Members of the public may address the City Council on any item shown on the agenda or matter of the Council’s authority after completion of “Request to Address the Council Form” available in the lobby of the Council Chambers or in the City Clerk’s office. This form must be completed 15 minutes prior to the scheduled meeting time.
Pursuant to Section 54957.5 of the California Government Code, Any writings (Except for those writings which are exempt from disclosure) which are distributed to all or a majority of the members of the City Council are available for public inspection in the lobby of the City Council Chambers and in the office of the City Clerk during regular business hours.
COMPTON CITY COUNCIL
AGENDA
11/26/2024
5:30 PM
OPENING
MOMENT OF SILENCE
PLEDGE OF ALLEGIANCE
ROLL CALL
PUBLIC COMMENTS ON AGENDA ITEMS AND NON-AGENDA MATTERS
CONSENT AGENDA
Consent items are routine and expected to be non-controversial. They will be acted upon by the Council at one time without discussion unless a Council Member requests an item be removed or discussed..
CITY FIRE DEPARTMENT
1. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON AMENDING THE 2024-2025 FISCAL YEAR BUDGET TO APPROPRIATE $76,832.00 AND ISSUE A PURCHASE ORDER TO 72 HOUR, LLC DBA
NATIONAL AUTO FLEET GROUP TO PAY THE REMAINING BALANCE OF ONE (1) NEW COMMAND VEHICLE FOR THE FIRE DEPARTMENT ($76,832.00) -2- City Council Agenda
11/26/2024 5:30PM
CITY MANAGER
2. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON
AUTHORIZING THE CITY MANAGER TO EXTEND THE CURRENT
PROFESSIONAL SERVICES AGREEMENT WITH AND ESTABLISH A
PURCHASE ORDER FOR ELEVATE PUBLIC AFFAIRS TO PROVIDE PUBLIC RELATIONS SERVICES ($103,800)
GENERAL SERVICES
3. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON
AUTHORIZING THE CITY MANAGER TO ENTER INTO A PROFESSIONAL
SERVICE AGREEMENT AND ESTABLISH A PURCHASE ORDER TO GEARY FLOORS, INC. FOR THE LUEDERS PARK GYMNASIUM FLOOR REPAIR PROJECT ($36,000.00)
GRANTS DEPARTMENT
4. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON AMENDING THE 2024-2025 FISCAL YEAR BUDGET TO APPROPRIATE FUNDS
FROM THE CALIFORNIA DEPARTMENT OF JUSTICE DIVISION OF
OPERATIONS TO ENFORCE A LOCAL ORDINANCE OR STATE LAW RELATED
TO THE ILLEGAL SALE AND MARKETING OF TOBACCO PRODUCTS TO MINORS ($192,729)
WATER DEPARTMENT
5. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON AUTHORIZING THE CITY MANAGER TO AMEND THE CITY'S 2024-2025
FISCAL YEAR BUDGET TO APPROPRIATE GRANT FUNDS IN ACCOUNTS TO
CREATE PURCHASE ORDERS THAT WILL ASSIST THE CITY'S COMPLIANCE WITH SENATE BILL 1383 (SB1383).
REGULAR AGENDA
NEW BUSINESS
6. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON RESCINDING RESOLUTION NO. 25,677 AND AUTHORIZING THE CITY MANAGER TO ESTABLISH THE CITY’S PURCHASING CARD ACCOUNTS THROUGH THE STATE OF CALIFORNIA’S CAL-CARD PROGRAM TO BE
UTILIZED SOLELY AND EXCLUSIVELY FOR APPROVED CITY BUSINESS AND
TO RECEIVE AND FILE THE CITY CREDIT CARD POLICY
-3- City Council Agenda
11/26/2024 5:30PM
7. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON
AUTHORIZING THE CITY MANAGER TO ACCEPT THE PROPOSAL, ENTER
INTO A CONTRACT SERVICES AGREEMENT AND ESTABLISH A PURCHASE ORDER FOR R2BUILD (DBA R2B ENGINEERING) FOR THE UPGRADE OF THE
CITY'S CHLORINATION SYSTEM IN AN AMOUNT NOT TO EXCEED TWO
MILLION THREE HUNDRED EIGHTY-NINE THOUSAND SIX HUNDRED
DOLLARS ($2,389,600.)
8. A REQUEST TO RECEIVE AND FILE THE FISCAL YEAR 2021-2022 AUDITED FINANCIAL STATEMENTS AND THE FISCAL YEAR 2021-2022 SINGLE AUDIT
REPORT OF THE CITY OF COMPTON
COUNCIL COMMENTS
ADJOURNMENT
NEXT REGULAR MEETING: 12/3/2024 5:30PM
Visit our website at http://www.comptoncity.org
November 26, 2024
TO: MAYOR AND COUNCIL MEMBERS
FROM: FIRE DEPARTMENT
SUBJECT: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON AMENDING THE 2024-2025 FISCAL YEAR BUDGET
TO APPROPRIATE $76,832.00 AND ISSUE A PURCHASE
ORDER TO 72 HOUR, LLC DBA NATIONAL AUTO FLEET
GROUP TO PAY THE REMAINING BALANCE OF ONE (1) NEW
COMMAND VEHICLE FOR THE FIRE DEPARTMENT ($76,832.00)
SUMMARY
Adoption of the attached resolution will authorize the City Manager to amend the approved City FY2024-2025 Budget and issue a purchase order to 72 Hour, LLC DBA National Auto Fleet Group for the remaining balance for the completion of one (1) new Command vehicle in an amount not to exceed Seventy-Six Thousand, Eight Hundred Thirty-Two Dollars and Zero Cents ($76,832.00).
BACKGROUND
The Fire Department’s Command Vehicle is over 10+ years old. Due to the high volume of Fire responses along with the continued increase in mileage, the yearly cost of repairs and maintenance has continued to increase.
The Fire Department needs to replace the current command vehicle, given its age and costs to maintain.
Council authorized the purchase of a new Command vehicle under Resolution no. 25,808 during its March 28, 2023 meeting in an amount not to exceed Two Hundred Twenty-One Thousand Seven Hundred Six Dollars and Ninety Cents ($221,706.90)
STATEMENT OF THE ISSUE
The command vehicle will be completed by December of 2024. The final payment of Seventy-Nine Thousand, Two Hundred Sixty-Six Dollars and Ten Cents ($79,266.10) are due prior to the delivery of the vehicle. A check was issued for the first payment on July 26, 2023 for an amount of $144,874.90, however, the purchase order was closed out before the vehicle was delivered and final payment was to be made.
In order to accept delivery, the City must issue another purchase order for the remaining balance of Seventy-Six Thousand, Eight Hundred Thirty-Two Dollars and Zero Cents ($76,832.00).to 72 Hour, LLC DBA National Auto Fleet Group.
1.1.1. FIRE TRUCKS UNLIMITED STAFF REPORT
City Council approval is needed because the expenditure exceeds $75,000.00.
FISCAL IMPACT
Under the terms of the agreement with 72 Hour, LLC DBA National Auto Fleet Group, the cost for one (1) New Command Vehicle is Two Hundred Twenty-One Thousand Seven Hundred Six Dollars and Ninety Cents ($221,706.90). The remaining balance is Seventy-Six Thousand, Eight Hundred Thirty-Two Dollars and Zero Cents ($76,832.00).
Upon approval of this resolution, appropriation will be from ARPA revenues. The expenditure meets the ARPA criteria for responding to emergencies and capital equipment for such response services. The Fire department’s FY2024-2025 Budget will need to be amended as follows:
Increase Revenue Appropriation:
Increase Revenue Account Description Amount
2810-690-000-3565 Federal Grant Revenue
ARPA Fund $76,832.00
Increase in Expenditure Appropriation:
Increase Expenditure Account Description Amount
2810-690-000-4300 Capital Outlay ARPA Fund $76,832.00
Funds in the amount not to exceed Seventy-Six Thousand, Eight Hundred Thirty-Two Dollars and Zero Cents ($76,832.00). for this expenditure will be available in the FY2024-2025 Budget in Account No. 2810-690-000-4333.
RECOMMENDATION
Staff recommends that the City Council adopt the attached Resolution.
RONERICK D. SIMPSON
FIRE CHIEF
APPROVED FOR FORWARDING:
WILLIE A. HOPKINS
CITY MANAGER
RESOLUTION NO. _____________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON AMENDING THE 2024-2025 TO APPROPRIATE $76,832.00 AND ISSUE A PURCHASE ORDER TO 72 HOUR, LLC DBA NATIONAL AUTO
FLEET GROUP TO PAY THE REMAINING BALANCE OF ONE (1) NEW COMMAND VEHICLE FOR THE FIRE DEPARTMENT ($76,832.00)
WHEREAS, the Fire Department (“Department”) current command vehicle is over 10+ years old and it covers the entire City which is essential for safe and efficient emergency response and operation; and
WHEREAS, the Department due to the continued usage and increase in mileage, the yearly cost of repairs and maintenance has continued to increase; and WHEREAS, on March 28, 2023, City Council approved Resolution #25,808 allowing for the purchase of one (1) 2023 Dodge Ram 3500 Crew command vehicle from 72 Hour, LLC DBA National Auto Fleet Group for Two Hundred Twenty-One Thousand Seven Hundred Six Dollars and Ninety Cents ($221,706.90); and WHEREAS, the first payment was issued on July 26, 2023, however, the purchase order was closed out before final payment was to be made; and WHEREAS, funds were returned to the fund balance; and
WHEREAS, the final payment of $76,832.00 is needed before delivery of the vehicle; and
WHEREAS, the 2024-2025 Fiscal Year budget will need to be amended.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COMPTON DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1.That the 2024-2025 Fiscal Year Fire Department Budget shall be amended as follows:
Increase Revenue Appropriation:
Increase Revenue Account Description Amount
2810-690-000-3565 Federal Grant Revenue
ARPA Fund $76,832.00
Increase in Expenditure Appropriation:
Increase Expenditure Account Description Amount
2810-690-000-4300 Capital Outlay ARPA Fund $76,832.00
SECTION 2. That the City Manager is hereby authorized to establish a purchase order to 72 Hour, LLC DBA National Auto Fleet Group in an amount not-to-exceed Seventy-Six Thousand, Eight Hundred Thirty-Two Dollars and Zero Cents ($76,832.00).
SECTION 3. That funds for this expenditure are available in Fiscal Year 2024-2025 Budget in Account No. 2810-690-000-4333.
SECTION 4. That a copy of this Resolution shall be filed in the offices of the City Clerk, City Manager, City Controller, City Attorney and the Fire Department.
SECTION 5. That the Mayor shall sign and the City Clerk shall attest to the adoption of this Resolution.
RESOLUTION NO. ________________
PAGE TWO
ADOPTED this _________________ day of ___________, 2024 _______________________________
MAYOR OF THE CITY OF COMPTON
ATTEST:
___________________________________
CITY CLERK OF THE CITY OF COMPTON
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss
CITY OF COMPTON )
I, Vernell McDaniel, City Clerk of the City of Compton, hereby certify that the foregoing Resolution was adopted by the City Council of the City of Compton, signed by the Mayor and attested by the City Clerk at a regular meeting thereof held on this ________ day of ___________________, 2024.
That this Resolution was adopted by the following vote, to wit:
AYES: Council Members-
NOES: Council Members-
ABSTAIN: Council Members-
ABSENT: Council Members-
___________________________________
CITY CLERK OF THE CITY OF COMPTON
November 26, 2024
TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS
FROM: CITY MANAGER OFFICE
SUBJECT: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON
AUTHORIZING THE CITY MANAGER TO EXTEND THE CURRENT
PROFESSIONAL SERVICES AGREEMENT WITH AND ESTABLISH A
PURCHASE ORDER FOR ELEVATE PUBLIC AFFAIRS TO PROVIDE
PUBLIC RELATIONS SERVICES ($103,800)
SUMMARY
Adoption of this resolution will authorize the City Manager to enter into a twelve (12) month (July 2024 through June 30, 2025) professional services agreement with Elevate Public Affairs to serve as the City’s Communication and Public Information Spokesperson and establish a purchase order in the amount of one hundred three thousand eight hundred dollars ($103,800).
BACKGROUND
The City has utilized Elevate Public Affairs (Elevate), a public relations firm, to serve as its Communication and Public Information Spokesperson (CPIS) since July 2019. In that time, Elevate has served as the City’s point of contact for media outlets and has also been utilized by the City Council and City Management to coordinate responses to various issues from COVID-19, announcement of new City fleet, the Artesia Bridge and street improvement projects. The initial agreement was for nine months and contained two, one-year extensions. The last extension expired on June 30, 2022, requiring the City to solicit proposals from qualified firms and consultants with experience in media relations.
On April 26, 2022, the City Manager’s Office advertised for Communication and Public Information Spokesperson services. An essential component of the Request for Quotation (RFQ) was to obtain professional assistance and guidance with public and internal communications, governmental brand management and strategic community partnership. Essentially, the Public Information Spokesperson (CPIS) is responsible for managing the City’s messaging on current and newsworthy communication through mainstream news outlets, social media and other digital press interfaces.
On May 11, 2022, three (3) written proposals were received. The responding firms and consultants described how their respective agencies envision serving as the City’s CPIS working with all elected City officials and City management while adding to and developing a comprehensive unified look, feel and style for public communications
2.2.2.2. Staff Report – Resolution Authorizing Agreement with Elevate Public Affairs Communications and Public Information Spokesperson Services November 26, 2022, Page 2 of 3
material produced and distributed by the City. The following are synopses and corresponding rates for each responding firm:
ELEVATE PUBLIC AFFAIRS — Experienced in working with municipalities and public agencies on positive and crisis communications, media advisories, press releases, branding collateral, communications protocols handbooks, website, social media, fluent in Spanish media, and more. Their proposed fees are $103,800 annually for all services requested. Staff deemed their proposal to be the most responsive and recommend they be retained as the City’s Communication and Public Information Spokesperson.
SZABO and ASSOCIATES — Proficient in providing strategic communications services to cities, counties and Southern California school district among other clients. Specialize in legal, media, and policy backgrounds, they are able to offer clients a unique continuum of services and expertise. The firm did not provide an annual cost, but proposed an hourly rate depending on the level of expertise of the staff involved ranging from $395/hr to $125/hr. Staff deemed this proposal “non-responsive” and disqualified it from further consideration as it did not give the City a clear idea of total annual cost needed.
TOC PUBLIC RELATIONS — Experienced PR firm that specializes in digital marketing, strategic communications, and all aspects of public relations. TOC has over 100 years of combined experience in the profession, and a specialty in government and public safety agencies organizations. Their proposed fees are $102,000 annually for all services requested, but their proposal was severely lacking in detail. While providing the lowest cost proposal, staffed disqualified it as well. The proposal only identified one person, didn’t identify other public agencies that they’ve worked with in the past as references, or provide samples of work product displaying their abilities in handling similar scopes of work.
STATEMENT OF ISSUE
Staff reviewed the proposals and determined that the proposal presented by Elevate Public Affairs, a local, women-owned firm possessed the training, experience and professionalism, at reasonable costs, to provide the services needed and sought by the City. While Elevate was not the lowest bid submitted, they were selected because they proved they can provide the City with the best service, as evidenced through their proposal and through their history of work in Compton. Under the direction of the City Manager’s Office, the approved budget provides for funds to engage a qualified CPIS to work in the interest of the City for media relations, public information management, social media management, market branding, and all matters dealing with verbal and written public statements.
Staff recommends that the City enter into the second of two (2) one (1) year extension options, with Elevate Public Affairs and establish a purchase order in an amount not to Staff Report – Resolution Authorizing Agreement with Elevate Public Affairs Communications and Public Information Spokesperson Services November 26, 2022, Page 3 of 3
exceed One Hundred Three Thousand and Eight Dollars ($103,800) to Elevate Public Affairs.
FISCAL IMPACT
Upon approval by city council the funds in the amount of $103,800.00 has been budgeted and made available in the City Managers 2024-2025 Fiscal Year budget(s) in Account No. 1001-510-000-4262
RECOMMENDATION
Staff recommends the City Council adopt the attached Resolution.
WILLIE A. HOPKINS, JR.
