Agenda packet — Carson City Council, October 6, 2026 (part 3 of 5)

The village-like apartment concept organizes
development around a pedestrian-oriented
layout with no on-site parking. The scenario
relies on proximity to surrounding retail
destinations and a reduced parking approach to
maximize site capacity and increase unit yield.

The scenario was determined to be potentially
viable.

The alternative village-like apartment concept
maintains a pedestrian-oriented layout while
testing a revised site configuration. The
approach increases development capacity
through a parking-free model with some surface
parking, improving land efficiency and increased
development capacity. The scenario was
determined to be potentially viable
Sustainable Pathways to Housing 59
60 South Bay Cities Restock
Site #3: 645 N Hawthorne Boulevard
City of Hawthorne
Site #3 (Hawthorne- 645 N Hawthorne Boulevard) is
a 1.60-acre site located along Hawthorne Boulevard.

The site benefits from an adjacent grocery store and
proximity to additional retail destinations along the
corridor.

The development scenarios explore a range of housing
typologies, from low-intensity town homes to wrap
configurations. All options incorporate setbacks to
address transitions to surrounding properties. The
site also considers a 30-foot-wide thoroughfare
connecting Hawthorne Boulevard to the neighborhood
street network, improving local connectivity and
walkability.

Site
Sustainable Pathways to Housing 61
Hypothetical Redevelopment Scenario
Lease - Not Considered Viable
Sale - Likely Viable
KEY
1 1
2 2
3 3
24 3-Story Townhomes
8 2-Story Townhomes
30’ Wide Thoroughfare
• Proximity to neighborhood-serving grocery and
retail destination
• Adjacent and connected to local travel network
• Appropriate scale for neighborhood
62 South Bay Cities Restock
Other Hypothetical Redevelopment Scenarios
3/4-Story Apartments (62 units, 39 du/ac)
Wrap Building (99 units, 62 du/ac)
Lease - Potentially Viable
Sale - Not Considered Viable
Lease - Potentially Viable
Sale - Potentially Viable
62 Residential Flats
Courtyard Open Space
30’ Wide Thoroughfare
50 Tuck-under Garage Spaces
12 Surface Parking Spaces
99 Residential Flats
Courtyard Open Space
30’ Wide Thoroughfare
120 Structured Garage Spaces
1 1
2 2
3 3
4 4
5 The four-story apartment concept introduces
a residential typology (units with tuck-under
parking) that responds to neighborhoods 2-3
story development along Grevillea Avenue. The
scenario was determined to be potentially viable.

The wrap-style apartment concept increases
density and unit yield but relies on structured
parking, which significantly increases
development costs and reduces feasibility. The
scenario was determined to be not considered
viable.
3 3
4 4
5 2
2 1
1 Sustainable Pathways to Housing 63
64 South Bay Cities Restock
Site #4: 11706 Prairie Avenue
City of Hawthorne
Site #4 (Hawthorne- 11706 Prairie Avenue) is a 0.69-
acre site located along Prairie Avenue. The site has
limited access to retail destinations and surrounding
neighborhood-serving amenities.

The development scenarios explore a range of housing
typologies, from for-sale townhomes to higherintensity podium configurations. Prairie Avenue is a 100-foot-wide vehicular corridor with high traffic
volumes. All scenarios incorporate a minimum 10-foot
setback to address adjacency conditions along the
corridor.

Site
Sustainable Pathways to Housing 65
Hypothetical Redevelopment Scenario
20 2/3-Story Townhome Units with Ground Level
Garages
Lease - Not Considered Viable
Sale - Likely Viable
KEY
1 1
• Site intensification
• Adjacent to local travel network
66 South Bay Cities Restock
Other Hypothetical Redevelopment Scenarios
3-Story Apartments (34 units, 49 du/ac)
Podium Building (93 Units, 135 du/ac)
3-Story Apartments (24 Units, 35 du/ac)
Lease - Not Considered Viable
Sale - Not Considered Viable
Lease - Potentially Viable
Sale - Not Considered Viable
Lease - Potentially Viable
Sale - Not Considered Viable
24 Residential Flats
24 Tuck-under + Surface Parking
20’ Wide Alley
93 Residential Flats
88 Structured Parking (Subterranean)
34 Residential Flats
34 Tuck-under Parking Space
20’ Wide Alley
Courtyard Open Space
1 1
1 2
2 2
3 3
4 The three-story apartment concept introduces a
low-intensity residential typology that does not
achieve sufficient threshold density to support
strong financial performance. The scenario was
determined to be not considered viable.

The three-story apartment concept maintains
a low-rise residential typology with modest
increases in unit yield. While feasibility improves
relative to lower-intensity configurations, overall
performance remains constrained by limited
density and site conditions. The scenario was
determined to be potentially viable
The podium apartment concept introduces
the most intensive development option,
increasing unit yield through vertical stacking.

While construction costs are higher, the
site can absorb the increased cost burden
due to improved density. The scenario was
determined to be potentially viable. However,
this typology increases a greater height without
any transitions to adjacent lower-scale existing
housing, which may not be desirable.
3 3 4
4 2
2 2
1 1
1 Sustainable Pathways to Housing 67
68 South Bay Cities Restock
Site #5: 20912-21188 Hawthorne Blvd
City of Torrance
Site #5 (Torrance-20912–21188 Hawthorne Boulevard)
is a 5.08-acre site located along Hawthorne Boulevard.

The site represents a typical strip mall condition found throughout the South Bay and benefits from proximity
to retail destinations along the corridor.

The development scenarios explore two
redevelopment approaches. One option maintains a
70-foot-deep setback along Hawthorne Boulevard,
retaining retail uses within the frontage while locating housing behind. The second option reduces the
setback to 20 feet and introduces a housing-only
configuration. The reduced setback increases unit
yield and generates sufficient residual land value to
support approximately 24 affordable units (about 7.5%
of total units).

Site
Sustainable Pathways to Housing 69
Hypothetical Redevelopment Scenario
Lease - Likely Viable
Sale - Not Considered Viable
KEY
1 1
2 2
• Housing along commercial corridor
• Proximity to retail destinations
• Adjacent and connected to local travel network
• Opportunity to include affordable units
4 2
3 2
3 4
Existing Retail Retained
241 Residential Flats
250 Structured Garage Spaces
New Retail
70 South Bay Cities Restock
Other Hypothetical Redevelopment Scenario
Housing With Existing Retail (317 units, 62 du/ac)
Lease - Likely Viable
Sale - Not Considered Viable
Existing Retail Retained
317 Residential Flats
320 Structured Garage Spaces
Courtyard Open Space
1 2
3 4
The wrap apartment concept introduces a
higher-intensity residential typology that
increases unit yield. Strong market conditions
support higher achievable rents, generating
sufficient residual land value (RLV) to include
approximately 24 affordable units. The scenario
3 was determined to be likely viable.
4 4
2 2
1 Sustainable Pathways to Housing 71
72 South Bay Cities Restock
Site #6: 2500-2700 Redondo Beach Blvd
City of Torrance
Site #6 (Torrance-2500–2700 Redondo Beach
Boulevard) is a 14.33-acre site located along Redondo
Beach Boulevard. The site currently functions as a
large surface lot used as an open-air market and was
historically developed as a drive-in theater. An existing drive-in screen remains on the site.

The development scenario proposes comprehensive
redevelopment of the approximately 15-acre site
through a mix of housing typologies, ranging from forsale townhomes to rental apartment models. The plan retains and celebrates the existing drive-in screen
as part of a public park and neighborhood-serving
retail destination while avoiding large-format retail
uses due to nearby existing retail concentrations. The
large site area, flexible development program, and
mix of housing types support overall feasibility. The
scenario developed was determined to be likely viable,
generating sufficient residual land value (RLV).

Site
Sustainable Pathways to Housing 73
Hypothetical Redevelopment Scenario
Lease - Likely Viable
Sale - Likely Viable
KEY
1 1
7 2
• Large surface lot redevelopment
• Proximity to neighborhood grocery stores and
retail shops
8 5
6 3
3 4
5 2
2 4
6 6
6 7
240 Structured Garage Spaces
74 3-Story Townhome Unit
with Tuck-under Parking
Retail
190 Residential Flats
225 Structured Garage Spaces
208 Residential Flats
257 Residential Flats
8 Existing Roadium Building
Retained
74 South Bay Cities Restock
Site #7: 1819 E Mariposa Avenue
City of El Segundo
Site #7 (El Segundo- 1819 E Mariposa Avenue) is a 1.80- acre site located along Sepulveda Boulevard. The site
is currently used as surface parking for the adjacent
Fairfield Hotel located south of Mariposa Avenue.

The development scenarios explore housing
typologies with increasing levels of intensity. The
options range from lower-intensity development with
tuck-under parking, to podium and wrap apartment
configurations. Across all scenarios, displaced hotel
parking is accommodated through alternative parking
strategies.

Site
Sustainable Pathways to Housing 75
Hypothetical Redevelopment Scenario
150 Residential Flats
Open Space
357 Structured Garage Spaces for
Residences and Hotel
Lease - Likely Viable
Sale - Not Considered Viable
KEY
1 1
2 2
3 3
• Large surface lot redevelopment
• Corridor intensification
• Proximity to retail destination
• Public transport option to LAX
76 South Bay Cities Restock
Other Hypothetical Redevelopment Scenarios
The three-story apartment concept introduces
relatively a lower-intensity residential typology
that does not achieve sufficient density to
support financial feasibility. The reliance
on stack parking for hotel further increases
project cost and limits overall performance. The
scenario was determined to be not considered
viable.

The podium apartment concept introduces a
high-intensity residential typology to increase
unit yield. However, the density achieved is
insufficient to offset higher construction costs
associated with podium development. The
scenario was determined to be not considered
viable.
1 1
2 2
3 3
3 4
68 Residential Flats
Open Space
68 Surface + Tuck-under Parking Spaces
144 Stacked Parking Stalls (For Hotel)
104 Residential Flats
Open Space
272 Podium Parking Spaces (For Residential
and Hotel)
Podium Building (104 Units, 58 du/ac)
4-story Apartments (68 Units, 38 du/ac)
Lease - Not Considered Viable
Sale - Not Considered Viable
Lease - Not Considered Viable
Sale - Not Considered Viable
1 4
2 1 2
3 Sustainable Pathways to Housing 77
78 South Bay Cities Restock
Site #8: 1215 W 132nd St
City of Gardena
Site #8 (Gardena-1215 W 132nd Street) is a 2.0-acre site located along Budlong Avenue at the edge of a singlefamily neighborhood in Gardena. The site is currently developed with industrial uses.

The development scenarios explore the transition
from an industrial site to a residential neighborhood
through three approaches with increasing intensity.

The scenarios range from for-sale townhomes to
medium-intensity housing and a higher-density wrap
apartment typology. All options create separation from
adjacent industrial uses to the north and west while
incorporating community open space.

Site
Sustainable Pathways to Housing 79
Hypothetical Redevelopment Scenario
Lease - Not Considered Viable
Sale - Likely Viable
KEY
1 2
Open Space
39 Townhome Units with Tuck-under Parking
2 1
• Model for conversion of industrial sites to
residential
• Adjacent and connected to local travel network
• Density at appropriate neighborhood scale
80 South Bay Cities Restock
Other Hypothetical Redevelopment Scenarios
Wrap Building (141 Units, 71 du/ac)
3/4-Story Apartments (90 Units, 45 du/ac)
Lease - Potentially Viable
Sale - Not Considered Viable
Lease - Not Considered Viable
Sale - Not Considered Viable
1 1
2 2
3 3
4 4
The three/four-story apartment concept
maintains a modest scale compatible with
adjacent single-family homes. The scenario was
determined to be potentially viable.

The wrap apartment concept introduces a
higher-intensity development pattern with fourstory blocks throughout the site. While unit yield increases, overall feasibility remains constrained
by market conditions and construction costs.

The scenario was determined to be not
considered viable.
4 2
3 1
1 2
3 4
90 Residential Flats
90 Surface + Tuck-Under Parking
Open Space
30’ deep Setback (Response to existing single141 Residential Flats 90 Surface + Tuck-Under Parking
24’ Wide Alley
177 Structured Garage Spaces
family home along Budlong Avenue)
Sustainable Pathways to Housing 81
82 South Bay Cities Restock
Site #9: 11387 Crenshaw Blvd
City of Inglewood
Site
Site #9 (Inglewood- 11387 Crenshaw Boulevard) is a

5.80-acre site located at the intersection of Imperial
Highway and Crenshaw Boulevard. The site currently
contains a Burlington store, CVS, T-Mobile, Nail and
Spa Salon, and a large surface parking lot.

The development scenarios explore two general
redevelopment approaches. One option retains the
existing Burlington store and introduces housing
within the surface parking area. The displaced parking
for existing retail store is accommodated in new
development through podium parking configuration.

The second option considers comprehensive
redevelopment of the entire site.

Sustainable Pathways to Housing 83
Hypothetical Redevelopment Scenario
Lease - Not Considered Viable
Sale - Not Considered Viable
KEY
1 4
4 2
3 3
4 1
2 3
4 279 Podium Parking Spaces (Residential + Retail)
166 Residential Flats
Surface Parking Retained
Existing Retail Retained
• Proximity to large retail destination and grocery
outlet
• Adjacent and connected to local travel network
• Variety of housing typologies
• Mixed-use development opportunity
84 South Bay Cities Restock
Other Hypothetical Redevelopment Scenarios
Comprehensive Redevelopment (417 Units, 72 du/ac)
Housing with Retail Frontage (151 Units, 33 du/ac)
Lease - Not Considered Viable
Sale - Not Considered Viable
Lease - Not Considered Viable
Sale - Not Considered Viable
1 1
2 2
3 3
4 4
5 This scenario introduces housing on portions of
the existing surface parking lot while retaining
retail frontage along Crenshaw Boulevard and
Imperial Highway, with for-sale townhomes on
the remaining site. The scenario was determined
to be not considered viable.

The comprehensive redevelopment scenario
introduces a wrap apartment typology together
with for-sale townhomes across the site. Lemoli
Avenue is extended through the site to connect
the adjacent single-family neighborhood to
Imperial Highway. The scenario was determined
to be not considered viable.
3 4
4 4
2 2
3 3
3 5
1 5
1 Existing Retail Retained
Mixed-Use Development (102 Residential Units)
49 3-story Townhomes
Open Space
125 Surface Parking
42 3-story Townhomes
375 Residential Units
Open Space
453 Structured Garage Spaces
Sustainable Pathways to Housing 85
86 South Bay Cities Restock
Site #10: 25841 Normandie Ave
LA County
Site
Site #10 (LA County- 25841 Normandie Avenue) is a

9.50-acre site located along Normandie Avenue. The
site currently contains a Kaiser Urgent Care facility
with supporting medical uses on one half of the site,
while the remaining area functions as a surface
parking lot serving the medical facility.

The development scenarios explore two approaches
for introducing housing on site. In both scenarios,
the existing surface parking area is developed for
housing. One option minimizes structured parking
by incorporating a mix of surface and tuck-under
parking, while the second provides structured
parking to support higher-intensity development. In
both scenarios, displaced medical facility parking is
accommodated through structured parking.

Sustainable Pathways to Housing 87
Hypothetical Redevelopment Scenario
Lease - Not Considered Viable
Sale - Not Considered Viable
KEY
1 1
1 2
2 4
3 1
2 693 Structured Parking Stalls (Hospital)
224 Residential Flats
3 4
262 Surface + Tuck-under Parking Spaces
Existing Urgent Care and Medical Uses
• Medical adjacent housing
• Large surface lot redevelopment
• Proximity to transit options
88 South Bay Cities Restock
Other Hypothetical Redevelopment Scenario
Wrap Typology (536 Units, 117 du/ac)
Lease - Not Considered Viable
Sale - Not Considered Viable
The wrap apartment concept increases unit yield
through a higher-density residential typology.

However, providing separate structured parking
for the medical facility and housing increases
project costs, constraining feasibility under
current market conditions. The scenario was
determined to be not considered viable.
1 1
2 2
3 3
4 4
4 5
5 6
6 536 Residential Flats
Open Space
Paseo
Existing Urgent Care and Medical Uses
573 Structured Parking Stalls (Residential)
693 Structured Parking Stalls (Hospital)
Sustainable Pathways to Housing 89
90 South Bay Cities Restock
Site #11: 14809 Hawthorne Blvd
City of Lawndale
Site #11 (Lawndale- 14809 Hawthorn Boulevard) is a

0.4-acre site located along Hawthorne Boulevard.

The site is in proximity to retail destinations and is
currently developed with a motel and surface parking.

The development scenarios explore two
redevelopment approaches. One option retains the
existing motel building and adapts it for residential
use, while the second considers comprehensive
redevelopment of the site. Site
Sustainable Pathways to Housing 91
Hypothetical Redevelopment Scenario
32 Senior Units
Lease - Likely Viable
Sale - Likely Viable
KEY
1 1 2
2 3
3 16 Surface Parking Retained
Motel to Units Conversion (12 Units)
• Motel to housing conversion
• Small infill project on commercial corridor
• Corridor intensification
92 South Bay Cities Restock
Other Hypothetical Redevelopment Scenarios
This scenario adapts the existing motel
building for residential use while developing the
remainder of the site with for-sale townhomes.

Limited market support constrained overall
feasibility. The scenario was determined to be
not considered viable.

The podium apartment concept introduces a
high-intensity residential typology fronting
Hawthorne Boulevard. Higher construction
costs, combined with market conditions,
constrained overall feasibility. The scenario was
determined to be not considered viable.

The for-sale townhome concept introduces a
lower-intensity residential typology across the
site. Limited market support constrained overall
feasibility. The scenario was determined to be
not considered viable.

Podium Building (32 Units, 80 du/ac)
Townhomes (10 Units, 25 du/ac)
Townhomes with Adaptive Reuse of Motel (15 Units, 38 du/ac) Lease - Not Considered Viable
Sale - Not Considered Viable
Lease - Not Considered Viable
Sale - Not Considered Viable
Lease - Not Considered Viable
Sale - Not Considered Viable
1 1
1 2
2 2
1 1
1 2
2 2
32 Residential Flats
32 Podium Parking Spaces
10 3-Story Townhome Units with Tuck-under
Parking
24’ Wide Driveway
12 Residential Units (Adaptive Reuse of
Existing Motel Building
5 3-Story Townhome Units with Tuck-under
Parking
Sustainable Pathways to Housing 93
94 South Bay Cities Restock
Site #12: 2347 Pacific Coast Highway
City of Lomita
Site
Site #12 (Lomita- 2347 Pacific Coast Highway) is a 1.70- acre site located along Pacific Coast Highway. The site currently contains six cottage homes with shared open
space for residents, along with several existing retail shops supported by surface parking.

The development scenarios explore two
redevelopment approaches. One option retains
the existing cottage homes and retail uses while
introducing additional housing density. The second
option considers comprehensive redevelopment of the
site.

Sustainable Pathways to Housing 95
Hypothetical Redevelopment Scenario
143 Residential Flats
Lease - Likely Viable
Sale - Not Considered Viable
KEY
1 2
1 2
177 Structured Garage Spaces
• Existing retail preservation and housing
integration
• Corridor intensification
• Proximity to neighborhood park
96 South Bay Cities Restock
Other Hypothetical Redevelopment Scenarios
Podium Apartments with Retail Retained (89 Units, 52 du/ac) Development with Retained Townhomes and Retail (11 Units, 16 du/ac) Lease - Not Considered Viable
Sale - Not Considered Viable
Lease - Not Considered Viable
Sale - Not Considered Viable
This scenario retains the existing cottage homes
and retail uses while introducing additional
housing. The limited development area does not
achieve sufficient density to support financial
feasibility under current market conditions. The
scenario was determined to be not considered
viable.

The podium apartment concept retains existing
retail building, while introducing residential
development. Higher construction costs
associated with the typology, combined with
market conditions, constrain overall feasibility.

The scenario was determined to be not
considered viable.
1 1
1 1
1 2
2 2
2 3
3 3
3 4
4 4
4 4
5 5
12 3-Story Townhomes with Tuck-under Parking
Open Space
6 Existing Townhomes Retained
Existing Retail Retained
32 Surface Parking Stalls Retained
89 Residential Flats
90 Podium Parking
Existing Retail Retained
32 Surface Parking Stalls Retained
Sustainable Pathways to Housing 97
98 South Bay Cities Restock
Site #13: 1022 Eubank Ave
Wilmington, City of LA
Site
Site #13 (Wilmington-1022 Eubank Avenue) is a 3-acre
site located adjacent to single-family neighborhoods
and industrial uses. A railway line runs along the
eastern edge of the site. The site currently contains
industrial uses, including an existing building with
notable architectural features.

The development scenarios explore two
redevelopment approaches. One option retains the
existing building and integrates new housing, while
the second considers comprehensive redevelopment
of the site. The scenarios test increasing levels of
residential intensity, ranging from lower-intensity
for-sale townhomes to higher-density wrap
apartment configurations. Across all options, careful
consideration is given to the transition between new
residential development and adjacent industrial uses.

Sustainable Pathways to Housing 99
Hypothetical Redevelopment Scenario
43 3-Story Townhomes with Tuck-under Parking
Lease - Not Considered Viable
Sale - Not Considered Viable
KEY
1 2
3 4
1 3
2 4
Open Space
Existing Building Retained for Housing (5 Units)
24’ Wide Driveway
• Industrial site redevelopment
• Adaptive reuse for housing
• Adjacent and connected to local travel network
100 South Bay Cities Restock
Other Hypothetical Redevelopment Scenarios
Wrap Typology (224 Units, 75 du/ac)
Wrap Typology with Retaining Existing Building (121 Units, 40 du/ac) Lease - Not Considered Viable
Sale - Not Considered Viable
Lease - Not Considered Viable
Sale - Not Considered Viable
The four-story wrap apartment concept retains
the existing building as a community amenity
while introducing higher-density residential
development. Market conditions and the cost
implications of the typology constrain overall
feasibility. The scenario was determined to be
not considered viable.

The comprehensive redevelopment scenario
introduces a four-story wrap apartment
typology across the site. While increasing
residential capacity, market conditions and
typology-related costs limit overall development
feasibility. The scenario was determined to be
not considered viable.
1 1
1 2
3 4
1 2
2 2
3 3
3 4
4 5
5 4 Community (Existing Building Adapted)
Open Space
121 Residential Flats
297 Structured Garage Parking
35 Surface Parking Spaces
224 Residential Flats
Open Space
237 Structured Garage Parking
24’ Wide Driveway
Sustainable Pathways to Housing 101
RESOLUTION NO. 26-113

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF CARSON, CALIFORNIA, ADOPTING THE SOUTH
BAY CITIES COUNCIL OF GOVERNMENTS’
REGIONAL EARLY ACTION PLANNING 2.0

COMMERCIAL REDEVELOPMENT TO HOUSING

STUDY AND DIRECTING STAFF TO PURSUE

APPLICABLE STUDY RECOMMENDATIONS
WHEREAS, the South Bay Cities Council of Governments (“SBCCOG”) obtained funding from the Southern California Association of Governments (“SCAG”) through the Regional Early Action Planning (“REAP”) 2.0 grant program to support housing implementation activities; and WHEREAS, building upon SBCCOG’s prior REAP 1.0 work, the REAP 2.0 Commercial Redevelopment to Housing Study (“Study”) provides a framework for advancing infill housing on underutilized commercial properties and identifies strategies to address barriers to housing production; and
WHEREAS, many South Bay communities have unique postwar suburban development patterns with an abundance of strip malls, regional malls, industrial parks, office centers, gas stations, car dealerships, and other uses that are experiencing a declining demand changing market conditions or potential future obsolescence; and
WHEREAS, the Study evaluates how underutilized commercial properties may provide opportunities for additional housing and identifies market and development considerations associated with the conversion or redevelopment of such properties for residential uses; and WHEREAS, the three participating cities ofCarson, Hawthorne, and Torrance, each selected two sites within their respective jurisdictions for detailed redevelopment feasibility analysis; and WHEREAS, the Study incorporated input from housing developers to better understand development feasibility and challenge associated with various housing typologies within the South Bay region; and WHEREAS, the Study provides the participating cities with practical concepts and technical guidance to support thoughtful redevelopment of underutilized commercial sites for housing and to inform future planning efforts in response to Regional Housing Needs Allocation (“RHNA”)requirements, including preparation for the 7th Cycle Housing Element; and
WHEREAS, as part of the REAP 2.0 study, City staff coordinated with the SBCCOG and its consultant team to identify and evaluate the potential redevelopment of the following two commercially zoned properties within the City of Carson from commercial uses to housing: 24209 Avalon Blvd. (Site 1) and 20700 Avalon Blvd. (Site 2); and WHEREAS, the Study identified six key takeaways regarding the potential housing redevelopment: 1. housing redevelopment follows market strength; 2. certain commercial site types are more attractive for conversion than others; 3. feasibility depends not only on density, but also on the relationship between housing and parking; 4. place, quality and design can expand site suitability and development feasibility; 5. affordable housing generally requires public intervention; and 6. regulatory certainty and development processes can significantly shape project outcomes; and
WHEREAS, the Study includes the following recommendations applicable to the City of Carson: 1. identifying Opportunity Sites by utilizing the Study’s site inventory containing the identified two potential sites to prioritize outreach to owners of large, low-intensity corridor parcels, mall outparcels and surface-parking-dominated identified as having high potential for conversion to housing; and 2. evaluate opportunities to expand workforce, veteran, and senior housing helping to address the gap between affordable and market-rate housing while supporting local economic growth; and
WHEREAS, proactive City engagement may facilitate early identification of opportunities, clarify applicable requirements, and support more efficient redevelopment processes; and WHEREAS, following review of the Study and its findings, and in coordination with SBCCOG, the City Council considered and now sees fit to adopt this Resolution No. 26-113 approving the Study as provided below; and
WHEREAS, all legal prerequisites to the adoption of this Resolution have occurred.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CARSON, CALIFORNIA, HEREBY FINDS, RESOLVES AND ORDERS AS FOLLOWS:

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

SECTION 2. Adoption of REAP 2.0 Commercial Redevelopment to Housing Study. The City Council hereby adopts the South Bay Cities Council of Governments (SBCCOG) REAP 2.0 Commercial Redevelopment to Housing Study as a planning and policy resource for the City of Carson and directs City staff to pursue, as appropriate, the Study recommendations applicable to the City of Carson, including continued evaluation of opportunities to facilitate housing redevelopment on the identified opportunity properties.

SECTION 3. Opportunity Sites and Further Evaluation. The City Council acknowledges the Study’s identification of 24209 Avalon Boulevard (Site 1), and 20700 Avalon Boulevard (Site 2) as commercially zoned sites evaluated for potential redevelopment to housing. The City Council directs staff to utilize the Study’s findings and site typology framework, as appropriate, in future outreach, planning, development review, and evaluation of potential housing opportunities, subject to applicable law, site-specific conditions, market conditions, and future discretionary approvals.

SECTION 4. Implementation and Process Evaluation. The City Council directs staff, as appropriate, to evaluate opportunities to implement the Study’s recommendations through appropriate planning, development, outreach, and process-streamlining efforts, including consideration of opportunities to facilitate workforce, veteran, senior, affordable, and market-rate housing where appropriate and consistent with applicable law and City planning policies.

SECTION 5. No Entitlement or Approval of Specific Development. Nothing in this Resolution shall be construed as approving or entitling any specific development project, changing zoning or land use designation or ministerial development approval. Any future development proposal shall be subject to all applicable laws, regulations, General Plan policies, zoning requirements, environmental review requirements, and required public review and discretionary approvals.

SECTION 6. SEVERABILITY. The City Council declares that should any provision, section, paragraph, sentence or word of this Resolution be rendered or declared invalid by any final court action in a court of competent jurisdiction or by reason of any preemptive legislation, the remaining provisions, sections, paragraphs, sentences or words of this Resolution as hereby adopted shall remain in full force and effect.

SECTION 7. EFFECTIVE DATE. This Resolution shall take effect immediately upon its adoption by the City Council.

SECTION 8. CERTIFICATION. The City Clerk shall certify to the adoption of the Resolution and enter it into the book of original Resolutions of the City of Carson. [Signatures on the following page]
PASSED, APPROVED and ADOPTED at a regular meeting of the City Council on this 6 th of October
2026.

APPROVED AS TO FORM: CITY OF CARSON:
__________________________ _______________________
Sunny K. Soltani, City Attorney Lula Davis-Holmes, Mayor ATTEST:
______________________________
Dr. Khaleah K. Bradshaw, City Clerk

STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.

CITY OF CARSON )
I, Dr. Khaleah K. Bradshaw, City Clerk of the City of Carson, California, hereby attest to and certify that the foregoing Resolution, being Resolution No. 26-113 passed and adopted by the Carson City Council at its meeting held on the 6th day of October, 2026, by the following roll call vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

RECUSED: COUNCIL MEMBERS:
_________________________________
Dr. Khaleah K. Bradshaw, City Clerk
01007.0005 2198692.1 5
CITY OF CARSON 701 East Carson Street
Report to Honorable Mayor and City Council
Tuesday, October 6, 2026, 5:00 PM
CONSENT 24.

To: Honorable Mayor and City Council
From: John Raymond, Executive Director CRA Administration Subject: CONSIDER APPROVAL OF MEASURE M FUNDING AGREEMENT, MULTI-YEAR SUBREGIONAL

PROGRAMS, WITH LOS ANGELES COUNTY METROPOLITAN TRANSPORTATION AUTHORITY IN THE AMOUNT OF $8,000,000 FOR THE CONSTRUCTION OF LENARDO DRIVE IN THE CITY OF CARSON AND RESOLUTION NO. 26-112, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARSON AMENDING THE CAPITAL IMPROVEMENT PROJECTS BUDGET IN THE AMOUNT OF $8,000,000 TO INCORPORATE THE GRANT INTO PROJECT NO. 1617, LENARDO DRIVE (CITY COUNCIL) I. SUMMARY
This Measure M Funding Agreement, Multi-Year Subregional projects made by the Los Angeles County Metropolitan Transportation Authority (LA Metro) to the City of Carson in the amount of $8,000,000 is for the construction of Lenardo Drive. The Budget Resolution appropriates the funds into this year's Capital Improvement Program budget.

