amount of any compensation due to VENDOR under this Agreement, any amount due to CITY from VENDOR as a result of VENDOR’s failure to either pay CITY promptly for any costs associated with VENDOR’s obligations to indemnify the City Indemnitees under this Article, or related to VENDOR’s failure to either (i) pay taxes on amounts received pursuant to this Agreement, or (ii) comply with applicable workers’ compensation laws. 411Exhibit 2

10 4.4 The obligations of VENDOR under this Article will not be limited by the provisions of any workers’ compensation act or similar act. VENDOR expressly waives its statutory immunity under such statutes or laws as to CITY and CITY’s elected and appointed officials, officers, employees, agents, and volunteers.

4.5 VENDOR agrees to obtain executed indemnity agreements with provisions identical to those set forth herein this Article from each and every subcontractor or any other person or entity involved by, for, with or on behalf of VENDOR in the performance of this Agreement. In the event VENDOR fails to obtain such indemnity obligations from others as required herein, VENDOR agrees to be fully responsible and indemnify, hold harmless and defend CITY and CITY’s elected and appointed officials, o fficers, employees, agents, and volunteers from and against any and all claims and losses, costs or expenses for any damage due to death or injury to any person and injury to any property resulting from any alleged intentional, reckless, negligent, or otherwise wrongful acts, errors or omissions of VENDOR’s subcontractors or any other person or entity involved by, for, with or on behalf of VENDOR in the performance of this Agreement. Such costs and expenses shall include reasonable attorneys’ fees incurred by counsel of CITY’s choice.

4.6 CITY does not, and shall not , waive any rights that it may possess against VENDOR because of the acceptance by CITY, or the deposit with CITY, of any insurance policy or certificate required pursuant to this Agreement. This hold harmless and indemnification provision shall apply regardless of whether or not any insurance policies are determined to be applicable to the claim, demand, damage, liability, loss, cost, or expense.

4.7 This Article and all provisions contained herein (including but not limited to the duty to indemnify, defend, and hold free and harmless) shall survive the termination or normal expiration of this Agreement and is in addition to any other rights or remedies which the CITY may have at law or in equity.

TERMINATION

5.1 TERMINATION WITHOUT CAUSE : CITY may immediately terminate this Agreement at any time for convenience and without cause by giving prior written notice of CITY’s intent to terminate this Agreement which notice shall specify the effective date of such termination . Upon such termination for convenience , VENDOR will be compensated only for those services and tasks which have been performed by VENDOR up to the effective date of the termination. VENDOR may not terminate this Agreement except for cause as provided under Section 5.2, below. If this Agreement is termina ted as provided herein, CITY may require VENDOR to provide all finished or unfinished Documents and Data, as defined in Section 6.1, below, and other information of any kind prepared by VENDOR in connection with the performance of the Work. VENDOR will be required to provide such Documents and Data within f ifteen (15) calendar days of CITY’s written request. No actual or asserted breac h of this Agreement on the part of CITY 412Exhibit 2

11 pursuant to Section 5.2, below, will operate to prohibit or otherwise restrict CITY’s ability to terminate this Agreement for convenience as provided under this Section.

5.2 EVENTS OF DEFAULT; BREACH OF AGREEMENT:

A. In the event either Party fails to perform any duty, obligation, service or task set forth under this Agreement (or fails to timely perform or properly perform any such duty, obligation, service or task set forth under this Agreement), an event of default (hereinafter, “Event of Default”) will occur. For all Events of Default, the Party alleging an Event of Default will give written notice to the defaulting Party (hereinafter referred to as a “Default Notice”) which will specify: (i) the nature of the Event of Default; (ii) the action required to cure the Event of Default; (iii) a date by which the Event of Default will be cured, which will not be less than the applicable cure period set forth under Sections 5.2(B) and 5.2(C), below, or if a cure is not re asonably possible within the applicable cure period, to begin such cure and diligently prosecute such cure to completion. The Event of Default will constitute a breach of this Agreement if the defaulting Party fails to cure the Event of Default within the applicable cure period or any extended cure period allowed under this Agreement.

B. VENDOR will cure the Event of Default within the following time periods:

i. Within ten (10) business days of CITY’s issuance of a Default Notice for any failure of VENDOR to timely provide CITY or CITY’s employees or agents with any information and/or written reports, documentation or work product which VENDOR is obligated to provide to CITY or CITY’s employees or agents under this Agreement. Prior to the expiration of the 10-day cure period, VENDOR may submit a written request for additional time to cure the Event of Default upon a showing th at VENDOR has commenced efforts to cure the Event of Default and that the Event of Default cannot be reasonably cured within the 10-day cure period. The foregoing notwithstanding, CITY will be under no obligation to grant additional time for the cure of an Event of Default under this Section 5.2(B)(i) that exceeds seven (7) calendar days from the end of the initial 10-day cure period; or

ii. Within fourteen (14) calendar days of CITY’s issuance of a Default Notice for any other Event of Default under this Agreement. Prior to the expiration of the 14 -day cure period, VENDOR may submit a written request for additional time to cure the Event of Default upon a showing that VENDOR has commenced efforts to cure the Event of Default and that the Event of Default cannot be reasonably cured within the 14 -day cure period. The foregoing notwithstanding, CITY will be und er no obligation to grant additional time for the cure of an Event of Default under this Section 5.2(B)(ii) that exceeds thirty (30) calendar days from the end of the initial 14-day cure period.

In addition to any other failure on the part of VENDOR to perform any duty, 413Exhibit 2

12 obligation, service or task set forth under this Agreement (or the failure to timely perform or properly perform any such duty, obligation, service or task), an Event of Default on the part of VENDOR will include, but will not be limited to the following: (i) VENDOR’s refusal or failure to perform any of the services or tasks called for under the Scope of Work; (ii) VENDOR’s failure to fulfill or perform its obligations under this Agreement within the specified time or if no time is speci fied, within a reasonable time; (iii) VENDOR’s and/or its employees ’ disregard or violation of any federal, state, local law, rule, procedure or regulation; (iv) the initiation of proceedings under any bankruptcy, insolvency, receivership, reorganization, or similar legislation as relates to VENDOR, whether voluntary of involuntary; (v) VENDOR’s refusal or fail ure to perform or observe any covenant, condition, obligation or provision of this Agreement; and/or (vii) CITY’s discovery that a statement representation or warranty by VENDOR relating to this Agreement is false, misleading or erroneous in any material respect.

C. CITY will cure any Event of Default asserted by VENDOR within forty-five (45) calendar days of VENDOR’s issuance of a Default Notice unless the Event of Default cannot reasonably be cured within the 45-day cure period.

Prior to the expiration of the 45-day cure period, CITY may submit a written request for additional time to cure the Event of Default upon a showing that CITY has commenced its efforts to cure the Event of Default and that the Event of Default cannot be reasonably cured within the 45-day cure period.

The foregoing notwithstanding, an Event of Default dealing with CITY’s failure to timely pay any undisputed sums to VENDOR as provided under Section 1.5, above, will be cured by CITY within five (5) calendar days from the date of VENDOR’s Default Notice to CITY.

D. CITY, in its sole and absolute discretion, may also immediately suspend VENDOR’s performance under this Agreement pending VENDOR’s cure of any Event of Default by giving VENDOR written notice of CITY’s intent to suspend VENDOR’s performance (hereinafter, a “Suspension Notice”).

CITY may issue the Suspension Notice at any time upon the occurrence of an Event of Default. Upon such suspension, VENDOR will be compensated only for those services and tasks which have been rendered by VENDOR to the reasonable satisfaction of CITY up to the effective date of the suspension. No actual or asserted breach of this Agreement on the part of CITY will operate to prohibit or otherwise restrict CITY’s ability to suspend this Agreement as provided herein.

E. No waiver of any Event of Default or breach under this Agreement will constitute a waiver of any other or subsequent Event of Default or breach .

No waiver, benefit, privilege, or service voluntarily given or performed by a Party will give the other Party any contractual rights by custom, estoppel, or otherwise.

F. The duties and obligation s imposed under this Agreement and the rights and remedies available hereunder will be in addition to and not a limitation 414Exhibit 2

13 of any duties, obligations, rights and remedies otherwise imposed or available by law. In addition to any other remedies available to CITY at law or under this Agreement in the event of any breach of this Agreement, CITY, in its sole and absolute discretion, may also pursue any one or more of the following remedies:

i. Upon written notice to VENDOR, the CITY may immediately terminate this Agreement in whole or in part;

ii. Upon written notice to VENDOR, the CITY may extend the time of performance;

iii. The CITY may proceed by appropriate court action to enforce the terms of the Agreement to recover damages for VENDOR’s breach of the Agreement or to terminate the Agreement; or

iv. The CITY may exercise any other available and lawful right or remedy.

VENDOR will be liable for all legal fees plus other costs and expenses that CITY incurs upon a breach of this Agreement or in the CITY’s exercise of its remedies under this Agreement.

G. In the event CITY is in breach of this Agreement, VENDOR’s sole remedy will be the suspension or termination of this Agreement and/or the recovery of any unpaid sums lawfully owed to VENDOR under this Agreement for completed services and tasks.

5.3 SCOPE OF WAIVER: No waiver of any default or breach under this Agreement will constitute a waiver of any other default or breach, whether of the same or other covenant, warranty, agreement, term, condition, duty or requirement contained in this Agreement. No waiver, benefit, privilege, or service voluntarily given or performed by a Party will give the other Party any contractual rights by custom, estoppel, or otherwise.

5.4 SURVIVING ARTICLES, SECTIONS AND PROVISIONS: The termination of this Agreement pursuant to any provision of this Article or by normal expiration of its term or any extension thereto will not operate to terminate any Article, Section or provision contained herein which provides that it will survive the termination or normal expiration of this Agreement.

VI.

MISCELLANEOUS PROVISIONS

6.1 DOCUMENTS & DATA; LICENSING OF INTELLECTUAL PROPERTY : All Documents and Data will be and remain the property of CITY without restriction or limitation upon their use or dissemination by CITY. For purposes of this Agreement, the term “Documents and Data” means and includes all reports, analyses, correspondence, plans, designs, notes, summaries, strategies, charts, schedules, spreadsheets, calculations, lists, data compilations, documents or 415Exhibit 2

14 other materials developed and/or assembled by or on behalf of VENDOR in the performance of this Agreement and fixed in any tangible medium of expression, including but not limited to Documents and Data stored digitally, magnetically and/or electronically. This Agreement creates, at no cost to CITY, a perpetual license for CITY to copy, u se, reuse, disseminate and/or retain any and all copyrights, designs, and other intellectual property embodied in all Documents and Data. VENDOR will require all subcontractors and subconsultants working on behalf of VENDOR in the performance of this Agre ement to agree in writing that CITY will be granted the same right to copy, use, reuse, disseminate and retain Documents and Data prepared or assembled by any subcontractor or subconsultant as applies to Documents and Data prepared by VENDOR in the performance of this Agreement.

6.2 CONFIDENTIALITY: All data, documents, discussion, or other information developed or received by VENDOR or provided for performance of this Agreement are deemed confidential and will not be disclosed by VENDOR without prior written consent by CITY. CITY will grant such consent of disclosure as legally required.

Upon request, all CITY data will be returned to CITY upon the termination or expiration of this Agreement. VENDOR will not use CITY’s name or insignia, photographs, or any publicity pertaining to the Work in any magazine, trade paper, newspaper, television or radio production or other similar medium without the prior written consent of CITY.

6.3 FALSE CLAIMS ACT: VENDOR warrants and represents that neither VENDOR nor any person who is an officer of, in a managing position with, or has an ownership interest in VENDOR has been determined by a court or tribunal of competent jurisdiction to have violated the False Claims Act, 31 U.S.C., Secti on 3789 et seq. and the California False Claims Act, Government Code Section 12650 et seq.

6.4 NOTICES: All notices permitted or required under this Agreement will be given to the respective Parties at the following addresses, or at such other address as the respective Parties may provide in writing for this purpose:

VENDOR: CITY:

Mike Cabrera, Corp. dba
InterGraphics Company
103 Crabapple Drive
Pomona, CA 91767
Attn: Mike Cabrera
Phone: 213-500-5455
City of Bell Gardens
7100 S. Garfield Avenue
Bell Gardens, CA 90201
Attn: Elizabeth Nava, Director of
Recreation & Community Services
Phone: 562-806-7650

Such notices will be deemed effective when personally delivered or successfully transmitted by facsimile as evidenced by a fax confirmation slip or when mailed, forty-eight (48) hours after deposit with the United States Postal Service, first class postage prepaid and addressed to the Party at its applicable address.

6.5 COOPERATION; FURTHER ACTS : The Parties will fully cooperate with one another and will take any additional acts or sign any additional documents as are 416Exhibit 2

15 reasonably necessary, appropriate or convenient to achieve the purposes of this Agreement.

6.6 SUBCONTRACTING: VENDOR will not subcontract any portion of the Work required by this Agreement, except as expressly stated herein, without the prior written approval of CITY. Subcontracts (includi ng without limitation subcontracts with subconsultants), if any, will contain a provision making them subject to all provisions stipulated in this Agreement, including provisions relating to insurance requirements and indemnification.

6.7 CITY’S RIGHT TO EMPL OY OTHER VENDORS: CITY reserves the right to employ other contractors in connection with the various projects worked upon by VENDOR.

6.8 PROHIBITED INTERESTS: VENDOR warrants, represents and maintains that it has not employed nor retained any company or person, other than a bona fide employee working solely for VENDOR, to solicit or secure this Agreement.

Further, VENDOR warrants and represents that it has not paid, nor has it agreed to pay any company or person, other than a bona fide employee working solely for VENDOR, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, CITY will have the right to rescind this Agreement without liability. For the term of this Agreement, no member, officer or employee of CITY, during the term of his or her service with CITY, will have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.

6.9 TIME IS OF THE ESSENCE: Time is of the essence for each and every provision of this Agreement.

6.10 GOVERNING LAW AND VENUE : This Agreement will be interpreted and governed according to the laws of the State of California. In the event of litigation between the Parties, the venue , without exception, will be in the Los Angeles County Superior Court of the State of California. If, and only if, applicable law requires that all or part of any such litigation be tried exclusively in federal court, the venue, without exception, will be in the Central District of California located in the City of Los Angeles, California.

6.11 ATTORNEYS’ FEES: If either Party commences an action against the other Party, legal, administrative or otherwise, arising out of or in connection with this Agreement, the prevailing Party in such litigation will be entitled to have and recover from the losing Party reasonable attorneys’ fees and all other costs of such action.

6.12 SUCCESSORS AND ASSIGNS : This Agreement will be binding on the successors and assigns of the Parties.

6.13 NO THIRD-PARTY BENEFIT: There are no intended third -party beneficiaries of any right or obligation assumed by the Parties. All rights and benefits under this 417Exhibit 2

16 Agreement inure exclusively to the Parties.

6.14 CONSTRUCTION OF AGREEMENT : This Agreement will not be construed in favor of, or against, either Party but will be construed as if the Parties prepared this Agreement together through a process of negotiation and with the advice of their respective attorneys.

6.15 SEVERABILITY: If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions will continue in full force and effect.

6.16 AMENDMENT; MODIFICATION: No amendment, modification or supplement of this Agreement will be valid or bin ding unless executed in writing and sig ned by both Parties, subject to CITY approval. The requirement for written amendments, modifications or supplements cannot be waived and any attempted waiver will be void and invalid.

6.17 CAPTIONS: The captions of the various articles, sections and paragraphs are for convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content, or intent of this Agreement.

6.18 INCONSISTENCIES OR CONFLICTS : In the event of any conflict or inconsistency between the provisions of this Agreement and any of the exhibits attached hereto, the provisions of this Agreement will control.

6.19 ENTIRE AGREEMENT : This Agreement, including all attached exhibits , constitutes the entire, complete, final and exclusive expression of the Parties with respect to the matters addressed herein and supersedes all other agreements or understandings, whether oral or written, which may have been entered into between CITY and VENDOR prior to the execution of this Agreement. Any statements, representations, or other agreements, whether oral or written, made by either Party that is not embodied herein will not be valid or binding on the Parties. No amendment, modification or supplement to this Agreement will be valid and binding unless in writing and duly executed by the Parties pursuant to Section

6.16, above.

6.20 FORCE MAJEURE: The Term shall be extended in the event of any delays due to unforeseeable causes beyond the control of VENDOR and without the fault or negligence of VENDOR, including but not limited to severe weather, fires, earthquakes, floods, epidemics, quarantine restriction s, riots, strikes, freight embargoes, wars, litigation, and/or acts of any governmental agency, including the CITY. VENDOR shall within three (3) calendar days of the commencement of such delay notify the City Representative in writing of the causes of the delay. The City Representative 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 City Representative such delay is justified. The City Representative’s determination shall be final and conclusive upon the parties to this Agreement. In no event shall VENDOR be entitled to recover damages against the CITY for any delay in the performance of this Agreement, however caused, 418Exhibit 2

17 VENDOR’s sole reme dy being extension of the Agreement pursuant to this Section.

6.21 COUNTERPARTS: This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, but all of which when taken together shall constitute one and the same in strument. No handwritten or typewritten amendment, modification or supplement to any one counterpart will be valid or binding unless made to all three counterparts in conformity with Section

6.16, above. One fully executed original counterpart will be delivered to VENDOR and two original counterparts will be retained by CITY.

(SIGNATURES ON NEXT PAGE)
419Exhibit 2

18 IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed the day and year first appearing in this Agreement, above.

CITY OF BELL GARDENS:

By:_______________________________

Name:____________________________

Title:____________________

Date:_____________________

APPROVED AS TO FORM:

By:____________________________
Stephanie Vasquez, City Attorney

MIKE CABRERA CORP. DBA
INTERGRAPHICS COMPANY:

By:_______________________________

Name:____________________________

Title:____________________

Date:_____________________

420Exhibit 2

19 EXHIBIT “A”

CITY RFP

421Exhibit 2
1 REQUEST FOR PROPOSALS

CITY QUARTERLY BROCHURE

RFP Release Date
Tuesday, March 19, 2024

Proposal Submittal Deadline
Tuesday, April 9, 2024, at 12:00pm

Contact Person:

Elizabeth Nava, Director of Recreation and Community Services City of Bell Gardens
7100 Garfield Avenue
Bell Gardens, CA 90201
[email protected]
(562) 806-7650

422Exhibit 2
2 TABLE OF CONTENTS
7100 Garfield Avenue • Bell Gardens, CA 90201 • (562) 806-7700 • www.bellgardens.org

TABLE OF CONTENTS ...................................................................................................... 2 INTRODUCTION ................................................................................................................ 3 SUBMITTAL PROCEDURES/DEADLINE........................................................................... 4 TERMS AND CONDITIONS ............................................................................................... 4 SCOPE OF SERVICES ...................................................................................................... 8 CITY OF BELL GARDENS RESPONSIBILITY ................................................................... 9 PROPOSAL FORMAT AND CONTENT REQUIREMENTS ............................................... 9 EVALUATION CRITERIA ................................................................................................. 10 SELECTION PROCESS ................................................................................................... 11 DRAFT PROFESSIONAL SERVICES AGREEMENT……………………………………….12

423Exhibit 2
3 INTRODUCTION

The City of Bell Gardens (“City”) invites qualified vendors to submit proposals for brochure production, printing, and mailing services for the City of Bell Gardens Recreation and Community Services Department (“RCS”) Quarterly Brochure ("Brochure”). The City desires to enter into a 3-year agreement with the option of two additional one-year terms.

The City produces four (4) quarterly Brochures each year that are published in both English and Spanish. The Brochure is created internally by the RCS Department staff and sent to a printing company that will produce blue line copies, print the requested number of Brochures and deliver the Brochures to the post office for mailing. The average size of the Brochure is approximately 32 pages, with the summer edition being approximately 44 pages. The size of each Brochure depends upon the amount of activity displayed for that season.

The City reserves the right to accept or reject any or all responses received in response to this RFP. The City also reserves the right to waive any informality, technical defect or clerical error or irregularity in any response. The City’s potential award of an agreement will not be based on any single factor, nor will it be based solely or exclusively o n the lowest cost proposal. If an agreement is awarded, it will be awarded to the vendor who in the judgment of the City has presented an optimal balance o f relevant experience, price, quality of service, work history and other factors which the City may consider relevant and important in determining which proposal is best for the City. Additionally, the City may, for any reason, decide not to award an agreement based on this RFP. The City reserves the right to cancel this RFP. The City shall not be obligated to respond to any responses submitted, nor be legally bound in any manner by the submission of the response. The City reserves the right to negotiate deliverables and associated costs.

424Exhibit 2
4 SUBMITTAL PROCEDURES/DEADLINE

Proposals must be submitted electronically via email to [email protected] no later than 12:00 p.m. on Tuesday, April 9, 2024 . The subject line should read “City Quarterly Brochure Proposal” Late proposals will not be considered. If the proposal includes any comments over and above the specific information requested in this RFP, such information should be included as a separate appendix and placed at the end of the proposal.

SCHEDULE

The tentative schedule for this RFP is as follows:

SCHEDULE
RFP Available Online Tuesday, March 19, 2024
Proposal Due Date Tuesday, April 9, 2024, 12:00 P.M.

Proposal Review Period Wednesday, April 10, 2024 –
Wednesday, April 17, 2024
Council Action/ Approval of Contract Monday, April 22, 2024

*The schedule above is tentative and subject to change at the discretion of the City, with appropriate notice to prospective Proposers. Please check the Bell Gardens website for the latest updates at https://www.bellgardens.org/i-want-to/view-bids-rfps/rfps-and-bids .

All times are in pacific standard time (PST).

TERMS AND CONDITIONS

PROFESSIONAL SERVICES AGREEMENT

Upon conclusion of the RFP process, the RCS Department will recommend a proposer to the City Council. The successful Proposer will be required to enter into a Professional Services Agreement with the City. A copy of the City’s Professional Services Agreement is attached and incorporated as Exhibit “A” as a sample for proposers to review the 425Exhibit 2
5 terms and conditions prior to submitting a proposal. The proposal process, agreement negotiations and execution, and subsequent actions will be conducted by the City in accordance with applicable law. Proposers should carefully review this document, which constitutes the formal RFP, to ensure a clear understanding of the City’s needs and objectives and scope of work. The sample Professional Service Agreement ( Exhibit “A”) is not to be completed by proposers.

GENERAL INSTRUCTIONS, TERMS AND CONDITIONS

A. Proposals shall be prepared to simply and economically, provide a straightforward, concise description of the Proposer's ability to meet the requirements of this RFP. Emphasis shall be on the quality, completeness, clarity of content, responsiveness to th e requirements, and an understanding of City’s objectives.

B. Proposers shall carefully read the information contained in this RFP and shall submit complete responses to all requirements and questions as directed.

Incomplete proposals may be considered non-responsive and may be rejected in the City’s discretion. The submission of a response to this RFP shall be deemed a representation and certification by the Proposer that it has read and understood the RFP, has investigated all aspects of the RFP, and is aware of the applicable facts pertaining to the RFP process, its procedures and requirements. No request for modification of the responses to this request shall be considered after its submission on grounds that the Proposer was not fully informed as to any facts or condition.

C. Proposers should be aware that the RFP and the contents of the successful proposal will become a part of any subsequent contractual documents that may arise from this RFP. Following the Proposal Submission Deadline, the City, pursuant to the California Public Recor ds Act (Govt. Code Section 6250 et seq.) reserves the right to make copies of all submitted proposals available for inspection and copying by any interested member of the public, except to the limited extent the City determines that any information contain ed in a proposal is legally privileged under the California Public Records Act. By submission of a proposal, Proposers acknowledge and agree that their proposal and any information contained therein may be disclosed by the City to interested members of th e public, including other proposers. All responses to the RFP received become a matter of public record and shall be regarded as public records, with the exception of those elements in each proposal which are defined by the Proposer as business or trade se crets and plainly marked as “Confidential,” “Trade Secret,” or “Proprietary.” The City shall not in any way be liable or responsible for the disclosure of any such proposal or portions thereof, if they are not plainly marked as “Confidential,” “Trade Secre t,” or “Proprietary” or if disclosure is required under the Public Records Act. Any proposal which contains language purporting to render all or significant portions of the proposal “Confidential,” “Trade Secret,” or “Proprietary” shall be regarded as nonresponsive.
426Exhibit 2
6 D. Proposer shall be solely and exclusively responsible for all costs incurred in connection with the preparation and submission of the proposals; demonstrations; interviews; preparation of responses to questions and requests for additional information; for contract discussions; or for anything in any way related to this RFP. The City is not liable for any costs incurred by a proposer in response to this RFP. Whether or not a proposer is awarded an Agreement pursuant to this RFP, no proposer shall be entitled to reimbursement for any costs or expenses associated with the proposer’s participation in this RFP process. Failure to comply with all requirements contained in this RFP may result in the rejection of a proposal.

E. The City operates and is funded on a fiscal year basis. Accordingly, the City reserves the right to terminate, without any liability, any Agreement for which funding is not available.

F. The City shall not be responsible for any verbal communication between any employee of the City and any proposer. Only written requirements and qualifications will be considered. No oral statement of any person shall modify or otherwise change, or affect the terms, conditions, or specifications stated in the resulting contract.

G. Receipt of an addendum of the RFP by a proposal must be acknowledged by submitting the signed addendum with the proposal.

H. A proposal may be modified or withdrawn in person at any time before the scheduled due date, provided a receipt for the withdrawn proposal is signed by the Proposer’s authorized representative. The City reserves the right to request proof of authorization to withdraw a proposal. Proposals may not be withdrawn after the proposal closing date and each proposer agrees to this stipulation upon submittal of its proposal. However, all proposals are subject to negotiation before an agreement is awarded as further described below.

I. The City may, in the evaluation of proposals, request clarification from Proposers regarding their proposals, obtain additional material or literature, and pursue other avenues of research as necessary to ensure that a thorough evaluation is conducted.

J. By submitting a proposal in response to this RFP, the Proposer accepts the evaluation process and acknowledges and accepts that determination will require subjective judgments by the City.

K. Negotiations may be conducted with responsible proposers who submit proposals that are reasonably susceptible of being selected. All proposers reasonably susceptible of being selected based on criteria set forth in this RFP may be given an opportunity to make a presentation and/or interview. Although this process will 427Exhibit 2
7 ultimately result in the award of a single agreement, the City reserves the right to negotiate an agreement with more than one proposer.

L. The City expects the highest level of ethical conduct from Proposers, including adherence to all applicable laws and local ordinances regarding ethical behavior.

M. The City reserves the right to reject any and all proposals received as a result of this RFP. The City’s potential award of an Agreement will not be based on any single factor, nor will it be based solely or exclusively on the lowest cost proposal.

If an Agreement is awarded, it will be awarded to the Proposer who in the judgment of the City, has presented an optimal balance of relevant experience, price, quality of service, work history and other factors which the City may consider relevant and important in determining which proposal(s) is best for the City. The City reserves the right to cancel or modify this RFP. There is no guarantee that the City will award an Agreement.

N. If an agreement cannot be reached with the highest ranked Proposer, City reserves the right to terminate negotiations with that party and enter negotiations with the next highest ranked Proposer.

O. Factors such as, but not limited to, any of the following may be considered just cause to disqualify a response to the RFP without further consideration:
• Evidence of collusion, directly or indirectly, among Proposers in regard to the amount, terms, or conditions of this proposal;
• Any attempt to improperly influence any member of the selection staff; • Existence of any lawsuit, unresolved contractual claim or dispute between Proposer and the City;
• Evidence of incorrect information submitted as part of the RFP; • Evidence of Proposer’s inability to successfully complete the responsibilities and obligations of the proposed scope of work; and • Proposer’s default under any agreement, which results in termination of the Agreement.

P. Acceptance of any proposal is contingent upon the Proposer’s certification and agreement by submittal of its offer, to comply and act in accordance with all provisions of the City’s Municipal Code.

Q. The successful Proposer shall not discriminate, in any way, against any person based on race, sex, color, age, religion, sexual orientation, actual or perceived gender identity, disability, ethnicity, or national origin, or any other protected classification in connection with or related to the performance of the Agreement.

R. Any questions or clarification related to the contents of the RFP must be submitted to Elizabeth Nava, Director of Recreation and Community Services at least five (5) calendar days prior to the due date of proposals. Oral explanations or instructions given prior to the opening of the offer shall not be binding. The City 428Exhibit 2
8 shall issue any official Addendums in writing or via https://www.bellgardens.org/i- want-to/view-bids-rfps/rfps-and-bids to all Proposers.

SCOPE OF SERVICES

The selected Proposer will provide the services as described in the Scope of Service s identified below. Modifications of the Scope of Services through negotiation and/or by written addendum will be made a part of the future agreement.

The selected Proposer agrees to provide the following services in accordance with industry standards and standards set by City needs.

Requested Services include, but are not limited to the following:

A. Enter into a Professional Services Agreement with the City for Quarterly Brochure production, printing and mailing services.

B. Obtain all required permits and follow all local, state, and federal regulations.

C. Receive an electronic version of the quarterly brochure from the City and produce a digital blueline and pdf proof of the brochure.

1. PDF proof must be delivered to the designated City staff, prior to final authorization from the City.

D. Produce and print no less than 1 1,500 color copies of the Brochure with the following specifications:

1. High Resolution PDF Artwork

2. Color: 4/4

3. 8.5x11” booklet

4. Material: 80# Gloss – Self Cover Book

5. Finishing: Saddle Stitch and Trim

6. Packing: Skid Pack for USPS Bulk Mail
i. 10,800 packed for simplified mail. String tied in packs of 50. ii. 700 packed in cartons to be delivered directly to the City.

E. Delivery of brochures to the post office.

1. 10,800 Brochures must be packed and delivered to the Bell Gardens Post Office.

E. Quality Assurance:

1. The selected Proposer must ensure that all services are of the highest quality. We may conduct regular inspections to ensure the services meet our standards.
429Exhibit 2
9 CITY OF BELL GARDENS RESPONSIBILITY

The City will provide the selected Proposer with a draft version of the Brochure to be used for printing. All proof documents and printing equipment and supplies needed to perform the service must be provided by the Proposer. The Proposer will incur any liability during the course and scope of the proposed service.

PROPOSAL FORMAT AND CONTENT REQUIREMENTS

The following instructions describe the form in which proposals should be submitted.

Responses to the following items will be used for proposal evaluation. Proposals that do not contain responses to each of the requirement items may be considered incomplete and may be rejected.

Proposal documents should provide a straightforward, concise description of the Proposer’s capabilities to satisfy the requirements of this RFP. Emphasis should be on completeness, clarity of content, and conveyance of the information requested by the City. The requirements stated do not preclude a Proposer from furnishing additional reports, functions, and costs as deemed appropriate.

The proposal should contain the following six (6) elements describing how the Proposer will perform the assignment:

1. Transmittal Letter:
a. A letter of transmittal signed by an individual authorized to bind the Proposer stating the Proposer has read and will comply with all terms and conditions of the RFP. The transmittal letter will contain, at a minimum: a) company name and address; and b) an executive summary briefly describing the Proposer’s ability to perform the work requested, a history of the Proposer’s background and experience providing services.

b. Conflict of Interest Statement: The Proposer shall disclose any financial, business, or other relationship with the City that may have an impact upon the outcome of this Agreement. Particular attention should be paid to compliance with Government Code section 1090.

2. Management and Staffing:
430Exhibit 2
10 a. Describe the management and staffing configuration to be utilized to complete the scope of services and their qualifications.

3. Cost and Pricing:
a. Include a detailed pricing structure for the services, including any discounts or packages available. All items must be itemized in detail and must include an “Annual Not to Exceed” amount per year which shall be applicable to the initial 3-year term and the optional two 1-year extensions.

4. Additions or Exceptions:
a. A single and separate section with the heading “ADDITIONS OR EXCEPTIONS TO THE CITY’S REQUEST FOR PROPOSAL” containing a complete and detailed description of all the Proposer’s exceptions to the provisions and conditions of the attached City standard Professional Services Agreement.

5. Pending Litigation:
a. Include an explanation and status, if in the last five years, the firm or an office or principal of the firm has been involved in any substantiated complaints, litigation, legal proceedings, or investigations by a regulatory authority.

6. Insurance:
a. Evidence of commercial liability, professional liability, and workers compensation insurance coverages must be included. Insurance requirements are listed on the sample Professional Services A greement attached as Exhibit “A.”

EVALUATION CRITERIA

The award of this agreement will be made to the most qualified Proposer whose proposal complies with the prescribed requirements. The City reserves the right to reject any or all proposals and to waive any technical errors, irregularities, or discrepancies , if to do so is deemed to serve the best interests of the City. In no event will an award be made until all necessary investigations are made as to the responsibility and qualifications of the service provider to whom it is proposed to make such an award.

Proposals will be reviewed and evaluated by the Department and City staff and ranked based on qualifications, expertise, and cost-effectiveness.

If further clarifications or negotiations are required, on -site or virtual interviews may be conducted. Participation in these interviews will be at the expense of the Proposer(s). 431Exhibit 2
11 The interview panel will be made up of staff members or representatives from the City.

Recommendations will be forwarded to the City Council for final selection and award.

Proposals failing to provide sufficient information and assurances of performance to adequately assess each category of the required services and/or failing to comply with the requirements and conditions of this RFP may not be given further consideration.

Each proposal will be considered along with those of other responding Proposers, with respect to ability to perform effectively and efficiently those Scope of Services outlined above.

Close coordination with the City is required to assure that all requirements will be met.

The City reserves the right to withdraw this RFP at any time without any prior notice.

Further, the City makes no representations that any Agreement will be awarded t o any Proposer responding to this RFP. The City expressly reserves the right to postpone reviewing the proposals for its own convenience and to reject any or all proposals responding to this RFP without indicating any reasons for such rejection(s).

SELECTION PROCESS

All proposals submitted by the required deadline will be reviewed for adequacy, completeness, content, approach to service delivery , qualifications and other criteria developed during the review process.

The Agreement will be awarded to the Proposer deemed by the City to be the best qualified for the scope of services. Proposers are encouraged to elaborate on their qualifications, performance data, and staff expertise relevant to the proposed project.

432Exhibit 2

1 2024

PROFESSIONAL SERVICES AGREEMENT
(Engagement: INSERT DESCRIPTION OF ENGAGEMENT)
(Parties: INSERT NAME and City of Bell Gardens)

THIS PROFESSIONAL SERVICES AGREEMENT (hereinafter, “Agreement”) is made and entered into this ______ day of ____________ 2024 (hereinafter, the “Effective Date”) by and between the CITY OF BELL GARDENS , a municipal corporation (hereinafter, “CITY”) and INSERT VENDOR NAME (hereinafter, “VENDOR”). For the purposes of this Agreement, CITY and VENDOR may be referred to collectively by the capitalized term “Parties. ” The capitalized term “Party” may refer to CITY or VENDOR interchangeably, as appropriate.

RECITALS

WHEREAS, CITY requires INSERT THE KIND OF SERVICES REQUIRED; and

WHEREAS, CITY staff has determined that VENDOR possesses the experience, skills and training necessary to competently provide such services to CITY; and

WHEREAS, the execution of this Agreement was approved by the Bell Gardens City Council at its Regular Meeting.

NOW, THEREFORE, for and in consideration of the mutual covenants and conditions herein contained, CITY and VENDOR agree as follows:

ENGAGEMENT TERMS

1.1 TERM: This Agreement shall have a term of ________ (___) years commencing on ____________ through ___________ (hereinafter, the “Term”). Nothing in this Section shall operate to prohibit or otherwise restrict the CITY’s ability to terminate this Agreement at any time for convenience or for cause as provided under Article V (Termination), below. The Term of the Agreement may be extended by the CITY subject to its same terms and conditions for a maximum of two (2) one -year extensions, provided the City Manager issues written notice of its intent to extend the Term of the Agreement prior to the expiration of the initial Term.

1.2 SCOPE OF WORK:

A. Subject to the terms and conditions of this Agreement, VENDOR agrees to provide the services and tasks described in that certain Request for Proposals of CITY entitled “ INSERT TITLE OF REQUEST FOR PROPOSALS” (hereinafter, “CITY RFP”) dated INSERT DATE OF RFP , and the written proposal of VENDOR entitled “ INSERT TITLE OF PROPOSAL” (hereinafter, the “ VENDOR PROPOSAL”) dated INSERT DATE OF PROPOSAL. The CITY RFP and the VENDOR PROPOSAL are attached and incorporated hereto as Exhibit “A” and “B” respectively. The Exhibit “A”
433Exhibit 2

2 term “Scope of Work” shall be a collective reference to the CITY RFP and the VENDOR PROPOSAL. The capitalized term “Work” shall be a collective reference to all the various services and tasks referenced in the Scope of Work. In the event of any conflict or inconsistency between the provisions of the document entitled CITY RFP and the provisions of the document entitled VENDOR PROPOSAL, the requirements of the document entitled CITY RFP shall govern and control but only to the extent of the conflict or inc onsistency and no further. In the event of any conflict or inconsistency between the provisions of the Scope of Work and the provisions of this Agreement to which the Scope of Work is attached, the provisions of this Agreement shall govern and control.

1.3 PROSECUTION OF WORK:

1. A detailed description of the specific services or tasks requested;

2. The location of where the particular services or tasks are to be performed, if applicable;

3. A not-to-exceed budget for performing the services or tasks;

4. A timeline for completing the requested services or tasks;

5. Any other information CITY deems necessary and relevant to the requested services or tasks; and

6. The signature of the City Representative, confirming that the services or tasks have been authorized by the City Representative.

B. VENDOR shall perform no as-needed work under this Agreement without a signed Task Order provided by the City Representative, containing the information set forth in Section 1.3 (A), above.

C. Time is of the essence in the performance of Work under this Agreement, and in the absence of a specific schedule or other instructions from the City Representative, VENDOR shall begin and complete performance of the Work in a timely and a diligently manner as possible.

1.4 COMPENSATION: VENDOR shall perform the Work in accordance with “INSERT 434Exhibit 2

3 TITLE OF COMPENSATION DOCUMENT ” beginning on page ___ of the VENDOR PROPOSAL (hereinafter, the “ FEE SCHEDULE ”). The foregoing notwithstanding, VENDOR’s total compensation for the pe rformance of all Work contemplated under this Agreement , will not exceed the total budgeted annual aggregate sum of INSERT WRITTEN AMOUNT ($ INSERT NUMBER) , (hereinafter, the “Annual Not-to-Exceed Sum”), during the Term of this Agreement unless such added expenditures are first approved by the City Council. In the event VENDOR’s charges are projected to exceed the Annual Not-to-Exceed Sum prior to the expiration of this Agreement , CITY may suspend VENDOR’s performance pending CITY’s approval of any anticipated expenditures in excess of the Annual Not-to-Exceed Sum or any other CITY approved amendment to the compensation terms of this Agreement.

1.5 PAYMENT OF COMPENSATION : Following the conclusion of each calendar month, VENDOR shall submit to CITY an itemized invoice indicating the services performed and tasks completed during the recently concluded calendar month, including any applicable Task Order services and the reimbursable out -of-pocket expenses incurred. If the amount of VENDOR’s compensation is a function of hours worked by VENDOR’s personnel, the invoice should indicate the number of hours worked, the persons responsible for performing the Work, the rate of compensation at which such services and tasks were perfor med, the subtotal for each task and service performed and a g rand total for all services performed.

1.6 ACCOUNTING RECORDS : VENDOR will maintain complete and accurate records with respect to all matters covered under this Agreement for a period of three (3) years after the expiration or termination of this Agreement. CITY will have the right to access and examine such records, without charge, during normal business hours. CITY will further have the right to audit such records, to make transcripts therefrom and to inspect all program data, documents, proceedings, and activities.

II.

PERFORMANCE OF AGREEMENT
435Exhibit 2

4 2.1 CITY’S REPRESENTATIVE: The CITY hereby designates INSERT CITY REPRESENTATIVE (hereinafter, the “ City Representative”) to act as its representative for the performance of this Agreement. The City Representative or their designee will act on behalf of the CITY for all purposes under this Agreement.

VENDOR will not accept directions or orders from any person other than the City Representative or their designee.

2.2 VENDOR REPRESENTATIVE: VENDOR hereby designates INSERT VENDOR REPRESENTATIVE, to act as its representative for the performance of this Agreement (hereinafter, “ Vendor Representative”). Vendor Representative will have full authority to represent and act on behalf of the VENDOR for all purposes under this Agreement. Vendor Representative or their designee will supervise and direct the performance of the Work, using their best skill and attention, and will be responsible for all means, methods, techniques, sequences and procedures and for the satisfactory coordination of all portions of the Work under this Agreement.

Notice to the Vendor Representative will constitute notice to VENDOR.

2.3 COORDINATION OF SERVICE; CONFORMANCE WITH REQUIREMENTS :

2.4 STANDARD OF CARE; PERFORMANCE OF EMPLOYEES : VENDOR represents, acknowledges and agrees to the following:

A. VENDOR will perform all W ork skillfully, competently and to the highest standards of VENDOR’s profession;

C. VENDOR will perform all Work in a manner reasonably satisfactory to the CITY;

436Exhibit 2

5 E. VENDOR understands the nature and scope of the Work to be performed under this Agreement as well as any and all schedules of performance;

F. All of VENDOR’s employees and agents possess sufficient skill, knowledge, training and experience to perform those services and tasks assigned to them by VENDOR; and

The Parties acknowledge and agree that VENDOR will perform, at VENDOR’s own cost and expense and without any reimbursement from CITY, any services necessary to correct any errors or omissions caused by VENDOR’s failure to comply with the standard of care set forth under this Section or by any like failure on the part of VENDOR’s employees, agents, contractors, subcontractors and subconsultants. Such effort by VENDOR to correct any errors or omissions will be commenced immediately upon their discovery by either Party and will be completed within seven (7) calendar days from the date of discovery or such other extended period of time authorized by the City Representative in writing and in their sole and absolute discretion. The Parties acknowledge and agree that CITY’s acceptance of any work performed by VENDOR or on VENDOR’s behalf will not constitute a release of any deficiency or delay in performance. The Parties further acknowledge, understand and agree that CITY has relied upon the foregoing representations of VENDOR, including but not limited to the representation that VENDOR possesses the skills, training, knowledge and experience necessary to perform the Work skillfully, competently and to the highest standards of VENDOR’s profession.

2.6 SUBSTITUTION OF KEY PERSONNEL: VENDOR has represented to CITY that certain key personnel will perform and coordinate the Work under this Agreement.

Should one or more of such personnel become unavailable, VENDOR may substitute other personnel of at least equal competence upon written approval of 437Exhibit 2

6 CITY. In the event that CITY and VENDOR cannot agree as to the substitution of key personnel, CITY shall be entitled to terminate this Agreement for cause. As discussed below, any personnel who fail or refuse to perform the Work in a manner acceptable to the CITY, or who are determined by the CITY to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project or a threat to the safety of persons or property, shall be promptly removed from the Project by the VENDOR at the request of the CITY.

2.7 CONTROL AND PAYMENT OF SUBORDINATE: The Work will be performed by VENDOR or under VENDOR’s strict supervision. VENDOR will determine the means, methods and details of performing the Work subject to the requirements of this Agreement. CITY retains VENDOR on an independent contractor basis and not as an employee. VENDOR reserves the right to perform similar o r different services for other principals during the term of this Agreement, provided such work does not unduly interfere with VENDOR’s competent and timely performance of the Work contemplated under this Agreement and provided the performance of such services does not result in the unauthorized disclosure of CITY’s confidential or proprietary information. Any additional personnel performing the Work under this Agreement on behalf of VENDOR are not employees of CITY and will at all times be under VENDOR’s exclusive direction and control. VENDOR will pay all wages, salaries and other amounts due to such personnel and will assume responsibility for all benefits, payroll taxes, Social Security and Medicare payments and the like. VENDOR will be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: Social Security taxes, income tax withholding, unemployment insurance, disability insurance, workers ’ compensation insurance and the like.

2.10 NON-DISCRIMINATION: VENDOR represents that it is an equal opportunity employer and it shall not discriminate against any subconsultant, employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex or age. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, 438Exhibit 2

7 recruitment or recruitment advertising, layoff or termination.

2.11 INDEPENDENT CONTRACTOR STATUS: The Parties acknowledge, understand and agree that VENDOR and all persons retained or employed by VENDOR are, and will at all times remain, wholly independent contractors and are not officials, officers, employees, departments or subdivisions of CITY. VENDOR will be solely responsible for the negligent acts and/or omissions of its employees, agents, contractors, subcontractors and subconsultants. VENDOR and all persons retained or employed by VENDOR will have no authority, express or implied, to bind CITY in any manner, nor 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 to VENDOR under this Agreement or is otherwise expressly conferred by CITY in writing.

III.

INSURANCE

A. Commercial General Liability Insurance : VENDOR will procure and maintain Commercial General Liability Insurance (“CGL Coverage”) as broad as Insurance Services Office Commercial General Liability coverage (occurrence Form CG 0001) or its equivalent . Such CGL Coverage will have minimum limits of no less than One Million Dollars ($1,000,000.00) per occurrence and Two Million Dollars ($2,000,000.00) in the general aggregate for bodily injury, personal injury, property damage, operations, products and completed operations, and contractual liability.

C. Workers’ Compensation Insurance/ Employer’s Liability Insurance: A policy of workers’ compensation insurance in such amount as will fully comply with the laws of the State of California and which will indemnify, insure and provide legal defense for both VENDOR and CITY against any loss, claim or damage arising from any injuries or occupational diseases occurring to any worker employed by or any persons retained by VENDOR in the course of carrying out the Work contemplated in this Agreement.

D. Errors & Omissions Insurance: For the full term of this Agreement and for a period of three (3) years thereafter, VENDOR will procure and maintain 439Exhibit 2

8 Errors and Omissions Liability Insurance appropriate to VENDOR’s profession. Such coverage will have minimum limits of no less than One Million Dollars ($1,000,000.00) per claim.