CITY MANAGER
RESOLUTION NO. ____________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON
AUTHORIZING THE CITY MANAGER TO EXTEND THE CURRENT PROFESSIONAL
SERVICES AGREEMENT WITH AND ESTABLISH A PURCHASE ORDER FOR
ELEVATE PUBLIC AFFAIRS TO PROVIDE PUBLIC RELATIONS SERVICES ($103,800)
WHEREAS, on September 20, 2022, the City Council adopted Resolution No. 25,729, which authorized the City Manager to enter into a professional services agreement with the Consultant (Elevate Public Affairs, LLC) for the services of an experienced and professional Public Information Official/Spokesperson (“PIO”) at a total compensation not-to-exceed the amount of $103,800.00; and WHEREAS, pursuant to the provisions of the Professional Services Agreement (“Agreement”), Elevate Public Affairs, LLC., is to render services of an experienced and professional Public Information Official/Spokesperson (“PIO”) to interface with the media on a variety of municipal issues including, but not limited to public safety, water sanitation, street improvements, recreation programs, business attractions, financial budget status, asset protection, City housing, homeless management, and the likes; and
WHEREAS, by Resolution No. 25,729, adopted on the 20th of September 2022, the City Council authorized the City Manager to enter into a professional services agreement with the Consultant (Elevate Public Affairs, LLC) to provide the needed services; and
WHEREAS, Resolution No. 25,729 authorized the City Manager to exercise a one-year renewal option for the Contractor to provide the services of an experienced and professional Public Information Official/Spokesperson (“PIO”); and WHEREAS, the CITY and the CONTRACTOR desire to exercise the renewal option and extend the term of the original Agreement for a period of one (1) year (i.e. July 1, 2024 through June 30, 2025) at the agreed compensation amount, not-to-exceed One Hundred Three Thousand Eight Hundred Dollars ($103,800.00) per contract year extension.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COMPTON DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1.That the City Manager, upon the advice and approval of the City Attorney, is hereby authorized to extend the current professional services agreement with Elevate Public Affairs for the provision of public and internal strategic communications, strategic governmental brand management, social, print and televised media relations, news media planning and strategic community partnerships for the City.
SECTION 2.The City Manager is approved to extend the current professional services agreement with Elevate Public Affairs for one (1) year of the two (2) one-year options for 2024 – 2025. This is the second of two (2) one (1) year extensions.
SECTION 3.That the City Manager is authorized to open a purchase order to Elevate Public Affairs in the amount of One Hundred Three Thousand and Eight Hundred Dollars ($103,800) from Account No. 1001-510-000-4262, General Fund, City Manager Department, Other Professional Services expense account.
SECTION 4.That a copy of this Resolution shall be filed in the offices of the City Clerk, City Manager, City Attorney, and City Controller.
SECTION 5.That the Mayor shall sign and the City Clerk shall attest to the adoption of this Resolution.
Resolution No. _______________
ADOPTED this __________ day of _____________, 2024.
________________________________
MAYOR OF THE CITY OF COMPTON
ATTEST:
___________________________________
CITY CLERK OF THE CITY OF COMPTON
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES
CITY OF COMPTON: ss
I, Vernell McDaniel, City Clerk of the City of Compton, hereby certify that the foregoing Resolution was adopted by the City Council, signed by the Mayor and attested to by the City Clerk, at a regular meeting thereof held on the ________ day of _________________, 2024.
That said Resolution was adopted by the following vote, to wit:
AYES: COUNCIL MEMBERS-
NOES: COUNCIL MEMBERS-
ABSTAIN: COUNCIL MEMBERS-
ABSENT: COUNCIL MEMBERS-
____________________________________
CITY CLERK OF THE CITY OF COMPTON
PROFESSIONAL SERVICES AGREEMENT
BETWEEN
CITY OF COMPTON
AND
ELEVATE PUBLIC AFFAIRS, LLC.
This AMENDED AGREEMENT is entered by and between the CITY OF COMPTON, a municipal corporation of the State of California (hereinafter referred to as “CITY” ) located at 205 South Willowbrook Avenue, Compton, California 90220, and ELEVATE PUBLIC AFFAIRS, LLC . (hereinafter referred to as “CONSULTANT”), located at 10474 Santa Monica Blvd, Suite 405, California 90025
RECITALS:
WHEREAS, the City has a vital need for the services of an experienced and professional Public Information Official/Spokesperson (“PIO”) to interface with the media on a variety of municipal issues including, but not limited to public safety, water sanitation, street improvements, recreation programs, business attractions, financial budget status, asset protection, City housing, homeless management, and the likes; and
WHEREAS, Consultant warrants that it is specifically trained, experienced, competent, and has the resources to provide such services which will be required by this Agreement; and
WHEREAS, by Resolution No. 25,729, adopted on the 20
th of September 2022, the City Council
authorized the City Manager to enter into a professional services agreement with the Consultant ( Elevate Public Affairs, LLC) to provide the needed services; and
WHEREAS, Consultant is willing to render such professional services subject to the terms and conditions set forth in this Agreement.
NOW, THEREFORE, Consultant and City, (collectively the “Parties”), for the consideration, terms and conditions herein described, mutually agree as follows:
AGREEMENT:
1. Services to be rendered by Consultant. It is the mutual understanding of the Parties that the Consultant shall perform professional services as the Public Information Official/Spokesperson (“PIO”) for the City’s messaging of current and topical communications through mainstream news outlets, social media and other digital press interaction and provide professional and technical assistance to the City as it relates to the development of an external and internal communications plan, which shall include, but is not limited to the future and overall goal of unifying communication materials in the City and provide innovative and current information on City services . As more fully discussed in the City’s “Request for Quotation for Communications and Public Information Spokesperson” (dated April 26, 2022) and Consultant’s Proposal – “Request for Quotation for Communications and Public Information Officer/Spokesperson” (dated April 26, 2022, both of which are incorporated by this reference.
Consultant acknowledges that in entering into this Agreement the City is relying on Consultant's special skills and experience to do and perform the services in accordance with best standards of professional practice. Consultant agrees to perform all the said services and to the extent not furnished by the City, furnish all the necessary materials at its own cost and expense necessary to complete said services in a manner consistent with that degree of care and skill ordinarily exercised by members of the same profession currently practicing under similar circumstances and to the reasonable satisfaction of the City.
Professional Services Agreement – Elevate Public Affairs, LLC Public Information Official/Spokesperson Services
City Manager’s Office/Resolution No. ________
Consultant services hereunder shall be performed in a good, workmanlike and professional manner. Consultant shall be responsible for correcting and completing all errors and omissions related to the services provided by the Consultant for this Agreement at no additional cost to the City . “Errors” and “Omissions” for purposes of this paragraph are defined to mean a failure by the Consultant to meet the standards of its profession as set forth in the preceding paragraph. The acceptance of the services by City does not release Consultant from these obligations.
Consultant will be responsible for employing or engaging all persons necessary to perform the services. All of Consultant's staff will be qualified by training and experience to perform their assi gned tasks. Consultant will give its personal attention to the fulfillment of the provisions of this Agreement by all of its employees and sub-consultants, if any, and will keep the services under its control. On demand of the City, if any employee or sub-c onsultant of Consultant fails or refuses to carry out the provisions of this Agreement or appears to be incompetent or to act in a disorderly or improper manner, Consultant agrees that he or she will be discharged from performing services pursuant to provisions of this Agreement .
Adriana Fernandez-Clark, Executive Vice President of Consultant, shall be primarily responsible for representing Consultant in performance of this Agreement.
2. Duration of Contract. The term of this A mended Agreement shall commence upon Notification to Proceed from the City to Consultant and Consultant shall perform the services in a diligent and professional manner pursuant to this Agreement through July 1, 2023 – June 30, 2024, as one (1) of the two (2) – one (1) year terms outlined below unless this Agreement is extended or terminated as provided herein.
If agreed to between the Parties, the term of this Agreement may be extended for two (2) – one (1) year terms (i.e. July 1, 2023 – June 30, 2024 and/or July 1, 2024 – June 30, 2025).
3. Compensation. The method of payment for the services will be based on a fee-for-services basis, billable at the rates identified within Consultant’s “Budget” within the “Proposal” , which is incorporated herein. It is understood and agreed between the Parties that the maximum compensation payable for all services performed by the Consultant during the initial term of this Agreement shall be limited to a not-to-exceed amount of One Hundred Three Thousand and Eight Hundred Dollars ($103,800.00).
Should the Parties agree to extend the term of this Agreement (see Section 2, above), it is understood and agreed that the maximum compensation payable for all services performed by the Consultant during each extension exercised, if any, shall be limited to the not-to-exceed amount of One Hundred Five Thousand Dollars ($105,000.00) per contract year extension.
The total price paid the Consultant will include compensation for all work, including travel, materials, supplies, vendor services, expenses and subcontracted work. No additional compensation will be paid to the Consultant, unless there is a change in the scope of the work or the scope of the project. In the instance of a change in the scope of work or scope of the project, adjustment to the total compensation will be negotiated between the Consultant and the City. Adjustment in the total compensation will not be effective until authorized and approved in writing by the City . Should the Parties be unable to agree as to a compensation adjustment amount for changes in the work or scope of the project, this Agreement may be terminated pursuant to the provisions of Section 16, below.
Consultant acknowledges the importance to City of the project schedule and agrees to put forth its best professional efforts to perform the services in a manner consistent with that schedule. City understands, however, that Consultant’s performance must be governed by sound practices. Consultant will work such overtime or engage such personnel and equipment as necessary to maintain the schedule, without additional compensation.
Professional Services Agreement – Elevate Public Affairs, LLC Public Information Official/Spokesperson Services
City Manager’s Office/Resolution No. ________
Consultant shall provide the City with monthly reports describing services performed during the preceding month of services. Reports and Invoices shall be delivered or mailed to the City Manager or his/her designee at the following address: City of Compton, 205 South Willowbrook Avenue, Compton, California 90220.
In the event of termination, the Consultant shall be entitled to compensation for the undisputed reasonable value of services performed to the effective date of termination, including any non- cancellable obligations incurred prior to termination; provided, however, that the City may condition payment of s uch compensation upon the Consultant’s delivery to the City of any and all City property, documents, reports, records, materials and work product associated with the performance of this Agreement.
4. Ownership of Materials. Consultant agrees that all of its customized reports, recommendations, plans, copyrightable materials and other work product created or assembled by it in the course of performing the services (“Work Product”) hereunder are works for hire for the benefit of the City and as such is the sole property of the City. To the extent that such materials and work product do not constitute work for hire, in consideration of the payments and other covenants of the City, as set forth or called for herein, Consultant hereby sells, transfers, conveys and assigns any and all of its rights therein to the City. In the event this Agreement is terminated, all Work Product produced by Consultant or its agents, employees and sub- consultants pursuant to this Agreement will be delivered to City pursuant to the termination clause of this Agreement.
The Work Product may be used by City and its agents, employees, representatives, and assigns, in whole or in part, or in modified form, for all purposes City may deem advisable, without further employment of or payment of any compensation to Consultant; provided, however, that if this Agreement is terminated for any reason prior to completion of the Project and if under such circumstances City uses, or engages the services of and directs another consultant to use, the Work Product, City agrees to hold Consultant harmless from any and all liability, costs, and expenses relative to claims arising out of matters and/or events which occur subsequent to the termination of this Agreement as a result of causes other than the fault or negligence of Consultant, or anyone for whose acts it is responsible, in preparation of the Work Product. Consultant will not be responsible for deficiencies solely attributable to modifications of the Work Product performed by others, or that arise from use of the Documents in connection with a project or site other than that shown in the Work Product.
5. Independent Consultant Status. Consultant, its officers, employees, subcontractor s, agents and volunteers (collectively hereinafter the “ Consultant”), is a wholly independent Consultant and not an officer, employee, sub-contractor or agent of the City of Compton. Neither the City nor any of its officers, employees, agents or volunteers shall have any control over the conduct of the Consultant, except as expressly set forth in this Agreement. Consultant expressly warrants that while engaged in carrying out and complying with any terms and conditions of this Agreement that Consultant shall not at any time or in any manner, represent that Consultant is in any manner officers, employees, agents or volunteers, joint venture or partner of the City. Consultant shall obtain no rights to retirement, health care or any other benefits that accrue to City officials, officers, or employees. Consultant expressly waives any claim to such rights. City will not make deductions from any amounts payable to Consultant of taxes or insurance. All payroll and employment taxes, insurance, and benefits shall be the sole responsibility of Consultant .
Consultant retains the right to provide services for others during the term of this Agreement .
The payment(s) made to Consultant pursuant to the Agreement will be the full and complete compensation to which Consultant is entitled. City will not make any federal or state tax withholdings on behalf of Consultant or its agents, employees or subcontractors. City will not pay any workers' compensation insurance, retirement contributions or unemployment contributions on behalf of Consultant or its employees or subcontractors. Consultant agrees to indemnify and pay City within thirty (30) days for any tax, retirement contribution, social security, overtime payment, unemployment payment or workers'
Professional Services Agreement – Elevate Public Affairs, LLC Public Information Official/Spokesperson Services
City Manager’s Office/Resolution No. ________
compensation payment which City may be required to make on behalf of Consultant or any agent, employee, or sub-consultant of Consultant for work done under this Agreement. At the City’s election, City may deduct the amounts paid pursuant to this Section, from any balance owing to Consultant.
6. Successors, Assignment and Delegation. City and the Consultant each binds themselves, their partners, successors, assigns and legal representatives to the other hereto and to partners, successors, assigns and legal representatives of such other party in respect to all covenants, agreements and obligations contained in this Agreement.
The expertise and experience of Consultant are material considerations for this Agreement.
Consultant shall not assign or transfer any interest in this Agreement or the performance of any of Consultant’s obligations under this Agreement without the prior written consent of the City. Any attempted assignment or transfer of any of Consultant’s rights, duties or obligations arising under this Agreement shall be null and void.
7. Nondiscriminatory Employment Practices. During the performance of this Agreement, the Consultant agrees not to discriminate against any employee or applicant for employment because of race, sex, creed, color, religion, age, sexual orientation, marital status, national origi n, political affiliation, handicap or belief in accordance with requirements of City, State or Federal laws and regulations.
Consultant will take affirmative action to ensure that applicants are employed, and that employees are treated during employment without regard to their race, sex, creed, color, religion, age, sexual orientation, marital status, national origin, political affiliation, handicap or belief in accordance with requirements of City, State or Federal laws and regulations. Such actions shall include, but not be limited to the following:
employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layoffs or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The Consultant agrees to post in conspicuous places, available to employees, applicants and sub- consultants for employment, notices setting forth the provisions of this non-discrimination clause.
In the event of the Consultant’s non- compliance with the non-discrimination clause of this Agreement, this Agreement may be immediately canceled, terminated or suspended in whole or in part.
8. Subcontracting. Consultant's services are unique and personal. Except as may be specified in Consultant’s Proposal and agreed to by the City, Consultant will not subcontract any portion of the services without prior written approval of City Manager or his/her designee. If Consultant subcontracts any of the services, Consultant will be fully responsible to City for the acts, errors and omissions of Consultant's sub-consultant and of the persons either directly or indirectly employed by the sub-consultant, as Consultant is for the acts and omissions of persons directly employed by Consultant. Nothing contained in this Ag reement will create any contractual relationship between any sub-c onsultant of Consultant and City. Consultant will be responsible for payment of sub- consultants. Consultant will bind every sub- consultant by the terms of this Agreement applicable to Consultant's work unless specifically noted to the contrary in the subcontract and approved in writing by City.
9. Other Consultants. The City reserves the right to employ other consultants in connection with the services.
10. Indemnification. Consultant shall indemnify and save harmless the City, its officials, officers, employees, agents and volunteers (collectively hereinafter the “City”), against any and all damages to property or injuries to or death of any person or persons, including property and employees or agents of the City and shall indemnify and save the City from any and all liability and expense including reimbursement of reasonable defense costs and legal fees, and claims, demands, suits, actions or proceedings of any kind or nature, including Workers’ Compensation claims, of or by anyone whomsoever to the extent resulting from or arising out of the negligent, reckless or willful misconduct for the Consultant, its officers, employees, sub- consultants, or agents in the performance of the duties undertaken by Consultant pursuant to this Agreement.
Professional Services Agreement – Elevate Public Affairs, LLC Public Information Official/Spokesperson Services
City Manager’s Office/Resolution No. ________
This indemnification and hold harmless obligation does not extend to claims arising out of the negligence or willful misconduct of the City.
11. Insurance. Without limiting the Consultant’s indemnification of the City, Consultant shall obtain and maintain, at its cost and expense, for the duration of the Agreement and any and all amendments hereto, insurance against claims for injuries to persons or damage to property which may arise out of or in connection with performance of the services by Consultant or Consultant’s agents, representatives, employees or sub-consultants. The insurance will be obtained from an insurance carrier admitted and authorized to do business in the State of California. Such evidence shall specifically identify this Agreement and shall contain express conditions that the City is to be given written notice at least thirty (30) days in advance of any termination or implementation of a reduction of limits or material change of insurance coverage as specified herein. Failure on the part of the Consultant to procure or maintain insurance shall constitute a material breach upon which the City may immediately terminate this Agreement.
All insurance required hereunder shall be primary with respect to any insurance maintained by the City .
Coverages and Limits. Consultant will maintain the types of coverages and minimum limits indicated below, unless the Risk Manager or City Manager, in consultation with the City Attorney approves a lower amount. These minimum amounts of coverage will not constitute any limitations or cap on Consultant's indemnification obligations under this Agreement. City, its officers, agents, volunteers and employees make no representation that the limits of the insurance specified to be carried by Consultant pursuant to this Agreement are adequate to protect Consultant. The coverage will contain no special limitations on the scope of its protection to the below-indicated insureds except for Workers Compensation and errors and omissions insurance. Consultant will obtain occurrence coverage, excluding Professional Liability, which will be written as claims-made coverage. If Consultant believes that any required insurance coverage is inadequate, Consultant will obtain such additional insurance coverage, as Consultant deems adequate, at Consultant's sole expense.