II. RECOMMENDATION
TAKE take the following actions:

1. APPROVE the Measure M Funding Agreement, Multi-Year Subregional Programs, with the Los Angeles County Metropolitan Transportation Authority (LA Metro) in the amount of $8,000,000 for the Lenardo Drive Project; and,

2. AUTHORIZE the Mayor to execute the Agreement following approval as to form by the City Attorney; and,

3. WAIVE further reading and ADOPT Resolution No. 26-112, "A RESOLUTION OF THE CITY OF CARSON CITY COUNCIL AMENDING THE FISCAL YEAR 2026-27 BUDGET IN THE CAPITAL IMPROVEMENT PROJECTS FUND TO RECEIVE $8,000,000 FOR THE LENARDO DRIVE PROJECT, PROJECT NO. 1617." III. ALTERNATIVES
TAKE another action the City Council deems appropriate.

IV. BACKGROUND
This Measure M Funding Agreement, Multi-Year Subregional projects made by the Los Angeles County Metropolitan Transportation Authority (LA Metro) to the City of Carson in the amount of $8,000,000 is for the construction of Lenardo Drive (the historical name for what is currently named Stadium Way in the City of Carson), a nearly one-mile public street that is being constructed/reconstructed by the Carson Reclamation Authority (“CRA”) to facilitate the development of the 157 acre former Cal Compact Landfill, one of the largest undeveloped parcels on the 405 Freeway in LA County and a critical property for the economic development of Carson.

LA Metro’s Board authorized the grant on September 25, 2025. The scope of the LA Metro-funded work is Asphalt Paving, Landscaping and Irrigation, and Traffic Signals and Streetlights for the Lenardo Drive project in Carson. While the award from Metro is $8,000,000, this is a $60.4 million contractor scope of work with a $73.3 million overall project cost.

The CRA was created to undertake work and assume the environmental liability on behalf of the City in contaminated-land projects and is a necessary tool for the City to be able to complete these projects. All public infrastructure construction work on the site is performed by the CRA and not the City. As such, the CRA has undertaken the design and entitlement of Lenardo Drive, including the civil engineering design including grading, hydrology, stormwater, street improvement plans, striping and signaling, and streetlights; median island landscaping, geotechnical and structural foundations; and utility design. Utilities include Southern California Edison, Southern California Gas, Spectrum, AT&T, California Water Company (domestic water), West Basin Municipal Water District (recycled water), and LA County Public Works (sewer and storm drain). Construction began on June 26, 2025.

All the utility plans for the site (which travel through the public street) were redesigned based on changes to the project. The previous owner did not fully complete all the utility design and approval before they conveyed the site to the CRA in 2015, and everything that was completed had to be reapproved based on changes based on the Cell 3, 4, and 5 site design to incorporate its impacts on traffic and street design. With logistics being significant land uses in the new site plan, the entire project underwent another Specific Plan amendment, and several changes were made to Lenardo and Stamps Drives including driveway modifications on both sides of Lenardo; measures to limit or prohibit truck traffic from entering from or exiting to Avalon Boulevard; reducing median width at certain intersections to accommodate truck movements, which had a spillover effect on both streetlight location and landscaping; widening Stamps Drive to add an additional left turn onto Del Amo; and the installation of additional storm drain inlets on the Cells 3, 4, and 5 side of Lenardo due to the changed hydrology.

The grant will be reimbursed to the City on a quarterly basis by LA Metro for costs tied to the scope of work.

The agreement anticipated disbursements over six quarters.

V. FISCAL IMPACT
This grant is for $8,000,000, to be reimbursed to the City over the remaining work on the Lenardo Drive project. The grant will be reimbursed to the City on a quarterly basis by LA Metro. The agreement anticipated disbursements over six quarters.

VI. EXHIBITS

1. Measure M Funding Agreement, Multi-Year Subregional Programs,

2. Resolution No. 26-112 - Metro Grant
Attachments
MM5507.23-FA with attachment
Resolution No. 26-112 - Metro Grant
FTIP #: LA9919585
Subregion ID: South Bay
Project ID#: MM5507.23
FA# 9200000000M550723
Rev: 05.20.2025 1 Measure M Funding Agreement – MSP

MEASURE M FUNDING AGREEMENT

MULTI-YEAR SUBREGIONAL PROGRAMS
This Funding Agreement (“FA”) is made and entered into effective as of July 21, 2026 (“Effective Date”), and is by and between the Los Angeles County Metropolitan Transportation Authority ("LACMTA") and City of Carson ("GRANTEE") for Lenardo Drive Street Construction, LACMTA Project ID# MM5507.23 and FTIP# LA9919585, (the "Project"). This Project is eligible for funding under Line 63 of the Measure M Expenditure Plan.

WHEREAS, LACMTA adopted Ordinance #16-01, the Los Angeles County Traffic Improvement Plan, on June 23, 2016 (the “Ordinance”), which Ordinance was approved by the voters of Los Angeles County on November 8, 2016 as “Measure M” and became effective on July 1, 2017.

WHEREAS, the funding set forth herein is intended to fund Construction of the Project.

WHEREAS, the LACMTA Board, at its September 25, 2025 meeting, programmed $8,000,000 in Measure M Funds to GRANTEE for Construction, subject to the terms and conditions contained in this FA; and
WHEREAS, the Funds are currently programmed as follows: $8,000,000 in Measure M Funds in Fiscal Year (FY) 2025-26. The total designated for Construction of the Lenardo Drive Street Construction is $8,000,000.

NOW, THEREFORE, the parties hereby agree as follows:

The terms and conditions of this FA consist of the following and each is incorporated by reference herein as if fully set forth herein:

1. Part I – Specific Terms of the FA

2. Part II – General Terms of the FA

3. Attachment A – Project Funding

4. Attachment B – Expenditure Plan- Cost & Cash Flow Budget

5. Attachment C – Scope of Work

6. Attachment D – Project Reporting and Expenditure Guidelines

7. Attachment D-1 – Intentionally omitted

8. Attachment D-2 – Quarterly Progress/Expenditure Report

9. Attachment E – Federal Transportation Improvement Program (FTIP) Sheet

10. Attachment F – Bond Requirements

11. Attachment G – List of Procurement Documents

12. Any other attachments or documents referenced in the above documents In the event of a conflict, the Special Grant Conditions, if any, shall prevail over the Specific Terms of the FA and any attachments and the Specific Terms of the FA shall prevail over the General Terms of the FA.

FTIP #: LA9919585
Subregion ID: South Bay
Project ID#: MM5507.23
FA# 9200000000M550723
Rev: 05.20.2025 2 Measure M Funding Agreement MSP
IN WITNESS WHEREOF, the parties have caused this FA to be executed by their duly authorized representatives as of the dates indicated below:

LACMTA:

LOS ANGELES COUNTY METROPOLITAN TRANSPORTATION AUTHORITY By: ________________________________________ Date: ____________________ Stephanie Wiggins
Chief Executive Officer
APPROVED AS TO FORM:

Dawyn R. Harrison
County Counsel
By: ________________________________________ Date: ____________________ Deputy
GRANTEE:

City of Carson
By: _______________________________________ Date: ____________________ Lula Davis-Holmes
City Mayor
APPROVED AS TO FORM:

Sunny K. Soltani
City Attorney
By: _______________________________________ Date: ____________________ ATTEST:

By: _______________________________________ Date: ____________________ Dr. Khaleah K. Bradshaw
City Clerk
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FTIP #: LA9919585
Subregion ID: South Bay
Project ID#: MM5507.23
FA# 9200000000M550723
Rev: 05.20.2025 3 Measure M Funding Agreement – MSP
PART I

SPECIFIC TERMS OF THE FA

1. Title of the Project (the "Project"): Lenardo Drive Street Construction – Construction of the Project. LACMTA Project ID# MM5507.23, FTIP# LA9919585.

2. Grant Funds:

2.1 Programmed Funds for this Project consist of Measure M Funds.

2.2 To the extent the Measure M Funds are available; LACMTA shall make to GRANTEE a grant of the Measure M funds in the amount of $8,000,000 (the “Funds”) for the Project. LACMTA Board of Directors’ action of September 25, 2025 granted the Measure M Funds for the Project. The Funds are programmed over One (1) year for Fiscal Year (FY) 2025-26.

3. This grant shall be paid on a reimbursement basis. GRANTEE must provide the appropriate supporting documentation with the Quarterly Progress/Expenditure Report.

GRANTEE Funding Commitment, if applicable, must be spent in the appropriate proportion to the Funds with each quarter’s expenditures. LACMTA will withhold five percent (5%) of eligible expenditures per invoice as retention pending an audit of expenditures and completion of scope of work.

4. Attachment A the “Project Funding” documents all sources of funds programmed for the Project as approved by LACMTA. The Project Funding includes the total programmed funds for the Project, including the Funds programmed by LACMTA and, if any, the GRANTEE Funding Commitment of other sources of funding. The Project Funding also includes the fiscal years in which all the funds for the Project are programmed. The Funds are subject to adjustment by subsequent LACMTA Board Action.

5. Attachment B is the Expenditure Plan- Cost & Cash Flow Budget (the "Expenditure Plan"). It is the entire proposed cash flow, the Budget and financial plan for the Project, which includes the total sources of all funds programmed to the Project, including GRANTEE and other entity funding commitments, if any, for this Project as well as the fiscal year and quarters the Project funds are anticipated to be expended. GRANTEE shall update the Expenditure Plan annually, no later than December 31, and such update shall be submitted to LACMTA’s Senior Executive Officer managing the Measure M Multi-Year Subregional Program in writing. If the LACMTA’s Senior Executive Officer managing the Measure M Multi-Year Subregional Program concurs with such updated Expenditure Plan in writing, Attachment B shall be replaced with the new Attachment B setting forth the latest approved Expenditure Plan. Payments under this FA shall be consistent with Attachment B as revised from time to time. Any change to the final milestone date must be made by a fully executed amendment to this FA.

6. Attachment C is the “Scope of Work”. The GRANTEE shall complete the Project as described in the Scope of Work. This Scope of Work shall include a detailed description of the Project and the work to be completed, including anticipated Project milestones and a schedule FTIP #: LA9919585
Subregion ID: South Bay
Project ID#: MM5507.23
FA# 9200000000M550723
Rev: 05.20.2025 4 Measure M Funding Agreement – MSP
consistent with the lapsing policy in Part II, Section 9, and a description of the Project limits, if the Project is a capital project. No later than December 31 of each year, GRANTEE shall notify LACMTA if there are any changes to the final milestone date set forth in the schedule or any changes to the Scope of Work. If LACMTA agrees to such changes, the parties shall memorialize such changes in an amendment to this FA. Work shall be delivered in accordance with the schedule and scope identified in this FA unless otherwise agreed to by the parties in writing in an amendment to this FA. If GRANTEE fails to meet milestones or fails to deliver the Project, LACMTA will have the option to suspend or terminate the FA for default as described in Part II, Sections 2, 9, 10 and 11 herein below. To the extent interim milestone dates are not met but GRANTEE believes and can show documentation acceptable to LACMTA supporting GRANTEE’s ability to make up the time so as to not impact the final milestone date, GRANTEE shall notify LACMTA of such changes in its Quarterly Progress/Expenditure Reports and such interim milestone dates will automatically be amended to the latest interim milestone dates provided in the Quarterly Progress/Expenditure Reports Attachment D-2. In no event can the final milestone date be amended by a Quarterly Progress/Expenditure Report.

7. No changes to this FA, including but not limited to the Funds, and any other source of funds from LACMTA in the Project Funding, Expenditure Plan or the Scope of Work shall be allowed without an amendment to the original FA, approved and signed by both parties.

8. Attachment D is the “Project Reporting & Expenditure Guidelines”. GRANTEE shall complete the “Quarterly Progress/Expenditure Report”. The Quarterly Progress/Expenditure Report is attached to this FA as Attachment D-2 in accordance with Attachment D – Project Reporting and Expenditure Guidelines.

9. Attachment E, the "FTIP PROJECT SHEET (PDF)", is required to ensure that the Project is programmed correctly in the most up-to-date FTIP document. The FTIP PROJECT SHEET (PDF) can be found in ProgramMetro FTIP database under the reports section at https://programmetro.ecointeractive.com/secure2/login.asp. All projects that receive funding through Measure M must be programmed into the FTIP, which includes locally funded regionally significant projects for information and air quality modeling purposes. GRANTEE shall review the Project in ProgramMetro each year and update or correct the Project information as necessary during a scheduled FTIP amendment or adoption. GRANTEE will be notified of amendments and adoptions to the FTIP via e-mail. Changes to the FTIP through ProgramMetro should be made as soon as possible after GRANTEE is aware of any changes to the Project, but no later than October 1 of the year the change or update is effective. Should GRANTEE fail to meet this date, it may affect GRANTEE's ability to access funding, delay the Project and may ultimately result in the Funds being lapsed.

10. LACMTA anticipates it may need to avail itself of lower cost bonds or other debt, the interest on which is tax exempt for federal tax purposes (collectively, the “Bonds") to provide at least a portion of its funding commitments under this Agreement to GRANTEE.

GRANTEE shall ensure that the expenditure of the Funds disbursed to GRANTEE does not jeopardize the tax-exemption of the interest, as specified in the Bond Requirements attached as Attachment F to this Agreement. GRANTEE agrees to provide LACMTA with progress reports, expenditure documentation, and any other documentation as reasonably requested by LACMTA and necessary for LACMTA to fulfill its responsibilities as the grantee or FTIP #: LA9919585
Subregion ID: South Bay
Project ID#: MM5507.23
FA# 9200000000M550723
Rev: 05.20.2025 5 Measure M Funding Agreement – MSP
administrator or bond issuer of the Funds. With regard to LACMTA debt financing to provide any portion of the Funds, GRANTEE shall take all reasonable actions as may be requested of it by LACMTA's Project Manager for the Project, to assist LACMTA in demonstrating and maintaining over time, compliance with the relevant sections of the Federal Tax Code to maintain such Bonds’ tax status.

11. GRANTEE shall comply with the “Special Grant Conditions” attached as Attachment H, if any.

12. No changes to the (i) Grant amount, (ii) Project Funding, (iii) the Scope of Work (except as provided herein), (iv) Final milestone date or (v) Special Grant Conditions, shall be allowed without a written amendment to this FA, approved and signed by the LACMTA Chief Executive Officer or his/her designee and GRANTEE. Modifications that do not materially affect the terms of this FA, such as redistributing Funds among existing budget line items or nonmaterial schedule changes must be formally requested by GRANTEE and approved by LACMTA in writing. Non-material changes are those changes which do not affect the grant amount or its schedule, Project Funding, or the Scope of Work, including the Work schedule.

13. LACMTA's Address:

Los Angeles County Metropolitan Transportation Authority One Gateway Plaza
Los Angeles, CA 90012
Attention: Minji Kwon
LACMTA Project Manager
Mail Stop: 99-18-2
Phone: (213) 922-4164
Email: [email protected]

14. GRANTEE's Address:

City of Carson
701 East Carson Street
Carson, CA 90745
John Raymond
Executive Director
Phone: (310) 952-1773
Email: [email protected]

FTIP #: LA9919585
Subregion ID: South Bay
Project ID#: MM5507.23
FA# 9200000000M550723
Rev: 05.20.2025 6 Measure M Funding Agreement – MSP

PART II

GENERAL TERMS OF THE FA

1. TERM
The term of this FA shall commence on the Effective Date of this FA, and shall terminate upon the occurrence of all of the following, unless terminated earlier as provided herein: (i) the agreed upon Scope of Work has been completed; (ii) all LACMTA audit and reporting requirements have been satisfied; and (iii) the final disbursement of the Funds has been made to GRANTEE. All eligible Project expenses as defined in the Reporting and Expenditure Guidelines (Attachment D), incurred after the FA Effective Date shall be reimbursed in accordance with the terms and conditions of this FA unless otherwise agreed to by the parties in writing.

2. SUSPENSION OR TERMINATION
Should LACMTA determine there are insufficient Measure M Funds available for the Project, LACMTA may suspend or terminate this FA by giving written notice to GRANTEE at least thirty (30) days in advance of the effective date of such suspension or termination. If a Project is suspended or terminated pursuant to this section, LACMTA will not reimburse GRANTEE any costs incurred after that suspension or termination date, except those costs necessary to: (i) return any facilities modified by the Project construction to a safe and operable state; and (ii) suspend or terminate the construction contractor’s control over the Project. LACMTA’s share of these costs will be consistent with the established funding percentages outlined in this FA.

3. INVOICE BY GRANTEE
Unless otherwise stated in this FA, the Quarterly Progress/Expenditure Report, with supporting documentation of expenses, Project progress and other documents as required, which has been pre-approved by LACMTA, all as described in Part II, Section 6.1 of this FA, shall satisfy LACMTA invoicing requirements. Grantee shall only submit for payment the LACMTA pre-approved Quarterly Progress/Expenditure Report Packets to the LACMTA Project Manager at the email address shown in Part I and to LACMTA Accounts Payable Department as shown below.

Submit invoice with supporting documentation to:

[email protected] (preferable)
or
mail to:

Los Angeles County Metropolitan Transportation Authority Accounts Payable
P. O. Box 512296
Los Angeles, CA 90051-0296
All invoice material must contain the following information:

Re: LACMTA Project ID# MM5507.23 and FA# 9200000000M550723 Minji Kwon; Mail Stop 99-18-2
FTIP #: LA9919585
Subregion ID: South Bay
Project ID#: MM5507.23
FA# 9200000000M550723
Rev: 05.20.2025 7 Measure M Funding Agreement – MSP

4. USE OF FUNDS

4.1 GRANTEE shall utilize the Funds to complete the Project as described in the Scope of Work and in accordance with the Reporting and Expenditure Guidelines, the specifications for use for the transportation purposes described in the Ordinance, the Guidelines and the Multi-Year Subregional Programs Administrative Procedures.

4.2 Attachment C shall constitute the agreed upon Scope of Work between LACMTA and GRANTEE for the Project. The Funds, as granted under this FA, can only be used towards the completion of the Scope of Work detailed in Attachment C.

4.3 GRANTEE shall not use the Funds to substitute for any other funds or projects not specified in this FA. Further, GRANTEE shall not use the Funds for any expenses or activities above and beyond the approved Scope of Work (Attachment C) without an amendment to the FA approved and signed by the LACMTA Chief Executive Officer or his Designee. To the extent LACMTA provides GRANTEE with bond or commercial paper proceeds, such Funds may not be used to reimburse for any costs that jeopardize the tax exempt nature of such financings as reasonably determined by LACMTA and its bond counsel.

4.4 GRANTEE must use the Funds in the most cost-effective manner. If GRANTEE intends to use a consultant or contractor to implement all or part of the Project, LACMTA requires that such activities be procured in accordance with GRANTEE’s contracting procedures and consistent with State law as appropriate. GRANTEE will also use the Funds in the most cost-effective manner when the Funds are used to pay “in-house” staff time. This effective use of funds provision will be verified by LACMTA through ongoing Project monitoring and through any LACMTA interim and final audits.

4.5 GRANTEE’S employee, officers, councilmembers, board member, agents, or consultants (a “GRANTEE Party”) are prohibited from participating in the selection, award, or administration of a third-party contract or sub-agreement supported by the Funds if a real or apparent conflict of interest would be involved. A conflict of interest would include, without limitation, an organizational conflict of interest or when any of the following parties has a financial or other interest in any entity selected for award: (a) a GRANTEE Party (b) any member of a GRANTEE Party’s immediate family, (c) a partner of a GRANTEE Party; (d) any organization that employs or intends to employ any of the above. This conflict of interest provision will be verified by LACMTA through on-going Project monitoring and through any LACMTA interim and final audits.

4.6 If a facility, equipment (such as computer hardware or software), vehicle or property, purchased or leased using the Funds, ceases to be used for the proper use as originally stated in the Scope of Work, or the Project is discontinued, any Funds expended for that purpose must be returned to LACMTA as follows: GRANTEE shall be required to repay the Funds in proportion to the useful life remaining and in an equal proportion of the grant to GRANTEE Funding Commitment ratio.

4.7 If the Project requires the implementation of an Intelligent Transportation Systems (“ITS”) project, GRANTEE shall ensure the Project is consistent with FTIP #: LA9919585
Subregion ID: South Bay
Project ID#: MM5507.23
FA# 9200000000M550723
Rev: 05.20.2025 8 Measure M Funding Agreement – MSP
the Regional ITS Architecture. Attachment G, the Los Angeles County Regional ITS Architecture (CONNECT-IT) Consistency Self-Certification Form, must be completed and signed for planned ITS projects and/or ITS projects that use local, state, or federal funds programmed or administered through LACMTA. Refer to www.laconnect-it.com to find information about the CONNECT-IT Service Packages.

4.8 If any parking facilities are designed and/or constructed using the Funds, GRANTEE shall coordinate with LACMTA parking program staff (see www.metro.net for staff listing) in the planning, design and management of the facility and shall ensure that its implementation is consistent with the LACMTA adopted parking policy.

For the parking policy, see
http://media.metro.net/projects_studies/call_projects/images/09%20Appendix%20D%20Pa rking%20Policy.pdf

5. REIMBURSEMENT OF FUNDS
Funds will be released on a reimbursement basis in accordance with invoices submitted in support of the Quarterly Progress/Expenditure Reports. LACMTA will make all disbursements electronically unless an exception is requested in writing. Reimbursements via Automated Clearing House (ACH) will be made at no cost to GRANTEE. GRANTEE must register in LACMTA’s iSupplier portal and submit an application before grant payments can be made.

The link to the portal can be found at http://media.metro.net/uploads/EBB/Vendor Portal Registration.pdf. GRANTEE must provide detailed supporting documentation with its Quarterly Progress/Expenditure Reports. GRANTEE Funding Commitment, if any, must be spent in direct proportion to the Funds with each quarter’s payment.

6. REPORTING AND AUDIT REQUIREMENTS/PAYMENT ADJUSTMENTS

6.1 GRANTEE shall submit the draft of Quarterly Progress/Expenditure Report (Attachment D-2) within sixty (60) days after the close of each quarter on the last day of the months November, February, May and August to the LACMTA Project Manager for review and pre-approval of the applicable report. LACMTA Project Manager shall review and respond in writing to the draft Quarterly Progress/Expenditure Report within thirty (30) calendar days from receipt. Grantee shall submit the LACMTA pre-approved Quarterly Progress/Expenditure Report no later than five (5) days after receipt of LACMTA’s written approval. Should GRANTEE fail to submit either the draft or pre-approved reports within five (5) days of the due date and/or submit incomplete reports, LACMTA will not reimburse GRANTEE until the completed required reports are received, reviewed, and approved. The Quarterly Progress/Expenditure Reports shall include all appropriate documentation (such as contractor invoices, timesheets, receipts, etc.), and any changes to interim milestone dates that do not impact the final milestone date. All supporting documents must include a clear justification and explanation of their relevance to the Project. If no activity has occurred during a particular quarter, GRANTEE will still be required to submit the Quarterly Progress/Expenditure Reports indicating no dollars were expended that quarter. If a request for reimbursement exceeds $500,000 in a single month, then GRANTEE can submit such an invoice once per month with supporting documentation. Expenses that are not invoiced to LACMTA Accounts Payable FTIP #: LA9919585
Subregion ID: South Bay
Project ID#: MM5507.23
FA# 9200000000M550723
Rev: 05.20.2025 9 Measure M Funding Agreement – MSP
within ninety (90) days after the lapsing date specified in Part II, Section 9.1 below are not eligible for reimbursement.

6.2 GRANTEE shall submit the Project expenditure estimates for the subsequent fiscal year by February of each year. LACMTA will use the estimates to determine the Project budget for the upcoming fiscal year.

6.3 LACMTA, and/or its designee, shall have the right to conduct audits of the Project as deemed appropriate, such as financial and compliance audits, interim audits, preaward audits, performance audits and final audits. LACMTA will commence a final audit within six (6) months of receipt of acceptable final invoice, provided the Project is ready for final audit (meaning all costs and charges have been paid by GRANTEE and invoiced to LACMTA, and such costs, charges, invoices and proof of payments are properly documented and summarized in the accounting records to enable an audit without further explanation or summarization including actual indirect cost rates for the period covered by the FA period under review). GRANTEE agrees to establish and maintain proper accounting procedures and cash management records and documents in accordance with Generally Accepted Accounting Principles (GAAP). GRANTEE shall reimburse LACMTA for any expenditure not in compliance with the Scope of Work and/or not in compliance with other terms and conditions of this FA. The allowability of GRANTEE’s own expenditures and contractors, consultants and suppliers expenditures submitted to LACMTA through GRANTEE’s Quarterly Progress/Expenditures shall be in compliance with Federal Acquisition Regulation (FAR) Subpart 31 and/or 2 CFR Subtitle A, Chapter II, Part 20 (Uniform Guidance), whichever is applicable. Findings of the LACMTA audit are final. When LACMTA audit findings require GRANTEE to return monies to LACMTA, GRANTEE agrees to return the monies within thirty (30) days after the final audit is sent to GRANTEE.

6.4 GRANTEE’s records shall include, without limitation, accounting records, written policies and procedures, contract files including procurement records, original estimates, correspondence, change order files (including documentation covering negotiated settlements), invoices, and any other supporting evidence deemed necessary by LACMTA to substantiate charges related to the Project (all collectively referred to as “records”). Such records shall be open to inspection and subject to audit and reproduction by LACMTA auditors or authorized representatives to the extent deemed necessary by LACMTA to adequately permit evaluation of expended costs. Such records subject to audit shall also include, without limitation, those records deemed necessary by LACMTA to evaluate and verify, direct and indirect costs, (including overhead allocations) as they may apply to costs associated with the Project. These records must be retained by GRANTEE for three years following final payment under this Agreement. Payment of retention amounts shall not occur until after the LACMTA’s final audit is completed. For further clarity regarding the types of procurement records that the GRANTEE shall retain and provide upon request, please see Attachment G.

6.5 GRANTEE shall cause all contractors to comply with the requirements of Part II, Section 6, paragraphs 6.3 and 6.4 above. GRANTEE shall cause all contractors to cooperate fully in furnishing or in making available to LACMTA all records deemed necessary by LACMTA auditors or authorized representatives related to the Project.

FTIP #: LA9919585
Subregion ID: South Bay
Project ID#: MM5507.23
FA# 9200000000M550723
Rev: 05.20.2025 10 Measure M Funding Agreement – MSP

6.6 LACMTA or any of its duly authorized representatives, upon reasonable written notice, shall be afforded access to all GRANTEE’s records and its contractors related to the Project, and shall be allowed to interview any employee of GRANTEE and its contractors through final payment to the extent reasonably practicable.

6.7 LACMTA or any of its duly authorized representatives, upon reasonable written notice, shall have access to the offices of GRANTEE and its contractors, shall have access to all necessary records, including reproduction, at no charge to LACMTA, and shall be provided adequate and appropriate work space in order to conduct audits in compliance with the terms and conditions of this FA.

6.8 When business travel associated with the Project requires use of a vehicle, the mileage incurred shall be reimbursed at the mileage rates set by the Internal Revenue Service (IRS), as indicated in the United States General Services Administration Federal Travel Regulation, Privately Owned Vehicle Reimbursement Rates.

6.9 GRANTEE shall be responsible for ensuring all contractors/ subcontractors for the Project comply with the terms of the Ordinance, the Guidelines and the Multi-Year Subregional Programs Administrative Procedures. GRANTEE shall cooperate with LACMTA Management Audit Services Department such that LACMTA can meet its obligations under the Ordinance, the Guidelines and the Multi-Year Subregional Programs Administrative Procedures.

6.10 GRANTEE shall certify each invoice by reviewing all contractor/subcontractor costs and maintaining internal control to ensure that all expenditures are allocable, allowable and reasonable and in accordance with OMB A-87 or FAR subpart 31 and 2 CFR Subtitle A, Chapter II, part 225, (whichever is applicable) and the terms and conditions of this FA.

6.11 GRANTEE shall also certify final costs of the Project to ensure all costs are in compliance with OMB A-87 or FAR subpart 31 and 2 CFR Subtitle A, Chapter II, part 225, (whichever is applicable) and the terms and conditions of this FA.

6.12 In addition to LACMTA’s other remedies as provided in this FA, LACMTA may withhold the Funds if the LACMTA audit has determined that GRANTEE failed to comply with the Scope of Work (such as misusing Funds or failure to return Funds owed to LACMTA in accordance with LACMTA audit findings) and /or is severely out of compliance with other terms and conditions as defined by this FA, including the access to records provisions of Part II, Section 6.

7. GRANT
This is a one-time only grant of the Measure M Funds subject to the terms and conditions agreed to herein. This grant does not imply nor obligate any future funding commitment on the part of LACMTA.

FTIP #: LA9919585
Subregion ID: South Bay
Project ID#: MM5507.23
FA# 9200000000M550723
Rev: 05.20.2025 11 Measure M Funding Agreement – MSP

8. SOURCES AND DISPOSITION OF FUNDS

8.1 The obligation for LACMTA to grant the Funds for the Project is subject to sufficient Funds being made available for the Project by the LACMTA Board of Directors. If such Funds are not made available as anticipated from Measure M Program revenues, LACMTA will have the right to adjust the cash flow accordingly until such funds become available. LACMTA shall have no obligation to provide any other funds for the Project, unless otherwise agreed to in writing by LACMTA.

8.2 GRANTEE shall fully fund and contribute the GRANTEE Funding Commitment, if any is identified in the Project Funding (Attachment A), towards the cost of the Project. If the Funds identified in Attachment A are insufficient to complete the Project, GRANTEE agrees to secure and provide such additional non-LACMTA programmed funds necessary to complete the Project.