3.4 PRIMACY OF VENDOR’S INSURANCE : All polic ies of insurance provided by VENDOR will be primary to any coverage available to CITY or CITY’s elected or appointed officials, officers, employees, agents or volunteers. Any insurance or self-insurance maintained by CITY or CITY’s elected or appointed officials, officers, employees, agents or volunteers will be in excess of VENDOR’s insurance and will not contribute with it.

Accordingly, VENDOR warrants, represents and agrees that it will furnish CITY with original certificates of insurance and endorsements evidencing the coverage required under this Article on forms satisfactory to CITY in its sole and absolute discretion. The certificates of insurance and endorsements for each insurance policy will be signed by a person authorized by that insurer to bind coverage on its behalf, and will be on forms provided by the CITY if requested. All certificates of insurance and endorsements will be received and approved by CITY as a condition precedent to VENDOR’s commencement of any Work. Upon CITY’s written request, VENDOR will also provide CITY with certified copies of all required insurance policies and endorsements.

440Exhibit 2

9 3.7 FAILURE TO MAINTAIN COVERAGE : In the event any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced immediately so as to avoid a lapse in the required coverage, CITY has the right but not the duty to obtain the insu rance it deems necessary and any premium paid by CITY will be promptly reimbursed by VENDOR or CITY will withhold amounts sufficient to pay premium from VENDOR payments. In the alternative, CITY may cancel this Agreement effec tive upon notice.

IV.

INDEMNIFICATION

4.1 The Parties agree that CITY and CITY’s elected and appointed officials, officers, employees, agents and volunteers (hereinafter, the “City Indemnitees”) should, to the fullest extent permitted by law, be protected from any and all loss, injury, damage, claim, lawsuit, cost, expense, attorneys’ fees, litigation costs, or any other cost arising out of or in any way related to the performance o f this Agreement. Accordingly, the provisions of this indemnity provision are intended by the Parties to be interpreted and construed to provide the City Indemnitees with the fullest protection possible under the law. VENDOR acknowledges that CITY would not enter into this Agreement in the absence of VENDOR’s commitment to indemnify, defend and protect CITY as set forth herein . Notwithstanding the foregoing, to the extent VENDOR’s Work are subject to Civil Code Section 2782.8, the above indemnity shall be limited, to the extent required by Civil Code Section 2782.8, to Claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct o f the VENDOR. VENDOR’s obligation to indemnify shall not be restricted to insurance proceeds, if any, received by the CITY, its officials, officers, employees, agents or volunteers.

4.2 To the fullest extent permitted by law, VENDOR shall indemnify, hold harmless and defend the C ity Indemnitees from and against all liability, loss, damage, expense, cost (including without limitation reasonable attorneys’ fees, expert fees and all other costs, and fees of litigation) of every nature arising out of or in connection with VENDOR’s performance of work hereunder or its failure to comply with any of its obligations contained in this Agreement, except such loss or damage which is caused by the sole negligence or willful misconduct of the CITY.

4.4 The obligations of VENDOR under this Article will not be limited by the provisions 441Exhibit 2

10 of any workers’ compensation act or similar act. VENDOR expressly waives its statutory immunity under such statutes or laws as to CITY and CITY’s elected and appointed officials, officers, employees, agents, and volunteers.

4.5 VENDOR agrees to obtain executed indemnity agreements with provisions identical to those set forth herein this Article from each and every subcontractor or any other person or entity involved by, for, with or on behalf of VENDOR in the performance of this Agreement. In the event VENDOR fails to obtain such indemnity obligations from others as required herein, VENDOR agrees to be fully responsible and indemnify, hold harmless and defend CITY and CITY’s elected and appointed officials, officers, employees, a gents, and volunteers from and against any and all claims and losses, costs or expenses for any damage due to death or injury to any person and injury to any property resulting from any alleged intentional, reckless, negligent, or otherwise wrongful acts, errors or omissions of VENDOR’s subcontractors or any other person or entity involved by, for, with or on behalf of VENDOR in the performance of this Agreement. Such costs and expenses shall include reasonable attorneys’ fees incurred by counsel of CITY’s choice.

TERMINATION

5.1 TERMINATION WITHOUT CAUSE : CITY may immediately terminate this Agreement at any time for convenience and without cause by giving prior written notice of CITY’s intent to terminate this Agreement which notice shall specify the effective date of such termination . Upon such termination for convenience , VENDOR will be compensated only for those services and tasks which have been performed by VENDOR up to the effective date of the termination. VENDOR may not terminate this Agreement except for cause as provided under Section 5.2, below. If this Agreement is terminated as provided herein, CITY may require VENDOR to provide all finished or unfinished Documents and Data, as defined in Section 6.1, below, and other information of any kind prepared by VENDOR in connection with the performance of the Work. VENDOR will be required to provide such Documents and Data within f ifteen (15) calendar days of CITY’s written request. No actual or asserted breac h of this Agreement on the part of CITY pursuant to Section 5.2, below, will operate to prohibit or otherwise restrict CITY’s 442Exhibit 2

11 ability to terminate this Agreement for convenience as provided under this Section.

5.2 EVENTS OF DEFAULT; BREACH OF AGREEMENT:

A. In the event either Party fails to perform any duty, obligation, service or task set forth under this Agreement (or fails to timely perform or properly perform any such duty, obligation, service or task set forth under this Agreement), an event of default (hereinafter, “Event of Default”) will occur. For all Events of Default, the Party alleging an Event of Default will give written notice to the defaulting Party (hereinafter referred to as a “Default Notice”) which will specify: (i) the nature of the Event of Default; (ii) the action required to cure the Event of Default; (iii) a date by which the Event of Default will be cured, which will not be less than the applicable cure period set forth under Sections 5.2(B) and 5.2(C), below, or if a cure is not reasonably possible within the applicable cure period, to begin such cure and diligently prosecute such cure to completion. The Event of Default will constitute a breach of this Agreement if the defaulting Party fails to cure the Event of Default within the applicable cure period or any extended cure period allowed under this Agreement.

B. VENDOR will cure the Event of Default within the following time periods:

ii. Within fourteen (14) calendar days of CITY’s issuance of a Default Notice for any other Event of Default under this Agreement. Prior to the expiration of the 14 -day cure period, VENDOR may submit a written request for additional time to cure the Event of Default upon a showing that VENDOR has commenced efforts to cure the Event of Default and that the Event of Default cannot be reasonably cured within the 14 -day cure period. The foregoing notwithstanding, CITY will be under no obligation to grant addition al time for the cure of an Event of Default under this Section 5.2(B)(ii) that exceeds thirty (30) calendar days from the end of the initial 14-day cure period.

In addition to any other failure on the part of VENDOR to perform any duty, obligation, service or task set forth under this Agreement (or the failure to 443Exhibit 2

12 timely perform or properly perform any such duty, obligation, service or task), an Event of Default on the part of VENDOR will include, but will not be limited to the following: (i) VENDOR’s refusal or failure to perform any of the services or tasks called for under the Scope of Work; (ii) VENDOR’s failure to fulfill or perform its obligations under this Agreement within the specified time or if no time is speci fied, within a reasonable time; (iii) VENDOR’s and/or its employees ’ disregard or violation of any federal, state, local law, rule, procedure or regulation; (iv) the initiation of proceedings under any bankruptcy, insolvency, receivership, reorganization, or similar legislation as relates to VENDOR, whether voluntary of involuntary; (v) VENDOR’s refusal or failure to perform or observe any covenant, condition, obligation or provision of this Agreement; and/or (vii) CITY’s discovery that a statement representation or warranty by VENDOR relating to this Agreement is false, misleading or erroneous in any material respect.

CITY may issue the Suspension Notice at any time upon the occurrence of an Event of Default. Upon such suspension, VENDOR will be compensated only for those services and tasks which have been rendered by VENDOR to the reasonable sa tisfaction of CITY up to the effective date of the suspension. No actual or asserted breach of this Agreement on the part of CITY will operate to prohibit or otherwise restrict CITY’s ability to suspend this Agreement as provided herein.

E. No waiver of any Event of Default or breach under this Agreement will constitute a waiver of any other or subsequent Event of Default or breach .

No waiver, benefit, privilege, or service voluntarily given or performed by a Party will give the other Party any contractual rights by custom, estoppel, or otherwise.

F. The duties and obligation s imposed under this Agreement and the rights and remedies available hereunder will be in addition to and not a limitation of any duties, obligations, rights and remedies otherwise imposed or 444Exhibit 2

13 available by law. In addition to any other remedies available to CITY at law or under this Agreement in the event of any breach of this Agreement, CITY, in its sole and absolute discretion, may also pursue any one or more of the following remedies:

i. Upon written notice to VENDOR, the CITY may immediately terminate this Agreement in whole or in part;

ii. Upon written notice to VENDOR, the CITY may extend the time of performance;

iii. The CITY may proceed by appropriate court action to enforce the terms of the Agreement to recover damages for VENDOR’s breach of the Agreement or to terminate the Agreement; or

iv. The CITY may exercise any other available and lawful right or remedy.

VENDOR will be liable for all legal fees plus other costs and expenses that CITY incurs upon a breach of this Agreement or in the CITY’s exercise of its remedies under this Agreement.

VI.

MISCELLANEOUS PROVISIONS

14 performance of this Agreement and fixed in any tangible medium of expression, including but not limited to Documents and Data stored digitally, magnetically and/or electronically. This Agreement creates, at no cost to CITY, a perpetual license for CITY to copy, use, reuse, disseminate and/or retain any and all copyrights, designs, and other intellectual property embodied in all Documents and Data. VENDOR will require all subcontractors and subconsultants working on behalf of VENDOR in the performance of t his Agreement to agree in writing that CITY will be granted the same right to copy, use, reuse, disseminate and retain Documents and Data prepared or assembled by any subcontractor or subconsultant as applies to Documents and Data prepared by VENDOR in the performance of this Agreement.

6.3 FALSE CLAIMS ACT: VENDOR warrants and represents that neither VENDOR nor any person who is an officer of, in a managing position with, or has an ownership interest in VENDOR has been determined by a court or tribunal of competent jurisdiction to have violated the False Claims Act, 31 U.S.C., Section 3789 et seq. and the California False Claims Act, Government Code Section 12650 et seq.

VENDOR: CITY:

INSERT VENDOR NAME

INSERT ADDRESS

Attn: INSERT PERSON OF CONTACT
NAME
Phone: INSERT PHONE NUMBER
City of Bell Gardens
7100 S. Garfield Avenue
Bell Gardens, CA 90201
Attn: DEPARTMENT DIRECTOR
Phone: CITY PHONE NUMBER

6.5 COOPERATION; FURTHER ACTS : The Parties will fully cooperate with one another and will take any additional acts or sign any additional documents as are reasonably necessary, appropriate or convenient to achieve the purposes of this 446Exhibit 2

15 Agreement.

6.6 SUBCONTRACTING: VENDOR will not subcontract any portion of the Work required by this Agreement, except as expressly stated herein, without the prior written approval of CITY. Subcontracts (including without limitation subcontracts with subconsultants), if any, will contain a provision making them subject to all provisions stipulated in this Agreement, including provisions relating to insurance requirements and indemnification.

6.7 CITY’S RIGHT TO EMPLOY OTHER VENDORS: CITY reserves the right to employ other contractors in connection with the various projects worked upon by VENDOR.

6.9 TIME IS OF THE ESSENCE: Time is of the essence for each and every provision of this Agreement.

6.12 SUCCESSORS AND ASSIGNS : This Agreement will be binding on the successors and assigns of the Parties.

6.13 NO THIRD-PARTY BENEFIT: There are no intended third -party beneficiaries of any right or obligation assumed by the Parties. All rights and benefits under this Agreement inure exclusively to the Parties.
447Exhibit 2

16 6.14 CONSTRUCTION OF AGREEMENT : This Agreement will not be construed in favor of, or against, either Party but will be construed as if the Parties prepared this Agreement together through a process of negotiation and with the advice of their respective attorneys.

6.16 AMENDMENT; MODIFICATION: No amendment, modification or supplement of this Agreement will be valid or binding unless executed in writing and sig ned by both Parties, subject to CITY approval. The requirement for written amendments, modifications or supplements cannot be waived and any attempted waiver will be void and invalid.

6.16, above.

6.20 FORCE MAJEURE: The Term shall be extended in the event of any delays due to unforeseeable causes beyond the control of VENDOR and without the fault or negligence of VENDOR, including but not limited to severe weather, fires, earthquakes, floods, epidemics, quarantine restrictions, riots, strikes, freight embargoes, wars, litigation, and/or acts of any governmental agency, including the CITY. VENDOR shall within three (3) calendar days of the commencement of such delay notify the City Representative in writing of the causes of the delay. The City Representative 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 City Representative such delay is justified. The City Representative’s determination shall be final and conclusive upon the parties to this Agreement. In no event shall VENDOR be entitled to recover damages against the CITY for any delay in the performance of this Agreement, however caused, VENDOR’s sole remedy being extension of the Agreement pursuant to this 448Exhibit 2

17 Section.

6.21 COUNTERPARTS: This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, but all of which when taken together shall constitute one and the same instrument. No handwritten or typewritten amendment, modification or supplement to any one counterpart will be valid or binding unless made to all three counterparts in conformity with Section

6.16, above. One fully executed original counterpart will be delivered to VENDOR and two original counterparts will be retained by CITY.

(SIGNATURES ON NEXT PAGE)
449Exhibit 2

18 IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed the day and year first appearing in this Agreement, above.

CITY OF BELL GARDENS:

By:_______________________________

Name:____________________________

Title:____________________

Date:_____________________

APPROVED AS TO FORM:

By:____________________________
Stephanie Vasquez, City Attorney

VENDOR NAME:

By:_______________________________

Name:____________________________

Title:____________________

Date:_____________________

450Exhibit 2

19 EXHIBIT “A”

CITY RFP

451Exhibit 2

20 EXHIBIT “B”

VENDOR PROPOSAL

452Exhibit 2

REQUEST FOR PROPOSALS CITY QUARTERLY BROCHURE
ADDENDUM NO. 1

April 4, 2024

This addendum is being issued for the REQUEST FOR PROPOSALS FOR CITY QUARTERLY BROCHURE.

Submit a proposal for these services with the full understanding and consideration of this addendum.

This addendum is being issued to incorporate the following Questions and Answers (“Q&A”) into the Request For Proposals for City Quarterly Brochure.

1. Q: Will the city provide a simplified mail merge file or will the brochures be mailed using EDDM (Every Door Direct Mail) data?
A: The brochures will be mailed using EDDM.

Proposers who have already submitted their proposal will be contacted to arrange for return of their proposal.

Sincerely,

Elizabeth Nava
Director of Recreation and Community Services

The Proposer shall individually identify and acknowledge receipt of this addendum by signing and enclosing a copy of this form in their proposal submittal. Failure to do so may result in disqualification of their proposal.

_________________________ ____________________
Signature of Proposer Date

__________________________________________________________ Proposing Firm Name and Address

END OF ADDENDUM 01

CITY OF BELL GARDENS

7100 GARFIELD AVE • BELL GARDENS, CALIFORNIA 90201-6122 (562) 806-7700 FAX (562) 806-7789 • WWW.BELLGARDENS.ORG 453Exhibit 2

20 EXHIBIT “B”

VENDOR PROPOSAL

454Exhibit 2

103 Crabapple Drive, Pomona, CA 91767 • ph:213-500-5455 fax:562-946-6606 • email: [email protected] TRANSMITTAL LETTER April 4, 2024 Elizabeth Nava, Director of Recrea4on and Community Services City of Bell Gardens 7100 Garﬁeld Avenue Bell Gardens, CA 90201 Subject: RFP CITY QUARTERLY BROCHURE Dear MS. Nava, My name is Mike Cabrera, President and Owner of INTERGRAPHICS COMPANY , respondent to the RFP posted by the City of Bell Gardens for prinOng and mailing of your community recreaOon brochure. I would like to ﬁrst disclose that I have been providing prinOng services to the City of Bell Gardens for about nine years. I also want to menOon that my work and quality is something I hold with utmost regard, and always sOve to deliver the best value and service to the needs of the City of Bell Gardens. Below, please ﬁnd all of the requested criteria for this proposal. Thank you for considering our proposal, and we look forward to the opportunity to work with the City of Bell Gardens. Sincerely, Mike Cabrera Intergraphics Company Contact informaOon: Mike Cabrera, Corp. DBA Intergraphics Company 103 Crabapple Dr., Pomona, CA 91767 Phone: 213-500-5455 Fax: 562-946-6606 Email: [email protected] This proposal will remain valid for 90 calendar days from April 9th, 2024. Authorized Agent: MIKE CABRERA SIGNATURE: __________________________ 455Exhibit 2

103 Crabapple Drive, Pomona, CA 91767 • ph:213-500-5455 fax:562-946-6606 • email: [email protected] EXECUTIVE SUMMARY Thank you for taking the Ome to review my proposal for prinOng and mailing your community recreaOon brochure. We recognize the signiﬁcance of delivering communicaOons in a prompt and eﬃcient manner to your residents and are enthusiasOc about detailing our approach to fulﬁlling the requirements outlined in the RFP . Having 27 years of experience as a commercial prinOng consultant, I have a proven track record of providing high-quality prinOng and mailing services to a range of clients, including several neighboring municipaliOes. This extensive experience allows me to oﬀer soluOons that go above and beyond your expectaOons, giving me a niche for providing excepOonal results. Typically, I can produce and deliver your brochures within 5 business days, which is faster than the industry average of 7 to 10 business days. We value and understand the importance of meeOng deadlines and work diligently to ensure Omely delivery of your project every Ome. Intergraphics Company is fully compliant for meeOng the insurance requirements of the City of Bell Gardens. You can count on my company providing 2 million/4 million in general liability coverage, 1 million in auto liability insurance, and 1 million in errors and omissions coverage. We are prepared to provide the City with all CerOﬁcates of insurance and Endorsements to saOsfy this Agreement. As your dedicated account manager, I will ensure clear communicaOon with your staﬀ throughout the project, coordinaOng producOon and regularly updaOng progress, while oﬀering soluOons to any challenges that may arise. SCOPE OF WORK My overall approach to this project begins with a clear understanding of your speciﬁc needs and goals. In order to quickly and eﬀecOvely produce the brochure typically for new clients, we follow a set of checklists to ensure a seamless process. I will work closely with your design team to understand the design elements and art ﬁles needed for the project. If there are any areas that need improvement or simpliﬁcaOon, I will provide guidance to ensure a high-quality print-ready ﬁle is delivered. Since we have an established art preparaOon process already in place, your design staﬀ is very familiar with the level of service and response my company can oﬀer, making future collaboraOons eﬃcient and successful. 456Exhibit 2

103 Crabapple Drive, Pomona, CA 91767 • ph:213-500-5455 fax:562-946-6606 • email: [email protected] To meet the requirements of this RFP, we will employ a three-step process: 1: Work closely with your design staﬀ to prepare proofs for prinOng while simultaneously updaOng delivery staOsOcs to mailing data. 2: Schedule print producOon with partner suppliers. 3: Prepare the brochure copies for fast and eﬃcient delivery to the RecreaOon Department and corresponding Post Oﬃce. Once the design is ﬁnalized, I will work with your design team to resolve any challenges with ﬁle preparaOon. Upon establishing that your art ﬁles are opOmal for prinOng we will then move into the approval stage. A hard copy digital color proof will be presented to the city for ﬁnal approval. Any minor correcOons or updates can be approved via email with a PDF proof or if the city requires a hard copy proof, an updated proof will be presented for approval. Once the brochure is approved, I will oversee press approval as the brochure is prinOng to insure color on our state-of-the-art UV press. This is to ensure the highest quality output for every brochure while remaining cost-eﬀecOve. My experienced press technicians will also oversee the producOon process, performing regular quality control checks to ensure accuracy and consistency. Upon compleOon of the prinOng process, we will then trim and fold the the brochure to its ﬁnal size (8.5” x 11”, bound on 11” spine), and bundle it in convenient bundles matched to the mailing data. Moving on to the mailing process. I will carefully update the mailing data during the approval stage to expedite a fast and eﬃcient simpliﬁed mailing. This includes producOon of the facing slips that idenOfy every bundle, and every carrier route for the City of Bell Gardens, ensuring a complete, and accurate mailing, while meeOng compliance with US Postal regulaOons. I will then prepare all postal forms required by the post oﬃce, insuring weight and counts for delivery to the bulk mail unit. I also maintain a close relaOonship with the bulk mail clerk at your local post oﬃce to guarantee Omely delivery of your brochure to residents. This involves conﬁrming the availability of postage funds in the City of Bell Gardens postal permit before prinOng or upon delivery. In the event that postage funds are unexpectedly unavailable in the city's account, my company will cover the cost and provide proof of deposit to the city for repayment. This proacOve approach ensures that the mailing process will proceed without interrupOon. In conclusion, I believe my extensive experience in the industry, combined with our commitment to quality and customer saOsfacOon, make Intergraphics Co. the ideal partner for this project. I am conﬁdent that my proposed soluOon will eﬀecOvely meet the requirements of this RFP and deliver a brochure that exceeds your expectaOons. 457Exhibit 2

103 Crabapple Drive, Pomona, CA 91767 • ph:213-500-5455 fax:562-946-6606 • email: [email protected] CLIENT REFERENCES CITY OF SANTA FE SPRINGS Contact: Raelene Barraza, Public Informa@on Oﬃcer Scope of Work: Prin@ng and Mailing of City NewsleKer and Ac@vity Guide. Date: 2008-present Email: [email protected] Phone: (562) 868-0511, ext 7538 CITY OF SOUTHGATE Contact: Ana Medina, Senior Secretary, Department of Parks and Recrea@on Scope of Work: Prin@ng and Mailing of Recrea@on Guide. Date: 2022-present Phone: 323-357-9645 CITY OF NORWALK (NEW CLIENT) Contact: LEVY SUN, Director of Communica@ons & Public Aﬀairs Scope of Work: Prin@ng and Mailing of City NewsleKer and Recrea@on Brochure Date: Oct. 2023-present Phone: 562.929.5753 CITY OF BELLFLOWER Contact: Mike Machado, Recrea@on Supervisor Scope of Work: Prin@ng and Mailing of City NewsleKer and Recrea@on Guide. Date: 2000-present Email: mmachado@bellﬂower.org Phone: (562) 804-1424 ext. 2258 CITY OF BELL GARDENS Contact: Raymond Corona, Administra@ve Assistant, Recrea@on and Community Services Department Scope of Work: Prin@ng and Mailing of Recrea@on Guide. Date: 2015-present Email: [email protected] Phone: 562-806-7650 CITY OF LYNWOOD Contact: Jamel Goodloe, Media Analyst, Marke@ng Division. Scope of Work: Prin@ng and Mailing of City NewsleKer. Date: 2016-present Phone: 310.603.0220 Ext. 613 458Exhibit 2

103 Crabapple Drive, Pomona, CA 91767 • ph:213-500-5455 fax:562-946-6606 • email: [email protected] COST AND PRICING Description Unit Price per Issue Total Cost a. 32-page self-cover brochure b. Paper Stock: 80 lb. coated paper c. Final Size: 8.5” x 11” d. Ink: Full color / Full bleed. e. Finishing: Fold and Saddle Stitch 11” way. f. QuanQty: 11,500 per issue. Publishing Three (3) issues per year. g. Proofs: Digital copy only h. Mailing 10,800, Client Copies 700 $ 9,877.00__ $ 29,631.00__
a. 44-page self-cover brochure b. Paper Stock: 80 lb. coated paper c. Final Size: 8.5” x 11” d. Ink: Full color / Full bleed. e. Finishing: Fold and Saddle Stitch 11” way. f. QuanQty: 11,500 per issue. Publishing One (1) issue per year. g. Proofs: Digital copy only h. Mailing 10,800, Client Copies 700 $12,728.00____ $12,728.00___
Sales Tax Sales Tax: $0.00__ TOTAL: $43,359.00 ANNUAL NOT TO EXCEED: $47,694.90 ADDITIONS OR EXCEPTIONS: Note: California Sales and Use Tax Regulation 1541.5. for Printed Sales Messages exempts this brochure from sales tax. Any addiOonal changes to speciﬁcaOons not included in this RFP are subject to revision and approval by the City of Bell Gardens. Delivery charges are included in the Fee Schedule. Intergraphics Co. will work in good faith to resolve any discrepancies not included in this RFP . Due to ﬂuctuaOons in commodity prices that directly aﬀect the availability and cost of paper, the price not to exceed can be predicated to no more than 10% of the total issue cost for this calendar year. Any events drasOcally aﬀecOng availability and cost of paper will be communicated with City Staﬀ (Ex. Pandemic, Supply Chain disrupOons and natural disasters). 459Exhibit 2

REQUEST FOR PROPOSALS CITY QUARTERLY BROCHURE
ADDENDUM NO. 1

April 4, 2024

This addendum is being issued for the REQUEST FOR PROPOSALS FOR CITY QUARTERLY BROCHURE.

Submit a proposal for these services with the full understanding and consideration of this addendum.

This addendum is being issued to incorporate the following Questions and Answers (“Q&A”) into the Request For Proposals for City Quarterly Brochure.

1. Q: Will the city provide a simplified mail merge file or will the brochures be mailed using EDDM (Every Door Direct Mail) data?
A: The brochures will be mailed using EDDM.

Proposers who have already submitted their proposal will be contacted to arrange for return of their proposal.

Sincerely,

Elizabeth Nava
Director of Recreation and Community Services

_________________________ ____________________
Signature of Proposer Date

__________________________________________________________ Proposing Firm Name and Address

END OF ADDENDUM 01

CITY OF BELL GARDENS

7100 GARFIELD AVE • BELL GARDENS, CALIFORNIA 90201-6122 (562) 806-7700 FAX (562) 806-7789 • WWW.BELLGARDENS.ORG 460Exhibit 2

CITY OF BELL GARDENS

OFFICE OF THE CITY MANAGER

AGENDA REPORT

Item 12.

TO:

Honorable Mayor and City Council Members
FROM:

Michael B. O'Kelly, City Manager
BY:

Bernardo Iniguez, Director of Public Works/Facilities
SUBJECT:

REJECTION OF BIDS RECEIVED FOR THE SOIL REMEDIATION PROJECT AT THE FORMER BERK OIL SITE (CIP NO. 3927)
DATE:

April 22, 2024
RECOMMENDATION:

It is staff's recommendation that the City Council by motion a pprove the rejection of bids received on March 19, 2024, for the Soil Remediation Project at the Former Berk Oil Site.

BACKGROUND/DISCUSSION:

On February 12, 2024, the City Council approved the plans and specifications and authorized staff to solicit bids for the Soil Remediation Project at the Former Berk Oil Site (the “Project”). The Project scope of work includes, but is not limited to, site preparation activities (removal of shallow debris, loose and disturbed soil, building foundations, and asphalt/pavement surfaces), export and offsite recycling/disposal of materials generated during site preparation, excavation of approximately 8,100 bank cubic yards of impacted soil, export and offsite disposal of impacted soil, import of backfill material (as needed), excavation backfilling and compaction and/or recontouring of removal areas to eliminate trip/fall/entrapment hazards, and site restoration.

On March 19, 2024, the City received seven bids. At this time, staff has determined that the bid solicitation materials need to be revised to obtain a bid that is more appropriate for the City's needs; therefore, a rejection of bids is recommended.

Staff will be coming back to Council for approval of the revised bid solicitation at the meeting of May 13, 2024. Staff anticipates the revised bid solicitation will be released on May 16, 2024, with a bid opening of June 6, 2024, and a recommendation of award of contract on June 24, 2024. All bidders that previously submitted bids will be invited to re-submit bids.

CONCLUSION:

Upon City Council approval of the recommended action, staff will immediately notify all bidders of the rejection of bids received on March 19, 2024.

FISCAL IMPACT:

No fiscal impact.

APPROVED ELECTRONICALLY BY:

Michael B. O'Kelly, City Manager
Stephanie Vasquez, City Attorney and/or Susie Altamirano, Assistant City Attorney 461
Manuel Carrillo, Director of Finance and Administrative Services 462

CITY OF BELL GARDENS

OFFICE OF THE CITY MANAGER

AGENDA REPORT

Item 13.

TO:

Honorable Mayor and City Council Members
FROM:

Michael O'Kelly, City Manager
BY:

Daisy Gomez, City Clerk
SUBJECT:

LOCAL COMMISSIONS APPOINTMENT LIST
DATE:

April 22, 2024
RECOMMENDATION:

It is staff's recommendation that the City Council review the Commissions Appointments List and by motion, remove commissioners and/or make appointments to the posted vacancies.

BACKGROUND/DISCUSSION:

The Local Appointments List includes all Bell Gardens Commissions and Commissioners. The City Council adopted Ordinance No. 825 on July 13, 2009 establishing minimum requirements for service on commissions. All Commissioners must reside within the City of Bell Gardens and may only serve on one Commission at a time. Once appointed, each Commissioner must adhere to the requirements of the City's Conflict of Interest Code and state- mandated AB 1234 ethics training and AB 1661 harassment training.

Ordinance No. 825 allows each Council Member to remove or appoint one candidate per Commission, subject to the approval of the Council majority. Appointed Commission Members serve terms that coincide with the term of the Council Member who made the appointment.

CONCLUSION:

After an appointment is made, Commission members will receive their Oath of Office before beginning service with their respective Commission at the next regularly scheduled Commission meeting. The City Clerk's Office will arrange for the proper filing of Conflict of Interest Code forms and schedule trainings for AB 1234 and AB 1661.

FISCAL IMPACT:

No fiscal impact.

ATTACHMENTS:

Description
Exhibit 1 - Notice of Vacancies
APPROVED ELECTRONICALLY BY:

CITY OF BELL GARDENSNOTICE OF COMMISSION VACANCIESAND ACTIVE COMMISSIONERS

EDUCATION COMMISSION

PLANNING COMMISSION

RECREATION, CULTURAL AND YOUTH COMMISSION

SENIOR CITIZEN COMMISSION

TRAFFIC AND SAFETY COMMISSION
The City Council is seeking applications for the following vacancies:

Meeting Date: Second Thursday of every month, City Hall Council Chamber, 5:00 p.m. Staff Liaison - Ana Avalos, Recreation and Community Services Supervisor, (562) 806-7650 Meeting Date: Third Wednesday of every month, City Hall Council Chamber, 5:15 p.m. Staff Liaison - Steven Jones, City Planner, (562) 806-7722Ernesto Ramirez Barcena 04/08/2024 Meeting Date: Third Thursday of every month, City Hall Council Chamber, 6:00 p.m. Staff Liaison – Armando Andrade, Recreation and Community Services Supervisor, (562) 806-7650 Meeting Date – Second Wednesday of every month, City Hall Council Chamber, 6:00 p.m. Staff Liaison – Diana Ortiz, Recreation and Community Services Supervisor (562) 806-7650 Meeting Date – First Tuesday of every month, City Hall Council Chamber, 5:30 p.m. Staff Liaison – Bernardo Iniguez , Director of Public Works/Facilities (562) 806-7770 Applicants must be residents of the City. No person previously convicted of a felony in this state or elsewhere shall bepermitted to serve on any City Commission. Before assuming the duties of a commissioner, each person appointed shalltake and file with the City Clerk the same constitutional oath of office required of members of the city council. Anymember of a commission shall be deemed to have resigned from the commission, and his or her office as a member ofthe commission shall automatically vacated, in the event, the member ceases to be a resident of the City or is convictedof a felony. (Bell Gardens Municipal Code Sections 2.68.030, 2.28.030, 2.22.030, 2.35.030) Applications may be obtained from the City Clerk’s Office: 7100 Garfield Ave, Bell Gardens, CA 90201. Applications willbe accepted in the City Clerk’s Office on a continuous basis until an appointment is made. Please call the City Clerk’sOffice at (562) 806-7705 for more information.

Daisy Gomez, City Clerk
Kristina Paulo Barcena 1/9/2023Miguel Flores Chavez 3/22/2021Victoria Mirembe Gomez 11/13/2023Jeanette Beltran Pulido 12/11/2023VACANT Sanchez 8/30/2023 Miguel De La Rosa Chavez 1/11/2021Gustavo Mendez Gomez 8/28/2023Andrew Leon Pulido 11/13/2023Oscar Boado Sanchez 9/11/2023 Isabel Duron Barcena 1/9/2023Erika Cabrera Chavez 3/11/2024Katelynn Cabrera Gomez 10/23/2023Cindy Alvarado Pulido 2/27/2023Cecilia Diaz-Jimenez Sanchez 1/23/2023 Ana Maria Sanchez FloresBarcena 1/9/2023VACANT Chavez 3/12/2024Monica Kakimoto Gomez 1/22/2024VACANT Pulido 4/8/2024Stephanie Perez Sanchez 1/23/2023 David Heredia Barcena 1/9/2023Carlos Jose Barrera Chavez 1/11/2021Raul Velasco Gomez 10/9/2023Jayson Gavilanes Pulido 1/11/2021Hugo Alvarado Sanchez 1/9/2023

NAME APPOINTED BY VACANCYPOSTED APPOINTMENTDATE
464Exhibit 1

CITY OF BELL GARDENS

OFFICE OF THE CITY MANAGER

AGENDA REPORT

Item 14.

TO:

Honorable Mayor and City Council Members
FROM:

Michael B. O'Kelly, City Manager
BY:

Gustavo J. Romo, Deputy City Manager/Community Development Director SUBJECT:

DIRECTION FOR CONTINUATION OR WITHDRAWAL

FROM BELL GARDENS

MEMBERSHIP IN THE GATEWAY CITIES AFFORDABLE HOUSING TRUST (GCAHT), A JOINT POWERS AUTHORITY ("JPA")
DATE:

April 22, 2024
RECOMMENDATION:

It is staff’s recommendation that the City Council direct staff to:

1 .

Continue membership in the Gateway Cities Affordable Housing Trust and take no further action; OR 2 .

Withdraw from the Gateway Cities Affordable Housing Trust and have staff provide a letter to the Gateway Cities Council of Governments prior to the June 30, 2024, deadline to withdraw at no cost.

BACKGROUND/DISCUSSION:

On March 13, 2023, the City Council approved a Joint Exercise of Powers Agreement for membership in the Gateway Cities Affordable Housing Trust and authorized the City Manager to execute the Agreement with the understanding that the City had until June 30, 2024, to withdraw without incurring any membership fee costs.

However, should the City decide to continue membership, the $15,000 annual fee would be due on July 1, 2024, and every year thereafter. After July 1, 2024, withdrawal from membership would require six (6)-months’ notice.

Since the creation of the Housing Trust, staff has approached housing developers, including Western Pacific Holdings (WPH), who is currently working on the land use entitlements and clean-up of the former Berk Oil site and the development of 100 affordable housing units. Other than WPH, no other developers have shown interest in pursuing properties in the City for the purpose of building affordable housing. WPH didn't express interest in pursuing the 2024 funding. Since there are no other projects currently in the works that could take advantage of this funding, staff is requesting direction from Council on whether to continue membership or withdraw. Should the City Council elect to continue membership, a total of $15,000 will be due and payable to the Gateway Cities Council of Governments Affordable Housing Trust on July 1, 2024, and every year thereafter. The City can also decide to continue membership in hope that additional affordable housing opportunities will present themselves soon.

Presently, a total of 19 cities have joined the GCAHT JPA. The Trust is governed by a nine-member Board of Directors (Board). Pursuant to the JPA By-Laws, the Board is comprised of seven elected officials and two housing specialists whose governing body is a member of Trust and appointed by the Gateway Cities Council of Governments Board. These seven elected officials and two housing specialists are from the following membership cities but are committed to representing every member city:

1. Chair Fernando Dutra (City of Whittier)

2. Vice Chair Salvador Melendez (City of Montebello)
465

3. Board Member Jeff Wood (City of Lakewood)

4. Board Member Kevin Lainez (City of Commerce)

5. Board Member Megan Kerr (City of Long Beach)

6. Board Member Ana Maria Quintana (City of Bell)

7. Board Member Edward Wilson (City of Signal Hill)

8. Board Member Carol Averell
Housing Manager (City of South Gate)

9. (Vacant)
(Pending Another Housing Experienced Person)
Refer to the attached Exhibit 1, “March 13, 2023, Agenda Report and Attachments” for additional background.

ENVIRONMENTAL REVIEW:

Pursuant to the California Environmental Quality Act (“CEQA”), Guideline Sections No. 15060(c)(3) and 15061(b)(3) (Common Sense), the proposed actions are exempt from the application of CEQA since the activity is not considered a project.
”’Project’ means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.” Exemptions are for actions which involve no commitment to any specific project which may result in a potentially significant physical impact on the environment.

No CEQA documentation is required.

CONCLUSION:

Continuing in the Trust would support the City achieving the stated goals and objectives of the 6th Cycle Housing Element and support the region as a whole to bring new dollars to help fund more affordable housing development.

To continue membership, no further action is required. However, the City would be required to start paying the annual membership fee of $15,000 starting on July 1, 2024.

FISCAL IMPACT:

Annual membership fees based on city population starting at $15,000 from the General Fund is due July 1, 2024, unless the City provides notice of membership withdrawal by June 30, 2024. Funds would have to be appropriated with the new fiscal year budget adoption to pay the annual fees should the City Council elect to continue being a member of the Trust.

ATTACHMENTS:

Description
Exhibit 1- March 13, 2023, Agenda Report and Attachments APPROVED ELECTRONICALLY BY:

Michael B. O'Kelly, City Manager
Stephanie Vasquez, City Attorney and/or Susie Altamirano, Assistant City Attorney Manuel Carrillo, Director of Finance and Administrative Services 466
467Exhibit 1
468Exhibit 1
469Exhibit 1
470Exhibit 1
471Exhibit 1
472Exhibit 1
473Exhibit 1
474Exhibit 1
475Exhibit 1
476Exhibit 1
477Exhibit 1
478Exhibit 1
479Exhibit 1
480Exhibit 1
481Exhibit 1
482Exhibit 1
483Exhibit 1
484Exhibit 1
485Exhibit 1
486Exhibit 1
487Exhibit 1
488Exhibit 1
489Exhibit 1
490Exhibit 1
491Exhibit 1
492Exhibit 1
493Exhibit 1
494Exhibit 1

CITY OF BELL GARDENS

OFFICE OF THE CITY MANAGER

AGENDA REPORT

Item 15.

TO:

Honorable Mayor and City Council Members
FROM:

Michael B. O’Kelly, City Manager
BY:

Manuel Carrillo, Director of Finance and Administrative Service Jules Tak
, Accounting Manager
SUBJECT:

ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR FISCAL YEAR 2022-23 DATE:

April 22, 2024
RECOMMENDATION:

It is staff recommendation that the following reports for the year ended on June 30, 2023, be reviewed, discussed, and filed by the City Council.

Annual Comprehensive Financial Report (ACFR);
Single Audit Report of Schedule of Expenditures of Federal Awards; Report on Communication with Those Charged with Governance; and Independent Accountant's Report on Agreed-Upon Procedures Applied to Appropriation Limit Worksheets.

BACKGROUND/DISCUSSION:

The City is required to conduct an annual independent audit of its financial statements. The City contracted with Gruber and Lopez, Inc., Certified Public Accountants to conduct the audit. The Auditors performed procedures to obtain audit evidence about the amounts and disclosures in the financial statements in order to provide an opinion of the financial statements and to report on compliance, internal controls and suggestions for improvements.

The auditors have issued an unmodified ("clean") audit opinion meaning that the financial statements (Exhibit 1) present fairly in all material respects, the financial position of the governmental activities, business-type activities, each major fund, and the aggregate remaining fund information of the City of Bell Gardens as of June 30, 2023 and the changes in financial position for the 2022-23 fiscal year in accordance with accounting principles generally accepted in the United States. The ACFR presents the City's audited financial information and financial disclosures. The ACFR has been submitted to the Government Finance Officers Association to be considered for the Certificate in Achievement for Excellence in Financial Reporting.

The Single Audit Report on Federal Awards (Exhibit 2) received an unmodified opinion from the Auditors. The Auditors opined that the City complied in all material respects with the compliance requirements described in the OMB Compliance Supplement for each major federal program. There were six programs that were audited for fiscal year June 30, 2023; U.S. Department of Housing and Urban Development (CDBG Grants) $416,129; U.S.

Department of Justice (Public Safety Partnership and Community Policing Grants & Equitable sharing Program - Asset Forfeiture) $175,824; U.S Department of Transportation (State & Community Highway Safety Cluster) $122,036; U.S. Department of Treasury (COVID-19 Relief Fund) $1,647; U.S. Department of Homeland Security (COVID-19-Homeland Security Grant Program) $94,985 and U.S Department of Agriculture (Child and Adult Care Food Program) $25,000.

495
The City did conduct a Single Audit this year due to meeting the annual minimum dollar threshold of $750,000 in federal expenditures (Exhibit 2). The Single Audit Act of 1984 and Single Audit Act Amendments of 1996 establish uniform audit requirements for local governments expending federal awards greater than $750,000 a year. The audit is on an "entity-wide" basis and imposes additional requirements in relation to testing of, and reporting on, internal control and compliance with laws and regulations related to grants and contracts applicable to the City's federally funded programs.

The Report on Communication with those Charged with Governance (Exhibit 3) reports on significant audit matters.

The report notes that there were no difficulties encountered during the audit, no significant adjustments as a results of audit procedures, and no disagreements with management.

The Independent Accountants' Report on Agreed-Upon Procedures Applied to Appropriations Limit Worksheets (Exhibit 4) reports the results of specific procedures on the City's calculation of the appropriation limit in accordance with guidelines published by the League of California Cities.

No exceptions were noted.

CONCLUSION:

The auditor reports for the audit performed for the fiscal year of June 30, 2023, have been presented to the City Council with a recommendation to review, discuss, and file.

FISCAL IMPACT:

No fiscal impact.

ATTACHMENTS:

Description
Exhibit 1 - Annual Comprehensive Financial Report
Exhibit 2 - Single Audit Report on Schedule of Expenditures of Federal Funds Exhibit 3 - Report on Communication with those Charged with Governance Exhibit 4 - Report on Agreed-Upon Procedures Applied to Appropriations Limit Worksheet APPROVED ELECTRONICALLY BY:

Michael B. O'Kelly, City Manager
Stephanie Vasquez, City Attorney and/or Susie Altamirano, Assistant City Attorney Manuel Carrillo, Director of Finance and Administrative Services 496

CITY OF BELL GARDENS,

CALIFORNIA

ANNUAL COMPREHENSIVE FINANCIAL REPORT

Year Ended June 30, 2023

Prepared by:

Finance and Administrative
Services Department

497Exhibit 1

(this page intentionally left blank)
498Exhibit 1

CITY OF BELL GARDENS

Annual Comprehensive Financial Report

Year Ended June 30, 2023

TABLE OF CONTENTS
P a g e
INTRODUCTORY SECTION:

Letter of Transmittal i
City Officials v
Organization Chart vi
GFOA Certificate of Achievement for Excellence in Financial Reporting vii

FINANCIAL SECTION:

Independent Auditors’ Report 1

Managements’ Discussion and Analysis 4

Basic Financial Statements
Government-wide Financial Statements:

Statement of Net Position 13
Statement of Activities 14
Fund Financial Statements:

Balance Sheet – Governmental Funds: 16
Reconciliation of the Balance Sh eet of Governmental Funds to Statement of Net Position 17
Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds 18
Reconciliation of Statement of Revenues, Expenditures and Changes in Fund Balances of Govern mental Funds to Statement of Activities 19 Statement of Fund Net Position – Proprietary Funds 20 Statement of Revenues, Expens es and Changes in Fund Net Position – Proprietary Funds 21
Statement of Cash Flows – Proprietary Funds 22
Statement of Fiduciary Net Position – Private-Purpose Trust Funds 23 Statement of Changes in Fiduciary Net Position – Private-Purpose Trust Funds 24 Notes to the Financial Statements 25

499Exhibit 1

CITY OF BELL GARDENS

Annual Comprehensive Financial Report

Year Ended June 30, 2023

TABLE OF CONTENTS, (CONTINUED)
P a g e
FINANCIAL SECTION, (CONTINUED):

Required Supplementary Information
Budgetary Comparison Schedule – General Fund 72
Budgetary Comparison Schedule – Low and Moderate Housing Special Revenue Fund 73
Notes to Required Supp lementary Information 74
Schedule of Proportionate Share of the Net Pension Liability and Related Ratios - Miscellaneous 75
Schedule of Plan Contribu tions – Defined Benefit Pension Plan - Miscellaneous 76 Schedule of Proportionate Share of the Net Pension Liability and Related Ratios - Safety 77
Schedule of Plan Contri butions – Defined Benefit Pension Plan - Safety 78 Schedule of Changes in the Net OP EB Liability and Related Ratios 79 Schedule of Plan Contri butions – OPEB Plan 80

Supplementary Information
Combining Balance Sheet – Nonmajor Governmental Funds 86 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Governmental Funds 90

Budgetary Comparison Schedules – Special Revenue Funds:

Public Safety Augmentation (PSAF) 94
COPS State (SLESF) 95
State Gas Tax 96
Asset Forfeiture 97
Waste Management 98
Community Development Block Grant 99
Proposition A 100
Proposition C 101
Air Quality Improvement 102
Recycling Grant 103
Post-Employment Benefits 104
Measure R 105
COPS Grant 106
Anson Ford Park 107
500Exhibit 1

CITY OF BELL GARDENS

Annual Comprehensive Financial Report

Year Ended June 30, 2023

TABLE OF CONTENTS, (CONTINUED)
P a g e

Supplementary Information, (Continued)
Measure M 108
CalHome Grant 109
Office of Traffic Safety Grant 110

Budgetary Comparison Schedules – Capital Projects Funds:

Transportation Development Act 111
Capital Improvement Projects 112

STATISTICAL SECTION:

Net Position by Component 115
Changes in Net Position 116
Program Revenues by Function/Program 118
Fund Balances – Governmental Funds 119
Changes in Fund Balances – Governmental Funds 120
Tax Revenues by Source – Governmental Funds 122
Assessed Value and Estimated Actu al Value of Taxable Property 123 Direct and Overlapping Property Tax Rates 124
Principal Property Tax Payers 125
Property Tax Levies and Collections 126
Taxable Sales by Category 127
Principal Sales Tax Remitters 128
Ratios of Outstanding Debt by Type 129
Ratios of General Bonded Debt Outstanding 130
Direct and Overlapping Governmental Activities Debt 131 Legal Debt Margin Information 133
Pledged Revenue Coverage 134
Demographic and Economic Statistics 135
Full-time Equivalent City Government Employees by Function/Program 136 Principal Employers 137
Operating Indicators by Function/Program 138
Capital Asset Statistics by Function/Program 139

501Exhibit 1

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502Exhibit 1
viii

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503Exhibit 1
1 438 Old Newport Blvd – Newport Beach, CA 92663
Phone (949) 346-2900 – www.gruberlopezinc.com

To the Honorable Mayor and Members of the City Council
City of Bell Gardens, California

Independent Auditors’ Report

Opinions

We have audited the accompanying financial statements of the governmental activities, business-type activities, each major fund, and the aggregate remaining fund informati on of the City of Bell Gardens, California, as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the City of Bell Gardens, California’s basic financial statements as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activity, each major fund, and the aggregate remaining fund information of the City of Bell Gardens, California, as of June 30, 2023, and the respective changes in financial position and where applicable cash flows (thereof) for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Emphasis of Matter

As described in Note 1 to the basic financial statem ents, the City adopted the provisions of Governmental Accounting Standards Board Statement No. 91 and 96. Our opinion is not modified with respect to this matter.