11.1 Commercial General Liability Insurance. $1,000,000 combined single- limit per occurrence for bodily injury, personal injury and property damage. If the submitted policies contain aggregate limits, general aggregate limits will apply separately to the work under this Agreement or the general aggregate will be twice the required per occurrence limit.
11.2 Workers' Compensation and Employer's Liability. Workers' Compensation limits as required by the California Labor Code and Employer's Liability limits of $1,000,000 per accident for bodily injury. Workers' Compensation and Employer's Liability insurance will not be required if Consultant has no employees and provides, to City's satisfaction, a declaration stating this.
11.3 Professional Liability. Errors and omissions liability appropriate to Consultant’s profession with limits of not less than $1,000,000 per claim. The coverage shall also provide an extended two (2) year reporting period commencing upon termination or cancellation of this Agreement.
Endorsements. For Commercial General Liability Insurance, Consultant will ensure that the policies are endorsed to name the City of Compton and its respective elected and appointed officers, officials, employees, agents and volunteers as “additional insureds” with respect to liability arising out of the activities of the Consultant. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to the City. Prior to City's execution of this Agreement, Consultant will furnish certificates of insurance and endorsements to City.
Waiver of Subrogation. The policies shall contain a waiver of subrogation for the benefit of City.
12. Permits and Licenses. Consultant, at its own expense, during the term of this Agreement, shall obtain and maintain all appropriate business and professional permits, licenses and certificates that may be required in connection with the performance of services by the Consultant. Upon execution of this Professional Services Agreement – Elevate Public Affairs, LLC Public Information Official/Spokesperson Services
City Manager’s Office/Resolution No. ________
Agreement, the Consultant shall show evidence of a business license permit in conformance with Section 9-1.2 of the Compton Municipal Code.
13. Maintenance of Records . Consultant will maintain complete and accurate records with respect to costs incurred under this Agreement. All records will be clearly identifiable. Consultant will allow a representative of City during normal business hours to examine, audit, and make transcripts or copies of records and any other documents created pursuant to this Agreement. Consultant will allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period of three (3) years, or longer if required by law, from the date of final payment under this Agreement.
14. Warranties. Consultant represents and warrants (i) that Consultant has no obligations, legal or otherwise, inconsistent with the terms of this Agreement or with Consultant’s undertaking this relationship with City, (ii) that the performance of the services called for by this Agreement do not and will not violate any applicable law, rule or regulation or any proprietary or other right of any third party, (iii) that Consultant will not use in the performance of his responsibilities under this Agreement any confidential information or trade secrets of any other person or entity and (iv) that Consultant has not knowingly entered into or will enter into any agreement (whether oral or written) in conflict with this Agreement.
15. General Compliance with Laws. Consultant will keep fully informed of federal, state and local laws and ordinances and regulations, which in any manner affect those employed by Consultant, or in any way affect the performance of the services by Consultant. Consultant will at all times observe and comply with these laws, ordinances, and regulations and will be responsible for the compliance of the services with all applicable laws, ordinances and regulations. In the event the Consultant encounters any conflict between such laws and ordinances, Consultant shall notify the City in writing and the Parties agree to work cooperatively to resolve the conflict.
16. Termination. In the event of the Consultant's failure to prosecute, deliver, or perform the services, after giving written notice of default and two (2) days to correct the same, then, in addition to any other remedies, City may terminate this Agreement for nonperformance by notifying Consultant in writing.
Consultant has five (5) business days to deliver any documents owned by City and all work in progress to City address contained in this Agreement. City will make a determination of fact based upon the work product delivered to City and of the percentage of work that Consultant has performed which is usable and of worth to City in having the Agreement completed. Based upon that finding City will determine the final payment of the Agreement. In the event City elects to terminate, City will have the right to immediate possession of all Work Product and work in progress prepared by Consultant, whether located at Consultant's place of business, or at the offices of a sub-consultant.
The City’s obligation is payable only from funds appropriated for the purpose of this Agreement.
All funds for payments after the end of the current fiscal year are subject to the City’s legislative appropriation for this purpose. In the event this Agreement extends into succeeding fiscal year periods and the City Council does not allocate sufficient funds for the next succeeding fiscal year payments, this Agreement shall terminate immediately upon written notice from the City.
Either Party, upon tendering ten (10) calendar days written notice to the other Party, may terminate this Agreement for convenience. In this event and upon request of City, Consultant will assemble the work product without charge, put it in order for proper filing and closing, and deliver it to City. Consultant will be paid for work performed to the termination date; however, the total shall not exceed the maximum amount payable as specified in Section 3, above. City will make the final determination as to the portions of tasks completed and the compensation to be made.
17. Covenants Against Contingent Fees. Consultant warrants that Consultant has not employed or retained any company or person, other than a bona fide employee working for Consultant, to solicit or secure this Agreement, and that Consultant has not paid or agreed to pay any company or person, ot her than a bona fide employee, any fee, commission, percentage, brokerage fee, gift, or any other consideration contingent upon, or resulting from, the award or making of this Agreement. For breach or violation of this warranty, City will have the right to terminate this Agreement for nonperformance, or, in its discretion, to Professional Services Agreement – Elevate Public Affairs, LLC Public Information Official/Spokesperson Services
City Manager’s Office/Resolution No. ________
deduct from the Agreement price or consideration, or otherwise recover, the full amount of the fee, commission, percentage, brokerage fees, gift, or contingent fee.
18. Certifications. The Consultant, under penalty of perjury, certifies that, except as noted below, he/she or any other person associated therewith in the capacity of owner, partner, director, officer, manager:
a. is not currently under suspension, debarment, voluntary exclusion, or determination of ineligibility by any Federal, State or local agency;
b. has not been suspended, debarred, voluntarily excluded or determined ineligible by any Federal, State or local agency within the past 3 years;
c. does not have a proposed debarment pending; and
d. has not been indicted, convicted, or had a civil judgment rendered against he/she/it by a court of competent jurisdiction in any matter involving fraud or official misconduct in connection with obtaining, attempting to obtain, or performing a public (Federal, state or local) transaction or contract under a public transaction; violation of Federal or state antitrust statutes or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, or receiving stolen property within the past 3 years; and e. are not presently indicted or otherwise criminally or civilly charged by a governmental entity (Federal, State or local) with commission of any of the offenses enumerated in the preceding subsection (d); and
f. have not had one or more public transactions (Federal, State or local) terminated for cause or default within the past 3 years.
If there are any exceptions to this certification, insert the exceptions in the following space.
[Supply exceptions on separate page]
For any exception noted above, indicate below to whom it applies, initiating agency, and dates of action.
[Attach separate page]
This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction. The above certifications are part of this Agreement . Signing this Agreement on the signature portion thereof shall also constitute signature of the above Certifications.
______________________________________ ___________________ Becky Warren, Principal Date
19. Jurisdiction, Venue and Governing Law . Any action at law or in equity brought by either of the Parties for the purpose of enforcing a right or rights provided for by this Agreement will be tried in a court of competent jurisdiction in the County of Los Angeles, State of California, and the Parties waive all provisions of law providing for a change of venue in these proceedings to any other county. This agreement will be governed by the laws of the State of California.
20. Testimony. Consultant will testify at City's request if litigation is brought against City in connection with Consultant's services under this Agreement. Unless the action is brought by Consultant, or is based upon Consultant's actual or alleged negligence or other wrongdoing, City, upon prior written agreement with Consultant will compensate Consultant for time spent in preparation for testimony, testimony, and travel at Consultant's standard hourly rates at the time of actual testimony.
21. Waivers. The waiver by either Party of any breach or violation of any term, covenant, or condition of this Agreement or of any applicable law will not be deemed to be a waiver of such term, covenant, condition or law or of any subsequent breach or violation of same or of any other term, covenant, condition or law. The acceptance by either Party of any fee or other payment which may become due under Professional Services Agreement – Elevate Public Affairs, LLC Public Information Official/Spokesperson Services
City Manager’s Office/Resolution No. ________
this Agreement will not be deemed to be a waiver of any preceding breach or violation by the other Party of any term, covenant, or condition of this Agreement or any applicable law.
22. Authority. The individuals executing this Agreement and the instruments referenced in it , each represent and warrant that they have the legal power, right and actual authority to bind the respectives Parties to the terms and conditions of this Agreement.
23. Severability. If any term, provision, condition or covenant of this Agreement or its application to any party or circumstances shall be held, to any extent, invalid or unenforceable, the remainder of this Agreement, or the application of the term, provision, condition or covenant to persons or circumstances other than those as to whom or which it is held invalid or unenforceable, shall not be affected, and shall be valid and enforceable to the fullest extent permitted by law.
24. Amendments. This Agreement may be modified or amended only be written document executed by both Consultant and City’s City Manager and approved as to form by the City Attorney. Such document shall expressly state that it is intended by the Parties to amend the terms and conditions of this Agreement.
25. Confidentiality and Trade Secret Information.
25.1 Use of Confidential Information. The Parties may be required to disclose C onfidential Information to each other. As such, the Parties shall use Confidential Information solely for the purpose and in the context of the Parties' evaluation of the Project and shall not otherwise use, or authorize the use of, any Confidential Information. Neither Party or any of its Affiliates, nor any of their respective Representatives, shall have any obligation to disclose any Confidential Information at any time.
25.2 Non-Disclosure of Confidential Information.
(a) Non-Disclosure Without Consent. The Parties acknowledge that the disclosure of any Confidential Information would cause severe adverse personal, business and financial consequences to the Party including, but limited to loss, dilution or reduction of business or business prospects and adverse publicity. Without the prior written consent of the Party in each instance, or as otherwise specifically permitted by this Agreement, the Parties shall not, at any time or times, directly or indirectly, disclose or authorize or permit to be disclosed: (i) any Confidential Information; or (ii) any Confidential Information that has been made available to, or is in the possession or under the control of the Party. Immediately upon request by either Party, at any time or times, the Parties shall deliver to the requesting Party a complete and accurate list of the names, addresses and telephone numbers of all Persons to whom any copy of, or access to, any Confidential Information has been provided by or on behalf of said Party notwithstanding this Agreement.
(b) Prohibition on Reproduction. The Parties shall not, at any time or times, directly or indirectly, copy, otherwise reproduce, or make any extract or summary of any Confidential Information, or any materials containing or storing any Confidential Information, for any purpose other than the purposes specifically permitted by this Agreement. The Parties shall maintain adequate security measures so that none of the Confidential Information may be disclosed, reproduced, made available or distributed in any manner not otherwise specifically permitted by this Agreement. All media in which any Confidential Information is recorded or stored, and which at any time is within the possession or under the control of the Parties, immediately shall be delivered to the respective Parties upon the termination of the relationship and upon written request of either Party, for any reason, or at any other time, upon request by either Party.
(c) Notice of Demands. If, at any time or times, the Parties are requested or required (by oral questions, interrogatories, requests for information or documents, subpoena, civil investigative demand or other process) to disclose any Confidential Information, the Party shall provide to the other Party immediate written notice thereof so that said Party may seek an appropriate protective order Professional Services Agreement – Elevate Public Affairs, LLC Public Information Official/Spokesperson Services
City Manager’s Office/Resolution No. ________
or waive compliance with the applicable provision of this Agreement. If, failing the entry of a protective order or the receipt of a waiver hereunder, in the written opinion of that Party's legal counsel (delivered to the
Party at least fifteen (15) business days prior to any such disclosure), is compelled to disclose any Confidential Information, the Party may disclose only that portion of the Confidential Information that counsel so opines must be disclosed and the Party shall use its utmost best efforts to obtain assurance that confidential treatment shall be accorded to that portion of the Confidential Information being disclosed. In no event shall the Parties, or anyone on behalf of the Parties, oppose, hinder or impair the ability of the Party to take any action to obtain a protective order or other assurance satisfactory to said Party that confidential treatment shall be accorded to Confidential Information.
25.3 Trade Secret. Consultant agrees that during the course of providing services to the City, Consultant may have access to the City’s confidential/trade secret and proprietary information. Consultant understands that all such information is considered to be secret and proprietary to the City and is a valuable commercial asset of the City. Consultant agrees not to make use whatsoever, directly or indirectly, of t he City’s confidential information for Consultant’s personal benefit or for any other person, firm, corporation, or entity. Consultant agrees not to remove such information from t he City in any form or medium without the express written permission of the City. Consultant agrees not to reveal, disclose, identify, or otherwise provide this Confidential Information to any other person, firm, corporation, or other entity, including the general public, directly or indirectly. Upon the conclusion of Consultant services to t he City, Consultant agrees to return all the City’s property and confidential information in Consultant ’s custody, possession, or control to Company.
26. Entire Agreement . This Agreement, together with any other written document referred to or contemplated by it embody the entire Agreement and understanding between the Parties relating to the subject matter of it. The City Manager is authorized, in consultation with the City Attorney, to agree to non- material amendments to this Agreement. Neither this Agreement nor any of its provisions may be amended, modified, waived or discharged except in a writing signed by both Parties.
27. Notices. Any notices required or permitted under this Agreement shall be effective when delivered in person; and effective one (1) business day after delivery by facsimile transmission; and effective five (5) calendar days after mailing by U.S. Mail, postage prepaid and properly addressed as follows:
To Consultant: Elevate Public Affairs, LLC
10474 Santa Monica Boulevard, Suite 405
Los Angeles, California 90025
Attn: Becky Warren, Principal
( 323) 834-9987
( ) - fax.
To City: City of Compton
205 South Willowbrook Avenue
Compton, California 90220
Attn: City Manager
(310) 605-5585
(310) 761-1429 – fax.
In the event of any change of address, the moving party is obligated to notify the other party of the change of address in writing. Each party may amend, supplement and update the notice list to add, delete or replace any listed individuals; however, the amendment must be in writing.
30. Miscellaneous. No provision of this Agreement is to be interpreted for or against either party because that party or that party’s legal representative drafted such provision.
Professional Services Agreement – Elevate Public Affairs, LLC Public Information Official/Spokesperson Services
City Manager’s Office/Resolution No. ________
Should either party hereto, or any representative, successor or assign of either party hereto, resort to litigation to enforce the provisions of this Agreement, the party or Parties prevailing in such litigation shall be entitled, in addition to such other relief as may be granted, to recover its or their reasonable attorney’s fees and costs in such litigation from the party or Parties against whom enforcement is sought.
IN WITNESS WHEREOF, CONSULTANT has executed this Agreement, and the CITY, by its City Manager, who is authorized to do so, has executed this Agreement.
ELEVATE PUBLIC AFFAIRS, LLC
CONSULTANT
Dated: _______________ By ____________________________________ Becky Warren, Principal
CITY OF COMPTON
Approved by:
Dated: _______________ By _____________________________________ Willie A. Hopkins, Jr., City Manager
Approved as to form:
By _________________________________ Dated: ___________________ Eric Perrodin, City Attorney
ATTEST:
Dated: _________________ By _____________________________________ Vernell McDaniel, City Clerk
November 26, 2024
TO: MAYOR AND CITY COUNCIL MEMBERS
FROM: NEBRASKA JONES, GENERAL SERVICES DIRECTOR
SUBJECT: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON
AUTHORIZING THE CITY MANAGER TO ENTER INTO A
PROFESSIONAL SERVICE AGREEMENT AND ESTABLISH A
PURCHASE ORDER TO GEARY FLOORS, INC. FOR THE LUEDERS
PARK GYMNASIUM FLOOR REPAIR PROJECT ($36,000.00)
SUMMARY
Adoption of this resolution will authorize the City Manager to accept the bid and enter into a professional service agreement with Geary Floors, Inc. in the amount of Thirty Thousand Dollars and Zero Cents ($30,000.00) and authorize a twenty percent (20%) contingency in the amount of Six Thousand Dollars and Zero Cents ($6,000.00) for the Lueders Park gymnasium floor repair project.
BACKGROUND
The gymnasium floor at Lueders Park has sustained considerable wear and tear from regular use, including minor damages such as scratches and scuff marks, and more substantial issues, including areas with structural damage. These conditions impact the facility's safety, aesthetics, and functionality, widely used for sports, special events, and community gatherings.
Staff conducted an assessment and determined the following repairs were necessary:
Removal and installation of new maple flooring (Approx. 400 Sq. Ft.) Sanding Floors
Sealing Floors
Finishing Floors
Waterproofing Floor
Striping and Court Marking
Based on these needs, a bid process was initiated to secure qualified contractors to perform the repair work efficiently.
STATEMENT OF THE ISSUE
On September 25, 2024, staff initiated a formal bid process for the repair and restoration of the gymnasium floor at Lueders Park. The current floor required repairs to address safety concerns and restore it to a suitable standard for community use. This
3.3.3.3. Staff Report – Authorizing Professional Service Agreement Geary Floors, Inc. - $36,000.00
Lueders Park Gymnasium Floor Repair Project
November 26, 2024, Page 2
project aims to restore the gymnasium floor, add game lines, and incorporate the City logo onto the floors.