8.3 GRANTEE shall be responsible for any and all cost overruns for the Project pursuant to Section 8.2.

8.4 GRANTEE shall be eligible for the Funds up to the grant amount specified in Part I, Section 2 of this FA subject to the terms and conditions contained herein.

Any Funds expended by GRANTEE prior to the Effective Date of this FA shall not be reimbursed nor shall they be credited toward the GRANTEE Funding Commitment requirement, without the prior written consent of LACMTA. GRANTEE Funding Commitment dollars expended prior to the year the Funds are awarded shall be spent at GRANTEE’s own risk, or as delineated in a Letter of No Prejudice executed by the prospective GRANTEE and LACMTA.

8.5 If GRANTEE receives outside funding for the Project in addition to the Funds identified in the Project Funding and the Expenditure Plan at the time this grant was awarded, this FA shall be amended to reflect such additional funding. If, at the time of final invoice or voucher, funding for the Project (including the Funds, GRANTEE Funding Commitment, and any additional funding) exceeds the actual Project costs, then the cost savings shall be applied in the same proportion as the sources of funds from each party to this FA as specified in the Project Funding and both the Funds and GRANTEE Funding Commitment required for the Project shall be reduced accordingly. LACMTA shall have the right to use any cost savings associated with the Funds at its sole discretion, including, without limitation, programming the unused Funds to another project or to another grantee within the subregion in accordance with the Ordinance, the Guidelines and the Multi-Year Subregional Programs Administrative Procedures. If, at the time of final voucher, it is determined that GRANTEE has received Funds in excess of what GRANTEE should have received for the Project, GRANTEE shall return such overage to LACMTA within 30 days from final voucher.

9. TIMELY USE OF FUNDS / REPROGRAMMING OF FUNDS

9.1 GRANTEE must demonstrate timely use of the Funds by:

FTIP #: LA9919585
Subregion ID: South Bay
Project ID#: MM5507.23
FA# 9200000000M550723
Rev: 05.20.2025 12 Measure M Funding Agreement – MSP
(i) Executing this FA within ninety (90) days of receiving formal transmittal of the FA from LACMTA, or by December 31 of the first Fiscal Year in which the Funds are programmed, whichever date is later; and
(ii) Executing Contracts for Construction or Capital purchase within twelve (12) months from the date of completion of design; and (iii) Delivering Work in accordance with schedule; changes to the schedule will require an Amendment to Attachment C to reflect updated milestone dates. Meeting the Project milestone due dates as agreed upon by the LACMTA and GRANTEE in
Attachment C of this FA; and
(iv) Submitting the Quarterly Progress/Expenditure Reports as described in Part II, Section 6.1 of this FA; and
(v) Expending the Funds granted under this FA for allowable costs within three years or 36 months from July 1 of the Fiscal Year in which the Funds are programmed, unless otherwise stated in this FA. All Funds programmed for FY 2025-26 are subject to lapse by June 30, 2028.

9.2 In the event that the timely use of the Funds is not demonstrated as described in Part II, Section 9.1 of this FA, the Project will be reevaluated by LACMTA as part of its Annual Update process and the Funds may be reprogrammed to another project by the LACMTA Board of Directors in accordance with the Ordinance, the Guidelines and the MultiYear Subregional Programs Administrative Procedures. In the event that all the Funds are reprogrammed, this FA shall automatically terminate.

10. DEFAULT
A Default under this FA is defined as any one or more of the following: (i) GRANTEE fails to comply with the terms and conditions contained herein; and/or (ii) GRANTEE fails to perform satisfactorily or make material changes, as determined by LACMTA at its sole discretion, to the Expenditure Plan, the Scope of Work, or the Project Funding without LACMTA’s prior written consent or approval as provided herein.

11. REMEDIES

11.1 In the event of a Default by GRANTEE, LACMTA shall provide written notice of such Default to GRANTEE with a 30-day period to cure the Default. In the event GRANTEE fails to cure the Default, or commit to cure the Default and commence the same within such 30-day period to the satisfaction of LACMTA, LACMTA shall have the following remedies: (i) LACMTA may terminate this FA; (ii) LACMTA may make no further disbursements of Funds to GRANTEE; and/or (iii) LACMTA may recover from GRANTEE any Funds disbursed to GRANTEE as allowed by law or in equity.

11.2 Effective upon receipt of written notice of termination from LACMTA, GRANTEE shall not undertake any new work or obligation with respect to this FA unless so FTIP #: LA9919585
Subregion ID: South Bay
Project ID#: MM5507.23
FA# 9200000000M550723
Rev: 05.20.2025 13 Measure M Funding Agreement – MSP
directed by LACMTA in writing. Any Funds expended after termination shall be the sole responsibility of GRANTEE.

11.3 The remedies described herein are non-exclusive. LACMTA shall have the right to enforce any and all rights and remedies herein or which may be now or hereafter available at law or in equity.

12. COMMUNICATIONS

12.1 GRANTEE shall ensure that all Communication Materials contain recognition of LACMTA’s contribution to the Project as more particularly set forth in “Funding Recipient Communications Guidelines” available online at http://metro.net/partners-civic. The Funding Recipient Communications Guidelines may be changed from time to time during the course of this Agreement. GRANTEE shall be responsible for complying with the latest Funding Recipient Communications Guidelines during the term of this Agreement, unless otherwise specifically authorized in writing by the LACMTA Chief Communications Officer.

12.2 For purposes of this Agreement, “Communications Materials” include, but are not limited to, press events, public and external newsletters, printed materials, advertising, websites radio and public service announcements, electronic media, and construction site signage. A more detailed definition of “Communications Materials” is found in the Funding Recipient Communications Guidelines.

12.3 The Metro logo is a trademarked item that shall be reproduced and displayed in accordance with specific graphic guidelines. The preferred logo lock-up for Funding Recipients to use is included in the Funding Recipient Communications Guidelines.

12.4 GRANTEE shall ensure that any subcontractor, including, but not limited to, public relations, public affairs, and/or marketing firms hired to produce Project Communications Materials for public and external purposes will comply with the requirements contained in this Section.

12.5 The LACMTA Project Manager shall be responsible for monitoring GRANTEE’s compliance with the terms and conditions of this Section. GRANTEE’s failure to comply with the terms of this Section shall be deemed a default hereunder and LACMTA shall have all rights and remedies set forth herein.

FTIP #: LA9919585
Subregion ID: South Bay
Project ID#: MM5507.23
FA# 9200000000M550723
Rev: 05.20.2025 14 Measure M Funding Agreement – MSP

13. OTHER TERMS AND CONDITIONS

13.1 This FA, along with its Attachments, constitutes the entire understanding between the parties, with respect to the subject matter herein. The FA shall not be amended, nor any provisions or breach hereof waived, except in writing signed by the parties who agreed to the original FA or the same level of authority. Adoption of revisions or supplements to the Guidelines shall cause such revisions or supplements to become incorporated automatically into this Agreement as though fully set forth herein.

13.2 GRANTEE is obligated to continue using the Project dedicated to the public transportation purposes for which the Project was initially approved. The Project rightof-way, the Project facilities constructed or reconstructed on the Project site, and/or Project property purchased, excluding construction easements and excess property (whose proportionate proceeds shall be distributed in an equal proportion of the grant to GRANTEE Funding Commitment ratio), shall remain dedicated to public transportation use in the same proportion and scope and to the same extent as described in this FA. Equipment acquired as part of the Project, including office equipment, vehicles, shall be dedicated to that use for their full economic life cycle, including any extensions of that life cycle achieved by reconstruction, rehabilitation, or enhancements.

13.3 In the event that there is any legal court (e.g., Superior Court of the State of California, County of Los Angeles, or the U.S. District Court for the Central District of California) proceeding between the parties to enforce or interpret this FA, to protect or establish any rights or remedies hereunder, the prevailing party shall be entitled to its costs and expenses, including reasonable attorney’s fees.

13.4 Neither LACMTA nor any officer or employee thereof shall be responsible for any damage or liability occurring by reason of anything done or committed to be done by GRANTEE under or in connection with any work performed by and or service provided by GRANTEE, its officers, agents, employees, contractors and subcontractors under this FA. GRANTEE shall fully indemnify, defend and hold LACMTA and its subsidiaries, and its officers, agents and employees harmless from and against any liability and expenses, including without limitation, defense costs, any costs or liability on account of bodily injury, death or personal injury of any person or for damage to or loss of risk of property, any environmental obligation, any legal fees and any claims for damages of any nature whatsoever arising out of the Project, including without limitation: (i) use of the Funds by GRANTEE, or its officers, agents, employees, contractors or subcontractors; (ii) breach of GRANTEE’s obligations under this FA; or (iii) any act or omission of GRANTEE, or its officers, agents, employees, contractors or subcontractors in the performance of the work or the provision of the services, in connection with the Project including, without limitation, the Scope of Work, described in this FA.

13.5 Neither party hereto shall be considered in default in the performance of its obligation hereunder to the extent that the performance of any such obligation is prevented or delayed by unforeseen causes including acts of God, acts of a public enemy, and government acts beyond the control and without fault or negligence of the affected party. Each party hereto FTIP #: LA9919585
Subregion ID: South Bay
Project ID#: MM5507.23
FA# 9200000000M550723
Rev: 05.20.2025 15 Measure M Funding Agreement – MSP
shall give notice promptly to the other of the nature and extent of any such circumstances claimed to delay, hinder, or prevent performance of any obligations under this FA.

13.6 GRANTEE shall comply with and ensure that work performed under this FA is done in compliance with Generally Accepted Accounting Principles (GAAP), all applicable provisions of federal, state, and local laws, statutes, ordinances, rules, regulations, and procedural requirements including Federal Acquisition Regulations (FAR), and the applicable requirements and regulations of LACMTA. GRANTEE acknowledges responsibility for obtaining copies of and complying with the terms of the most recent federal, state, or local laws and regulations, and LACMTA requirements including any amendments thereto.

13.7 GRANTEE agrees that the applicable requirements of this FA shall be included in every contract entered into by GRANTEE or its contractors relating to work performed under this FA and LACMTA shall have the right to review and audit such contracts.

13.8 GRANTEE shall not assign this FA, or any part thereof, without prior approval of the LACMTA Chief Executive Officer or his designee. Any assignment by GRANTEE without said prior consent by LACMTA shall be void and unenforceable.

13.9 This FA shall be governed by California law. If any provision of this FA is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions shall nevertheless continue in full force without being impaired or invalidated in any way.

13.10 The covenants and agreements of this FA shall inure to the benefit of, and shall be binding upon, each of the parties and their respective successors and assigns.

13.11 GRANTEE will advise LACMTA prior to any key Project staffing changes. Notice will be given to the parties at the address specified in Part I, unless otherwise notified in writing of change of address or contact person.

13.12 GRANTEE, in the performance of the work described in this FA, is not a contractor nor an agent or employee of LACMTA. GRANTEE attests to no organizational or personal conflicts of interest and agrees to notify LACMTA immediately in the event that a conflict, or the appearance thereof, arises. GRANTEE shall not represent itself as an agent or employee of LACMTA and shall have no powers to bind LACMTA in contract or otherwise.

SOURCES OF FUNDS Prior Years FY2022-23 FY2023-24 FY2024-25 FY2025-26 FY2026-27 Total Budget
% of Budget

LACMTA PROGRAMMED FUNDING
MEASURE M MSP FUNDS $ 8,000,000 $ 8,000,000
SUM PROG LACMTA FUNDS $ - $ - $ - $ - $ 8,000,000 $ - $ 8,000,000 15% OTHER NON LACMTA FUNDING:

LOCAL: 2019 MM / MR Bonds and $1,028,348 $ 13,563,710 $ 17,969,470 $ 32,561,528 61% 2024 City Lease Revenue Bonds
STATE: $ - 0%
FEDERAL: $ - 0%
PRIVATE OR OTHER: $12,500,000 $ 12,500,000 $ 12,500,000 24% CGO Developer Contribution
SUM NON-LACMTA FUNDS $ - $ - $ - $ 1,028,348 $ 13,563,710 $ 30,469,470 $ 45,061,528 85% TOTAL PROJECT FUNDS $ - $ - $ - $ 1,028,348 $ 21,563,710 $ 30,469,470 $ 53,061,528 100%

ATTACHMENT A -PROJECT FUNDING
Measure M MSP - South Bay Highway Operational Improvements Program - Funding Agreement Projects - FA#: 9200000000M550723 Project Title: LENARDO DRIVE CONSTRUCTION Project ID#: MM5507.23

PROGRAMMED BUDGET - SOURCES OF FUNDS

03.01.19 Measure M Funding Agreement - MSP
Attachment A - Project Funding
SOURCES OF FUNDS FY 2023-24
Qtr 1
FY 2023-24
Qtr 2
FY 2023-24
Qtr 3
FY 2023-24
Qtr 4
FY 2024-25
Qtr 1
FY 2024-25
Qtr 2
FY 2024-25
Qtr 3
FY 2024-25
Qtr 4 TOTAL BUDGET
LACMTA PROGRAMMED FUNDS:

MEASURE M MSP FUNDS:

Planning Activities/Prog Dev $0
Environmental $0
Design and PS&E $0
Right-of-Way Acquisition $0
Construction $0
Vehicle Purchase $0
Others $0
Total Measure M $0 $0 $0 $0 $0 $0 $0 $0 $0
SUM PROG LACMTA FUNDS: $0 $0 $0 $0 $0 $0 $0 $0 $0
OTHER NON LACMTA FUNDING:

LOCAL: City MM/MR, LR Bonds
Planning Activities/Prog Dev $0
Environmental $0
Design and PS&E $0
Right-of-Way Acquisition $0
Construction $1,028,348 $1,028,348
Vehicle Purchase $0
Others $0
Total LOCAL $0 $0 $0 $0 $0 $0 $0 $1,028,348 $1,028,348
STATE:

Planning Activities/Prog Dev $0
Environmental $0
Design and PS&E $0
Right-of-Way Acquisition $0
Construction $0
Vehicle Purchase $0
Others $0
Total STATE $0 $0 $0 $0 $0 $0 $0 $0 $0
FEDERAL:

Planning Activities/Prog Dev $0
Environmental $0
Design and PS&E $0
Right-of-Way Acquisition $0
Construction $0
Vehicle Purchase $0
Others $0
Total FEDERAL $0 $0 $0 $0 $0 $0 $0 $0 $0
PRIVATE:

Planning Activities/Prog Dev $0
Environmental $0
Design and PS&E $0
Right-of-Way Acquisition $0
Construction $0
Vehicle Purchase $0
Others $0 $0 $0 $0 $0 $0 $0 $0 $0
Total PRIVATE $0 $0 $0 $0 $0 $0 $0 $0 $0
SUM NON-LACMTA FUNDS : $0 $0 $0 $0 $0 $0 $0 $1,028,348 $1,028,348

PROJECT FUNDING
FY2023-24 and FY2024-25 $0 $0 $0 $0 $0 $0 $0 $1,028,348 $1,028,348

ATTACHMENT B - EXPENDITURE PLAN COST & CASH FLOW BUDGET Measure M MSP - South Bay Highway Operational Improvements Program - Funding Agreement Projects - FA#: 9200000000M550723 Project Title: LENARDO DRIVE CONSTRUCTION Project ID#: MM5507.23

PROGRAMMED SOURCES OF FUNDS

09.10.19 1 of 2
Measure M Funding Agreement - MSP
Attachment B - Expenditure Plan

PROGRAMMED SOURCES OF FUNDS
SOURCES OF FUNDS FY 2025-26
Qtr 1
FY 2025-26
Qtr 2
FY 2025-26
Qtr 3
FY 2025-26
Qtr 4
FY 2026-27
Qtr 1
FY 2026-27
Qtr 2
FY 2026-27
Qtr 3
FY 2026-27
Qtr 4 TOTAL BUDGET
LACMTA PROGRAMMED FUNDS:

MEASURE M MSP FUNDS:

Planning Activities/Prog Dev $0
Environmental $0
Design and PS&E $0
Right-of-Way Acquisition $0
Construction $1,936,476 $4,211,142 $1,852,382 $8,000,000 Vehicle Purchase $0
Others $0
Total MEASURE M $0 $0 $0 $0 $0 $1,936,476 $4,211,142 $1,852,382 $8,000,000 SUM PROG LACMTA FUNDS: $0 $0 $0 $0 $0 $1,936,476 $4,211,142 $1,852,382 $8,000,000 OTHER NON LACMTA FUNDING:

LOCAL: City MM/MR, LR Bonds
Planning Activities/Prog Dev $0
Environmental $0
Design and PS&E $0
Right-of-Way Acquisition $0
Construction $1,477,149 $1,904,545 $2,983,399 $7,198,617 $12,885,051 $5,084,419 $31,533,180 Vehicle Purchase $0
Others $0
Total LOCAL $1,477,149 $1,904,545 $2,983,399 $7,198,617 $12,885,051 $5,084,419 $0 $0 $31,533,180 STATE:

Planning Activities/Prog Dev $0
Environmental $0
Design and PS&E $0
Right-of-Way Acquisition $0
Construction $0
Vehicle Purchase $0
Others $0
Total STATE $0 $0 $0 $0 $0 $0 $0 $0 $0
FEDERAL:

Planning Activities/Prog Dev $0
Environmental $0
Design and PS&E $0
Right-of-Way Acquisition $0
Construction $0
Vehicle Purchase $0
Others $0
Total FEDERAL $0 $0 $0 $0 $0 $0 $0 $0 $0
PRIVATE: $12,500,000 CGO Payment $0
Planning Activities/Prog Dev $0
Environmental $0
Design and PS&E $0
Right-of-Way Acquisition $0
Construction $6,561,859 $2,341,369 $3,596,772 $12,500,000 Vehicle Purchase $0
Others $0
Total PRIVATE $0 $0 $0 $0 $0 $6,561,859 $2,341,369 $3,596,772 $12,500,000 SUM NON-LACMTA FUNDS : $1,477,149 $1,904,545 $2,983,399 $7,198,617 $12,885,051 $11,646,278 $2,341,369 $3,596,772 $44,033,180

PROJECT FUNDING

PROJECT FUNDING
FY2025-26 and FY2026-27 $1,477,149 $1,904,545 $2,983,399 $7,198,617 $12,885,051 $13,582,754 $6,552,511 $5,449,154 $52,033,180 TOTAL LACMTA FUNDS $0 $0 $0 $0 $0 $1,936,476 $4,211,142 $1,852,382 $8,000,000 TOTAL NON-LACMTA FUNDS $1,477,149 $1,904,545 $2,983,399 $7,198,617 $12,885,051 $11,646,278 $2,341,369 $4,625,120 $45,061,528 TOTAL PROJECT FUNDING $1,477,149 $1,904,545 $2,983,399 $7,198,617 $12,885,051 $13,582,754 $6,552,511 $6,477,502 $53,061,528

09.10.19 2 of 2
Measure M Funding Agreement - MSP
Attachment B - Expenditure Plan
FTIP #: LA9919585
Subregion ID: South Bay
Project#: MM5507.23
Funding Agreement#: 9200000000M550723
Rev. 06.27.24 1 Measure M Funding Agreement – MSP
Attachment C – Scope of Work

ATTACHMENT C

SCOPE OF WORK

CAPITAL PROJECT
PROJECT TITLE:

LENARDO DRIVE CONSTRUCTION
PROJECT LOCATION:

The project is located at Stadium Way (between Avalon Boulevard and Main Street) in the City of Carson, in the South Bay area.

PROJECT LIMITS:

This project limits are Lenardo Drive (legally named Stadium Way) between the Torrance Lateral bridge/ Avalon Boulevard offramp of the 405 Freeway (southbound direction) and Main Street, including a leg extending northbound to Del Amo Boulevard (Stamps Drive). These streets are generally located in clean, native-soil corridors within the former Cal Compact Landfill, now titled The District at South Bay.

The overall infrastructure project also includes new traffic signals at Main Street/Lenardo Drive and Stamps Drive/Del Amo Boulevard as well as new streetlights and median island reconstruction on Del Amo Boulevard between the Kay Calas Bridge and Main Street.

NEXUS TO HIGHWAY OPERATION, DEFINITION/PROJECT PURPOSE:

The purpose of this project is to reconstruct a public street to facilitate development in one of the largest undeveloped parcels on the 405 Freeway in LA County and a critical property for the economic development of Carson and provide a direct linkage between the Avalon Boulevard/405 Freeway southbound exit and Main Street. An east-west street that connects Avalon and Main and parallels Carson Street is not available until Del Amo Boulevard nearly one mile to the north.

PROJECT BACKGROUND:

The scope of the Metro-funded work is Asphalt Paving, Landscaping and Irrigation, and Traffic Signals and Streetlights for the Lenardo Drive project in Carson. While the award from Metro is $8,000,000, this is a $53,061,528 general contractor construction scope as of 2/28/2026, which is the construction of a nearly one-mile public street that is being constructed/reconstructed by the Carson Reclamation Authority (“CRA”) to facilitate the development of the former Cal Compact Landfill.

The City of Carson itself and the CRA are separate entities for environmental liability reasons. The CRA exists to undertake work and assume the environmental liability on behalf of the City in contaminatedland projects and is a necessary tool for the City to be able to complete these projects. All public infrastructure construction work on the site is contracted for and performed by the CRA and not the City.

At significant additional cost, the CRA has undertaken the design and entitlement of Lenardo Drive, including the civil engineering design including grading, hydrology, stormwater, street improvement plans, striping and signaling, and streetlights; median island landscaping, geotechnical and structural foundations; and utility design. Utilities include Southern California Edison, Southern California Gas, Spectrum, AT&T, California Water Company (domestic water), West Basin Municipal Water District (recycled water), and LA County Public Works (sewer and storm drain). These plans are complete, and construction began on June 26, 2025 with grubbing and clearing of the street section.

The CRA became the owner of approved- and partially constructed street plans when it acquired the Cal Compact Landfill in 2015 from the previous private owner. As originally designed in the 2009-2010 period, Lenardo Drive was intended to be a partially “submerged” street, with a 25’ depression in the FTIP #: LA9919585
Subregion ID: South Bay
Project#: MM5507.23
Funding Agreement#: 9200000000M550723
Rev. 06.27.24 2 Measure M Funding Agreement – MSP
Attachment C – Scope of Work
middle section (about 1,000 LF) to be bridged by overhead roads connecting certain sections of the site called Cell 2 and Cells 4 and 5.

Some of the wet utilities - stormwater and sewer - were installed in 2011 based on the submerged street design. When the decision was made to return the street to “at-grade,” solutions needed to be developed to accommodate utilities which would now be nearly 30’ below grade. The wet utility redesign did not require a full reconstruction of the utilities, but rather recommended features to protect the pipes from additional soil load in the Lenardo Depression and ensure worker safety.

With logistics being significant land uses in the new site plan, the entire project needed to undergo another Specific Plan amendment, and several changes were made to Lenardo and Stamps Drives.

These changes included driveway modifications on both sides of Lenardo; measures to limit or prohibit truck traffic from entering from or exiting to Avalon Boulevard; reducing median width at certain intersections to accommodate truck movements, which had a spillover effect on both streetlight location and landscaping; widening Stamps Drive to add an additional left turn onto Del Amo; and the installation of additional storm drain inlets on the Cells 3, 4, and 5 side of Lenardo due to the changed hydrology.

A key part of the Lenardo design is that the street now crosses the Torrance Lateral (owned by LA County Flood Control) and passes through Caltrans right of way associated with the Avalon on/off ramps on the 405 Freeway. The former RDA constructed a bridge over the lateral and received easements for street and highway purposes from LA County Flood Control for the bridge and the approaches on either end. The freeway ramp was a joint project between the former RDA and Caltrans. The CRA, City, and Caltrans agree that Caltrans and the CRA will address the access control issue by removing the denial-of-service barriers and adjusting the access control line. Installation of utilities (water and power) along the offramp is a “longitudinal encroachment” under Caltrans rules, and Caltrans will issue an exception for construction access. Cal Water will own the water line and electrical conduit will be owned by an entity of the CRA that distributes retail power on the site.

Status of Utilities
• Recycled Water (West Basin Municipal Water District). A portion of this system was installed in 2011. West Basin required an outlet and manhole (“flushing station”) outside the right of way so that recycled water can periodically be discharged into the sewer to keep it from getting stagnant in low usage periods. Work to complete the system started on January 20, 2026. • Domestic Water (California Water Service). A portion of this system was installed in 2011.

CalWater requires their line to extend over the bridge to connect to Avalon Boulevard and requires access rights from Caltrans. Work to complete the system started on January 30, 2026. • Public Sanitary Sewer. Much of this system was installed in 2011 with the exception of stubbing to the adjacent cells based on the current development plans. In the Lenardo Depression, all existing sewer lines required concrete bridging over the top to protect it from the additional 25’ of soil from the backfill. This work is complete.
• Public Storm Drain. Most of this system was installed in 2011 except for additional storm drain inlets required because of the changed hydrology of the site. Approximately 1,000 linear feet of FTIP #: LA9919585
Subregion ID: South Bay
Project#: MM5507.23
Funding Agreement#: 9200000000M550723
Rev. 06.27.24 3 Measure M Funding Agreement – MSP
Attachment C – Scope of Work
pipe in the Lenardo Depression was replaced with a higher D-loaded pipe to protect it from the additional 25’ of soil from the backfill. This work is complete. • Dry Utilities. (Electrical). The CRA provided extensive amounts of information to SCE’s planning and engineering teams regarding both the environmental and geotechnical conditions on the property in the locations planned for electrical conduits and cabling or equipment, provided estimated electrical loads, and received a provisional Global identifying the substations and circuits and the timing at which different amounts of power to meet this load could be provided to the property. In September 2025, however, SCE notified the CRA it will not bring power, construct, or operate any facilities on the former landfill site because of environmental concerns.

While the CRA is still negotiating with SCE to provide normal Rule 15/16 service, it is working on a backup plan to create a municipal utility to serve the site. The site is at the intersection of 12KV and 16KV service territories and will need to be served by three separate substations. Based on the provisional Global, the CRA’s dry utility consultants have drafted a design for the electrical backbone service on the property. The CRA and its development team are providing SCE with a plan for receiving primary power at the property line. SCE’s power would be run overhead on three customer-owned poles and brought down to pad-mounted equipment cabinet containing metering and switch gear. The equipment would be owned by the CRA and located on clean, native material along the alignment for Lenardo Drive just east of Main Street, with another similar facility located near the Torrance Lateral Bridge. From those points power would be distributed on site through a conduit backbone to vaults for transformation and secondary distribution to buildings developed on the property. • Dry Utilities. (SoCal Gas). SoCal Gas to install the 3,300 linear feet of gas main in a trench provided by the CRA. The Agreement was approved in November 2024, and work will begin in June 2026.

Street Improvement Plans
• Street Improvement Plans. Plans have been approved by the City and are awaiting the City Engineer’s signature.
• Traffic Signal Plans. Plans are nearly complete but Stamps and Del Amo Blvd signal and the Main and Lenardo signals need to obtain easement from three property owners. Traffic signal plans required extensive structural foundation plans, also approved. • Street Lighting. Lights on Lenardo and Del Amo to be metered LS3 spec, to be owned by the City. Streetlights are approved. Lenardo streetlights required extensive structural foundation plans, also approved.
• Street Signage and Striping Plans are approved.
• Lenardo / Stamps Landscape & Irrigation Plan. Lenardo and Del Amo medians are in the final stages of approval process.

Environmental Scope (EKI)
Cell 1 and Cell 2 Buffer zones (Landfill Cap and Landfill Gas). Buffer zones are intended to mitigate environmental, human health, and construction safety risks to occupants and users of completed phases of the landfill development. Buffer zones accomplish this by providing FTIP #: LA9919585
Subregion ID: South Bay
Project#: MM5507.23
Funding Agreement#: 9200000000M550723
Rev. 06.27.24 4 Measure M Funding Agreement – MSP
Attachment C – Scope of Work
physical separation, as well as the implementation of mitigation measures between developed and occupied areas, and those areas still under remediation and construction. There are several historical buffer zones on the Site associated with features such as adjacent streets (i.e., Main Street, Del Amo Boulevard and the San Diego Freeway) and the Torrance Lateral. The Management Approach to Phased Occupancy (“MAPO”) approved by DTSC in April 2018 requires that the specific dimensions and mitigation measures for a buffer zone be implemented around any developed landfill cell to allow uninterrupted occupancy of that development throughout the remaining construction on adjacent cells.

Cell 2 buffer design has been approved by DTSC including the contouring of wet utilities over the liner. The Cell 1 buffer zone had different slope issues that were addressed, and buffer work started in March 2026. The implementation of the buffer zone is to provide mitigation measures around the proposed development on Cells 3, 4, and 5, consistent with the requirements of the MAPO.

The approved design of the landfill cap requires the Low Linear Density Polyethylene (“LLDPE”) geomembrane system to extend 10 feet past the limits of waste and terminate in native soil (at the edge of or under the adjacent street). A minimum of 1.5 feet is required for the anchor trench that secures the edge of the membrane system at the termination point. Street pavement, landscaping, bike lanes and pedestrian walkways at final grade can extend into/above the 10-foot extension distance.

The decision to construct the buffer zone on Cells 1 and 2 during the Lenardo construction was to avoid needing to excavate the anchor trench and install the LLDPE geomembrane liner on those cells after construction of Lenardo Drive is complete (as is required for occupancy of any development on the site) and potentially having to demolish and reconstruct a portion of Lenardo Drive.