Basis for Opinions

We conducted our audit in accordance with auditing standa rds generally accepted in the United States of America Our responsibilities under those standards are further describ ed in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are re quired to be independent of the City of Bell Gardens, California, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficien t and appropriate to provide a basis for our audit opinions.

Responsibilities of Management for the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control releva nt to the preparation and fair presenta tion of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate wh ether there are conditions or events, considered in the aggregate, that ra ise substantial doubt about the City of Bell Gardens, California’s ability to continue as a going concern for twelve months beyond th e financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whet her the financial statements as a whole are free from material misstatement, whether due to fraud or error, a nd to issue an auditor’s report that includes our opinions.

Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standa rds will always detect a material misstatement when it exists. The risk of not detecting a material misstatemen t resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are consid ered material if there is a substantial likelihood that, individually or in the aggregate, they would influen ce the judgment made by a reasonable user based on the financial statements.
504Exhibit 1
City Council
City of Bell Gardens, California

2 In performing an audit in accordance with generally accepted auditing standards, we:

 Exercise professional judgment and maintain professional skepticism throughout the audit.

 Identify and assess the risks of materi al misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures res ponsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

 Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for th e purpose of expressing an opinion on the effectiveness of the City of Bell Gardens, California’s internal control. Accordingly, no such opinion is expressed.

 Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.

 Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City of Bell Gardens, California’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, the schedules of proportionate share of the net pension liability and the schedules of contributions for the CalPERS miscellaneous and safety pens ion plans, the schedule of changes in the net other postemployment benefit (OPEB) liability and related ratios, and the budge tary comparison schedules for the General Fund and Major Special Revenue Funds, identifie d as Required Supplementary Information (RSI) in the accompanying table of contents, be presented to supplemen t the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of fina ncial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the RSI in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of prepari ng the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statem ents, and other knowledge we obtained during our audit of the basic financial st atements. We do not express an opinion or provide any assurance on the RSI because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information

Our audit was conducted for the purpose of forming opini ons on the financial statements that collectively comprise the City of Bell Gardens basic financial statements. The intr oductory section, the combining and individual fund financial statements and schedules, and sta tistical section, as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the basic financial statements.

Such information is the responsibility of management a nd was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial stat ements or to the basic financial stat ements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financ ial statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole. 505Exhibit 1
City Council
City of Bell Gardens, California

3 Other Information

Management is responsible for the other information included in the a nnual report. The other information comprises the introductory and statisti cal sections but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.

In connection with our audit of the b asic financial statements, our responsibilit y is to read the other information and consider whether a material inc onsistency exists between the other information and the basic financial statements, or the other information otherwise appear s to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards , we have also issued our report dated _______ __, 2024, on our consideration of the City of Bell Gardens internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to d escribe the scope of our testing of inte rnal control over financial reporting and compliance and the results of that testing, and not to provi de an opinion on the effectiveness of the City of Bell Gardens internal control over financial reporting or on comp liance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City of Bell Gardens internal control over financial reporting and compliance.

Gruber and Lopez, Inc.

Newport Beach, California
_________ __, 2024

506Exhibit 1

4 MANAGEMENT’S DISCUSSION AND ANALYSIS
507Exhibit 1

12 Delete (this page intentionally left blank)
508Exhibit 1
Governmental Business-Type
ASSETS Activities Activities Total
Current assets:

Cash and investments (note 2) 38,341,952 $ 28,912 38,370,864 Receivable:

Accounts 3,446,159 307,967 3,754,126 Notes and loans (note 3) 9,563,195 - 9,563,195 Accrued interest 155,115 - 155,115 Leases (note 7) 32,328,183 - 32,328,183 Internal balances (note 4) 6,564,603 (6,564,603) - Advances to Successor Agency 37,423,266 - 37,423,266 Prepaid items 155,959 - 155,959 Due from other governments 2,285,038 - 2,285,038 Total current assets 130,263,470 (6,227,724) 124,035,746 Noncurrent assets:

Cash and investments with fiscal agent (note 2) 429,879 398,447 828,326 Capital assets (note 5):

Non-depreciable 78,064,088 1,011,000 79,075,088 Depreciable, net 23,292,293
5,080,271 28,372,564
Total capital assets 101,356,381 6,091,271 107,447,652 Total noncurrent assets 101,786,260 6,489,718 108,275,978 Total assets 232,049,730 261,994 232,311,724

DEFERRED OUTFLOWS OF RESOURCES
Pensions (note 8) 20,346,430 174,186 20,520,616 OPEB (note 9) 2,988,690 33,567 3,022,257 Total deferred outflows of resources 23,335,120 207,753 23,542,873

LIABILITIES
Current liabilities:

Accounts payable 3,138,889 323,283 3,462,172 Accrued liabilities 437,838 5,152 442,990 Due to other governments 43,574 - 43,574 Interest payable 32,232 8,928 41,160 Unearned revenue 20,344 - 20,344 Deposits payable 321,827 - 321,827 Bonds, notes, and claims payable - due within one year (note 6) 356,782 360,387 717,169 Compensated absences - due within one year (note 6) 1,785,816 - 1,785,816
Total current liabilities 6,137,302 697,750 6,835,052 Noncurrent liabilities:

Bonds, notes, and claims payable - due in more than one year (note 6) 6,473,661 380,212 6,853,873 Net pension liability (note 8) 48,272,683 407,217 48,679,900 Net OPEB liability (note 9) 62,637,666 716,607 63,354,273 Compensated absences - due in more than one year (note 6) 1,785,817 - 1,785,817 Total noncurrent liabilities 119,169,827 1,504,036 120,673,863 Total liabilities 125,307,129 2,201,786 127,508,915

DEFERRED INFLOWS OF RESOURCES
Lease items (note 7) 32,328,183 - 32,328,183 Pensions (note 8) 5,401,645 38,120 5,439,765 OPEB (note 9) 17,280,198 194,082 17,474,280 Total deferred inflows of resources 55,010,026 232,202 55,242,228

NET POSITION
Net investment in capital assets - 5,350,672 5,350,672 Restricted for:

Community development projects - - - Public safety - - - Parks and recreation - - - Capital projects - - - Debt service -
398,447 398,447
Total restricted - 398,447 398,447 Unrestricted 75,067,695 (7,713,360) 67,354,335 Total net position 75,067,695$ (1,964,241) 73,103,454

CITY OF BELL GARDENS
Statement of Net Position
June 30, 2023
Primary Government
See accompanying notes to the basic financial statements. 13509Exhibit 1
Operating Capital Total
Charges for Grants and Grants and Program
Expenses Services Contributions Contributions Revenue
Primary Government:

Governmental activities:

General government 8,911,022 $ 291,666 78,558 - 370,224 Public safety 16,577,971 608,178 670,980 - 1,279,158 Community development 1,337,907 272,017 722,312 - 994,329 Parks and recreation 4,385,797 359,011 12,171 - 371,182 Public works 18,796,667 394,697 6,216,865 9,588,188 16,199,750 Interest and fiscal charges 12,822 - - - - Total governmental activities 50,022,186 1,925,569 7,700,886 9,588,188 19,214,643 Business-type activities:

Water 2,520,634 1,444,768 - - 1,444,768 Golf Course 243,472 197,318 - - 197,318 Total business-type activities 2,764,106 1,642,086 - - 1,642,086 Total primary government 52,786,292$ 3,567,655 7,700,886 9,588,188 20,856,729 General revenues:

Taxes:

Card club gross receipt tax
Property taxes, levied for general purpose
Transient occupancy taxes
Sales taxes
Franchise taxes
Business license taxes
Other taxes
Total taxes
Motor vehicle in lieu - unrestricted
Use of money and property
Other
Transfers

Total general revenues and transfers
Change in net position
Net position - beginning of year, as restated (note 15) Net position - end of year

CITY OF BELL GARDENS
Statement of Activities
For the Year Ended June 30, 2023
See accompanying notes to the basic financial statements. 14 Functions/Programs
Program Revenues
510Exhibit 1
Governmental Business-Type
Activities Activities Total
(8,540,798) - (8,540,798)
(15,298,813) - (15,298,813)
(343,578) - (343,578)
(4,014,615) - (4,014,615)
(2,596,917) - (2,596,917)
(12,822) - (12,822)
(30,807,543) - (30,807,543)
- (1,075,866) (1,075,866)
- (46,154) (46,154)
- (1,122,020) (1,122,020)
(30,807,543) (1,122,020) (31,929,563)
18,895,139 - 18,895,139
1,850,144 - 1,850,144
691,420 - 691,420
7,437,256 - 7,437,256
4,644,973 - 4,644,973
271,908 - 271,908
5,682 - 5,682
33,796,522 - 33,796,522
5,786,292 - 5,786,292
4,393,211 42 4,393,253
186,470 - 186,470
99,399 (99,399) -
44,261,894 (99,357) 44,162,537
13,454,351 (1,221,377) 12,232,974
61,613,344 (742,864) 60,870,480
75,067,695$ (1,964,241) 73,103,454
15 Primary Government
Net (Expense) Revenue and Changes in Net Position
511Exhibit 1
Special Capital
Revenue Projects
Fund Fund
Low and Capital Nonmajor Total
General Moderate Improvement Governmental Governmental
Fund Housing Projects Funds Funds
ASSETS
Cash and investments (note 2) 26,713,483$ 2,280,257 1,095,328 8,252,884 38,341,952 Receivables:

Accounts 3,365,976 40,418 - 39,765 3,446,159 Notes and loans (note 3) 78,287 6,744,739 - 2,740,169 9,563,195 Interest 121,690 7,355 - 26,070 155,115 Leases (note 7) 32,328,183 - - - 32,328,183 Prepaid items 155,959 - - - 155,959 Due from other governments - - 727,138 1,557,900 2,285,038 Due from other funds (note 4) 7,458,560 - - - 7,458,560 Advances to Successor Agency 37,423,266 - - - 37,423,266 Restricted assets:

Cash and investments with
fiscal agents (note 2) - - 429,879 - 429,879 Total assets 107,645,404$ 9,072,769 2,252,345 12,616,788 131,587,306

LIABILITIES
Accounts payable 1,292,373 $ - 1,489,424 357,092 3,138,889 Accrued liabilities 437,838 - - - 437,838 Due to other governments - - - 43,574 43,574 Deposits payable 218,932 - - 102,895 321,827 Unearned revenue - - 20,344 - 20,344 Due to other funds (note 4) - - - 893,957 893,957 Total liabilities 1,949,143 - 1,509,768 1,397,518 4,856,429

DEFERRED IN FLOWS OF RESOURCES
Lease items 32,328,183 - - - 32,328,183 Unavailable revenue 37,959,330 6,785,157 1,822,134 3,450,465 50,017,086 Total deferred in flows
of resources 70,287,513
6,785,157 1,822,134 3,450,465 82,345,269 FUND BALANCES (note 12)
Nonspendable 6,798,849 - - - 6,798,849 Restricted - 2,090,777 - 7,906,057 9,996,834 Assigned 25,059,763 - - 144,490 25,204,253 Unassigned 3,550,136 196,835 (1,079,557) (281,742) 2,385,672 Total fund balances (deficits) 35,408,748 2,287,612 (1,079,557) 7,768,805 44,385,608 Total liabilities, deferred
inflows and fund balances 107,645,404$
9,072,769 2,252,345 12,616,788 131,587,306 Governmental Funds
June 30, 2023
Balance Sheet

CITY OF BELL GARDENS
See accompanying notes to the basic financial statements. 16512Exhibit 1
Fund balances of governmental funds 44,385,608 $
Amounts reported for governmental activities in the statement of net position are different because:

Capital assets used in governmental activities were not current financial resources. Therefore, they were not reported in the governmental funds balance sheet. Capital assets were adjusted as follows:

Capital assets 154,415,373
Accumulated depreciation (53,058,992)
Certain revenues were not available to pay for current-period expenditures and, therefore, were deferred in funds. 50,017,086
Long-term debt and compensated absences have not been included in the governmental fund activity:

Lease Revenue Refunding Bonds (4,445,000)
Unamortized bond premiums/discounts (437,156)
Lease Payable (1,996,138)
CJPIA General Liability Retrospective Deposit Liability 47,851 Compensated absences (3,571,633)
Proportionate share of net pension liability has not been included in governmental fund activity. (48,272,683) Deferred outflows related to contributions made after the actuarial measurement date for the net pension liability. 5,568,817
Deferred outflows and inflows related to unrecognized actuarial gains and losses for the net pension liability. 9,375,968
Net OPEB liability has not been included in governmental fund activity. (62,637,666) Deferred outflows and inflows related to unrecognized actuarial gains and losses for the net OPEB liability. (14,291,508)
Accrued interest payable for the current portion of interest due on Bonds has not been reported in the governmental funds. (32,232)
Net position of governmental activities 75,067,695 $

CITY OF BELL GARDENS
Reconciliation of the Governmental Funds Balance Sheet
to the Government-wide Statement of Net Position
June 30, 2023
See accompanying notes to the basic financial statements. 17513Exhibit 1
Special Capital
Revenue Projects
Fund Fund
Low and Capital Nonmajor Total
General Moderate Improvement Governmental Governmental
Fund Housing Projects Funds Funds
Revenues:

Taxes and assessments 29,870,403 $ - - 6,011,066 35,881,469 Licenses and permits 438,830 - - - 438,830 Intergovernmental 6,767,328 - 6,528,667 4,119,888 17,415,883 Charges for services 326,019 - - 375,709 701,728 Use of money and property 5,064,790 50,157 23 73,673 5,188,643 Fines and forfeitures 492,407 - - 22,713 515,120 Contributions 250,000 - - - 250,000 Other revenue 1,607,908 - - 110 1,608,018 Total revenues 44,817,685 50,157 6,528,690 10,603,159 61,999,691 Expenditures:

Current:

General government 7,442,207 - - 1,369,571 8,811,778 Public works 4,875,644 - - 7,186,449 12,062,093 Public safety 18,054,000 - - 385,227 18,439,227 Community development 1,259,921 - - 77,986 1,337,907 Parks and recreation 4,245,632 - - 140,165 4,385,797 Capital outlay 1,461,934 - 6,198,650 1,555,052 9,215,636 Debt service:

Interest and fiscal charges 283,507 - - - 283,507 Principal retirement 323,002
- - - 323,002 Total expenditures 37,945,847 - 6,198,650 10,714,450 54,858,947 Excess (deficiency) of revenues
over (under) expenditures 6,871,838 50,157 330,040 (111,291) 7,140,744 Other financing sources (uses):

Transfers in (note 4) 145,729 146,678 - 2,057,511 2,349,918 Transfers out (note 4) (1,952,324) - (195) (298,000) (2,250,519)

Total other financing sources (uses) (1,806,595) 146,678 (195) 1,759,511 99,399 Net change in fund balances 5,065,243 196,835 329,845 1,648,220 7,240,143 Fund balances (deficit), beginning
of year, as restated (note 15) 30,343,505 2,090,777 (1,409,402) 6,120,585 37,145,465 Fund balances (deficit), end of year 35,408,748$ 2,287,612 (1,079,557) 7,768,805 44,385,608 Statement of Revenues, Expenditures and Changes in Fund Balances

CITY OF BELL GARDENS
Governmental Funds
For the Year Ended June 30, 2023
See accompanying notes to the basic financial statements. 18514Exhibit 1
Changes in fund balances of governmental funds 7,240,143 $ Amounts reported for governmental activities in the statement of activities are different because:

Governmental funds report capital outlay as expenditures. However, in the government-wide statement of activities, the cost of those assets are allocated over their estimated useful lives as depreciation expense. This is the amount by which depreciation expense exceeded capital outlays in the current year, net of disposals and internal service fund activity.

Capital outlay 2,481,062
Depreciation expense (2,439,675)
Repayment of bond principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net position. The issuance of new debt is revenue in the governmental funds, but increases long-term liabilities in the statement of net position.

Repayment of long-term debt:

Lease Revenue Refunding Bonds 200,000
CJPIA General Liability Retrospective Payable 244,965
Amortization bond premiums/discounts 24,127
Capital Lease Payable 123,002
Accrued interest for long-term liabilities. This is the net change in accrued interest for the current period 1,593 Revenues in the government-wide statement of activities that did not provide current financial resources were not reported as revenues in the governmental funds. 1,377,447 Compensated absences expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds (224,301) Pension obligation expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in the governmental funds. 6,098,535 To record as an expense the net change in other post employment benefits liability in the statement of activities. (1,672,547)

Change in net position of governmental activities 13,454,351 $ 19 CITY OF BELL GARDENS
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balance to the Governmental-wide Statement of Activities For the Year Ended June 30, 2023
See accompanying notes to financial statements.
515Exhibit 1
Golf
Water Course Totals
ASSETS
Current assets:

Cash and investments (note 2) - $ 28,912 28,912 Receivables:

Accounts 307,967 - 307,967 Restricted:

Cash and investments with fiscal agents (note 2) 398,447 - 398,447
Total current assets 706,414 28,912 735,326 Noncurrent assets:

Capital assets, net of accumulated depreciation (note 5): 6,091,271 - 6,091,271 Total noncurrent assets 6,091,271 - 6,091,271 Total assets 6,797,685 28,912 6,826,597

DEFERRED OUTFLOWS OF RESOURCES
Pensions (note 8) 174,186 - 174,186 OPEB (note 9) 33,567 - 33,567 Total deferred outflows of resources 207,753 - 207,753

LIABILITIES
Current liabilities:

Accounts payable 314,766 8,517 323,283 Accrued liabilities - 5,152 5,152 Interest payable 8,928 - 8,928 Due to other funds (note 4) 6,564,603 - 6,564,603 Long-term debt - due within one year (note 6) 360,387 - 360,387 Total current liabilities 7,248,684 13,669 7,262,353 Noncurrent liabilities:

Long-term debt - due in more than one year (note 6) 380,212 - 380,212 Net pension liability (note 8) 407,217 - 407,217 Net OPEB liability (note 9) 716,607 - 716,607 Total noncurrent liabilities 1,504,036 - 1,504,036 Total liabilities 8,752,720 13,669 8,766,389

DEFERRED INFLOWS OF RESOURCES
Pensions (note 8) 38,120 - 38,120 OPEB (note 9) 194,082 - 194,082 Total deferred inflows of resources 232,202 - 232,202

NET POSITION
Net investment in capital assets 5,350,672 - 5,350,672 Restricted for:

Debt service 398,447 - 398,447 Unrestricted (7,728,603)
15,243 (7,713,360)
Total net position (1,979,484) $ 15,243 (1,964,241)

CITY OF BELL GARDENS
Statement of Fund Net Position
Proprietary Funds
June 30, 2023
Business-Type Activities - Enterprise Funds
See accompanying notes to the basic financial statements. 20516Exhibit 1
Golf
Water Course Totals
Operating revenues:

Sales and service charges 1,431,248 $ 187,283 1,618,531 Other revenues 13,520 10,035 23,555 Total operating revenues 1,444,768 197,318 1,642,086 Operating expenses:

Administration and general 292,814 66,473 359,287 Cost of sales and services 2,014,855 176,999 2,191,854 Depreciation (note 5) 168,182 - 168,182 Total operating expenses 2,475,851 243,472 2,719,323 Operating income (loss) (1,031,083) (46,154) (1,077,237) Non-operating revenues (expenses):

Investment income 22 20 42 Interest expense and fees (44,783) - (44,783) Total non-operating revenues (expenses) (44,761) 20 (44,741) Income (loss) before transfers (1,075,844) (46,134) (1,121,978) Transfers in (note 4) - 46,135 46,135 Transfers out (note 4) (145,534) - (145,534) Change in net position (1,221,378) 1 (1,221,377) Net position (deficit), at beginning of year (758,106) 15,242 (742,864) Net position (deficit), end of year (1,979,484) $ 15,243 (1,964,241) Business-Type Activities - Enterprise Funds

CITY OF BELL GARDENS
Statement of Revenues, Expenses and Changes in Fund Net Position Proprietary Funds
For the year ended June 30, 2023
See accompanying notes to the basic financial statements. 21517Exhibit 1
Golf
Water Course Totals
Cash flows from operating activities:

Cash received from customers and users 1,454,138 $ 197,318 1,651,456 Cash paid to suppliers for goods or services (2,067,194) (174,841) (2,242,035) Cash paid to employees for services (293,978) (66,473) (360,451) Net cash provided (used by) operating activities (907,034) (43,996) (951,030) Cash flows from noncapital financing activities:

Transfers in (out) from/to other funds (145,534) 46,135 (99,399) Cash borrowed from other funds 1,446,815 - 1,446,815 Net cash provided (used by) noncapital financing activities 1,301,281 46,135 1,347,416 Cash flows from capital and related financing activities:

Principal paid on capital debt (345,000) - (345,000) Interest paid on capital debt (49,266) - (49,266) Net cash provided (used by) capital and related financing activities (394,266) - (394,266) Cash flows from investing activities:

Investment income 22 31 53 Net cash provided (used by) investing activities 22 31 53 Net increase (decrease) in cash and cash equivalents 3 2,170 2,173 Cash and equivalents, beginning of year 398,444 26,742 425,186 Cash and equivalents, end of year 398,447 $ 28,912 427,359 FINANCIAL STATEMENT PRESENTATION:

Cash and investments - $ 28,912 28,912 Cash and investments with fiscal agent 398,447 - 398,447 Total cash, cash equivalents, and investments 398,447 $ 28,912 427,359 Reconciliation of operating income to net cash provided by operating activities:

Operating income (loss) (1,031,083) $ (46,154) (1,077,237) Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities:

Depreciation 168,182 - 168,182 Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable 9,370 - 9,370 Increase (decrease) in accounts payable (52,339) 2,158 (50,181) Increase (decrease) in accrued liabilities - - - Increase (decrease) in net pension liability and net OPEB liability, net of deferred outflows and inflows (1,164) - (1,164) Total adjustments 124,049 2,158 126,207 Net cash provided (used) by operating activities (907,034) $ (43,996) (951,030) Business-Type Activities - Enterprise Funds

CITY OF BELL GARDENS
Statement of Cash Flows
Proprietary Funds
For the year ended June 30, 2023
See accompanying notes to the basic financial statements. 22518Exhibit 1
Private-
Purpose Trust
Fund
Successor
Agency of the
Former
Community
Development
Commission
ASSETS
Cash and investments (notes 2 and 13) 2,197,419 $
Receivables:

Taxes 4,346
Notes and loans (note 13) 2,313,953
Accrued interest 5,050
Restricted assets:

Cash and investments with fiscal agents (notes 2 and 13) 2,757,572 Capital assets:

Capital assets, not being depreciated (note 13) 1,773,001

Total assets 9,051,341

DEFERRED OUTFLOWS OF RESOURCES
Pensions (note 8) 65,204

LIABILITIES
Current liabilities:

Accounts payable 7,939
Interest payable 250,926
Deposits 37,000
Long-term liabilities:

Due in one year (note 13) 1,178,716
Due in more than one year (note 13) 49,133,939
Net pension liability (note 8) 686,518
Net OPEB liability (note 9) 1,165,830
Total liabilities 52,460,868

DEFERRED INFLOWS OF RESOURCES
Pensions (note 8) 237,758

NET POSITION
Held in trust for other purposes (43,582,081)
Total net position (43,582,081) $

CITY OF BELL GARDENS
Statement of Fiduciary Net Position
Private-Purpose Trust Funds
June 30, 2023
See accompanying notes to the basic financial statements. 23519Exhibit 1
Private-
Purpose Trust
Fund
Successor
Agency of the
Former
Community
Development
Commission
Additions:

Taxes 2,871,148 $
Investment income 60,422
Other income 51,973
Total additions 2,983,543
Deductions:

Contractual services 70,989
Interest expense 959,619
Contributions to other governments 250,000
Total deductions 1,280,608
Change in net position 1,702,935
Net position (deficit), beginning of year (45,285,016)
Net position (deficit), end of year (43,582,081) $

CITY OF BELL GARDENS
Statement of Changes in Fiduciary Net Position
Private-Purpose Trust Funds
For the year ended June 30, 2023
See accompanying notes to the basic financial statements. 24520Exhibit 1

25 CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS

Year ended June 30, 2023

(1) Organization and Summary of Significant Accounting Policies

a. Description of the Reporting Entity

This report includes all fund types of th e City of Bell Gardens (the “primary government”), as well as the Bell Gardens Fi nancing Authority (the Authority). The Authority meets the definition of a “compone nt unit”, and is pres ented on a “blended” basis, as if it were part of the primary government. Although the Authority is a legally separate entity, the governing board of the entity is comprised of the same membership as the City Council. The City may impose it s will on the component unit, including the ability to appoint, hire, reassign or dismi ss management. There is also a financial benefit/burden relationship between the City and the Authority.

The City of Bell Gardens, California (C ity) was incorporated on August 1, 1961. The City operates under a Council-Manager form of government and provides the following services: general government, public safet y, public works, recreation and community development.

The Bell Gardens Financing Authority (A uthority) was created on November 28, 1988, under a Joint Exercise of Powers Agreemen t by and between the City of Bell Gardens and the former Bell Gardens Community Development Commission (former Commission). The Authority was established pursuant to the laws of the State of California with authority to acquire the former RDA’s bonds as provided in Section 6588 of the Government Code of the State of California. The former RDA has determined that “significant public benefits” will be deri ved by the former RDA in undertaking the issuance of the bonds and their sale to the Authority and re sale to the underwriter, in furtherance of the corporate purposes of the former RDA.

Separate financial statements are not prepared for the Authority.

b. Government-wide and Fund Financial Statements

The government-wide financial statements (i.e ., the statement of net position and the statement of activities) report information on all of activ ities of the primary government.

For the most part, the effect of inte rfund activity has been removed from these statements, and elimination have been made to minimize the double co unting of internal activities. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported sepa rately from business-t ype activities, which rely to a significant extent on fees and charges for support.

The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use or directly benefit from goods, 521Exhibit 1

26 CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS

(Continued)

(1) Organization and Summary of Signif icant Accounting Policies (continued)

b. Government-wide and Fund Fina ncial Statements (continued)

services, or privileges provi ded by a given function or segment and 2) grants and contributions that are restrict ed to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues.

Separate financial statements are provided fo r governmental funds, proprietary funds and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individua l governmental funds and the major individual enterprise fund are reported as separate columns in the fund financial statements.

c. Measurement Focus, Basis of Accounti ng, and Financial Statement Presentation

The government-wide and proprietary fund fina ncial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recoded when earned and expenses are recorded when the liability is incurred, regardless of the timing of the related cash flows. Property taxe s are recognized as revenues in the year for which they are levie d. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.

Governmental fund financial statements are reported using the current financial resources measurement focus and the mo dified accrual basis of accoun ting. Under this method, revenues are recognized when measureable and available. Revenues are considered to be available when they are collec tible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 90 days of the end of the current fiscal year.

Expenditures generally are r ecorded when a liability is incurred, as under accrual accounting. However, debt se rvice expenditures, as well as expenditures related to compensated absences, claims and judgments are not recognized until paid.

The City’s fiduciary funds consist of a private purpose trust fund which is reported using the “economic resources” measurement focus and the accrual basis of accounting. Under the accrual basis of accounting, revenues are re cognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred.

Property taxes, charges for servic es, and interest associated w ith the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. A ll other revenue items are consid ered to be measureable and available only when cash is received by the government.

The City reports the following major governmental funds:
522Exhibit 1

27 CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS

(Continued)

(1) Organization and Summary of Signif icant Accounting Policies (continued)

c. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (cont.)

 The General Fund is the general operating fund of the City. All ge neral tax revenues and other receipts that are not allocated by law of contractual agreement to some other fund are accounted for in this fund. General operating expenditures not paid through other funds are paid from the General Fund.
 The Low and Moderate Housing Fund was established to account for the assets of the former Community Development Commission’s Low and Moderate Housing Fund.

The fund accounts for transactions related to affordable housing activities. Revenues include repayments of loans that will be recorded for use into this fund for affordable housing activities.
 Capital Improvement Projects Fund – These funds account for the financial resources to be used for the acquisition or construction of major capital facilities.

The City reports the following major proprietary fund:
 The Water Enterprise Fund accounts for the financial activity of the City’s water utility. The costs of providi ng these services to the gene ral public are financed or recovered primarily through user charges.

Additionally, the City reports the following fund types:
 Special Revenue Funds – These funds account for proceeds of specific revenue sources that are legally restricted or otherwise assigned for specific purposes.  Capital Projects Funds – These funds account for the financial resources to be used for the acquisition or construction of major capital facilities.  The Private purpose Trust F und – The fund is used to account for the assets and liabilities of the former community de velopment commission and the allocated revenue to pay estimated installment paym ents of enforceable obligations until the obligations of the former community deve lopment commission are paid in full and assets have been liquidated.

As a general rule the effect of interf und activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are payments in lieu of taxes and other charges between th e government’s water function and various other functions of the government. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned.

Amounts reported as program re venues include 1) charges to members, customers or applicants for goods, services, or privil eges provided, 2) operating grants and contributions, and 3) capital grants and contributions, incl uding special assessments.

Internally dedicated re sources are reported as general re venues rather than as program revenues. Likewise, general revenues include all taxes. 523Exhibit 1

28 CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS

(Continued)

(1) Organization and Summary of Signif icant Accounting Policies (continued)

c. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (cont.)

Proprietary funds distinguish operating reve nues and expenses from non-operating items.

Operating revenues and expenses generally re sult from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the Water Enterprise Fund are charges to customers for sales and services. Operating expenses for the enterprise fund includes the cost of sales and services, administrative ex penses, and depreciation on capital assets.

All revenues and expenses not meeting this definition are repo rted as non-operating revenues and expenses.

When both restricted and unrestricted resource s are available for us e, it is the City’s policy to use restricted resources first then use unrestricted resources as needed.

d. Assets, Deferred Outflows, Liabilities, Defe rred Inflows and Net Position or Equity

Cash and Investments

Investments are reported in th e accompanying statement of net position at fair value.

Changes in fair value th at occur during a fiscal year are recognized as investment income reported for that fiscal year. Investment income includes interest earnings, changes in fair value, and any gains or lo sses realized upon the liquida tion, maturity, or sale of investments.

The City pools cash and investments of all funds, except for assets held by bond trustees and fiscal agents. Each fund’s sh are in this pool is displayed in the accompanying financial statements as cash and investments. Investment income, earned by the pooled investments, is allocated to the various funds based on each fund’s average cash and investment balance.

For purposes of the statement of cash flows, the City considers all highly liquid investments (including restricted assets) with maturity of three months or less when purchased to be cash equivalents. Cash invested in the City’s cash management pool is also considered to be cash equivalents.

Internal Receivables and Payables

Activity between funds that are repres entative of lending/borrowing arrangement outstanding at the end of the fiscal year are referred to as either “due to/from other funds” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., the non-current portion of interfund loans). All other outstanding balances between funds are reported as “due to/from othe r funds.” Any residual bala nces outstanding between the governmental activities and business-type acti vities are reported in the government-wide financial statements as “internal balances.”
524Exhibit 1

29 CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS

(Continued)

(1) Organization and Summary of Signif icant Accounting Policies (continued)

d. Assets, Deferred Outflows, Liabilities, Deferred Inflows and Net Position or Equity (cont.)

Advances, as reported in the fund financial statements, are offset by a nonspendable fund balance account in applicable governmental funds to indicate that they are not available for appropriation and are not expendable available financial resources.

All trade and property tax receivables are sh own net of an allowance for uncollectibles.

Under California law, property taxes are asse ssed and collected by the counties at 1% of assessed value plus other increases approved by the voters. Property taxes collected go into a pool and are then allocated to the cities based on a predeter mined formula. The City of Bell Gardens accrues only those taxes which are received from the County of Los Angeles within 60 days after year end.

Lien date: January 1
Levy date: June 30
Due dates: November 1, February 1
Delinquent dates: December 11, April 11

Inventories and Prepaid Items

Inventories of material and suppl ies (if material) are carried at cost on a first-in, first out (FIFO) basis. The City uses the consum ption method of accounting for inventories.

Certain payments to vendors reflect costs appl icable to future accounting periods and are recoded as prepaid items in both government-wide and fund financial statements.

Restricted Assets

Restricted assets represent unexpended bond proceeds, interest earning thereon and reserve amounts of certificates of partic ipation and tax allocation bonds. Under the related resolutions and indentures, the remain ing proceeds are restricted for the use of future construction of improvements to the re spective projects, for debt service or for reserve requirements. The majority of these assets are held by trustees and fiscal agents.

525Exhibit 1

30 CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS

(Continued)

(1) Organization and Summary of Signif icant Accounting Policies (continued)

d. Assets, Deferred Outflows, Liabilities, Deferred Inflows and Net Position or Equity (cont.)

Capital Assets
Capital assets, which include property, plant, equipment, intangible assets and infrastructure assets (e.g., roads, bridges, sidewalks and similar items), are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Such asse ts are recorded at historical cost or estimated historical cost if purchased or constructed (except for intangible right-to-use lease assets), the measurement of which is discussed thereafter . Donated assets are valued at acquisition value of the assets on the date on which th ey were contributed. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitali zed. The City utilizes a cap italization thre shold of $5,000- $10,000 depending on asset type.

Depreciation is charged to operations using th e straight-line method over the estimated useful lives of the assets as follows:

Buildings and improvements 20-40 years
Equipment 3-15 years
Infrastructure 20-50 years
Water rights 100 years

Deferred outflows/inflows of resources

In addition to assets, the statement of fi nancial position and governmental fund balance sheet will sometimes report a separate section for deferred outflows of resources . This separate financial statement elemen t, deferred outfl ows of resources, represents a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (e xpense/expenditure) until then. The City has two items that qualifies for reporting in this category. One is the deferred charge on refunding reported in the business-type Statement of Net Positi on. A deferred charge on refunding results from the difference in the carrying value of refunded debt and its reacquisition price.

This amount is deferred and amortized over th e shorter of the life of the refunded or refunding debt. The second are deferred out flows relating to the net position liability reported in the government-wide and in the bus iness-type Statements of Net Positions.

These outflows are the results of contributions made after the measurement period, which are expensed in the following year, and of ad justments due to differ ence in proportions and the difference between actual contributions made and the proportionate share of the risk pool’s total contributi ons. These amounts are deferr ed and amortized over the expected average remaining service life time.

526Exhibit 1

31 CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS

(Continued)

(1) Organization and Summary of Signif icant Accounting Policies (continued)

d. Assets, Deferred Outflows, Liabilities, Deferred Inflows and Net Position or Equity (cont.)

Deferred outflows/inflows of resources (continued)

In addition to liabilities, the statement of financial pos ition and governmental fund balance sheet will sometimes report a separate section for deferred inflows of resources .

This separate financial statem ent element, deferred inflows of resources, represents an acquisition of net assets that applies to a futu re period(s) and so will not be recognized as an inflow of resources (revenue) until that t ime. The City has three items, which arises only under a modified accrual basis of accounti ng that qualifies for reporting in this category. Accordingly, one item, unavail able revenue, is re ported only in the governmental funds balance sheet. The gove rnmental funds repor t unavailable revenues from two sources: property taxes and grants. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. The second are deferred inflows relating to the net pensi on obligation reported in the government-wide and in the business-type Statements of Net Po sitions. These inflows are the result of the net difference between projected and actual ea rnings on pension plan investments. This amount is deferred and amorti zed straight-line over a five -year period. The third are deferred inflows related to leases.

Compensated absences
The cost of earned but unuse d vacation and sick leave, for which the City has a future obligation to pay, is recognized in the government-wide financial statements. A liability for these amounts is reported in governmental funds only if they become due and payable as a result of employee resignations or retir ements. Typically, th e City liquidates its compensated absences with general fund resources.

Long-Term Obligations
In the Government-wide Financial Statemen ts, long-term debt and other long-term obligations are reported as liabilities in th e appropriate activities. Bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount.

Bond issuance costs are no longer reported as deferred charges and amortized over the term of the related debt, instead they shoul d be expensed in the period incurred. Bond issuance costs are immediately expensed in the Government-wide Financial Statements in addition to the Proprietary and Fiduciary Fund Statements in accordance with GASB No.

65. In the Fund Financial Statements, with the exception of advances from other funds, long-term liabilities are not presented. Governmental fund types recognize bond premiums and discounts during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances ar e reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. Consequently, long term debt is shown as a 527Exhibit 1

32 CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS

(Continued)

(1) Organization and Summary of Signif icant Accounting Policies (continued)

d. Assets, Deferred Outflows, Liabilities, Deferred Inflows and Net Position or Equity (cont.)

Long-Term Obligations (continued)

reconciling item in the Reconcil iation of the Governmental Funds Balance Sheet to the Government-wide Statement of Net Position.

In the Government-wide Financ ial Statements, interest pa yable on long-term debt is recognized as the liability is incurred fo r governmental activities and business-type activities. In the Fund Financial Statemen ts, only propriety fund types recognize the interest payable when the liability is incurred.

Fund Balances and Spending Policy

In the Governmental Fund Financial Statemen ts, fund balances ar e classified in the following categories:

Nonspendable – Items that cannot be spent because they are not in a spendable form, such as prepaid items an d inventories, items that are legally or contractually required to be maintained intact, such as principal of an endowment or revolving loan fund.

Restricted – Restricted fund balances encompass the portion of net fund resources subject to externally enforceable legal restrictions. This includes ex ternally imposed restrictions by creditors, such as through debt covenants, grantors, contributions, laws or regulations of other governments, as we ll as restrictions imposed by law through constitutional provisions or enabling legislation.

Committed – Committed fund balances encompass the portion of net fund resources, the use of which is constrained by limitations that the governme nt imposes upon itself at its highest level of decision making, The City Council is considered the highest authority for the City and approves such commitments th rough council resolutions and/ or similar documents. These committed amounts cannot be used for any other purposes unless the City Council removes or changes the specif ied use through the same type of formal action taken to establish the commitment.

Assigned – Assigned fund balances encompass the portion of net fund resources reflecting the government’s intended use of resources that are ne ither restricted or committed. Assignment of resources can be done by the highest level of decision making (City Council Resolution) or by a committee or official designa ted for that purpose. The City Council has designated the City Manage r for the purpose to assign fund balance for specific departmental projects.
528Exhibit 1

33 CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS

(Continued)

(1) Organization and Summary of Signif icant Accounting Policies (continued)

d. Assets, Deferred Outflows, Liabilities, Deferred Inflows and Net Position or Equity (cont.)

Fund Balances and Spending Policy (cont.)

Unassigned – The General Fund is the only fund that may report a positive unassigned fund balance amount. In other governmental f unds it is not appropriate to report a positive unassigned fund balance amount. However, in governmental funds other than the General Fund, if expenditures incurred for specific purposes exceed the amounts that are restricted, committed, or assigned to those purposes, it may be necessary to report a negative unassigned fund balance in that fund.

In July 2008, through Reso lution 2008-17, the City Council adopted a fund balance reserve policy. The policy consists of estab lishing an economic contingency reserve by placing liquid cash in a financial institution in compliance with the investment policy in the amount of $1,000,000 commencing Ju ly 1, 2008 and addi ng $200,000 to the established reserve fund each fiscal year thereafter. The City Council’s goal is to achieve a minimum of 10% of the annual General Fund appropriations as committed fund balance in the General Fund.

When both restricted and unrestricted resources are available for use when an expenditure is incurred, it is the City’s policy to use restricted resources first, then unrestricted resources as they are needed. It is the C ity’s policy to consider committed amounts as being reduced first, followed by assigned amounts, and then unassigned amounts when expenditures are incurred for purposes for which amounts in any of those fund balance classifications could be used.

Net Position Flow Assumption

Sometimes the government will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unr estricted resources. In order to calculate the amounts to report as rest ricted – net position and unres tricted – net position in the government-wide and proprietary fund financia l statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the government’s policy to consider restricted – net position to have been depleted before unrestricted – net position is applied.

In the Government-Wide Financial Statements, net position are classified in the following categories: Net Investment in Capital Assets consists of capital assets net of accumulated depreciation and reduced by outstanding de bt that attributed to the acquisition, construction, or improvement of the assets.

Restricted Net Position are restricted by external creditors, grantors, contributors, laws or regulations of other governments. Unrestricted Net position is all net position that do not meet the definition of “invested in capital assets, net of re lated debt” or “restricted net position.”
529Exhibit 1

34 CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS

(Continued)

(1) Organization and Summary of Signif icant Accounting Policies (continued)

d. Assets, Deferred Outflows, Liabilities, Deferred Inflows and Net Position or Equity (cont.)

Fund Balance Flow Assumption

Sometimes the government will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as restrict ed, committed, assigned, and unassigned fund balance in the governme ntal fund financial statements a flow assumption must be made about the order in which the resources are considered to be applied. It is the government’s policy to consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance. Further, when the components of unrestric ted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last.

e. Leases and Subscription Agreement Leases

Lessee: The City is a lessee for a noncancellabl e lease of equipment. The City recognizes a lease or subscription agreement liability and an intangible right-to-use lease asset (lease asset) in the government-wide financial st atements. The City recognizes lease or subscription agreement liabilities with an initial, individual value of $50,000 or more.

At the commencement of a leas e, the City initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal por tion of lease payments made. The lease asset is initially measured as the initial amount of the lease liabilit y, adjusted for lease payments made at or before the lease comme ncement date, plus ce rtain initial direct costs. Subsequently, the lease asset is amor tized on a straight-line basis over its useful life.

Key estimates and judgments related to leases include how the City determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments. The City uses th e interest rate charged by the lessor as the discount rate. When the interest rate char ged by the lessor is not provided, the City generally uses its estimated incremental borro wing rate as the discount rate for leases.

The lease term includes the noncancellable period of the lease. Lease payments included in the measurement of the lease liability are composed of fixed payments and purchase option price that the City is reasonably certain to exercise.

The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease asset and li ability if certain changes occur that are expected to significantly affect the amount of the lease liability. 530Exhibit 1

35 CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS

(Continued)

(1) Organization and Summary of Signif icant Accounting Policies (continued)

e. Leases (cont.)
Lease assets are reported with other capital assets and lease liabilities are reported with long-term debt on the Statement of Net Position.

Lessor: The City is a lessor for a noncancellabl e leases of a portion of real property, as well as, building and roof space. The City recognizes a lease receivable and a deferred inflow of resources in the government-wide and governmental fund financial statements.

At the commencement of a leas e, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the prin cipal portion of the lease payments received.

The deferred inflow of resources is initiall y measured as the init ial amount of the lease receivable, adjusted for lease payments rece ived at or before the lease commencement date. Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term.

Key elements and judgement include how the City determines (1) the discount rate it uses to discount the expected leas e receipts to present value, (2) lease term, and (3) lease receipts. The City uses it estimated incremen tal borrowing rate as the discount rate for leases. The lease term includes the noncancella ble period of the lease. Lease receipts included In the measurement of the lease rece ivable is composed of fixed payments from the lessee.

The City monitors changes th at would require a remeasurem ent of its lease and will remeasure the lease receivable and deferred in flows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable.

e. Use of Estimates

The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosu re of contingent asse ts and liabilities. In addition, estimates affect the reported amount of expenses. Actual results could differ from these estimates and assumptions.

f. Pensions

For purposes of measuring the net pension li ability and deferred outflows/inflows of resources related to pensions, and pension e xpense, information a bout the fiduciary net position of the City of Bell Garden’s Califo rnia Public Employees’ Retirement System (CalPERS) plan (Plan) and a dditions to/deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contribu tions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.
531Exhibit 1

36 CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS

(Continued)

(1) Organization and Summary of Signif icant Accounting Policies (continued)

g. New Accounting Pronouncements
The City adopted Statement on Government al Accounting Standards (GASB Statements) No. 91- Conduit Debt Obligations and No. 96- Subscription Based Information Technology Software . The adoption of the GASB Nos. 91 and 96 did not significantly impact the City.

(2) Cash and Investments

As of June 30, 2023, cash and investments, including cash and investments with fiscal agent, were reported in the accompanying financial statements as follows:

Governmental activities $38,771,831
Business-type activities 427,359
Fiduciary funds 4,954,991
Total cash and investments $44,154,181

The City of Bell Gardens maintains a cash and investment pool that is available for use for all funds. Each fund type ’s position in the pool is re ported on the combined balance sheet as cash and investments. The City has adopted an investment policy, which authorizes it to invest in various investments.