The Requests for Proposals (RFP) was advertised on the City website www.comptoncity.org/RFP, posted on Planet Bids, and printed in the Compton Bulletin on September 25, 2024, and October 2, 2024. On October 31, 2024, City staff received a total of four (4) bids as follows:
Company Cost
Geary Floors, Inc. $30,000.00
Coastal Sports Flooring $34,500.00
McWil Sports Surface $47,480.00
Pacific Flooring $75,000.00
On November 6, 2024, City staff reviewed the proposals and evaluated each in detail.
After thoroughly evaluating potential contractors, staff identified Geary Floors, Inc. as the lowest-cost option and most suitable candidate.
FISCAL IMPACT
Funds in the amount not to exceed Thirty-Six Thousand Dollars and Zero Cents ($36,000.00) are available in the FY 2024-2025 Budget account number 1004-600-000- 4300 (Capital Outlay).
RECOMMENDATION
Staff recommends that the City Council adopt the attached Resolution, accept the bid, and authorize the City Manager to enter into an agreement with Geary Floors, Inc. to repair the gymnasium floors at Lueders Park.
NEBRASKA JONES
GENERAL SERVICES DIRECTOR
APPROVED FOR FORWARDING
WILLIE A. HOPKINS, JR.
CITY MANAGER
RESOLUTION NO. ___________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON
AUTHORIZING THE CITY MANAGER TO ENTER INTO A PROFESSIONAL
SERVICE AGREEMENT AND ESTABLISH A PURCHASE ORDER TO GEARY FLOORS, INC. FOR THE LUEDERS PARK GYMNASIUM FLOOR REPAIR PROJECT ($36,000.00)
WHEREAS, the gymnasium floor at Lueders Park has sustained considerable wear and tear from regular use, including minor damages such as scratches and scuff marks, and more substantial issues, including areas with structural damage; and WHEREAS, staff conducted an assessment and determined that the gymnasium floors required repairs, such as sanding, sealing, finishing, waterproofing, and replacing floors with new maple flooring in approximately 400 square feet; and WHEREAS, September 25, 2024, staff initiated a formal bid process for the repair and restoration of the gymnasium floor at Lueders Park; and WHEREAS,on October 31, 2024, staff released a request for proposal which was advertised on the city’s website www.comptoncity.org/RFP, posted on Planet Bids, and printed in the Compton Bulletin on September 25, 2024, and October 2, 2024; and WHEREAS, on October 31, 2024, the City received a total of four (4) bids as follows:
Company Cost
Coastal Sports Flooring $34,500.00
Geary Floors $30,000.00
Pacific Floor $75,000.00
McWil Sports Surface $47,480.00
WHEREAS, on November 6, 2024, City staff reviewed the proposals and evaluated each in detail and identified Geary Floors, Inc. as the most cost-effective and appropriate candidate; and
WHEREAS, staff requests Mayor and Council authorization to accept the bid and authorize the City Manager to enter into an agreement with Geary Floors, Inc. in the amount not to exceed Thirty Thousand Dollars and Zero Cents ($30,000.00); and WHEREAS, to efficiently manage this project, staff requests an additional authorization for twenty percent (20%) contingency in the amount not to exceed Six Thousand Dollars and Zero Cents ($6,000.00); and
WHEREAS, the amount of Thirty-Six Thousand Dollars and Zero Cents ($36,000.00) are available in the FY 2024-2025 Budget account number 1004-600-000- 4300 (Capital Outlay); and
Account No. Fund Description Amount
1004-600-000-4300 Measure P Capital Outlay $30,000.00
1004-600-000-4300 Measure P Capital Outlay - Contingency $6,000.00 TOTAL $36,000.00
WHEREAS,staff recommends that the City Council authorize the attached Resolution to be adopted for the hiring of Geary Floors, Inc. to repair the gymnasium flooring at Lueders Park.
Resolution No. __________
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COMPTON DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. That the City Manager is hereby authorized to enter into a professional service agreement with Geary Floors, Inc. in the amount not to exceed Thirty Thousand Dollars and Zero Cents ($30,000.00) to repair the gymnasium flooring at Lueders Park.
SECTION 2. That the City Manager is authorized to establish a purchase order to Geary Floors, Inc. in the amount not to exceed Thirty Thousand Dollars and Zero Cents ($30,000.00) are hereby authorized for the Lueders Park Gymnasium Floor Repair Project. Funds are available in the FY 2024-2025 Budget account number 1004-600-000- 4300 (Capital Outlay).
SECTION 3. That the City Manager is authorized to establish a purchase order to Geary Floors, Inc. for a twenty percent (20%) contingency in the amount not to exceed Six Thousand Dollars and Zero Cents ($6,000.00). Funds are available in the FY 2024- 2025 Budget account number 1004-600-000-4300 (Capital Outlay).
SECTION 4.That a copy of this Resolution shall be filed in the offices of the City Manager, City Attorney, City Controller, City Clerk, and the General Services Department.
SECTION 5.That the Mayor shall sign and the City Clerk shall attest to the adoption of this Resolution.
ADOPTED this ____ day of _______________, 2024.
________________________________
MAYOR OF THE CITY OF COMPTON
ATTEST:
____________________________________
CITY CLERK OF THE CITY OF COMPTON
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES
CITY OF COMPTON: ss
I, Vernell McDaniel, City Clerk of the City of Compton, hereby certify that the foregoing Resolution was adopted by the City Council, signed by the Mayor and attested by the City Clerk at a regular meeting thereof held on the _______ day of ____________________, 2024.
That said Resolution was adopted by the following vote to wit:
Resolution No. __________
AYES: COUNCIL MEMBERS-
NOES: COUNCIL MEMBERS-
ABSENT: COUNCIL MEMBERS-
ABSTAIN: COUNCIL MEMBERS-
____________________________________
CITY CLERK OF THE CITY OF COMPTON
PROFESSIONAL SERVICES AGREEMENT
BETWEEN
CITY OF COMPTON
AND
GEARY FLOORS, INC.
This AGREEMENT is entered into by and between the CITY OF COMPTON, a municipal corporation of the State of California (hereinafter referred to as “CITY”) located at 205 South Willowbrook Avenue, Compton, California 90220 and GEARY FLOORS, INC. (hereinafter referred to as “CONTRACTOR”) located at 349 S. Marshall Avenue, El Cajon, CA 92020 (each a “Party” and collectively, the “Parties”).
RECITALS
WHEREAS, City has a need to employ the services of an experienced and professional contractor to repair the Lueders Park gymnasium flooring located at 1500 East Rosecrans Avenue, Compton, CA 90221; and
WHEREAS, the contractor warrants that it is specifically trained, experienced, competent, and has the resources to provide architectural, construction, and construction management services required by this Agreement; and
WHEREAS, By Resolution No. *****, adopted on the *** day of *** 2024, the City Council authorized the City Manager to enter into an agreement with Geary Floors, Inc.; and WHEREAS, the contractor is willing to render such professional services subject to the terms and conditions set forth in this Agreement.
NOW, THEREFORE, the Parties, for the consideration, terms and conditions herein described, mutually agree as follows:
AGREEMENT:
1. Services to be rendered by Contractor.It is the mutual understanding of the Parties that the contractor shall perform and be responsible for the repair of the gymnasium flooring at Lueders Park located at 1500 East Rosecrans Avenue, Compton, CA 90221.
Scope of Work:
1.2 Removal of Damaged Gymnasium Floor
Removal and proper disposal of damaged areas of the gymnasium floor. Preparation of the subfloor to ensure a smooth and level surface for the new installation.
1.3 Repair/Installation of New Flooring
Supply and installation of a new gymnasium flooring for the repair areas made of high- quality materials suitable for indoor sports activities. The flooring system repair should meet all necessary safety and performance standards. Contractors are expected to provide detailed specifications of the proposed flooring system repair, including material type, warranty, and expected lifespan. Install maple flooring.
Finishing of the floor shall include sanding, sealing, and finishing. It must be waterproof.
1.4 Striping and Court Marking
The contractor will be responsible for painting the necessary court marking, including basketball, volleyball, and other sports, as required.
The design should meet regulation standards for court dimensions and markings.
Professional Services Agreement – Geary Floors, Inc.
Lueders Park Gymnasium Repair Project
General Services/Resolution ****
1.5 City Logo Integration
The City logo shall be incorporated into the gym floor design. The City will provide the size, placement, and colors of the logo and should be included in the final design. Contractors must ensure high-quality printing and/or painting of the logo that will be durable and resistant to wear.
1.6 Guarantee
Guarantee all work against defects in material or quality of repaired area for a minimum of two (2) years.
The contractor acknowledges that in entering into this Agreement, the City is relying on the contractor’s special skills and experience to perform the services in accordance with generally accepted standards of professional practice. While performing the services, Contractor agrees to perform all the said services and furnish all the necessary materials at its own cost and expense necessary to complete said services in a manner consistent with that degree of care and skill ordinarily exercised by members of the same profession currently practicing under similar circumstances and to the reasonable satisfaction of the City.
Contractor services hereunder shall be performed in good, workmanlike and professional manner. Contractor shall be responsible for correcting and completing all errors and omissions related to the services provided by the Contractor for this Agreement at no additional cost to the City. “Errors” and “Omissions” for purposes of this paragraph are defined to mean a failure by the Contractor to meet the standards of its profession as set forth in the preceding paragraph. The acceptance of the services by City does not release Contractor from these obligations.
Contractor will be responsible for employing or engaging all persons necessary to perform the services. All of Contractor's staff will be qualified by training and experience to perform their assigned tasks. Contractor will give its personal attention to the fulfillment of the provisions of this Agreement by all of its employees and sub-contractors, if any, and will keep the services under its control. On request of City, if any employee or sub-contractor of Contractor fails or refuses to carry out the provisions of this Agreement or appears to be incompetent or to act in a disorderly or improper manner, Contractor will discharge said employee or sub-contractor from performing services pursuant to provisions of this Agreement.
Sean Geary, President of Contractor, shall be primarily responsible for representing Contractor in performance of this Agreement.
Nebraska Jones, Director of General Services, or his/her authorized designee, of the General Services Department, is hereby designated as the City’s Representative for this Project/Agreement.
2. Duration of Contract.The Contractor shall commence services requested by the City on issuance of Notification to Proceed from the City to Contractor to perform, in a diligent and professional manner, those services requested and required pursuant to this Agreement and work must be completed by February 1, 2024.
Contractor will generally adhere to any schedule set forth by the City provided, that City will grant reasonable extensions of time for the performance of the services occasioned by unusually lengthy governmental reviews of Contractor’s work product or other unavoidable delays occasioned by unforeseen circumstances; provided, further, that such unavoidable delay will not include strikes, lockouts, work stoppages, or other labor disturbances conducted by, or on behalf of, Contractor’s officers or employees.
Contractor acknowledges the importance to City of City’s schedule and agrees to put forth its best professional efforts to perform the services in a manner consistent with that schedule. City understands, however, that Contractor’s performance must be governed by sound practices. Contractor will work such Professional Services Agreement – Geary Floors, Inc.
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overtime or engage such personnel and equipment as necessary to maintain the schedule, without additional compensation.
3. Compensation.The method of payment for this Contract will be on a fee-for-service basis as specified within the Contractor’s “Quote/Proposal” which is incorporated herein. The total price paid to the Contractor will include compensation for all work, including travel, materials, supplies, vendor services, expenses, and subcontracted work in the amount of Thirty-Six Thousand Dollars and Zero Cents ($36,000.00). No additional compensation will be paid to the Contractor unless there is a change in the scope of the work or the scope of the project. In the instance of a change in the scope of work or scope of the project, adjustment to the total compensation will be negotiated between the Contractor and the City. Adjustment in the total compensation will not be effective until authorized and approved in writing by the Parties.
Invoices shall be submitted no later than 45 calendar days after the performance of work for which the Contractor is billing. Invoices shall detail the work performed on each task as applicable.
Invoices shall be delivered or mailed to the General Services Department at the following address: City of Compton, 205 South Willowbrook Avenue, Compton, California 90220.
In the event of termination, the Contractor shall be entitled to compensation for the undisputed reasonable value of services performed to the effective date of termination, including any non-cancellable obligations incurred prior to termination; provided, however, that the City may condition payment of such compensation upon the Contractor’s delivery to the City of any and all City property, documents, reports, records, materials and work product associated with the performance of this Agreement.
4. Ownership of Materials.All product produced by Contractor or its agents, employees, and subcontractors pursuant to this Agreement (the “Work Product”) is the property of City. In the event this Agreement is terminated, all Work Product produced by Contractor or its agents, employees and subcontractors pursuant to this Agreement will be delivered to City pursuant to the termination clause of this Agreement.
The Work Product may be used by City and its agents, employees, representatives, and assigns, in whole or in part, or in modified form, for all purposes City may deem advisable, without further employment of or payment of any compensation to Contractor; provided, however, that if this Agreement is terminated for any reason prior to completion of the Project and if under such circumstances City uses, or engages the services of and directs another contractor to use the Work Product, City agrees to hold Contractor harmless from any and all liability, costs, and expenses relative to claims arising out of matters and/or events which occur subsequent to the termination of this Agreement as a result of causes other than the fault or negligence of Contractor, or anyone for whose acts it is responsible, in preparation of the Work Product. Contractor will not be responsible for deficiencies attributable to modifications of the Work Product performed by others, or that arise from use of the Documents in connection with a project or site other than that shown in the Work Product.
5. Independent Contractor Status.Contractor, its officers, employees, subcontractors, agents and volunteers (collectively hereinafter the “Contractor”), is a wholly independent Contractor and not an officer, employee, subcontractor or agent of the City of Compton, and is not authorized to act on behalf of the City. Neither the City nor any of its officers, employees, agents or volunteers shall have any control over the conduct of the Contractor, except as expressly set forth in this Contract. Contractor expressly warrants that while engaged in carrying out and complying with any terms and conditions of this Contract that Contractor shall not at any time or in any manner, represent that Contractor is in any manner officers, employees, agents or volunteers, joint venture or partner of the City. Contractor shall obtain no rights to retirement, health care or any other benefit that accrue to City officials, officers, or employees. Contractor expressly waives any claim to such rights. Contractor will not be eligible for any employee benefits, nor will City make deductions from any amounts payable to Contractor of taxes or insurance. All payroll and employment taxes, insurance, and benefits shall be the sole responsibility of Contractor. Contractor retains the right to provide services for others during the term of this Contract.
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The payment(s) made to Contractor pursuant to the Agreement will be the full and complete compensation to which Contractor is entitled. City will not make any federal or state tax withholdings on behalf of Contractor or its agents, employees or subcontractors. City will not pay any workers' compensation insurance, retirement contributions or unemployment contributions on behalf of Contractor or its employees or subcontractors. Contractor agrees to indemnify and pay City within thirty (30) days for any tax, retirement contribution, social security, overtime payment, unemployment payment or workers' compensation payment which City may be required to make on behalf of Contractor or any agent, employee, or Contractor of Contractor for work done under this Agreement. At the City’s election, City may deduct the amounts paid pursuant to this Section, from any balance owing to Contractor.
6. Successors, Assignment and Delegation.City and the Contractor each binds themselves, their partners, successors, assigns and legal representatives to the other hereto and to partners, successors, assigns and legal representatives of such other party in respect to all covenants, agreements and obligations contained in this Agreement.
The expertise and experience of Contractor are material considerations for this Agreement.
Contractor shall not assign or transfer any interest in this Agreement or the performance of any of Contractor’s obligations under this Agreement without the prior written consent of the City. Any attempted assignment or transfer of any of Contractor’s rights, duties or obligations arising under this Agreement shall be null and void.
7. Nondiscriminatory Employment Practices.During the performance of this Agreement, the Contractor agrees not to discriminate against any employee or applicant for employment because of race, sex, creed, color, religion, age, sexual orientation, marital status, national origin, political affiliation, handicap or belief in accordance with requirements of City, State or Federal laws and regulations.
Contractor will take affirmative action to ensure that applicants are employed, and that employees are treated during employment without regard to their race, sex, creed, color, religion, age, sexual orientation, marital status, national origin, political affiliation, handicap or belief in accordance with requirements of City, State or Federal laws and regulations. Such actions shall include, but not be limited to the following:
employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layoffs or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The Contractor agrees to post in conspicuous places, available to employees, applicants and subcontractors for employment, notices setting forth the provisions of this non-discrimination clause.
In the event of the Contractor’s non-compliance with the non-discrimination clause of this Agreement, this Agreement may be immediately canceled, terminated or suspended in whole or in part.
8. Subcontracting.Contractor's services are unique and personal. Except as may be specified in Contractor’s Proposal and agreed to by the City, Contractor will not subcontract any portion of the services without prior written approval of City Manager or his/her designee. If Contractor subcontracts any of the services, Contractor will be fully responsible to City for the negligent acts, errors and omissions of Contractor's subcontractor and of the persons either directly or indirectly employed by the subcontractor, as Contractor is for the negligent acts and omissions of persons directly employed by Contractor. Nothing contained in this Agreement will create any contractual relationship between any subcontractor of Contractor and City. Contractor will be responsible for payment of subcontractors.
Contractor will bind every subcontractor and every subcontractor of a subcontractor by the terms of this Agreement applicable to Contractor's work unless specifically noted to the contrary in the subcontract and approved in writing by City.