PROJECT BUDGET (LACMTA-eligible costs):

COMPONENT TOTAL AMOUNT LACMTA-eligible costs
Construction contract for
Paving, Landscaping and Irrigation,
Streetlights and Traffic Signals
$53,061,528 $8,000,000
FTIP #: LA9919585
Subregion ID: South Bay
Project#: MM5507.23
Funding Agreement#: 9200000000M550723
Rev. 06.27.24 5 Measure M Funding Agreement – MSP
Attachment C – Scope of Work
OVERALL PROJECT FUNDING:

PHASE
LACMTA –

MEASURE M FUNDS

LOCAL AGENCY &

PRIVATE FUNDS TOTAL
General Contactor $8,000,000 $45,061,528 $53,061,528
TOTAL OVERALL PROJECT COST $53,061,528
SCOPE:

CONSTRUCTION:

For the construction of Asphalt Paving, Landscaping and Irrigation, and Traffic Signals, Grantee provides, through its Development Manager, construction oversight including procuring a consultant for construction management, and managing the general contractor contract for construction for the following tasks:

A. Development Manager to contract with a separate engineering firm to provide Construction Management for the Project.

B. Development Manager to contract with a General Contractor for construction.

C. Conduct a “Ribbon Cutting” ceremony at the completion of the Project.

The Development Manager, Construction Manager, General Contractor, and Design Consultants meet weekly in an Owners, Architects, and Contactors (“OAC”) Meeting with the Grantee to accomplish Project tasks as outlined. Other meetings expected between the Development Manager, Construction Manager, and Grantee shall include, but not be limited to, Pre-Construction Meeting, progress meetings and preparation of responses to RFIs.

FTIP #: LA9919585
Subregion ID: South Bay
Project#: MM5507.23
Funding Agreement#: 9200000000M550723
Rev. 06.27.24 6 Measure M Funding Agreement – MSP
Attachment C – Scope of Work

CONSTRUCTION MILESTONES: The implementation schedule for this project will be as follows.

Date: 2/20/26
START FINISH Percent Complete To Date:

Projected Percent
Complete Next Month:
2/15/2026 3/31/2026
Road-Only Construction (Lenardo and Del Amo)
Grubbing and Clearing 06/26/2025 07/10/2025 100% 100%
Grading for Street Work (including backfill of depression) 8/13/2025A 12/31/2026 65% 70% Sewer Improvements 9/05/2025A 4/17/2026 70% 75%
Storm Drain Improvements 9/05/2025A 4/17/2026 60% 75%
Domestic Water 02/06/2026A 6/11/2026 20% 40%
Recycled Water 01/20/2026A 6/11/2026 30% 50%
Dry Utility Backbone 8/13/2026 10/22/2026 0% 0%
Asphalt Paving 11/18/2026 1/7/2027 0% 0%
Sidewalks and curbs 10/5/2026 12/1/2026 0% 0%
Streetlights 12/4/2026 1/21/2027 0% 0%
Traffic Signals 12/4/2026 1/21/2027 0% 0%
Landscaped Medians 10/1/2026 1/28/2027 0% 0%
Signing and Striping 3/19/2027 3/25/2027 0% 0%
Environmental Work (Both Cell 1 and Cell 2)
Replace GCCS Header 3/9/2026 6/30/2026 0% 30%
Installation of Vaults on Cell 2 4/22/2026 9/11/2026 0% 0% Grading to Liner Grade on Cell 1 6/24/2026 7/15/2026 0% 0% Grading to Liner Grade on Cell 2 4/8/2026 6/24/2026 0% 0% Install Liner on Cell 1 7/1/2026 7/20/2026 0% 0%
Install Liner on Cell 2 4/15/2026 7/1/2026 0% 0%
FTIP #: LA9919585
Subregion ID: South Bay
Project#: MM5507.23
Funding Agreement#: 9200000000M550723
Rev. 06.27.24 7 Measure M Funding Agreement – MSP
Attachment C – Scope of Work
ATTACHMENT C - Location Map(s):

FTIP #: LA9919585
Subregion ID: South Bay
Project#: MM5507.23
Funding Agreement#: 9200000000M550723
Rev. 06.27.24 8 Measure M Funding Agreement – MSP
Attachment C – Scope of Work
Please insert a map of the
project area
FTIP #: LA9919585
Subregion ID: South Bay
Project#: MM5507.23
Funding Agreement#: 9200000000M550723
Rev. 06.27.24 9 Measure M Funding Agreement – MSP
Attachment C – Scope of Work
FTIP #: LA9919585
Subregion ID: South Bay
Project#: MM5507.23
Funding Agreement#: 9200000000M550723
Rev. 06.27.24 10 Measure M Funding Agreement – MSP
Attachment C – Scope of Work

12.06.19 Measure M Funding Agreement – MSP
Attachment D – Reporting Guidelines
1 FA ATTACHMENT D

PROJECT REPORTING & EXPENDITURE GUIDELINES

REPORTING PROCEDURES
• Quarterly Progress/Expenditure Report (Attachment D2) are required for all projects.

The GRANTEE shall be subject to and comply with all applicable requirements of the funding agency regarding project-reporting requirements. In addition, GRANTEE will submit the Quarterly Expenditure Report to the LACMTA, after receiving LACMTA Project Manager’s acceptance of the draft report, at
[email protected] or by mail to Los Angeles Metropolitan Transportation Authority, Accounts Payable, P. O. Box 512296, Los Angeles, California 90051-0296. Please note that letters or other forms of documentation may not be substituted for this form.
• The Quarterly Progress/Expenditure Report covers all activities related to the project and lists all costs incurred. It is essential that GRANTEE provides complete and adequate response to all the questions. The expenses listed must be supported by appropriate documentation with a clear explanation of the purpose and relevance of each expense to the project.
• In cases where there are no activities to report, or problems causing delays, clear explanation, including actions to remedy the situation, must be provided. • GRANTEE is required to track and report on the project schedule. LACMTA will monitor the timely use of funds and delivery of projects. Project delay, if any, must be reported each quarter.
• The draft Quarterly Expenditure Report is due to the LACMTA as soon as possible after the close of each quarter, but no later than the following dates for each fiscal year:

Quarter Report Due Date
July –September November 30
October - December February 28
January - March May 31
April - June August 31
LACMTA Project Manager shall review and respond in writing to the draft Quarterly Expenditure Report within thirty (30) calendar days from receipt.

Upon completion of the Project a final report that includes project’s final evaluation must be submitted.

12.06.19 Measure M Funding Agreement – MSP
Attachment D – Reporting Guidelines
2 EXPENDITURE GUIDELINES
• Any activity or expense charged above and beyond the approved Scope of Work (FA Attachment C) is considered ineligible and will not be reimbursed by the LACMTA unless prior written authorization has been granted by the LACMTA Chief Executive Officer or his/her designee.
• Any expense charged to the grant must be clearly and directly related to the project. • Administrative cost is the ongoing expense incurred by the GRANTEE for the duration of the project and for the direct benefit of the project as specified in the Scope of Work (Attachment C). Examples of administrative costs are personnel, office supplies, and equipment. As a condition for eligibility, all costs must be necessary for maintaining, monitoring, coordinating, reporting and budgeting of the project. Additionally, expenses must be reasonable and appropriate to the activities related to the project. • LACMTA is not responsible for, and will not reimburse any costs incurred by the GRANTEE prior to the Effective Date of the FA, unless written authorization has been granted by the LACMTA Chief Executive Officer or his/her designee.

DEFINITIONS
• Allowable Cost: To be allowable, costs must be reasonable, recognized as ordinary and necessary, consistent with established practices of the organization, and consistent with industry standard of pay for work classification.
• Excessive Cost: Any expense deemed “excessive” by LACMTA staff would be adjusted to reflect a “reasonable and customary” level. For detail definition of “reasonable cost”, please refer to the Federal Register OMB Circulars A-87 Cost Principals for State and Local Governments; and A-122 Cost Principals for Nonprofit Organizations. • Ineligible Expenditures: Any activity or expense charged above and beyond the approved Scope of Work is considered ineligible.

Invoice #
QUARTERLY PROGRESS/EXPENDITURE REPORT Invoice Date
FA#
Quarterly Report #

GRANTEES ARE REQUESTED TO EMAIL THIS REPORT TO
[email protected]
or submit by mail to:

Los Angeles County Metropolitan Transportation Authority Accounts Payable
P. O. Box 512296
Los Angeles, California 90051-0296
Please note that letters or other forms
of documentation may not be substituted for this form. Refer to the Reporting and Expenditure Guidelines (Attachment D) for further information.

Balance Remaining
Grantee To Complete
LACMTA FA MEASURE M ATTACHMENT D-2
SECTION 1: QUARTERLY EXPENSE REPORT
Total Project Budget
Project-to-Date Expenditure
Funds Expended to Date (Include
this Quarter)
Please itemize grant-related charges for this Quarter on Page 5 of this report and include totals in this Section.

Retention Amount
This Quarter Expenditure
Project Quarter Expenditure
Net Invoice Amount (Less
Retention)
LACMTA Measure M MSP Grant $
% of Project Budget Expended to
Date
9200000000M

12.06.19 1
Measure M Funding Agreement - MSP
Attachment D-2 Quarterly Progress/Expenditure Report
PROJECT TITLE:

QUARTERLY REPORT SUBMITTED FOR:

Fiscal Year : 2018-19 2019-20 2020-21
2021-22 2022-23 2023-24
Quarter : Q1: Jul - Sep Q2: Oct - Dec
Q3: Jan - Mar Q4: Apr - Jun
DATE SUBMITTED:

Measure M Multi-Year Subregional Program Type:

Phone Number:

E-mail:

SECTION 2: GENERAL INFORMATION
Contact Name:

Job Title:

Name:

FA #:

LACMTA Project Manager
E-mail:

Grantee Contact / Project
Manager
Phone Number:

Mailing Address:

City / Agency:

Department:

12.06.19 2
Measure M Funding Agreement - MSP
Attachment D-2 Quarterly Progress/Expenditure Report
Start Date End Date
Ground Breaking Event
On schedule per original FA schedule Less than 12 months behind original schedule Between 12-24 months behind original schedule More than 24 months behind original schedule Yes No Not Applicable
Yes No Not Applicable
B. Was the project design started within 6 months of the date originally stated in the FA? C. Was a construction contract or capital purchase executed within 9 months after completion of design / specifications?

2. PROJECT COMPLETION
Total Project Duration (Months)
Ribbon Cutting Event
A. Based on the comparison of the original and actual project milestone schedules above, project is (select only one) :

End Date

1. DELIVERABLES & MILESTONES
Original FA Schedule in Scope of Work
List all deliverables and milestones as stated in the FA, with start and end dates. Calculate the total project duration. DO NOT CHANGE THE ORIGINAL FA MILESTONE START AND END DATES SHOWN IN THE 2 ND AND 3 RD COLUMNS BELOW.

Grantees must make every effort to accurately portray milestone dates in the original FA Scope of Work, since this will provide the basis for calculating any project delay. If milestone start and/or end dates change from those stated in the Original FA Scope of Work, indicate the new dates under Actual Schedule below and re-calculate the project duration. However, this does not change the original milestones in your FA. PER YOUR FA AGREEMENT, ANY CHANGES TO THE PROJECT SCHEDULE MUST BE FORMALLY SUBMITTED UNDER SEPARATE COVER TO LACMTA FOR WRITTEN CONCURRENCE.

Right-of-Way Acquisition
Start Date
Construction
Design
FA Milestones
SECTION 3 : QUARTERLY PROGRESS REPORT
Actual Schedule
Environmental
Others
Vehicle Purchase

12.06.19 3
Measure M Funding Agreement - MSP
Attachment D-2 Quarterly Progress/Expenditure Report

3. TASKS / MILESTONES ACCOMPLISHED
If the project is delayed (as described in #4), include action items that have been, or will be, undertaken to resolve the delay.

6. UPCOMING QUARTERLY TASKS / MILESTONES
List tasks or milestones expected to be accomplished next quarter.

7. PLAN EXPENDITURES
Provide expected expenditures (estimated) for next quarter.

List tasks or milestones accomplished and progress made this quarter.

4. PROJECT DELAY
If project is delayed, describe reasons for delay (this quarter). Pay particular attention to schedule delays. If delay is for the same reason as mentioned in previous quarters, please indicate by writing "Same as Previous Quarter".

5. ACTION ITEMS TO RESOLVE DELAY

12.06.19 4
Measure M Funding Agreement - MSP
Attachment D-2 Quarterly Progress/Expenditure Report
1 2
3 4
5 6
7 8
9 10
11 12
13 Invoice Payment Information:

Signature Date
Name Title
and that to the best of my knowledge and belief the information I certify that I am the responsible Project Manager or fiscal officer and representative of SECTION 4. ITEMIZED LISTING OF EXPENSES AND CHARGES THIS QUARTER INVOICE #
All expenses and charges must be itemized and listed below. Each item listed must be verifiable by an invoice and/or other proper documentation.

The total amounts shown here must be equal to this quarter’s expenditures listed on page 1 of this report. All expenses and charges must be reflective of the approved budget and rates as shown in the FA Attachment B, Scope of Work. Use additional pages if needed.

ITEM
$ -
LACMTA will make all disbursements electronically unless an exception is requested in writing. Reimbursements via Automated Clearing House (ACH) will be made at no cost to GRANTEE. GRANTEE must register in LACMTA's iSupplier portal and submit an application before grant payments can be made. The link to the portal can be found at http://media.metro.net/uploads/EBB/Vendor Portal Registration.pdf.

Written exception requests for Check Payments should be completed and emailed to Accounts Payable at [email protected].

TOTAL EXPENSES CHARGED TO LACMTA MEASURE

M GRANT
Invoice
Reference
Pg(s)
stated in this report is true and correct.

All receipts, invoices, and time sheets, attached and included with this Expense Report must be listed and shown under the Invoice Number column of the Itemized Listing (above).

Note:

TOTAL

12.06.19 5
Measure M Funding Agreement - MSP
Attachment D-2 Quarterly Progress/Expenditure Report
Los Angeles Metropolitan Transportation Authority
2027 Federal Transportation Improvement Program ($000)
TIP ID LA9919585 Implementing Agency Carson, City of
SCAG RTP Project #:

Conformity Category: TCM Committed
Project Description: Measure M MSP - South Bay Highway Operational Improvements program. Paving, Landscaping and Irrigation, Streetlights and Traffic Signals for Lenardo Drive Construction Project.

Study:N/A Is Model: Model #:

PM: John Raymond - (310)952-1773
LS: N LS GROUP#:

EA #: PPNO:

Program Code: CAXT2 - HIGHWAY/ROAD IMP - LANE ADD'S - w/TCM : RS Stop Loc:

Air Basin:

Various
Envir Doc: -
Uza: Sub-Area: Sub-Region: South Bay Cities
COG
CTIPS ID:

Lane # Extd: Lane # Prop: Imprv Desc:

Toll Rate: Hov acs eg loc:

0.00 Toll Colc Loc: Toll Method:

System :Local Hwy Route : Postmile: Distance: Phase: Construction/Project Implementation begins Completion Date PHASE PRIOR 26/27 27/28 28/29 29/30 30/31 31/32 BEYOND PROG TOTAL CITY - City Funds PE $0 $0 $0
CON
RW
SUBTOTAL $14,592,058 $17,969,470 $32,561,528
$14,592,058 $17,969,470 $32,561,528
$0 $0 $0
$0 $0
$12,500,000 $12,500,000
$12,500,000 $12,500,000
CITY - City Funds AC (Advanced Construction) $0 $0

SUBTOTAL
CON
RW
PE
$0 $0
$0 $0
$8,000,000 $8,000,000
SUBTOTAL $8,000,000 $8,000,000
CON
RW
MEASURE M MYSP (Multi Year Subregional Program) PE
TOTAL $14,592,058 $38,469,470
TOTAL PE: $0 TOTAL RW: $0 TOTAL CON: $53,061,528
$53,061,528
TOTAL PROGRAMMED: $53,061,528
- General Comment:
- Modeling Comment:
- TCM Comment:
- Amendment Comment:
- CMP Comment:
- Narrative:

Last Revised Amendment 27-03 - In Progress Change reason:NEW PROJECT Total Project Cost $53,061,528

Page 1 ends

08.20.2026 FA Measure MSP
Attachment G List of Procurement Documents
RESOLUTION NO. 26-112

A RESOLUTION OF THE CITY OF CARSON CITY COUNCIL AMENDING THE FISCAL YEAR 2026-27 BUDGET IN THE GENERAL FUND, SPECIAL REVENUE FUNDS, ENTERPRISE

FUNDS, AND THE CAPITAL IMPROVEMENT PROGRAM (CIP) FUND
WHEREAS,the City Council adopted the Fiscal Year 2026-2027 budget on June 16, 2026, for the General Fund, Special Revenue Funds, Enterprise Funds, and Capital Improvement Program (CIP) of the City via Resolution No. 26-063; and
WHEREAS, the City Council desires to amend the Fiscal Year 2026-27 budget; and WHEREAS, the City Council has determined it necessary to amend the Fiscal Year 2026-27 General Fund, Special Revenue Funds, Enterprise Funds, and Capital Improvement Program (CIP) budget.

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

Section 1. The following amendment(s) will be made to the City’s Fiscal Year 2026-27 budget.

Account Description Increase/(Decrease)
Revenue:
280-99-999-999-4513-PW1617
Project No. 1617 (Lenardo Drive) $8,000,000.00
Expense:
280-99-999-904-8009-PW1617
Project No. 1617 (Lenardo Drive) $8,000,000.00

Section 2. The City Clerk shall certify the adoption of this resolution and shall keep a copy of this resolution attached to the Fiscal Year 2026-27 budget on file, and effective as of October 6, 2026, the same shall be in force and effect.

PASSED, APPROVED, AND ADOPTED this 6th Day of October 2026.

APPROVED AS TO FROM: CITY OF CARSON:
_________________________ ________________________
Sunny K. Soltani, City Attorney Lula Davis-Holmes, Mayor ATTEST:
_______________________________
Dr. Khaleah K. Bradshaw, City Clerk

STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.

CITY OF CARSON )
I, Dr. Khaleah K. Bradshaw, City Clerk of the City of Carson, California, hereby attest to and certify that the foregoing resolution, being Resolution No. 26-112 adopted by the City of Carson City Council at its meeting held on October 6, 2026, by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMEBES:

ABSENT: COUNCIL MEMBERS:
_____________________________
Dr. Khaleah K. Bradshaw, City Clerk
CITY OF CARSON 701 East Carson Street
Report to Honorable Mayor and City Council
CONSENT 25.

To: Honorable Mayor and City Council
From: Dr. Arlington Rodgers, Director of Public Works PW Engineering Subject: CONSIDER APPROVAL OF THE FISCAL YEAR 2026-2027 THROUGH FISCAL YEAR 2030-2031

MEMORANDUM OF AGREEMENT BETWEEN THE CITY OF CARSON AND PARTICIPATING DOMINGUEZ

CHANNEL WATERSHED MANAGEMENT AREA AGENCIES FOR THE ADMINISTRATION AND COST SHARING

OF THE COORDINATED INTEGRATED MONITORING PROGRAM AND WATERSHED MANAGEMENT

PROGRAM (CITY COUNCIL)
I. SUMMARY
To comply with federal and state stormwater requirements, the City of Carson participates with neighboring cities and public agencies in the Dominguez Channel Watershed Management Area (DCWMA) Group. This regional partnership helps participating agencies meet the monitoring, reporting, and water-quality requirements of the National Pollutant Discharge Elimination System (NPDES) Municipal Separate Storm Sewer System (MS4) Permit, which regulates stormwater and urban runoff from municipal storm drain systems. As part of this regional effort, the participating agencies jointly implement an Enhanced Watershed Management Program (EWMP) and a Coordinated Integrated Monitoring Program (CIMP). The EWMP establishes strategies for reducing pollutants and improving water quality within the watershed, while the CIMP establishes the water-quality monitoring activities necessary to measure conditions and demonstrate compliance with the MS4 Permit. Working cooperatively allows the participating agencies to share the costs of these required activities rather than each agency independently performing the same monitoring, studies, and administrative work.

On June 5, 2018, the City Council approved the City's initial Memorandum of Agreement (MOA) for administration and cost sharing associated with these regional stormwater programs. Following expiration of the initial agreement, the City Council approved a subsequent MOA on June 6, 2023, which remained in effect through June 30, 2026. A new MOA is now necessary to continue the City's participation in the regional program and maintain the monitoring, reporting, and implementation activities required under the MS4 Permit. While the new agreement was being finalized by the City of Los Angeles, services continued under the terms of the previous agreement to avoid any interruption in required stormwater compliance activities.

Under the proposed Fiscal Year 2026-27 through Fiscal Year 2030-31 MOA, the participating agencies will continue sharing the costs associated with implementing the DCWMA Group's CIMP and EWMP. The South Bay Cities Council of Governments (SBCCOG) will administer the collection and distribution of each participating agency's share of program costs. This cooperative structure allows Carson to continue meeting its regulatory responsibilities while sharing the financial and administrative costs of required regional stormwater activities with other participating agencies.

Consequently, staff recommends that the City Council approve the proposed Fiscal Year 2026-27 through Fiscal Year 2030-31 Memorandum of Agreement (Exhibit No. 1) to continue the cooperative funding and implementation of the DCWMA Group's CIMP and EWMP and authorize the SBCCOG to administer cost sharing among the participating agencies.

II. RECOMMENDATION
TAKE the following actions:

1. APPROVE the Fiscal Year 2026-27 through Fiscal Year 2030-31 Memorandum of Agreement between the City of Los Angeles, City of Carson, City of El Segundo, City of Hawthorne, City of Inglewood, City of Lawndale, City of Lomita, Los Angeles County Flood Control District, County of Los Angeles, and South Bay Cities Council of Governments for the administration and cost sharing associated with implementation of the Coordinated Integrated Monitoring Program and Enhanced Watershed Management Program for the Dominguez Channel Watershed Management Area; and,

2. AUTHORIZE the City Manager to execute the Memorandum of Agreement, following approval as to form by the City Attorney.

III. ALTERNATIVES

1. DO NOT APPROVE the Fiscal Year 2026-27 through Fiscal Year 2030-31 Memorandum of Agreement. If the agreement is not approved, the City would need to identify an alternative approach to independently satisfy the applicable watershed management, water-quality monitoring, reporting, and other compliance requirements of the MS4 Permit. Staff does not recommend this alternative because independently administering these required activities would likely result in higher costs and additional administrative responsibilities compared with continuing to share costs and resources with other participating agencies through the regional agreement.

2. TAKE any other action the City Council deems appropriate and consistent with applicable law and the requirements of the MS4 Permit.

IV. BACKGROUND
The federal Clean Water Act establishes requirements intended to protect the nation’s waterways from pollution.

Under the Act, the National Pollutant Discharge Elimination System (NPDES) regulates the discharge of pollutants into rivers, streams, coastal waters, and other waters of the United States. One component of the NPDES program regulates stormwater and urban runoff from municipal storm drain systems through what is commonly referred to as a Municipal Separate Storm Sewer System (MS4) Permit. In the Los Angeles region, the Los Angeles Regional Water Quality Control Board (Regional Board) administers and enforces these requirements for Los Angeles County and its cities, including the City of Carson.

Stormwater runoff can collect pollutants such as trash, oil, chemicals, metals, bacteria, and other contaminants as it travels across streets, parking lots, and other developed areas before entering the storm drain system and ultimately reaching local waterways. The MS4 Permit therefore requires cities and other public agencies to monitor stormwater, reduce pollutants, document compliance, and report the results to the Regional Board.

Beginning in 2012, the MS4 Permit provided municipalities with the ability to work collaboratively and develop regional programs for meeting these requirements. These programs include a Watershed Management Program (WMP), which establishes the overall strategy for reducing pollutants and meeting water-quality requirements, and a Coordinated Integrated Monitoring Program (CIMP), which establishes how participating agencies monitor water quality and evaluate the effectiveness of those efforts. In 2015, the City elected to participate in the Dominguez Channel Watershed Management Area (DCWMA) Group, a regional partnership of neighboring cities and public agencies that work together to meet applicable stormwater requirements. Participation allows Carson to coordinate monitoring, studies, reporting, and other compliance activities with neighboring agencies rather than performing all required activities independently. This collaborative approach is intended to reduce duplication of work, share costs among participating agencies, and provide a coordinated approach to improving regional water quality. On December 15, 2015, the City Council approved the City's participation in the DCWMA Group's Enhanced Watershed Management Program (EWMP) and Coordinated Integrated Monitoring Program. The EWMP is the regional plan that identifies strategies and projects intended to reduce stormwater pollution and achieve applicable water-quality requirements, while the CIMP establishes the monitoring activities used to measure water quality and demonstrate compliance. The participating agencies also established their respective responsibilities for administering and funding these programs.

On June 5, 2018, the City Council approved a Memorandum of Agreement (MOA) establishing the administrative and cost-sharing responsibilities of the participating agencies. An MOA is a formal agreement that defines how participating public agencies will work together, including their respective responsibilities and how shared program costs will be allocated. Funding for the City's participation was approved through the General Fund. On July 23, 2021, the Regional Board issued an updated MS4 Permit, which became effective September 11, 2021. The updated Permit continued and modified requirements governing stormwater discharges from municipalities throughout the region. In response, the DCWMA Group updated its EWMP to reflect the new requirements. The Regional Board approved the revised EWMP on May 8, 2023. The DCWMA Group has also been updating the CIMP to remain consistent with the current Permit and Regional Board requirements.

The previous MOA expired at the end of Fiscal Year 2025-26. A new agreement is therefore necessary to continue the regional partnership and provide for the administration and funding of the monitoring, reporting, studies, and other activities required to maintain compliance with the MS4 Permit. Finalization of the new MOA extended beyond the expiration of the previous agreement due to revisions among the participating agencies; however, stormwater compliance services were not interrupted, and the final agreement was provided to City staff in late July 2026.

Under the proposed MOA, the City of Los Angeles will continue serving as the lead agency responsible for coordinating the regional program, including water-quality monitoring required under the CIMP and other EWMPrelated activities such as technical studies, regulatory communications, and reporting. The South Bay Cities Council of Governments (SBCCOG) will continue administering the collection of each participating agency's share of program implementation costs. This structure allows the participating agencies to share the administrative and financial responsibilities associated with regional stormwater compliance. The proposed MOA includes the City of Carson, City of Los Angeles, City of El Segundo, City of Hawthorne, City of Inglewood, City of Lawndale, City of Lomita, County of Los Angeles, Los Angeles County Flood Control District, and the South Bay Cities Council of Governments. The agreement establishes the responsibilities of the participating agencies and provides the framework for sharing the costs associated with implementing the EWMP and CIMP. Approval of the proposed MOA will allow the City of Carson to continue participating in the regional program through June 30, 2031.

Continued participation provides the City with a coordinated and cost-sharing approach to meeting federally and state-mandated stormwater monitoring and reporting requirements while avoiding unnecessary duplication of services among neighboring agencies.

Consequently, staff recommends that the City Council approve the proposed Memorandum of Agreement for administration and cost sharing associated with implementation of the Dominguez Channel Watershed Management Area Enhanced Watershed Management Program and Coordinated Integrated Monitoring Program through June 30, 2031. Approval will allow the City to continue working collaboratively with its regional partners and support the City's ongoing compliance with applicable NPDES/MS4 Permit requirements.

V. FISCAL IMPACT
The City’s total estimated cost to participate in the Dominguez Channel Watershed Management Area (DCWMA) Group’s Coordinated Integrated Monitoring Program (CIMP) and Enhanced Watershed Management Program (EWMP) over the five-year agreement term is $1,693,553. Funding for the first year of the agreement, Fiscal Year 2026-27, was included in the City’s adopted Fiscal Year 2026-27 Operating Budget, approved by the City Council on June 16, 2026, through Resolution No. 26-063. Funding is available in the Public Works Water Compliance Account No. 101-80-820-285-6004. Costs for the remaining four years of the agreement will be incorporated into the City’s annual budget process and are subject to City Council approval as part of each applicable fiscal year budget. The proposed agreement covers a five-year period from July 1, 2026, through June 30, 2031. The City’s estimated annual costs are as follows:

Fiscal Year Estimated City Cost
FY 2026-27 $324,875
FY 2027-28 $312,368
FY 2028-29 $387,648
FY 2029-30 $333,051
FY 2030-31 $335,611
Total Estimated Cost $1,693,553
These costs represent the City of Carson’s estimated share of the regional monitoring, administration, and implementation activities necessary to support compliance with applicable stormwater requirements. By participating jointly with other agencies in the DCWMA Group, the City shares the costs of required regional activities rather than independently funding and administering comparable monitoring and compliance efforts VI. EXHIBITS

1. Proposed FY 26-31 Memorandum of Agreement
Attachments

1. FY 26-31 Memorandum of Agreement

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MEMORANDUM OF AGREEMENT

BETWEEN THE CITY OF LOS ANGELES, THE CITY OF CARSON, THE CITY OF EL

SEGUNDO, THE CITY OF HAWTHORNE, THE CITY OF INGLEWOOD, THE CITY OF

LAWNDALE, THE CITY OF LOMITA, LOS ANGELES COUNTY FLOOD

CONTROL DISTRICT, THE COUNTY OF LOS ANGELES, AND THE SOUTH BAY

CITIES COUNCIL OF GOVERNMENTS

REGARDING THE ADMINISTRATION AND COST SHARING FOR IMPLEMENTING

THE COORDINATED INTEGRATED MONITORING PROGRAM (CIMP) AND

WATERSHED MANAGEMENT PROGRAM (WMP)

FOR THE DOMINGUEZ CHANNEL WATERSHED MANAGEMENT AREA
This Memorandum of Agreement (MOA), including its attachments, exhibits and schedules, is made and entered into as of July 1st, 2026 by and between THE SOUTH BAY CITIES COUNCIL OF GOVERNMENTS (SBCCOG), a California Joint Powers Authority, and THE CITY OF LOS ANGELES (CITY), a municipal corporation, THE CITY OF CARSON, a municipal corporation, THE CITY OF EL SEGUNDO, a municipal corporation, THE CITY OF HAWTHORNE, a municipal corporation, THE CITY OF INGLEWOOD, a municipal corporation, THE CITY OF LAWNDALE, a municipal corporation, THE CITY OF LOMITA, a municipal corporation, LOS ANGELES COUNTY FLOOD CONTROL DISTRICT (LACFCD), a body corporate and politic, and the COUNTY OF LOS ANGELES (COUNTY), a political subdivision of the State of California.

Collectively, these entities shall be known herein as PARTIES or individually as PARTY.