As of June 30, 2023, the carrying amount of the City’s deposits was $21,925,088 and the bank balance was $21,200,082. The $(725,006) differe nce represents outstanding checks and other reconciling items.

The California Government Code require s California banks and savings and loan associations to secure a City’s deposits by pledging government securities with a value of 110% of a City’s deposits. California law also allows financial institutions to secure City deposits by pledging firs t trust deed mortgage notes havi ng a value of 150% of a City’s total deposits. The City Treasurer may waive the collateral requirement for deposits which are fully insured up to $250,000 by the FDIC. The collateral for deposits in federal and state chartered banks is held in safekeeping by an authorized Agent of Depository recognized by the State of Californ ia Department of Banking. The collateral for deposits with savings and loan associatio ns is generally held in safekeeping by the Federal Home Loan Bank in San Francisco, Cali fornia as an Agent of Depository. These securities are physically he ld in an undivided pool for all California public agency depositors. Under Government Code Sect ion 53655, the placement of securities by a bank or savings and loan association with an “Agent of Depository” has the effect of perfecting the security interest in the name of the local governmental agency. 532Exhibit 1

37 CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS

(Continued)

(2) Cash and Investments (continued)

Accordingly, all collateral held by California Agents of Depository are considered to be held for, and in the name of, the local governmental agency.

Investments Authorized by th e City’s Investment Policy

Under provision of the City’s investment policy, and in accordance with Section 53600 of the California Government Code, the following investments are authorized:

Maximum Maximum
Maximum Percentage Investment
Investment Types Maturity Of Portfolio in One Issuer

U.S. Treasury Bills, Bonds and Notes 5 years None None
U.S. Government Agency Securities 5 years None None
Bills of Exchange 180 days 40% 15%
Commercial Paper 270 days 40% 15%
Negotiable Certificates of Deposit 5 years 30% 15%
Repurchase Agreements 92 days None 15%
Reverse Repurchase Agreements 92 days None 15%
Local Agency Investment Fund (LAIF) N/A None None
Medium Term Corporate Notes 5 years 30% 15%

Investments Authorized by Debt Agreements
The above investments do not address i nvestment of debt proceeds held by a bond trustee/ fiscal agent. Investments of debt proceeds held by a bond trustee are governed by provision of the debt agreements, rather th an the general provision of the California Government Code or the City’s investment policy.

Investments in Stat e Investment Pool
The City is a voluntary participant in the Lo cal Agency Investment Fund (LAIF) that is regulated by California Government Code un der the oversight of the Treasurer of the State of California. The fair value of the City ’s investment in this pool is reported in the accompanying financial statements at amounts based upon the City’s pro-rata share of the fair value provided by LAIF for the entire LA IF portfolio (in relation to the amortized cost of that portfolio). The balance availa ble for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis.

533Exhibit 1

38 CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS

(Continued)

(2) Cash and Investments (continued)

Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rati ng organization. Presented below is the minimum rating required by (where applicab le) the California Government Code, the City’s investment policy or debt agreements, and the actual rating, by Standard and Poor and Moody’s as of year-end for each investment type:

Minimum Ratings as of Year End
Legal Not
Investment Type Rating AAA AA A Rated

Local Agency
Investment Fund

$20,399,588

N/
A - - - 20,399,588
Held by Fiscal Agent:

Money Market Funds 3,585,899 N/A - - - 3,585,899

Total $23,985,487 - - - 23,985,487

Concentration of Credit Risk `
The City’s investment policy does not impose restrictions on the maximum percentage it can invest in a single type of investment. As of June 30, 2023, in accordance with GASB Statement No. 40 requirements, the City is exposed to c oncentration of credit risk whenever they have invested more than 5% of their total investment s in any one issuer.

As of June 30, 2023, the City was not exposed to concentration of credit risk.

Custodial Credit Risk
The custodial credit risk for deposits is th e risk that, in the event of the failure of a depository financial institution, a government will not be able to recover deposits or will not be able to recover collateral securities that are in the possession of an outside party.

The custodial credit risk for investments is the risk that, in the event of the failure of a counterparty to a transaction, a government will not be able to recover the value of investment or collateral securities that are in the possession of an outside party.

Custodial credit risk does not apply to a local government’s indi rect investment in securities through the use of mutual funds or government inves tment pools (such as LAIF). As of June 30, 2023, none of the City’s deposits or investments were exposed to custodial credit risk.

534Exhibit 1

39 CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS

(Continued)

(2) Cash and Investments (continued)

Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates.

The City’s investment policy limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. The City’s investment policy states that, with the exception of the investment of bond proceeds and LAIF, investments may not exceed five years in ma turity. The City has elected to use the segmented time distribution method of disclosure for its interest rate risk.

Remaining Investment Maturities
Less than 1 to 3 4 to 5
Investment Type 1 Year Years Years Total
Local Agency Investment Fund $20,399,588 - - 20,399,588 Held by Fiscal Agent:

Money market Mutual Funds 3,585,899
- - 3,585,899

Total $23,985,487
- - 23,985,487

Fair Value Classifications
Fair value measurements ar e categorized based on the valu ation inputs used to measure fair value: Level 1 inputs are quoted prices in active markets for identical asset assets; Level 2 inputs are significant other obser vable inputs; Level 3 inputs are significant unobservable inputs. Investment s categorized as Level 2 are valued using market approach using quoted market prices.

Investments' fair value measurements are as follows as of June 30, 2023:

Investment Type
Fair
Value

Level 1

Level 2

Level 3

Local Agency Investment Fund $20,399,588
Held by Fiscal Agent:

Money Market Mutual Fund 3,585,899
Total $23,985,487
Investments in the LAIF investment pool and money market mutual funds are uncategorized as deposit and withdrawals are made on the basis of $1 and not fair value. 535Exhibit 1

40 CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS

(Continued)

(3) Notes and Loans Receivable

Notes and loans receivable at June 30, 2023, consist of the following:
a. During 1992-93, the Bell Gardens former RDA entered into a loan agreement with Nehemiah West Housing Corporation for the development of low to moderate-income housing. The loan amount is $1,000,000 originally due October 13, 1994, and bearing interest at the rate of 12% per annum compounded after its due date. The balance as of June 30, 2023 is $311,262. The City’s Low an d Moderate Housing Fund has recorded unavailable revenue as of June 30, 2023 for the remainder of the outstanding loan. b. As of June 30, 2023, the City had deferred loans receivable pertaining to housing rehabilitation loans and mic ro business loans given under the Community Development Block Grant Program in the amount of $407,471 which has also been recorded as unavailable revenue.
c. The City and Southern Califor nia Water Company executed an agreement effective July 1, 1990, providing for reimbursement to the City of certain costs incurred by the City for water system improvements. The total reimbursement has been estimated at approximately $466,563 and is to be repaid in annual installments. As of June 30, 2023, the balance of the receivable was $43,046 whic h has also been reco rded as unavailable revenue.
d. During 1997-98, the City instituted a deferred loan program for academic scholarships.

As of June 30, 2023, the balance of the loans outstanding is $345,621 which has also been recorded as unavailable revenue.
e. As of June 30, 2023, the City has $35,241 in se ttlements receivable . The City is scheduled to receive $3,600 annually toward the receivable, which has also been recorded as unavailable revenue.
f. The Bell Gardens former Commission is required by State Law to set aside funds to create and preserve housing that is affordab le to low and moderate income families and individuals. The City has decided to util ize these funds for a s econd mortgage and/or closing costs, as needed for low-to-moderate income first time homebuyers. The City has established a not-to-exceed cap of $33,000 per case on an as needed basis. The Bell Gardens First Time Home Buyer Program is a deferred equity share loan secured by a second deed of trust and note wi th an annual rate of 3%. Th e loan shall become due and payable only when the property is sold, l eased or transferred. Repayment terms of principal, shared equity and interest at 3% per annum simp le interest vary depending on the year sold or transferred. After the twenti eth year, the loan is forgiven. The former Commission’s share of equity in the property shall not exceed the proportional investment as a percentage of the original pur chase price. The balance of the First Time Home Buyer Program as of June 30, 2023 is $833,940 which has also been recorded as unavailable revenue. As a result of dissolution of the Community Development Commission, the loan receivable was transf erred to the City’s Low and Moderate Housing Fund.
536Exhibit 1

41 CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS

(Continued)

(3) Notes and Loans Receivable (continued)

g. On March 22, 2011, Terra Bella, LLP, a Califor nia limited partnership (the Borrower) and the Bell Gardens former RDA entered in to an owner participation agreement to develop a senior affordable housing project consisting of 65 units. Pursuant to the agreement, the former Commission has provide d financial assistance in the amount of $2,600,000 for the partial acquisition, construc tion, operation and maintenance of the units plus $32,000 on preconstruction loans. The promissory note shall bear simple interest at a rate of 3% per annum which is recorded as unavailable revenue. Payments shall be made annually in arrears on May 1. The entire unpaid principal balance, together with all accrued and unpaid interest, shall be due on the date which is 57 years from the date a certificate of occupancy is issued for the last residential unit in the project. The balance as of June 30, 2023, including accr ued interest of $931,289, is $3,563,289. The loan receivable is recorded in the City’s Low and Mode rate Housing Fund, which has also been recorded as unavailable revenue.

h. On April 1, 2005, Bell Gardens Housing Partners , L.P., a California limited partnership entered in a promissory note to pay th e Bell Gardens former RDA $3,812,202 for the payment of public and private debts. Th e Low and Moderate Housing has provided certain financial assistance in construction of a 72-unit seni or affordable housing project by providing a Commission Loan (which is represented by this Promissory Note) in the amount of $3,812,202 for the acquisition and clea ring of the site and to help defray Developer’s costs. The promis sory note amount shall bear simp le interest at the rate of 3% per annum, and 10% per annum and shall accrue upon the amount of each payment required upon the date each such payment is du e. The Promissory Note shall be paid from “Residual Receipts”, defined as an amount equal to sixty-five percent (65%) of the net profits produced from the project (on a prorated basis), until the note amount has been repaid in full. Any remain ing principal, interest and other amounts due and owing under this promissory note shall be paid in full on or before the fifty-fifth (55 th) anniversary of
the date of promissory note.
537Exhibit 1

42 CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS

(Continued)

(3) Notes and Loans Receivable (continued)

The balance of the promissory note and the related interest has also been recorded as unavailable revenue. The outstanding balance at June 30, 2023, is as follows:

Principal Interest
Amount Amount Total

CDBG Special Revenue $ 964,100 508,469 1,472,569
Former Community Development
Commission 1,514,959 798,994 2,313,953
Low and Moderate Housing 1,333,143 703,105 2,036,248 Subtotal 3,812,202 2,010,568 5,822,770

Less amount reported in
the Successor Agency 1,514,959 798,994 2,313,953

Total $2,297,243 1,211,574 3,508,817

i. On February 9, 2021, the City established a First Time Homebuyer Mortgage Assistance and/or Owner Occupied Rehabilitation program with CalHome Grant Funds. The outstanding loans as of June 30, 2023, incl uding accrued interest of $22,800 is $514,508.

The loan is recorded in th e City’s CalHome Fund, which ha s also been recorded as unavailable revenue.

Total notes and loans receivable as of June 30, 2023 is $9,563,195.

538Exhibit 1

43 CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS

(Continued)

(4) Inter-fund Receivables, Payables and Transfers

a. Due To / From Other Funds:

The following summarizes the total due to and from other funds as of June 30, 2023:

Due To Other Funds:

Nonmajor Enterprise
Governmental Water
Funds Fund Total
Due From Other Funds:

General Fund $893,957 6,564,603 $7,458,560

Inter-fund receivables and payables as of June 30, 2023 are the result of the elimination of deficit cash balances in individual funds.

b. Transfers To / From Other Funds:

The following summarizes the total transfers in and transfers out to other funds as of June 30, 2023:

Transfers In:

Transfers Out:

General
Fund
Low and
Mod
Housing
Fund

Nonmajor
Governmental
Funds

Golf Course
Enterprise
Fund

Total
General Fund $ - 146,678 1,759,511 46,135 1,952,324 Capital Improvement
Projects Major Fund

195

195
Nonmajor
Governmental Funds

298,000

298,0000
Water Enterprise Fund 145,534
- - - 145,534

Total $145,729
146,678 2,057,511 46,135 2,396,053

The General Fund transferred funds to Nonm ajor Governmental Funds to fund capital projects and to pay for operating costs.

The transfer to the General Fund from N on-Major Governmental Funds was to fund administrative costs. The Water Fund transf erred funds to the General Fund for prior years subsidies from the General Fund.

539Exhibit 1

44 CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS

(Continued)

(5) Capital Assets

A summary of the changes in capital asset act ivity for the year ended June 30, 2023, is as follows:

Governmental Activities:

Beginning Ending
Description Balance Additions Deletions Balance

Non-depreciable:

Land $ 73,888,074 - - 73,888,074
Construction in process 3,503,976 1,592,123 (920,085) 4,176,014

Total non-depreciable 77,392,050 1,592,123 (920,085) 78,064,088

Depreciable:

Buildings and structures 18,530,262 - - 18,530,262 Equipment 11,615,492 923,394 (175,523) 12,363,363
Right-to-use, leased equipment 2,224,436 - - 2,224,436 Infrastructure 42,347,594 885,630 - 43,233,224

Total depreciable
capital assets 74,717,784 1,809,024 (175,523) 76,351,285

Less accumulated depreciation for:

Buildings and structures 10,180,657 592,412 - 10,773,069 Equipment 10,311,879 579,376 (175,523) 10,715,732
Right-to-use, leased
equipment - 148,296 - 148,296
Infrastructure 30,302,304 1,119,591 - 31,421,895

Total accumulated
depreciation 50,794,840 2,439,675 (175,523) 53,058,992

Total depreciable
capital assets, net 23,922,944 (630,651) - 23,292,293

Total capital assets, net $101,314,994 961,472 (920,085) 101,356,381

Depreciation expense was charged in the following functions in the Statement of Activities:

Governmental Activities:

General government $1,320,084
Public works 1,119,591

Total $2,439,675

540Exhibit 1

45 CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS

(Continued)

(5) Capital Assets (continued)

Business-type Activities:

Beginning Ending
Description Balance Additions Deletions Balance

Non-depreciable:

Land $1,011,000 - - 1,011,000

Total non-depreciable 1,011,000 - - 1,011,000

Depreciable:

Water rights 1,914,000 - - 1,914,000
Equipment 6,973,549 - - 6,973,549

Total depreciable
capital assets 8,887,549 - - 8,887,549

Less accumulated depreciation for:

Water rights 612,480 19,140 - 631,620
Equipment 3,026,616 149,042 - 3,175,658

Total accumulated
depreciation 3,639,096 168,182 - 3,807,278

Total depreciable
capital assets, net 5,248,453 (168,182) - 5,080,271

Total capital assets, net $6,259,453 (168,182) - 6,091,271

Depreciation expense was charged in the following functions in the Statement of Activities:

Business-Type Activities
Water $168,182

Total $168,182

541Exhibit 1

46 CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS

(Continued)

(6) Long-term Liabilities

(a) Governmental Activities
Long-term liability activity for the year ended June 30, 2023 was as follows:

Amounts
Beginning Ending Due within
Balance Additions Deletions Balance One Year
Governmental Activities:
2015 Lease revenue
refunding bonds $ 4,645,000 - 200,000 4,445,000 205,000 Unamortized bond premium 461,283 - 24,127 437,156 24,127 Lease payable 2,119,140 - 123,002 1,996,138 127,655 Compensated absences 3,347,332 1,889,369 1,665,068 3,571,633 1,785,816 CJPIA Retrospective Deposit
Liability (Asset) 197,114 - 244,965 (47,851) -

Total governmental activities $10,769,869 1,889,369 2,257,162 10,402,076 2,142,598

2015 Lease Revenue Refunding Bonds:

On April 14, 2015, the Authority issued $5,830,000 of Lease Revenue Refunding Bonds.

The proceeds were used to re fund 2006 Certificates of Part icipation, to fund various capital projects within the City, to fund a re serve account and to finance the costs of the transaction. The bond refunded $3,260,000 in pr incipal with a $32,600 premium for a total cost to refund the 2006 Certificates of Partic ipation of $3,292,600. This refunding resulted in a net present value savings for the City of approximately $335,270. Interest rates range from 3.0% to 5.0% and is pa yable semiannually on each June 1 and December 1, commencing on June 1, 2016. Prin cipal payments range from $135,000 to $370,000. As of June 30, 2023, the unamorti zed premium outstanding was $437,156 and the total principal balance outstanding wa s $4,445,000. In the event of default, the Authority may only recover rent and other monetary charges as they become due.

Fiscal Year Principal Interest Total
2024 $ 205,000 207,813 412,813
2025 220,000 199,613 419,613
2026 230,000 190,813 420,813
2027 235,000 179,313 414,313
2028 250,000 167,563 417,563
2029-2033 1,440,000 638,813 2,078,813
2034-2038 1,445,000 252,500 1,697,500
2039-2040 420,000
23,813 443,813
Total $4,445,000 1,860,241 6,305,241
542Exhibit 1

47 CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS

(Continued)

(6) Long-term Liabilities (continued)
Lease Payable:

On April 30, 2021, the City entered into a master equipment lease purchase for improvements to facilities lighting, HVAC, and water co nservation. The initial lease liability was $2,239,435. The term of the lease is 15 years and principal and interest payments commence in October 2021. Semi annual payments of $93,182.18 are due October 31 and April 30 at an interest rate of 2.99%.At June 30, 2023, the total lease liability was $1,996,138. The equipment has a fi fteen-year estimated useful life. The value of the right-to-use asset as of the end of the current fiscal year was $2,224,436 and had accumulated amortization of $148,296 as it was placed into service at fiscal year end.

At June 30, 2023, the lease liability was $1,996,138.

At June 30, 2023, the annual requirements to re pay the outstanding indebtedness were as follows:

Fiscal Year Principal Interest Total
2024 $ 127,655 58,710 186,365
2025 131,500 54,865 186,365
2026 135,461 50,904 186,365
2027 139,542 46,823 186,365
2028 143,745 42,620 186,365
2029-2033 786,346 145,476 931,822
2034-2036 531,889
28,126 560,015
Total $1,996,138 427,524 2,423,662
Accrued Leave Payable (Compensated Absences)
For governmental funds, accrued leave pa yable amounted to $3,571,633 as of June 30, 2023. The balance is broken down as follo ws: $877,503 in vacation leave, $1,952,168 in sick leave, $129,777 in compensatory ti me, $324,215 in holiday, 19,934 in floating holiday, and $43,735 in administrative leave.

CJPIA Retrospective Deposit Liability
Retrospective deposits are cost allocation ad justments to prior coverage periods. Some claims take many years to resolve and over time their estimated value changes. The retrospective adjustments are calculated a nnually and take into consideration all the changes in claim values that occurred dur ing the most recent year. The formula is designed to adequately cover the cost of claims brought against memb ers and to ensure the overall financial strength and security of the Authority. The formula was developed to be as equitable as possible by taking into consideration both risk exposure and claims experience of individual me mbers. CJPIA has temporarily deferred the payment on retrospective deposits owed to the Authority by members. The payment deferral period extends until July 1, 2013 for the Liability program and July 1, 2015 for the Workers’ Compensation program. Retrospective deposit payments are scheduled to resume on these dates. The October 2022 annual retrosp ective adjustment is included in these balances. As of June 30, 2023, the City has a retrospective deposit of $47,851. 543Exhibit 1

48 CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS

(Continued)

(6) Long-term Liabilities (continued)

Optional Payment Plans:

When retrospective deposit payments resume as indicated above, members will have the opportunity to select fro m a variety of optional pa yment plans. Discounts under the incentive plan are available to members choosing to voluntarily accelerate payment during the deferral period. The City has chosen not to voluntarily accelerate payment at this time.

After the deferral period, members choosing from among the optional payment plans will be subject to a moderate annual fee. The fee is intended to provide a means for the Authority to recover otherwise foregone investment earnings and to serve as a minor disincentive for the selection of longer financing terms.

Retrospective Balances will Change Annually:

Retrospective balances will change w ith each annual computation during the payment deferral period. Member balances ma y increase or decrease as a result of the most recent year’s claim developmen t. Accordingly, some members who chose to pay off their balance in full may be required to pay additional retrospective deposits in the future based on the outcome of actual claim development reflected in subsequent retrospective deposit computati ons. Conversely, if cl aim development is favorable then subsequent retrospective adjustments could potentially result in refunds to the member.

More information on the CJPIA retrospect ive balances can be found on the CJPIA website at: http://www.cjpia.org.

(b) Business-Type Activities:

Amounts
Beginning Ending Due within
Balance Additions Deletions Balance One Year
Business-type Activities:
2004 Revenue bonds $1,085,000 - 345,000 740,000 360,000 Unamortized bond premium 987 - 388 599 387

Total business-type activities $1,085,987 - 345,388 740,599 360,387

2004 Water Refunding Revenue Bonds

During fiscal year 2004-2005, the Bell Gardens Financing Authority issued $5,240,000 of refunding revenue bonds to refund the 1994 Wa ter Revenue Bonds and pay the cost of issuing the bonds (insurance, underwriter discount, and other costs). The maturity date of the bonds is October 1, 2024. The interest rate ranges from 1.75% to 4.875%. As of June 30, 2023, the unamortized pre mium on the 2004 Water Ref unding Revenue Bonds was $599 and the outstanding balance was $740,000.
544Exhibit 1
49 CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
(6) Long-term Liabilities (continued)
The debt service requirements to maturity for the revenu e bonds outstanding as of June 30, 2022, are as follows:

Fiscal Year Principal Interest Total
2024 $ 360,000 35,710 395,710
2025 380,000 18,430 398,430
Total $ 740,000 54,140 794,140
(7) Lease Receivable
Lease revenue recognition is in accord ance with GASB Statement 87. Summarized information for each lease is as follows:

Monument Properties-Bell Gardens LLC (Formerly the Bicycle Hotel Casino) Prior to fiscal year ended June 30, 2022 (the year of implementation), the City entered into a 146 month lease as Lessor for the use of the Bicycle Club Parking Facility which was
recognized in fiscal year June 30, 2022 as a result of implementing GASB 87. An initial lease receivable was recorded in the amount of $29,899,288. As of June 30, 2023
the value of the lease receivable and deferred inflow was $25,265,551. The lessee is
required to make monthly variable fixed in substance principle and interest payments of
$220,685. The lease has an interest rate of 1.25%. The City r ecognized lease revenue of $2,315,633 during the fiscal year. The lessee has 3 extension option(s), each for 120 months.

Outfront Media, LLC
Prior to fiscal year ended J une 30, 2022 (the year of imple mentation), the City entered into a 88 month lease as Lessor for a third party use of billboard lease which was r
ecognized in fiscal year June 30, 2022 as a result of implementing GASB 87. An initial lease receivable
was recorded in the amount of $996,454. As of June 30, 2023 the value of the lease receivable and deferred inflow was $758,400. The lessee is required to make quarterly fixed payments of $140,000. The lease has an interest rate of

0.8330%. The City recognized lease revenue of $133,096 during the fiscal year.

The lessee has 2 extensio
n option(s), each for 60 months.

Florence Eastern Marketplace LLC
Prior to fiscal year ended J une 30, 2022 (the year of imple mentation), the City entered into a 26 month lease as Lessor for a third party use of Shopping Center (Market Place) which was recognized in fiscal year June 3 0, 2022 as a result of implementing GASB 87.

An initial lease receiv able was recorded in the amount of $3,479,084. As of June 30, 2023 the value of the lease receivable and deferred inflow was $276,833. The lessee is required to make monthly fixed payments of $125,890. The lease h as an interest rate of

0.2180%. The City recognized lease revenue o f $1,659,190 during the fiscal year. The lessee has 7 extension option(s) , each for 120 months. 545Exhibit 1
50 CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
(7) Lease Receivable (continued)
Los Angeles SMSA Limited Partnership C/O AirTouch Cellular (Version) Prior to fiscal year ended J une 30, 2022 (the year of imple mentation), the City entered into a 59 month lease as Lessor for a th ird party use of ground lease which was recognized in fiscal year June 30, 2022 as a result of implementing GASB 87. An initial lease receivable was recorded in the amount of $184,671. As of June 30, 2023 the value of the lease receivable and deferred inflows was $142,749. The lessee is required to make monthly fixed payments of $3,060. The lease has an interest rate of 0.5770%.

The City recognized lease reven ue of $35,952 during the fiscal year. The lessee has 3 extension option(s), each for 60 months. The lessee had a termination period of 1 month as of the lease commencement.

Bell Gardens Hospitality, LLC (Quality Choice)
Prior to fiscal year ended J une 30, 2022 (the year of imple mentation), the City entered into a 784 month lease as Le ssor for the use of the Be ll Gardens Hotel Site-Ground :Lease which was recognized in fiscal year June 30, 2022 as a result of implementing GASB 87. An initial lease r eceivable was recorded in the amount o f $ 5,994,302. As of June 30, 2023 the value o f th e lease receivable and deferred inflows was $5,884,599. The lessee is required to make mo nthly fixed payments of $12,657. The lease has an interest rate of 1.7050%. The City recognized lease revenue of $51,081 during the fiscal year.
(8) Defined Benefit Pension Plans
Plan Description : All qualified permanent and proba tionary employees are eligible to participate in the City of Bell Garden’s Safety and Miscellaneous Employee Pension Plans, cost-sharing multiple employer defined benefit pension plans administered by the California Public Employees’ Retirement Sy stem (CalPERS). Bene fit provisions under the Plans are established by State statute a nd City of Bell Garden resolution. CalPERS issues publicly available reports that incl ude a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.

Benefits Provided : Ca
lPERS provides service retirement and disability benefits, annual cost of living adjustments an d death benefits to plan me mbers, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment. Members with fi ve years of total service are eligible to retire at age 50 with statutorily reduced be nefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefi t is one of the following: the Basic Death Benefit, the 1957 Survivor Bene fit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.

The Public Employees’ Pension Reform Act of 2013 (PEPRA) requires new benefits and membe
r contributions for new members as defined by PEPRA, that are hired after January 1, 2013. These PEPRA members in pool ed plans are reflected in the new Miscellaneous and Safety risk pools created by the CalPERS Board in response to the passage of PEPRA, beginning with the June 30, 2013, risk-pool valuations. 546Exhibit 1

51 CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS

(Continued)

(8) Defined Benefit Pension Plans (continued)

The Plans’ provisions and benefits in effect at June 30, 2021, are summarized as follows:

Miscellaneous

Hire Date
Prior to
January 1, 2013
On or after
January 1, 2013
Benefit formula 2.7% @ 55 2.0% @ 62
Benefit vesting schedule 5 years service 5 years service Benefit payments monthl y for life monthl y for life
Retirement age 50 - 55 52 – 67
Monthly benefits, as a % of eligible compensation 2.0% to 2.7% 1.0% to 2.5% Required employee contribution rates 7.96% 6.91%
Required employer contribution rates 14.02% 10.34%
Safet y

Hire Date
Prior to
January 1, 2013
On or after
January 1, 2013
Benefit formula 3.0% @ 50 2.7% @ 57
Benefit vesting schedule 5 years service 5 years service Benefit payments monthl y for life monthl y for life
Retirement age 50 - 55 52 - 67
Monthly benefits, as a % of eligible compensation 3.00% 2.0% to 2.7% Required employee contribution rates 8.99% 8.95%
Required employer contribution rates 25.59% 19.87%

Contributions: Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer c ontribution rates for all public employers are determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for both Plans ar e determined a nnually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of be nefits earned by employe es during the year, with an additional amount to finance any unfunded accrued liability. The City of Bell Gardens is required to contribu te the difference between the actuarially determined rate and the contribution rate of employees. Contributions to the pension plans were $589,439 and $1,338,911 for the Miscellaneous and Safety plans, respectively, for the year ended June 30, 2023.

Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions - As of June 30, 2023, the City of Be ll Gardens reported net pension liabilities for its proportionate shares of the net pension liability as follows:
547Exhibit 1

52 CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS

(Continued)

(8) Defined Benefit Pension Plans (continued)

Proportionate Share
of Net Pension Liability
Miscellaneous $18,306,182
Safety 31,060,236

Total Net Pension Liability $49,366,418

The City of Bell Gardens’ net pension lia bility for each Plan is measured as the proportionate share of the net pension liabilit y. The net pension liability of each of the Plans is measured as of June 30, 2021, and the total pension liability for each Plan used to calculate the net pension liability was determin ed by an actuarial valuation as of June 30, 2020 rolled forward to June 30, 2021 using standa rd update procedures. The City of Bell Gardens’ proportion of the net pension liability was based on a projection of the City of Bell Gardens’ long-term share of contributio ns to the pension plans relative to the projected contributions of all participating employers, actuarially determined. The City of Bell Gardens’ proportionate share of the net pension liability for each Plan as of June 30, 2021 and 2022 was as follows:

Miscellaneous Safet y
Proportion – June 30, 2021 0.50437% 0.53985%
Proportion – June 30, 2022 0.39122% 0.45201%
Change – Increase (Decrease) (0.11314)% (0.08784)%

For the year ended June 30, 2023, the City of Bell Gardens recognized pension credit of $880,473 and $15,692 for the Miscellaneous and Safety plans, respectively. At June 30, 2022, the City of Bell Gardens reported defe rred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Miscellaneous
Deferred Outflows
of Resources
Deferred Inflows
of Resources
Pension contributions subsequent to measurement date $ 2,164,373 - Change in proportion 69,387 (888,496)
Net difference in actual contributions vs.
proportionate share of contributions

(578,949)
Net difference between expected and actual experience 367,624 (246,219) Net differences between projected and
actual earnings on plan investments

3,353,206

-
Change in assumptions 1,875,851 -

Total $ 7,830,441 (1,713,664)
548Exhibit 1

53 CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS

(Continued)

(8) Defined Benefit Pension Plans (continued)

Safet y
Deferred Outflows
of Resources
Deferred Inflows
of Resources
Pension contributions subsequent to measurement date $ 3,404,444 - Change in proportion - (1,843,522)
Net difference in actual contributions vs.
proportionate share of contributions

28,807

(1,783,047)
Net difference between expected and actual experience 1,285,470 (337,290) Net differences between projected and
actual earnings on plan investments

4,904,845

-
Change in assumptions 3,131,812 -

Total $12,755,379 (3,963,858)

$2,164,373 and $3,404,444 reported as deferred outfl ows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended J une 30, 2024 for the Miscellaneous and Safety plans, respectively. Amounts reported as de ferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Year Ended
June 30

Miscellaneous

Safety
2024 $ 836,522 $1,189,620
2025 695,602 791,836
2026 369,345 413,602
2027 2,050,935
2,992,018
$3,952,404 $5,387,077
549Exhibit 1

54 CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS

(Continued)

(8) Defined Benefit Pension Plans (continued)

Actuarial Assumptions – The total pension liabilities in the June 30, 2021 actuarial valuations were determined using the following actuarial assumptions:

Miscellaneous Safety
Valuation Date June 30, 2021 June 30, 2021
Measurement Date June 30, 2022 June 30, 202
Actuarial Cost Method Entry-Age Normal Cost
Method
Entry-Age Normal
Cost Method
Actuarial Assumptions:

Discount Rate 6.90% 6.90%
Inflation 2.5% 2.5%
Payroll Growth 3.0% 3.0%
Projected Salary Increase Varies by Entry Age Varies by Entry Age Investment Rate of Return 7.5% (1) 7.5% (2)
Mortality Varies (2) Varies (2)

(1) Net of pension plan investment expenses, including inflation. (2) The mortality table used was developed based on CalPERS’ specific data. The table includes 20 years of mortality improvements using Society of Actuaries Scale BB.

The underlying mortality assumptions and all other actuarial assump tions used in the June 30, 2016 valuation were based on the resu lts of a actuarial e xperience study for the period 1997 to 2011. Further details of the Experience Study can be found on the CalPERS website.

Change of Assumptions – In Fiscal Year 2021-22, demographic assumptions and the inflation rate were changed in accordan ce with the CalPERS Experience Study and Review of Actuarial Assumptions Decembe r 2017. There were no changes in the discount rate. Deferred outflows of resources and deferred inflows of resources for changes of assumptions represent the unamortized portion of the changes of assumptions related to prior measurement periods.

Discount Rate – The discount rate used to measure the total pension liability was 6.90% for each plan. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at statutor ily required rates, actuarially determined. Based on those assumptions, the plans’ fiduciary net position was projected to be available to make all projected future bene fit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of pr ojected benefit payments to determine the total pension liability.

The long-term expected rate of return on pension plan inve stments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.
550Exhibit 1

55 CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS

(Continued)

(8) Defined Benefit Pension Plans (continued)

In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of a ll the funds’ asset cla sses, expected compound (geometric) returns were calculated over the shor t-term (first 10 years) and the long-term (11+ years) using a building-block approac h. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund.

The expected rate of return was set by calcu lating the rounded single equivalent expected return that arrived at the same present va lue of benefits for cash flows as the one calculated using both short-term and long-term returns. The e xpected rate of return was then set equivalent to the single equivalent rate calculated above a nd adjusted to account for assumed administrative expenses.

The expected real rates of return by asset class are as follows:

Asset Class (a)
Assumed
Asset
Allocation

Real
Return (b)(c)

Public Equity 18.0% 4.50%
Fixed Income 45.0% 1.40%
TIPS 20.0% 0.50%
Commodities 3.0% 1.10%
REITs 14.0% 3.70%
Total 100.0%

(a) Commodities and REITs are included in Public Equity; TIPS are included in fixed Income. (b) An expected inflation of 2.3% used for this period. (c) Figures are based on the 2021-22 Asset Liability Management study.

Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate – The following presents the Bell Ga rdens’ proportionate share of the net pension liability for each Plan, calculated using the discount rate for each Plan, as well as what the Bell Garden’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate:

Miscellaneous Safet y
1% Decrease 5.90% 5.90%
Net Pension Liability $27,274,406 $45,895,029

Current Discount Rate 6.90% 6.90%
Net Pension Liability $18,306,182 $31,060,236

1% Increase 7.90% 8.15%
Net Pension Liability $10,927,558 $18,936,144
551Exhibit 1

56 CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS

(Continued)

(9) Other Post Employment Benefits (OPEB)

Plan Description - In addition to the pension benefits described above, the City provides retiree health insurance bene fits through a single employer defined benefit plan. In accordance with the plan, which was approved by the City Council, these benefits are available to all employees who are eligible for normal PERS retirement and who retire after January 1, 1990. The City pays for mont hly medical, dental and vision premium.

The portion paid is based on years of service at retirement. The plans vary based on date of hire and bargaining unit.

Employee Covered – As of June 30, 2022 actuarial va luation, the following current and former employees were covered by the benefit terms under the plan:

Active employees 144
Inactive employees or beneficiaries currently
receiving benefits 72
Inactive employees ent itled to, but not yet
receiving benefits -
Total 216

Contributions - Currently, the City funds retiree he althcare benefits on a pay-as-you-go basis. The City recognizes expenditure for its share of the annual premiums as these benefits become due. For fiscal year 2022-2023, the City paid $1,488,499 for benefits of 72 retired employees.

Net OPEB Liability - The City of Bell Gardens net OPEB liability was measured as of June 30, 2023 and the total OPEB liability used to calculate the net OEPB liability was determined by an actuarial valuation date June 30, 2022 that was rolled forward to determine the June 30, 2023 total OPEB lia bility, based on the following actuarial methods and assumptions:

Actuarial Assumptions:

Discount Rate 3.65%
Projected Salary Increase Salary Scale
General Inflation 2.75%
Mortality Varies (1)

(1) The underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2017 valuation were based on the results of a actuarial experience study for the period 1997 to 2011. Further details of the Experience Study can be found on the CalPERS website.

Discount Rate – The discount rate used to measur e the OPEB liability was 3.65 percent, using the average of 3-20 year municipal bond rate indices: S& P Municipal Bond 20 Year High Grade Rate Index, Bond Buyer 20- Bond GO Index, Fideli ty GO AA 20 Year Bond Index.

552Exhibit 1

57 CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS

(Continued)

(9) Other Post Employment Be nefits (OPEB) (continued)

The Changes in the net OPEB liabi lity for the plan are as follows:

Increase (Decrease)
Total
OPEB
Liability
(a)
Plan
Fiduciary
Net Position
(b)
Net OPEB
Liability/
(Asset)
(c)=(a)-(b)
Balance at Fiscal Year Ending 6/30/22
Measurement Date 6/30/22

$63,023,337

$ 271,789

$62,751,548
Changes During the Period:

Service Cost 2,246,094 - 2,246,094
Interest Cost 2,244,436 - 2,244,436
Expected Investment Income - 16,124 (16,124)
Employer Contributions - 1,488,499 (1,488,499)
Changes of Benefit Terms - - -
Benefit Payments (1,488,499) (1,488,499) -
Assumption Changes (1,213,094) - (1,213,094)
Plan Experience - - -
Investment Experience - 5,860 (5,860)
Recognized Deferred Resources - - -
Administrative Expenses - (1,602) 1,602
Net Changes in Fiscal Year 2022-23 1,788,937 20,382 1,768,555 Balance at Fiscal Year Ending 6/30/23
Measurement Date 6/30/23

$64,812,274

$ 292,171

$64,520,103

As of June 30, 2023, $1,165,830 of the net OPEB liability has been allocated to the Successor Agency of the Former Community Development Commission.

Sensitivity of the Proportionate Share of the OPEB Liability to Changes in the Discount Rate – The following presents the City of Bell Ga rdens’ OPEB liability, calculated using the discount rate, as well as wh at the City’s OPEB liability would be if it were calculated using a discount rate that is 1-percentage poi nt lower or 1-percenta ge point higher than the current rate:

1% Decrease 2.65%
Net OPEB Liability $76,581,225

Current Discount Rate 3.65%
Net OPEB Liabilit
y $64,520,103

1% Increase 4.65%
Net OPEB Liabilit
y $55,052,316

553Exhibit 1

58 CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS

(Continued)

(9) Other Post Employment Be nefits (OPEB) (continued)

Sensitivity of the Net OPEB Liability to Changes in the Health Care Cost Trends – The following presents the net OPEB liability of the City of Bell Gardens’ if it were calculated using health care cost trend rates that are one pe rcentage point lower or one percentage point higher than the current rate, for the measurement period June 30, 2023:

1% Decrease 5.5%HMO/6.0%PPO Decreasing to

4.0%HMO/4.0%PPO

Net OPEB Liability $53,183,991

Current Healthcare Cost
Trend Rates

6.5%HMO/7.0%PPO Decreasing to

5.0%HMO/5.0%PPO

Net OPEB Liability $64,520,103

1% Increase 7.5%HMO/8.0%PPO Decreasing to

6.0%HMO/6.0%PPO

Net OPEB Liability $79,267,617

OPEB Expense and Deferred Outflows/Inflo ws of Resources Related to OPEB – For the fiscal year ended June 30, 2023, the City of Bell Gardens recognized OPEB expense of $3,187,019. As of the fiscal year ended June 30, 2023, the City of Bell Gardens reported deferred outflows and inflows of resources related to OPEB from the following sources:

Deferred Outflows
of Resources
Deferred Inflows
of Resources
Differences between expected and
actual experience

$ 1,919,939

(2,071,338)
Differences between projected and
actual return on assets

4,729

-
Chan
ge in assumptions 1,097,589 (15,402,942)

Total $ 3,022,257 (17,474,280)

Amounts reported as deferred outflows of reso urces and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Year Ended
June 30
Recognized Net Deferred
Outflows and Inflows of
Resources
2023 $ (1,091,425)
2024 (1,836,557)
2025 (1,824,489)
2026 (2,211,608)
2027 (2,298,782)
Thereafter (5,189,162)
$(14,452,023)
554Exhibit 1

59 CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS

(Continued)

(10) California Joint Powers Insu rance Authority Insurance Program

a. Description of Self-Insurance Pool Pursuant to Joint Powers Agreement

The City of Bell Gardens is a member of the CALIFORNIA JOINT POWERS INSURANCE AUTHORITY (Authority ). The Authority is composed of 123 California public entities and is organized under a joint powers agreement pursuant to California Government Code §6500 et seq. The purpose of the Authority is to arrange and administer programs for the pooli ng of self-insured losses, to purchase excess insurance or reinsurance, and to arrange for group purchased insurance for property and other lines of coverage. The California JPIA began c overing claims of its members in 1978. Each member government has an elected official as its representative on the Board of Directors. The Board operates through a nine-member Executive Committee.

b. Primary Self-Insurance Program of the Authority

Each member pays an annual contribution at the beginning of the coverage period. A retrospective adjustment is then conducted annually thereafter, fo r coverage years 2012- 13 and prior. Coverage years 2013-14 and fo rward are not subject to routine annual retrospective adjustment. The total fundi ng requirement for primary self-insurance programs is based on an actuari al analysis. Costs are allo cated to individual agencies based on payroll and claims history, relative to other members of the risk-sharing pool.

Primary Liability Program

Claims are pooled separately between police and general government exposures. (1) The payroll of each member is eval uated relative to the payroll of other members. A variable credibility factor is determined for each me mber, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $100,000 for e ach occurrence and is evaluated as a percentage of the pool’s total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $100,000 to $500,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within th e second layer. (4) Incurred costs from $500,000 to $50 million, are distributed based on the outcome of cost allocation within the first and second loss layers.

The overall coverage limit fo r each member, including all layers of coverage, is $50 million per occurrence. Subsid ence losses also have a $50 mil lion per occurrence limit.

The coverage structure is composed of a combination of pooled self-insurance, reinsurance, and excess insurance. Additi onal information concerning the coverage structure is available on the Authority’s website: https://cjpia.org/coverage/risk-sharing- pools/.

555Exhibit 1

60 CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS

(Continued)

(10) California Joint Powers Insurance Authority Insurance Program (continued)

Primary Workers’ Compensation Program

Claims are pooled separately between public safety (police and fire) and general government exposures. (1) The payroll of eac h member is evaluate d relative to the payroll of other members. A variable credib ility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losse s includes incurred co sts up to $75,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the first layer. (3) The sec ond layer of losses include s incurred costs from $75,000 to $200,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the second layer. (4) Incurred costs fr om $200,000 to statutory limits are distributed based on the outcome of cost allocation within the first and second loss layers.

For 2022-23 the Authority’s pooled retent ion is $1 million per occurrence, with reinsurance to statutory limits under Ca lifornia Workers’ Compensation Law.

Employer’s Liability losses are pooled among members to $1 million. Coverage from $1 million to $5 million is purchas ed through reinsurance policies, and Employer’s Liability losses from $5 million to $10 million are pooled among members.

c. Purchased Insurance

Pollution Legal Liability Insurance

The City of Bell Gardens participates in the pollution legal liability insurance program which is available through the Authority. The policy covers sudden and gradual pollution of scheduled property, streets, and storm drai ns owned by the City of Bell Gardens.

Coverage is on a claims-made basis. Ther e is a $250,000 deductible . The Authority has an aggregate limit of $20 million.

Property Insurance

The City of Bell Gardens participates in th e all-risk property protection program of the Authority. This insurance protection is unde rwritten by several insurance companies.

City of Bell Gardens propert y is currently insured accordin g to a schedule of covered property submitted by the City of Bell Gardens to the Authority. City of Bell Gardens property currently has all- risk property insurance pr otection in the amount of $42,191,109. There is a $10,000 deductible per occurrence except for non-emergency vehicle insurance which has a $2,500 deductible.

Crime Insurance

The City of Bell Gardens purchases crime insurance coverage in the amount of $1,000,000 with a $2,500 deductible. The fideli ty coverage is provided through the Authority.

556Exhibit 1

61 CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS

(Continued)

(10) California Joint Powers Insurance Authority Insurance Program (continued)

Special Event Tenant User Liability Insurance

The City of Bell Gardens further protects ag ainst liability damages by requiring tenant users of certain property to pu rchase low-cost tenant user liability insurance for certain activities on agency property. The insurance premium is paid by the tenant user and is paid to the City of Bell Gardens according to a schedule. The City of Bell Gardens then pays for the insurance. The insurance is facilitated by the Authority.

d. Adequacy of Protection

During the past three fiscal years, none of the above programs of protection experienced settlements or judgments that exceeded pooled or insured coverage. There were also no significant reductions in pooled or insured liability coverage in 2022-23.

(11) Contingent Liabilities

a. Lawsuits in the Normal Course of Business

The City is presently involved in certain ma tters of litigation that have arisen in the normal course of conducting City business. City management believes, based upon consultation with the City Attorney, that these cases, in the aggregate, are not expected to result in a material adverse financial impact on the City. Additionally, City management believes that the City's insurance programs ar e sufficient to cover any potential losses should an unfavorable outcome materialize.

b. Federal and State Grant Programs

The City participates in several federal a nd state grant programs. These programs have been audited by the City's independent audito rs in accordance with the provisions of the federal Single Audit Act, as amended and applicable state requirements. No cost disallowances were proposed as a result of these audits. However, these programs are still subject to further examination by the grantors and the amount, if any, of expenditures 557Exhibit 1

62 CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS

(Continued)

(12) Classification of Fund Balances

The City has adopted the provisions of GASB Statement No. 54, “Fund Balance and Governmental Fund Type Definitions”. GASB 54 establishes fund balance classifications based largely upon the extent to which a gove rnment is bound to observe constraints imposed upon the use of the resources reported in governmental funds. The governmental fund statements conform to this classification and are summarized as follows as of June 30, 2023:

General Fund
Low and
Moderate
Housing Special
Revenue Fund
Capital
Improvement
Projects Capital
Project Fund
Non-major
Governmental
Funds Totals
Nonspendable
Prepaid items $ 74,148 - - - 74,148 Notes and loans 91,806 - - - 91,806 Due from Water Fund 5,117,788 - - - 5,117,788 Total Nonspendable 5,283,742 - - - 5,283,742 Restricted
Housing - 2,090,777 - - 2,090,777 Recreation and community
services -

- 17,155 17,155
Public safety - - - 963,429 963,429 Transportation - - - 4,732,274 4,732,274 Environmental - - - 146,358 146,358 Total Restricted - 2,090,777 - 5,859,216 7,949,993 Assigned
Contingencies 3,700,000 - - - 3,700,000
Post employment benefits 17,343,682 - - 144,490 17,488,172 Compensated absences 3,347,332 - - - 3,347,332 Interfund loans receivable 668,749 - - - 668,749 Total Assigned 25,059,763 - - 144,490 25,204,253 Unassigned - - (1,409,402) (83,121) (1,492,523) Totals $ 30,343,505 2,090,777 (1,409,402) 5,920,585 36,945,465

558Exhibit 1

63 CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS

(Continued)

(13) Successor Agency Trust For Assets of Former Community Development Commission

On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 26 (“the Bill”) that provides for the dissolution of al l redevelopment agencies in the State of California. This action impacted the reporting entity of the City of Bell Gardens that previously had reported a redevelopment agency within the reporting entity of the City as a blended component unit.