9. Other Contractors.The City reserves the right to employ other Contractors in connection with the services.
10. Indemnification.Contractor shall indemnify and save harmless the City, its officials, officers, employees, agents and volunteers (collectively hereinafter the “City”), against any and all Professional Services Agreement – Geary Floors, Inc.
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damages to property or injuries to or death of any person or persons, including property and employees or agents of the City and shall indemnify and save the City from any and all liability and expense including reimbursement of reasonable defense costs and legal fees, and claims, demands, suits, actions or proceedings of any kind or nature, including Workers’ Compensation claims, of or by anyone whomsoever to the extent resulting from or arising out of the negligent, reckless or willful misconduct for the Contractor, its officers, employees, sub-contractors, subcontractors or agents in the performance of the duties undertaken by Contractor pursuant to this Agreement.
This indemnification and hold harmless obligation does not extend to claims arising out of the negligence or willful misconduct of the City.
11. Insurance.Without limiting the Contractor’s indemnification of the City, Contractor shall obtain and maintain, at its cost and expense, for the duration of the Agreement and any and all amendments, insurance against claims for injuries to persons or damage to property which may arise out of or in connection with performance of the services by Contractor or Contractor’s agents, representatives, employees or subcontractors. The insurance will be obtained from an insurance carrier admitted and authorized to do business in the State of California. Such evidence shall specifically identify this Agreement and shall contain express conditions that the City is to be given written notice at least thirty (30) days in advance of any termination or implementation of a reduction of limits or material change of insurance coverage as specified herein. Failure on the part of the Contractor to procure or maintain insurance shall constitute a material breach upon which the City may immediately terminate this Agreement. All insurance required hereunder shall be primary with respect to any insurance maintained by the City.
Coverage’s and Limits. Contractor will maintain the types of coverage’s and minimum limits indicated below, unless the Risk Manager or City Manager, in consultation with the City Attorney approves a lower amount. These minimum amounts of coverage will not constitute any limitations or cap on Contractor's indemnification obligations under this Agreement. City, its officers, agents, volunteers and employees make no representation that the limits of the insurance specified to be carried by Contractor pursuant to this Agreement are adequate to protect Contractor. The coverage will contain no special limitations on the scope of its protection to the below-designated insured’s except for Workers Compensation and errors and omissions insurance. Contractor will obtain occurrence coverage, excluding Professional Liability, which will be written as claims-made coverage. If Contractor believes that any required insurance coverage is inadequate, Contractor will obtain such additional insurance coverage, as Contractor deems adequate, at Contractor's sole expense.
11.1 Commercial General Liability Insurance. $1,000,000 combined single-limit per occurrence for bodily injury, personal injury and property damage. If the submitted policies contain aggregate limits, general aggregate limits will apply separately to the work under this Agreement or the general aggregate will be twice the required per occurrence limit.
11.2 Workers' Compensation and Employer's Liability. Workers' Compensation limits as required by the California Labor Code and Employer's Liability limits of $1,000,000 per accident for bodily injury. Workers' Compensation and Employer's Liability insurance will not be required if Contractor has no employees and provides, to City's satisfaction, a declaration stating this.
11.3 Professional Liability. Errors and omissions liability appropriate to Contractor’s profession with limits of not less than $1,000,000 per claim. The coverage shall also provide an extended two (2) year reporting period commencing upon termination or cancellation of this Agreement.
Endorsements. For Commercial General Liability Insurance, Contractor will ensure that the policies are endorsed to name the City of Compton and its respective elected and appointed officers, officials, employees, agents and volunteers as “additional insured’s” with respect to liability arising out of the activities of the Contractor. Any failure to comply with reporting provisions of the policies shall not Professional Services Agreement – Geary Floors, Inc.
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affect coverage provided to the City. Prior to City's execution of this Agreement, Contractor will furnish certificates of insurance and endorsements to City.
Waiver of Subrogation. The policies shall contain a waiver of subrogation for the benefit of City.
12. Permits and Licenses.Contractor, at its own expense, during the term of this Agreement, shall obtain and maintain all appropriate business and professional permits, licenses and certificates that may be required in connection with the performance of services by the Contractor. Upon execution of this Agreement, the Contractor shall show evidence of a business license permit in conformance with Section 9-1.2 of the Compton Municipal Code.
13. Maintenance of Records. Contractor will maintain complete and accurate records with respect to costs incurred under this Agreement. All records will be clearly identifiable. Contractor will allow a representative of City during normal business hours to examine, audit, and make transcripts or copies of records and any other documents created pursuant to this Agreement. Contractor will allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period of three (3) years, or longer if required by law, from the date of final payment under this Agreement.
14. Warranties.Contractor represents (i) that Contractor has no obligations, legal or otherwise, inconsistent with the terms of this Agreement or with Contractor’s undertaking this relationship with City, (ii) will exercise the professional standard of care in the performance of the services called for by this Agreement not violate any applicable law, rule or regulation or any proprietary or other right of any third party, (iii) that Contractor will not use in the performance of his responsibilities under this Agreement any confidential information or trade secrets of any other person or entity and (iv) that Contractor has not knowingly entered into or will enter into any agreement (whether oral or written) in conflict with this Agreement.
15. General Compliance with Laws. Contractor will keep fully informed of federal, state and local laws and ordinances and regulations which in any manner affect those employed by Contractor, or in any way affect the performance of the services by Contractor. Contractor will at all times observe and comply with these laws, ordinances, and regulations and will be responsible for the compliance of the services with all applicable laws, ordinances and regulations. In the event the Contractor encounters any conflict between such laws and ordinances, Contractor shall notify the City in writing and the parties agree to work cooperatively to resolve the conflict.
16. Termination.In the event of the Contractor's failure to prosecute, deliver, or perform the services, after giving written notice of default and ten (10) days to correct the same, then, in addition to any other remedies, City may terminate this Agreement for nonperformance by notifying Contractor in writing. City will make a determination of fact based upon the work product delivered to City and of the percentage of work that Contractor has performed which is usable and of worth to City in having the Agreement completed. Based upon that finding City will determine the final payment of the Agreement.
In the event City elects to terminate, City will have the right to immediate possession of all Work Product and work in progress prepared by Contractor, whether located at the project site, at Contractor's place of business, or at the offices of a sub-contractor.
The City’s obligation is payable only from funds appropriated for the purpose of this Agreement.
All funds for payments after the end of the current fiscal year are subject to the City’s legislative appropriation for this purpose. In the event this Agreement extends into succeeding fiscal year periods and the City Council does not allocate sufficient funds for the next succeeding fiscal year payments, this Agreement shall terminate immediately upon written notice from the City.
Either Party, upon tendering ten (10) calendar days written notice to the other Party, may terminate this Agreement for convenience. In this event and upon request of City, Contractor will assemble the work product without charge and put it in order for proper filing and closing and deliver it to City. Contractor will be paid for work performed to the termination date; however, the total will not exceed Professional Services Agreement – Geary Floors, Inc.
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the lump sum fee payable under this Agreement. City will make the final determination as to the portions of tasks completed and the compensation to be made.
17. Force Majeure.In the event that performance by either party is rendered impossible (permanently or temporarily) due to acts of war, acts of terrorism, fires, floods, epidemics, quarantine restrictions, or other natural occurrences, strikes, work slowdowns, lockouts (other than lockout by Contractor), or other similar acts to those described above or other causes beyond the reasonable control of such party, and without fault or negligence, said event shall excuse performance by such party, or in the case of temporary impossibility, shall excuse performance only for a period commensurate with the period of impossibility. Notwithstanding the foregoing, City shall have the right to terminate this Agreement upon any event that renders performance impossible. In such case, City shall be responsible for payment of compensation for the reasonable value of services rendered to the point at which this Agreement is terminated, but in no event to exceed the total lump sum fee payable under this Agreement.
18. Covenants Against Contingent Fees. Contractor warrants that Contractor has not employed or retained any company or person, other than a bona fide employee working for Contractor, to solicit or secure this Agreement, and that Contractor has not paid or agreed to pay any company or person, other than a bona fide employee, any fee, commission, percentage, brokerage fee, gift, or any other consideration contingent upon, or resulting from, the award or making of this Agreement. For breach or violation of this warranty, City will have the right to terminate this Agreement for nonperformance, or, in its discretion, to deduct from the Agreement price or consideration, or otherwise recover, the full amount of the fee, commission, percentage, brokerage fees, gift, or contingent fee.
19. Certifications.The Contractor, under penalty of perjury, certifies that, except as noted below, he/she/it or any other person associated therewith in the capacity of owner, partner, director, officer, manager:
.a Is not currently under suspension, debarment, voluntary exclusion, or determination of ineligibility by any Federal, State or local agency; and .b Has not been suspended, debarred, voluntarily excluded or determined ineligible by any Federal, State or local agency within the past 3 years; and .c Does not have a proposed debarment pending; and
.d Has not been indicted, convicted, or had a civil judgment rendered against him/her/it by a court of competent jurisdiction in any matter involving fraud or official misconduct in connection with obtaining, attempting to obtain, or performing a public (Federal, state or local) transaction or contract under a public transaction; violation of Federal or state antitrust statutes or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, or receiving stolen property within the past 3 years; and
.e Are not presently indicted or otherwise criminally or civilly charged by a governmental entity (Federal, State or local) with commission of any of the offenses enumerated in the preceding paragraph; and
.f Have not had one or more public transactions (Federal, State or local) terminated for cause or default within the past 3 years.
If there are any exceptions to this certification, insert the exceptions in the following space. [Supply exceptions on separate page]
For any exception noted above, indicate below to whom it applies, initiating agency, and dates of action.
[Attach separate page]
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These certifications are a material representation of fact upon which reliance was placed when this transaction was made or entered into. The above certifications are part of this Contract. Signing this Contract on the signature portion thereof shall also constitute signature of the above Certifications. ________________________________________ ___________________ Sean Geary, President Date
20. Jurisdiction, Venue and Governing Law. Any action at law or in equity brought by either of the Parties for the purpose of enforcing a right or rights provided for by this Agreement will be tried in a court of competent jurisdiction in the County of Los Angeles, State of California, and the Parties waive all provisions of law providing for a change of venue in these proceedings to any other county. This agreement will be governed by the laws of the State of California.
21. Testimony.Contractor will testify at City's request if litigation is brought against City in connection with Contractor's services under this agreement. Unless the action is brought by Contractor, or is based upon Contractor's actual or alleged negligence or other wrongdoing, City, upon prior written agreement with Contractor will compensate Contractor for time spent in preparation for testimony, testimony, and travel at Contractor's standard hourly rates at the time of actual testimony.
22. Waivers.The waiver by either Party of any breach or violation of any term, covenant, or condition of this Agreement or of any applicable law will not be deemed to be a waiver of such term, covenant, condition or law or of any subsequent breach or violation of same or of any other term, covenant, condition or law. The acceptance by either Party of any fee or other payment which may become due under this Agreement will not be deemed to be a waiver of any preceding breach or violation by the other Party of any term, covenant, or condition of this Agreement or any applicable law.
23. Authority.The individuals executing this Agreement and the instruments referenced in it on behalf of Contractor each represent and warrant that they have the legal power, right and actual authority to bind Contractor to the terms and conditions of this Agreement.
24. Severability.If any term, provision, condition or covenant of this Agreement or its application to any party or circumstances shall be held, to any extent, invalid or unenforceable, the remainder of this Agreement, or the application of the term, provision, condition or covenant to persons or circumstances other than those as to whom or which it is held invalid or unenforceable, shall not be affected, and shall be valid and enforceable to the fullest extent permitted by law.
25. Confidentiality. All documents, reports, information, data, and exhibits prepared or assembled by Contractor in connection with the performance of the Services pursuant to the Agreement are confidential until released by the City to the public, and the Contractor will not make any of these documents or information available to any individual or organization not employed by the Contractor or the City without the written consent of the City before any such release.
26. Amendments.This Agreement may be modified or amended only be written document executed by both Contractor and City’s City Manager and approved as to form by the City Attorney. Such document shall expressly state that it is intended by the parties to amend the terms and conditions of this Agreement.
27. Entire Agreement. This Agreement, together with any other written document referred to or contemplated by it embody the entire Agreement and understanding between the parties relating to the subject matter of it. The City Manager is authorized, in consultation with the City Attorney, to agree to non-material amendments to this Agreement. Neither this Agreement nor any of its provisions may be amended, modified, waived or discharged except in a writing signed by both parties.
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28. Notices.Any notices required or permitted under this Agreement shall be effective when delivered in person; and effective one (1) business day after delivery by facsimile transmission; and effective five (5) days after mailing by U.S. Mail, postage prepaid and properly addressed as follows:
To Contractor: Geary Floors, Inc.
349 South Marshall Avenue
El Cajon, CA 92020
Attn: Sean Geary, President
(619) 596-1537 Phone
(619) 596-2271 Fax
To City: City of Compton
205 South Willowbrook Avenue
Compton, California 90220
Attn: General Services Director
(310) 605-5519 | Email: [email protected]
In the event of any change of address, the moving party is obligated to notify the other party of the change of address in writing. Each party may amend, supplement and update the notice list to add, delete or replace any listed individuals; however, the amendment must be in writing.
30. Miscellaneous.No provision of this Agreement is to be interpreted for or against either party because that party or that party’s legal representative drafted such provision.
Should either party hereto, or any representative, successor or assign of either party hereto, resort to litigation to enforce the provisions of this Agreement, the party or parties prevailing in such litigation shall be entitled, in addition to such other relief as may be granted, to recover its or their reasonable attorney’s fees and costs in such litigation from the party or parties against whom enforcement is sought.
IN WITNESS WHEREOF, CONTRACTOR has executed this Agreement, and the CITY, by its City Manager, who is authorized to do so, has executed this Agreement.
GEARY FLOORS, INC.
CONTRACTOR
Dated: _______________ By _______________________________________ Sean Geary, CEO
CITY OF COMPTON
Approved by:
Dated: _______________ By ________________________________________ Nebraska Jones, General Services Director
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Dated: _______________ By ________________________________________ Willie A. Hopkins, City Manager
Approved as to form:
By _______________________________________ Dated: _________________ Eric J. Perrodin, City Attorney
ATTEST:
Dated: _______________ By __________________________________ Vernell McDaniel, City Clerk
November 26, 2024
TO: HONORABLE MAYOR AND COUNCIL MEMBERS
FROM: GRANTS MANAGEMENT DIVISION
SUBJECT: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON AMENDING THE 2024-2025 FISCAL YEAR BUDGET TO APPROPRIATE
FUNDS FROM THE CALIFORNIA DEPARTMENT OF JUSTICE DIVISION
OF OPERATIONS TO ENFORCE A LOCAL ORDINANCE OR STATE
LAW RELATED TO THE ILLEGAL SALE AND MARKETING OF
TOBACCO PRODUCTS TO MINORS ($192,729)
SUMMARY
Adoption of this resolution will authorize the City Manager to amend the 2024-2025 Fiscal Year budget to appropriate California Department of Justice (“DOJ”) Tobacco Grant funds in the amount of One Hundred Ninety-Two Thousand Seven Hundred Twenty-Nine Dollars ($192,729) to enforce a local ordinance or state law related to the illegal sale and marketing of tobacco products to minors.
BACKGROUND
The California Healthcare, Research and Prevention Tobacco Tax Act of 2016 (“Proposition 56”) provides local public agencies with funding to promote a healthier California by reducing illegal sales and marketing of cigarettes and tobacco products, including e-cigarettes, to minors. The Office of the Attorney General makes these annual funds available to local law enforcement agencies through the California Department of Justice Tobacco Grant Program.
The Tobacco Grant Program award process is highly competitive, and for the 2024-25 grant cycle, the Department received over $50 million in requests. As noted in the application materials, grant funding prioritized support for local retailer enforcement, including enforcement of flavored tobacco bans. Consequently, some awards were approved with modification to align with these funding priorities.
STATEMENT OF THE ISSUE
The City of Compton (“City”) submitted a Tobacco Grant application and was awarded in the amount of $192,729. On October 16, 2024, The City may use Grant funds to enforce a local ordinance or state law related to the illegal sale and marketing of tobacco products, including e-cigarettes, to minors and youth including, but not limited to:
Retailer compliance checks
4.4.4. Staff Report - Resolution Amend FY 2024-25 Budget Accept/Appropriate DOJ Tobacco Grant Funds
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Retailer training programs
Retailer and/or code officer educational activity
Tobacco retail license inspections
Preventing and deterring use of tobacco products
The City can use the Grant funds over 26 to 36-month period to facilitate the aforementioned list of activities.
The Community Improvement Director will provide oversight of this program by scheduling Code personnel to conduct unified operations. The Community Improvement Director will be collecting reports and submitting them bi-weekly to the Grants Compliance Manager for additional review. Reports will include names, positions, hours, location, duties, and outcomes pertaining to each operation. Payments will be rendered based on aforementioned hourly rates upon submission and approval on a monthly basis if agreed upon.
FISCAL IMPACT
The cost of the proposed activities, as well as Grant oversight will be paid directly from the Division of Operations Tobacco Grant in the amount of $192,729.