RECITALS
WHEREAS, the U.S. Environmental Protection Agency (USEPA) and the California Regional Water Quality Control Board, Los Angeles Region (Regional Board) have classified the Greater Los Angeles County Municipal Separate Storm Sewer System (MS4) as a large MS4 pursuant to 40 Code of Federal Regulations (CFR) section 122.26(b)(4) and a major facility pursuant to 40 CFR section 122.2; and WHEREAS, the Regional Board adopted the 2021 Regional Phase I MS4 Permit Order No. R4-2021-0105; and
WHEREAS the 2021 MS4 Permit became effective on September 11, 2021, and requires the COUNTY, LACFCD, and 85 cities within the coastal watersheds of Los Angeles County, Ventura County Watershed Protection District, the County of Ventura, and 10 cities within Ventura County comply with its prescribed elements; and WHEREAS, the MS4 Permit identifies the PARTIES as MS4 permittees responsible for compliance with the Permit’s requirements pertaining to the PARTIES’ 2026 – 2031 Dominguez Channel Watershed MOA

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collective jurisdictional area in the Dominguez Channel Watershed Management Area as identified in Exhibit D of this MOA; and
WHEREAS, the CITY and the cities of Carson, El Segundo, Hawthorne, Inglewood, Lawndale, Lomita, and LACFCD and the COUNTY formed the Dominguez Channel Watershed Management Group (DC WMG) to collaborate on the Watershed Management Program (WMP) and the Coordinated Integrated Monitoring Program (CIMP) in accordance with the MS4 Permit, with the CITY serving as the DC WMG Lead Agency; and
WHEREAS, the WMP was submitted to the Regional Board by the PARTIES on June 25, 2015, and was approved by the Regional Board on April 20, 2016; and WHEREAS, a revised WMP was submitted to the Regional Board on June 29, 2021 and was approved by the Regional Board on October 15, 2025; and WHEREAS, the first CIMP was submitted to the Regional Board by the PARTIES on April 18, 2016, and was approved by the Regional Board on July 1, 2016; and WHEREAS, a revised CIMP was submitted to the Regional Board on March 11, 2023 and was approved by the Regional Board on June 12, 2026; and WHEREAS, the PARTIES have agreed to cooperatively share and fully fund the estimated costs of the implementation of the CIMP and WMP; and WHEREAS, the PARTIES agree that each shall assume full and independent responsibility for ensuring its own compliance with the MS4 Permit notwithstanding this MOA; and
WHEREAS, the PARTIES desire to have the SBCCOG: (a) invoice and collect funds from each of the PARTIES to cover the costs of MONITORING SERVICES and WMP-RELATED TASKS as detailed in Exhibit A hereto, and pay the same to the CITY; (b) perform tasks identified in CONTRACT ADMINISTRATION in Exhibit A hereto.

NOW, THEREFORE, in consideration of the mutual benefits to be derived by the PARTIES, and of the promises contained in this MOA, the PARTIES agree as follows:

Section 1. Recitals. The recitals set forth above are true and correct and fully incorporated into this MOA.

Section 2. Purpose. The purpose of this MOA is to cooperatively fund the MONITORING SERVICES and WMP-RELATED TASKS, as set forth in Exhibit A of this MOA.

Section 3. Cooperation. The PARTIES shall fully cooperate with one another to attain the purposes of this MOA.
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Section 4. Voluntary. The PARTIES have voluntarily entered into this MOA for the implementation of the MONITORING SERVICES and WMP-RELATED TASKS and authorize the SBCCOG to administer the cost-sharing.

Section 5. Term. This MOA shall become effective on July 1, 2026 and shall remain in effect for three (3) years up to and including June 30, 2029. The MOA may be extended, through mutual agreement of the PARTIES, for up to two (2) additional one (1) year terms.

Section 6. Commitment. Once effective, the PARTIES agree to uphold the promises contained in this MOA for the duration of the agreed upon term. The PARTIES agree that costs, expenses, fees, liabilities, and obligations incurred by the CITY in performing MONITORING SERVICES in accordance with Tables 2-2D(i) of Exhibit B and WMPRELATED TASKS in accordance with Tables 3-3B of Exhibit B prior to the execution date of this MOA but after July 1, 2026, shall be cost-shared under this Agreement according to the amounts specified in Exhibit B and shall be included in the first invoice.

Section 7. THE PARTIES AGREE:
a. Monitoring Services. The CITY will perform the MONITORING SERVICES as defined in Exhibit A.
b. WMP-Related Tasks. The CITY and the SBCCOG will perform the WMPRELATED TASKS, as defined in Exhibit A. c. Reporting. Each PARTY hereto authorizes the CITY to prepare and submit reports to the Regional Board as required by the MS4 Permit. In addition, the CITY will submit to the PARTIES the data used to prepare the reports. This data will be transmitted electronically to all PARTIES and as requested by the Regional Board.

The CITY will provide sufficient time for the PARTIES to review the reports prepared prior to submission to the Regional Board. The CITY shall consider incorporating such comments received and answering a PARTY’s questions to the best of its abilities prior to its submittal to the Regional Board. Any comments received related to a PARTY’s compliance determinations will be addressed or provided a response from the CITY prior to submittal to the Regional Board. d. Contract Administration. The SBCCOG will be responsible for CONTRACT ADMINISTRATION, as defined in Exhibit A.
e. Communication. To the extent the PARTIES have communications related to CONTRACT ADMINISTRATION as defined in Exhibit A, such communications shall be directed to the SBCCOG. Communications concerning MONITORING SERVICES and WMP-RELATED TASKS under this Agreement shall be directed to the DC WMG Lead Agency. Written notice will be provided to the PARTIES should contact information for the SBCCOG and/or the DC WMG Lead Agency change.
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f. Contracting. The PARTIES contemplate that other individual NPDES permit holders may wish to participate in the MONITORING SERVICES without being a PARTY to this MOA. In the event that another NPDES permittee wants to participate in the MONITORING SERVICES, the SBCCOG may enter into a separate, individual agreement with such individual NPDES permittee. The individual NPDES permittee will not become a PARTY to this MOA but will be responsible for its proportionate share of the costs for those MONITORING SERVICES. If other individual NPDES permit holders’ participation modifies the PARTIES’ proportionate cost share, each PARTY’S proportional payment obligation shall be modified administratively in Exhibit B.

Section 8. Invoicing and Payment
a. Invoicing. The SBCCOG will invoice all PARTIES, except the CITY, annually in amounts not exceeding the invoice amounts shown in Table 1 of Exhibit B. The annual invoices will be issued by the SBCCOG to the PARTIES in July of each calendar year for their proportional share of the estimated cost for MONITORING SERVICES and WMP-RELATED TASKS, including SBCCOG’s Contract Management Fee, for the fiscal year, as shown in Table 1 of Exhibit B. The first invoice will be issued in July 2026 or upon the execution of this Agreement, whichever is later. The PARTIES hereby acknowledge and ratify services performed on or after the earlier of July 1st, 2026 or the date of the last signature of the PARTIES that are performed in accordance with the terms and conditions of the MOA. Such services shall be included in the first invoice and reimbursable pursuant to this MOA.
i. CITY Invoicing. The SBCCOG shall invoice the CITY annually in amounts not exceeding the invoice amounts shown in Tables 3 and 4 of Exhibit B (“Annual Invoice”). The Annual Invoice will be issued by SBCCOG to the CITY in July of each calendar year for its proportional share of the estimated cost of WMP-RELATED TASKS, including SBCCOG’s Contract
Management Fee, for the fiscal year, as shown in Table 4 of Exhibit B. The first invoice will be issued in July 2026 or upon the execution of this Agreement, whichever is later. The CITY and SBCCOG hereby acknowledge and ratify services performed on or after the earlier of July 1st, 2026 or the date of the last signature of the PARTIES that are performed in accordance with the terms and conditions of the MOA. Such services shall be included in the first invoice and reimbursable pursuant to this MOA. The CITY shall not be subject to Sections 8(c) or 8(d).
ii. CITY Reimbursement. The CITY and SBCCOG shall complete a reconciliation process consistent with the one outlined in Section 8(h) on an annual basis. Upon completion of the reconciliation, the CITY shall invoice SBCCOG for reimbursement due back to the CITY for that fiscal year.

SBCCOG shall pay the CITY within sixty (60) days of receipt of the invoice 2026 – 2031 Dominguez Channel Watershed MOA

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from the CITY. If the CITY has not remitted payment to SBCCOG for its Annual Invoice by the completion of the annual reconciliation, SBCCOG shall deduct the CITY’s share for MONITORING SERVICES and the amount of the Annual Invoice from the CITY’s reimbursement. b. Annual Payment. Each PARTY, excluding the CITY, shall pay the SBCCOG for their invoice within sixty (60) days of receipt of the invoice from the SBCCOG. c. Late Payment Penalty. Any payment that is not received within sixty (60) days following receipt of the invoice from SBCCOG shall be subject to a late payment of 10%. Interest on any late payments shall accrue at the rate of 1% per month for each month a payment is past due.
d. Delinquent Payments. A payment not made within three hundred and sixty-five (365) days after receipt of the invoice from the SBCCOG shall result in the SBCCOG notifying the Regional Board and the PARTIES that the delinquent PARTY is no longer a participating member of the CIMP or WMP. The PARTY shall be deemed to have withdrawn from this MOA and the remaining PARTIES' cost share allocation shall be adjusted in accordance with the cost allocation formula in Table 1 of Exhibit B. Withdrawal shall not relieve a PARTY’s obligation to pay its proportionate share of costs that were due at the time of the deemed withdrawal.
e. Contingency. Each PARTY’s annual invoice will include a contingency of fifteen percent (15%) for MONITORING SERVICES and fifteen percent (15%) for WMPRELATED TASKS, as shown in Table 1 of Exhibit B. Contingency funds will be held by SBCCOG until such time as they are needed. Contingency funds that are used will be applied to each PARTY based on its proportional share. No PARTY will be obligated to pay for additional expenditures which exceed its contingency amounts without an amendment to this MOA.
i. Monitoring Services Contingency. The CITY shall have access to the MONITORING SERVICES Contingency, for paying for or otherwise implementing the MONITORING SERVICES defined in Exhibit A of this MOA. The CITY shall notify the PARTIES before use of the MONITORING SERVICES Contingency is appropriate or required as soon as practicable, but any failure to notify any PARTY or the PARTIES shall not alter, eliminate, or affect the CITY’s right to payment. The CITY will indicate the amount of MONITORING SERVICES Contingency used in its applicable invoice(s) to the SBCCOG for implementation of the MONITORING SERVICES. Should the CITY determine in its reasonable discretion that the MONITORING SERVICES Contingency not be necessary for
MONITORING SERVICES, the PARTIES may administratively shift these funds to be used for WMP-RELATED TASKS, consistent with Sections 8(f) and 9(c).
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ii. WMP-Related Tasks Contingency. The PARTIES may utilize WMPRELATED TASKS Contingency to complete projects consistent with the WMP-RELATED TASKS defined in Exhibit A. To utilize WMP-RELATED TASKS Contingency for a particular purpose or task, the DC WMG must come to a majority consensus, using the process defined in Section 9(c), as to whether use of the contingency for the purpose or task proposed is appropriate, as well as the process by which such purpose or task will be implemented. The SBCCOG shall reimburse the entity responsible for implementing the approved purpose or task with the WMP-RELATED TASKS Contingency. Should the WMP-RELATED TASKS Contingency not be necessary for WMP-RELATED TASKS, the PARTIES may
administratively shift these funds to be used for MONITORING SERVICES, consistent with Sections 8(f) and 9(c).
iii. Other Uses of Contingency. A PARTY or the PARTIES may utilize all or a portion of the MONITORING SERVICES Contingency and WMP-RELATED TASKS Contingency to pay for any penalties or fines assessed by the Regional Board. The PARTIES shall agree upon an approach to utilize these funds for this purpose.
f. Shifting of Funds. The PARTIES may shift funds collected under this MOA between MONITORING SERVICES and WMP-RELATED TASKS
administratively, without an amendment to this MOA, provided that the overall amount does not exceed the total not-to-exceed amount of this MOA or a PARTY’S annual proportional cost, as set forth in Table 1 of Exhibit B, and if approved by a majority consensus, using the process defined in Section 9(c). Should the CITY require a shift in funds between MONITORING SERVICES and WMP-RELATED TASKS in order to implement the MONITORING SERVICES and WMP-RELATED TASKS, it shall notify the SBCCOG before shifting these funds. g. Contract Management Fee. The SBCCOG will receive a Contract Management Fee of $50,000 per year for administration of this MOA by the SBCCOG. Each PARTY will be assessed its proportionate share of the annual Contract Management Fee as shown in Table 4 of Exhibit B.
h. Reconciliation of this MOA. The SBCCOG and CITY will provide the PARTIES with an annual accounting of expenditures for the prior fiscal year, generally consistent with the format shown in Exhibit E. The annual accounting is intended to provide transparency regarding funds received, expenditures incurred, and any remaining balances associated with the WMG activities. At the end of the MOA, SBCCOG will provide the PARTIES with an accounting of actual expenditures, consistent with the format as shown in Exhibit E, within ninety (90) days of receipt of the necessary information from the CITY. Any unexpended funds held by SBCCOG at the termination of this MOA will be rolled-over to cover expenses in any subsequent MOA. PARTIES may request in writing a refund or credit of any 2026 – 2031 Dominguez Channel Watershed MOA

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unexpended funds by the SBCCOG, in accordance with the distributed cost formula set forth in Table 1 of Exhibit B.

Section 9. THE PARTIES FURTHER AGREE:
a. Documentation. The PARTIES agree to promptly provide at no cost to the CITY all requested information and documentation required by the MS4 Permit in their possession that the CITY, in its discretion, deems to be necessary or helpful for the performance of the MONITORING SERVICES and WMP-RELATED TASKS. b. Access. During the term of this MOA on an as-needed basis, each PARTY shall allow the CITY or its contractor reasonable access and entry to land, facilities and structures owned, operated, or controlled by the PARTY, which access and entry are necessary or helpful for the CITY or its contractor to perform MONITORING SERVICES and WMP-RELATED TASKS (FACILITIES). The FACILITIES shall include but not be limited to the PARTY's storm drains, channels, catch basins, and similar, provided, however, that prior to entering any of the PARTIES’ FACILITIES, the CITY or its contractor, as applicable, shall provide seventy-two (72) hours’ advance written notice of entry to the applicable PARTY, or in the cases where seventy-two (72) hours’ advance written notice is not possible, such as in cases of unforeseen wet weather, the CITY or its contractor shall provide written notice to the applicable PARTY as early as reasonably possible. Any PARTY, including LACFCD, agrees to provide the CITY or its contractor a "no-fee" Access Permit to its FACILITIES. This Access Permit does not cover any fees that may be required for Construction Permits for the installation of permanent monitoring equipment. The CITY shall secure any required necessary permits prior to entry. c. Consensus. The PARTIES agree that consensus in the DC WMG will be determined by a majority (50%) voting of the DC WMG members based on each PARTY’s percentage land area of the Watershed as shown in Exhibit D.

Consensus shall be reached using an email vote of DC WMG members. Any PARTY that does not respond to a vote within five (5) business days shall be considered to support the majority consensus.
d. Participation. Each PARTY shall designate an individual to provide representation at the DC WMG that is authorized to provide official input on behalf of the PARTY.

Each PARTY shall ensure that a representative attends the DC WMG meetings and, if necessary, responds to email communication.
e. Additional Activities. The PARTIES agree that additional activities may arise in the course of implementing this MOA, and there may be interest in utilizing funds collected through this MOA or pursuing additional funds, including but not limited to the Safe Clean Water Program and the payment of a penalty or fine from the Regional Board. The DC WMG, led by the DC WMG Lead Agency, shall discuss and determine additional activities to be completed and the implementation approach to completing those projects. The DC WMG will determine which 2026 – 2031 Dominguez Channel Watershed MOA

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activities to pursue in accordance with the consensus process defined in Section 9(c). Any other PARTY that does not desire to participate in an additional activity can submit a written request to the SBCCOG that they do not desire to be part of the activity. The non-participating PARTY will not be responsible for its proportionate share of funds to complete the additional project, and the cost will be recalculated amongst the remaining PARTIES.

Section 10. Indemnification. Each PARTY shall indemnify, defend, and hold harmless each other PARTY, on a pro rata basis, including its special districts, their member agencies, elected and appointed officers, employees, agents, attorneys, and designated volunteers from and against any and all liability, including, but not limited to, demands, claims, actions, fees, costs, and expenses (including reasonable attorneys and expert witness fees), arising from or connected with this MOA; provided, however, that no PARTY shall indemnify another PARTY for that PARTY’s own negligence or willful misconduct. Each PARTY’s duty to defend, indemnify and hold harmless shall survive and continue in full force and effect after withdrawal of any PARTY from this Agreement, including as to the withdrawing PARTY, or expiration or termination of this MOA for any reason with respect to any Claims that occurred before the date of such withdrawal, expiration or termination.

Section 11. Termination
a. Noticing. Any PARTY may withdraw from this MOA for any reason, in whole or part, by giving the SBCCOG and the Regional Board thirty (30) days written notice thereof. Upon receipt of the notice of withdrawal, the CITY shall inform all other PARTIES in writing of the pending withdrawal. Withdrawing PARTIES shall remain wholly responsible for their proportional share of the costs of MONITORING SERVICES and WMP-RELATED TASKS, set forth in Exhibit B to this MOA, for any fiscal year for which the PARTY has not withdrawn. Withdrawing PARTIES shall not be entitled to any refunds. Each PARTY shall also be responsible for the payment of its own fines, penalties or costs incurred as a result of the nonperformance of the CIMP and/or WMP. Upon withdrawal by the SBCCOG, the PARTIES shall meet and confer to designate an alternate organization to accept the SBCCOG's responsibilities under this MOA.
b. Default. If a PARTY fails to comply with any of the terms or conditions of this MOA, that PARTY shall forfeit its rights to the work completed through this MOA, but no such forfeiture shall occur unless and until the defaulting PARTY has first been given notice of its default and a reasonable opportunity to cure the alleged default. c. Equipment Ownership. Devices such as automatic sampling stations - inclusive of a cabinet, sampling equipment, ancillary devices, power supplies (EQUIPMENT) may be installed to implement the CIMP. Any PARTY voluntarily terminating membership will not be entitled to a refund for the portion of the share paid to acquire and to operate the EQUIPMENT nor for the remaining value of the EQUIPMENT, if any. The operational life of such EQUIPMENT is approximately 2026 – 2031 Dominguez Channel Watershed MOA

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seven years, and after which it may be obsolete or may require major remodel or replacement of electrical and mechanical components costing equivalent to a purchase of a new EQUIPMENT. The remaining PARTIES agree to own, operate and maintain and or replace the EQUIPMENT.

Section 12. General Provisions
a. Notices. Any notices, bills, invoices, or reports relating to this MOA, and any request, demand, statement, or other communication required or permitted hereunder shall be in writing and shall be delivered to the representatives of the PARTIES at the addresses set forth in Exhibit C attached hereto and incorporated herein by reference. PARTIES shall promptly notify each other of any change of contact information, including personnel changes, provided in Exhibit C. Written notice shall include notice delivered via email or fax. A notice shall be deemed to have been received on (a) the date of delivery, if delivered by hand during regular business hours, or by confirmed facsimile or by email; or (b) on the third (3rd) business day following mailing by registered or certified mail (return receipt requested) to the addresses set forth in Exhibit C.
b. Administration. For the purposes of this MOA, the PARTIES and SBCCOG hereby designate as their respective representatives the persons named in Exhibit C. The designated representatives, or their respective designees, shall administer the terms and conditions of this MOA on behalf of their respective entities. Each of the persons signing below on behalf of a PARTY or the SBCCOG represents and warrants that he or she is authorized to sign this MOA on behalf of such entity. c. Relationship of the Parties. The PARTIES to this MOA are, and shall at all times remain as to each other, wholly independent entities. No PARTY shall have power to incur any debt, obligation, or liability on behalf of any other PARTY unless expressly provided to the contrary by this MOA. No employee, agent, or officer of a PARTY shall be deemed for any purpose whatsoever to be an agent, employee, or officer of another PARTY.
d. Amendment. The terms and provisions of this MOA may not be amended, modified, or waived, except by an instrument in writing signed by all non-delinquent PARTIES and the SBCCOG. Such amendments may be executed by those individuals listed in Exhibit C or by a person authorized to execute such amendment on behalf of each PARTY.
e. Law to Govern. This MOA is governed by, interpreted under, and construed and enforced in accordance with the laws of the State of California. In the event of litigation related to this MOA, venue in the State Superior Court or Federal District Court shall lie exclusively in the County of Los Angeles. 2026 – 2031 Dominguez Channel Watershed MOA

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f. No Presumption in Drafting. The PARTIES to this MOA agree that the general rule that an MOA is to be interpreted against the PARTY drafting it, or causing it to be prepared shall not apply.
g. Severability. If any provision of this MOA shall be determined by any court to be invalid, illegal, or unenforceable to any extent, then the remainder of this MOA shall not be affected, and this MOA shall be construed as if the invalid, illegal, or unenforceable provision had never been contained in this MOA. h. Entire Agreement. This MOA constitutes the entire agreement of the PARTIES to this MOA with respect to the subject matter hereof.
i. Waiver. Waiver by any PARTY to this MOA of any term, condition, or covenant of this MOA shall not constitute a waiver of any other term, condition, or covenant.

Waiver by any PARTY to this MOA of any breach of the provisions of this MOA shall not constitute a waiver of any other provision, nor a waiver of any subsequent breach or violation of any provision of this MOA.
j. Counterparts. This MOA may be executed in any number of counterparts, which execution may be by electronic means as defined in Civil Code section 1633.2 and each of which shall be an original, but all of which taken together shall constitute but one and the same instrument, provided, however, that such counterparts shall have been delivered to all PARTIES to this MOA.
k. Successors. This MOA shall be binding upon and shall inure to the benefit of the successors of the respective PARTIES. No PARTY may assign any right or obligation hereunder without the written consent of a consensus of the other PARTIES, as determined pursuant to Section 9(c).
l. All PARTIES to this MOA have been represented by counsel in the preparation and negotiation of this MOA. Accordingly, this MOA shall be construed according to its fair language.

IN WITNESS WHEREOF, the PARTIES have caused this MOA to be executed by their duly authorized representatives and affixed as of the date of signature of the PARTIES:
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CITY OF LOS ANGELES
Date: ___________________ By: _________________________ Steve S. Kang, President
Board of Public Works
ATTEST:
_________________________
Patrice Lattimore
City Clerk
APPROVED AS TO FORM:

Hydee Feldstein Soto
City Attorney
By: _________________________
Adena M. Hopenstand
Deputy City Attorney
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COUNTY OF LOS ANGELES
By
Mark Pestrella, Director of Public Works Date
APPROVED AS TO FORM:

Dawyn R. Harrison
County Counsel
By
Deputy Date

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LOS ANGELES COUNTY FLOOD CONTROL DISTRICT
By
Mark Pestrella, Chief Engineer Date
APPROVED AS TO FORM:

Dawyn R. Harrison
County Counsel
By
Deputy Date
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CITY OF CARSON
By
David C. Roberts
City Manager
Date
ATTEST:

By
Dr. Khaleah K. Bradshaw
City Clerk
APPROVED AS TO FORM:

By
Sunny Soltani
City Attorney
Date
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CITY OF EL SEGUNDO
By
Darrell George
City Manager
Date
ATTEST:

By
Susan Truax
City Clerk
APPROVED AS TO FORM:

By
Mark D. Hensley
City Attorney
Date
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CITY OF HAWTHORNE
By
Vontray Norris
City Manager
Date
ATTEST:

By
Dayna Williams-Hunter
City Clerk
APPROVED AS TO FORM:

By
David Caceres
City Attorney
Date
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CITY OF INGLEWOOD
By
James T. Butts, Jr.

Mayor
Date
ATTEST:

By
Aisha L. Thompson
City Clerk
APPROVED AS TO FORM:

By
Rick R. Olivarez
City Attorney
Date
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CITY OF LAWNDALE
By
Lucho Rodriguez
Acting City Manager
Date
ATTEST:

By
Erica Harbison
City Clerk
APPROVED AS TO FORM:

By
Gregory Murphy
City Attorney
Date
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CITY OF LOMITA
By
Cindy Segawa
Mayor
Date
ATTEST:

By
Kathleen Horn-Gregory
City Clerk
APPROVED AS TO FORM:

By
Trevor Rusin
City Attorney
Date
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South Bay Cities Council of Governments
Date: ___________________ By: _________________________

ATTEST:

By: _________________________
APPROVED AS TO FORM:

By: _________________________

Counsel for the SBCCOG
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EXHIBIT A
MOA Scope of Work
The purpose of this MOA is to facilitate compliance by the DC WMG with the MS4 Permit. The tasks below outline the broadly-expected work anticipated to comply with the Permit.

MONITORING SERVICES
This includes any and all tasks required to comply with the monitoring requirements established in the MS4 Permit and associated documents. This includes but is not limited to implementation of the DC CIMP (Coordinated Integrated Monitoring Program), which includes but is not limited to the following activities:
● Receiving Water Monitoring
● Stormwater Outfall Monitoring
● Non-Stormwater Outfall Monitoring
● Urban Lakes Monitoring
● Data Management
● Capital, Operation, and Maintenance Activities
● Purchasing, maintaining, and replacing equipment (capital costs) necessary for monitoring activities
● Development of the monitoring sections to be included in the Annual Report (e.g., trends analysis, Total Maximum Daily Load (TMDL) attainment, summary of monitoring activities) ● Annual Reconciliation of the MONITORING SERVICES under the MOA ● This work may include additional activities and requirements based upon the March 2023 CIMP revisions, any other future CIMP revision, and subsequent requirements set by the Regional Board.

The CITY is responsible for completing the MONITORING SERVICES in this MOA, including by utilizing consultant support services.

WMP-RELATED TASKS
This includes any and all tasks required to comply with the MS4 Permit, as well as other work that is determined to advance the Parties’ efforts in complying with the MS4 Permit. The DC WMG is required to complete the following activities as part of the DC Watershed Management Program (WMP). This includes but is not limited to the sub-tasks defined below:
● Annual Reporting (including the WMP Progress Report)
● Adaptive Management
● WMP Revisions
● Website management (lastormh2o.org)
● California Stormwater Quality Association (CASQA) Membership ● Coordination with the PARTIES and the Regional Board for MS4 Permit renewal as related to CIMP and WMP implementation
● Potential penalties or fines imposed by the Regional Board for Permit Notices of Violations or similar violations
Contracts regarding WMP-RELATED TASKS will be administered by the SBCCOG utilizing a consultant(s) selected in coordination with the DC WMG, unless otherwise determined by the DC WMG. The lead agency of the DC WMG will provide subject-matter expertise and project management support to the SBCCOG and its consultant(s) for the purposes of completing this task. 2026 – 2031 Dominguez Channel Watershed MOA

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CONTRACT ADMINISTRATION
This includes any and all tasks associated with administering this MOA, including but not limited to the following:
● Facilitate the development of agreements and subsequent amendments for the DC WMG ● Manage procurements, contracting, and contract administration for consultants and contractors, with the DC WMG Lead Agency providing subject-matter expertise and project management support. This could include establishing and managing a bench of technical consultants that could be utilized by any PARTY.
● Distribute invoices and collect payment from PARTIES
● Pay invoices from the CITY, upon receipt of invoice, as established in section 8(a) of the MOA ● Manage the MOA budget in coordination with the DC WMG Lead Agency ● Facilitate the preparation of DC WMG administrative procedures by DC WMG and ensure compliance with these procedures
● Annual Reconciliation of WMP-related tasks under the MOA The CONTRACT ADMINISTRATION tasks will be completed by SBCCOG.