The Bill directs the State Controller of the Stat e of California to review the propriety of any transfers of assets between redevelopm ent agencies and othe r public bodies that occurred after January 1, 2011. If the public body that receiv ed such transfers is not contractually committed to a third party for the expenditure or encumbrance of those assets, the State Controller is required to order the available assets to be transferred to the public body designated as the successor agency by the Bill.

Management believes, in consultation with legal counsel, that the obligations of the former community development commission due to the City are valid enforceable obligations payable by the successor agency tr ust under the requirements of the Bill. The City’s position on this issue is not a position of settled law and there is considerable legal uncertainty regarding this issue. It is reas onably possible that a le gal determination may be made at a later date by an appropriate judicial authority that would resolve this issue unfavorably to the City.

In accordance with the timeline set forth in the Bill (as modified by the California Supreme Court on December 29, 2011) all rede velopment agencies in the State of California were dissolved and ceased to operate as a legal entity as of February 1, 2012.

a. Cash and investments

Cash and investments reported in the accompanying financial statements consisted of the following:

Cash and investments $2,197,419
Cash and investments with fiscal agent 2,757,572
Total cash and investments $4,954,991
559Exhibit 1

64 CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS

(Continued)

(13) Successor Agency Trust For Assets of Former Community Development Commission (continued)

b. Notes and Loans Receivable

Notes and loans receivable as of June 30, 2023, consist of the following:

On April 1, 2005, Bell Gardens Housing Partners , L.P., a California limited partnership entered into a promissory note to pay the former Bell Gardens Community Development Commission $3,812,203 for the payment of public and private debts. The former Commission has provided certain financial assistance in construction of a 72-unit senior affordable housing project by providing a Commission Loan (which is represented by this Promissory Note) in the amount of $3,812,203 for the acquisition and clearing of the site and to help defray Developer' s costs. The promissory not e amount shall bear simple interest at the rate of 3% per annum, and 10% per annum shall accrue upon the amount of each payment required upon the date each su ch payment is due. The Promissory Note shall be paid from “Residual Receipts”, defined as an amount equal to sixty-five percent (65%) of the net profits produ ced from the project (on a pr orate basis), until the note amount has been repaid in fu ll. Any remaining principal, interest and other amounts due and owing under this promissory note shall be paid in full on or be fore the fifty-fifth (55th) anniversary of the date of the promissory note. The Successor Agency’s outstanding balance as of June 30, 2023, including interest of $798,994, is $2,313,953.

Total notes and loans receivable at June 30, 2023, were $2,313,953. 560Exhibit 1

65 CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS

(Continued)

(13) Successor Agency Trust For Assets of Former Community Development Commission (continued)

c. Capital Assets

An analysis of capital assets as of June 30, 2023, follows:

Beginning Ending
Description Balance Additions Deletions Balance

Non-depreciable:

Land $ 1,773,001 - - 1,773,001

Total non-depreciable $ 1,773,001 - - 1,773,001

d. Long-Term Debt

The following debt was transferred from the Community Development Commission to the Successor Agency as of February 1, 2012 as a result of the dissolution. A description of long-term debt outstanding of the Successor Agency as of June 30, 2023, follows:

Beginning Ending Due within
Balance Additions Deletions Balance One Year
Advances from City $37,859,353 309,504 745,591 37,423,266 - Tax Allocation Bonds Payable:
2014 Refunding Series A 520,000 - 520,000 - -
2014 Refunding Series B 4,105,000 - 445,000 3,660,000 460,000 2014 Refunding Series C 8,040,000 - 500,000 7,540,000 520,000 Unamortized Bond Premium 163,051 - 23,294 139,757 23,293 Unamortized Bond Discount (13,003) - (1,443) (11,560) (1,445) Revenue Bonds Payable:
2005 Series A Project Area No. 1 180,000 - 180,000 - -
2005 Series A Central City
Project Area 1,680,000 - 160,000 1,520,000 170,000
Unamortized Bond Premium 48,060 - 6,868 41,192 6,868

Subtotal $52,582,461 309,504 2,579,310 50,312,655 1,178,716

Advances from City

The advances from the City consist of $37,423,266 loans including ac crued interest of $16,212,719. Accrued interest is calculated in accordance with HSC Section 34191.416 which states that interest shall be calculate d from the origin of the loan at a simple interest rate of three percent.
561Exhibit 1

66 CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS

(Continued)

(13) Successor Agency Trust For Assets of Former Community Development Commission (continued)

d. Long-Term Debt, (Continued)

2005 Revenue Bonds, Series A

On June 22, 2005, the Commission issued $4,775,000 of revenue bonds with an interest rate of 7.75%. The proceeds were used to fi nance redevelopment ac tivities to benefit Project No. 1 Redevelopment Area and Cent ral City Redevelopment Area, to fund a reserve fund, and to pay for the costs of issuing the bonds (insurance, underwriter discount, and other costs). Interest is paid semi-annually on April 1 and October 1 with a final maturity date of October 1, 2029. As of June 30, 2023, the unamortized premium outstanding was $41,192 and the total principal outstanding was $1,520,000.

At June 30, 2023, the annual requirements to re pay the outstanding indebtedness were as follows:

Fiscal Year
Principal Interest Total

2024 $ 170,000 117,800 287,800
2025 185,000 104,625 289,625
2026 200,000 90,288 290,288
2027 215,000 74,788 289,788
2028 230,000 58,125 288,125
2029-2030 520,000
61,225 581,225

Total $1,520,000 506,851 2,026,851

562Exhibit 1

67 CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS

(Continued)

(13) Successor Agency Trust For Assets of Former Community Development Commission (continued)

d. Long-Term Debt, (Continued)

2014 Tax Allocation Revenue Refunding Bonds, Series A, B & C

On June 18, 2014, the Successor Agency issued a total of $21,455,000 of revenue refunding bonds, Series A, B, and C.

The 2014 Series A and B reve nue refunding bonds were issued for $10,330,000 with an average interest rate of 4.41% and were used to advance refund the $12.5 million of outstanding 2003 Series A and B revenue bonds with an average interest rate of 5.32%.

This refunding resulted in a net present value savings fo r the Successor Agency of approximately $1.5 million.

The 2014 Series C, Second Subordinate Tax Allocation Revenue Refunding Bonds were issued for a total of $11,125,000 with an average interest rate of 4.8%. The bond proceeds were used to pay off the Bear Ster ns note in the amount of $8.3 million which had been in default and to pay the related other cost of issuance. The estimated remaining $1,110,095 was put into a reserve account with the trustee per the bond indenture agreement.

At June 30, 2023, the total principal outst anding for the 2014 Series B and C were $11,200,000.

563Exhibit 1

68 CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS

(Continued)

(13) Successor Agency Trust For Assets of Former Community Development Commission (continued)

d. Long-Term Debt, (Continued)

2014 Tax Allocation Revenue Refundi ng Bonds, Series A, B & C, (Continued)

As of June 30, 2023, the annual requirements to repay the outstanding indebtedness for the 2014 Series B bonds are as follows:

Fiscal Year Principal Interest Total

2024 $ 460,000 145,650 605,650
2025 475,000 126,875 601,875
2026 500,000 102,500 602,500
2027 525,000 76,875 601,875
2028 545,000 53,531 598,531
2029-2030 1,155,000
43,781 1,198,781

Total $3,660,000 549,212 4,209,212

As of June 30, 2023, the annual requirements to repay the outstanding indebtedness for the 2014 Series C bonds are as follows:

Fiscal Year Principal Interest Total

2024 $ 520,000 367,941 887,941
2025 540,000 345,079 885,079
2026 565,000 318,737 883,737
2027 590,000 289,037 879,037
2028 630,000 257,664 887,664
2029-2032 4,695,000
588,488 5,283,488

Total $7,540,000 2,166,946 9,706,946

564Exhibit 1

69 CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS

(Continued)
(13) Successor Agency Trust For Assets of Former Community Development Commission (continued)
d. Long-Term Debt, (Continued)

Pledged Revenue

The City pledged, as security for bonds issued , either directly or through the Financing Authority, a portion of tax in crement revenue (including Low and Moderate Income Housing set-aside and pass through allocations) that it receives. The bonds issued were to provide financing for various capital proj ects, accomplish Low and Moderate Income Housing projects and to defeas e previously issued bonds. A ssembly Bill 1X 26 provided that upon dissolution of the Redevelopmen t Agency, property taxes allocated to redevelopment agencies no longer are deemed tax increment but ra ther property tax revenues and will be allocated first to suc cessor agencies to make payments on the indebtedness incurred by the dissolved re development agency. Total principal and interest remaining on the debt is $17,453,689 w ith annual debt service requirements as indicated above. For the current year, the to tal property tax revenue recognized by the City and Successor Agency for the payment of indebtedness incurred by the dissolved redevelopment agency was $3,705,954 and the de bt service obligation on the bonds was $2,512,998. The Successor Agency was able to cove r the debt service obligations for the year ended June 30, 2023.

e. Successor Agency Unfunded Liabilities

When redevelopment agencies dissolved, th ere was a certain level of unfunded accrued liabilities related to other post-employment benefits (retiree heal thcare) and pension benefits that the employees of the former redevelopment agency had accrued. In order to keep these liabilities with the Successor Agen cy, the liabilities need to be placed on a recognized obligation payment schedule (RO PS) and obtain approval from the Successor Agency Board, the Oversight Board and the State Department of Finance in order to become an enforceable obligation.

During the ROPS 15-16B process, the unfunded accrued liability was calculated, placed on the ROPS and approved by all three entiti es including the State Department of Finance. The total approved liability is $2,053,403, is made up of $1,366,885 for the OPEB; $660,681 for the CalPERS pension; and $25,837 for the CalPERS side fund and is being amortized over a 20 y ear; 22 year; and 12 year period, respectively. As of June 30, 2023 the unfunded accrued liability is $1,852,348. However, subsequent to the ROPS 15-16B approval, the liability was rejected by the DOF. The City met and conferred over the issue witch the DOF reasse rted their conclusion. The City is currently weighing their options.

f. Insurance

The Successor Agency is covered under the City of Bell Garden’s insurance policies.

Therefore, the limitation and self-insured reten tions applicable to the City also apply to the Successor Agency. Additional information as to coverage and self-insured retentions can be found in Note 9.
565Exhibit 1

70 CITY OF BELL GARDENS

NOTES TO BASIC FINANCIAL STATEMENTS

(Continued)

(14) Other Required Disclosures

Deficit Fund Balances

The following funds had deficit fund balances as of June 30, 2023:

Capital Improvement Project $1,079,557 (a)

Nonmajor Special Revenue Funds:

Community Development Block Grant 94,948 (a)
ABC Grant 2,051 (a)
JAG Grant 1,519 (a)
CalHome Grant 179,616 (a)
Office of Traffic Safety Grant 3,608 (a)

(a) The deficit fund balance will be eliminated over time as revenues exceed expenditures.

(15) Restatement of Net Position

Governmental
Activities
Net position at July 1, 2021, as originally reported $61,315,584 Adjustment for overstated construction in progress
capital assets recorded in prior periods.

(2,542,422)
Net position at July 1, 2021, as restated $58,773,162

(16) Subsequent Events

Management has evaluated subsequent events through _______ __, 2024 which is the date the financial statements were available to be issued, and has determined that there are no transactions that will have a significant impact on the City.

566Exhibit 1

71 REQUIRED SUPPLEMENTARY INFORMATION
567Exhibit 1
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:

Taxes and assessments - $ 25,139,722 29,870,403 4,730,681 Licenses and permits - 494,000 438,830 (55,170) Intergovernmental - 5,790,066 6,767,328 977,262 Charges for services - 443,865 326,019 (117,846) Use of money and property - 4,950,581 5,064,790 114,209 Fines and forfeitures - 455,250 492,407 37,157 Contributions - - 250,000 250,000 Other revenue - 1,134,199 1,607,908 473,709 Total revenues - 38,407,683 44,817,685 6,410,002 Expenditures:

Current:

General government - 7,431,088 7,442,207 (11,119) Public works - 4,864,872 4,875,644 (10,772) Public safety - 17,122,601 18,054,000 (931,399) Community development - 1,394,927 1,259,921 135,006 Parks and recreation - 5,099,493 4,245,632 853,861 Capital outlay - 1,586,800 1,461,934 124,866 Debt service:

Interest and fiscal charges - 282,355 283,507 (1,152) Principal retirement -
313,922 323,002 (9,080)
Total expenditures - 38,096,058 37,945,847 150,211 Excess (deficiency) of revenues
over (under) expenditures - 311,625 6,871,838 6,560,213 Other financing sources (uses):

Transfers in - 145,534 145,729 195 Transfers out - (1,536,498) (1,952,324) (415,826) Total other financing sources (uses) - (1,390,964) (1,806,595) (415,631) Net change in fund balances - (1,079,339) 5,065,243 6,144,582 Fund balance, beginning of year 30,343,505 30,343,505 30,343,505 - Fund balance, end of year 30,343,505 $ 29,264,166 35,408,748 6,144,582

CITY OF BELL GARDENS
General Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2023
Budget Amounts
72568Exhibit 1
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:

Use of money and property -$ 14,900 50,157 35,257 Total revenues - 14,900 50,157 35,257 Expenditures:

Current:

Community development - - - - Total expenditures - - - - Excess (deficiency) of revenues
over (under) expenditures - 14,900 50,157 35,257 Other financing sources (uses):

Transfers in - 144,238 146,678 2,440 Total other financing sources (uses) - 144,238 146,678 2,440 Net change in fund balances - 159,138 196,835 37,697 Fund balance, beginning of year 2,090,777 2,090,777 2,090,777 - Fund balance, end of year 2,090,777 $ 2,249,915 2,287,612 37,697

CITY OF BELL GARDENS
Low and Moderate Housing Special Revenue Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2023
Budget Amounts
73569Exhibit 1

74 CITY OF BELL GARDENS

NOTES TO REQUIRED SUPPLEMENTARY INFORMATION

June 30, 2023

Stewardship, Compliance and Accountability

General Budget Policies

The City’s budget is prepared under the di rection of the City Manager. Revenues are budgeted based on source. Expenditure s are budgeted by functions, with sub classification by department and object of expenditures.

The City Council approves each year’s budget submitted by the City Manager prior to the beginning of the new fiscal year. It includes proposed expenditures and estimated revenues and is legally adopted on a basis consistent with generally accepted accounting principles. Presentations are provided to th e Council prior to the a doption of the budget.

The City Manager is authorized to transf er budgeted amounts between departments and object categories, and also between program s. Council approval is required only for transfers of budgeted am ounts between funds, or for an in crease in total appropriations.

Supplemental appropriations, where required du ring the period are also approved by the Council. Budgeted expenditures are controlled at the fund level. During the year, several supplemental appropriations we re necessary. At fiscal year-end, all operating budget appropriations lapse. Capital related appropriations may be carried forward to subsequent years.

570Exhibit 1
Report date: June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Measurement period: 2021-22 2020-21 2019-20 2018-19 2017-18 Proportion of the net pension liability (asset) 0.15848% 0.17708% 0.14396% 0.14168% 0.13867% Proportionate share of the net pension
liability (asset) 18,306,182 $ 9,576,902 $ 15,663,818 $ 14,517,728 $ 13,362,387 $ Covered payroll
1 6,724,054$ 6,001,542 $ 6,147,303 $ 6,070,128 $ 6,415,166 $ Proportionate Share of the net pension liability
(asset) as percentage of covered payroll 272.25% 159.57% 254.81% 239.17% 208.29% Proportionate Share of the Fiduciary Net Position
as a percentage of the Total Pension Liability 72.17% 84.25% 73.17% 73.99% 74.75% Proportionate Share of Aggregate Employer
Contributions 2,462,970 $ 2,015,634 $ 1,908,415 $ 1,710,852 $ 1,506,791 $ Report date: June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 Fiscal Year Fiscal Year Fiscal Year Fiscal Year
Measurement period: 2016-17 2015-16 2014-15 2013-14
Proportion of the net pension liability (asset) 0.13756% 0.13644% 0.13592% 0.11614% Proportionate share of the net pension
liability (asset) 13,642,621 $ 11,806,379 $ 9,329,086 $ 7,226,815 $ Covered payroll
1 6,527,431$ 5,988,354 $ 5,673,946 $ 5,534,792 $ Proportionate Share of the net pension liability
(asset) as percentage of covered payroll 209.00% 197.16% 164.42% 130.57% Proportionate Share of the Fiduciary Net Position
as a percentage of the Total Pension Liability 72.58% 73.42% 77.67% 82.23% Proportionate Share of Aggregate Employer
Contributions 1,366,134 $ 1,214,243 $ 1,122,673 $ 904,303 $ 1 Covered Payroll represented above is based on pensionable earnings provided by the employer. However, GASB 68 defines covered-employee payroll as the total of employees that are provided pensions through the pension plan. Accordingly, if pensionable earnings are different than total earnings for covered-employees, total earnings for covered-employees, the employer should display in the disclosure footnotes the payroll based on total earnings for the covered group and recalculate the required payroll-related ratios.

Notes to Schedule:

Benefit Changes
: The figures above do not include any liability impact that may have resulted from plan changes which occurred after June 30, 2015. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes)
Changes in assumptions
: The discount rate was changed from 7.65 percent (net of administrative expense) to 7.15 percent to correct for an adjustment to exclude administrative expense for June 30, 2018. * - Fiscal year 2015 was the 1st year of implementation, therefore only nine years are shown.

CITY OF BELL GARDENS
Schedule of Proportionate Share of the Net Pension Liability and Related Ratios June 30, 2022
Cost Sharing Defined Benefit Pension Plan - Miscellaneous Last 10 Fiscal Years *
75571Exhibit 1
Report date: June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Measurement period: 2021-22 2020-21 2019-20 2018-19 2017-18 Actuarially determined contribution 1
1,941,251$ 1,728,516 $ 1,593,412 $ 1,423,751 $ 1,305,689 $ Contributions in relation to the
actuarially determined contributions 1
(1,941,251)$ (1,728,516) $ (1,593,412) $ (1,423,751) $ (1,305,689) $ Contribution deficiency (excess) - $ - $ - $ - $ - $ Covered payroll 2
6,724,054$ 6,001,542 $ 6,147,303 $ 6,231,576 $ 6,415,166 $ Contributions as a percentage of
covered payroll 2

28.87% 28.80% 25.92% 22.85% 20.35%
Report date: June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 Fiscal Year Fiscal Year Fiscal Year Fiscal Year
Measurement period: 2016-17 2015-16 2014-15 2013-14
Actuarially determined contribution 1
1,172,671$ 1,037,345 $ 860,858 $ 828,117 $
Contributions in relation to the
actuarially determined contributions 1
(1,172,671)$ (1,037,345) $ (860,858) $ (828,117) $ Contribution deficiency (excess) - $ - $ - $ - $ Covered payroll 2
6,527,431$ 5,988,354 $ 5,673,946 $ 5,534,792 $ Contributions as a percentage of
covered payroll 2

17.97% 17.32% 15.17% 14.96%
1 Employee are assumed to make contributions equal to the actuarially determined contributions. However, some employers may choose to make additional contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially determined contributions. CalPERS has determined that employer obligations referred to as "side funds" do not conform to the circumstances described in paragraph 120 of GASB 68, therefore are not considered separately financed specific liabilities. 2 Covered Payroll represented above is based on pensionable earnings provided by the employer. However, GASB 68 defines covered-employee payroll as the total of employees that are provided pensions through the pension Plan. Accordingly, if pensionable earnings are different than total earnings for covered-employees, total earnings for covered-employees, the employer should display in the disclosure footnotes the payroll based on total earnings for the covered group and recalculate the required payroll-related ratios.

Notes to Schedule:

The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal 2015-16 were from the June 30, 2013 public agency valuations.

Actuarial cost method Entry-age
Amortization method/period For detail, see June 30, 2013 Funding Valuation Report Asset valuation method Actuarial Value of Assets. For details see June 30, 2012 Funding Valuation Report Inflation 2.75%
Salary increases Varies by Entry Age and Service
Payroll growth 3.00%
Investment rate of return 7.5% Net of Pension Plan Investment and Administrative expenses, including inflation Retirement age The probabilities of Retirement are based on the 2010 CalPERS Experience Study for the period from 1997 to 2007.

Mortality The probabilities of mortality are based on the 2010 CalPERS Experience Study for the period from 1997 to 2007. Pre-retirement and Post-Retirement mortality reats included 5 years of projected mortality improvement using Scale AA published by the Society of Actuaries. * - Fiscal year 2015 was the 1st year of implementation, therefore only nine years are shown.

CITY OF BELL GARDENS
Schedule of Plan Contributions - Defined Benefit Pension Plan June 30, 2023
Cost Sharing Defined Benefit Pension Plan - Miscellaneous Last 10 Fiscal Years *
76572Exhibit 1
Report date: June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Measurement period: 2021-22 2020-21 2019-20 2018-19 2017-18 Proportion of the net pension liability (asset) 0.26890% 0.35031% 0.25491% 0.25795% 0.26512% Proportionate share of the net pension
liability (asset) 31,060,236 $ 18,945,970 $ 27,735,721 $ 26,432,318 $ 25,547,563 $ Covered payroll
1 5,668,949$ 5,149,405 $ 5,527,368 $ 5,734,040 $ 6,080,034 $ Proportionate Share of the net pension liability
(asset) as percentage of covered payroll 547.90% 367.93% 501.79% 460.97% 420.19% Proportionate Share of the Fiduciary Net Position
as a percentage of the Total Pension Liability 71.09% 77.31% 71.74% 71.89% 71.24% Proportionate Share of Aggregate Employer
Contributions 5,094,515 $ 3,449,574 $ 3,645,018 $ 2,963,859 $ 2,699,487 $ Report date: June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 Fiscal Year Fiscal Year Fiscal Year Fiscal Year
Measurement period: 2016-17 2015-16 2014-15 2013-14
Proportion of the net pension liability (asset) 0.26462% 0.27618% 0.29656% 0.30157% Proportionate share of the net pension
liability (asset) 26,242,972 $ 23,898,271 $ 20,355,288 $ 18,765,190 $ Covered payroll
2 5,685,550$ 5,339,083 $ 5,076,167 $ 4,756,423 $ Proportionate Share of the net pension liability
(asset) as percentage of covered payroll 461.57% 447.61% 401.00% 394.52% Proportionate Share of the Fiduciary Net Position
as a percentage of the Total Pension Liability 68.85% 68.48% 71.66% 73.81% Proportionate Share of Aggregate Employer
Contributions 2,001,511 $ 1,793,929 $ 1,751,135 $ 1,496,855 $ 1 Covered Payroll represented above is based on pensionable earnings provided by the employer. However, GASB 68 defines covered-employee payroll as the total of employees that are provided pensions through the pension plan. Accordingly, if pensionable earnings are different than total earnings for covered-employees, total earnings for covered-employees, the employer should display in the disclosure footnotes the payroll based on total earnings for the covered group and recalculate the required payroll-related ratios.

Notes to Schedule:

CITY OF BELL GARDENS
Schedule of Proportionate Share of the Net Pension Liability and Related Ratios June 30, 2023
Cost Sharing Defined Benefit Pension Plan - Safety
Last 10 Fiscal Years *
77573Exhibit 1
Report date: June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Measurement period: 2021-22 2020-21 2019-20 2018-19 2017-18 Actuarially determined contribution 1
3,090,686$ 2,751,377 $ 3,781,851 $ 3,479,779 $ 3,299,926 $ Contributions in relation to the
actuarially determined contributions 1
(3,090,686)$ (2,751,377) $ (3,781,851) $ (3,479,779) $ (3,299,926) $ Contribution deficiency (excess) - $ - $ - $ - $ - $ Covered payroll 2
5,668,949$ 5,149,405 $ 5,527,368 $ 5,688,142 $ 6,080,034 $ Contributions as a percentage of
covered payroll 2

54.52% 53.43% 68.42% 61.18% 54.27%
Report date: June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 Fiscal Year Fiscal Year Fiscal Year Fiscal Year
Measurement period: 2016-17 2015-16 2014-15 2013-14
Actuarially determined contribution 1
2,972,647$ 2,712,086 $ 2,451,516 $ 2,189,458 $
Contributions in relation to the
actuarially determined contributions 1
(2,972,647)$ (2,712,086) $ (2,451,516) $ (2,189,458) $ Contribution deficiency (excess) - $ - $ - $ - $ Covered payroll 2
5,685,550$ 5,339,083 $ 5,076,167 $ 4,756,423 $
Contributions as a percentage of
covered payroll 2

52.28% 50.80% 48.29% 46.03%
1 Employee are assumed to make contributions equal to the actuarially determined contributions. However, some employers may choose to make additional contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially determined contributions. CalPERS has determined that employer obligations referred to as "side funds" do not conform to the circumstances described in paragraph 120 of GASB 68, therefore are not considered separately financed specific liabilities. 2 Covered Payroll represented above is based on pensionable earnings provided by the employer. However, GASB 68 defines covered-employee payroll as the total of employees that are provided pensions through the pension Plan. Accordingly, if pensionable earnings are different than total earnings for covered-employees, total earnings for covered-employees, the employer should display in the disclosure footnotes the payroll based on total earnings for the covered group and recalculate the required payroll-related ratios.

Notes to Schedule:

The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal 2015-16 were from the June 30, 2013 public agency valuations.

Mortality The probabilities of mortality are based on the 2010 CalPERS Experience Study for the period fro m
1997 to 2007. Pre-retirement and Post-Retirement mortality reats included 5 years of projected mortality improvement using Scale AA published by the Society of Actuaries. * - Fiscal year 2015 was the 1st year of implementation, therefore only nine years are shown.

CITY OF BELL GARDENS
Schedule of Plan Contributions - Defined Benefit Pension Plan June 30, 2023
Cost Sharing Defined Benefit Pension Plan - Safety
Last 10 Fiscal Years *
78574Exhibit 1
Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2022-23 2021-22 2020-21 2019-20 2018-19
Total OPEB Liability
Service cost 2,246,094 $ 3,305,603 $ 3,178,212 $ 2,397,228 $ 2,333,069 $ Interest on the total OPEB Liability 2,244,436 1,731,289 1,665,893 2,178,333 2,179,874 Actual and expected experience difference - (2,646,712) - 4,479,863 - Changes in assumptions (1,213,094) (17,288,971) 618,446 (1,846,156) 4,445,153 Benefit payments ** (1,488,499) (1,154,654) (1,038,109) (1,023,490) (881,139) Net change in total OPEB liability 1,788,937 (16,053,445) 4,424,442 6,185,778 8,076,957 Total OPEB liability - beginning 63,023,337 79,076,782 74,652,340 68,466,562 60,389,605 Total OPEB liability - ending (a) 64,812,274$ 63,023,337 $ 79,076,782 $ 74,652,340 $ 68,466,562 $ Plan Fiduciary Net Position
Contribution - employer 1,488,499 $ 1,154,654 $ 1,038,109 $ 1,023,490 $ 881,139 $ Net investment income 16,124 (35,993) 60,345 9,798 15,543 Benefit payments ** (1,488,499) (1,154,654) (1,038,109) (1,023,490) (881,139) Administrative expense (1,602) (1,818) (1,635) (1,304) (575) Net change in plan fiduciary net position 14,522 (37,811) 58,710 8,494 14,968 Plan fiduciary net position - beginning 271,789 309,600 250,890 242,396 227,428 Plan fiduciary net position - ending (b) 286,311$ 271,789 $ 309,600 $ 250,890 $ 242,396 $ Net OPEB liability - ending (a)-(b) 64,525,963$ 62,751,548 $ 78,767,182 $ 74,401,450 $ 68,224,166 $ Employee payroll - $ 12,402,855$ 11,231,170 $ 11,586,109 $ 12,414,529 $ Net OPEB liability as a percentage of
employee payroll #DIV/0! 505.94% 701.33% 642.16% 549.55% Notes to Schedule
Historical information is required only for measurement periods for which GASB 75 is applicable. Future years' information will be displayed up to 10 years as information becomes available.
* - Fiscal year 2017-18 was the 1st year of implementation, therefore only six years are shown. ** - Benefit payments include refunds and the implied subsidy benefit payments.

CITY OF BELL GARDENS
Schedule of Changes in the Net OPEB Liability and Related Ratios Last 10 Fiscal Years *
79575Exhibit 1
Fiscal Year
2017-18
Total OPEB Liability
Service cost 2,325,434 $
Interest on the total OPEB Liability 2,038,237
Actual and expected experience difference -
Changes in assumptions (1,183,098)
Benefit payments ** (827,361)
Net change in total OPEB liability 2,353,212
Total OPEB liability - beginning 58,036,393
Total OPEB liability - ending (a) 60,389,605$
Plan Fiduciary Net Position
Contribution - employer 827,361 $
Net investment income 13,744
Benefit payments ** (827,361)
Administrative expense (559)
Net change in plan fiduciary net position 13,185
Plan fiduciary net position - beginning 214,243
Plan fiduciary net position - ending (b) 227,428$
Net OPEB liability - ending (a)-(b) 60,162,177$
Employee payroll 12,895,877 $
Net OPEB liability as a percentage of
employee payroll 466.52%

CITY OF BELL GARDENS
Schedule of Changes in the Net OPEB Liability and Related Ratios (Continued) Last 10 Fiscal Years *
80576Exhibit 1
Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2022-23 2021-22 2020-21 2019-20 2018-19
Actuarially determine contribution 1,488,499$ 1,154,654 $ 1,038,109 $ 1,023,490 $ 881,139 $ Contribution in relation to the
actuarially determined contributions (1,488,499) (1,154,654) (1,038,109) (1,023,490) (881,139) Contribution excess - $ - $ - $ - $ - $ Employee payroll - $ 12,402,855$ 11,231,170 $ 11,586,109 $ 12,414,529 $ Contributions as a percentage
of employee payroll #DIV/0! 9.31% 9.24% 8.83% 7.10%
Fiscal Year
2017-18
Actuarially determine contribution 823,361$
Contribution in relation to the
actuarially determined contributions (823,361)
Contribution excess - $
Employee payroll 12,895,877 $
Contributions as a percentage
of employee payroll 6.38%
Notes to Schedule
Actuarial cost method Entry-age
Amortization method/ Level percent of pay
period
Asset valuation method Fair value of assets
Inflation 2.75%
Payroll growth 2.75% per year
Investment rate of return 6% Net of Pensin Plan Investment and Administrative expenses, includes inflation
Healthcare Cost-Trend Assumed increases occur once each year with premium increase s
Rates of 7.0% on 1/1/19 with increases of 0.5% less each January 1 thereafter through 2024. Assumed 5% increases for year 2024 and later.

Mortality The probabilties of mortality are based on the 2010 CalPERS Experience Study for the period from 1997 to 2007. Pre-retirement and Post-Retirement mortality rates incuded 5 years of projected mortality improvement using Scale AA published by the Society of Actuaries.
* - Fiscal year 2017-18 was the 1st year of implementation, therefore only six years are shown. ** - Benefit payments include refunds and the implied subsidy benefit payments.

CITY OF BELL GARDENS
Schedule of Plan Contributions - OPEB Plan
Last 10 Fiscal Years *
80577Exhibit 1

81 SUPPLEMENTARY INFORMATION

578Exhibit 1

82 CITY OF BELL GARDENS

NONMAJOR GOVERNMENTAL FUNDS

June 30, 2023
SPECIAL REVENUE FUNDS:

Public Safety Augmentation (PSAF) – This is Proposition 172 fund specified for the receipt of ½ cent state sales tax for local public safety services. This fund is used to account for jail services and training.

COPS State (SLEF) – The Citizens Option for Public Safety (COPS) program was originally adopted in AB3229 (Brulte) 1996 with funding from the state general fund. This fund is to be used to support front-line law enforcement, county jails, district attorneys for prosecution and local juvenile justice programs. This fund supports the City’s jail operation in the Public Safety Augmentation fund.

State Gas Tax - This fund is used to account for revenues and expenditures under California Streets and Highways Code Sections 2105, 2106, 2107 and 2107.5. A portion of the excise tax collected on gasoline is allocated to cities an d these funds are expended for street improvement and maintenance programs.

Asset Forfeiture – This fund accounts for revenues received from asset seizures which can only be used to augment law enforcement expenditures.

Waste Management – This fund is to account for the collection of a waste surcharge from consumers used to finance waste management programs.

Community Development Block Grant – This fund accounts for revenues received from the U.S. Department of Housing and Urban Develo pment for housing rehabilitation and other community improvement projects.

Proposition A - This fund is used to account for revenues and expenditures related to a half-cent sales tax under Proposition A approved by Los Angeles County voters in 1980. A portion of Proposition A funds is allocated to cities and these funds must be used exclusively to benefit public transit. Expenditures related to fixed rout e and paratransit services, transportation demand management, transportation systems management and fare subsidy programs that exclusively benefit transit are all eligible uses of Proposition A funds.

Proposition C - This fund is used to account for revenues and expenditures related to a half-cent sales tax under Proposition C approved by Los Angeles County voters in 1990. A portion of Proposition C funds is allocated to cities and thes e funds must be used to benefit public transit, congestion management programs, bikeways and bike lanes, street improvements supporting public transit service, and pavement management system projects.

Air Quality Improvement - This fund is used to account for revenues and expenditures under California Assembly Bill 2766 signed into law in 1990, under the California Health and Safety Code Sections 44220 - 44247. AB 2766 provides for the collection of an additional fee in motor vehicle registration fees, a portion of which is allocated to cities to fund various air pollution reduction programs.

Recycling Grant – This fund accounts for the state gran t used for the specific purpose of recycling oil.
579Exhibit 1

83 CITY OF BELL GARDENS

NONMAJOR GOVERNMENTAL FUNDS

June 30, 2023
SPECIAL REVENUE FUNDS:

Academic Pursuit – This fund is used to account for the interest income generated from designated principal in the General Fund to be used only for Academic Grants for qualified residents of the City of Bell Gardens.

Post-Employment Benefits – This fund is used to account for payment of certain health insurance benefits available to eligible retired employees.

Measure R - This fund is used to account for revenues and expenditures related to a half cent sales tax under Measure R approved by Los Angeles County voters in November 2008. A portion of Measure R funds is allocated to cities and these funds must be used for streets and roads, traffic control measures, bikeways and pedestrian impr ovements, public transit services and capital improvements, transportation marketing, and congestion management program.

ABC Grant –The Department of Alcoholic Beverage Control (“ABC”) offers grant opportunities once a year for qualified law enforcement agenci es. The ABC Grant provides an opportunity for BGPD to establish close working relationships between ABC district offices and prioritize law enforcement efforts. This fund accounts for th e receipt and use of the ABC grant funds.

JAG Grant – The Edward Byrne Justice Assistance Grant (JAG) Program annually provides funding to local police agencies for programs or items related to local initiatives, technical assistance, training, personnel, equipment, suppli es, contractual support, and information systems related to law enforcement services. This fund ac counts for the receipt and use of the JAG grant funds.

COPS Grant - This fund is used to account for revenues and expenditures related to a 1% fee on cable television and other video subscription services to fund the purchase and acquisition of capital equipment and facilities necessary to program and broadcast PEG (public, education, and government) events on designated cable channels.

Anson Ford Park – This fund is used to account for the resources and expenditures involving the operations of the Bell Gardens Sports Complex.

SB 1 Road Maintenance – This fund is used to account for the revenues raised by the Road Repair and Accountability Act of 2017 (SB 1) and allocated to the City for investment in transportation systems. At the end of the fiscal ye ar, the City transfers all revenues received to the Gas Tax fund to support the SB 1 projects.

Measure M - This fund will be used to meet the goals of improving freeway traffic flow; accelerating rail construction and building rail lines enhancing local regional and express bus service, bike and pedestrian connections; impr oving transportation system connectivity, streets and intersections; addressing transit and highway safety; providing more accessibility, convenience, and affordability of transportati on for seniors, students and the disabled; and incorporating modern technology in the transportation system. 580Exhibit 1

84 CITY OF BELL GARDENS

NONMAJOR GOVERNMENTAL FUNDS

June 30, 2023
SPECIAL REVENUE FUNDS:

CalHome Grant - This CalHome Grant Program provides grants to local public agencies and nonprofit corporations for first-time homebuyer an d housing rehabilitation assistance, homebuyer counseling and technical assistance activities to enable low-and very low-income households to become or remain homeowners. This fund accounts for the receipt and use of the CalHome Grant funds.

Office of Traffic Safety Grant – This fund was established to account for the receipt and disbursement of federal grant monies received th rough the State Office of Traffic Safety. These funds are restricted for operations utilized to en hance traffic safety and to reduce drunk driving within the City.

CAPITAL PROJECT FUND:

Transportation Development Act Fund - This fund is used to account for revenues distributed by the LACMTA under the Transportation Development Act (TDA). The revenue may only be used to provide facilities for the exclusive use of pedestrians and bicycles.

581Exhibit 1

85 (this page intentionally left blank)

582Exhibit 1
Public
Safety COPS State
Augmentation State Gas Asset
(PSAF) (SLESF) Tax Forfeiture
ASSETS
Cash and investments 582,181 $ 64,867 130,683 302,827 Receivables:

Accounts - - - - Notes and loans - - - - Interest 1,026 1,264 - 636 Due from other governments 11,693
107,589 86,621 -
Total assets 594,900 $ 173,720 217,304 303,463

LIABILITIES
Accounts payable 1,276 $ - 121,861 - Due to other governments - - - - Deposits payable - - - 102,895 Due to other funds - - - - Total liabilities 1,276 - 121,861 102,895

DEFERRED IN FLOWS OF RESOURCES
Unavailable revenue - 107,589 - - Total deferred in flows
(outflows) of resources -
107,589 - -

FUND BALANCES
Restricted 593,624 66,131 95,443 200,568 Assigned - - - - Unassigned - - - - Total fund balances (deficits) 593,624 66,131 95,443 200,568 Total liabilities, deferred inflows
and fund balances 594,900 $ 173,720 217,304 303,463

CITY OF BELL GARDENS
Nonmajor Governmental Funds
Combining Balance Sheet
June 30, 2023
Special Revenue Funds
86583Exhibit 1
Community
Development
Waste Block Proposition Proposition Air Quality Recycling Academic Management Grant A C Improvement Grant Pursuit
314,372 - 452,642 2,671,140 6,883 139,172 - - - - - - - - - 1,880,040 - - - - 345,621 - 20 878 8,829 - 521 - 139,929 311,993 - - 8,320 - - 454,301 2,192,053 453,520 2,679,969 15,203 139,693 345,621 11,929 60,235 87,046 23,120 87 2,403 - - 43,574 - - - - - - - - - - - - - 42,409 - - - - - 11,929 146,218 87,046 23,120 87 2,403 - - 2,140,783 - - 8,320 - 345,621 - 2,140,783 - - 8,320 - 345,621 442,372 - 366,474 2,656,849 6,796 137,290 - - - - - - - - - (94,948) - - - - - 442,372 (94,948) 366,474 2,656,849 6,796 137,290 - 454,301 2,192,053 453,520 2,679,969 15,203 139,693 345,621 Special Revenue Funds
87584Exhibit 1
Post- Anson
Employment Measure ABC JAG COPS Ford
Benefits R Grant Grant Grant Park
ASSETS
Cash and investments 144,490 $ 1,933,878 - - 167,038 147,583 Receivables:

Accounts - - - - - - Notes and loans - - - - - - Interest - 6,518 - - 276 - Due from other governments -
- - - 39,449 -
Total assets 144,490 $ 1,940,396 - - 206,763 147,583

LIABILITIES
Accounts payable - $ 7,287 - - - 13,391 Due to other governments - - - - - - Deposits payable - - - - - - Due to other funds - - 2,051 1,519 - - Total liabilities - 7,287 2,051 1,519 - 13,391

DEFERRED IN FLOWS OF RESOURCES
Unavailable revenue - - - - 127,190 - Total deferred in flows (outflows)
of resources -
- - - 127,190 -

FUND BALANCES
Restricted - 1,933,109 - - 79,573 134,192 Assigned 144,490 - - - - - Unassigned - - (2,051) (1,519) - - Total fund balances (deficits) 144,490 1,933,109 (2,051) (1,519) 79,573 134,192 Total liabilities, deferred inflows
and fund balances 144,490 $ 1,940,396 - - 206,763 147,583 Special Revenue Funds

CITY OF BELL GARDENS
Nonmajor Governmental Funds, Continued
Combining Balance Sheet
June 30, 2023
88585Exhibit 1
Capital
Projects
Fund
Office of Total
SB 1 Traffic Transportation Nonmajor
Road Measure CalHome Safety Development Governmental
Maintenance M Grant Grant Act Funds
- 1,195,128 - - - 8,252,884 - - - - 39,765 39,765 - - 514,508 - - 2,740,169 2,274 3,828 - - - 26,070 154,144 - 672,117 26,045 - 1,557,900 156,418 1,198,956 1,186,625 26,045 39,765 12,616,788 - 5,320 12,621 - 10,516 357,092 - - - - - 43,574 - - - - - 102,895 156,418 - 658,703 3,608 29,249 893,957 156,418 5,320 671,324 3,608 39,765 1,397,518 - - 694,917 26,045 - 3,450,465 - - 694,917 26,045 - 3,450,465 - 1,193,636 - - - 7,906,057 - - - - - 144,490 - - (179,616) (3,608) - (281,742) - 1,193,636 (179,616) (3,608) - 7,768,805 156,418 1,198,956 1,186,625 26,045 39,765 12,616,788 Special Revenue Funds
89586Exhibit 1
Public
Safety COPS State
Augmentation State Gas Asset
(PSAF) (SLESF) Tax Forfeiture
Revenues:

Taxes and assessments - $ - - - Intergovernmental 148,443 165,271 1,870,667 48,639 Charges for services - - - - Use of money and property 3,351 3,478 4,277 1,984 Fines and forfeitures - - - 22,713 Other revenue 110 - - - Total revenues 151,904 168,749 1,874,944 73,336 Expenditures:

Current:

General government - - - - Public works - - 1,868,075 - Public safety 249,254 - - 135,973 Community development - - - - Parks and recreation - - - - Capital outlay - - 268,994 13,834 Total expenditures 249,254 - 2,137,069 149,807 Excess (deficiency) of
revenues over
(under) expenditures (97,350) 168,749 (262,125) (76,471) Other financing sources (uses):

Transfers in 298,000 - 225,005 - Transfers out - (298,000) - - Total other financing
sources (uses) 298,000 (298,000) 225,005 - Net change in fund balances 200,650 (129,251) (37,120) (76,471) Fund balances (deficit), beginning of year.
as restated 392,974 195,382 132,563 277,039 Fund balances (deficit), end of year 593,624 $ 66,131 95,443 200,568 Special Revenue Funds

CITY OF BELL GARDENS
Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances For the Year Ended June 30, 2023
90587Exhibit 1
Community
Development
Waste Block Proposition Proposition Air Quality Recycling Academic Management Grant A C Improvement Grant Pursuit
3,980,204 - 1,110,081 920,781 - - - - 171,102 114,134 - 38,338 10,011 - - - - 38,575 - - - - 29 2,804 25,065 - 1,553 - - - - - - - - - - - - - - - 3,980,204 171,131 1,227,019 984,421 38,338 11,564 - - - - - - - - 3,834,861 - 1,302,895 73,081 31,542 20,632 - - - - - - - - - - - - - - - - - - - - - - - 191,129 - 166,800 - - - 3,834,861 191,129 1,302,895 239,881 31,542 20,632 - 145,343 (19,998) (75,876) 744,540 6,796 (9,068) - - - 228,694 - - - - - - - - - - - - - 228,694 - - - - 145,343 (19,998) 152,818 744,540 6,796 (9,068) - 297,029 (74,950) 213,656 1,912,309 - 146,358 - 442,372 (94,948) 366,474 2,656,849 6,796 137,290 - Special Revenue Funds
91588Exhibit 1
Post- Anson
Employment Measure ABC JAG COPS Ford
Benefits R Grant Grant Grant Park
Revenues:

Taxes and assessments - $ - - - - - Intergovernmental - 690,387 - - - - Charges for services 79,932 - - - - 257,202 Use of money and property - 18,368 - - 837 - Fines and forfeitures - - - - - - Other revenue - - - - - - Total revenues 79,932 708,755 - - 837 257,202 Expenditures:

Current:

General government 1,369,571 - - - - - Public works - 55,363 - - - - Public safety - - - - - - Community development - - - - - - Parks and recreation - - - - - 140,165 Capital outlay - 156,762 - - - - Total expenditures 1,369,571 212,125 - - - 140,165 Excess (deficiency) of
revenues over
(under) expenditures (1,289,639) 496,630 - - 837 117,037 Other financing sources (uses):

Transfers in 1,289,639 16,173 - - - - Transfers out - - - - - - Total other financing
sources (uses) 1,289,639 16,173 - - - - Net change in fund balances - 512,803 - - 837 117,037 Fund balances (deficit), beginning of year.
as restated 144,490 1,420,306 (2,051) (1,519) 78,736 17,155 Fund balances (deficit), end of year 144,490 $ 1,933,109 (2,051) (1,519) 79,573 134,192