Staff is requesting that the Fiscal Year 2024-2025 budget be amended to appropriate the expenditures as follows:
Increase Revenues Appropriations in the following Accounts:
ACCOUNT NO. DESCRIPTION AMOUNT
2765-540-001-3569 Other State Grants $192,729
Increase Expenditures Appropriations in the following Accounts:
ACCOUNT NO. DESCRIPTION AMOUNT
2765-540-001-4101 Salaries $ 9,636
2765-540-001-4171
Overtime
Total
$ 183,093
$192,729
ALTERNATIVE
Staff does not have any alternatives to address this issue at this time.
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RECOMMENDATION
Staff recommends that Council adopt the attached Resolution amending the 2024-2025 Fiscal Year budget to appropriate Proposition 56 DOJ Tobacco Grant Program funds in the amount of $192,729.
TURMEL WOODS
GRANTS COMPLIANCE MANAGER
APPROVED FOR FORWARDING
WILLIE A. HOPKINS, JR.
CITY MANAGER
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON AMENDING THE 2024-2025 FISCAL YEAR BUDGET TO APPROPRIATE
FUNDS FROM THE CALIFORNIA DEPARTMENT OF JUSTICE DIVISION OF
OPERATIONS TO ENFORCE A LOCAL ORDINANCE OR STATE LAW
RELATED TO THE ILLEGAL SALE AND MARKETING OF TOBACCO
PRODUCTS TO MINORS ($192,729)
WHEREAS,) adoption of this resolution will authorize the City Manager to amend the 2024-2025 Fiscal Year budget to appropriate California Department of Justice (“DOJ”) Tobacco Grant funds in the amount of One Hundred Ninety-Two Thousand Seven Hundred Twenty-Nine Dollars ($192,729) to enforce a local ordinance or state law related to the illegal sale and marketing of tobacco products to minors; and WHEREAS, the Proposition 56 provides local public agencies with funding to promote a healthier California by reducing illegal sales and marketing of cigarettes and tobacco products, including e-cigarettes, to minors; and WHEREAS, the Office of the Attorney General has made funds available through California Department of Justice (“DOJ”) Tobacco Grant Program in the amount of $192,729 to the City of Compton (“City”) to enforce a local ordinance or state law related to the illegal sale of tobacco products to minors; and
WHEREAS, the City proposes a citywide retail enforcement and education initiative and the remainder $183,093 will be used for in-house Code Enforcement Officers overtime salaries (City Staff); and
WHEREAS, $9,636 will be used for administrative cost (5% of award) to administer compliance functions of the Grant; and
WHEREAS, the Tobacco Grant Funds must be utilized by June 30, 2028, which is approximately Three (3) years and six (6) months the city would be required to submit monthly reports to the grantor to ensure compliance of the awarded program; and RESOLUTION NO.
WHEREAS, these grant funds will have no net fiscal impact on the City’s general fund.
WHEREAS, the 2024-2025 Fiscal Year City budget needs to be amended to appropriate the Tobacco Grant funds awarded to the City by the DOJ.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COMPTON DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. That California Department of Justice Division of Operations Tobacco Grant funding in the amount of One Hundred Ninety-Two Thousand Seven Hundred Twenty-Nine Dollars ($192,729) to enforce a local ordinance or state law related to the illegal sale and marketing of Tobacco Products to minors is hereby accepted.
SECTION 2. That the Grants Management Division Fiscal Year 2024-2025 budget shall be amended as follows:
Increase Revenues Appropriations in the following Accounts:
ACCOUNT NO. DESCRIPTION AMOUNT
2765-540-001-3569 Other State Grants $192,729
SECTION 3. That a certified copy of this Resolution shall be filed in the offices of the City Manager, City Controller, City Clerk and the Grants Management Division.
SECTION 4. That the Mayor shall sign and the City Clerk shall attest to the adoption of this Resolution.
Increase Expenditures Appropriations in the following Accounts:
ACCOUNT NO. DESCRIPTION AMOUNT
2765-540-001-4101 Salaries $ 9,636
2765-540-001-4171 Overtime $183,093
Total $192,729
RESOLUTION NO.
ADOPTED this ____________ day of ____________, 2024.
________________________________
MAYOR OF THE CITY OF COMPTON
ATTEST:
____________________________________
CITY CLERK OF THE CITY OF COMPTON
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES
CITY OF COMPTON: ss
I, Vernell McDaniel, City Clerk of the City of Compton, do hereby certify that the foregoing Resolution was adopted by the City Council of the City of Compton, signed by the Mayor and attested by the City Clerk at a regular meeting thereof held on the _______ day of _______________, 2024.
That said Resolution was adopted by the following vote, to wit:
AYES: COUNCIL MEMBERS-
NOES: COUNCIL MEMBERS-
ABSENT: COUNCIL MEMBERS-
ABSTAIN: COUNCIL MEMBERS-
1 | P a g e
November 26, 2024
TO: MAYOR AND CITY COUNCIL MEMBERS
FROM: MUNICIPAL WATER DEPARTMENT
SUBJECT: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON AUTHORIZING THE CITY MANAGER TO AMEND THE CITY’S 2024-
2025 FISCAL YEAR BUDGET TO APPROPRIATE GRANT FUNDS IN
ACCOUNTS THAT WILL ASSIST THE CITY’S COMPLIANCE WITH
SENATE BILL 1383.
SUMMARY
Adoption of this resolution will authorize the City Manager to amend the City’s 2024-2025 Fiscal Year budget to appropriate grant funds in accounts that will assist the City’s compliance with Senate Bill 1383 (SB1383).
BACKGROUND
The City of Compton Municipal Water Department (Department) has approximately 93,000 residents and the City is responsible for implementing State of California Senate Bill 1383 (SB1383). SB1383 manages the recycling of organic material; i.e. green waste, food waste, food soiled paper, non-hazardous wood waste, landscape and pruning waste.
Cal Recycle adopts regulations that include requirements intended to meet the goal that not less than 20 percent of edible food is currently disposed of in landfills. Cal Recycle has established a grant funding program to assist jurisdictions in reaching the goal of organic waste disposal.
Senate Bill 1383 (SB1383), also states that jurisdictions must conduct comprehensive education and outreach programs on organic recycling, maintain the reduction of an organic waste implementation plan, prepare organic waste collection audits, and conduct performance-based source separation records.
In an effort to meet the goals set forth in Senate Bill 1383, the City Council approved Resolutions 26,019 (April 23, 2024) and 26,091 (July 23, 2024) in which grants funds were accepted for this cause, and the funds were appropriated to the following accounts:
Fiscal
Year
Resolution
Number
Date
Approved
Amount
Accepted
Account
Number
2023-2024 26,019 4/23/2024 $80,000 2789-850-WR3-4262
(Professional
Services)
2024-2025 26,091 7/23/2024 $250,756 2789-850-WR4-3569
(Cal Recycle Fund)
5.5.5.5. Staff Report Appropriating Grant Funds for Cal Recycle 2024 November 26, 2024
2 | P a g e
STATEMENT OF THE ISSUE
In order for the Department to continue to reach the goals set forth in SB1383, the City’s 2024-2025 Fiscal Year Budget must be amended and the Cal Recycle grant funds must be appropriated to the following accounts:
Fiscal
Year
Fund
Amount
From Account
Number
(A)
To Account
Number
(B)
2024-
2025
$71,212
(new amount)
($80,000-$8,788)
Fund Balance of
Fund #2789
2789-850-WR3-4262
(Professional Services)
$71,212
2024-
2025
$250,756 2789-850-WR4-
3569
2789-850—WR4-4262
(Professional Services)
$250,756
FISCAL IMPACT
Funding in the amount of Seventy-One Thousand Two Hundred Twelve Dollars ($71,212) is being requested to be available in the Water Department’s 2024-2025 Fiscal Year Budget in account 2789-850-WR3-4262 (Professional Services), and Two Hundred and Fifty Thousand Seven Hundred and Fifty-Six Dollars ($250,756) is being requested to be available in account 2789-850-WR4-4262 (Professional Services), via a budget amendment to increase expenditure appropriations from A to B.
RECOMMENDATION
Staff recommends that the City Council adopt this resolution.
JOSE GARFIAS, INTERIM GENERAL MANAGER
MUNICIPAL WATER DEPARTMENT
APPROVED FOR FORWARDING:
WILLIE A. HOPKINS
CITY MANGER
RESOLUTION NO. ___________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON AUTHORIZING THE CITY MANAGER TO AMEND THE CITY’S 2024-2025 FISCAL
YEAR BUDGET TO APPROPRIATE GRANT FUNDS IN ACCOUNTS THAT WILL ASSIST THE CITY’S COMPLIANCE WITH SENATE BILL 1383.
WHEREAS, The City of Compton Municipal Water Department (Department) has approximately 93,000 residents and the City is responsible for implementing State of California Senate Bill 1383 (SB1383); and
WHEREAS, SB1383 manages the recycling of organic material i.e. green waste, food waste, food soiled paper, non-hazardous wood waste, landscape and pruning waste; and WHEREAS, Cal Recycle adopts regulations that include requirements intended to meet the goal that not less than 20 percent of edible food is currently disposed of in landfills.
Cal Recycle has established a grant funding program to assist jurisdictions in reaching the goal of organic waste disposal; and
WHEREAS, in an effort to meet the goals set forth in Senate Bill 1383, the City Council approved Resolutions 26,019 (April 23, 2024) and 26,091 (July 23, 2024) in which grants funds were accepted for this cause, and the funds were appropriated to the following accounts:
Fiscal
Year
Resolution
Number
Date
Approved
Amount
Accepted
Account
Number
2023-2024 26,019 4/23/2024 $80,000 2789-850-WR3-4262
(Professional
Services)
2024-2025 26,091 7/23/2024 $250,756 2789-850-WR4-3569
(Cal Recycle Fund)
; and
WHEREAS, in order for the Department to continue to reach the goals of SB1383, the City’s 2024-2025 Fiscal Year Budget must be amended and the Cal Recycle grant funds must be appropriated to the following accounts:
Fiscal
Year
Fund
Amount
From Account
Number
(A)
To Account
Number
(B)
2024-
2025
$71,212
(new amount)
($80,000-$8,788)
Fund Balance of
Fund #2789
2789-850-WR3-4262
(Professional Services)
$71,212
2024-
2025
$250,756 2789-850-WR4-
3569
2789-850—WR4-4262
(Professional Services)
$250,756
; and
WHEREAS, funding in the amount of Seventy-One Thousand Two Hundred Twelve Dollars ($71,212) is being requested to be available in the Water Department’s 2024-2025 Fiscal Year Budget in account 2789-850-WR3-4262, and Two Hundred and Fifty Thousand Seven Hundred and Fifty-Six Dollars ($250,756) is requested to be available in account 2789-850-WR4-4262, via a budget amendment to increase expenditure appropriations from A to B.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COMPTON DOES HEREBY RESOLVE AS FOLLOWS:
Section 1.That the City Manager is hereby authorized to amend the City’s Fiscal Year 2024-2025 Fiscal Year Water Department Budget and appropriate grand funds as follows:
RESOLUTION NO. ________________
Fiscal
Year
Fund
Amount
From Account
Number
(A)
To Account
Number
(B)
2024-2025 $71,212 (new amount)
($80,000-$8,788)
Fund Balance of
Fund #2789
2789-850-WR3-4262
(Professional Services) $71,212
2024-2025 $250,756 2789-850-WR4-3569 2789-850—WR4-4262
(Professional Services) $250,756
Section 2.That copy of this Resolution shall be filed in the offices of the City Manager, City Controller, City Clerk, City Attorney and the Municipal Water Department.
Section 3.That the Mayor shall sign and the City Clerk shall attest to the adoption of this Resolution.
ADOPTED this _____________ day of ______________, 2024. ________________________________
MAYOR OF THE CITY OF COMPTON
ATTEST:
____________________________________
CITY CLERK OF THE CITY OF COMPTON
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss
CITY OF COMPTON )
I, Vernell McDaniel, City Clerk of the City of Compton, hereby certify that the foregoing Resolution was adopted by the City Council of the City of Compton, signed by the Mayor and attested by the City Clerk at a regular meeting thereof held on the __________ day of ____________________, 2024.
That said Resolution was adopted by the following vote, to wit:
RESOLUTION NO. ________________
AYES: COUNCIL MEMBERS-
NOES: COUNCIL MEMBERS-
ABSTAIN: COUNCIL MEMBERS-
ABSENT: COUNCIL MEMBERS-
____________________________________
CITY CLERK OF THE CITY OF COMPTON
November 26, 2024
TO: HONORABLE MAYOR AND COUNCIL MEMBERS
FROM: CITY MANAGER
SUBJECT: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON RESCINDING RESOLUTION NO. 25,677 AND AUTHORIZING THE CITY MANAGER TO ESTABLISH THE CITY’S PURCHASING CARD
ACCOUNTS THROUGH THE STATE OF CALIFORNIA’S CAL-CARD
PROGRAM TO BE UTILIZED SOLELY AND EXCLUSIVELY FOR
APPROVED CITY BUSINESS AND TO APPROVE THE CITY
PURCHASING CARD POLICY
SUMMARY
The attached resolution rescinds Resolution No. 25,677 which established a City of Compton corporate credit card account and authorizes the City Manager to establish the City’s purchasing card accounts through the State of California’s Cal-Card purchase card program to be utilized solely and exclusively for approved City business, and to approve the City Purchasing Card Policy.
BACKGROUND
On June 14, 2022, the City Council adopted Resolution No. 25,677 authorizing the City Manager to establish a corporate credit card account to conduct City business.
Per Resolution No. 25,677, the City Manager was authorized to reinstate a corporate credit card account, with a maximum credit limit of $50,000, to conduct City business that includes, but is not limited to, authorized travel expenses and emergency situations where the timely provision of equipment or supplies may be critical. During transition in the City Manager’s position, the corporate credit card account lapsed and was not reinstated by the Interim City Manager.
The City Manager is now seeking to implement the State of California’s Cal-Card purchase card program which provides commercial card services programs to state and publicly funded local agencies. Cal-Card is Visa purchase card provided by a State of California leveraged procurement agreement (LPA) and offered to participating state and local government agencies. Cal-Card provides a flexible payment mechanism for the acquisition of goods and services with flexible spending limits and merchant category codes (MCC) for each card. Cards are issued in the name of the cardholder and billed to the agency. All participating agencies must adhere to all procurement laws, regulations, policies, procedures and best practices as indicated in the Cal-Card Participating Addendum. Individual state and local agencies may establish additional internal policies, procedures and limitations for cardholders, which staff has prepared within the credit
6.6.6.6. Staff Report – Rescinding Resolution No. 25,677 and Authorizing City Manager To Establish Cal-Card Purchasing Card Program November 26, 2024, Page 2
policy for proper internal controls and measures. The Cal-Card program has all of the benefits of the Corporate credit card with the added overlay of public sector purchasing guidelines and customized restrictions for each cardholder. Further, the program and cardholder restrictions can be adjusted to address any issues as they arise. The City’s program administrator can manage restrictions, temporarily change credit limits and turn cards on and off as needed to address issues on a real-time basis, which is governed by the City Purchasing card policy (attached). The Cal-Card purchasing card program will initially be set up with a $25,000 credit limit for the City Manager since the Manager may need additional purchasing card authority due to a broader range of uses he may need to authorize on behalf of the City from time to time. For additional card holders, the limits will be $5,000 for Elected Officials, Assistant City Managers, and Department Directors.
For authorized Assistant Department Directors, the limit will be $2,500. For authorized Supervisors and the City Manager’s Executive Secretary, the limit will be $1,000.
Additional cardholders may be added to the program or cardholders removed from the program as warranted. All cardholders will receive training regarding proper utilization of the Cal-Card program prior to dissemination of the purchasing cards. Additionally, written acknowledgement of training attendance will be collected before cards are distributed to card-holders.
For elected officials, use of the purchasing card shall be restricted to travel and training use only. When the elected official is not attending a scheduled travel or training function, the Cal-Card shall be maintained in the possession of the designated Cal-Card Account Manager for safekeeping purposes.
The Cal-Card purchasing card program is not intended to replace any of the City’s purchasing policy or regulations, but rather augment the purchasing practices by creating efficiencies within the system. The Cal-Card program has robust internal controls in place that may go beyond what is required by the City. The City has the flexibility to tailor the program to the City’s needs. The Cal-Card program is widely used by state and local agencies throughout the state to create efficiencies in the procurement processes for common or small dollar purchasing transactions.
STATEMENT OF THE ISSUE
Currently, on numerous occasions, City employees have needed to use their personal credit cards to transact City business for a variety of purposes and then seek reimbursement. The Cal-Card purchasing card program will negate those problems. The use of the City’s Cal-Card purchasing card may not be limited to travel and emergency situations, but, may include from time to time, all aspects of City business activity wherein the use of a credit card is necessary to efficiently transact the City’s business. Further, to ensure that there will be no disruption in service, the Cal-Card is set up on auto pay.