Additional tasks may be identified in the process of complying with the MS4 Permit, at which point the DC WMG would determine the optimal approach to ensuring that the DC WMG remains in compliance with any and all aspects of the MS4 Permit and its associated documents. 2026 – 2031 Dominguez Channel Watershed MOA

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EXHIBIT B
MOA Cost Estimate Tables
Table 1. CIMP/WMP Implementation Invoicing Schedule 24
Table 2. Distribution of Total CIMP Implementation Costs 24 Table 2A. Distribution of Universal CIMP Costs (Shared Items) 25 Table 2A(i). Universal CIMP Costs (Shared Items) 25
Table 2B. Distribution of Dominguez Channel Sub-Watershed Monitoring Costs 26 Table 2B(i). Dominguez Channel Sub-Watershed Monitoring Costs 26 Table 2C. Distribution of Machado Lake Watershed Monitoring Costs 27 Table 2C(i). Machado Lake Watershed Monitoring Costs 27 Table 2D. Distribution of LA Harbor Watershed Monitoring Costs 28 Table 2D(i). LA Harbor Watershed Monitoring Costs 28
Table 3. Distribution of Total WMP Implementation & CASQA Membership Costs 29 Table 3A. Distribution of WMP Implementation Costs 29
Table 3A(i). WMP Implementation Costs 30
Table 3B. Distribution of CASQA Membership Fees 30
Table 4. Distribution of SBCCOG Contract Management Fees 31 2026 – 2031 Dominguez Channel Watershed MOA

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Table 1. CIMP/WMP Implementation Invoicing Schedule
Agency July 2026 July 2027 July 2028 July 2029 July 2030 Total Invoiced
(5 years)
Total Cost of DC MOA $1,482,221 $1,430,023 $1,700,895 $1,516,330 $1,527,673 $7,657,142 LACFCD $77,476 $69,592 $88,206 $73,661 $79,395 $388,330 City of Los Angeles $553,087 $541,669 $598,948 $569,598 $569,050 $2,832,352 County of Los Angeles $211,241 $203,133 $250,681 $216,566 $217,984 $1,099,605 City of Carson $324,875 $312,368 $387,648 $333,051 $335,611 $1,693,553 City of El Segundo $25,809 $25,123 $33,518 $26,533 $27,477 $138,460 City of Hawthorne $80,219 $78,086 $104,177 $82,468 $85,401 $430,351 City of Inglewood $80,061 $77,932 $103,972 $82,304 $85,232 $429,501 City of Lawndale $25,960 $25,271 $33,713 $26,688 $27,638 $139,270 City of Lomita $103,493 $96,849 $100,032 $105,461 $99,885 $505,720 Note:

Total Cost = Total CIMP (Table 2) + Total WMP & CASQA (Table 3) + SBCCOG Fee (Table 4) Table 2. Distribution of Total CIMP Implementation Costs Agency
Fiscal Year
26-27
Fiscal Year
27-28
Fiscal Year
28-29
Fiscal Year
29-30
Fiscal Year
30-31
5-Year Total
Total Cost of DC WMA CIMP $915,306 $846,320 $1,106,061 $910,059 $909,648 $4,687,394 LACFCD $51,502 $43,209 $61,407 $46,437 $51,738 $254,293 City of Los Angeles $346,734 $329,067 $382,259 $348,709 $343,841 $1,750,610 County of Los Angeles $128,674 $118,067 $163,979 $128,183 $127,873 $666,776 City of Carson $196,339 $179,941 $252,675 $195,462 $195,332 $1,019,749 City of El Segundo $12,382 $11,289 $19,418 $12,159 $12,822 $68,070 City of Hawthorne $38,484 $35,088 $60,351 $37,793 $39,853 $211,569 City of Inglewood $38,409 $35,019 $60,233 $37,718 $39,774 $211,153 City of Lawndale $12,454 $11,355 $19,531 $12,230 $12,898 $68,468 City of Lomita $90,328 $83,285 $86,208 $91,368 $85,517 $436,706 Note:

Total Cost = Universal Costs (Shared Items) + Dominguez Channel Sub-Watershed Costs + Machado Lake Watershed Costs + LA Harbor Costs. 2026 – 2031 Dominguez Channel Watershed MOA

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Table 2A. Distribution of Universal CIMP Costs (Shared Items) Agency
Area
(acres)
% of
Total
Area
Fiscal Year
26-27
Fiscal Year
27-28
Fiscal Year
28-29
Fiscal Year
29-30
Fiscal Year
30-31
5-Year Total
Universal Costs (shared) 50,444.88 100% $439,525 $431,805 $472,945 $434,296 $437,882 $2,216,453 LACFCD1-- -- $21,976 $21,590 $23,647 $21,715 $21,894 $110,822 City of Los Angeles 19,243.21 38.15% $159,282 $156,485 $171,394 $157,387 $158,687 $803,235 County of Los Angeles 7,699.69 15.26% $63,733 $62,613 $68,579 $62,975 $63,495 $321,395 City of Carson 11,986.38 23.76% $99,215 $97,472 $106,759 $98,035 $98,844 $500,325 City of El Segundo 1,252.18 2.48% $10,365 $10,183 $11,153 $10,241 $10,326 $52,268 City of Hawthorne 3,891.93 7.72% $32,215 $31,649 $34,664 $31,832 $32,094 $162,454 City of Inglewood 3,884.28 7.70% $32,152 $31,587 $34,596 $31,769 $32,031 $162,135 City of Lawndale 1,259.51 2.50% $10,425 $10,242 $11,218 $10,301 $10,387 $52,573 City of Lomita 1,227.70 2.43% $10,162 $9,984 $10,935 $10,041 $10,124 $51,246 1 LACFCD is responsible for 5% of the Universal Costs, which is subtracted before distributing the cost among the other agencies.

Table 2A(i). Universal CIMP Costs (Shared Items)
CIMP Monitoring Component
Fiscal Year
26-27
Fiscal Year
27-28
Fiscal Year
28-29
Fiscal Year
29-30
Fiscal Year
30-31
Labor $ 80,000 $ 80,000 $ 90,000 $ 80,000 $ 80,000
Lab Analysis $ 182,170 $ 156,513 $ 159,896 $ 156,513 $ 159,896 Lab Data Handling Fee (15%) $ 27,326 $ 23,477 $ 23,984 $ 23,477 $ 23,984 Lab Analysis (TIEs) $ 16,500 $ 16,500 $ 16,500 $ 16,500 $ 16,500 Contract Services $ 50,000 $ 50,000 $ 80,000 $ 50,000 $ 50,000 Equipment $ 8,000 $ 25,000 $ 8,000 $ 15,000 $ 8,000
Administrative Fee (5%) $ 18,200 $ 17,574 $ 18,919 $ 17,074 $ 16,919 Sub-Total $ 382,196 $ 369,064 $ 397,299 $ 358,564 $ 355,299 Annual Escalation (2%) -- $ 7,381 $ 16,051 $ 21,947 $ 29,288 Contingency (15%) $ 57,329 $ 55,360 $ 59,595 $ 53,785 $ 53,295 Total $ 439,525 $ 431,805 $ 472,945 $ 434,296 $ 437,882 2026 – 2031 Dominguez Channel Watershed MOA

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Table 2B. Distribution of Dominguez Channel Sub-Watershed Monitoring Costs Agency
Area
(acres)
% of
Total
Area
Fiscal Year
26-27
Fiscal Year
27-28
Fiscal Year
28-29
Fiscal Year
29-30
Fiscal Year
30-31
5-Year Total
Dominguez Channel SubWatershed Monitoring
33,785.82 100% $57,288 $31,425 $234,728 $54,470 $70,897 $448,808 LACFCD1-- -- $2,864 $1,571 $11,736 $2,724 $3,545 $22,440 City of Los Angeles 5,986.68 17.72% $9,644 $5,290 $39,513 $9,169 $11,934 $75,550 County of Los Angeles 6,755.80 20.00% $10,883 $5,970 $44,589 $10,347 $13,468 $85,257 City of Carson 10,755.44 31.83% $17,325 $9,504 $70,988 $16,473 $21,441 $135,731 City of El Segundo 1,252.18 3.71% $2,017 $1,106 $8,265 $1,918 $2,496 $15,802 City of Hawthorne 3,891.93 11.52% $6,269 $3,439 $25,687 $5,961 $7,759 $49,115 City of Inglewood 3,884.28 11.50% $6,257 $3,432 $25,637 $5,949 $7,743 $49,018 City of Lawndale 1,259.51 3.73% $2,029 $1,113 $8,313 $1,929 $2,511 $15,895 1 LACFCD is responsible for 5% of the Dominguez Channel Sub-Watershed Cost, which is subtracted before distributing the cost among the other agencies.

Table 2B(i). Dominguez Channel Sub-Watershed Monitoring Costs CIMP Monitoring Component
Fiscal Year
26-27
Fiscal Year
27-28
Fiscal Year
28-29
Fiscal Year
29-30
Fiscal Year
30-31
Labor $ 8,000 $ 8,000 $ 9,000 $ 8,000 $ 8,000
Lab Analysis $ 26,473 $ 3,983 $ 147,647 $ 18,983 $ 32,858 Lab Data Handling Fee (15%) $ 3,971 $ 597 $ 22,147 $ 2,847 $ 4,929 Lab Analysis (TIEs) -- -- -- -- --
Contract Services $ 8,000 $ 8,000 $ 8,000 $ 8,000 $ 8,000 Equipment $ 1,000 $ 5,000 $ 1,000 $ 5,000 $ 1,000
Administrative Fee (5%) $ 2,372 $ 1,279 $ 9,390 $ 2,142 $ 2,739 Sub-Total $ 49,816 $ 26,859 $ 197,184 $ 44,972 $ 57,526 Annual Escalation (2%) -- $ 537 $ 7,966 $ 2,753 $ 4,742 Contingency (15%) $ 7,472 $ 4,029 $ 29,578 $ 6,746 $ 8,629 Total $ 57,288 $ 31,425 $ 234,728 $ 54,470 $ 70,897
2026 – 2031 Dominguez Channel Watershed MOA

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Table 2C. Distribution of Machado Lake Watershed Monitoring Costs Agency
Area
(acres)
% of
Total
Area
Fiscal Year
26-27
Fiscal Year
27-28
Fiscal Year
28-29
Fiscal Year
29-30
Fiscal Year
30-31
5-Year Total
Machado Lake
Watershed Monitoring1 5,228.39 100% $363,747 $332,597 $341,545 $369,013 $342,087 $1,748,989 LACFCD2-- -- $18,187 $16,630 $17,077 $18,451 $17,104 $87,449 City of Los Angeles 1,998.43 38.22% $132,082 $120,771 $124,020 $133,994 $124,217 $635,084 County of Los Angeles 809.66 15.49% $53,513 $48,930 $50,247 $54,287 $50,326 $257,303 City of Carson 1,207.37 23.09% $79,799 $72,965 $74,928 $80,954 $75,047 $383,693 City of Lomita 1,212.93 23.20% $80,166 $73,301 $75,273 $81,327 $75,393 $385,460 Wilmington Drain Bed Sediment Monitoring
(LACFCD)3
$6,040 $940 $6,426 $982 $6,585 $20,973
1 Machado Lake Watershed Monitoring includes: In-Lake monitoring for the Nutrients & Toxics TMDLs, Non-Stormwater Outfall Monitoring, Stormwater Outfall Monitoring in Project 510 and 77 drains, and Dry & Wet Weather monitoring in Wilmington Drain. 2 LACFCD is responsible for 5% of Machado Lake Watershed Monitoring cost which is subtracted before distributing the cost among the other agencies.
3 LACFCD is responsible for 100% of Wilmington Drain Bed Sediment Monitoring.

Table 2C(i). Machado Lake Watershed Monitoring Costs
CIMP Monitoring Component
Fiscal Year
26-27
Fiscal Year
27-28
Fiscal Year
28-29
Fiscal Year
29-30
Fiscal Year
30-31
Labor $ 71,200 $ 71,200 $ 80,100 $ 71,200 $ 71,200
Lab Analysis $ 181,774 $ 143,073 $ 149,698 $ 164,310 $ 149,698 Lab Data Handling Fee (15%) $ 27,266 $ 21,461 $ 22,455 $ 24,647 $ 22,455 Lab Analysis (TIEs) -- -- -- -- --
Contract Services $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 15,000 Equipment $ 6,000 $ 20,000 $ 6,000 $ 15,000 $ 6,000
Administrative Fee (5%) $ 15,062 $ 13,537 $ 13,663 $ 14,508 $ 13,218 Sub-Total $ 316,302 $ 284,271 $ 286,916 $ 304,665 $ 277,571 Annual Escalation (2%) -- $ 5,685 $ 11,591 $ 18,648 $ 22,881 Contingency (15%) $ 47,445 $ 42,641 $ 43,037 $ 45,700 $ 41,636 Total $ 363,747 $ 332,597 $ 341,545 $ 369,013 $ 342,087 2026 – 2031 Dominguez Channel Watershed MOA

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Table 2D. Distribution of LA Harbor Watershed Monitoring Costs Agency
Area
(acres)
% of
Total
Area
Fiscal Year
26-27
Fiscal Year
27-28
Fiscal Year
28-29
Fiscal Year
29-30
Fiscal Year
30-31
5-Year Total
LA Harbor Monitoring 11,392.33 100% $48,706 $49,553 $50,417 $51,298 $52,197 $252,171 LACFCD1-- -- $2,435 $2,478 $2,521 $2,565 $2,610 $12,609 City of Los Angeles 11,258.10 98.82% $45,726 $46,521 $47,332 $48,159 $49,003 $236,741 County of Los Angeles 134.23 1.18% $545 $554 $564 $574 $584 $2,821 1 LACFCD is responsible for 5% of the LA Harbor Cost, which is subtracted before distributing the cost among the other agencies.

Notes:

LA Harbor Monitoring includes the cost of monitoring the Main Ship Channel (HW-07).

Monitoring for the LA Harbor Bacteria TMDL at Cabrillo Beach (CB-01 and CB-02) is the sole responsibility of City of Los Angeles and is not included in the cost sharing.

Monitoring for the Greater Harbors portion of the Dominguez Channel Toxics TMDL is funded under a separate MOA.

The cities of Carson (23.57 ac) and Lomita (14.77 ac) have small portions of land within the LA Harbor sub-watershed; but are not included in the cost sharing.

Table 2D(i). LA Harbor Watershed Monitoring Costs
CIMP Monitoring Component
Fiscal Year
26-27
Fiscal Year
27-28
Fiscal Year
28-29
Fiscal Year
29-30
Fiscal Year
30-31
Labor $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000
Lab Analysis $ 26,379 $ 26,379 $ 26,379 $ 26,379 $ 26,379 Lab Data Handling Fee (15%) $ 3,957 $ 3,957 $ 3,957 $ 3,957 $ 3,957 Lab Analysis (TIEs) -- -- -- -- --
Contract Services -- -- -- -- --
Equipment -- -- -- -- --
Administrative Fee (5%) $ 2,017 $ 2,017 $ 2,017 $ 2,017 $ 2,017 Sub-Total $ 42,353 $ 42,353 $ 42,353 $ 42,353 $ 42,353
Annual Escalation (2%) -- $ 847 $ 1,711 $ 2,592 $ 3,491 Contingency (15%) $ 6,353 $ 6,353 $ 6,353 $ 6,353 $ 6,353 Total $ 48,706 $ 49,553 $ 50,417 $ 51,298 $ 52,197
2026 – 2031 Dominguez Channel Watershed MOA

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Table 3. Distribution of Total WMP Implementation & CASQA Membership Costs Agency
Fiscal Year
26-27
Fiscal Year
27-28
Fiscal Year
28-29
Fiscal Year
29-30
Fiscal Year
30-31
5-Year Total
Total WMP & CASQA1 $516,915 $533,703 $544,834 $556,271 $568,025 $2,719,748 LACFCD2 $23,474 $23,883 $24,299 $24,724 $25,157 $121,537 City of Los Angeles $188,233 $194,482 $198,569 $202,769 $207,089 $991,142 County of Los Angeles $75,317 $77,816 $79,452 $81,133 $82,861 $396,579 City of Carson $117,249 $121,140 $123,686 $126,302 $128,992 $617,369 City of El Segundo $12,248 $12,655 $12,921 $13,195 $13,476 $64,495 City of Hawthorne $38,070 $39,333 $40,161 $41,010 $41,883 $200,457 City of Inglewood $37,995 $39,256 $40,082 $40,929 $41,801 $200,063 City of Lawndale $12,320 $12,730 $12,996 $13,272 $13,554 $64,872 City of Lomita $12,009 $12,408 $12,668 $12,937 $13,212 $63,234 1 Total Cost = WMP Implementation (Table 3A) + CASQA Membership Fees (Table 3B) 2 LACFCD is responsible for 5% of WMP Implementation Costs (including Program Management, Annual Escalation, and Contingency), which is subtracted before distributing the cost among the other agencies.

Table 3A. Distribution of WMP Implementation Costs
Agency
Area
(acres)
% of
Total
Area
Fiscal Year
26-27
Fiscal Year
27-28
Fiscal Year
28-29
Fiscal Year
29-30
Fiscal Year
30-31
5-Year
Total
Total WMP Costs 50,444.88 100% $469,488 $477,653 $485,981 $494,476 $503,140 $2,430,738 LACFCD1-- -- $23,474 $23,883 $24,299 $24,724 $25,157 $121,537 City of Los Angeles 19,243.21 38.15% $170,141 $173,100 $176,118 $179,196 $182,337 $880,892 County of Los Angeles 7,699.69 15.26% $68,078 $69,261 $70,469 $71,701 $72,957 $352,466 City of Carson 11,986.38 23.76% $105,979 $107,822 $109,702 $111,619 $113,575 $548,697 City of El Segundo 1,252.18 2.48% $11,071 $11,264 $11,460 $11,661 $11,865 $57,321 City of Hawthorne 3,891.93 7.72% $34,411 $35,009 $35,620 $36,242 $36,877 $178,159 City of Inglewood 3,884.28 7.70% $34,343 $34,940 $35,550 $36,171 $36,805 $177,809 City of Lawndale 1,259.51 2.50% $11,136 $11,330 $11,527 $11,729 $11,934 $57,656 City of Lomita 1,227.70 2.43% $10,855 $11,044 $11,236 $11,433 $11,633 $56,201 1 LACFCD is responsible for 5% of WMP Implementation Costs (including Program Management, Annual Escalation, and Contingency), which is subtracted before distributing the cost among the other agencies.

2026 – 2031 Dominguez Channel Watershed MOA

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Table 3A(i). WMP Implementation Costs
WMP Component
Fiscal Year
26-27
Fiscal Year
27-28
Fiscal Year
28-29
Fiscal Year
29-30
Fiscal Year
30-31
5-Year Total
Semi-Annual Report (June) $ 40,000 $ 40,000 $ 40,000 $ 40,000 $ 40,000 $ 200,000 Annual Reporting Package1(December) $ 80,000 $ 80,000 $ 80,000 $ 80,000 $ 80,000 $ 400,000 WMP Revision/RAA/Adaptive
Management
$ 60,000 $ 60,000 $ 60,000 $ 60,000 $ 60,000 $ 300,000
Special Studies/Regulatory Support $ 175,000 $ 175,000 $ 175,000 $ 175,000 $ 175,000 $ 875,000 Program Management (15%) $ 53,250 $ 53,250 $ 53,250 $ 53,250 $ 53,250 $ 266,250 Sub-Total $ 408,250 $ 408,250 $ 408,250 $ 408,250 $ 408,250 $ 2,041,250 Annual Escalation (2%) -- $ 8,165 $ 16,493 $ 24,988 $ 33,653 $ 83,299 Contingency (15%) $ 61,238 $ 61,238 $ 61,238 $ 61,238 $ 61,238 $ 306,188 Total $ 469,488 $ 477,653 $ 485,981 $ 494,476 $ 503,140 $ 2,430,738 1 Annual Reporting Package includes semi-annual WMP Progress Report.

Table 3B. Distribution of CASQA Membership Fees
Agency
Area
(acres)
% of Total
Area
Fiscal Year
26-27
Fiscal Year
27-28
Fiscal Year
28-29
Fiscal Year
29-30
Fiscal Year
30-31
5-Year Total
Total CASQA Fees1 50,444.88 100% $47,427 $56,050 $58,853 $61,795 $64,885 $289,010 LACFCD2-- -- -- -- -- -- -- --
City of Los Angeles 19,243.21 38.15% $18,092 $21,382 $22,451 $23,573 $24,752 $110,250 County of Los Angeles 7,699.69 15.26% $7,239 $8,555 $8,983 $9,432 $9,904 $44,113 City of Carson 11,986.38 23.76% $11,270 $13,318 $13,984 $14,683 $15,417 $68,672 City of El Segundo 1,252.18 2.48% $1,177 $1,391 $1,461 $1,534 $1,611 $7,174 City of Hawthorne 3,891.93 7.72% $3,659 $4,324 $4,541 $4,768 $5,006 $22,298 City of Inglewood 3,884.28 7.70% $3,652 $4,316 $4,532 $4,758 $4,996 $22,254 City of Lawndale 1,259.51 2.50% $1,184 $1,400 $1,469 $1,543 $1,620 $7,216 City of Lomita 1,227.70 2.43% $1,154 $1,364 $1,432 $1,504 $1,579 $7,033 1 Assumes 5% annual escalation after FY 27-28.
2 LACFCD retains its own separate CASQA membership.

2026 – 2031 Dominguez Channel Watershed MOA

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Table 4. Distribution of SBCCOG Contract Management Fees Agency
Area
(acres)
% of Total
Area
Fiscal Year
26-27
Fiscal Year
27-28
Fiscal Year
28-29
Fiscal Year
29-30
Fiscal Year
30-31
5-Year Total
Total SBCCOG Fees 50,444.88 100% $50,000 $50,000 $50,000 $50,000 $50,000 $250,000 LACFCD1-- -- $2,500 $2,500 $2,500 $2,500 $2,500 $12,500 City of Los Angeles 19,243.21 38.15% $18,120 $18,120 $18,120 $18,120 $18,120 $90,600 County of Los Angeles 7,699.69 15.26% $7,250 $7,250 $7,250 $7,250 $7,250 $36,250 City of Carson 11,986.38 23.76% $11,287 $11,287 $11,287 $11,287 $11,287 $56,435 City of El Segundo 1,252.18 2.48% $1,179 $1,179 $1,179 $1,179 $1,179 $5,895 City of Hawthorne 3,891.93 7.72% $3,665 $3,665 $3,665 $3,665 $3,665 $18,325 City of Inglewood 3,884.28 7.70% $3,657 $3,657 $3,657 $3,657 $3,657 $18,285 City of Lawndale 1,259.51 2.50% $1,186 $1,186 $1,186 $1,186 $1,186 $5,930 City of Lomita 1,227.70 2.43% $1,156 $1,156 $1,156 $1,156 $1,156 $5,780 1 LACFCD is responsible for 5% of the Total SBCCOG Fee, which is subtracted before distributing the cost among the other agencies. 2026 – 2031 Dominguez Channel Watershed MOA

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EXHIBIT C
Dominguez Channel WMP/CIMP Responsible Agencies Representatives and SBCCOG Contact
Agency Address Agency Contact
City of Los Angeles
Department of Public Works
Bureau of Sanitation, Watershed
Protection Division
1149 S. Broadway
Los Angeles, CA 90015
Taraneh Nik-Khah
E-mail: [email protected]
Phone: (213) 393-1645
County of Los Angeles
Department of Public Works
Stormwater Quality Division,
Building A-9 East, 1st Floor
900 South Fremont Avenue
Alhambra, CA 91803-1331
Hannah Dewey
E-mail: [email protected]
Phone: (626) 300-4665
Los Angeles County Flood Control
District
Department of Public Works
Stormwater Quality Division,
Building A-9 East, 1st Floor
900 South Fremont Avenue
Alhambra, CA 91803-1331
Jalaine Verdiner
E-mail: [email protected]
Phone: (626) 300-4666
City of Carson
Office of the City Manager
701 E. Carson Street
Carson, CA 90749
David C. Roberts, City Manager
E-mail: [email protected]
Phone: (310) 952-1730
Roland Jen
E-mail: [email protected]
Phone: (310) 952-1700 ext. 1814
City of El Segundo
350 Main Street
El Segundo, CA 90245-3895
Cheryl Ebert, City Engineer
E-mail: [email protected]
Phone: (310) 524-2321
City of Hawthorne
4455 West 126th Street
Hawthorne, CA 90250-4482
David Esfandi
E-mail: [email protected]
Phone: (310) 349-2980
Akbar Farokhi, Public Works Director
E-mail: [email protected]
Phone: (310) 349-2985
2026 – 2031 Dominguez Channel Watershed MOA

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City of Inglewood
1 W. Manchester Blvd., 3rd Floor
Inglewood, CA 90301-1750
Tony Olmos
E-mail: [email protected]
Phone: (310) 412-5333
Anna Groehnert
E-mail: [email protected]
Phone: (310) 412-5333
City of Lawndale
Office of the City Manager
14717 Burin Avenue
Lawndale, CA 90260
Raylette Felton
E-mail: [email protected]
Phone: (310) 371-3202
Fax: (310) 371-8877
City of Lomita
24300 Narbonne Avenue
Lomita, CA 90717
Andrew Vialpando, City Manager
E-mail: [email protected]
Phone: (310) 325-7110 ext. 115
Fax: (310) 325-4024
South Bay Cities Council of
Governments
357 Van Ness Way, Suite 110
Torrance, CA 90501
Jacki Bacharach, Executive Director
E-mail: [email protected]
Phone: (310) 371-7222
2026 – 2031 Dominguez Channel Watershed MOA

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EXHIBIT D
Dominguez Channel Watershed Management Area Group
2026 – 2031 Dominguez Channel Watershed MOA

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EXHIBIT E
Reconciliation Template
[the line items shown in this Exhibit are placeholders and are subject to change]

CIMP & WMP RECONCILIATION

MONITORING SERVICES FY
26-27
FY
27-28
FY
28-29
FY
29-30
FY
30-31
Total
Budget (MOA) $
Actual $
Balance $
WMP-RELATED TASKS Budget
(MOA)
Actual
(To Date) Balance
Semi-Annual Progress Report $
Annual Reporting Package $
WMP Revision/RAA/Adaptive Management $
Report of Waste Discharge (ROWD) $
Special Studies/Projects $
Total $

IIP CONTRACTS
NPDES Permittee Contract Amount Balance
$
CITY OF CARSON 701 East Carson Street
Report to Honorable Mayor and City Council
Tuesday, October 6, 2026, 5:00 PM
CONSENT 26.

To: Honorable Mayor and City Council
From: Dr. Arlington Rodgers, Director of Public Works PW Engineering Subject: CONSIDER APPROVAL OF AMENDMENT NO. 1 TO THE CONTRACT SERVICES AGREEMENT WITH RON’S MAINTENANCE, INC. TO EXTEND CITYWIDE CATCH BASIN CLEANING AND MAINTENANCE

SERVICES FOR ONE ADDITIONAL YEAR (CITY COUNCIL)
I. SUMMARY
On October 5, 2023, the City of Carson entered into a three-year Contract Services Agreement with Ron's Maintenance, Inc. to provide cleaning and maintenance services for the City's storm drain catch basins. Under the agreement, the contractor performs three scheduled cleanings of the City's catch basins each year, along with additional as-needed maintenance and catch basin stenciling services. The original agreement was approved for a total amount not to exceed $668,265 (Exhibit No. 1). The current three-year contract term expires on October 4, 2026. However, the agreement provides the City with the option to extend the contract for up to three additional one-year periods at the same established pricing. Staff has been satisfied with the contractor's performance and recommends exercising the first one-year extension option to maintain uninterrupted catch basin cleaning and maintenance services.

Consequently, staff recommends that the City Council approve Amendment No. 1 to extend the agreement with Ron's Maintenance, Inc. for one additional year, through October 4, 2027, and authorize an additional $250,000 for services during the extension period. Approval would increase the total contract amount from $668,265 to a revised not-to-exceed amount of $918,265.

II. RECOMMENDATION
TAKE the following actions:

1. APPROVE the proposed Amendment No. 1 to the Contract Services Agreement with Ron’s Maintenance, Inc., extending the contract term for one additional year, through October 4, 2027, and authorizing an additional $250,000, for a revised total contract amount not to exceed $918,265; and,

2. AUTHORIZE the Mayor to execute the proposed Amendment No. 1 to the Contract Services Agreement, following approval as to form by the City Attorney.

III. ALTERNATIVES

1. DO NOT APPROVE the proposed Amendment No. 1 to the Contract Services Agreement with Ron’s Maintenance, Inc. If the amendment is not approved, staff would need to identify an alternative method for providing the catch basin cleaning and maintenance services necessary to support the City’s stormwater system and applicable regulatory requirements.

2. TAKE any other action the City Council deems appropriate and consistent with applicable law.

IV. BACKGROUND
The City is required to maintain its storm drain system in a manner that reduces the amount of trash, debris, and other pollutants entering local waterways. These requirements are established through the National Pollutant Discharge Elimination System (NPDES) Permit, which regulates stormwater and other runoff that enters municipal storm drain systems and ultimately flows to rivers, channels, creeks, and the ocean. Catch basins are an important part of the City's storm drain system. They are typically located along streets and collect stormwater before it enters underground storm drains. In addition to rainwater, catch basins can collect trash, leaves, sediment, and other debris. Pollutants such as bacteria, nutrients, pesticides, and other contaminants can also attach to this material and be carried downstream. Regular inspection and cleaning of catch basins therefore helps maintain proper drainage, reduce the amount of pollution entering local waterways, and support the City's compliance with applicable water-quality requirements. Under NPDES Permit No. CAS004004, the City is responsible for maintaining approximately 1,937 catch basins located throughout Carson. These catch basins must be routinely inspected and cleaned to maintain proper operation of the storm drain system and meet applicable water-quality requirements. To satisfy these requirements and help prepare the drainage system for storm events, the City cleans each catch basin a minimum of three times per year.

On August 24, 2023, the City issued a Request for Proposals (RFP) seeking qualified contractors to provide catch basin cleaning services. An RFP is a competitive procurement process through which the City evaluates firms based on their qualifications, proposed approach, cost, and other established criteria. Proposals were received on September 6, 2023, and, following completion of the City's evaluation process, the City Council awarded the contract to Ron's Maintenance, Inc. on October 3, 2023. Since the contract was awarded, Ron's Maintenance has completed nine rounds of cleaning for the City's approximately 1,937 catch basins (Exhibit No. 2). The contractor currently charges $35 per catch basin cleaned, consistent with the pricing established through the original competitive procurement process. The original agreement also provides the City with the option, at its discretion, to extend the contract for up to three additional one-year periods. The proposed Amendment No. 1 would exercise the first of these one-year extension options while maintaining the existing contract rate of $35 per catch basin.

The original agreement anticipated $222,755 in expenditures during the first one-year extension period. Staff recommends establishing a total authorization of $250,000 for this extension year, an increase of $27,245 above the amount originally anticipated. The additional authorization would provide sufficient capacity to address supplemental catch basin cleaning or other eligible services that may be needed during the year, including additional work associated with storm events or other conditions, provided that such work remains within the approved scope of the contract. The additional authorization does not change the contractor's established rate of $35 per catch basin. Maintaining uninterrupted catch basin cleaning services is particularly important as the City prepares for the upcoming wet season. Allowing the existing contract to continue provides the City with an established contractor familiar with Carson's storm drain system while maintaining the competitively established pricing from the original agreement. Regular cleaning also helps reduce the potential for accumulated trash and debris to interfere with drainage and enter local waterways.

Consequently, staff recommends that the City Council approve proposed Amendment No. 1 to the Contract Services Agreement with Ron’s Maintenance, Inc., extending catch basin cleaning and related services for one additional year and authorizing up to $250,000 for services during the extension period. Approval would increase the total contract amount to an amount not to exceed $918,265 (Exhibit No. 3) and ensure that required catch basin cleaning and maintenance services continue without interruption.