CITY OF BELL GARDENS
Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances, Continued For the Year ended June 30, 2023
Special Revenue Funds
92589Exhibit 1
Capital
Projects
Fund
Office of Total
SB 1 Traffic Transportation Nonmajor
Road Measure CalHome Safety Development Governmental
Maintenance M Grant Grant Act Funds
- - - - - 6,011,066 - 780,975 - 42,156 39,765 4,119,888 - - - - - 375,709 - 11,927 - - - 73,673 - - - - - 22,713 - - - - - 110 - 792,902 - 42,156 39,765 10,603,159 - - - - - 1,369,571 - - - - - 7,186,449 - - - - - 385,227 - - 77,986 - - 77,986 - - - - - 140,165 - 652,706 - 65,062 39,765 1,555,052 - 652,706 77,986 65,062 39,765 10,714,450 - 140,196 (77,986) (22,906) - (111,291) - - - - - 2,057,511 - - - - - (298,000) - - - - - 1,759,511 - 140,196 (77,986) (22,906) - 1,648,220 - 1,053,440 (101,630) 19,298 - 6,120,585 - 1,193,636 (179,616) (3,608) - 7,768,805 Special Revenue Funds
93590Exhibit 1
Variance with
Final Budget
Budget Actual Positive
Final Amounts (Negative)
Revenues:

Intergovernmental 125,000$ 148,443 23,443
Use of money and property 500 3,351 2,851 Other revenue - 110 110
Total revenues 125,500 151,904 26,404
Expenditures:

Current:

Public safety 252,500 249,254 3,246
Total expenditures 252,500 249,254 3,246 Excess (deficiency) of revenues
over (under) expenditures (127,000) (97,350) 29,650 Other financing sources (uses):

Transfers in 298,000 298,000 -
Total other financing sources (uses) 298,000 298,000 - Net change in fund balances 171,000 200,650 29,650 Fund balance, beginning of year 392,974 392,974 - Fund balance, end of year 563,974 $ 593,624 29,650

CITY OF BELL GARDENS
Public Safety Augmentation (PSAF) Special Revenue Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2023
94 591Exhibit 1
Variance with
Final Budget
Budget Actual Positive
Final Amounts (Negative)
Revenues:

Intergovernmental 100,000$ 165,271 65,271
Use of money and property 150 3,478 3,328 Total revenues 100,150 168,749 68,599
Expenditures:

Current:

Public safety - - -
Total expenditures - - -
Excess (deficiency) of revenues
over (under) expenditures 100,150 168,749 68,599 Other financing sources (uses):

Transfers out (298,000) (298,000) -
Total other financing sources (uses) (298,000) (298,000) - Net change in fund balances (197,850) (129,251) 68,599 Fund balance, beginning of year 195,382 195,382 - Fund balance, end of year (2,468) $ 66,131 68,599

CITY OF BELL GARDENS
COPS State (SLESF) Special Revenue Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2023
95 592Exhibit 1
Variance with
Final Budget
Budget Actual Positive
Final Amounts (Negative)
Revenues:

Intergovernmental 1,223,132$ 1,870,667 647,535
Use of money and property - 4,277 4,277 Total revenues 1,223,132 1,874,944 651,812
Expenditures:

Current:

Public works 1,806,735 1,868,075 (61,340)
Capital outlay 460,997 268,994 192,003
Total expenditures 2,267,732 2,137,069 130,663 Excess (deficiency) of revenues
over (under) expenditures (1,044,600) (262,125) 782,475 Other financing sources (uses):

Transfers in - 225,005 225,005
Total other financing sources (uses) - 225,005 225,005 Net change in fund balances (1,044,600) (37,120) 1,007,480 Fund balance, beginning of year 132,563 132,563 - Fund balance, end of year (912,037) $ 95,443 1,007,480

CITY OF BELL GARDENS
State Gas Tax Special Revenue Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2023
96 593Exhibit 1
Variance with
Final Budget
Budget Actual Positive
Final Amounts (Negative)
Revenues:

Intergovernmental -$ 48,639 48,639 Use of money and property - 1,984 1,984 Fines and forfeitures 50,000 22,713 (27,287) Total revenues 50,000 73,336 23,336 Expenditures:

Current:

Public safety 100,000 135,973 (35,973)
Capital outlay 13,834 13,834 -
Total expenditures 113,834 149,807 (35,973) Net change in fund balances (63,834) (76,471) (12,637) Fund balance, beginning of year 277,039 277,039 - Fund balance, end of year 213,205 $ 200,568 (12,637)

CITY OF BELL GARDENS
Asset Forfeiture Special Revenue Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2023
97 594Exhibit 1
Variance with
Final Budget
Budget Actual Positive
Final Amounts (Negative)
Revenues:

Taxes and assessments 3,371,000$ 3,980,204 609,204 Intergovernmental - - -
Total revenues 3,371,000 3,980,204 609,204
Expenditures:

Current:

Public works 4,257,865 3,834,861 423,004
Total expenditures 4,257,865 3,834,861 423,004 Net change in fund balances (886,865) 145,343 1,032,208 Fund balance, beginning of year 297,029 297,029 - Fund balance (deficit), end of year (589,836) $ 442,372 1,032,208

CITY OF BELL GARDENS
Waste Management Special Revenue Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2023
98 595Exhibit 1
Variance with
Final Budget
Budget Actual Positive
Final Amounts (Negative)
Revenues:

Intergovernmental 850,000$ 171,102 (678,898) Use of money and property - 29 29 Total revenues 850,000 171,131 (678,869) Expenditures:

Capital outlay 1,297,224 191,129 1,106,095 Total expenditures 1,297,224 191,129 1,106,095 Net change in fund balances (447,224) (19,998) 427,226 Fund balance (deficit), beginning of year (74,950) (74,950) - Fund balance (deficit), end of year (522,174) $ (94,948) 427,226

CITY OF BELL GARDENS
Community Development Block Grant Special Revenue Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2023
99 596Exhibit 1
Variance with
Final Budget
Budget Actual Positive
Final Amounts (Negative)
Revenues:

Taxes and assessments 1,030,349$ 1,110,081 79,732 Intergovernmental - 114,134 114,134 Use of money and property - 2,804 2,804 Total revenues 1,030,349 1,227,019 196,670
Expenditures:

Current:

Public works 1,389,876 1,302,895 86,981
Total expenditures 1,389,876 1,302,895 86,981 Excess (deficiency) of revenues
over (under) expenditures (359,527) (75,876) 283,651 Other financing sources (uses):

Transfers in 510,061 228,694 (281,367)
Total other financing sources (uses) 510,061 228,694 (281,367) Net change in fund balances 150,534 152,818 2,284 Fund balance, beginning of year 213,656 213,656 - Fund balance, end of year 364,190 $ 366,474 2,284

CITY OF BELL GARDENS
Proposition A Special Revenue Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2023
100
597Exhibit 1
Variance with
Final Budget
Budget Actual Positive
Final Amounts (Negative)
Revenues:

Taxes and assessments 854,648$ 920,781 66,133 Charges for services 35,000 38,575 3,575 Use of money and property 1,000 25,065 24,065 Total revenues 890,648 984,421 93,773
Expenditures:

Current:

Public works 92,177 73,081 19,096
Capital outlay 1,833,448 166,800 1,666,648
Total expenditures 1,925,625 239,881 1,685,744 Net change in fund balances (1,034,977) 744,540 1,779,517 Fund balance, beginning of year 1,912,309 1,912,309 - Fund balance, end of year 877,332 $ 2,656,849 1,779,517

CITY OF BELL GARDENS
Proposition C Special Revenue Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2023
101
598Exhibit 1
Variance with
Final Budget
Budget Actual Positive
Final Amounts (Negative)
Revenues:

Intergovernmental 54,000$ 38,338 (15,662) Total revenues 54,000 38,338 (15,662) Expenditures:

Current:

Public works 34,100 31,542 2,558
Total expenditures 34,100 31,542 2,558 Net change in fund balances 19,900 6,796 (13,104) Fund balance, beginning of year - - - Fund balance, end of year 19,900 $ 6,796 (13,104)

CITY OF BELL GARDENS
Air Quality Improvement Special Revenue Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2023
102
599Exhibit 1
Variance with
Final Budget
Budget Actual Positive
Final Amounts (Negative)
Revenues:

Intergovernmental 22,700$ 10,011 (12,689) Use of money and property - 1,553 1,553 Total revenues 22,700 11,564 (11,136) Expenditures:

Current:

Public works 16,772 20,632 (3,860)
Total expenditures 16,772 20,632 (3,860) Net change in fund balances 5,928 (9,068) (14,996) Fund balance, beginning of year 146,358 146,358 - Fund balance, end of year 152,286 $ 137,290 (14,996)

CITY OF BELL GARDENS
Recycling Grant Special Revenue Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2023
103
600Exhibit 1
Variance with
Final Budget
Budget Actual Positive
Final Amounts (Negative)
Revenues:

Charges for services -$ 79,932 79,932 Total revenues - 79,932 79,932 Expenditures:

Current:

General government - 1,369,571 (1,369,571) Total expenditures - 1,369,571 (1,369,571) Excess (deficiency) of revenues
over (under) expenditures - (1,289,639) (1,289,639) Other financing sources (uses):

Transfers in - 1,289,639 1,289,639
Total other financing sources (uses) - 1,289,639 1,289,639 Net change in fund balances - - - Fund balance, beginning of year 144,490 144,490 - Fund balance, end of year 144,490 $ 144,490 -

CITY OF BELL GARDENS
Post-Employment Benefits Special Revenue Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2023
104
601Exhibit 1
Variance with
Final Budget
Budget Actual Positive
Final Amounts (Negative)
Revenues:

Intergovernmental 640,986$ 690,387 49,401
Use of money and property 3,000 18,368 15,368 Total revenues 643,986 708,755 64,769
Expenditures:

Current:

Public works 61,444 55,363 6,081
Capital outlay 1,717,542 156,762 1,560,780
Total expenditures 1,778,986 212,125 1,566,861 Excess (deficiency) of revenues
over (under) expenditures (1,135,000) 496,630 1,631,630 Other financing sources (uses):

Transfers in - 16,173 16,173
Total other financing sources (uses) - 16,173 16,173 Net change in fund balances (1,135,000) 512,803 1,647,803 Fund balance, beginning of year 1,420,306 1,420,306 - Fund balance, end of year 285,306 $ 1,933,109 1,647,803

CITY OF BELL GARDENS
Measure R Special Revenue Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2023
105
602Exhibit 1
Variance with
Final Budget
Budget Actual Positive
Final Amounts (Negative)
Revenues:

Use of money and property 500$ 837 337 Total revenues 500 837 337 Expenditures:

Current:

Public safety - - -
Total expenditures - - -
Net change in fund balances 500 837 337 Fund balance, beginning of year 78,736 78,736 - Fund balance, end of year 79,236 $ 79,573 337

CITY OF BELL GARDENS
COPS Grant Special Revenue Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2023
106
603Exhibit 1
Variance with
Final Budget
Budget Actual Positive
Final Amounts (Negative)
Revenues:

Charges for services 257,500$ 257,202 (298) Total revenues 257,500 257,202 (298)
Expenditures:

Current:

Parks and recreation 343,500 140,165 203,335 Capital outlay 35,000 - 35,000
Total expenditures 378,500 140,165 238,335 Net change in fund balances (121,000) 117,037 238,037 Fund balance, beginning of year 17,155 17,155 - Fund balance, end of year (103,845) $ 134,192 238,037

CITY OF BELL GARDENS
Anson Ford Park Special Revenue Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2023
107
604Exhibit 1
Variance with
Final Budget
Budget Actual Positive
Final Amounts (Negative)
Revenues:

Intergovernmental 726,451$ 780,975 54,524
Use of money and property 2,000 11,927 9,927 Total revenues 728,451 792,902 64,451
Expenditures:

Capital outlay 1,447,940 652,706 795,234
Total expenditures 1,447,940 652,706 795,234 Net change in fund balances (719,489) 140,196 859,685 Fund balance, beginning of year 1,053,440 1,053,440 - Fund balance, end of year 333,951 $ 1,193,636 859,685

CITY OF BELL GARDENS
Measure M Special Revenue Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2023
108
605Exhibit 1
Variance with
Final Budget
Budget Actual Positive
Final Amounts (Negative)
Revenues:

Intergovernmental 880,000$ - (880,000) Total revenues 880,000 - (880,000) Expenditures:

Current:

Community development 1,700,000 77,986 1,622,014 Total expenditures 1,700,000 77,986 1,622,014 Net change in fund balances (820,000) (77,986) 742,014 Fund balance (deficit), beginning of year,
as restated (101,630) (101,630) -
Fund balance (deficit), end of year (921,630) $ (179,616) 742,014

CITY OF BELL GARDENS
CalHome Grant Special Revenue Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2023
109
606Exhibit 1
Variance with
Final Budget
Budget Actual Positive
Final Amounts (Negative)
Revenues:

Intergovernmental 70,000$ 42,156 (27,844) Total revenues 70,000 42,156 (27,844) Expenditures:

Capital outlay 60,000 65,062 (5,062) Total expenditures 60,000 65,062 (5,062) Net change in fund balances 10,000 (22,906) (32,906) Fund balance, beginning of year 19,298 19,298 - Fund balance (deficit), end of year 29,298 $ (3,608) (32,906)

CITY OF BELL GARDENS
Office of Traffic Safety Grant Special Revenue Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2023
110
607Exhibit 1
Variance with
Final Budget
Budget Actual Positive
Final Amounts (Negative)
Revenues:

Intergovernmental 39,765$ 39,765 -
Total revenues 39,765 39,765 -
Expenditures:

Capital outlay 39,765 39,765 -
Total expenditures 39,765 39,765 -
Net change in fund balances - - - Fund balance, beginning of year - - - Fund balance, end of year - $ - -

CITY OF BELL GARDENS
Transportation Development Act Capital Projects Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2023
111
608Exhibit 1
Variance with
Final Budget
Budget Actual Positive
Final Amounts (Negative)
Revenues:

Intergovernmental 1,110,000 $ 6,528,667 5,418,667 Use of money and property - 23 23 Total revenues 1,110,000 6,528,690 5,418,690 Expenditures:

Capital outlay 38,750,630 6,198,650 32,551,980 Total expenditures 38,750,630 6,198,650 32,551,980 Excess (deficiency) of revenues
over (under) expenditures (37,640,630) 330,040 37,970,670 Other financing sources (uses):

Transfers out - (195) (195) Total other financing sources (uses) - (195) (195) Net change in fund balances (37,640,630) 329,845 37,970,475 Fund balance (deficit), beginning of year (1,409,402) (1,409,402) - Fund balance (deficit), end of year (39,050,032) $ (1,079,557) 37,970,475

CITY OF BELL GARDENS
Capital Improvement Projects Capital Projects Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2023
112609Exhibit 1

113

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610Exhibit 1

114
Statistical Section

This part of the City of Bell Gardens comprehensive annual financial report presents detailed information as a context for unders tanding what the information in the financial statements, note disclosures, and required s upplementary information says about the government’s overall financial health.

Contents

Financial Trends

These schedules contain trend informati on to help the reader understand how the government’s financial performance and well-being have changed over time.

Revenue Capacity

These schedules contain information to help the reader asses the government’s most significant local revenue source, the property tax.

Debt Capacity

These schedules present information to help the reader assess the affordability of the government’s current levels of outstanding debt and the gover nment’s ability to issue additional debt in the future.

Demographic and Economic Information

These schedules offer demographic and economic indicators to help the reader understand the environment with in which the government’s financial activities take place.

Operating Information

These schedules contain service and infrastruc ture data to help the reader understand how the information in the governm ent’s financial report relates to the services that the government provides and the activities it performs.

Sources: Unless otherwise noted, the information in these schedul es is derived from the comprehensive annual financial reports for the relevant year.

611Exhibit 1

City of Bell Gardens
Single Audit Report on Schedule of Expenditures of Federal Awards June 30, 2023

612Exhibit 2

CITY OF BELL GARDENS
Single Audit Report on Schedule of Expenditures of Federal Award Programs June 30, 2023

TABLE OF CONTENTS

Page

Report on Internal Control Over Financial Reporting
and on Compliance and Other Matters Based on an
Audit of Financial Statements Performed in
Accordance with Government Auditing Standards 1

Report on Compliance for Each Major
Program and on Internal Control Over Compliance
Required by the Uniform Guidance 3

Schedule of Expenditures of Federal Awards 6

Notes to Schedule of Expenditures of Federal Awards 7

Schedule of Findings and Questioned Costs 8

Summary Schedule of Prior Audit Findings 9

613Exhibit 2

438 Old Newport Blvd, Newport Beach, CA 92663
Phone (949) 346-2900 –www.gruberlopezinc.com
1 Honorable Mayor and City Council
City of Bell Gardens
Bell Gardens, California
INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER

FINANCIAL REPORTING AND ON COMPLIANCE AND

OTHER MATTERS BASED ON AN AUDIT OF

FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH

GOVERNMENT AUDITING STANDARDS
We have audited, in accordan ce with the auditing standar ds gene rally accepted in the United States of America an d the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the f inancial statements of the governmental activities, the business-type activities, e ach major f und, and the aggregate remaining fund information of City of Bell Gardens, California (City) as of and for the year ended June 30, 2023, and the related notes to the financia l statements, which collectively comprise City of Bell Gar dens’ basic financial statements, and have issued our report ther eon dated April 17, 2023.

Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered City of Bell Gardens' internal control over financial reporting (internal co ntrol) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of City of Bell Gardens’ interna l control. Accordingly, we do n ot express an opinion on the effectiveness of City of Bell Gardens’ internal control.

A deficiency in internal control exists when the design or operation of a control does not allo w management or employees, in the normal course of performing the ir assigned functions, to prevent, or detect and correct, misstatements on a timely basis . A material weakness i s a deficiency, or a combination of d eficiencies, in internal contr ol, such that there is a reasonable possibility that a material misstatement of the entity’s financ ial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less s evere than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not desig ned to identify all deficienci es in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consi der to be material weaknesses.

However, material weaknesses may exist that have not been identified. 614Exhibit 2
2 Honorable Mayor and City Council
City of Bell Gardens
Page Two
Compliance and Other Matters
As part of obtaining reasonable assurance about whether City of Bell Gardens' financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreement s , n o n c o m p l i a n c e w i t h w h i c h could have a direct and material effect on the financial statem ents. However, providing an opinion on compliance with those provisions was not an objectiv e of our audit, and accordingly, we do not express such an opinion. The results of our tests dis closed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of this Report
The purpose of this report is solely to describe the scope of o ur testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communicatio n is not suitable for any other purpose.

Gruber and Lopez, Inc.

Newport Beach, California
April 17, 2024
Gruber and Lopez, Inc.
615Exhibit 2

438 Old Newport Blvd, Newport Beach, CA 92663
Phone (949) 346-2900 –www.gruberlopezinc.com

3 Honorable Mayor and City Council
City of Bell Gardens
Bell Gardens, California

INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM

AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM

GUIDANCE
Report on Compliance for Each Major Federal Program

Opinion on Each Major Federal Program
We have audited City of Bell Gardens CA’s compliance with the t ypes of compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on each of City of Bell Gardens CA’s major federal progr ams for the year ended June 30, 2023.

City of Bell Gardens CA’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs.

In our opinion, City of Bell Gardens CA complied, in all materi al respects, with the types of compliance requirements referred to above tha t could have a direct and mat erial effect on each of its major federal programs for the year ended June 30, 2023.

Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditin g standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States and th e audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are fu rther described in the Auditor’s Responsibilities for the Audit of Compliance section of our report.

We are required to be independent of City of Bell Gardens CA and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate t o provide a basis for our opinion on compliance for each major federal program. Our audit does not p rovide a legal determination of City of Bell Gardens CA’s compliance with the compliance requirements referred to above.

Responsibilities of Management for Compliance
Management is responsible for com pliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control o ver compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to City of Bell Gardens CA’s federal programs.

Auditor’s Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on City of Bell Gardens CA’s compliance based on our au dit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance will always detect mate rial noncompliance when it exis ts. The risk of not detecting material noncompliance resulting from fraud is higher than for that resu lting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. 616Exhibit 2

4 Honorable Mayor and City Council
City of Bell Gardens
Page Two

Noncompliance with the complia nce requirements referred to above is considered material if there is a substantial likelihood that, indi vidually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about City of Bell Gardens CA’s compliance with the requirements of each major federal program as a whole.

In performing an audit in accord ance with generally accepted au diting standards, Government Auditing Standards, and the Uniform Guidance, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material noncompliance, whethe r due to fraud or error, and design and perform audit procedures responsive to those risks. Such pr ocedures include examining, on a test basis, evidence regarding City of Bell Gardens CA’s compliance with the compliance requirements referred to above and performing such other proced ures as we considered necessary in the circumstances.
 Obtain an understanding of City of Bell Gardens CA’s internal c ontrol over compliance relevant to the audit in order to design audit procedures that are appro priate in the circumstances and to test and report on internal control over compliance in accordan ce with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectivene ss of City of Bell Gardens CA’s internal control over compliance. Accordingly, no such opinion is expressed.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant defic iencies and material weaknesses in internal control over compliance that we identified during the audit.

Report on Internal Control over Compliance

A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance wit h a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance i s a deficiency, or a combination of deficiencies, in internal contr ol over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal p rogram that is less severe than a material weakness in internal control over compliance, yet important eno ugh to merit attention by those charged with governance.

Our consideration of internal control over compliance was for t he limited purpose described in the Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these l imitations, during our audit we did not identify any deficiencies in internal control over compliance t hat we consider to be material weaknesses, as defined above. However, material weaknesses or significant d eficiencies in internal control over compliance may exist that were not identified.

Our audit was not designed for the purpose of expressing an opi nion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed. 617Exhibit 2
5 Honorable Mayor and City Council
City of Bell Gardens
Page Three
Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance We have audited the financial statements of the governmen tal ac tivities, each major fund, and the aggregate remaining fund in formation of City of Bell Gardens CA , as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise City of Bell Gardens CA’s basic financial statements. We issued ou r report thereon d ated April 17, 2024, which contain ed unmodified opinions on those fin ancial statements. Our audit was performed for the p urpose of forming opinions on the financial statements that collectively comprise the basic fin ancial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by the Uniform Gu idance and is not a required part of the basic financial statements. Su ch information is the responsibility of management and was derived from and relates directly to the underlying accounting and oth er records used to prepare the basic financial statemen ts. The information has been subjected to the auditing pro cedures applied in the aud it of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the und erlying accounting and other records used to prepare the basic financial statements or to the basic finan cial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States o f America. In ou r opinion, the schedule of expenditures of federal award s is fairly stated in all material respects in relation to the basic financial statements as a whole.

The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of Uniform Guidance. Accordingly, this report is not suitable for any other purpose.

Gruber and Lopez, Inc.

Newport Beach, California
April 17, 2024
Gruber and Lopez, Inc.
618Exhibit 2
Program Federal Payments
Federal Grantor/ Assistance Identification Award To
Pass-through Grantor/Program Number Number Expenditures Subrecipients U.S. Department of Housing and Urban Development:

Passed through the Los Angeles County Development Agency:

Community Development Block Grants/ Entitlement Grants 14.218 B-21-UC-06-0505 191,129$ - Community Development Block Grants/ Entitlement Grants 14.218 19-CALHOME-14625 225,000 - Subtotal #14.218 416,129 * -
Total U.S. Department of Housing and Urban Development 416,129 - U.S. Department of Justice:

Direct:

Public Safety Partnership and Community Policing Grants 16.710 2020UMWX0078 134,836 - Equitable Sharing Program - Asset Forfeiture 16.922 CA0190900 40,988 - Total U.S. Department of Justice 175,824 -
U.S. Department of Transportation:

State and Community Highway Safety Cluster 20.600 PT22147 56,974 - State and Community Highway Safety Cluster 20.600 PT21014 65,062 - Subtotal #20.600 122,036 -
Total U.S. Department of Transportation 122,036 - U.S. Department of Treasury:

Direct:

Covid-19-Corona Virus Relief Fund 21.019 RA0011-20 1,647 - Total U.S. Department of Treasury 1,647 - U.S. Department of Homeland Security:

Direct:

Covid-19-Homeland Security Grant Program 97.067 2017 HSGP 94,985 - Total U.S. Department of Homeland Security 94,985 - U.S. Department of Agriculture:

Passed through the California Department of Education:

Child and Adult Care Food Program 10.558 19-NP-CS/SFSP-1 25,000 - Total U.S. Department of Agriculture 25,000 - Total Expenditures of Federal Awards 835,621$ - * Denotes major program.

CITY OF BELL GARDENS
Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2023
See accompanying notes to the schedule of expenditures of federal awards. 6619Exhibit 2

7 CITY OF BELL GARDENS

Notes to the Schedule of Expenditures of Federal Awards

June 30, 2023

(1) Summary of Significant Accounting Policies Applicable to th e Schedule of Expenditures of Federal Awards

The financial reporting entity, as defined by Governmental Acco unting Standard Board (GASB), consists of the primary government, which is the City of Bell Gardens, California (City), entities for which the primary government is financially accountable, an d other entities for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity’s financial statements to be misleading or incomplete.

The City Council acts as the governing body and is able to impose its will on the following entities by establishing financial accountability:

 Bell Gardens Financing Authority

(a) Scope of Presentation

The accompanying schedule presents only the expenditures incurr ed by the City of Bell Gardens (City) that are reimbursable under federal programs of federal agencies providing financial assistance. For purposes of this schedule, financial assistance includes both federal financial assistance received directly from a fede ral agency and expended, as well as federal funds received indirectly by City of Bell Garde ns’ from a non-federal agency and expended. Only the portion of program expenditures r eimbursable with such federal funds are reported in the accompanying schedule. Progra m expenses in excess of the maximum federal reimbursement authorized or the portion of program expenses that were funded with state, local or other non-federal funds are ex cluded from the accompanying schedule.

(b) Basis of Accounting

Funds received under the various grant programs have been recor ded within the general fund and special revenue funds of the City. The City utilizes the modified accrual basis of accounting for governmental funds. The accompanying schedule of expenditures of federal awards is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Office of Management and Budget Uniform Grant Guidance).

The City elected to use the 10% de minimus indirect cost rate f or the year ended June 30, 2023.

(d) Subrecipients

There were no payments to subrecipients for the year ended June 30, 2023.

620Exhibit 2

8 CITY OF BELL GARDENS

Schedule of Findings and Questioned Costs

Year ended June 30, 2023

Summary of Auditors’ Results

A) Findings Related to the Financial Statements which are Requ ired to be Reported in Accordance with GAGAS

1. An unmodified report was issued by the auditors on the financial statements of the auditee.

2. There were no material weakne sses in internal control nor we re there any significant deficiencies.

3. The audit disclosed no noncompliance which is material to th e financial statements of the auditee.

(B) Findings and Questioned Costs for Federal Awards as Defined in 2 CFR 200.515(d)

4. There were no material weaknesses or significant deficiencies in internal control over compliance of federal major programs of the auditee.

5. An unmodified report was issued by the auditors on compliance for federal major programs.

6. The audit disclosed no audit findings of federal awards requ ired by the auditors to be reported under 2 CFR 200.515(d)

7. The major federal programs of the auditee were: (1) Assistan ce Listing #14.218 U.S.

Department of Housing and Urban Development – Community Develop ment Block Grants / Entitlement Grants.

8. The dollar threshold used to distinguish Type A and Type B p rograms was $750,000 under 2 CFR 200.518 (b) (1).

9. The auditee was not considered a low risk auditee as defined by 2 CFR 200.518 for the year ended June 30, 2023 for purposes of determining major programs.

621Exhibit 2

9 CITY OF BELL GARDENS

Summary Schedule of Prior Year Audit Findings

Year ended June 30, 2023

There were no findings noted in the prior fiscal year ended Jun e 30, 2022 that required follow up procedures.

622Exhibit 2

CITY OF

BELL GARDENS
Bell Gardens, California
Report On Communication
With Those Charged With Governance
June 30, 2023
623Exhibit 3

CITY OF BELL GARDENS
Bell Gardens, California

Report On Communication
With Those Charged With Governance

June 30, 2023

INDEX

PAGE

R EPORT ON COMMUNICATION WITH THOSE CHARGED WITH GOVERNANCE 1 - 3

E XHIBIT A - GENERAL RECOMMENDATIONS 4 - 5

E
XHIBIT B - AUDIT ADJUSTMENTS 6 - 7

624Exhibit 3
1 438 Old Newport Blvd, Newport Beach, CA 92663
Phone (949) 346-2900 –www.gruberlopezinc.com
City of Bell Gardens
Bell Gardens, California
To the Honorable Mayor and City Council:

We have audited the financial statements of the government activities, business-type activities, each major fund, and th e aggregate remaining fund information of the City of Bell Gardens, California (City) for the year ended June 30, 2023, and have issued our report thereon dated April 17, 2024. Professional standards require that we provide you with in formation about our responsibilities under generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance, as well as certain information related to the contract dated August 15, 2023.

Professional standards also require that we communicate to you the following information related to our audit.

Significant Audit Matters
Qualitative Aspects of Accounting Practice
Management is responsible for the selection and use of appropri ate accounting policies. The significant accounting policies used by the City are described in Note 1 to the financial statements.

During fiscal year 2023, the City adopted Statement on Governme ntal Accounting Standards (GASB Statements) No. 94- Public and Private Partnerships and; No 96-Subscription Based Information Technology Arrangements . The adoption of the GASB Nos. 94 and 96 did not significantly impact the City. We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period.

Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowle dge and experience about past a nd current events and assumptions about future events. Certain accounting estimates a re particularly sensitive because of their significance to the financial statements and because o f the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimate affecting the City’s financial statements was:
 Management’s estimate of capitalizing certain infrastructure assets that prolong its’ useful life (as opposed to classifying as routine maintenance expense) and depreciation expense on capital assets. We have evaluated the key factors and assump tions used to estimate the capitalization of infrastructure assets and useful lives on depreciation expense in determining that they are reasonable in relation to the financial statements taken as a whole.  Management’s estimate of the net pension liability and net OPEB liability and their allocation to various funds. We have evaluated the key factors and assumptions used to estimate the net pension liability and its allocation to variou s funds of the City in determining that they are reasonable in relation to the financial statements taken as a whole.  Management’s estimate of present value of future lease payments for lease and subscription liabilities.
625Exhibit 3
2 City of Bell Gardens
Honorable Mayor and City Council
Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. The most sensitive disclosure affecting the financial statements was:
 The disclosure of Contingencies in Note 11 to the financial sta tements concerning potential claims against the City for possible disallowed costs or noncompliance with certain grantor restrictions. As of the date of this letter, Ma nagement is not aware of any disallowed costs or noncompliance with grantor restrictions.

Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.

Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and l ike ly misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. We noted a few significant adjustments as a result of audit procedur es (see Exhibit B).

Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the finan cial statements or the auditor ’s report. We are pleased to report that no such disagreements arose during the course of our audit.

Management Representations
We have requested certain representations from management that are included in the management representation letter dated April 17, 2024.

Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other acco untants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the City’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations.

Other Audit Findings or Issues
We generally discuss a variety of matters, including the applic ation of accounting principles and auditing standards, with management each year prior to retention as City of Bell Garden’s auditors.

However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention.
626Exhibit 3
3 City of Bell Gardens
Honorable Mayor and City Council
Other Matters
We applied certain limited procedures to City of Bell Gardens, which is required supplementary information (RSI) as listed in the table of contents of the financial statements that supplements the basic financial statements. Our procedures consisted of inquiri es of management regarding the methods of preparing the information and comparing the informat ion for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI.

We were engaged to report on the supplementary information as listed in the table of contents of the financial statements, which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to dete rmine that the information complies with accounting principles generally accepted in the U nited States of America, the method of preparing it has not c hanged from the prior period, a nd the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves.

We were not engaged to report on the statistical section information as described in the table of contents in the financial statements, which accompany the finan cial statements but are not RSI.

Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opi nion or provide any assurance on it.

We also became aware of matters that are opportunities fo r strengthening internal controls and operating efficiency. This letter does not affect our report dat ed April 17, 2024, on the financial statements of the City. Our comments are summarized in the attached Exhibit A. We will review the status of these comments during our next audit engagement. We have already discussed many of these comments and suggestions with various City personnel, and we will be pleased to discuss these comments in further deta il at your convenience, to perfor m any additional study of these matters, or to assist you in implementing the recommendations.

Restriction on Use
This report is intended solely f or the information and use of t he City Council and management, and is not intended to be and should not be used by anyone other than these specified parties.

GRUBER AND LOPEZ, INC.

Newport Beach, California
April 17, 2024
Gruber and Lopez, Inc.
627Exhibit 3

EXHIBIT A

GENERAL RECOMMENDATIONS

4 2023-1 Statement on Auditing Standards (SAS) No. 122, AU-C 265

Statement on Auditing Standards (SAS) No. 122, AU-C 265 Communi cating Internal Control Matters Identified in an Audit (formerly SAS No. 115) p rovides examples of conditions and events that may i ndicate the existence of risk o f material misstatement.

Paragraph .A11 of the standard r equires that the auditor includ e in his or her report of deficiencies, such as material adjustments, detected by the aud it process. Although the matters discussed below were not d e e m e d t o b e s i g n i f i c a n t d e f i ciencies or material weaknesses for fiscal year 2023, they may meet these definition s in subsequent years if they continue to go uncorrected.

There were several adjustments for the year ended June 30, 2023 that were discovered by us through the audit process which were disclosed in Exhibit B. It should be noted that during the fiscal year ended June 30, 2023, there was significa nt turnover in the City’s finance department which may be the reason for such adjustments . Such significant adjustments included the areas of cash and investments, loans receivable, accounts payable, deferred/ unearned revenue, insurance payable, compensated abse nces, and capital assets and related depreciation.

Recommendation: Adjustments should be reflected in the accounting records prio r to the start of the audit in order to ma ke audit fieldwork as efficien t as possible. Furthermore, finance staff should be trained to record journal entries accurately rather than just replicate what was recorded in the previous year.

2023-2 Controls Over Cash and Investments

During our testwork over cash and investments, we noted the following:

1. Transfers in and out of LAIF investments are initiated by the Accounting Manager and approved by the Finance Director (or vice versa) which is a sou nd control. However, the initiation and approval are not documented.

2. The person taking the checks out of the blank check stock does not sign them out.

3. The Treasurer’s report is not reconciled to the general ledger before it is finalized.

4. The payroll bank reconciliation is reporting a $57,961 variance as compared to the general ledger. This variance related to a credit by Mass Mutal Bank back to the City from a few years ago, however, the credit has not been investig ated to determine if it should be paid back to Mass Mutual or if the City can keep the funds.

628Exhibit 3

EXHIBIT A

GENERAL

RECOMMENDATIONS
5 2023-2
Controls Over Cash and Investments (continued)
Recommendation:

We recommend the following:

1. A LAIF cover sheet should be created listing the following:
a. The amount of the transfer in/ out and reason for the transfer. b. The signatures of the person initiating the transfer and approving the transfer.

The confirmation from LAIF for the transfer should then be attached to the cover sheet and stored.

2. A check log should be created and the person checking out the b lank checks should sign them out from beginning check number to ending check numbe r. Periodically, someone other the person signing the checks out should review f or gaps in numeric sequence.

3. The Treasurer’s Report should be reconciled to the general ledg er for accuracy before being finalized.

4. We recommend the City investig ate the $57,961 variance to deter mine if it should be paid back to Mass Mutual or if the City can keep the funds. 2023-3 Controls Over Cash Receipts at the Parks and Recreation Department During
our testwork over cash receipts at the Parks and Recreat ion Department, we noted that the Sports Coordinator collec ts the cash receipts received from sporting events, however, the Coordinator does not reconcile the receipts to the team roster.

Recommendation: We recommend that before each recreational sport season, a pri nted copy of the team enrolled roster /spreadsheet be maintained in a book in the Parks and Recreation Department with the Spo rts Coordinator’s initials of the date they reconciled the report to receipts.
629Exhibit 3
EXHIBIT B
Account name Acct# wp ref DR CR
1 Deferred revenue ‐ Las Casa de Bell Gardens 935‐2220‐1005 58.10 39,723.90 Other revenue 935‐3810 58.10 1,020.14
Interest receivable ‐ Las Casa de Bell Gardens 935‐1060‐0004 58.10 40,743.90 Deferred revenue ‐ Las Casa de Bell Gardens 935‐2220‐1004 58.10 67,999.86 Loan receivable ‐ Las Casa de Bell Gardens 935‐1292‐0003 58.10 68,000.00 2 Cash 110‐1010‐000 50.1f2 4,761.00
Accrued revenue 110‐1099‐000 50.1f2 4,761.00
Cash 115‐1010‐000 50.1f2 202,400.75
Accrued revenue 115‐1099‐000 50.1f2 202,400.75
To reclass accrued revenue to checks received and deposited into the bank on 6/29/23, and to fairly state cash at 6/30/23.
3 CalHome G‐1st Time HB Def interest 264‐1290‐0002 58.16 6,000.00 Deferred Rev 1st Time HB 264‐2220‐0000 58.16 6,000.00
To record 1st Time Home Buyer 3% annual interest of $6K on the outstanding $200K loans for FY22/23.

PPA
4 Deferred Rev 1st Tim HB 264‐2220‐0000 25.3 200,000.00 CalHome Grant 264‐2530‐0000 25.3 132,500.00
Owner Occupied Rehab Grant 264‐2530‐0000 25.3 67,500.00 To correct PY #3 audit entry recorded incorrectly to set beginning balances up properly for exp reclass.
5 CalHome G‐Owner Occ Loan def int 264‐1290‐0003 58.16 8,775.00 Deferred Reve Owner Occ 264‐2220‐0001 58.16 8,775.00
To record Owner Occupied 3% annual interest of $8,775 on the outstanding $292,500 loans for FY22/23.
6 Deferred Reve Owner Occ 264‐1290‐0001 58.16 147,750.00 Defered Rev 1st Time Home Buyer 264‐2220‐0000 58.16 77,250.00 Owner Occupied Rehab Grant 264‐4111‐2091 58.16 225,000.00 To record loans for FY22/23 and reclass from expense.
up properly for exp reclass.

Bell Gardens
Audit Adjustments
6/30/2023
Per the Las Casa loan terms, if no sale, lease or transfer occurs within 20 years, the note shall be automatically and completely forgiven. This entry records the forgiven loan interest and loan principal.
6630Exhibit 3
7 3879 For Park Infilration 115‐4777‐3879 71.2b 214,025.02 Owner Occupied Rehab Grant 115‐2010‐0000 71.2b 214,025.02 To accrue back a canceled check for serivces to Zusser in 22/23. 8 Deferred Loans Receivable 260‐260‐1299‐0000 58.8 50,000.00 Deferred revenue 260‐2220‐0000 58.8 50,000.00
To record CDBG loans not reported to auditors in PY
9 GASB 87 Def Inflow 110‐2222‐0003 58.8 4,194,953.41
GASB 87 Lease receivable 110‐1026‐0001 58.8 4,194,953.41 Lease proceed revenue 110‐3642 58.8 443,628.52
GASB 87 Interest Discount 110‐3612 58.8 443,628.52
To record adjustment on GASB 87 lease rec/ def infow and amortized intetest. 10 COPS hiring reimb 172‐3850 58.8 127,190.40
Deferred revenue 172‐2220‐0003 58.8 127,190.40
To record CDBG loans not reported to auditors in PY
7 631Exhibit 3
438 Old Newport Blvd, Newport Beach, CA 92663
Phone (949) 346-2900 –www.gruberlopezinc.com

Honorable Mayor and City Council
City of Bell Gardens
Bell Gardens, California

Independent Accountants’ Report on Applying Agreed-Upon Procedures Appropriations Limit Worksheets

We have performed the procedures enumerated below on the approp riations limit calculation worksheets of the City of Bell Gardens, California (City) for the year ended June 30, 2023. The City’s management is responsible for the app ropriations limit calculation worksheets.

The City has agreed to and acknowledged that the procedures per formed are appropriate for the intended purpose of meeting the requirements of Section 1.5 of Article XIIIB of the California Constitution (Constitution) and the League of Ca lifornia Cities as presented in the League publication entitled Article XIIIB Appropriations Limitation Uniform Guidelines (Guidelines). This report may not be suitable for any other pu rpose.

The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes.

The procedures and associated findings are as follows:

1. We obtained the worksheets referred to above and compared the l imit and annual adjustment factors included in those worksheets to the l imit and annual adjustment factors that w ere adopted by resolution of th e City Council. We also compared the pop ulation and inflation options included in the aforementioned worksheets to those that were selected by a recorded vote.

Results: No exceptions were noted as a result of our procedures.

632Exhibit 4

City Council
City of Bell Gardens, California
Page Two

2. We recalculated the mathematical computations reflected in the City worksheets.

Results: No exceptions were noted as a result of our procedures.

3. We compared the current year information used to determine the current year limit and found that it agreed to worksheets prepared by t he City and to information provided by the State Department of Finance.

Results: No exceptions were noted as a result of our procedures.

4. We compared the amount of the p rior year appropriations limit p resented in the worksheets to the amount adopted by the City Council for the prior year.

Results: No exceptions were noted as a result of our procedures.

We were engaged by the City to perform this agreed-upon procedu res engagement and conducted our engagement in accordance with attestation standar ds established by the American Institute of Certified Public Accountants. We were not engaged to and did not conduct an examination or review engagement, the objective of w hich would be the expression of an opinion or conclusion, respectively, on meetin g the requirements of the Constitution and Guidelines. Accordingly, we do not express suc h an opinion or conclusion. Had we performed addit ional procedures, other matte rs might have come to our attention that would have been reported to you.

We are required to be independent of the City and to meet our o ther ethical responsibilities, in accordance with the r elevant ethical requi rements related to our agreed-upon procedures engagement.

This report is intended solely f or the information and use of t he City and is not intended to be and should not be used by anyone other than those specifi ed parties. However, this report is a matter of public record and its distribution is not limited.

Gruber and Lopez, Inc.

Newport Beach, California
April 17, 2024
Gruber and Lopez, Inc.
633Exhibit 4

CITY OF BELL GARDENS

OFFICE OF THE CITY MANAGER

AGENDA REPORT

Item 16.

TO:

Honorable Mayor and City Council Members
FROM:

Michael B. O'Kelly, City Manager
BY:

Bernardo Iniguez, Director of Public Works/Facilities
Karla Gonzalez, Senior Management Analyst
SUBJECT:

SELECTION OF AN ARTIST FOR THE PAINTING OF MURALS AT JULIA RUSS ASMUS PARK AND HANNON PARK; AND CONSIDERATION OF A RESOLUTION APPROVING

AN AGREEMENT WITH THE SELECTED ARTIST
DATE:

April 22, 2024
RECOMMENDATION:

It is staff’s recommendation that the City Council by motion:

1 .

Select an artist or artist team for the painting of murals at Julia Russ Asmus Park and Hannon Park; 2 .

Adopt the attached Resolution; and
3 .

Authorize the City Manager to execute a Contract Services Agreement, subject to City Attorney approval as to form, with the selected artist or artist team to paint murals at Julia Russ Asmus Park and Hannon Park.

BACKGROUND/DISCUSSION:

The City of Bell Gardens (City) was awarded a $510,067 grant through the California Department of Transportation’s Clean California Local Grant Program for the BG Keep Parks Clean Beautification Project (the “Project”). The Project will renovate Julia Russ Asmus Park and Hannon Park by replacing existing playgrounds and amenities; planting trees; and installing artwork and educational signage that represents the history and culture of the community.

More specifically, the Project scope requires four (4) artist elements be installed, two at each park. After considering various artist element options, City staff concluded that the best choice to achieve the Project’s goals was to paint murals to beautify existing infrastructure at the parks.

In accordance with the grant requirements, the City issued a Request for Proposals (“Call for Artists”) for Outdoor Public Art Murals on February 15, 2024, with a proposal deadline of March 7, 2024. The “Call for Artists” was advertised on the City’s social media outlets and website. The RFP asked artists to create and propose four (4) public art mural concepts that would reflect the spirit, history, and culture of the City with suggested relevant subject matter that included the Los Angeles River, Rio Hondo, history of Julia Russ Asmus, history of the City as an agricultural center and farming community for Mexican and Japanese immigrants, Don Antonio Maria Lugo, and Casa de Rancho San Antonio (Gage Mansion). Five (5) potential sites where the murals will be placed were provided to proposers to inspire and guide their concepts.

The City received proposals from eight (8) artists and artist teams. A five (5) member evaluation committee comprised of Public Works and Recreation & Community Services staff convened to evaluate the proposals based on the criteria established in the RFP. The evaluation committee placed great emphasis on artists’ experience, their understanding of the requested services and requirements, and the proposed mural concepts’ reflection of the community’s vision and spirit.
634

Based on this, the evaluation committee narrowed down the proposals to two (2) artists/teams who strongly met the goals of the Project and the requirements of the RFP, listed alphabetically as follows: 1) Hartzog & Crabill, Inc. (HCI) and 2) Javier Solorzano, Juan Galindo, and Alondra Gonzalez (SGG artist team).

HCI proposed to provide the services of a local mural artist (Candace Galvan) with extensive experience in the creation, development, and installation of public art murals. Ms. Galvan has created murals on a variety of surfaces and her work extends over a 15-year history serving numerous public agencies including Norwalk, Bellflower, Long Beach, and Paramount. The mural concepts focused on the history of Julia Russ Asmus, the agricultural history of Japanese and Mexican immigrants, the history of Bell Gardens, and the Gage Mansion. HCI proposed a cost of $23,200 to complete the artwork.