Activity reconciliations are performed monthly. The prior resolution number 25677 authorized a purchasing authority and credit card single transaction limit of $25,000. It also established a monthly spending limit of $50,000. The Cal-Card program is being established with a monthly spending limit of $25,000.
Staff Report – Rescinding Resolution No. 25,677 and Authorizing City Manager To Establish Cal-Card Purchasing Card Program November 26, 2024, Page 2
FISCAL IMPACT
The fiscal impact resulting from the utilization of the Cal-Card purchasing card will depend upon how the card is used. The intended use is for authorized travel and small purchases to augment and create efficiencies within the purchasing procedures. A $25,000 monthly spending limit and individual card limits are set to limit utilization. All purchases made with the purchasing card are limited to preauthorized activity utilizing budgeted appropriations.
RECOMMENDATION
The City Manager’s Office recommends that City Council adopt the attached resolution rescinding Resolution No. 25,677 and authorizing the City Manager to do all things necessary to establish a purchasing card program through the State of California’s Cal- Card program to be utilized solely and exclusively for approved City business and approve the purchasing card policy.
WILLIE A. HOPKINS
CITY MANAGER
Attachments
RESOLUTION NO.___________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON RESCINDING RESOLUTION NO. 25,677 AND AUTHORIZING THE CITY MANAGER TO ESTABLISH THE CITY’S PURCHASING CARD
ACCOUNTS THROUGH THE STATE OF CALIFORNIA’S CAL-CARD
PROGRAM TO BE UTILIZED SOLELY AND EXCLUSIVELY FOR
APPROVED CITY BUSINESS AND TO APPROVE THE CITY
PURCHASING CARD POLICY
WHEREAS, on June 14, 2022, the City Council adopted Resolution No. 25,677 authorizing the City Manager to establish a corporate credit card account to conduct City business; and
WHEREAS, per Resolution no. 25,677, use of a corporate credit card account was authorized for the transaction of City Business. Specifically, the City Manager was authorized to use the City’s corporate credit card account, with a maximum credit limit of $50,000, to conduct City business which included, but was not limited to, authorized travel expenses and emergency situations when the timely provision of equipment or supplies may be critical; and
WHEREAS, the City Manager seeks to establish a purchasing card program utilizing the State of California’s Cal-Card program offered to state and publicly funded agencies through a leveraged purchase agreement. Under this proposed program, the single transaction limit established for the City Manager of $25,000, or lower limits for additional cardholders, would not require adoption by a separate resolution of the City Council; and
WHEREAS, the Cal-Card program provides a flexible payment mechanism for the acquisition of goods and services with flexible spending limits and merchant category codes for each card. Additionally, the program is established utilizing autopay and participating agencies must adhere to all procurement laws, regulations, policies, procedures and best practices as indicated in the Cal-Card Participating Addendum; and WHEREAS, the Cal-Card program is not intended to replace any of the City’s purchasing policies or regulations, but rather augment the purchasing practices by creating efficiencies within the system; and
WHEREAS, staff has deemed that an initial monthly spending limit of $25,000 is reasonable, based upon estimated usage at this time, which may be adjusted within current purchasing policy spending limits based upon need and clarifies that the spending limit was approved at $50,000 when presented previously in Resolution 25,677; and WHEREAS, the City Manager requires City Council authorization to re-establish the City’s corporate credit card account to be utilized solely and exclusively for approved City business.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COMPTON RESOLVES AS FOLLOWS:
SECTION 1. That resolution No. 25,677 is hereby rescinded.
SECTION 2. That the City Manager is hereby authorized to establish the City of Compton’s purchase card program through the State of California’s Cal-Card program and do all things necessary to implement the program which is to be utilized solely and exclusively for approved City business.
SECTION 3. That funds for these expenditures are limited to a maximum single purchase transaction of $25,000 and all procurement laws, regulations, policies and procedures as indicated in the Cal-Card Participating Addendum are to be adhered to, Resolution No. ___________
and, also, that an initial monthly spending limit of $25,000 is reasonable, based upon estimated usage at this time, which may be adjusted upward within current purchasing policy spending limits based upon need and clarifies that the spending limit was approved at $50,000 when presented to City Council previously.
SECTION 4. That expenditures made through the Cal-Card program will be made exclusively for approved City business, and only to the extent that an unencumbered appropriation exists within the funding source and, further, that funds for payments in future fiscal years will be budgeted as needed.
SECTION 5.The City Manager, or the City Manager’s designee, shall be recognized as the authorized Cal-Card Account Manager to administer the Cal-Card program account, and be responsible for ensuring payments are set up on auto pay, and made in accordance with the terms of the State of California’s leveraged procurement agreement and Cal-Card program guidelines.
SECTION 6. That for elected officials, use of the purchasing card shall be restricted to travel and training use only. When the elected official is not attending a scheduled travel or training function, the Cal-Card shall be maintained in the possession of the designated Cal-Card Account Manager for safekeeping purposes.
SECTION 7. That the City Manager shall submit credit card reports for receive and file consideration by City Council quarterly.
SECTION 8. Approve the City Purchasing Card Policy attached.
SECTION 9. That a certified copy of this resolution shall be filed in the offices of the City Manager, City Attorney, City Controller, and the City Clerk.
ADOPTED this _______ day of ___________, 2024.
________________________________
MAYOR OF THE CITY OF COMPTON
ATTEST:
____________________________________
CITY CLERK OF THE CITY OF COMPTON
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES
CITY OF COMPTON: ss
I, Vernell McDaniel, City Clerk of the City of Compton, hereby certify that the foregoing Resolution was adopted by the City Council, signed by the Mayor, and attested by the City Clerk at a regular meeting thereof held on the _______ day of _____________, 2024.
That said Resolution was adopted by the following vote, to wit:
AYES: COUNCIL MEMBERS-
Resolution No. ___________
NOES: COUNCIL MEMBERS-
ABSENT: COUNCIL MEMBERS-
ABSTAINS: COUNCIL MEMBERS-
____________________________________
CITY CLERK OF THE CITY OF COMPTON
CITY OF COMPTON
PURCHASING CARD POLICY
TABLE OF CONTENT Page Numbers
2 2
3 3
3 4
5 5
5 6
7 7
7 8
1. Purpose
2. General Policy
3. Provisions: Applicability
4. The Purchasing Card
5. Cardholder Spending Limits
6. Conditions for Use
7. Documentation, Reconciliation and Payments
8. Card Restrictions
9. Payment and Invoice Policy
10. Purchase Disputes
11. Return of Purchasing Card after Separation from
the City
12. Violation of Policy
13. Reporting
14. Cardholder Agreement
1 PURPOSE:
The purpose of this policy is to establish a uniform policy and procedure for the use of the City’s Cal-Card purchasing card to procure goods, trav el, and travel related expenses. The State of California’s Cal-Card purchase card program provides commercial card service programs to state and publicly funded local agencies. Cal-Card is Visa purchase card provided by a State of California leveraged procurement agreement (LPA) and offered to participating state and local government agencies. Cal-Card provides a flexible payment mechanism for the acquisition of goods and services with flexible spending limits and merchant category codes (MCC) for each card. Cards are issued in the name of the cardholder and billed to the agency.
All participating agencies must adhere to all procur ement laws, regulations, policies, procedures and best practices as indicated in the Cal-Card Participating Addendum. Individual state and local agencies may establish additional internal policies, procedures and limitations for cardholders. The Cal-Card program has all of the benefits of the Corporate credit car d with the added overlay of public sector purchasing guidelines and customized restrictions for each cardholder.
Further, the program and cardholder restrictions can be adjusted to address any i ssues as they arise. The City’s program administrator can manage restrictions, temporarily change credit limits and turn cards on and off as needed to address issues on a real-time basis. The Cal-Card purchasing card program is not intended to replace any of the City’s purchasing polic y or regulations, but rather augment the purchasing practices by creating efficiencies within the system. The Cal-Card program has r obust internal controls in place that may go beyond what is required by the City. The City has the flexibility to tailor the program to the City’s needs. The Cal-Card program is widely used by state and local agencies throughout the state to create efficiencies in the procurement processes for common or small dollar purchasing transactions.
To ensure that there will be no disruption in service, the Cal-Card program is set up on auto pay. This is the State of California’s preference and recommendation.
GENERAL POLICY:
The purpose of this policy is to establish limitations under which the City staff may use the City’s Cal-Card purchasing cards (the card) to purchase goods and services on behalf of the City and incur certain expenditures as authorized by the Cal-Card purchasing card Resolution No. 2_____. This policy is intended to ensure that:
A. The use of a purchasing card is accomplished in accordance with City’s Pu rchasing policies, and is not intended to replace any of the purchasing policies or regulations, but rather, augment these practices by creating efficiencies within the purchasing system.
B. Appropriate internal controls are established when using the purchasing card so that it is used only for authorized purposes. The establishment of the City's purchasing card program is to provide a convenient method of purchasing and to reduce the need for purchase orders or the use of petty cash for certain travel- related expenditures and common or small dollar purchasing transactions. Each City staff member assigned a card is personally responsible for ensuring that the purchasing card is used appropriately. 2 PROVISIONS:
Applicability:
This policy applies to City staff who have been authorized by the City Manager to maintain a purchasing card as approved by City Council under Resolution No. 2______. In all cases, Cit y staff involved in th e
purchasing card cycle (the purchasing card cycle includes, planning for purchases, che cking the budget,
checking adherence to other city rules and regulations, reconciliation, reporti ng, payment of bills, etc..) are
expected to exercise good judgment and follow all requirements of this policy in the type of purchases and
expenses incurred, and for the accountability and payment procedures in place, respectively, while the City staff member
maintains the purchasing card. If a sta ff mem
ber covered under this policy has questions
regarding the application of this policy, the affect ed employee may contact the City Manager, Assist ant City Manager, City Controller, or their respective designees.
For elected officials,
use of the purchasing card shall be restricted to travel and training use only. When the elected official is not attending a scheduled
travel or training function, the Cal-Card shall be maintained in the possession of the designated Cal-Card Account Manager for safekeeping purposes.
The Purchasing Card:
The City Manager is responsible for the overall ad ministration of the Cal-Card purchasing card program and shall approve the staff assig
ned use of a purchasing card. The card shall include the Em ployee’s name,
City's name, account number, and expiration date. No credit records, social security numbers, or other
personal data of the staff member shall be maintained by the purchasing card issuer, except those required by law or for identification purposes. Any purchasing card transaction m ay require a merchant to ensure
proper authorization. Thus, appropriate proof of identification must be presented upon request when utilizing the purchasing card.
Cardholder Spending Limits:
Within the existing constraints of
the purchasing polic
y and the City Manager's authorized spending limits,
the City Manager shall set the maximum
credit limit and dollar amount for each single purchase for each cardholder. The City Manager's "single purchase limit is $25,000." The monthly spending limit is currently
$25,000 but may increase based upon approved credit (within Purchasing Policy limitations) if needed for the efficien
t administration of the purchasing card program. The purchasing cards shall be used for City purchases only. The card may not be used for per
sonal purchases or expenses even if the em ployee
subsequently reimburses the City.
Notwithstanding the procedures and limits in this policy, all applicable budget limits, purchasing limits, and authorization requirements shall continue to a pply. Each cardholder is responsible for assuring that purchases are made within their stated purchasing card authority (a nd complying with all othe
r provisions
of this policy and the purchasing policy), regardless of the fact that the purchasing card may be accepted by a vendor or by the card issuer for a particular transaction.
The purchasing card that each cardholder receives
shall have the employee's name embossed on it and may
be used only by that employee. No other person is authorized to use the purchasing card. Any authorized or unauthorized use of the card is the cardholder’s responsibilit y, except in cases where the card is lost or
stolen. If a card is lost or stolen, a report shall be made within 1 business day to the City Manager, City
Controller or their designees (Exhibit B). A report to the purchasing card issuer shall be ma de immediately
by the cardholder and/or the City Controller or designee. 3 Conditions for Use:
A. Use of the purchasing card must meet the following conditions:
The cardholder shall obtain a copy of the credit card policy and shall be required to attend an orientation meeting conducted by the City Manager or designee, sign for the purchasing card, read and sign the purchasing card policy acknowledgement prior to receiving the purchasing card. The total of a single purchase may comprise of mu ltiple items but cannot exceed the authorized single purchase limit. Purchases are not to be split in order to stay within the single purchase limit. All items purchased over the counter to be paid for using the purchasing card must be immediately available. No back-ordering is allowed, unless it is for a period not to exceed two (2) months and does not cross fiscal years.
Items purchased by telephone order that will not be confirmed with a written order and be paid for using the purchasing card should be delivered by th e merchant within the 30-day billing cycle. If an order is on backorder, the reasons for the b ackorder should be documen ted together with the expected delivery date.
B. When placing a telephone order to be paid for using the purchasing card, the cardholder shall:
Confirm that the vendor agrees to charge the purch asing card when the shipment is made so that the receipt of the supplies may be certified on the City’s monthly account statement. Phone orders should be documented by the cardholder. All such documentation created or received, including emails or such other other documentation, is to be held until the monthly billing statement is received and then attached to the statement when it is submitted to the City Manager or designee for review and approval. The City Manager or designee must review the monthly billing statement to ensure that each telephone-initiated charge is properly supported and documented.
C. When placing an internet order to be paid for using the purchasing card, the cardholder shall:
• Confirm that the vendor agrees to charge the purchasing card when the shipment is made so that the receipt of supplies may be certified on the monthly account statement.
D. Special Approval Items: At the request of a cardholder, the City Manager may from time to time provide one-time approval before the cardholder purchases the following items with the purchasing card. Purchase of gasoline or oil for fleet vehicles.
Repair of fleet vehicles.
Purchase of clothing or footwear, except emergency situations when required for safety. Purchase of printing or copying services.
Payments for training/conference fees where travel is not necessary. Use during travel and lodging if the travel has been pre-approved by the City Manager or Council. 4 Documentation, Reconciliation and Payments:
Any time a purchase is made with the purchasing card, whether done over the counter, by telephone or via
the internet, a receipt or other similar document shal l be retained by the cardholder as proof o f purchase
and to provide back-up docum
entation, for the reconciliation of the purchase. The receipt or other similar document shall be used to verify the purchases shown on the m onthly purchasing card statement. The
receipt should be attached to the monthly statement and kept for the required period in comp liance with the
City of Compton’s record retention polic
y. If, for any reason, the cardholder does not have documentation of the transaction to provide with the statement, the cardholder should attach an explanation that includes a descriptio
n of the item, merchant name, date of purchase, amount of purchase, and reason for the lack of other supporting documentation.
Card Restrictions:
Certain types of transactions are prohibit
ed using t
he purchasing card. The following list sets forth a (partial) list of prohibited purchases with the purchasing card:
• Cash advances through bank tellers or automated teller machines. • Purchase of items stocked in the City Warehouse, (i.e., items kept in central stores or items for which the City has a centralized contract such as water supplies, paper, and postage), unless required in emergencies.
• Personal items even if the cardholder reimburses the City. • The City Manager may promulgate additional regulations that further restricts or prohibits use of the credit card for certain purchases.
As a general rule, if cardholders are unsure whether the transaction is prohibited, the purchasing card should not be used to m a
ke the purchase. Use of th e purchasing card for prohibited transactions may cause purchasing card privilege
s to be revoked and subj
ect the cardholder to discipline up to and including
termination.
Payment and Invoice Policy:
To ensure that there will be no disrupti
on in service, the Cal-Card program is set up on auto pay. This is the State of California’s preference and recommendati
on.
The City Manager or designee shall be responsib le for reviewing all cardholder’s purchasing card statements. The City Manager or designees shall resolve any questions on the purch ases, but each
cardholder is responsible for assigning account codes to each transaction and shall sign off on the statement indicating that each item has been reviewed and app
roved.
The purchasing card issuer will issue the "Statement of Account” based upon the same billing period each month. If applicable, the Statement of Account
may also be available on-line through an on-line
communication and reporting application provided by the purchasing card issuer. If available, the City
Manager or designee may provide each cardholder with appr opriate access to this online platform to review
transactions.
Reconciled and properly approved purchases made by the cardholder may have payment issued by the City Controller’s department, if not set up on auto pa
y. However, the purchasing card issuer mailing address, contact information, issuer W-9 form
receipt as well as the certification and account coding assigned by the cardholder has to be comple
ted for each transaction on the cardholder’s statement before the request for 5 payment is submitted to the City C ontroller’s depa rtment in compliance with the City Controller Department’s Account Payable policies.
If the cardholder is absent from work (whether for trav el or leave of absence) when the Statement o
f
Account is issued and is not available to review the Statement or to assign the account codes, it shall be the responsibility of the cardholder to ensure that their s uperior, or superior’s designee, review and approve each transacti
on on the monthly statement. The City
Manager or designee shall provide overall review and
approval of all transactions on all purchasing card statements. The Cit y Manager or City Manager’s
designee shall either certify or dispute the transaction s and then forward a copy of the signed statement to
the City Controller’s Department in accordance with the Accounts Pay able policy. The designee must be
of managerial level or above.
All the payment and invoice procedures described in this section shall be completed within one week of
when the purchasing card issuer’s (online) statement is available.