The proposed one-year extension is intended to serve as an interim measure while Public Works staff develops a new competitive solicitation for a broader range of storm drain cleaning, maintenance, and repair services. The future solicitation is anticipated to include routine catch basin cleaning; cleaning and removal of debris from storm drain pipes and related structures; inspection of the storm drain system; minor repairs and maintenance of catch basins, pipes, and other drainage system components; storm drain stenciling; and other related services necessary to maintain the City’s storm drain system and support compliance with applicable stormwater requirements.

Extending the existing agreement for one year will allow the City to maintain uninterrupted services while staff completes this broader procurement process and establishes a longer-term approach to the maintenance of the City’s storm drain infrastructure.

V. FISCAL IMPACT
Approval of proposed Amendment No. 1 will authorize an additional $250,000 for catch basin cleaning and related services with Ron’s Maintenance, Inc., increasing the total contract amount to an amount not to exceed $918,265.

Funding for the proposed amendment is already included in the City’s adopted Fiscal Year 2026-27 Operating Budget and is available in the Engineering Stormwater Professional Services Account No. 101-80-820-285-6004.

Accordingly, no additional appropriation is required as a result of this action. The proposed one-year extension is intended to maintain uninterrupted catch basin cleaning and related services while Public Works staff develops a new competitive solicitation for a broader range of storm drain cleaning, maintenance, and repair services. The future solicitation is anticipated to include catch basin cleaning; cleaning and debris removal from storm drain pipes and related structures; inspection of the storm drain system; minor repairs and maintenance of catch basins, pipes, and other drainage system components; storm drain stenciling; and other related services necessary to maintain the City’s storm drain infrastructure and support compliance with applicable stormwater requirements. The oneyear extension will provide continuity of these essential services while the City completes the broader competitive procurement process and establishes a longer-term approach to storm drain system maintenance.

VI. EXHIBITS

1. Ron's Maintenance, Inc. Original Contract

2. Catch Basins Location Map

3. Proposed Ron's Maintenance, Inc. Amendment No. 1
Attachments

1. Ron's Maintenance, Inc. Original Contract

2. Catch Basins Location Map

3. Ron's Maintenance Amendment 1 to Agreement

01007.0006 2188369.3
AMENDMENT NO. 1

TO AGREEMENT FOR CONTRACT SERVICES
THIS AMENDMENT NO. 1 TO AGREEMENT FOR CONTRACT SERVICES (“Amendment No. 1”) by and between the CITY OF CARSON, a California municipal corporation (“City”), and RON’S MAINTENANCE, INC., a California corporation (“Consultant” or “Contractor”) is entered into effective as of the 6th day of October, 2026. City and Consultant are sometimes hereinafter individually referred to as “Party” and hereinafter collectively referred to as the “Parties.”

RECITALS
A. City and Consultant entered into that certain Agreement for Contract Services dated October 5, 2023 (“Agreement”), whereby Consultant agreed to perform catch basin cleaning and maintenance services for a not-to-exceed Contract Sum of $668,265.00 for the Term spanning from October 5, 2023 to October 4, 2026, with three optional one (1) year extension periods at a not to exceed compensation of $222,755.00 for each extension period.

B. City and Contractor now desire to amend the Agreement to exercise its first option to extend the Agreement by one (1) year from October 5, 2026 to October 4, 2027 and increase the total compensation by $250,000.00 (not $222,755.00 as stated in the Agreement) thereby increasing the not-to-exceed Contract Sum from $668,265.00 to $918,265.00 due to unexpected requests that may arise within the scope of the Agreement over this first Extension Term.

TERMS

1. Incorporation of Recitals. The Recitals set forth above are incorporated into and are a part of this Amendment No. 1.

2. Terms and Definitions. All words, terms and phrases used or referenced in this Amendment No. 1, not expressly defined in this Amendment No. 1, shall have the same meaning ascribed to them in the Agreement.

3. Contract Changes. The Agreement is amended as provided herein (new text is identified in bold italics, deleted text in strike through).

A. Section 2.1 (Contract Sum) of the Agreement is hereby amended to read in its entirety as follows:
“2.1 Contract Sum.

Subject to any limitation set forth in this Agreement, City agrees to pay Consultant the amounts specified in the “Schedule of Compensation” attached hereto as Exhibit “C” and incorporated herein by this reference. The total compensation, including reimbursement for actual expenses, shall not exceed Six Hundred Sixty Eight Thousand Two Hundred Sixty Five Dollars ($668,265.00) Nine Hundred Eighteen Thousand Two Hundred Sixty-Five Dollars and Zero Cents 01007.0006 2188369.3
($918,265.00) (the “Contract Sum”), unless additional compensation is approved pursuant to Section 1.8. In the event City elects to exercise its options to extend the Term pursuant to Section 3.4 hereof, the Contract Sum will increase by an annual not to exceed amount of $222,755.00 for each Extension Term.” B. Section 3.4 (Term) of the Agreement is hereby amended to read in its entirety as follows:
“3.4 Term.

Unless earlier terminated in accordance with Article 7 of this Agreement, this Agreement shall continue in full force and effect until completion of the services but not exceed three (3) four (4) years from the date hereof, except as otherwise provided in the Schedule of Performance (Exhibit “D”). The City may, at its sole discretion, elect to extend the Term by three (3) two (2) additional one-year terms (each, an “Extension Term”). The pricing to be applied for each Extension Term is listed in Exhibit “C.””
C. Exhibit “C” (Schedule of Compensation) of the Agreement is hereby amended to read in its entirety as follows:

See attached Exhibit “C”

4. Continuing Effect of Agreement. Except as amended by this Amendment No. 1, all provisions of the Agreement shall remain unchanged and in full force and effect. From and after the date of this Amendment No. 1, whenever the term “Agreement” appears in the Agreement, it shall mean the Agreement, as amended by this Amendment No. 1.

5. Affirmation of Agreement; Warranty Re Absence of Defaults. City and Consultant each ratify and reaffirm each and every one of the respective rights and obligations arising under the Agreement. Each Party represents and warrants to the other that there have been no written or oral modifications to the Agreement other than as provided herein. Each Party represents and warrants to the other that the Agreement, as amended by Amendment No. 1, is currently an effective, valid, and binding obligation.

Consultant represents and warrants to City that, as of the date of this Amendment No. 1, City is not in default of any material term of the Agreement and that there have been no events that, with the passing of time or the giving of notice, or both, would constitute a material default under the Agreement.

City represents and warrants to Consultant that, as of the date of this Amendment No. 1, Consultant is not in default of any material term of the Agreement and that there have been no events that, with the passing of time or the giving of notice, or both, would constitute a material default under the Agreement.
01007.0006 2188369.3

6. Adequate Consideration. The Parties irrevocably stipulate and agree that they have each received adequate and independent consideration for the performance of the obligations they have undertaken pursuant to this Amendment No. 1.

7. Authority. The persons executing this Amendment No. 1 on behalf of the Parties warrant that (i) such Party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Amendment No. 1 on behalf of said Party, (iii) by so executing this Amendment No. 1, such Party is formally bound to the provisions of this Amendment No. 1, and (iv) the entering into this Amendment No. 1 does not violate any provision of any other agreement to which said Party is bound.

8. Counterparts. This Amendment No. 1 may be executed in any number of counterparts and each of such counterparts shall for all purposes be deemed to be an original, whether the signatures are originals, electronic, facsimiles or digital. All such counterparts shall together constitute but one and the same Amendment No. 1. [SIGNATURES ON THE FOLLOWING PAGE]
01007.0006 2188369.3
IN WITNESS WHEREOF, the Parties have executed this Amendment No. 1 on the date(s) and year first set forth above.

CITY:

CITY OF CARSON, a municipal corporation
Lula Davis-Holmes, Mayor
ATTEST:

Dr. Khaleah K. Bradshaw, City Clerk
APPROVED AS TO FORM:

ALESHIRE & WYNDER, LLP
Sunny K. Soltani, City Attorney
[pks; rjl]
CONSULTANT:

RON’S MAINTENANCE, INC., a California
corporation
By:

Name: Ronnie Norman
Title: President/Secretary

Two corporate officer signatures required when Consultant is a corporation, with one signature required from each of the following groups: 1) Chairman of the Board, President or any Vice President; and 2) Secretary, any Assistant Secretary, Chief Financial Officer or any Assistant Treasurer. APPROPRIATE ATTESTATIONS

SHALL BE INCLUDED AS MAY BE REQUIRED BY THE BYLAWS, ARTICLES OF INCORPORATION, OR OTHER RULES OR REGULATIONS APPLICABLE TO CONSULTANT’S BUSINESS ENTITY. 01007.0006 2188369.3
EXHIBIT “C”

SCHEDULE OF COMPENSATION
I. Consultant shall perform the following tasks on an annual basis except where noted otherwise, at the following rates:

Price Per Unit Units Total Cost
Inventory and annual pre-season cleaning and
inspection*
$35.00 1937 $67,795.00
Catch Basin Stenciling (estimated)** $10.00 1937 $19,370.00 Wet Season Cleaning 1 (Oct 1 – Dec 31) $35.00 1937 $67,795.00 Wet Season Cleaning 2 (Jan 1 – May 31) $35.00 1937 $67,795.00 TOTAL ANNUAL COST: $222,755.00***
*Inventory is for Year 1 only.
**Stenciling is on an as-needed basis, to be determined by the City. This may include provision of stenciling services during some years and not other years. ***For the first Extension Term, the amount will be $250,000.00, not 222,755.00. ***Costs to travel, inspect and clean the catch basin, stencil Staff Gauge (per County of LADPW Appendix A-4) and dispose of debris and other incidentals to complete the work required is included in the per catch basin price. The total number of catch basins is estimated to be 1,937 but is subject to change per field verification and requirements per the City.

II. Within the budgeted amounts for each Task, and with the approval of the Contract Officer, funds may be shifted from one Task sub-budget to another so long as the Contract Sum is not exceeded per Section 2.1, unless Additional Services are approved per Section 1.8.

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

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

B. Line items for all materials and equipment properly charged to the Services. 01007.0006 2188369.3
C. Line items for all other approved reimbursable expenses claimed, with supporting documentation.

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

IV. The total compensation for the Services shall not exceed $918,265.00 $668,265.00 as provided in Section 2.1 of this Agreement.

CITY OF CARSON 701 East Carson Street
Report to Honorable Mayor and City Council
Tuesday, October 6, 2026, 5:00 PM
CONSENT 27.

To: Honorable Mayor and City Council
From: Dr. Arlington Rodgers, Director of Public Works PW Operations Subject: CONSIDER APPROVAL OF A PURCHASE ORDER TO QUINNCAT FOR THE PURCHASE OF ONE NEW 2026 OR NEWER CATERPILLAR MODEL 416 BACKHOE LOADER FOR THE PUBLIC WORKS

DEPARTMENT, OPERATIONS AND MAINTENANCE DIVISION (CITY COUNCIL) I. SUMMARY
The City’s Operations and Maintenance Division relies on heavy equipment, including a tractor backhoe, to perform routine roadway maintenance, excavation, asphalt repairs, and other infrastructure work. The City’s existing 2003 Case 580M Tractor Backhoe has been in service for more than 20 years and has reached the end of its useful life.

Due to its age, increasing maintenance needs, and declining reliability, continued operation of the equipment is no longer cost-effective or practical for daily City operations. Replacing the existing backhoe with a newer model will provide City crews with more reliable and efficient equipment, improved safety and emissions technology, and reduced long-term maintenance and repair costs. The replacement will also help ensure that staff can continue performing essential roadway and infrastructure maintenance safely, efficiently, and without unnecessary service disruptions.

Consequently, staff recommends that the City Council approve a purchase order with QuinnCAT, an authorized Caterpillar Inc. dealer, for the purchase of one new 2026 or newer Caterpillar Model 416 Backhoe Loader, utilizing Sourcewell Contract No. 011723, in an amount not to exceed $170,329.99. Staff further recommends that the City Council declare the existing 2003 Case 580M Tractor Backhoe as surplus equipment because it will no longer be needed for City operations following delivery of the replacement backhoe. The existing equipment will be sold through the City’s established auction process, and any proceeds from the sale will be deposited into the City’s General Fund in accordance with City policy.

II. RECOMMENDATION
TAKE the following actions:

1. RATIFY the waiver of the formal bidding and contracting requirements and AUTHORIZE the use of cooperative purchasing, as permitted under Sections 2611(g) and 2605(b)(1)(ii) of the Carson Municipal Code; and,

2. AUTHORIZE the Purchasing Manager to issue a Purchase Order to QuinnCAT, an authorized Caterpillar Inc. dealer, in an amount not to exceed $170,329.99, for the purchase of one new 2026 or newer Caterpillar Model 416 Backhoe Loader (Exhibit No. 2); and,

3. DECLARE the City’s existing 2003 Case 580M Tractor Backhoe as surplus equipment and AUTHORIZE staff to proceed with its sale through the City’s established auction process.

III. ALTERNATIVES

1. DO NOT RATIFY the waiver of the formal bidding process.

2. DO NOT RATIFY the waiver of the formal contracting process.

3. DO NOT AUTHORIZE the use of cooperative purchasing pursuant to Sections 2611(g) and 2605(b)(1)(ii) of the Carson Municipal Code or authorize the Purchasing Manager to issue a Purchase Order for the proposed equipment purchase.

4. TAKE any other action the City Council deems appropriate and consistent with applicable law.

IV. BACKGROUND
The City’s 2003 Case 580M Tractor Backhoe is an essential piece of equipment used by Public Works crews to maintain streets and other City infrastructure. After more than 20 years of service, the backhoe has reached the end of its useful life and is no longer reliable or cost-effective to operate. Despite continued preventative maintenance and repairs, the equipment has experienced increasingly frequent mechanical failures, with annual repair costs now exceeding $12,000. These ongoing mechanical issues can also result in equipment downtime and affect staff’s ability to efficiently complete routine maintenance and respond to urgent infrastructure needs.

The existing backhoe also does not comply with current California Air Resources Board (CARB) requirements applicable to this type of equipment. CARB establishes statewide air-quality and emissions standards for vehicles and heavy-duty equipment. Continued operation of equipment that does not meet applicable requirements may expose the City to regulatory compliance issues and potential penalties. Replacing the existing backhoe will address these concerns while providing City crews with safer, more reliable, and more efficient equipment. Public Works Operations and Maintenance crews regularly use the backhoe to excavate and trench asphalt roadways when performing street repairs and responding to roadway emergencies. The equipment is also used to remove asphalt grindings, load and move base material and soil, excavate roadway sections, and support a variety of other maintenance activities. Because the backhoe can be used by multiple crews within the Operations and Maintenance Division, it provides flexibility to address different operational needs without requiring separate specialized equipment for each crew.

Consequently, staff recommends replacing the existing backhoe with a new 2026 or newer Caterpillar Model 416 Backhoe Loader. The replacement equipment will provide improved reliability, modern safety features, greater operational efficiency and maneuverability, compliance with current CARB requirements, and reduced maintenance and repair costs associated with operating the City's aging equipment. Most importantly, the replacement will help ensure that Public Works crews have dependable equipment available to perform essential street and infrastructure maintenance and respond to emergency conditions when needed. Following delivery and acceptance of the new backhoe, the existing 2003 Case 580M Tractor Backhoe will be declared surplus, meaning the equipment is no longer needed for City operations. The surplus equipment will be sold through the City’s established auction process, and any proceeds from the sale will be deposited into the City’s General Fund in accordance with City policy.

To purchase the replacement backhoe, staff proposes using Sourcewell, a cooperative purchasing program available to public agencies. Cooperative purchasing allows the City to purchase equipment through a contract that has already been competitively solicited and awarded on behalf of participating public agencies. This approach allows the City to benefit from competitively established pricing and contract terms while avoiding the time and administrative expense of conducting a separate City solicitation for substantially the same equipment.

The City is a member of Sourcewell, a national cooperative purchasing organization that conducts competitive solicitations and establishes contracts that participating government agencies may use for eligible purchases.

Caterpillar Inc. was awarded Sourcewell Contract No. 011723 through this competitive process. The proposed backhoe would be purchased from QuinnCAT, an authorized Caterpillar dealer, using the pricing and terms available through the Sourcewell contract. The City’s Purchasing Manager reviewed the Sourcewell procurement process and determined that use of the cooperative contract complies with the City’s Municipal Code. Consistent with the authority provided under the Municipal Code for cooperative purchases, the Purchasing Manager has waived the requirement for the City to conduct a separate formal bidding process and has also waived the requirement for a separate written contract for this purchase. Consequently, staff determined that utilizing the Sourcewell cooperative purchasing contract provides an efficient and cost-effective method of replacing this critical piece of equipment while remaining consistent with the City’s purchasing requirements.

Therefore, staff recommends that the City Council approve a purchase order with QuinnCAT, an authorized Caterpillar Inc. dealer, utilizing Sourcewell Contract No. 011723, for the purchase of one new 2026 or newer Caterpillar Model 416 Backhoe Loader in an amount not to exceed $170,329.99. Approval of the purchase will replace aging and increasingly costly equipment, address applicable emissions requirements, reduce the risk of operational disruptions, and provide Public Works crews with reliable equipment necessary to maintain City streets and infrastructure.

V. FISCAL IMPACT
The estimated cost to purchase a new 2026 or newer Caterpillar Model 416 Backhoe Loader is $170,329.99.

Funding for this purchase is already included in the City’s adopted Fiscal Year 2026-27 Operating Budget under Account No. 101-80-840-281-6500. Therefore, no additional budget appropriation is required to complete the purchase. Following delivery and acceptance of the new backhoe, the City’s existing 2003 Case 580M Tractor Backhoe will be declared surplus and sold through the City’s established auction process. Any proceeds received from the sale will be returned to the City and will partially offset the cost of the replacement equipment, thereby reducing the overall financial impact of the purchase.

VI. EXHIBITS

1. Proposed Caterpillar Inc. Sourcewell Contract

2. Quote for 2026 Caterpillar Backhoe

3. Purchasing Waiver for 2026 Caterpillar Backhoe

4. Vehicle Photo 1

5. Vehicle Photo 2

6. Vehicle Photo 3

7. Vehicle Photo 4

8. Vehicle Photo 5
Attachments
Exhibit 1. Caterpillar Inc. Sourcewell Contract
Exhibit 2. Quote for 2026 Caterpillar Backhoe
Exhibit 3. Purchasing Waiver for 2026 Caterpillar Backhoe Exhibit 4. Vehicle Photo 1
Exhibit 5. Vehicle Photo 2
Exhibit 6. Vehicle Photo 3
Exhibit 7. Vehicle Photo 4
Exhibit 8. Vehicle Photo 5
011723- CAT
Rev. 3/2022 1
Caterpillar: Confidential Green
Solicitation Number: RFP # 011723

CONTRACT
This Contract is between Sourcewell, 202 12th Street Northeast, P.O. Box 219, Staples, MN 56479 (Sourcewell) and Caterpillar Inc., 100 NE Adams Street, Peoria, IL 61629 (Supplier).

Sourcewell is a State of Minnesota local government unit and service cooperative created under the laws of the State of Minnesota (Minnesota Statutes Section 123A.21) that offers cooperative procurement solutions to government entities. Participation is open to eligible federal, state/province, and municipal governmental entities, higher education, K-12 education, nonprofit, tribal government, and other public entities located in the United States and Canada.

Sourcewell issued a public solicitation for Heavy Construction Equipment with Related Attachments and Technology from which Supplier was awarded a contract.

Supplier desires to contract with Sourcewell to provide equipment, products, or services to Sourcewell and the entities that access Sourcewell’s cooperative purchasing contracts (Participating Entities).

1. TERM OF CONTRACT
A. EFFECTIVE DATE. This Contract is effective upon the date of the final signature below.

B. EXPIRATION DATE AND EXTENSION. This Contract expires April 14, 2027, unless it is cancelled sooner pursuant to Article 22. This Contract may be extended one additional year upon the request of Sourcewell and written agreement by Supplier.

C. SURVIVAL OF TERMS. Notwithstanding any expiration or termination of this Contract, all payment obligations incurred prior to expiration or termination will survive, as will the following: Articles 11 through 14 survive the expiration or cancellation of this Contract. All other rights will cease upon expiration or termination of this Contract.

2. EQUIPMENT, PRODUCTS, OR SERVICES
A. EQUIPMENT, PRODUCTS, OR SERVICES. Supplier will provide the Equipment, Products, or Services as stated in its Proposal submitted under the Solicitation Number listed above.

Supplier’s Equipment, Products, or Services Proposal (Proposal) is attached and incorporated into this Contract.

DocuSign Envelope ID: E74F7137-AC67-4B07-965B-33CD3E77A89B DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 011723- CAT
Rev. 3/2022 2
Caterpillar: Confidential Green
Pursuant to Section 10(b), Supplier will subcontract certain obligations under this Contract to its dealers. Only those dealers that sign a Participation Agreement with Supplier obligating them to comply with the terms of this Contract will be eligible to provide Equipment, Products, or Services as a subcontractor under this Contract. In the event there is no dealer who has entered into a Participation Agreement available to provide Equipment, Products, or Services to a Participating Entity, Supplier will be under no obligation to provide Equipment, Products, or Services to such Participating Entity under this Contract. Supplier will provide a copy of this Contract to its dealers that would normally service Participating Entities and invite such dealers to enter into a Participation Agreement as a subcontractor of Supplier under the terms of this Contract.

All Equipment and Products provided under this Contract must be new and the current model.

Supplier may offer close-out or refurbished Equipment or Products if they are clearly indicated in Supplier’s product and pricing list. Unless agreed to by the Participating Entities in advance, Equipment or Products must be delivered as operational to the Participating Entity’s site.

This Contract offers an indefinite quantity of sales, and while substantial volume is anticipated, sales and sales volume are not guaranteed.

B. WARRANTY. Supplier warrants that all Equipment, Products, and Services furnished are free from liens and encumbrances, and are free from defects in design, materials, and workmanship.

In addition, Supplier warrants the Equipment, Products, and Services are suitable for and will perform in accordance with the ordinary use for which they are intended. Supplier’s dealers and distributors must agree to assist the Participating Entity in reaching a resolution in any dispute over warranty terms with the manufacturer. Any manufacturer’s warranty that extends beyond the expiration of the Supplier’s warranty will be passed on to the Participating Entity.

C. DEALERS, DISTRIBUTORS, AND/OR RESELLERS. Upon Contract execution and throughout the Contract term, Supplier must provide to Sourcewell a current means to validate or authenticate Supplier’s authorized dealers, distributors, or resellers relative to the Equipment, Products, and Services offered under this Contract, which will be incorporated into this Contract by reference. It is the Supplier’s responsibility to ensure Sourcewell receives the most current information.

3. PRICING
All Equipment, Products, or Services under this Contract will be priced at or below the percentage list discount stated in the supplier’s proposal.

Upon request made to a participating CAT dealer, from a Participating Entity identifying themselves as a Sourcewell member by providing their Sourcewell member number and contract number; formal quotes will list all costs, including all delivery expenses, such as freight and permits (when required).

DocuSign Envelope ID: E74F7137-AC67-4B07-965B-33CD3E77A89B DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 011723- CAT
Rev. 3/2022 3
Caterpillar: Confidential Green
Alternatively, Participating Entities may choose to make their own transportation arrangements. In such case, there would be no delivery charges from the local participating Cat dealer.

Regardless of the payment method chosen by the Participating Entity, the total cost associated with any purchase option of the Equipment, Products, or Services must always be disclosed in the pricing quote to the applicable Participating Entity at the time of purchase.

A. SHIPPING AND SHIPPING COSTS. All delivered Equipment and Products must be properly packaged. Damaged Equipment and Products may be rejected. If the damage is not readily apparent at the time of delivery, Supplier must permit the Equipment and Products to be returned within a reasonable time at no cost to Sourcewell or its Participating Entities.

Participating Entities reserve the right to inspect the Equipment and Products at a reasonable time after delivery where circumstances or conditions prevent effective inspection of the Equipment and Products at the time of delivery. In the event of the delivery of nonconforming Equipment and Products, the Participating Entity will notify the Supplier as soon as possible and the Supplier will replace nonconforming Equipment and Products with conforming Equipment and Products that are acceptable to the Participating Entity.

Supplier must arrange for and pay for the return shipment on Equipment and Products that arrive in a defective or inoperable condition.

Sourcewell may declare the Supplier in breach of this Contract if the Supplier intentionally delivers substandard or inferior Equipment or Products.

B. SALES TAX. Each Participating Entity is responsible for supplying the Supplier with valid taxexemption certification(s). When ordering, a Participating Entity must indicate if it is a taxexempt entity.

C. HOT LIST PRICING. At any time during this Contract, Supplier may offer a specific selection of Equipment, Products, or Services at discounts greater than those listed in the Contract.

When Supplier determines it will offer Hot List Pricing, it must be submitted electronically to Sourcewell in a line-item format. Equipment, Products, or Services may be added or removed from the Hot List at any time through a Sourcewell Price and Product Change Form as defined in Article 4 below.

Hot List program and pricing may also be used to discount and liquidate close-out and discontinued Equipment and Products as long as those close-out and discontinued items are clearly identified as such. Current ordering process and administrative fees apply. Hot List Pricing must be published and made available to all Participating Entities.

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4. PRODUCT AND PRICING CHANGE REQUESTS
Supplier may request Equipment, Product, or Service changes, additions, or deletions at any time. All requests must be made in writing by submitting a signed Sourcewell Price and Product Change Request Form to the assigned Sourcewell Supplier Development Administrator. This approved form is available from the assigned Sourcewell Supplier Development Administrator.

At a minimum, the request must:
• Identify the applicable Sourcewell contract number;
• Clearly specify the requested change;
• Provide sufficient detail to justify the requested change; • Individually list all Equipment, Products, or Services affected by the requested change, along with the requested change (e.g., addition, deletion, price change); and • Include a complete restatement of pricing documentation in Microsoft Excel with the effective date of the modified pricing, or product addition or deletion. The new pricing restatement must include all Equipment, Products, and Services offered, even for those items where pricing remains unchanged.

A fully executed Sourcewell Price and Product Request Form will become an amendment to this Contract and will be incorporated by reference.

5. PARTICIPATION, CONTRACT ACCESS, AND PARTICIPATING ENTITY REQUIREMENTS A. PARTICIPATION. Sourcewell’s cooperative contracts are available and open to public and nonprofit entities across the United States and Canada; such as federal, state/province, municipal, K-12 and higher education, tribal government, and other public entities. Supplier may not enter into a contract with a U.S. Federal Government entity prior to obtaining necessary internal approvals and shall not be obligated to provide Equipment, Products or Services to any U.S. Federal Government entity under this Contract unless separately agreed in writing. Caterpillar may work with such parties and may agree to provide equipment or services under the Contract on a case-by-case basis.

The benefits of this Contract should be available to all Participating Entities that can legally access the Equipment, Products, or Services under this Contract. A Participating Entity’s authority to access this Contract is determined through its cooperative purchasing, interlocal, or joint powers laws. Any entity accessing benefits of this Contract will be considered a Service Member of Sourcewell during such time of access. Supplier understands that a Participating Entity’s use of this Contract is at the Participating Entity’s sole convenience and Participating Entities reserve the right to obtain like Equipment, Products, or Services from any other source.

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to join Sourcewell. Sourcewell reserves the right to add and remove Participating Entities to its roster during the term of this Contract.

B. PUBLIC FACILITIES. Supplier’s employees may be required to perform work at governmentowned facilities, including schools. Supplier’s employees and agents must conduct themselves in a professional manner while on the premises, and in accordance with Participating Entity policies and procedures, and all applicable laws.

6. PARTICIPATING ENTITY USE AND PURCHASING
A. ORDERS AND PAYMENT. To access the contracted Equipment, Products, or Services under this Contract, a Participating Entity must clearly indicate to Supplier that it intends to access this Contract; however, order flow and procedure will be developed jointly between Sourcewell and Supplier. Typically, a Participating Entity will issue an order directly to Participating Dealers with payments made to the Participating Dealers. If a Participating Entity issues a purchase order, it may use its own forms, but the purchase order should clearly note the applicable Sourcewell contract number. All Participating Entity orders under this Contract must be issued prior to expiration or cancellation of this Contract; however, Supplier performance, Participating Entity payment obligations, and any applicable warranty periods or other Supplier or Participating Entity obligations may extend beyond the term of this Contract.

Supplier’s acceptable forms of payment are included in its attached Proposal. Participating Entities will be solely responsible for payment and Sourcewell will have no liability for any unpaid invoice of any Participating Entity.

B. ADDITIONAL TERMS AND CONDITIONS/PARTICIPATING ADDENDUM. Additional terms and conditions to a purchase order, or other required transaction documentation, may be negotiated between a Participating Entity and Supplier’s Participating Dealer, such as job or industry-specific requirements, legal requirements (e.g., affirmative action or immigration status requirements), or specific local policy requirements. Some Participating Entities may require the use of a Participating Addendum, the terms of which will be negotiated directly between the Participating Entity and Supplier’s Participating Dealer or its authorized dealers, distributors, or resellers, as applicable. Any negotiated additional terms and conditions must never be less favorable to the Participating Entity than what is contained in this Contract.

C. SPECIALIZED SERVICE REQUIREMENTS. In the event that the Participating Entity requires service or specialized performance requirements not addressed in this Contract (such as ecommerce specifications, specialized delivery requirements, or other specifications and requirements), the Participating Entity and the Supplier may enter into a separate, standalone agreement, apart from this Contract. Sourcewell, including its agents and employees, will not be made a party to a claim for breach of such agreement.

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D. TERMINATION OF ORDERS. Participating Entities may terminate an order, in whole or in part, immediately upon notice to Supplier in the event of any of the following events:

1. The Participating Entity fails to receive funding or appropriation from its governing body at levels sufficient to pay for the equipment, products, or services to be purchased; or

2. Federal, state, or provincial laws or regulations prohibit the purchase or change the Participating Entity’s requirements.

E. GOVERNING LAW AND VENUE. The governing law and venue for any action related to a Participating Entity’s order will be determined by the Participating Entity making the purchase.