The SGG artist team are a group of local artists who grew up in Bell Gardens. Mr. Solorzano recently worked with the City and the local Bell Gardens Girl Scouts Troop to design and install artwork for utility boxes that celebrated educators. Mr. Galindo has completed two murals displayed at Bell Gardens High School. Their mural concepts focused on Julia Russ Asmus, Don Antonio Maria Lugo, Casa de Rancho San Antonio, Mexican and Japanese farmworkers, and the Los Angeles River while also capturing the Bell Gardens Trolley, the Sacred Datura flowers native to Bell Gardens, Silver Lupine flowers native to Bell Gardens, and text boxes to incorporate historical descriptions with the images.

The SGG artist team proposed a cost of $24,000 to complete the artwork.

CONCLUSION:

It is staff’s recommendation that the City Council select an artist or artist team to award a Contract Services Agreement for the painting of murals at Julia Russ Asmus Park and Hannon Park. Awarding the contract will ensure the City meets the Project and grant requirements while also beautifying and improving its local parks.

FISCAL IMPACT:

The Clean California Grant budget for the Project includes $24,000 to cover the cost of the painting of murals at Julia Russ Asmus Park and Hannon Park. There will be no impact to the General Fund.

ATTACHMENTS:

Description
Exhibit 1 - Resolution No. 2024-27
Exhibit 2 - Sample Agreement
Exhibit 3 - RFP
Exhibit 4 - Hartzog & Crabill, Inc. Proposal
Exhibit 5 - Javier Solorzano, Juan Galindo, and Alondra Gonzalez Proposal Exhibit 6 - Presentation
APPROVED ELECTRONICALLY BY:

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BEL L

GARDENS, CALIFORNIA, APPROVING A CONTRACT SERVICES

AGREEMENT FOR THE PAINTING OF MURALS AT JULIA RUSS

ASMUS PARK AND HANNON PARK

WHEREAS, The City of Bell Gardens (City) was awarded a $510, 067 grant through the California Department of Transportation ’s Clean California Local Grant Program for the BG Keep Parks Clean Beautification Project (the “Project”); and

WHEREAS, the Project will renovate Julia Russ Asmus Park and Hannon Park by replacing existing playgrounds and amenities; pl anting trees; and installing artwork and educational signage that represents the history and culture of the community; and

WHEREAS, the Project scope requires four (4) artist elements be installed, two at each park; and

WHEREAS, the City requires the services of an artist or art ist team for the painting of murals at Julia Russ Asmus Park and Hannon Park; and

WHEREAS, the City has undergone a Request for Proposals (“R FP”) process in accordance with the California Department of Transportation’s Clean California Local Grant Program requirements, the City’s Purchasing Policies and State Law; and

WHEREAS, City desires to enter into a contract services agr eement for the painting of murals at Julia Russ Asmus Park and Han non Park with the most qualified painter or painter team.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Bell Gardens as follows:

SECTION 1. The City Council finds that the above recitals are true and correct and incorporate them herein.

SECTION 2. The City Council finds that the City has complied with the California Department of Transportation’s Clean California Loc al Grant Program, its local purchasing policy and state law through the issuance of a Request for Proposals.

SECTION 3. The City Council hereby approves a contract service s agreement for the painting of murals at Julia Russ Asmus Park and Hannon Park.

SECTION 4. The City Council further authorizes the City Manage r to execute the contract services agreement for the painting of murals at Julia Russ Asmus Park and Hannon Park with the most qualified artist or a rtist team, subject to City Attorney approval as to form, and consistent with this Resol ution, along with any ancillary 636Exhibit 1

Resolution No. 2024-27
2 of 3

documents reasonably necessary to effectuate the intent of this Resolution.

SECTION 5 . The City Clerk shall attest and certify to the passage and adoption of this Resolution and enter it into the book of or iginal resolutions, and it shall become effective immediately upon its approval.

PASSED, APPROVED, and ADOPTED this 22 nd day of April, 2024.

THE CITY OF BELL GARDENS

Gabriela Gomez, Mayor

APPROVED AS TO FORM: ATTEST:

Stephanie Vasquez Daisy Gomez
City Attorney City Clerk
637Exhibit 1

Resolution No. 2024-27
3 of 3

AYES:

NOES:

ABSTAIN:

ABSENT:

638Exhibit 1

1 2024

CONTRACT SERVICES AGREEMENT
(Contractor: __________)
(Nature of Engagement: _______________________)

THIS CONTRACT SERVICES AGREEMENT (hereinafter, “Agreement”) is made and entered into this ___________ day of _________________ 202 4 (hereinafter, the “Effective Date”) by and between the CITY OF BELL GARDENS, a municipal corporation (hereinafter, “CITY”) and _________________ (hereinafter, “CONTRACTOR”). For the purposes of this Agreement, CITY and CONTRACTOR may be referred to collectively by the capitalized term “Parties.” The capitalized term “Party” may refer to CITY or CONTRACTOR interchangeably.

RECITALS

WHEREAS, CITY is a municipal corporation organized under the laws of the State of California, with power to contract for services necessary to achieve its purpose; and

WHEREAS, CITY requires qualified and experienced ______________________; and

WHEREAS, CITY staff has determined that CONTRACTOR possess the skills, experience and expertise required to competently provide the services and tasks contemplated under this Agreement; and

WHEREAS, the execution of this Agreement was approved by the Bell Gardens City Council at its Regular Meeting of April 22, 2024.

NOW, THEREFORE, for and in consideration of the mutual covenants and conditions herein contained, CITY and CONTRACTOR agree as follows:

SECTION 1. SCOPE OF WORK.

A. Subject to the terms and conditions of this Agreement, CONTRACTOR agrees to provide CITY ________________________. The various tasks and related services to be performed by CONTRACTOR are more specifically described in the CITY’s “ ________________________” (hereinafter the “CITY RFP”) dated ______________, and the written proposal of CONTRACTOR entitled “______________________” (hereinafter, the “CONTRACTOR PROPOSAL”).

The CITY RFP and the CONTRACTOR PROPOSAL are attached and incorporated hereto as Exhibit “A” and “B” respectively. The term “Scope of Work” shall be a collective re ference to the CITY RFP and the CONTRACTOR PROPOSAL. The capitalized term “Work” shall be a collective reference to all the various services and tasks referenced in the Scope of Work. In the event of any conflict or inconsistency between the provisions o f the document entitled CITY RFP and the provisions of the document entitled CONTRACTOR PROPOSAL, the requirements of the document entitled CITY RFP shall govern and control but only to the extent of the conflict or inconsistency and no further. In the ev ent of any conflict or inconsistency between the provisions of the Scope of Work and the 639Exhibit 2

2 provisions of this Agreement to which the Scope of Work is attached, the provisions of this Agreement shall govern and control but only to the extent of the conflict or inconsistency and no further.

B. CONTRACTOR shall provide all labor, materials, tools, supplies, equipment, services, tasks and incidental and customary work necessary to competently perform and timely complete the Work. CONTRACTOR shall perform the Work in accordance with the terms and conditions of this Agreement and in accordance with such other written or verbal directives as may be issued by CITY.

C. By executing this Agreement, CONTRACTOR warrants that CONTRACTOR: (i) has thoroughly investigated and co nsidered the nature of the work, services and tasks to be performed under this Agreement; (ii) has carefully considered how the Work should be performed; and (iii) fully understands the facilities, difficulties, and restrictions attending performance of th e services under this Agreement.

CONTRACTOR will inspect any location where the Services are to be performed and acquaint itself with the conditions of the location before commencing any of the Services requested by CITY. Should the CONTRACTOR discover an y 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 City Representative as defined herein.

D. In the event CONTRACTOR ceases to perform the Work agreed to under this Agreement or otherwise abandons any undertaking contemplated herein prior to completion and acceptance of the Work, CONTRACTOR shall deliv er to CITY immediately and without delay, all materials, records and other work product prepared or obtained by CONTRACTOR in the performance of this Agreement.

Furthermore, CONTRACTOR shall only be compensated for the reasonable value of the services, ta sks and other work performed up to the time of cessation or abandonment, less a deduction for any damages, costs or additional expenses which CITY may incur as a result of CONTRACTOR’s cessation or abandonment.

SECTION 2. GRANT REQUIREMENTS.

A. CONTRACTOR certifies that all works submitted represented as their work are the product of their creation and no other. CONTRACTOR further certif ies that all statements made in the CONTRACTOR PROPOSAL are true to the best of their knowledge. CONTRACTOR understands that CITY may make du plicates of CONTRACTOR’s images and CONTRACTOR PROPOSAL materials for the purpose of stakeholder input, and for promotional materials concerning the Work.

CONTRACTOR understands that any liability for loss or damage to CONTRACTOR’s images is not the responsibility of CITY.

B. CONTRACTOR, or any other copyright owner(s) of the artwork provided in the Work, shall provide CITY with a sublicensable, irrevocable, perpetual, royalty-free, unlimited, worldwide license to prepare derivative works, make, publish, display, and distribute two-dimensional repro ductions and/or copies, digitally and in print, of the artwork created or produced for the Work, or derivatives thereof, for non-commercial purposes or any State government purposes. This includes, but is not limited to, reproductions 640Exhibit 2

3 used in brochures, media p ublicity, public outreach campaigns (including television and social media campaigns), education, and exhibition catalogues or other similar publication. CONTRACTOR shall provide CITY with any and all other intellectual property rights necessary.

SECTION 3. PROSECUTION OF WORK.

A. Time is of the essence of this Agreement and each and every provision contained herein. The Work shall be commenced within INSERT NUMBER OF WORK/CALENDAR DAYS days of CITY’s issuance of a written notice to proceed (“Notice to Proceed”). The Work shall be completed by [insert time to be completed by or Insert date to be completed by of CITY’s issuance of the Notice to Proceed] (hereinafter, the “Completion Date”).

B. CONTRACTOR shall perform the Work continuously and with due diligence so as to complete the Work by the Completion Date. CONTRACTOR shall cooperate with CITY and in no manner interfere with the WORK of the CITY, its employees or other consultants, contractors or agents.

C. CONTRACTOR may submit a written request for additional time to complete the Work, which request must be submitted to the CITY no later than fifteen (15) calendar days prior to the Completion Date or any extended Completion Date granted by CITY. The written request for additional time must identify (i) what specific tasks or services remain to be completed by CONTRACTOR in order to complete the Work; (ii) how much additional time CONTRACTOR requires; (iii) identification of the circumstances that have caused the need for additional time, according to CONTRACTOR, including, if applicable, identification of any tasks that must be completed by CITY as prerequisite to CONTRACTOR being able to complete any other service or task; and (iv) what proactive steps CONTRACTOR has taken up to the date of the request to mitigate the need for additional time, including, if applicable, any effort on the part of CONTRACTOR to alert CITY of the need to provide information or complete certain tasks to be performed by CITY.

CITY in its sole and absolute discretion may grant, deny or conditionally grant a request for additional time, provided that no individual grant of additional time may exceed a maximum of fifteen (15) calendar days.

D. CONTRACTOR shall not claim or be entitled to receive any compensation or damage because of the failure of CONTRACTOR, or its subcontractors, to have related services or tasks completed in a timely manner.

E. CONTRACTOR shall at all times enforce strict discipline and good order among CONTRACTOR’s employees.

F. CONTRACTOR, at its sole expense, shall pay all sales, consumer, use or other similar taxes required by law.

SECTION 4. COMPENSATION.

A. CONTRACTOR shall perform all the Work in accordance with the rates set forth in the CONTRACTOR PROPOSAL.
641Exhibit 2

4 B. CONTRACTOR’s total compensation during the Term of this Agreement shall not exceed the sum of ____________________ ($_______) (hereinafter, the “Not-to- Exceed Sum”). CONTRACTOR further agrees tha t the Not-to-Exceed Sum is inclusive of compensation for all labor, materials, tools, supplies, equipment, services, tasks and incidental and customary work necessary to competently perform and timely complete the Work. CONTRACTOR shall have no right or entitlement to any overage contingency sums authorized by the City Council unless the City Representative authorize s the expenditure of such overage contingency funds in writing in the City Representative’s sole and absolute discretion.

C. The Not-to-Exceed Sum will be paid to CONTRACTOR in monthly increments as the Work is completed. Following the conclusion of each calendar month, CONTRACTOR will submit to CITY an itemized invoice indicating the work performed and the tasks completed during the recently concluded calendar month, including the Work and tasks performed and the reimbursable out -of-pocket expenses incurred. If the amount of CONTRACTOR’s compensation includes hours worked by CONTRACTOR’s personnel, the invoice shall indicate the number of hours worked in connection with the specific service or task requested, the persons responsible for performing the Work, the rate of compensation at which such services and tasks were performed, the subtotal for each task and service performed and a grand total for all services performed. Within thirty (30) calendar days of receipt of each invoice, CITY shall notify CONTRACTOR in writing of any disputed amounts included in the invoice. Within forty -five (45) calendar days of receipt of each invoice , CITY shall pay all undisputed amounts included on the invoice. CITY shall not withhold applicable taxes or other authorized deductions from payments made to CONTRACTOR.

SECTION 5. STANDARD OF CARE.

A. CONTRACTOR represents, acknowledges and agrees as follows:

1. CONTRACTOR shall perform all work skillfully, competently and to the highest standards applicable to the CONTRACTOR’s field;

2. CONTRACTOR represents all personnel assigned to perform the Work for CITY under this Agreement shall possess the skill, training, and experience necessary to competently perform the Work and shall at all times possess and maintain all licenses, certifications and/or qualifications necessary to perform the Work;

3. CONTRACTOR shall perform all work in a manner reasonably satisfactory to the CITY;

4. CONTRACTOR shall comply with all applicable federal, state and local laws and regulations, including the conflict of interest provisions of Government Code Section 1090 and the Political Reform Act (Government Code Section 81000 et seq .). CONTRACTOR’s compliance with applicable laws will include, without limitation, compliance with all applicable Cal/OSHA 642Exhibit 2

5 requirements and applicable regulations of the Federal De partment of Housing and Urbanization;

5. CONTRACTOR understands the nature and scope of the Work to be performed under this Agreement as well as any and all schedules of performance;

6. In the performance of this Agreement, CONTRACTOR shall supply and deploy personnel, equipment, tools, and materials necessary, in the reasonable opinion of CITY, to perform all Work in compliance with the standard of care set forth in this Section and to time complete all Work as specified by the Scope of Work or other written order;

7. All of CONTRACTOR’s employees and agents (including but not limited to CONTRACTOR’s subcontractors and subconsultants) possess all licenses, permits, certificates, qualifications and approvals of whatever nature that are legally required to perform the tasks and services contemplated under this Agreement and all such licenses, permits, certificates, qualifications and approvals shall be maintained throug hout the term of this Agree ment; and

8. CONTRACTOR shall perform, at CONTRACTOR’s sole cost and expense, any tasks necessary to correct any errors or omissions caused by CONTRACTOR’s failure to comply with the standard of care set forth in this Section or by any like failure on the pa rt of CONTRACTOR’s employees, agents, contractors, subcontractors and subconsultants. Such effort by CONTRACTOR to correct any errors or omissions shall be commenced immediately upon their discovery by either Party and shall be completed within seven (7) calendars days from the date of discovery or such other extended period of time authorized by the City Representative in writing in the City Representative’s sole and absolute discretion.

B. The Parties acknowledge and agree that CONTRACTOR shall perform, at CONTRACTOR’s own cost and expense and without any reimbursement from CITY, any services or tasks necessary to correct any errors or omissions caused by CONTRACTOR’s failure to comply with the standard of care set forth under this Section or by any like failure on the part of CONTRACTOR’s employees, agents, contractors, subcontractors and subconsultants. Such effort by CONTRACTOR to correct any errors or omissions shall be commenced immedia tely upon their discovery by either Party and shall be completed within seven (7) calendars days from the date of discovery or such other extended period of time authorized by the City Representative in writing and absolute discretion. The Parties acknowl edge and agree that CONTRACTOR’s acceptance of any work performed by CONTRACTOR or on CONTRACTOR’s behalf shall not constitute a release of any deficiency or delay in performance. The Parties further acknowledge, understand and agree that CONTRACTOR has r elied upon the foregoing representations of CONTRACTOR, including but not limited to the representation that CONTRACTOR possesses the skills, training, knowledge and experience necessary to perform the Work in a skillful and competent manner equivalent to, the standard of performance generally recognized as being employed by 643Exhibit 2

6 professionals performing the same type of work and services in the State of California.

SECTION 6. REPRESENTATIVES.

A. City Representative . For the purposes of this Agreement, the con tract administrator and CITY’s representative shall be _________________ (hereinafter, the “City Representative”). It shall be CONTRACTOR’s responsibility to assure that the City Representative is kept informed of the progress of the performance of the services, and CONTRACTOR shall refer any decisions which must be made by CITY to the City Representative. Unless otherwise specified herein, any approval of CITY required hereunder shall mean the approval of the City Representative.

B. Contractor Representati ve. For the purposes of this Agreement, ____________________, is hereby designated as the principal and representative of CONTRACTOR authorized to act on its behalf with respect to CONTRACTOR’s performance under this Agreement and to make all decisions in connection therewith (hereinafter, the “Contractor Representative”). Notice to the Contractor Representative whether written or verbal shall constitute notice to CONTRACTOR.

The Contractor’s Representative shall supervise and direct the Work, using their best skill and attention, and shall be responsible for all means, methods, techniques, sequences, and procedures and for the satisfactory coordination of all portions of the Services under this Agreement.

SECTION 7. CONTRACTOR’S PERSONNEL.

A. CONTRACTOR represents that it has, or will secure at its own expense, all personnel required to perform the Work and all other services and tasks necessary for CONTRACTOR to competently and timely complete the improvements contemplated under this Agreement . All Work, services and tasks will be performed under CONTRACTOR’s supervision, and CONTRACTOR’s personnel engaged in the performance of the work, services and tasks contemplated under this Agreement shall possess the qualifications, permits and licenses required by applicable law to perform such work, services and tasks.

B. 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 Work.

CONTRACTOR shall have the sole obl igation 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 Work, and shall indemnify, defend and hold harmless CITY against any such fees, assessments, taxes, penalties, or interest levied, assessed, or imposed against CITY hereunder.

C. CONTRACTOR shall be solely responsible for the satisfactory work performance of all personnel engaged in performing the Work.

D. In the event that CITY, in its sole reasonable discretion, at any time during the term of this Agreement, desires the removal of any person or persons assigned by 644Exhibit 2

7 CONTRACTOR to perform services pursuant to this Agreement, CONTRACTOR shall remove any such person immediately upon receiving notice from CITY of the desire of CITY for the removal of such person or persons.

E. CONTRACTOR shall be responsible for payment of all employees’ and subconsultants’ wages and benefits and shall comply with all requirements pertaining to employer’s liability, workers’ compensation, unemployment insurance, and Social Security.

F. CONTRACTOR shall obtain and maintain during the Agreement term all necessary licenses, permits and certificates required by law for the performance of the Work contemplated under this Agreement.

SECTION 8. SUBSTITUTION OF KEY PERSONNEL. CONTRACTOR has represented to CITY that certain key personnel will perform and coordinate the Work under this Agreement. Should one or more of such personnel become unavailable, CONTRACTOR may substitute other personnel of at least equal competence upon written approval of CITY. In the event that CITY and CONTRACTOR cannot agree as to the substitution of key personnel, CITY shall be entitled to terminate this Agreement for cause. As discussed below, any personnel who fail or refuse to perform the Work in a manner acceptable to the CITY, or who are determined by the CITY to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project or a threat to the safety of persons or property, shall be promptly removed from the Project by the CONTRACTOR at the request of the CITY.

SECTION 9. [Reserved – No Text]
SECTION 10. PROHIBITED INTERESTS . CONTRACTOR warrants, represents and maintains that it has not employed nor retained any company or person, other than a bona fide employee working solely for CONTRACTOR, to solicit or secure this Agreement. Further, CONTRACTOR warrants and represents that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for CONTRACTOR, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or makin g of this Agreement.

For breach or violation of this warranty, CITY shall have the absolute and unfettered right to rescind this Agreement without liability or penalty. For the term of this Agreement, no member, officer or employee of CITY, during the te rm of his or her service with CITY, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.

SECTION 11. INDEPENDENT CONTRACTOR.

A. All acts of CONTRACTOR, its agents, officers, subcontractors and employees and all others acting on behalf of CONTRACTOR relating to the performance of this Agreement, shall be performed as independent contractors and not as agents, officers, or employees of CITY. CONTRACTOR, by virtue of this Agreement, has no authority to bind or incur any obligation on behalf of CITY. CONTRACTOR has no authority or responsibility to exercise any rights or power vested in CITY. No agent, officer, or employee of CITY is to be considered an employee of CONTRACTOR. It is underst ood by both CONTRACTOR and CITY that this 645Exhibit 2

8 Agreement shall not, under any circumstances, be construed or considered to create an employer-employee relationship or a joint venture.

B. CONTRACTOR, its agents, officers, subcontractors and employees are and, at all times during the Term of this Agreement, shall represent and conduct themselves as independent contractors and not as employees of CITY.

C. CONTRACTOR shall determine the method, details and means of performing the Work. CONTRACTOR shall be responsible to CITY only for the requirements and results specified in this Agreement and, except as expressly provided in this Agreement, shall not be subjected to CITY's control with respect to the physical action or activities of the CONTRACTOR in fulfi llment of this Agreement.

CONTRACTOR has control over the manner and means of performing the services under this Agreement. CONTRACTOR is permitted to provide services to others during the same period as it provides services to CITY under this Agreement. If necessary, CONTRACTOR has the responsibility for employing other persons or firms to assist CONTRACTOR in fulfilling the terms and obligations under this Agreement.

D. If in the performance of this Agreement any third persons are employed by CONTRACTOR, such persons shall be entirely and exclusively under the direction, supervision, and control of CONTRACTOR. All terms of employment including hours, wages, working conditions, discipline, hiring, and discharging or any other term of employment or require ment of law shall be determined by the CONTRACTOR.

E. It is understood and agreed that as an independent contractor and not an employee of CITY neither the CONTRACTOR nor CONTRACTOR'S assigned personnel shall have any entitlement as a CITY employee, right to act on behalf of CITY in any capacity whatsoever as an agent, or to bind CITY to any obligation whatsoever.

F. As an independent contractor, CONTRACTOR hereby indemnifies and holds CITY harmless from any and all claims that may be made against CITY based upon any contention by any third party that an employer -employee relationship exists by reason of this Agreement.

SECTION 12. CONFLICTS OF INTEREST. CONTRACTOR hereby warrants for itself, its employees, and subcontractors that those persons presently hav e no interest and shall not obtain any interest, direct or indirect, which would conflict in any manner with the performance of the services contemplated by this Agreement. No person having such conflicting interest shall be employed by or associated with CONTRACTOR in connection with this project. CONTRACTOR hereby warrants for itself, its employees, and subcontractors that no such person shall engage in any conduct which would constitute a conflict of interest under any CITY ordinance, state law or fede ral statute.

CONTRACTOR agrees that a clause substantially similar to this Section shall be incorporated into any sub -contract that CONTRACTOR executes in connection with the performance of this Agreement.

SECTION 13. NON-DISCRIMINATION. During the perf ormance of this Agreement, 646Exhibit 2

9 CONTRACTOR and its subcontractors shall not unlawfully discriminate against any employee or applicant for employment because of race, religio us creed, color, national origin, ancestry, physical disability, mental disability, medical condition , genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, reproductive health decision making or military and veteran status.

CONTRACTOR and subcontractors shall ensure that the evaluation and treatment of their employees and applicants for employment are free of such discrimination.

CONTRACTOR and subcontractors shall comply with the provisions of the Fair Employment and Housing Act (Gov. Code, Section 129 00 et seq.) . The applicable regulations of the Fair Employment and Housing Act, set forth in Part 2.8, Division 3, of Title 2 of the Government Code are incorporated into this Contract by reference and made a part hereof as if set forth in full. CONTRACTOR and its subcontractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective ba rgaining or other agreement. This CONTRACTOR shall include the nondiscrimination and compliance provisions of this clause in all subcontracts to perform the Work under this Agreement.

SECTION. 14. INDEMNIFICATION.

CONTRACTOR shall pay Indemnitees for any attorney’s fees and costs incurred in enforcing this indemnification provision. Notwithstanding the foregoing, nothing in this instrument sh all be construed to encompass (a) Indemnitees' sole negligence or willful misconduct to the limited extent that the underlying Agreement is subject to Civil Code § 2782(a), or (b) the contracting public agency's active negligence to the limited extent that the underlying Agreement is subject to Civil Code § 2782(b). This indemnity is effective without reference to the existence or 647Exhibit 2

10 applicability of any insurance coverage(s) which may have been required under the Agreement or any additional insured endorseme nts which may extend to Indemnitees. Accountants, attorneys, or other professionals employed by Indemnitor to defend Indemnitees shall be selected by Indemnitees.

CONTRACTOR, on behalf of itself and all parties claiming under or through it, hereby waives all rights of subrogation and contribution against the Indemnitees, while acting within the scope of their duties, from all claims, losses and liabilities arising out of or incident to activities or operations performed by or on behalf of the Indemnitor regardless of any prior, concurrent, or subsequent active or passive negligence by the Indemnitees.

B. CONTRACTOR’s obligations under this or any other provision of this Agreement will not be limited by the provisions of any workers compensation act or similar act.

CONTRACTOR expressly waives its statutory immunity under such statutes or laws as to the Indemnities.

C. CONTRACTOR agrees to obtain executed indemnity agreements with provisions identical to those in this Section from each and every subcontractor or any other person or entity involved by, for, with or on behalf of CONTRACTOR in the performance of this Agreement. In the event CONTRACTOR fails to obtain such indemnity obligations for the benefit of CITY, CONTRACTOR agrees to be fully responsible and i ndemnify, hold harmless and defend CITY, its officers, agents, employees and volunteers from and against any and all claims and losses, costs or expenses for any damage due to death or injury to any person and injury to any property resulting from any alle ged, intentional, reckless, negligent or otherwise wrongful acts, errors or omissions of CONTRACTOR or any of its officers, employees, servants, agents, subcontractors, volunteers or any other person or entity involved by, for, with or on behalf of CONTRAC TOR in the performance of this Agreement. Such costs and expenses shall include reasonable attorneys’ fees incurred by counsel of CITY’s choice.

D. CITY does not, and shall not; waive any rights that it may possess against CONTRACTOR because of the acceptance by CITY, or the deposit with CITY, of any insurance policy or certificate required pursuant to this Agreement. This hold harmless and indemnification provision shall apply regardless of whether or not any insurance policies are determined to be applic able to the claim, demand, damage, liability, loss, cost or expense. CONTRACTOR agrees that CONTRACTOR’s covenant under this Section shall survive the termination of this Agreement.

E. CONTRACTOR shall fully comply with the workers’ compensation laws regarding CONTRACTOR and CONTRACTOR’s employees. CONTRACTOR further agrees to indemnify and hold CITY harmless from any failure of CONTRACTOR to comply with applicable workers’ compensation laws. CITY shall have the right to offset against the amount of any fees due to CONTRACTOR under this Agreement any amount due to CITY from CONTRACTOR as a result of CONTRACTOR’s failure to promptly pay to CITY any reimbursement or indemnification arising under this Section.

SECTION 15. INSURANCE.
648Exhibit 2

11 A. CONTRACTOR shall at all times during the term of this Agreement carry, maintain, and keep in full force and effect, insurance as follows:

1. Commercial General Liability Insurance with minimum limits of One Million Dollars ($1,000,000) for each occurrence and in the aggregate for any personal injury, death, loss or damage.

2. Automobile Liability Insurance for any owned, non-owned or hired vehicle used in connection with the performance of this Agreement with minimum limits of One Million Dollars ($1,000,000) per accident for bodily injury and property damage.

3. Worker’s Compensation insurance as required by the State of California.

B. CONTRACTOR shall require each of its sub -consultants or sub -contractors to maintain insurance coverage that meets all of the requirements of this Agreement.

C. The policies required by this Agreement shall be issued by an insurer admitted in the State of California and with a rating of at least A:VII in the latest edition of Best’s Insurance Guide.

D. CONTRACTOR agrees that if it does not keep the insu rance required in this Agreement in full force and effect, CITY may either immediately terminate this Agreement or, if insurance is available at a reasonable cost, CITY may take out the necessary insurance and pay, at CONTRACTOR’S expense, the premium thereon.

E. Prior to commencement of Work under this Agreement, CONTRACTOR shall file with CITY’s Risk Manager a certificate or certificates of insurance showing that the insurance policies are in effect and satisfy the required amounts and specifications required pursuant to this Agreement.

F. CONTRACTOR shall provide proof that policies of insurance expiring during the Term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Such proof will be furnished at least two weeks prior to the expiration of the coverages.

All of the policies shall contain an endorsement providing that the policies cannot be canceled or reduced except on thirty (30) days’ prior written notice to CITY.

CONTRACTOR agrees to require its insurer to modify the certificates of insurance to delete any exculpatory wording stating that failure of the insurer to mail written notice of cancellation imposes no obligation, and to delete the word “endeavor” with regard to any notice provisions.

H. All policies of Commercial General Liability and Automobile Liability insurance shall be primary and any other insurance, deductible, or self -insurance maintained by 649Exhibit 2

12 the CITY, its officials, officers, employees, agents, or volunteers shall not contribute with this primary insurance. Policies shall contain o r be endorsed to contain such provisions.

I. All insurance coverage provided pursuant to this Agreement shall not prohibit CONTRACTOR, and CONTRACTOR’s employees, agents, subcontractors, or volunteers from waiving the right of subrogation prior to a loss. C ONTRACTOR hereby waives all rights of subrogation against CITY , its officials, officers, employees, agents and volunteers.

J. Any deductibles or self -insured retentions must be approved by CITY. At the option of CITY, CONTRACTOR shall either reduce or eliminate the deductibles or self-insured retentions with respect to CITY, or CONTRACTOR shall procure a bond guaranteeing payment of losses and expenses.

K. If CONTRACTOR is a Limited Liability Company, general liability coverage must be amended so that the L imited Liability Company and its managers, affiliates, employees, agents, and other persons necessary or incidental to its operation are insureds.

L. Procurement of insurance by CONTRACTOR shall not be construed as a limitation of CONTRACTOR’s liability or as full performance of CONTRACTOR’s duties to indemnify, hold harmless and defend under Section 15 of this Agreement.

M. In the event any policy of in surance required under this Agreement does not comply with these specifications or is canceled and not replaced immediately so as to avoid a lapse in the required coverage, 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 effective upon notice.

N. CITY reserves the right to modif y these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.

SECTION 16. RECORDS AND INSPECTION. CONTRACTOR shall keep, and require subcontractors to keep, such books and re cords as shall be necessary to document the performance of the Work and enable the CITY to evaluate the performance of the Work.

The Contract Officer shall have full and free access to such books and records at all times during normal business hours of CIT Y, including the right to inspect, copy, audit, and make records and transcripts from such records. Such records shall be maintained for a period of four (4) years following completion of the services hereunder, and the CITY shall have access to such records in the event any audit is required.

SECTION 17. TERMINATION.

13 termination. Such termination for convenience shall be made in writing signed by the City Manager. CONTRACTOR may only terminate this Agreement for cause.

B. Termination for Cause . In the event either Party fails to perform any duty, obligation, service or task set forth under this Agreement (or fails to timely perform or properly perform any such duty, obligation, service or task set forth under this Agreement), an event of default (hereinafter, “Event of Default”) shall occur. For all Events of Default, the Party alleging an Event of Default shall give written notice to the defaulting Party (hereinafter referred to as a “Default Notice”) which shall specify: (i) the nature of the Event of Default; (ii) the action required to cure the Event of Default; (iii) a date by which the Event of Default s hall be cured, which shall not be less than the applicable cure period set forth in this Section or if a cure is not reasonably possible within the applicable cure period, to begin such cure and diligently prosecute such cure to completion. The Event of D efault shall constitute a breach of this Agreement if the defaulting Party fails to cure the Event of Default within the applicable cure period or any extended cure period allowed under this Agreement. An Event of Default shall include, but shall not be l imited to the following: (i) CONTRACTOR’s failure to fulfill or perform its obligations under this Agreement within the specified time or if no time is specified, within a reasonable time; (ii) CONTRACTOR’s and/or its employees’ disregard or violation of any federal, state, local law, rule, procedure or regulation; (iii) the initiation of proceedings under any bankruptcy, insolvency, receivership, reorganization, or similar legislation as relates to CONTRACTOR, whether voluntary of involuntary; (iv) CON TRACTOR’s refusal or failure to perform or observe any covenant, condition, obligation or provision of this Agreement; and/or (v) CITY’s discovery that a statement representation or warranty by CONTRACTOR relating to this Agreement is false or erroneous in any material respect, including any statement, representation or warranty set forth in the Equipment Specifications.

1. CONTRACTOR shall cure the following Event of Default within the following time periods:

Prior to the expiration of the 3 -day cure period, CONTRACTOR may submit a written request for additional time to cure the Event of Default upon a showing that CONTRACTOR has commenced efforts to cure the Event of Default and that the Event of Default cannot be reasonably cured within the 3-day cure period. The foregoing notwithstanding, CITY shall be under no obligation to grant additional time for the cure of an Event of Default under this subsection that exceeds seven (7) calen dar days from the end of the initial 3-day cure period; or

14 showing that CONTRACTOR has commenced efforts to cure the Event of Default and that the Event of Default cannot be reasonably cured within the 30 -day cure period. The foregoing n otwithstanding, CITY shall be under no obligation to grant additional time for the cure of an Event of Default under this subsection that exceeds thirty (30) calendar days from the end of the initial 30-day cure period.

If an Event of Default relates to a material falsehood or misrepresentation set forth in Exhibit “B” that is not susceptible to a cure, CITY in its sole and absolute discretion may elect to treat the falsehood or misrepresentation as a breach of this Agreement or waive the falsehood or misrepresentation. The foregoing notwithstanding, the prior waiver o f a falsehood or misrepresentation as an Event of Default shall not operate as a waiver or any other falsehood or misrepresentation later discovered by CITY.

2. Except as otherwise specified in this Agreement, CITY shall cure any Event of Default asserted b y CONTRACTOR within thirty (30) calendar days of CONTRACTOR’s issuance of a Default Notice, unless the Event of Default cannot reasonably be cured within the 30 -day cure period. Prior to the expiration of the 30 -day cure period, CITY may submit a written request for additional time to cure the Event of Default upon a showing that CITY has commenced its efforts to cure the Event of Default and that the Event of Default cannot be reasonably cured within the 30 -day cure period. The foregoing notwithstanding, an Event of Default dealing with CITY’s failure to timely pay any undisputed sums to CONTRACTOR shall be cured by CITY within five (5) calendar days from the date of CONTRACTOR’s Default Notice to CITY.

Upon such suspension, CONTRACTOR shall be compensated o nly for those services and tasks which have been rendered by CONTRACTOR to the reasonable satisfaction of CITY up to the effective date of the suspension. No actual or asserted breach of this Agreement on the part of CITY shall operate to prohibit or oth erwise restrict CITY’s ability to suspend this Agreement as provided herein.

4. No waiver of any Event of Default or breach under this Agreement shall constitute a waiver of any other or subsequent Event of Default or breach. No waiver, benefit, privilege, or service voluntarily given or performed by a Party shall give the other Party any contractual rights by custom, estoppel, or otherwise.

5. The duties and obligations imposed under this Agreement and the rights and remedies available hereunder shall be in addition to and not a limitation of any duties, obligations, rights and remedies otherwise imposed or available by law. 652Exhibit 2

15 In addition to any other remedies available to CITY at law or under this Agreement in the event of any breach of this Agreement, CITY, i n its sole and absolute discretion, may also pursue any one or more of the following remedies:

i. Upon written notice to CONTRACTOR, the CITY may immediately terminate this Agreement in whole or in part;

ii. Upon written notice to CONTRACTOR, the CITY may exten d the time of performance;

iii. The CITY may proceed by appropriate court action to enforce the terms of the Agreement to recover damages for CONTRACTOR’s breach of the Agreement or to terminate the Agreement; or

iv. The CITY may exercise any other available and lawful right or remedy.

CONTRACTOR shall be liable for all legal fees plus other costs and expenses that CITY incurs upon a breach of this Agreement or in the CITY’s exercise of its remedies under this Agreement.

6. In the event CITY is in breach of this Agreement, CONTRACTOR’s sole remedy shall be the suspension or termination of this Agreement and/or the recovery of any unpaid sums lawfully owed to CONTRACTOR under this Agreement for completed services and tasks. In no event shall CONTRACTOR be entitled to receive more than the amount that would be paid to CONTRACTOR for the full performance of the services required by this Agreement.

7. No waiver of any default or breach under this Agreement shall constitute a waiver of any other default or breach, whether of the same or other covenant, warranty, agreement, term, condition, duty or requirement contained in this Agreement. No waiver, bene fit, privilege, or service voluntarily given or performed by a Party shall give the other Party any contractual rights by custom, estoppel, or otherwise.

SECTION 18. FORCE MAJEURE. The Term shall be extended in the event of any delays due to unforeseeable causes beyond the control of CONTRACTOR and without the fault or negligence of CONTRACTOR, including but not limited to 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 three (3) calendar days of the commencement of such delay notify the City Representative in writing of the causes of the delay. The City Representative 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 City Representative such delay is justified. The City Representative’s determination shall be fina l 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.
653Exhibit 2

16 SECTION 19. NOTICES. Any notices, bills, invoices, or reports required by this Agreement shall be deemed received on: (a) the day of delivery if delivered by hand or overnight courier service during CONTRACTOR’s and CITY’s regular business hours; or (b) on the third business day following deposit in the United States mail, postage prepaid, to the addresses heretofore below, or to such other addresses as the parties may, from time to time, designate in writing.

If to CITY: If to CONTRACTOR:

City of Bell Gardens
7100 S. Garfield Avenue
Bell Gardens, CA 90201
Attn: INSERT DEPARTMENT
Phone: 562-806-7700

___________________
___________________
___________________
Attn: _______________
Phone: _____________

SECTION 20. PROHIBITION. CONTRACTOR shall not delegate, transfer, subcontract or assign its duties or rights hereunder, either in whole or in part, without CITY’s prior written consent, and any attempt to do so shall be void and of no effect. CITY shall not be obligated or liable under this Agreement to any party other than CONTRACTOR.

SECTION 21. ATTORNEY FEES. In the event that CITY or CONTRACTOR commences any legal action or proceeding to enforce or interpret the provisions of this Agreement, the prevailing party shall be entitled to recover its costs of suit, including reasonable attorney’s fees.

SECTION 22. ENTIRE AGREEMENT . All documents referenced as exhibits in this Agreement are hereby incorporated in this Agreement. Except as expressly provided in this Agreement or its Exhibits, in the event of any conflict or inconsistency between the express provisions of this Agreement and provisions of any document incorporated by reference, the provisions of this Agreement shall prevail and control. This instru ment contains the entire Agreement between CITY and CONTRACTOR with respect to the subject matter herein. No other prior oral or written agreements are binding on the parties.

Any modification of this Agreement will be effective only if it is in writing and executed by both CITY and CONTRACTOR.

SECTION 23. GOVERNING LAW; JURISDICTION. This Agreement shall be interpreted and governed according to the laws of the State of California. In the event of litigation between the Parties, venue, without exception, shall be in the Los Angeles County Superior Court of the State of California. If, and only if, applicable law requires that all or part of any such litigation be tried exclusively in federal court, venue, without exception, shall be in the Central District of California located in the City of Los Angeles, California.

SECTION 24. SEVERABILITY. Wherever possible, each provision of this Agreement shall be interpreted in such a manner as to be valid under applicable law. If any provision of this Agreement is determined by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions shall nevertheless continue in full force and effect.
654Exhibit 2

17 SECTION 25. CAPTIONS. The captions used in this Agreement are solely for reference and the convenience of the Parties. The captions are not a part of the Agreement, in no way bind, limit, or describe the scope or intent of any provision, and shall have no effect upon the construction or interpretation of any provision herein.

SECTION 26. EXECUTION. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, but all of which when taken together shall constitute one and the same instrument.

[SIGNATURES ON FOLLOWING PAGE]
655Exhibit 2

18 IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed the day and year first appearing in this Agreement, above.

CITY OF BELL GARDENS, a municipal
corporation

By:

Michael B. O’Kelly
City Manager

Date:

_________________

By: ______________________________

Name:____________________________

Title:_____________________________

Date:

APPROVED AS TO FORM:

By:_____________________________
Stephanie Vasquez
City Attorney

Date:

656Exhibit 2

19 EXHIBIT “A”

CITY RFP

657Exhibit 2

20 EXHIBIT “B”

CONTRACTOR PROPOSAL

658Exhibit 2

REQUEST FOR PROPOSALS
(“CALL FOR ARTISTS”)
FOR

OUTDOOR PUBLIC ART MURALS

AT JULIA RUSS ASMUS PARK

AND HANNON PARK

RFP Release Date
Thursday, February 15, 2024

Proposal Submittal Deadline
12:00 p.m., Thursday, March 7, 2024

Contact Person:

Bernardo Iniguez, Director of Public Works/Facilities
City of Bell Gardens
8327 Garfield Avenue
Bell Gardens, CA 90201
(562) 806-7770
[email protected]

7100 Garfield Avenue • Bell Gardens, CA 90201 • (562) 806-7700 • www.bellgardens.org 659Exhibit 3
2 I. INVITATION ........................................................................................................................ 3

II. GENERAL DESCRIPTION OF SERVICES ........................................................................ 3

III. CONTRACT ........................................................................................................................ 6

IV. SCOPE OF WORK ............................................................................................................. 6

V. ARTIST SELECTION PROCESS……………………………………………………………. .... 7

VI. ARTIST SELECTION SCHEDULE ..................................................................................... 8

VII. ARTIST PROPOSAL REQUIREMENTS ............................................................................ 8

VIII. POLICIES .......................................................................................................................... 9

IX. CONTACT INFORMATION ............................................................................................. 10

ATTACHMENTS:

Attachment A – Acknowledgement of City’s Standard Form of Agreement Attachment B – Sample Contract Services Agreement

TABLE OF CONTENTS
660Exhibit 3
3 NOTICE OF REQUEST FOR PROPOSALS FOR OUTDOOR PUBLIC ART MURALS AT

JULIA RUSS ASMUS PARK AND HANNON PARK

I. INVITATION

The City of Bell Gardens is soliciting proposals from qualified artists (“Call for Artists”) to design and implement public art murals on existing structures at Julia Russ Asmus Park and Hannon Park . In the preparation of this Request for Proposals (RFP) the words "Bidder," "Contractor," "Vendor," " Artist," and “Proposer,” are used interchangeably.

Proposals must include all of the services listed in Section IV (Scope of Work).

Proposers are urged to submit concise proposals, appropriate to the scale of the requested services, and include only items that are relevant to these specific services. The City of Bell Gardens (City) reserves the right to reject any or all responses rece ived as a result of this solicitation; to extend the proposal submittal due date; to modify, amend, reissue or rewrite this RFP; and to procure any or all services by other means. The City will not be liable for any costs incurred by the Proposers in the preparation of proposals or for developing and carrying out interview presentations, if needed. Submission of a proposal indicates acceptance by the Proposer of the conditions contained in this RFP unless clearly and specifically noted in the proposal submitted and confirmed in the agreement between the City and the selected Artist.

Proposals must be submitted electronically via email to [email protected] and [email protected] as a PDF document no later than Thursday, March 7, 2024 at 12:00pm. A confirmation email will be sent to all proposers. If you do not receive a confirmation email within 24 hours of the deadline, please contact Bernardo Iniguez via email at [email protected] or by phone at (562) 334-1790. Proposals received after the time and date indicated above will be deemed nonresponsive and returned unopened.

II. GENERAL DESCRIPTION OF SERVICES

The City received grant funds through the Clean California Local Grant Program to enhance and improve two local parks with the “BG Keep Parks Clean Beautification Project.” As part of this project, the City desires four (4) public art murals be placed on existing structures at Julia Russ Asmus Park and Hannon Park.

In issuing this RFP, the City aims to identify an artist and/or artist team that can create four (4) pieces of public art for an outdoor environment that reflects the spirit, history, and culture of the City of Bell Gardens. Relevant subject may include, but not be limited to, t he Los Angeles River and Rio Hondo; history of Julia Russ Asmus; history of the City as an agricultural center and farming community for Mexican and Japanese immigrants; Don Antonio Maria Lugo; and Casa de Rancho San Antonio (Gage Mansion) – Bell Gardens Historical Landmark #984.

661Exhibit 3
4 The City will select a dedicated and qualified artist or artist team that can demonstrate artistic excellence while completing this project on time and within budget. Public art should result in broad community benefit by enhancing the city’s image and sen se of place, contributing to economic vitality, and improving the community’s exposure to arts.

Located in the southwest corner of Bell Gardens, Julia Russ Asmus Park is a 0.76 -acre neighborhood park located a few hundred feet from Bell Gardens Elementary School. The park is a triangular parcel of land surrounded on the north and east sides by single-family home residences and on the west side by the I-710 freeway and Los Angeles River. Asmus Park primarily serves the local residential community and elementary school students.

The potential sites at Julia Russ Asmus Park located at 8321 Jaboneria Rd, Bell Gardens, California, 90201 include: the rear side of the Asmus Park sign (Photo 1) ; a pony wall bordering the adjacent flood control channel (Photo 2); and a utility backflow cage (Photo 3). Proposers are urged to visit the site to assess the conditions and gather field measurements.

Located in the northeast corner of Bell Gardens, Hannon Park is a 0.42-acre neighborhood park. The park is a square parcel of land surrounded on all sides by single -family home residences. The potential sites at Hannon Park located at 6902 Hannon St, Bell Gardens, CA 90201 include: a utility backflow cage (Photo 4); and a utility box (Photo 5). Proposers are urged to visit the site to assess the conditions and gather field measurements.

Photo 1

662Exhibit 3
5 Photo 2

Photo 3

663Exhibit 3
6 Photo 4[ML1]

Photo 5

III. CONTRACT

Before any services can begin, the selected artist(s) shall be required to execute a Contract Services Agreement (Agreement) with the City. The City’s standard insurance requirements are included within the Agreement. To facilitate the smooth and timely implementation of the requested services, artists/teams responding to this RFP must review all the terms and conditions of the Agreement including, but not limited to, provisions relating to insurance, indemnification, and termination. By submitting a proposal to the City in response to this RFP, each Proposer is deemed to have provided its approval to the Agreement. Any requested modifications to the Agreement may be weighed in the evaluation of the proposal and may cause rejection of the proposal as non -responsive, in the sole determination of the City. Proposers must also complete and submit with their proposal a signed copy of the Standard Agreement Acknowledgement (Attachment A ). All artists/teams that respond to 664Exhibit 3
7 the RFP shall assume that the execution of the Agreement, without changes, will be a required condition.

IV. SCOPE OF WORK

A. Artists/Artist Teams submitting proposals are responsible for the following:

1. Develop concepts for four (4) murals on the structures at the project sites.

2. Submit a proposal that aligns with the established goals of the project.

3. Submit questions within the established timeline.

4. Conduct research as necessary to understand the site, the project, Bell Garden’s history and culture, and other considerations as necessary to inform the artistic approach.

B. Artist/Artist Team selected for the commission are responsible for the following:

1. Create approved designs for the artwork.

2. Collaborate with City staff on the completion of the artwork.

3. Install the four (4) murals on the structures at the project sites.

4. Fulfill artist responsibilities within the contracted budget and timeline.

C. The City’s responsibilities include:

1. Coordinate reviews and permissions with regard to artist selection and concept development.

2. Provide technical assistance as coordinated in advance.

3. Treat the project site surface prior to installation and apply a UV sealant and anti-graffiti coating.

D. Budget: The maximum budget available for the artwork is $6,000 per mural, or $24,000 total for all four (4) murals. This budget will be all-inclusive to include artist fees, artist assistant costs, artist studio costs, ladder equipment, materials and supplies, travel-related expenses , personal liability insurance, specialty consultants, preparation and installation of the artwork, and other associated costs. External costs such as marketing, documentation, security, and evaluation do not need to be included in the budget.

V. ARTIST SELECTION PROCESS

The City is seeking artists or collaborative artist teams who can make a commitment to working in Bell Gardens a s necessary to fulfill the responsibilities of this project. For the purposes of this RFP, “artist” refers to an individual artist or a team of artists. Any artist, and/or team, whose primary residence is in Los Angeles County or Southern California, established or emerging, working in any medium is encouraged to apply. Please note that we cannot offer additional budgetary resources to individual members. The artist/team must be available to oversee the installation of the mural s. Artists must be citizens of the U.S. or authorized to work in the U.S.
665Exhibit 3
8 This will be an open call. Artist proposals will be solicited by and reviewed by City staff to identify a short list of finalists. The City may request a certain number of artists/teams, at the City’s discretion, to submit their concepts for input and voting by City representatives.

The City will award the final commission s based on a review of artist/team qualifications and concepts using the criteria that are listed below. The City is not required to make a selection from the submissions received if, in the City’s own judgement, the relevance, quality, or the qualifications of the artists are not appropriate.

The evaluation of artist/team qualifications will be based on a review of completed artworks, artworks in progress, or as otherwise described in curatorial writings, critiques, articles, or other publications. The artists’ qualifications shall demonstrate:

1. Experience in creating permanent, durable, outdoor public art works.

2. Appreciation of design in a public space.

3. Ability to accomplish projects of similar complexity within the budget, timeline, and constraints presented based on examples of prior artwork.

4. Experience in community-engaged art processes and research.

5. Ability to create site-specific artwork that is responsive to the opportunities and constraints of the site.

6. Ability to create artwork that engages a wide audience.

The evaluation of the finalist’s concept will be based on a review of submitted concepts using the goals outlined for the project as well as the following criteria:

1. Creativity in addressing the constraints of the site through materials and methods.

2. Creativity in community engagement approach.

3. Success in reflecting the community’s vision and spirit.

4. Feasibility of completing the project within the allotted budget and timeframe.

The City intends to select the most qualified artist(s) available that demonstrate (s) a thorough understanding of the City’s needs and the ability to deliver the services in a reasonable timeframe and for a reasonable fee. It is imperative the artists’ proposal fully addresses all aspects of the RFP. The proposal must clearly articulate the artist(s)’s understanding of the requested services and the City’s specific requirements.

VI. ARTIST SELECTION SCHEDULE

The following tentative schedule has been established for conducting this Artist selection process. The City reserves the right; however, to modify this schedule at any time:

Approximate Dates and Tasks
Release of Request for Proposals: February 15, 2024
Questions Due to the City: February 22, 2024 by 4:00PM Proposals Due: March 7, 2024 by 12:00PM
666Exhibit 3
9 Artist Selection: March 21, 2024
Final Designs Due from Artist: April 1, 2024
Final Designs Review and Approval: April 11, 2024
Art Production Completed: May 31, 2024

VII. ARTIST PROPOSAL REQUIREMENTS
The selected artist’s/team’s proposal must include, at a minimum, the following:

A. Completed application form.

B. Narrative and design illustrating mural concepts. Include supplemental information such as timeline for completion and approximate dimensions of the proposed murals.

C. Detailed budget for the project.

D. Supporting materials including images and reviews of previously completed artworks. Examples should describe the size, materials, cost, client, and location of other artworks. References for earlier projects are encouraged.

E. A statement that the Artist’s proposal will be incorporated in its entirety as a part of the selected Artist’s contract, and will jointly become part of the agreement if said agreement is fully executed by the artist/team and the City.

F. If applicable, listing of proposed team members. Resumes must be provided for artist and team members and they must include the names, qualifications, and proposed duties of the proposed team members to be assigned to this project. Artist may substitute other staff of at least equal experience and competence, with prior written approval by the City.

Proposals not in compliance with all stated requirements will not be considered for this project.

VIII. POLICIES
Artist(s) will retain the ownership of design ideas submitted for consideration until a final selection has been made and a n Agreement signed between the artist(s) and the City. At the time an Agreement is awarded, the City will obtain 100% ownership of the designs and the artwork produced, in this case the public art murals, will become the property of the City as a work made for hire as defined by the copyright laws of the United States . The City shall be the sole and exclusive owner and copyright proprietor of all rights and title in and to the results and proceeds of artist’s services hereunder. In addition, artist(s) will represent being the sole author of the artwork and that all services are original by artist/team and are not copied in whole or in part.

667Exhibit 3
10 Financial compensation for the completion of the four (4) murals will be made in accordance with the agreed upon Agreement between the artist and the City.

The City reserves the right to withdraw the RFP at any time without prior notice. The City makes no representations that any agreement will be awarded to any Artist(s) responding to this RFP. The City reserves the right to extend the deadline for proposals , postpone reviewing the proposals for its own convenience, reject any and all proposals without indicating any reasons for such rejection(s), and negotiate with any qualified Artist(s).

The successful Artist(s) is required to obtain and maintain insurance. The insurance must be maintained for the entire duration of the agreement. A current business license is not a prerequisite for submittal of the proposal. The City is not liable for any costs incurred by the Proposers before entering into a formal agreement. Costs for developing the proposal or any other such expenses incurred by the Proposer in responding to this RFP are entirely the responsibility of the P roposer and will not be reimb ursed by the City. The City is not responsible for proposals which are delinquent, lost, incorrectly marked, sent to the wrong address, or sent by mail or courier service and not signed for by the City.

To facilitate the RFP process, Proposers are encouraged to monitor the City’s web page to view the RFP and addenda, if any, at https://www.bellgardens.org/i-want-to/view- bidsrfps/rfps-and-bids. No oral interpretations will be made by the City to any Proposer as to the meaning of requirements identified herein, including the Scope of Work.

IX. CONTACT INFORMATION
Questions regarding the information contained in the RFP document must be submitted by email and addressed to:

Bernardo Iniguez, Director of Public Works/Facilities - [email protected] All questions must be received by 4:00 p.m. on February 22, 2024. Questions will be responded to in writing and posted on the City’s web page at https://www.bellgardens.org/i- want-to/view-bids-rfps/rfps-and-bids. Anonymity of the source of specific written questions will be maintained in the written responses. A response to request for information and/or addendum to the RFP will be issued, if necessary. Telephone requests for information or inquiries will not be allowed. The intent behind this requirement is to ensure that Proposers have available to them the same information and that no inconsistent, incomplete, or incorrect information is communicated to any Proposer. Proposers may not rely on any oral interpretations given by any City employee and may only rely upon officially issued, written addenda or response to request for information. If any changes or updates to the RFP are made, they will be posted on the City’s web page at https://www.bellgardens.org/i-want- to/viewbids-rfps/rfps-and-bids.
668Exhibit 3
11 ATTACHMENT A
ACKNOWLEDGEMENT OF CITY’S STANDARD FORM OF AGREEMENT

I, the undersigned, certify that I, _________________________[ insert name ], the party making the proposal for award of an agreement for PUBLIC MURAL PROJECT AT JULIA RUSS ASMUS PARK AND HANNON PARK (“Proposer”) and, on behalf of the Proposer, hereby:

Accept City’s Standard Form of Agreement – check one box.

As is, without qualifications or modifications.

As modified by attachment. [Proposer to provide]

I certify that I am authorized to sign this Consent Form on behalf of the Proposer.

Executed this_____ day of _________, 2024 at ___________________________, California.

Signature:

Printed/Typed Name:

Title:

669Exhibit 3
12 ATTACHMENT B

STANDARD AGREEMENT

2024

CONTRACT SERVICES AGREEMENT
(Contractor: INSERT NAME)
(Nature of Engagement: INSERT DESCRIPTION OF ENGAGEMENT)

THIS CONTRACT SERVICES AGREEMENT (hereinafter, “Agreement”) is made and entered into this ___________ day of _________________ 2024 by and between the CITY OF BELL GARDENS, a municipal corporation (hereinafter, “CITY”) and INSERT CONTRACTOR NAME (hereinafter, “CONTRACTOR”). For the purposes of this Agreement, CITY and CONTRACTOR may be referred to collectively by the capitalized term “Parties.” The capitalized term “Party” may refer to CITY or CONTRACTOR interchangeably.

RECITALS

WHEREAS, CITY is a municipal corporation organized under the laws of the State of California, with power to contract for services necessary to achieve its purpose; and

WHEREAS, CITY requires INSERT THE KIND OF SERVICES REQUIRED; and

WHEREAS, CITY staff has determined that CONTRACTOR possess the skills, experience and expertise required to competently provide the services and tasks contemplated under this Agreement; and

WHEREAS, the execution of this Agreement was approved by the [BELL GARDENS CITY COUNCIL AT ITS REGULAR MEETING or CITY MANAGER PURSUANT TO HIS AUTHORITY UNDER SECTION 3.04.090 OF THE BELL GARDENS MUNICIPAL CODE].

NOW, THEREFORE, for and in consideration of the mutual covenants and conditions herein contained, CITY and CONTRACTOR agree as follows:

Section 1. Scope of Work.

A. Subject to the terms and conditions of this Agreement, CONTRACTOR agrees to provide the services and tasks described in that certain Request for Proposals of CITY entitled “ INSERT TITLE OF REQUEST FOR PROPOSALS ” (hereinafter, “CITY RFP”) and the written proposal of CONTRACTOR entitled “ INSERT TITLE OF PROPOSAL ” (hereinafter, the “CONTRACTOR PROPOSAL”) dated INSERT DATE OF PROPOSAL . The CITY RFP and the CONTRACTOR PROPOSAL are attached and incorporated hereto as Exhibit “A” and “B” respectively. The term “Scope of Work” shall be a collective reference to the CITY RFP and the CONTRACTOR PROPOSAL. The capitalized term “Work” shall be a collective reference to all the various services and tasks referenced in the Scope of Work. In 670Exhibit 3
13 the event of any conflict or inconsistency between the provisions of the document entitled CITY RFP and the provisions of the document entitled CONTRACTOR PROPOSAL, the requirements of the document entitled CITY RFP shall govern and control but only to the extent of the conflict or inconsistency and no further. In the event of any conflict or inconsistency between the provisions of the Scope of Work and the provisions of this Agreement to which the Scope of Work is attached, the provisions of this Agreement shall govern and control.

C. By executing this Agreement, CONTRACTOR warrants that CONTRACTOR: (i) has thoroughly investigated and considered the nature of the work, services and tasks to be performed under this Agreement; (ii) has carefully considered how the Work should be performed; and (iii) fully understands the facilities, difficulties, and restrictions attending performance of the services under this Agreement.

CONTRACTOR warrants that CONTRACTOR has or will investigate any location where the Work is to be performed and is or will be fully acquainted with the conditions there existing, prior to undertaking any service or task requested by CITY in the manner described under Section 3, below. Should the CONTRACTOR discover any latent or unknown conditions which will materially affect the performance of the services hereunder, CONTRACTOR shall imme diately inform the CITY of such fact and shall not proceed, except at CONTRACTOR’s risk until written instructions are received from the City Representative as defined herein.

D. In the event CONTRACTOR ceases to perform the Work agreed to under this Agreement or otherwise abandons any undertaking contemplated herein prior to completion and acceptance of the Work, CONTRACTOR shall deliver to CITY immediately and without delay, all materials, records and other work product prepared or obtained by CONTRACTOR in the performance of this Agreement.

Furthermore, CONTRACTOR shall only be compensated for the reasonable value of the services, tasks and other work performed up to the time of cessation or abandonment, less a deduction for any damages, costs or additional expenses which CITY may incur as a result of CONTRACTOR’s cessation or abandonment.

Section 2. [Reserved – No Text]

Section 3. Prosecution of Work.

A. Time is of the essence of this Agreement and each and every provision contained herein. The Work shall be commenced within three (3) calendar days of CITY’s issuance of a written notice to proceed (“Notice to Proceed”). The Work shall be completed by [insert time to be completed by or Insert date to be completed by of CITY’s issuance of the Notice to Proceed] (hereinafter, the “Completion Date”).

B. CONTRACTOR may submit a written request for additional time to complete the Work, which request must be submitted to the CITY no later than fifteen (15) calendar days prior to the Completion Date or any extended Completion Date 671Exhibit 3
14 granted by CITY. The written request for additional time must identify (i) what specific tasks or services remain to be completed by CONTRACTOR in order to complete the Work; (ii) how much additional time CONTRACTOR requires; (iii) identification of the c ircumstances that have caused the need for additional time, according to CONTRACTOR, including, if applicable, identification of any tasks that must be completed by CITY as prerequisite to CONTRACTOR being able to complete any other service or task; and (i v) what proactive steps CONTRACTOR has taken up to the date of the request to mitigate the need for additional time, including, if applicable, any effort on the part of CONTRACTOR to alert CITY of the need to provide information or complete certain tasks t o be performed by CITY.

C. CONTRACTOR shall not claim or be entitled to receive any compensation or damage because of the failure of CONTRACTOR, or its subcontractors, to have related services or tasks completed in a timely manner.

D. CONTRACTOR shall at all times enforce strict discipline and good order among CONTRACTOR’s employees.

E. CONTRACTOR, at its sole expense, shall pay all sales, consumer, use or other similar taxes required by law.

Section 4. Compensation.

A. CONTRACTOR shall perform all the Work in accordance with the rates set forth in the CONTRACTOR PROPOSAL.

B. CONTRACTOR’s total compensation during the Term of this Agreement shall not exceed the sum of INSERT WRITTEN AMOUNT ($INSERT NUMBER) (hereinafter, the “Not-to-Exceed Sum”). CONTRACTOR further agrees that the Not -to-Exceed Sum is inclusive of compensation for all labor, materials, tools, supplies, equipment, services, tasks and incidental and customary work necessary to competently perform and timely complete the Work. CONTRACTOR shall have no right or entitlement to any overage contingency sums authorized by the City Council unless the City Representative authorizes the expenditure of such overage contingency funds in writing in the City Representative’s sole and absolute discretion.

C. Following the conclusion of Work requested pursuant to Section 1 above, CONTRACTOR shall submit to CITY an itemized invoice indicating the services and tasks performed. If the amount of CONTRACTOR’s compensation includes hours worked by CONTRACTOR’s person nel, the invoice shall indicate the number of hours worked in connection with the specific service or task requested, the persons responsible for performing the Work, the rate of compensation at which such services and tasks were performed, the subtotal for each task and service performed and a grand total for all services performed. Within thirty (30) calendar days of receipt of each invoice, CITY shall notify CONTRACTOR in writing of any disputed amounts included in the invoice. Within forty -five (45) c alendar days of receipt of each invoice, CITY shall pay all undisputed amounts included on the invoice. CITY shall not withhold applicable taxes or other authorized deductions from payments 672Exhibit 3
15 made to CONTRACTOR.

Section 5. Standard of Care. CONTRACTOR represents, acknowledges and agrees as follows:

A. CONTRACTOR shall perform all work skillfully, competently and to the highest standards applicable to the CONTRACTOR’s field;

B. CONTRACTOR represents and maintains that it is skilled in the professional calling necessary to perform the Services;

C. CONTRACTOR shall perform all work in a manner reasonably satisfactory to the CITY;

D. CONTRACTOR shall comply with all applicable federal, state and local laws and regulations, including the conflict of interest provisions of Government Code Section 1090 and the Political Reform Act (Government Code Section 81000 et seq .).

CONTRACTOR’s compliance with applicable laws will include, without limitation, compliance with all applicable Cal/OSHA requirements and applicable regulations of the Federal Department of Housing and Urbanization;

E. CONTRACTOR understands the nature and scope of the Work to be performed under this Agreement as well as any and all schedules of performance;

F. All of CONTRACTOR’s employees and agents (including but not limited to CONTRACTOR’s subcontractors and subconsultants) possess sufficient skill, knowledge, training and experience to perform those services and tasks contemplated under this Agreement;

G. All of CONTRACTOR’s employees and agents (including but not limited to CONTRACTOR’s subcontractors and subconsultants) possess all licenses, permits, certificates, qualifications and approvals of whatever nature that are legally required to perform the tasks and services contemplated under this Agreement and all such licenses, permits, certificates, qualifi cations and approvals shall be maintained throughout the term of this Agreement; and

H. CONTRACTOR shall at all times employ such force, plant, materials, and tools as will be sufficient in the opinion of the CITY to perform the Services within the time limits established, and as provided herein. It is understood and agreed that said tools, equipment, apparatus, facilities, labor, and material shall be furnished and said Services performed and completed as required by the Agreement, and subject to the approval of the CITY’s authorized representative. The quality of Services shall meet or exceed those standards established by the CITY or County of jurisdiction.

The Parties acknowledge and agree that CONTRACTOR shall perform, at CONTRACTOR’s own cost and expense and without any reimbursement from CITY, any services or tasks necessary to correct any errors or omissions caused by CONTRACTOR’s failure to comply with the standard of care set forth under this Section or by any like failure on the part of CONTRACTOR’s employees, agents, contractors, subcontractors and subconsultants. Such effort by CONTRACTOR to 673Exhibit 3
16 correct any errors or omissions shall be commenced immediately upon their discovery by either Party and shall be completed within seven (7) calendars days from the date of discovery or such other extended period of time authorized by the City Representative in writing and absolute discretion. The Parties acknowledge and agree that CONTRACTOR’s acceptance of any work performed by CONTRACTOR or on CONTRACTOR’s behalf shall not constitute a release of any deficiency or delay in performance. The Parties furth er acknowledge, understand and agree that CONTRACTOR has relied upon the foregoing representations of CONTRACTOR, including but not limited to the representation that CONTRACTOR possesses the skills, training, knowledge and experience necessary to perform the Work in a skillful and competent manner equivalent to, the standard of performance generally recognized as being employed by professionals performing the same type of work and services in the State of California.

Section 6. Representatives.

A. City Representative. For the purposes of this Agreement, the contract administrator and CITY’s representative shall be INSERT CITY REPRESENTATIVE (hereinafter, the “City Representative”). It shall be CONTRACTOR’s responsibility to assure that the City Representative is kept informed of the progress of the performance of the services, and CONTRACTOR shall refer any decisions which must be made by CITY to the City Representative. Unless otherwise specified herein, any approval of CITY required hereunder shall mean the approval of the City Representative.

B. Contractor Representative . For the purposes of this Agreement, INSERT CONTRACTOR REPRESENTATIVE, is hereby designated as the principal and representative of CONTRACTOR authorized to act on its behalf with respect to CONTRACTOR’s performance under this Agreement and to make all decisions in connection therewith (hereinafter, the “Contractor Representa tive”). Notice to the Contractor Representative whether written or verbal shall constitute notice to CONTRACTOR. The Contractor’s Representative shall supervi se and direct the Services, using their best skill and attention, and shall be responsible for all means, methods, techniques, sequences, and procedures and for the satisfactory coordination of all portions of the Services under this Agreement.

Section 7. Contractor’s Personnel

A. CONTRACTOR represents that it has, or will secure at its own expense, all personnel required to perform the Work and all other services and tasks necessary for CONTRACTOR to competently and timely complete the improvements contemplated under this Agreement. All Work, services and tasks will be performed under CONTRACTOR’s super vision, and CONTRACTOR’s personnel engaged in the performance of the work, services and tasks contemplated under this Agreement shall possess the qualifications, permits and licenses required by applicable law to perform such work, services and tasks.

B. 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 Work.

CONTRACTOR shall have the sole obligation to pay for any fees, assessments and 674Exhibit 3
17 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 Work, and shall indemnify, defend and hold harmless CITY against any such fees, assessments, taxes, penalties, or interest levied, assessed, or imposed against CITY hereunder.

C. CONTRACTOR shall be solely responsible for the satisfactory work performance of all personnel engaged in performing the Work.

D. In the event that CITY, in its sole reasonable discretion, at any time during the term of this Agreement, desires the removal of any person or persons assigned by CONTRACTOR to perform services pursuant to this Agreement, CONTRACTOR shall remove any such p erson immediately upon receiving notice from CITY of the desire of CITY for the removal of such person or persons.

F. CONTRACTOR shall obtain and maintain during the Agreement term all necessary licenses, permits and certificates required by law for the performance of the Work contemplated under this Agreement.

Section 8. Substitution of Key Personnel. CONTRACTOR has represented to CITY that certain key personnel will perform and coordinate the Services under this Agreement.

Should one or more of such personnel become unavailable, CONTRACTOR may substitute other personnel of at least equal competence upon written approval of CITY. In the event that CITY and CONTRACTOR cannot agree as to the substitution of key personnel, CITY shall be entitled to terminate this Agreement for cause. As discussed below, any personnel who fail or refuse to perform the Services in a manner acceptable to the CITY, or who are determined by the CITY to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project or a threat to the safety of persons or property, shall be promptly removed from the Project by the CONTRACTOR at the request of the CITY.

Section 9. Prohibited Interests. CONTRACTOR warrants, represents and maintains that it has not employed nor retained any company or person, other than a bona fide employee working solely for CONTRACTOR, to solicit or secure this Agreement. Further, CONTRACTOR warrants and represents that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for CONTRACTOR, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, CITY shall have the absolute and unfettered right to rescind this Agreement without liability or penalty. For the term of this Agreement, no member, officer or employee of CITY, during the term of his or her service with CITY, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.

675Exhibit 3
18 Section 10. Independent Contractor.

A. All acts of CONTRACTOR, its agents, officers, subcontractors and employees and all others acting on behalf of CONTRACTOR relating to the performance of this Agreement, shall be performed as independent contractors and not as agents, officers, or employees of CITY. CONTRACTOR, by virtue of this Agreement, has no authority to bind or incur any obligation on behalf of CITY. CONTRACTOR has no authority or responsibility to exercise any rights or power vested in CITY. No agent, officer, or employee of CITY is to be considered an employee of CONTRACTOR. It is understood by both CONTRACTOR and CITY that this Agreement shall not, under any circumstances, be construed or considered to create an employer-employee relationship or a joint venture.

C. CONTRACTOR shall determine the method, details and means of performing the Work. CONTRACTOR shall be responsible to CITY only for the requirements and results specified in this Agreement and, except as expressly provided in this Agreement, shall not be sub jected to CITY's control with respect to the physical action or activities of the CONTRACTOR in fulfillment of this Agreement.

CONTRACTOR has control over the manner and means of performing the services under this Agreement. CONTRACTOR is permitted to pr ovide services to others during the same period as it provides services to CITY under this Agreement. If necessary, CONTRACTOR has the responsibility for employing other persons or firms to assist CONTRACTOR in fulfilling the terms and obligations under t his Agreement.

D. If in the performance of this Agreement any third persons are employed by CONTRACTOR, such persons shall be entirely and exclusively under the direction, supervision, and control of CONTRACTOR. All terms of employment including hours, wages, working condi tions, discipline, hiring, and discharging or any other term of employment or requirement of law shall be determined by the CONTRACTOR.

Section 11. Conflicts of Interest. CONTRACTOR hereby warrants for itself, its employees, and subcontractors that those persons presently have no interest and shall not obtain any interest, direct or indirect, which would conflict in any manner with the performance of the services contemplat ed by this Agreement. No person having such 676Exhibit 3
19 conflicting interest shall be employed by or associated with CONTRACTOR in connection with this project. CONTRACTOR hereby warrants for itself, its employees, and subcontractors that no such person shall engage in any conduct which would constitute a conflict of interest under any CITY ordinance, state law or federal statute. CONTRACTOR agrees that a clause substantially similar to this Section shall be incorporated into any sub- contract that CONTRACTOR executes in connection with the performance of this Agreement.

Section 12. Non-Discrimination. During the performance of this Agreement, CONTRACTOR and its subcontractors shall not unlawfully discriminate against any employee or applicant for employment because of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, reproductive health decision making or military and veteran status. CONTRACTOR an d subcontractors shall ensure that the evaluation and treatment of their employees and applicants for employment are free of such discrimination. CONTRACTOR and subcontractors shall comply with the provisions of the Fair Employment and Housing Act (Gov. Code, Section 12900 et seq.). The applicable regulations of the Fair Employment and Housing Act, set forth in Part 2.8, Division 3, of Title 2 of the Government Code are incorporated into this Contract by reference and made a part hereof as if set forth in full.

CONTRACTOR and its subcontractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreement. This CONTRACTOR shall include the nondiscrimination and complia nce provisions of this clause in all subcontracts to perform the Work under this Agreement.

Section. 13. Indemnification.

A. To the fullest extent permitted by law, CONTRACTOR hereby agrees, at its sole cost and expense, to defend, protect, indemnify, and hold harmless CITY and CITY’s elected and appointed officials, officers, attorneys, agents, employees, volunteers, successors, and assigns (collectively "Indemnitees") from and against any and all damages, costs, expenses, liabilities, claims, demands, causes of action, proceedings, expenses, judgments, penalties, liens, and losses of any nature whatsoever, including fees of accountants, attorneys, or other professionals and all costs associated therewith (collectively "Liabilities"), arising or claimed to arise, directly or indirectly, out of, in connection with, resulting from, or related to any act, failure to act, error, or o mission of CONTRACTOR or any of CONTRACTOR’s officers, agents, servants, employees, subcontractors, materialmen, suppliers or their officers, agents, servants or employees, arising or claimed to arise, directly or indirectly, out of, in connection with, resulting from, or related to this Agreement and the performance or failure to perform any term, provision, covenant, or condition of the Agreement, including this indemnity provision. This indemnity provision is effective regardless of any prior, concurren t, or subsequent active or passive negligence by CONTRACTOR and shall operate to fully indemnify Indemnitees against any such negligence. This indemnity provision shall survive the termination of the Agreement and is in addition to any other rights or rem edies which Indemnitees may have under the law or elsewhere under this Agreement. Payment is not required as a condition precedent to an Indemnitee's right to recover under this indemnity provision, and an entry of judgment against any one or more of the 677Exhibit 3
20 Indemnitees shall be conclusive in favor of the Indemnitees’ right to recover under this indemnity provision. CONTRACTOR shall pay Indemnitees for any attorney’s fees and costs incurred in enforcing this indemnification provision. Notwithstanding the fore going, nothing in this instrument shall be construed to encompass (a) Indemnitees' sole negligence or willful misconduct to the limited extent that the underlying Agreement is subject to Civil Code § 2782(a), or (b) the contracting public agency's active n egligence to the limited extent that the underlying Agreement is subject to Civil Code § 2782(b). This indemnity is effective without reference to the existence or applicability of any insurance coverage(s) which may have been required under the Agreement or any additional insured endorsements which may extend to Indemnitees. Accountants, attorneys, or other professionals employed by Indemnitor to defend Indemnitees shall be selected by Indemnitees.

CONTRACTOR, on behalf of itself and all parties claiming under or through it, hereby waives all rights of subrogation and contribution against the Indemnitees, while acting within the scope of their duties, from all claims, losses and liabilities arising out of or incident to activities or operations performed b y or on behalf of the Indemnitor regardless of any prior, concurrent, or subsequent active or passive negligence by the Indemnitees.

B. CONTRACTOR’s obligations under this or any other provision of this Agreement will not be limited by the provisions of any workers compensation act or similar act.

CONTRACTOR expressly waives its statutory immunity under such statutes or laws as to the Indemnities.

C. CONTRACTOR agrees to obtain executed indemnity agreements with provisions identical to those in this Section from each and every subcontractor or any other person or entity involved by, for, with or on behalf of CONTRACTOR in the performance of this Agreem ent. In the event CONTRACTOR fails to obtain such indemnity obligations for the benefit of CITY, CONTRACTOR agrees to be fully responsible and indemnify, hold harmless and defend CITY, its officers, agents, employees and volunteers from and against any and all claims and losses, costs or expenses for any damage due to death or injury to any person and injury to any property resulting from any alleged, intentional, reckless, negligent or otherwise wrongful acts, errors or omissions of CONTRACTOR or any of i ts officers, employees, servants, agents, subcontractors, volunteers or any other person or entity involved by, for, with or on behalf of CONTRACTOR in the performance of this Agreement. Such costs and expenses shall include reasonable attorneys’ fees incurred by counsel of CITY’s choice.

D. CITY does not, and shall not; waive any rights that it may possess against CONTRACTOR because of the acceptance by CITY, or the deposit with CITY, of any insurance policy or certificate required pursuant to this Agreement. This hold harmless and indemnification provision shall apply regardless of whether or not any insurance policies are determined to be applicable to the claim, demand, damage, liability, loss, cost or expense. CONTRACTOR agrees that CONTRACTOR’s covenant under this Section shall survive the termination of this Agreement.

E. CONTRACTOR shall fully comply with the workers’ compensation laws regarding CONTRACTOR and CONTRACTOR’s employees. CONTRACTOR further agrees to indemnify and hold CITY harmless from any failure of CONTRACTOR to comply 678Exhibit 3
21 with applicable workers’ compensation laws. CITY shall have the right to offset against the amount of any fees due to CONTRACTOR under this Agreement any amount due to CITY from CONTRACTOR as a result of CONTRACTOR’s failure to promptly pay to CITY any re imbursement or indemnification arising under this Section.

Section 14. Insurance.

A. CONTRACTOR shall at all times during the term of this Agreement carry, maintain, and keep in full force and effect, insurance as follows:

1. Commercial General Liability Insurance with minimum limits of One Million Dollars ($1,000,000) for each occurrence and in the aggregate for any personal injury, death, loss or damage.

2. Automobile Liability Insurance for any owned, non -owned or hired vehicle used in connection with the performance of this Agreement with minimum limits of One Million Dollars ($1,000,000) per accident for bodily injury and property damage.

3. Worker’s Compensation insurance as required by the State of California.

B. CONTRACTOR shall require each of its sub -consultants or sub -contractors to maintain insurance coverage that meets all of the requirements of this Agreement.

C. The policies required by this Agreement shall be issued by an insurer admitted in the State of California and with a rating of at least A:VII in the latest edition of Best’s Insurance Guide.

D. CONTRACTOR agrees that if it does not keep the insurance required in this Agreement in full force and effect, CITY may either immediately terminate this Agreement or, if insurance is available at a reasonable cost, CITY may take out the necessary insurance and pay, at CONTRACTOR’S expense, the premium thereon.

G. The general liability and automobile policies of insurance shall contain an endorsement naming CITY, its elected officials, officers, agents, employees, attorneys, servants, volunteers, successors and assigns as additional insureds. All of the policies sh all contain an endorsement providing that the policies cannot be canceled or reduced except on thirty (30) days’ prior written notice to CITY.

CONTRACTOR agrees to require its insurer to modify the certificates of insurance 679Exhibit 3
22 to delete any exculpatory wording stating that failure of the insurer to mail written notice of cancellation imposes no obligation, and to delete the word “endeavor” with regard to any notice provisions.

H. All policies of Commercial General Liability and Automobile Liability insurance shall be primary and any other insurance, deductible, or self-insurance maintained by the CITY, its officials, officers, employees, agents, or volunteers shall not contribute with this primary insurance. Policies shall contain or be endorsed to contain such provisions.

I. All insurance coverage provided pursuant to this Agreement shall not prohibit CONTRACTOR, and CONTRACTOR’s employees, agents, subcontractors, or volunteers from waiving the right of subrogation prior to a loss. CONTRACTOR hereby waives all rights of subro gation against CITY, its officials, officers, employees, agents and volunteers.

J. Any deductibles or self-insured retentions must be approved by CITY. At the option of CITY, CONTRACTOR shall either reduce or eliminate the deductibles or self - insured retentions with respect to CITY, or CONTRACTOR shall procure a bond guaranteeing payment of losses and expenses.

K. If CONTRACTOR is a Limited Liability Company, general liability coverage must be amended so that the Limited Liability Company and its managers, affiliates, employees, agents, and other persons necessary or incidental to its operation are insureds.

M. In the event any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced immediately so as to avoid a lapse in the required coverage, 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 effective upon notice.

N. CITY reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.

Section 15. Records and Inspection. CONTRACTOR shall keep, and require subcontractors to keep, such books and records as shall be necessary to document the performance of the Work and enable the CITY to evaluate the performance of the Work.

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 peri od of four (4) years following completion of the services hereunder, and the CITY shall have 680Exhibit 3
23 access to such records in the event any audit is required.

Section 16. Termination.

A. Termination for Convenience. CITY may immediately terminate this Agreement for convenience, without cause and without penalty or liability at any time upon the issuance of written notice to CONTRACTOR specifying the effective date of such termination. Such termination for convenie nce shall be made in writing signed by either the City Representative, the City Manager or the Assistant City Manager.

CONTRACTOR may only terminate this Agreement for cause.

An Event of Default shall include, but shall not be limited to the following: (i) CONTRACTOR’s failure to fulfill or perform its obligations under this Agreement within the specified time or if no time is specified, within a reasonable time; (ii) CONTRACTOR’s and/or its employees’ disregard or violation of any federal, state, local law, rule, procedure or regulation; (iii) the initiation of proceedings under any bankruptcy, insolvency, receivership, reorganization, or similar legislation as relates to CONTRACTOR, whether voluntary of involuntary; (iv) CONTRACTOR’s refusal or failure to perform or observe any covenant, condition, obligation or provision of this Agreemen t; and/or (v) CITY’s discovery that a statement representation or warranty by CONTRACTOR relating to this Agreement is false or erroneous in any material respect, including any statement, representation or warranty set forth in the Equipment Specifications.

1. CONTRACTOR shall cure the following Event of Default within the following time periods:

i. Within three (3) business days of CITY’s issuance of a Default Notice for any failure of CONTRACTOR to timely provide CITY or CITY’s employees or agents with any information and/or written reports, documentation or work product which CONTRACTOR is obligate d to provide to CITY or CITY’s employees or agents under this Agreement. Prior to the expiration of the 3-day cure period, CONTRACTOR may submit a written request for additional time to cure the Event of Default upon a showing that CONTRACTOR has commenced efforts to cure the Event of Default and that the Event of Default cannot be reasonably cured within the 3-day cure period. The foregoing notwithstanding, CITY shall be under no obligation 681Exhibit 3
24 to grant additional time for the cure of an Event of Default under this subsection that exceeds seven (7) calendar days from the end of the initial 3-day cure period; or

ii. Within thirty (30) calendar days of CITY’s issuance of a Default Notice for any other Event of Default under this Agreement. Prior to the expiration of the 30-day cure period, CONTRACTOR may submit a written request for additional time to cure the Event o f Default upon a showing that CONTRACTOR has commenced efforts to cure the Event of Default and that the Event of Default cannot be reasonably cured within the 30 -day cure period. The foregoing notwithstanding, CITY shall be under no obligation to grant additional time for the cure of an Event of Default under this subsection that exceeds thirty (30) calendar days from the end of the initial 30-day cure period.

If an Event of Default relates to a material falsehood or misrepresentation set forth in Exhibit “A” that is not susceptible to a cure, CITY in its sole and absolute discretion may elect to treat the falsehood or misrepresentation as a breach of this Agreement or waive the falsehood or misrepresentation. The foregoing notwithstanding, the prior waiver o f a falsehood or misrepresentation as an Event of Default shall not operate as a waiver or any other falsehood or misrepresentation later discovered by CITY.

2. Except as otherwise specified in this Agreement, CITY shall cure any Event of Default asserted by CONTRACTOR within thirty (30) calendar days of CONTRACTOR’s issuance of a Default Notice, unless the Event of Default cannot reasonably be cured within the 30-day cure period. Prior to the expiration of the 30-day cure period, CITY may submit a written request for additional time to cure the Event of Default upon a showing that CITY has commenced its efforts to cure the Event of Default and that the Event of D efault cannot be reasonably cured within the 30-day cure period. The foregoing notwithstanding, an Event of Default dealing with CITY’s failure to timely pay any undisputed sums to CONTRACTOR shall be cured by CITY within five (5) calendar days from the date of CONTRACTOR’s Default Notice to CITY.

3. CITY, in its sole and absolute discretion, may also immediately suspend CONTRACTOR’s performance under this Agreement (or the performance of any specific task or function performed by CONTRACTOR under this Agreement) pending CONTRACTOR’s cure of any Event of Default by giving CONTRACTOR written notice of CITY’s intent to suspend CONTRACTOR’s performance (hereinafter, a “Suspension Notice”). CITY may issue the Suspension Notice at any time upon the occurrence of an Event of Default. Upon such suspension, CONTRACTOR shall be compensated only for those services and tasks which have been rendered by CONTRACTOR to the reasonable satisfaction of CITY up to the effective date of the suspension. No actual or asserted breach of this Agreement on the part of CITY s hall operate to prohibit or otherwise restrict CITY’s ability to suspend this Agreement as provided herein.

4. No waiver of any Event of Default or breach under this Agreement shall constitute 682Exhibit 3
25 a waiver of any other or subsequent Event of Default or breach. No waiver, benefit, privilege, or service voluntarily given or performed by a Party shall give the other Party any contractual rights by custom, estoppel, or otherwise.

In addition to any o ther remedies available to CITY at law or under this Agreement in the event of any breach of this Agreement, CITY, in its sole and absolute discretion, may also pursue any one or more of the following remedies:

i. Upon written notice to CONTRACTOR, the CITY may immediately terminate this Agreement in whole or in part;

ii. Upon written notice to CONTRACTOR, the CITY may extend the time of performance;

iii. The CITY may proceed by appropriate court action to enforce the terms of the Agreement to recover damages for CONTRACTOR’s breach of the Agreement or to terminate the Agreement; or

iv. The CITY may exercise any other available and lawful right or remedy.

CONTRACTOR shall be liable for all legal fees plus other costs and expenses that CITY incurs upon a breach of this Agreement or in the CITY’s exercise of its remedies under this Agreement.

6. In the event CITY is in breach of this Agreement, CONTRACTOR’s sole remedy shall be the suspension or termination of this Agreement and/or the recovery of any unpaid sums lawfully owed to CONTRACTOR under this Agreement for completed services and tasks. I n no event shall CONTRACTOR be entitled to receive more than the amount that would be paid to CONTRACTOR for the full performance of the services required by this Agreement.

Section 17. Force Majeure. The Completion Date shall be extended in the event of any delays due to unforeseeable causes beyond the control of CONTRACTOR and without the fault or negligence of CONTRACTOR, including but not limited to severe weather, fires, earthquakes, floods, epidem ics, quarantine restrictions, riots, strikes, freight embargoes, wars, litigation, and/or acts of any governmental agency, including the CITY , if the CONTRACTOR shall within three (3) calendar days of the commencement of such delay notify the City Representative in writing of the causes of the delay. The City Representative shall ascertain the facts and the extent of delay, and extend the time for performing the 683Exhibit 3
26 services for the period of the enforced delay when and if in the judgment of the City Representative such delay is justified. The City Representative’s determination shall be final and conclusive upon the parties to this Agreement. In no event shall CONTRA CTOR 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.

Section 18. Notices. Any notices, bills, invoices, or reports required by this Agreement shall be deemed received on: (a) the day of delivery if delivered by hand or overnight courier service during CONTRACTOR’s and CITY’s regular business hours; or (b) on the third business d ay following deposit in the United States mail, postage prepaid, to the addresses heretofore below, or to such other addresses as the parties may, from time to time, designate in writing.

If to CITY: If to CONTRACTOR:

City of Bell Gardens
7100 S. Garfield Avenue
Bell Gardens, CA 90201
Attn: INSERT DEPARTMENT
Phone: 562-806-7700

INSERT CONTRACTOR NAME

INSERT ADDRESS

Attn: INSERT PERSON OF

CONTACT NAME
Phone: INSERT PHONE
NUMBER

Section 19. Prohibition. CONTRACTOR shall not delegate, transfer, subcontract or assign its duties or rights hereunder, either in whole or in part, without CITY’s prior written consent, and any attempt to do so shall be void and of no effect. CITY shall not be obligated or liable under this Agreement to any party other than CONTRACTOR.

Section 20. Attorney Fees. In the event that CITY or CONTRACTOR commences any legal action or proceeding to enforce or interpret the provisions of this Agreement, the prevailing party shall be entitled to recover its costs of suit, including reasonable attorney’s fees.

Section 21. Entire Agreement. All documents referenced as exhibits in this Agreement are hereby incorporated in this Agreement. Except as expressly provided in this Agreement or its Exhibits, in the event of any conflict or inconsistency between the express provisions of this Agreemen t and provisions of any document incorporated by reference, the provisions of this Agreement shall prevail and control. This instrument contains the entire Agreement between CITY and CONTRACTOR with respect to the subject matter herein.

No other prior oral or written agreements are binding on the parties. Any modification of this Agreement will be effective only if it is in writing and executed by both CITY and CONTRACTOR.

Section 22. Governing Law; Jurisdiction. This Agreement shall be interpreted and governed according to the laws of the State of California. In the event of litigation between the Parties, venue, without exception, shall be in the Los Angeles County Superior Court 684Exhibit 3
27 of the State of California. If, and only if, applicable law requires that all or part of any such litigation be tried exclusively in federal court, venue, without exception, shall be in the Central District of California located in the City of Los Angeles, California.

Section 23. Severability. Wherever possible, each provision of this Agreement shall be interpreted in such a manner as to be valid under applicable law. If any provision of this Agreement is determined by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions shall nevertheless continue in full force and effect.

Section 25. Captions. The captions used in this Agreement are solely for reference and the convenience of the Parties. The captions are not a part of the Agreement, in no way bind, limit, or describe the scope or intent of any provision, and shall have no effect upon the construction or interpretation of any provision herein.

Section 26. Execution. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, but all of which when taken together shall constitute one and the same instrument.

[SIGNATURES ON FOLLOWING PAGE]
685Exhibit 3
28 IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed the day and year first appearing in this Agreement, above.

CITY OF BELL GARDENS, a municipal
corporation

By:

Michael B. O’Kelly
City Manager

Date:

CONTRACTOR NAME

By: ______________________________

Name:____________________________

Title:_____________________________

Date:

APPROVED AS TO FORM:

By:_____________________________
Stephanie Vasquez
City Attorney

Dat

686Exhibit 3
29 EXHIBIT “A”

CONTRACTOR PROPOSAL

687Exhibit 3

Hartzog & Crabill, Inc.

Consulting Tra ffic Engineers to Government Agencies

March 4, 2024

Mr. Bernardo Iniguez
Director of Public Works/Facilities
City of Bell Gardens
8327 Garfield Avenue
Bell Gardens, CA 90201

Subject: Proposal to Provide Professional Artist Services for Julia Russ Asmus Park and Hannon Park

Dear Mr. Iniguez

Hartzog & Crabill, Inc. (HCI) is pleased to submit this proposal to provide professional artist services to the C ity of Bell Gardens for the subject project. Our services include all tasks necessary to develop four (4) historically and culturally themed murals to be placed at the above referenced public parks. The specific tasks include the development of design concepts of the (4) murals for City review and approval as well as mural painting.

HCI will acquire all equipment and materials, and provide the services of artist Ms. Candace Galvan who has completed numerous murals for multiple agencies in the surrounding communities. All work will be completed under the direction of Ms. Candace Galvan.

Thank you again for the opportunity of proposing on this new project and for your continued support. If you ha ve any questions or need more information, please feel free to call me at (714) 448-5835 (mobile).

Very truly yours,
HARTZOG & CRABILL, INC.

Gerald J. Stock, PE, TE
Executive Vice President
City & Traffic Engineering Services

Gerald J. Stock, P.E., T.E.,
Executive Vice-President

17852 E. 17
th Street
Suite 101
Tustin, CA 92780

Phone: (714) 731-9455
FAX: (714) 731-9498

www.hartzog-crabill.com
688Exhibit 4

Hartzog & Crabill, Inc.

Consulting Tra ffic Engineers to Government Agencies

PROPOSAL FOR OUTDOOR PUBLIC ART MURALS AT

JULIA RUSS ASMUS PARK AND HANNON PARK

CITY OF BELL GARDENS

MARCH 4, 2024
689Exhibit 4

Hartzog & Crabill, Inc.

Consulting Tra ffic Engineers to Government Agencies

Page 1 of 2 ends

Bell Gardens City CouncilApril 22, 2024

Bell Gardens City Council
April 22, 2024