7. CUSTOMER SERVICE
A. PRIMARY ACCOUNT REPRESENTATIVE. Supplier will assign an Account Representative to Sourcewell for this Contract and must provide prompt notice to Sourcewell if that person is changed. The Account Representative will be responsible for:
• Maintenance and management of this Contract;
• Timely response to all Sourcewell and Participating Entity inquiries; and • Business reviews to Sourcewell and Participating Entities, if applicable.

B. BUSINESS REVIEWS. Supplier must perform a minimum of one business review with Sourcewell per contract year. The business review will cover sales to Participating Entities, pricing and contract terms, administrative fees, sales data reports, performance issues, supply issues, customer issues, and any other necessary information.

8. REPORT ON CONTRACT SALES ACTIVITY AND ADMINISTRATIVE FEE PAYMENT A. CONTRACT SALES ACTIVITY REPORT. Each calendar quarter, Supplier must provide a contract sales activity report (Report) to the Sourcewell Supplier Development Administrator assigned to this Contract. Reports are due no later than 45 days after the end of each calendar quarter. A Report must be provided regardless of the number or amount of sales during that quarter (i.e., if there are no sales, Supplier must submit a report indicating no sales were made).

The Report must contain the following fields:
• Participating Entity Name (e.g., City of Staples Highway Department); • Participating Entity Physical Street Address;
• Participating Entity City;
• Participating Entity State/Province;
• Participating Entity Zip/Postal Code;
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• Participating Entity Contact Name;
• Participating Entity Contact Email Address;
• Participating Entity Contact Telephone Number;
• Sourcewell Assigned Entity/Participating Entity Number; • Item Purchased Description;
• Item Purchased Price;
• Sourcewell Administrative Fee Applied; and
• Date Purchase was invoiced/sale was recognized as revenue by Supplier.

B. ADMINISTRATIVE FEE. In consideration for the support and services provided by Sourcewell, the Supplier will pay an administrative fee to Sourcewell on all Equipment, Products, and Services provided to Participating Entities. The Administrative Fee must be included in, and not added to, the pricing. Supplier may not charge Participating Entities more than the contracted price to offset the Administrative Fee.

The Supplier will submit payment to Sourcewell for the percentage of administrative fee stated in the Proposal multiplied by the total sales of all Equipment, Products, and Services purchased by Participating Entities under this Contract during each calendar quarter. Payments should note the Supplier’s name and Sourcewell-assigned contract number in the memo; and must be mailed to the address above “Attn: Accounts Receivable” or remitted electronically to Sourcewell’s banking institution per Sourcewell’s Finance department instructions. Payments must be received no later than 45 calendar days after the end of each calendar quarter.

Supplier agrees to cooperate with Sourcewell in auditing transactions under this Contract to ensure that the administrative fee is paid on all items purchased under this Contract.

In the event the Supplier is delinquent in any undisputed administrative fees, Sourcewell reserves the right to cancel this Contract and reject any proposal submitted by the Supplier in any subsequent solicitation. In the event this Contract is cancelled by either party prior to the Contract’s expiration date, the administrative fee payment will be due no more than 30 days from the cancellation date.

9. AUTHORIZED REPRESENTATIVE
Sourcewell's Authorized Representative is its Chief Procurement Officer.

Supplier’s Authorized Representative is the person named in the Supplier’s Proposal. If Supplier’s Authorized Representative changes at any time during this Contract, Supplier must promptly notify Sourcewell in writing.

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10. AUDIT, ASSIGNMENT, AMENDMENTS, WAIVER, AND CONTRACT COMPLETE A. AUDIT. Pursuant to Minnesota Statutes Section 16C.05, subdivision 5, the books, records, documents, and accounting procedures and practices relevant to this Contract are subject to examination by Sourcewell or the Minnesota State Auditor for a minimum of six years from the end of this Contract. This clause extends to Participating Entities as it relates to business conducted by that Participating Entity under this Contract.

B. ASSIGNMENT. Neither party may assign or otherwise transfer its rights or obligations under this Contract without the prior written consent of the other party and a fully executed assignment agreement. Such consent will not be unreasonably withheld. Any prohibited assignment will be invalid. Provided, however, that Supplier is permitted to subcontract certain of its rights and obligations to Supplier Participating Dealers for performance without Sourcewell’s prior written consent.

C. AMENDMENTS. Any amendment to this Contract must be in writing and will not be effective until it has been duly executed by the parties.

D. WAIVER. Failure by either party to take action or assert any right under this Contract will not be deemed a waiver of such right in the event of the continuation or repetition of the circumstances giving rise to such right. Any such waiver must be in writing and signed by the parties.

E. CONTRACT COMPLETE. This Contract represents the complete agreement between the parties. No other understanding regarding this Contract, whether written or oral, may be used to bind either party. For any conflict between the attached Proposal and the terms set out in Articles 1-22 of this Contract, the terms of Articles 1-22 will govern.

F. RELATIONSHIP OF THE PARTIES. The relationship of the parties is one of independent contractors, each free to exercise judgment and discretion with regard to the conduct of their respective businesses. This Contract does not create a partnership, joint venture, or any other relationship such as master-servant, or principal-agent.

11. INDEMNITY AND HOLD HARMLESS
Intentionally omitted.

12. GOVERNMENT DATA PRACTICES
Supplier and Sourcewell must comply with the Minnesota Government Data Practices Act, Minnesota Statutes Chapter 13, as it applies to all data provided by or provided to Sourcewell DocuSign Envelope ID: E74F7137-AC67-4B07-965B-33CD3E77A89B DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 011723- CAT
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under this Contract and as it applies to all data created, collected, received, maintained, or disseminated by the Supplier under this Contract.

13. INTELLECTUAL PROPERTY, PUBLICITY, MARKETING, AND ENDORSEMENT A. Intentionally Deleted.

B. PUBLICITY. Any publicity regarding the subject matter of this Contract must not be released without prior written approval from the Authorized Representatives. Publicity includes notices, informational pamphlets, press releases, research, reports, signs, and similar public notices prepared by or for the Supplier individually or jointly with others, or any subcontractors, with respect to the program, publications, or services provided resulting from this Contract.

C. MARKETING. Any direct advertising, marketing, or offers with Participating Entities must be approved by Sourcewell. Send all approval requests to the Sourcewell Supplier Development Administrator assigned to this Contract.

D. ENDORSEMENT. The Supplier must not claim that Sourcewell endorses its Equipment, Products, or Services.

14. GOVERNING LAW, JURISDICTION, AND VENUE
The substantive and procedural laws of the State of Minnesota will govern this Contract. Venue for all legal proceedings arising out of this Contract, or its breach, must be in the appropriate state court in Todd County, Minnesota or federal court in Fergus Falls, Minnesota.

15. FORCE MAJEURE
Neither party to this Contract will be held responsible for delay or default caused by acts of God or other conditions that are beyond that party’s reasonable control. A party defaulting under this provision must provide the other party prompt written notice of the default.

16. SEVERABILITY
If any provision of this Contract is found by a court of competent jurisdiction to be illegal, unenforceable, or void then both parties will be relieved from all obligations arising from that provision. If the remainder of this Contract is capable of being performed, it will not be affected by such determination or finding and must be fully performed.

17. PERFORMANCE, DEFAULT, AND REMEDIES
A. PERFORMANCE. During the term of this Contract, the parties will monitor performance and address unresolved contract issues as follows:

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1. Notification. The parties must promptly notify each other of any known dispute and work in good faith to resolve such dispute within a reasonable period of time. If necessary, Sourcewell and the Supplier will jointly develop a short briefing document that describes the issue(s), relevant impact, and positions of both parties.

2. Escalation. If parties are unable to resolve the issue in a timely manner, as specified above, either Sourcewell or Supplier may escalate the resolution of the issue to a higher level of management. The Supplier will have 30 calendar days to cure an outstanding issue.

3. Performance while Dispute is Pending. Notwithstanding the existence of a dispute, the Supplier must continue without delay to carry out all of its responsibilities under the Contract that are not affected by the dispute. If the Supplier fails to continue without delay to perform its responsibilities under the Contract, in the accomplishment of all undisputed work, the Supplier will bear any additional costs incurred by Sourcewell and/or its Participating Entities as a result of such failure to proceed.

B. DEFAULT AND REMEDIES. Either of the following constitutes cause to declare this Contract, or any Participating Entity order under this Contract, in default:

1. Nonperformance of contractual requirements, or

2. A material breach of any term or condition of this Contract.

The party claiming default must provide written notice of the default, with 30 calendar days to cure the default. Time allowed for cure will not diminish or eliminate any liability for liquidated or other damages. If the default remains after the opportunity for cure, the non-defaulting party may:
• Exercise any remedy provided by law or equity, or
• Terminate the Contract or any portion thereof, including any orders issued against the Contract.

18. INSURANCE
A. REQUIREMENTS. At its own expense, Supplier must maintain insurance policy(ies) in effect at all times during the performance of this Contract with insurance company(ies) licensed or authorized to do business in the State of Minnesota having an “AM BEST” rating of A- or better, with coverage and limits of insurance not less than the following:

1. Workers’ Compensation and Employer’s Liability.

Workers’ Compensation: As required by any applicable law or regulation.

Employer's Liability Insurance: must be provided in amounts not less than listed below:

Minimum limits:
$500,000 each accident for bodily injury by accident
$500,000 policy limit for bodily injury by disease
$500,000 each employee for bodily injury by disease
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2. Commercial General Liability Insurance. Supplier will maintain insurance covering its operations, with coverage on an occurrence basis, and must be subject to terms no less broad than the Insurance Services Office (“ISO”) Commercial General Liability Form CG0001 (2001 or newer edition), or equivalent. At a minimum, coverage must include liability arising from premises, operations, bodily injury and property damage, independent contractors, products-completed operations including construction defect, contractual liability, blanket contractual liability, and personal injury and advertising injury. All required limits, terms and conditions of coverage must be maintained during the term of this Contract.

Minimum Limits:
$1,000,000 each occurrence Bodily Injury and Property Damage $1,000,000 Personal and Advertising Injury
$2,000,000 aggregate for products liability-completed operations $2,000,000 general aggregate

3. Commercial Automobile Liability Insurance. During the term of this Contract, Supplier will maintain insurance covering all owned, hired, and non-owned automobiles in limits of liability not less than indicated below. The coverage must be subject to terms no less broad than ISO Business Auto Coverage Form CA 0001 (2010 edition or newer), or equivalent.

Minimum Limits:
$1,000,000 each accident, combined single limit

4. Umbrella Insurance. During the term of this Contract, Supplier will maintain umbrella coverage over Employer’s Liability, Commercial General Liability, and Commercial Automobile.

Minimum Limits:
$2,000,000
Failure of Supplier to maintain the required insurance will constitute a material breach entitling Sourcewell to immediately terminate this Contract for default.

B. CERTIFICATES OF INSURANCE. Prior to commencing under this Contract, Supplier must furnish to Sourcewell a certificate of insurance, as evidence of the insurance required under this Contract. Prior to expiration of the policy(ies), renewal certificates must be mailed to Sourcewell, 202 12th Street Northeast, P.O. Box 219, Staples, MN 56479 or sent to the Sourcewell Supplier Development Administrator assigned to this Contract. The certificates must be signed by a person authorized by the insurer(s) to bind coverage on their behalf.

Failure to request certificates of insurance by Sourcewell, or failure of Supplier to provide certificates of insurance, in no way limits or relieves Supplier of its duties and responsibilities in this Contract.

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C. ADDITIONAL INSURED ENDORSEMENT AND PRIMARY AND NON-CONTRIBUTORY INSURANCE CLAUSE. Supplier agrees to list Sourcewell and its Participating Entities, including their officers, agents, and employees, as an additional insured under the Supplier’s commercial general liability insurance policy with respect to liability arising out of activities, “operations,” or “work” performed by or on behalf of Supplier, and products and completed operations of Supplier. The policy provision(s) or endorsement(s) must further provide that coverage is primary and not excess over or contributory with any other valid, applicable, and collectible insurance or self-insurance in force for the additional insureds. A Participating Dealer may name a Participating Entity as an additional insured on a case-by-case basis.

WAIVER OF SUBROGATION. Supplier waives and must require (by endorsement or otherwise) all its insurers to waive subrogation rights against Sourcewell and other additional insureds for losses paid under the insurance policies required by this Contract or other insurance applicable to the Supplier or its subcontractors. The waiver must apply to all deductibles and/or selfinsured retentions applicable to the required or any other insurance maintained by the Supplier or its subcontractors.

D. UMBRELLA/EXCESS LIABILITY/SELF-INSURED RETENTION. The limits required by this Contract can be met by either providing a primary policy or in combination with umbrella/excess liability policy(ies), or self-insured retention.

19. COMPLIANCE
A. LAWS AND REGULATIONS. All Equipment, Products, or Services provided under this Contract must comply fully with applicable federal laws and regulations, and with the laws in the states and provinces in which the Equipment, Products, or Services are sold.

B. LICENSES. Supplier’s Participating Dealers must maintain a valid and current status on all required federal, state/provincial, and local licenses, bonds, and permits required for the operation of the business that the Participating Dealer conducts with Sourcewell and Participating Entities.

20. BANKRUPTCY, DEBARMENT, OR SUSPENSION CERTIFICATION
Supplier certifies and warrants that it is not in bankruptcy or that it has previously disclosed in writing certain information to Sourcewell related to bankruptcy actions. If at any time during this Contract Supplier declares bankruptcy, Supplier must immediately notify Sourcewell in writing.

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Supplier certifies and warrants that neither it nor its principals are presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from programs operated by the State of Minnesota; the United States federal government or the Canadian government, as applicable; or any Participating Entity. Supplier certifies and warrants that neither it nor its principals have been convicted of a criminal offense related to the subject matter of this Contract. Supplier further warrants that it will provide immediate written notice to Sourcewell if this certification changes at any time.

21. PROVISIONS FOR NON-UNITED STATES FEDERAL ENTITY PROCUREMENTS UNDER

UNITED STATES FEDERAL AWARDS OR OTHER AWARDS
Intentionally omitted.

22. CANCELLATION
Sourcewell or Supplier may cancel this Contract at any time, with or without cause, upon 60 days’ written notice to the other party. However, Sourcewell may cancel this Contract immediately upon discovery of a material defect in any certification made in Supplier’s Proposal. Cancellation of this Contract does not relieve either party of financial, product, or service obligations incurred or accrued prior to cancellation.

Sourcewell Caterpillar Inc.

By: __________________________ By: __________________________ Jeremy Schwartz Patrick Kearns
Title: Chief Procurement Officer Title: Vice President Sales & Marketing, Construction Industries
Date: ________________________ Date: ________________________ Approved:

By: __________________________
Chad Coauette
Title: Executive Director/CEO
Date: ________________________
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5/24/2023 | 12:16 PM CDT
DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 RFP 011723 - Heavy Construction Equipment with Related
Attachments and Technology
Vendor Details
Company Name: Caterpillar Inc
Address:
100 NE Adams St
Peoria, IL 61629
Contact: Sean Egel
Email: [email protected]
Phone: 309-675-1399
HST#:

Submission Details
Created On: Tuesday November 15, 2022 14:22:18
Submitted On: Tuesday January 17, 2023 16:10:22
Submitted By: Sean Egel
Email: [email protected]
Transaction #: aeaa61ae-0c73-4610-8208-b80e2e0b4448
Submitter's IP Address: 192.189.129.23
Bid Number: RFP 011723 Vendor Name: Caterpillar Inc
DocuSign Envelope ID: E74F7137-AC67-4B07-965B-33CD3E77A89B DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 Specifications
Table 1: Proposer Identity & Authorized Representatives General Instructions (applies to all Tables) Sourcewell prefers a brief but thorough response to each question. Do not merely attach additional documents to your response without also providing a substantive response. Do not leave answers blank; respond “N/A” if the question does not apply to you (preferably with an explanation).

Line
Item Question Response *
1 Proposer Legal Name (one legal entity only):
(In the event of award, will execute the
resulting contract as "Supplier")
Caterpillar Inc.
*
2 Identify all subsidiary entities of the Proposer
whose equipment, products, or services are
included in the Proposal.

N/A
*
3 Identify all applicable assumed names or DBA
names of the Proposer or Proposer's
subsidiaries in Line 1 or Line 2 above.

N/A
*
4 Provide your CAGE code or Unique Entity
Identifier (SAM):
11083 *
5 Proposer Physical Address: 5212 N O'Connor Blvd Ste. 1100, Irving, TX 75039 * 6 Proposer website address (or addresses): https://www.caterpillar.com/, https://www.cat.com/en_US.html * 7 Proposer's Authorized Representative (name,
title, address, email address & phone) (The
representative must have authority to sign
the “Proposer’s Assurance of Compliance” on
behalf of the Proposer and, in the event of
award, will be expected to execute the
resulting contract):

Primary Contact: Patrick Kearns
Title: Vice President Sales & Marketing
Address: 100 NE Adams St, Peoria, IL 61629
Email: [email protected]
Phone: (309) 675-5181
*
8 Proposer's primary contact for this proposal
(name, title, address, email address & phone):

Primary Contact: Sean Egel
Title: Governmental Sales Consultant
Address: 100 NE Adams St, Peoria, IL 61629
Email: [email protected]
Phone: (309) 675-1399
*
9 Proposer's other contacts for this proposal, if
any (name, title, address, email address &
phone):

Primary Contact: Marta Sevilla
Title: Governmental Marketing Manager
Address: 100 NE Adams St, Peoria, IL 61629
Email: [email protected]
Phone: (309) 578-1150
Table 2: Company Information and Financial Strength
Line
Item Question Response *
Bid Number: RFP 011723 Vendor Name: Caterpillar Inc
DocuSign Envelope ID: E74F7137-AC67-4B07-965B-33CD3E77A89B DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 10 Provide a brief history of your company,
including your company’s core values,
business philosophy, and industry longevity
related to the requested equipment, products
or services.

The history of Caterpillar is all about doing: creating, building, problem solving, innovating, testing, servicing and improving. We’re proud of the ingenious machines that are part of our rich heritage. More importantly, we are proud of the people who founded and built the company one breakthrough at a time. Beginning with Benjamin Holt and C. L. Best, the people of Caterpillar have always been - and continue to be - extraordinary.

In 1925, when Holt and Best merged to form their new tractor company, they used the name so familiar to people around the world: Caterpillar. The Caterpillar Tractor Company is today known as Caterpillar Inc.

With 2021 sales and revenues of $51.0 billion, Caterpillar Inc. is the world’s leading manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. For nearly 100 years, we’ve been helping customers build a better, more sustainable world and are committed and contributing to a reduced-carbon future. Our innovative products and services, backed by our global dealer network, provide exceptional value that helps customers succeed. Caterpillar does business on every continent, principally operating through three primary segments – Construction Industries, Resource Industries and Energy & Transportation – and providing financing and related services through our Financial Products segment.

Our Worldwide Code of Conduct, first published in 1974, defines what we stand for and believe in, documenting the uncompromisingly high ethical standards our company has upheld since its founding in 1925. The Code helps Caterpillar employees put our values and principles into action every day by providing detailed guidance on the behaviors and actions that support our values of Integrity, Excellence, Teamwork, Commitment and Sustainability.

Caterpillar's Code of Conduct that can be found at
https://www.caterpillar.com/en/company/code-of-conduct.html *
11 What are your company’s expectations in the
event of an award?
Caterpillar is honored to have served Sourcewell and its members who have purchased Cat® construction equipment, attachments (work tools), and electrical power generation products through Sourcewell since 2008. Furthermore, we are proud to have
earned the Sourcewell Legacy Award in 2019, and have recently been awarded contracts 060122-CAT and 092222-CAT.

Caterpillar's expectations in the event of an award would be to focus on customer needs and continued growth across all governmental segments. Sourcewell has built a strong reputation within the industry that has shown the importance of how this cooperative contract delivers upon customer needs. This contract will be a top factor in our go to market strategy within our strong Cat dealer network. If awarded, we will send out an email to our entire sales force, applicable to governmental, introducing the contract along with ways to train our salesforce, market, and grow the contract.

We look forward to the opportunity to further grow business and serve member needs together in this new Heavy Construction Equipment RFP opportunity. *
12 Demonstrate your financial strength and
stability with meaningful data. This could
include such items as financial statements,
SEC filings, credit and bond ratings, letters
of credit, and detailed reference letters.

Upload supporting documents (as applicable)
in the document upload section of your
response.

Caterpillar Inc. is a publicly traded company, and as such, its financial information is updated quarterly and available at: https://investors.caterpillar.com/overview/default.aspx Caterpillar's 2021 Annual Report provides details about our financial position. Our SEC filing documents can be found at:
https://investors.caterpillar.com/financials/sec-filings/default.aspx. Both documents are included as attachments in our Financial Strength and Stability Documents.

As 2022 results are yet to be released, below you can find a summary of our full year 2021 financials.

In 2021 full year sales and revenues were $51B of which, North American sales were $22B. Operating profit was $6.9B with a profit per share of USD $11.83.

Dividends paid per share of USD $4.28.
*
13 What is your US market share for the
solutions that you are proposing?
Caterpillar is a significant contributor to the overall Heavy Equipment sector within the US and Canada. Market share information beyond what is made publicly available through our annual reports is considered confidential. *
14 What is your Canadian market share for the
solutions that you are proposing?
Caterpillar is a significant contributor to the overall Heavy Equipment sector within the US and Canada. Market share information beyond what is made publicly available through our annual reports is considered confidential. *
15 Has your business ever petitioned for
bankruptcy protection? If so, explain in detail.

No. *
Bid Number: RFP 011723 Vendor Name: Caterpillar Inc
DocuSign Envelope ID: E74F7137-AC67-4B07-965B-33CD3E77A89B DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 16 How is your organization best described: is
it a manufacturer, a distributor/dealer/reseller,
or a service provider? Answer whichever
question (either a) or b) just below) best
applies to your organization.
a) If your company is best described as
a distributor/dealer/reseller (or similar entity),
provide your written authorization to act as a
distributor/dealer/reseller for the manufacturer
of the products proposed in this RFP. If
applicable, is your dealer network
independent or company owned?
b) If your company is best described as
a manufacturer or service provider, describe
your relationship with your sales and service
force and with your dealer network in
delivering the products and services
proposed in this RFP. Are these individuals
your employees, or the employees of a third
party?
Caterpillar is a world class manufacturer which distributes products through a vast and capable independent dealer network. Our dealers are strong independently owned companies and in North America alone our 47 dealers have a combined net worth of billions of dollars. Their large valuation is a competitive advantage because it allows them to have the infrastructure to support customers regardless of location, industry, fleet size, or application.

Another advantage of independently owned dealers is that they know their customers and market well. They tailor their services specifically to their customers' needs.

Although we will sign this contract as a manufacturer, our Cat dealers will be given the
opportunity to avail themselves of the opportunity presented by the contract and will execute all the transactions with governmental customers as they do today. This includes but is not limited to consultation, quoting, accepting payment, delivery, warranty support, parts sales, and service.

Caterpillar dealers heartily embrace the other Sourcewell contracts currently available to them (032119-CAT, 092222-CAT, 062320-CAT, 060122-CAT). They have all been trained on contract usage. In fact, the current Heavy Equipment contract is leveraged by
95% of our dealers in North America. Caterpillar offers specific discounts to Sourcewell members. By using any Sourcewell Contract, our dealers agree to honor those discounts.
*
17 If applicable, provide a detailed explanation
outlining the licenses and certifications that
are both required to be held, and actually
held, by your organization (including third
parties and subcontractors that you use) in
pursuit of the business contemplated by this
RFP.

Caterpillar and its subsidiaries operate across the globe in a variety of markets that require Caterpillar to adhere to all locally mandated laws and regulations in order to do business. With regards to the territories covered by this RFP, Caterpillar will comply with applicable laws in order to do business in the territories described herein.

As an equipment manufacturer focused on quality, Caterpillar created the Caterpillar Quality Management System, which is a process-based, ISO 9001:2015 compliant quality management system used throughout Caterpillar to continually improve the quality of our products and services to meet customer, statutory, and regulatory requirements. It is registered with IRCA (International Register of Certificated Auditors) as Caterpillar Quality Management System CAT791A. *
18 Provide all “Suspension or Debarment”
information that has applied to your
organization during the past ten years.

N/A
*
Table 3: Industry Recognition & Marketplace Success
Line
Item Question Response *
Bid Number: RFP 011723 Vendor Name: Caterpillar Inc
DocuSign Envelope ID: E74F7137-AC67-4B07-965B-33CD3E77A89B DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 19 Describe any relevant industry awards or
recognition that your company has received
in the past five years
Please note: To list all the awards received in the past 5 years would unnecessarily lengthen our response. For brevity, we are highlighting some recognition received in 2020, 2021 and 2022. Also note there are many global awards.

Fortune Magazine #78 on the Fortune 500 2021
Fortune Magazine World's Most Admired Companies
World & North America Dow Jones Sustainability Index
Forbes Best Employers for diversity 2020 and 2021
#82 Best Global Brands- Interbrand 2021
The Wall Street Journal Best Managed Companies in 2020 and 2021 The Wall Street Journal World's Most Sustainably Managed Companies Human Rights Campaign Foundation Corporate Equality Index Dow Jones Sustainability Index (World and North America) 21 years World’s Most Sustainably Managed Companies – The Wall Street Journal United Way World Wide’s Global Corporate Leadership Program
U.S. President’s Volunteer Service Award from Junior Achievement Corporate Equality Index – Human Rights Campaign Foundation CSR China Top 100 – the 4th CSR China Education Award (China) China CSR Excellence Award – China Philanthropy Times (China)
Corporate Social Responsibility Research Center of Southern Weekly (China) Outstanding Contribution to Poverty Alleviation – China Foundation for Poverty Alleviation (China)
2020 Global 500 – Fortune Magazine
America’s Most Responsible Companies 2020, 2021 & 2022 – Newsweek Best-Managed Companies of 2020 & 2021 – The Wall Street Journal Top Companies for Customer Satisfaction – The Wall Street Journal The CEO Leaderboard: COVID-19 Reputation Rankings – SJR All-America Executive Team – Institutional Investor
Top 150 Global Licensors – Global License Best Global Brands Top 100 – Interbrand World’s Most Valuable Brands 2020 – Forbes
2020 Best Places to Work for Disability Inclusion – Disability Equality Index World’s Best Employers 2020 – Forbes
Best Employers for Women 2020 – Forbes
America’s Best Employers by State 2020 – Forbes
America's Best Employers for Diversity 2020 – Forbes
Best Employers for New Grads 2020 – Forbes
Global 2000 – Forbes 2020, 2021 & 2022
Best Employers for Veterans 2020 and 2021– Forbes
Top Veteran-Friendly Company – U.S. Veterans Magazine
#1 Great Place to Work – Great Place to Work Institute (Brazil) #1 Great Place to Work in the Ag Business - Great Place to Work Institute (Brazil) Chile’s 20 Best Places in 2020 to Work for LGBTQ Equality, pwc Human Rights Campaign
Top of Mind Company “Industry category” (Piracicaba, Brazil) Certification on Promoting Work-Life Balance in Hyogo Prefecture – Hyogo Work and Life Center (Japan)
Hyogo’s Women’s Success in Business Promotion Company – Hyogo Women Empowerment &
Promotion Center (Japan)
Hanada Award for WIN Akashi – Hyogo Women and Future Association (Japan) Hyogo Childcare Supporting Company Award (Japan)
Science & Technology Industry Summit: Outstanding Contribution – The Economic Observer (China)
*
20 What percentage of your sales are to the
governmental sector in the past three years
The governmental and educational sector is extremely important to Caterpillar. We have a dedicated team to support governmental customers and their specific needs. However, percentage of sales to governmental is considered confidential. *
21 What percentage of your sales are to the
education sector in the past three years
The governmental and educational sector is extremely important to Caterpillar. We have a dedicated team to support governmental customers, including the education sector, and their specific needs. However, percentage of sales to education is considered confidential.
*
22 List any state, provincial, or cooperative
purchasing contracts that you hold. What is
the annual sales volume for each of these
contracts over the past three years?
While Cat dealers would typically hold contracts with states and provinces, as an exception Caterpillar holds the state contract with Ohio and NY.

Additionally, we are contract holders with OMNIA and NASPO ValuePoint.

Just as we would never share Sourcewell sales information with other cooperatives, we also keep the sales volumes from other cooperatives confidential. *
Bid Number: RFP 011723 Vendor Name: Caterpillar Inc
DocuSign Envelope ID: E74F7137-AC67-4B07-965B-33CD3E77A89B DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 23 List any GSA contracts or Standing Offers
and Supply Arrangements (SOSA) that you
hold. What is the annual sales volume for
each of these contracts over the past three
years?
Listed below are the current GSA contracts that Caterpillar holds:

SIN 333924 Utility Trucks and Tractors: 2020=$6,857,211 2021=$14,071,364 SIN 333120 Street Repair and Cleaning Equipment and Attachments:
2020=$0 / 2021=$143,837
SIN 335999 Power Distribution Equipment: 2020=$151,267.70 / 2021=$9,473.07 These contracts are used by Caterpillar, but we do not allow our dealers to use GSA contracts.

Final sales for the year 2022 have yet to be fully reported. *
Table 4: References/Testimonials
Line Item 24. Supply reference information from three customers who are eligible to be Sourcewell participating entities.

Entity Name * Contact Name * Phone Number *
Baltimore County, MD Jamie Donahue 410-952-6981 *
Washington DC Fleet Greg Harrelson 202-437-3799 *
Town of Scituate Mass. Kevin Cafferty 781-545-8732 *
Table 5: Top Five Government or Education Customers
Line Item 25. Provide a list of your top five government, education, or non-profit customers (entity name is optional), including entity type, the state or province the entity is located in, scope of the project(s), size of transaction(s), and dollar volumes from the past three years.

Entity Name Entity Type * State /
Province * Scope of Work * Size of Transactions * Dollar Volume Past ThreeYears * Virginia
Department of
Transportation -
Central
Government Virginia - VA State Department of
Transportation for Virginia.