Purchase Disputes:
• If items purchased with the purchasing card are found defective or the repair or services faulty, the cardholder has the responsibility to return the item(s) to the merchant for replacement or to receive a credit on the purchase. If the merchant re fuses to replace or correct the faulty item, then the purchase of this item will be considered to be in dispute. • It is essential that the time frames and documentation requirements established by the purchasing card issuer be followed to protect the City’s rights in dispute. Dispute policies and procedures issued by the purchasing card issuer shall be obtained by the City Manager or designee for dissemination as appropriate to cardholders and the City Controller or designee. • In the event of a disputed transaction, the cardholder or City Controller or designee shall contact the purchasing card issuer at the phone number on the back of the card for guidance on a resolution. The cardholder and/or City Controller or designee shall also contact the Purchasing division, as appropriate, with the details of the dispute. Reference should be made to any contact with the vendor, names, telephone numbers, etc., that would be helpful in research of the dispute.
• The cardholder and/or City Controller or designee shall request and document any confirmation number provided by the purchasing card issuer’s representative that receives the details of the dispute. The cardholder and/or City Controller or designee shall include and note this confirmation number on their monthly statement, as well as provide it to the Purchasing division, if appropriate, at the time of dispute.
• If fraud is suspected against the cardholder’s pur chasing card, it is the responsibility of the cardholder to immediately report it to the purchasing card issuer by calling th e telephone number on the back of the purchasing card.
• The cardholder or designee shall be required to make a written report to the City Manager and City Controller or designee within 1 busin ess day by completing the Fraud Report Form (Exhibit C). The form shall include the detaile d information regarding the alleged fraud, the date it was discovered, and any other information that may be relevant to the incident. • The cardholder shall alert the City Manager and City Controller or their designees to place a hold or cancel the purchasing card until the investigation is completed. • Purchases/Charges against the purchasing card suspected to be fraudulent shall be assigned to a special General Ledger account until the investigation is completed. • When reviewing the statement, the City Controller or designee should assign to the fraudulent charges as well as to the credit or negative amount, the same budget-unit and account code, 6 which will cancel out when posted to the general ledger. Therefore, the net charge to the budget unit shall be zero, when the charge is reversed by the purchasing card issuer.
Return of Purchasing Card after Separation from City:
If the cardholder separates from the City, the purchasing car d shall be collected and destroyed by the City Manager, CalCard Administrator, Hu m
an Resource Director or their respective designees. The Cal Card Administrator is responsible for collecting and dest roying any purchasin g cards for employees that have
separated from service with the
City. The Cal Card Administrator or de signee shall contact the financial institution that issued the purchasing card and inform th em that the purchasing card has been destroyed, if
applicable.
Violations of Policy:
Any cardholder/em
ployee who vi
olates any provision of this administrative regulation may be subject to discipline, up to and including termination of empl oyment, in accordance with the existing disciplinary process for misconduct and m
isuse of City resources.
Should
an elected official misuse the purchasing card, the elected official’s purch asing card and purchasing
card privileges will
be cancelled and a report will be provided to City Council mem bers detailing the misuse
of City resources.
For any allegations of misuse of City resources that
may be subject to criminal penalties for the
cardholder/employee, a police report will be filed and the matter turned over to th e Police departm ent for
further investigation.
Reporting:
Per Resolution No.
2_____, Section 7, “the City
Manager shall submit credit card reports for receive and file consideration by City Council quarterly”.
• On a quarterly basis the City Manager or designee shall compile a report or set of statements from the purchasing card issuer. The set of statements may be used as the content of the credit card report.
• The City Manager or designee shall be responsible for reviewing the purchasing card report for accuracy and reasonableness, and shall make comments or notes on the report as the City Manager or designee deems appropriate.
• The report shall include all purchasing card transactions for the most recent quarter. • The report shall include a separate listing of any unpaid or disputed purchasing card transactions and the reasons the transactions remain unpaid and/or are disputed. • Per Resolution No. 2______, Section 5, “The C ity Manager, or the City Manager’s designee, shall be recognized as the authorized Cal-Card Account Manager to administer the Cal-Card program account, and be responsible for ensuring payments are set up on auto pay, and made in accordance with the terms of the State of California’s leveraged procurement agreement and Cal-Card program guidelines.
• The City Manager or designee shall place th e purchasing card report on the City Council’s agenda as a “receive and file” action item in accordance with the City’s existing Standard Operating Manual (SOM) procedures.
7 Exhibit A
CITY OF COMPTON
CARDHOLDER AGREEMENT
Please review terms stated below and sign per the enabling Resolution No. 25 :
I certify that I have received and read a copy of the City' Purchasing Card Policy and that I have received Purchasing Card Number Expiration Date: .
I agree to use this card only for actual and necessary business expenses incurred by me and only by me as the authorized car dholder in accordance with the City's Pu rchasing Card Policy and the City's Purchasing Policy. I unders tand and acknowledge that the use of the card may not be delegated to anyone other than me as the cardholder.
I understand that transactions are limited as indicated below:
Single Purchase Limit: $ Card Limit: $
I understand that the purchasing card may only be us ed for official City business. I will not use the purchasing card to make unauthorized, prohibited or personal purchases. I understand that any misuse of the purchasing card may be subject to discipline up to and includi ng termination and/or a violation of criminal law, in addition to restitution. I unde rstand that any purchase that is in excess of the purchasing card dollar limits, and/or transaction limits, or outside of the approved commodity or merchant categories is unauthorized, as is use of the purchasing card by anyone other than myself.
If, for any reason, I need to reimbu rse the City for charges made in error, I agree to reimburse the City within 30 days of such char ge. If no reimbursement has been made within 30 days, I authorize the City to deduct the charges from my payroll check on a pay-date of the City’s choosing.
I understand that I am responsible for the purch asing card's safekeeping at all times. I will immediately notify the purchasing card issuer, th e Purchasing Card Administrator in the City Manager's Office and the Human Res ources Department in the event th at my credit card is lost or stolen, or if I believe the credit card has been used in a fraudulent manner.
I will review the monthly statement immediately upon r eceipt (or online). If I dispute a charge, I will immediately seek to resolve the problem with the vendor and follow the applicable Dispute procedures as stated in the Policy.
I understand that the City has the unconditional right to can cel the purchasing card issued to me at any time. In the event that the City cancels the pur chasing card issued to me, or prior to separation from service, I will immediately cu t it in half and return it to th e Purchasing Card Administrator or designee. I understand that the cred it card is valid only while I am employed with the City of Compton and that if I terminate my employment, I must relinquish the credit card to the Purchasing Card Administrator or designee, or the Human Resources Department.
Cardholder's Name Department
Cardholder's Title Date
Cardholder's Signature
8 Exhibit B
LOST/STOLEN CREDIT CARD REPORT
Return report to: CITY MANAGER'S and/or CONTROLLER'S DEPT.
Submitted by: Date Submitted:
LOST/STOLEN CARD NUMBER:
DATE/TIME OF LOSS:
LOCATION OF LOSS:
PURCHASES MADE PRIOR TO LOSS:
1. 2.
3. OTHER INFORMATION:
9 EXHIBIT C:
Return to: CITY MANAGER and/or
CONTROLLER's DEPARTMENT
PURCHASING CARD FRAUD REPORT
Name of Cardholder
Date Report
Submitted
Name of Supervisor
Last 4 Digits of the purchasing
card Number
Was the vendor contacted?
Detailed explanation: (use another sheet if needed)
Cardholder Signature
Date
Controller's Use Only
Report Received
By
(Print Name & Sign) Date Date Report
Received:
Action Taken:
10 Page | 1
November 26, 2024
TO: MAYOR AND CITY COUNCIL MEMBERS
FROM: MUNICIPAL WATER DEPARTMENT
SUBJECT: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON
AUTHORIZING THE CITY MANAGER TO ACCEPT THE PROPOSAL,
ENTER INTO A CONTRACT SERVICES AGREEMENT AND ESTABLISH
A PURCHASE ORDER FOR R2BUILD (DBA R2B ENGINEERING) FOR
THE UPGRADE OF THE CITY’S CHLORINATION SYSTEM IN AN
AMOUNT NOT TO EXCEED TWO MILLION THREE HUNDRED AND
EIGHTY-NINE THOUSAND SIX HUNDRED DOLLARS ($2,389,600.)
SUMMARY
Adoption of this resolution will authorize the City Manager to accept the proposal, enter into a Professional Services Agreement and establish a purchase order for R2Build (dba R2B Engineering) for the upgrade of the City’s Chlorination System in the amount not to exceed Two Million Three Hundred and Eighty-Nine Thousand Six Hundred Dollars ($2,389,600.).
BACKGROUND
The addition of chlorine to the water supply began in the 1800’s and turned into a standard water treatment in 1904. Before the addition of chlorine to the water supply people battled a wide variety of ailments that were spread through the water, including typhoid, dysentery and cholera.
The City of Compton Municipal Water Department (CMWD) chlorinates the water supply to provide water free from contaminants (bacteria and viruses). This type of disinfection method has the ability to eradicate serious illnesses such as; cholera, hepatitis and giardiasis.
The addition of chlorine to the water supply also protects the City’s water wells, water pipes and storage tanks from the adverse effects of microorganism growth.
The City’s current Chlorination System has not had an extensive upgrade in over twenty (20) years.
STATEMENT OF THE ISSUE
The existing Chlorination System is aging, and its functionality is decreasing. The proposed upgrade to the System will positively impact the Compton Municipal Water Department’s goal to provide safe drinking water to our consumers.
7.7.7.7. Page | 2
The Chlorination System upgrade will include the following items: construction of concrete equipment pads, electrical wiring, plumbing, new equipment (pumps, valves and appurtenances) equipment, items listed in the Addendum, and any requirements necessary to execute the scope of services.
The City of Compton Municipal Water Department advertised a Request for Proposal (RFP) to qualified contractors on October 9, 2024 to seek the cost to upgrade the City’s Chlorination System. The following responses were received on November 6, 2024:
Vendor Amount Rating
R2Build (dba R2B Engineering) $2,389,600. 92.6
Doty Bros. Construction Company $4,800,000. 86.6
W.A. Rasic Construction Company $4,213,300. 88.3
City staff carefully reviewed all submitted proposals, telephoned references and scored by criteria listed (below) in the Request for Proposal:
A.Projected Costs and Payment Terms (Include Price form) B.Responsiveness to the requirements, terms, and conditions of the Request for Proposal
C.Competence, technical ability, specialized experience, and availability of key project members applicable to the needs of this project.
D.Quality of vendor/contractors related work experience and supported references E.Demonstrated understanding of the City’s interests and goals for this project F.Ability and available resources to perform the requested services within the timeline identified within this Proposal
R2Build was deemed the most successful and responsive bidder to the RFP – Design, Build and Procurement Services for the Chlorination System Upgrade according to the rating criteria.
R2Build has successfully completed numerous projects for large entities with varying scope and complexity. Their clientele includes, local cities, colleges, large municipalities, Water Districts, Sanitation Districts specifically; City of Commerce, City of Lynwood, City of Laguna Beach, City of Beverly Hills, City of Garden Grove, City of Huntington Park, City of Camarillo, Metropolitan Water District and others.
R2Build boasts that its team of high-quality individuals, possess vast amounts of project management experience and quality performance, all which is verified by their former clients.
FISCAL IMPACT
Note: In accordance with the Drinking Water State Revolving Fund (DWSRF) Eligibility Handbook, this expense is eligible for American Rescue Plan Act (ARPA) funding under the following provision:
Page | 3
Category 1 - Treatment
oDisinfection
Funding in the amount of Two Million Three Hundred Eighty-Nine Thousand Six Hundred Dollars ($2,389,600) is available in the Compton Municipal Water Department’s 2024- 2025 Fiscal Year budget in Account No. 2810-880-001-4266. A purchase order will be established for R2Build in the amount of Two Million Three Hundred Eighty-Nine Thousand Six Hundred Dollars ($2,389,600). Payments to the vendor shall be expended no later than December 31, 2026.
RECOMMENDATION
Staff recommends that Council adopt this resolution.
JOSE GARFIAS, INTERIM GENERAL MANAGER
GENERAL MANAGER
MUNICIPAL WATER DEPARTMENT
APPROVED FOR FORWARDING:
WILLIE A. HOPKINS
CITY MANGER
Page | 1
RESOLUTION NO. ___________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON
AUTHORIZING THE CITY MANAGER TO ACCEPT THE PROPOSAL, ENTER INTO
A CONTRACT SERVICES AGREEMENT AND ESTABLISH A PURCHASE
ORDER FOR R2BUILD (DBA R2B ENGINEERING) FOR THE UPGRADE OF THE CITY’S CHLORINATION SYSTEM IN AN AMOUNT NOT TO EXCEED TWO
MILLION THREE HUNDRED AND EIGHTY-NINE THOUSAND SIX HUNDRED DOLLARS ($2,389,600.)
WHEREAS, the addition of chlorine to the water supply began in the 1800’s and turned into a standard water treatment in 1904, before this method a wide variety of ailments were spread through the water, including typhoid, dysentery and cholera; and WHEREAS, the City of Compton Municipal Water Department (CMWD) chlorinates the water supply to provide water free from contaminants (bacteria and viruses); and
WHEREAS the addition of chlorine to the water supply also protects the City’s water wells, water pipes and storage tanks from the adverse effects of microorganism growth; and WHEREAS, the existing Chlorination System is aging, and its functionality is decreasing; and
WHEREAS, the proposed upgrade to the System will positively impact the CMWD’s goal to provide safe drinking water to our consumers; and WHEREAS, the Chlorination System upgrade will include the following items:
construction of concrete equipment pads, electrical wiring, plumbing, new equipment (pumps, valves and appurtenances) equipment, items listed in the Addendum, and any requirements necessary to execute the scope of services; and WHEREAS, the Compton Municipal Water Department advertised a Request for Proposal (RFP) to qualified vendors on October 9, 2024 to seek the cost of the upgrade to the City’s Chlorination System, and the following responses were received on November 6, 2024:
Vendor Amount Rating
R2Build (dba R2B Engineering) $2,389,600. 92.6
Doty Bros. Construction Company $4,800,000. 86.6
W.A. Rasic Construction Company $4,213,300. 88.3
WHEREAS, City staff carefully reviewed all submitted proposals, telephoned references and scored by criteria listed in the Request for Proposal and determined that R2Build was the most successful and responsive bidder; and
WHEREAS, in accordance with the Drinking Water State Revolving Fund Eligibility Handbook, this expense is eligible for American Rescue Plan Act (ARPA) funding under the following category:
Category 1 – Treatment
oDisinfection
WHEREAS, funding in the amount of Two Million Three Hundred Eighty-Nine Thousand Six Hundred Dollars ($2,389,600) is available in the Compton Municipal Water Department’s 2024-2025 Fiscal Year budget in Account No. 2810-880-001-4266; and WHEREAS, a purchase order will be established to R2Build (dba R2B Engineering) in the amount of Two Million Three Hundred Eighty-Nine Thousand Six Hundred Dollars ($2,389,600) and payments to the vendor shall be expended no later than December 31, 2026
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COMPTON DOES HEREBY RESOLVE AS FOLLOWS:
Page | 2
Resolution No.________________
Section 1. That the City Manager is hereby authorized to accept the proposal submitted by R2Build (dba R2B Engineering) from the Request for Proposal released on October 9, 2024 for the Design, Build and Procurement Services for the Chlorination System Upgrade.
Section 2. That the City Manager is hereby authorized to enter into a Contract Services Agreement for the Scope of Work outlined in the Request for Proposal including addendum(s).
Section 3. That the City Manager is hereby authorized to establish a purchase order for R2Build (dba (R2B Engineering) in the amount of Two Million Three Hundred Eighty-Nine Thousand Six Hundred Dollars ($2,389,600) from Account No. 2810-880-001-4266 for the Chlorination System Upgrade.
Section 4. That funds for this project are eligible for American Rescue Plan Act (ARPA) funding under the Drinking Water State Revolving Fund (DWSRF) Category 1 – Treatment (Disinfection).
Section 5.That copies of this Resolution shall be filed in the offices of the City Manager, City Controller, City Clerk, City Attorney and the Municipal Water Department.
Section 6.That the Mayor shall sign and the City Clerk shall attest to the adoption of this Resolution.
ADOPTED this _____________ day of ______________, 2024. ________________________________
MAYOR OF THE CITY OF COMPTON
ATTEST:
____________________________________
CITY CLERK OF THE CITY OF COMPTON
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss
CITY OF COMPTON )
Page | 3
RESOLUTION NO. ________________
I, Vernell McDaniel, City Clerk of the City of Compton, hereby certify that the foregoing Resolution was adopted by the City Council of the City of Compton, signed by the Mayor and attested by the City Clerk at a regular meeting thereof held on the __________ day of ____________________, 2024.
That said Resolution was adopted by the following vote, to wit:
AYES: COUNCIL MEMBERS-
NOES: COUNCIL MEMBERS-
ABSTAIN: COUNCIL MEMBERS-
ABSENT: COUNCIL MEMBERS-
____________________________________
CITY CLERK OF THE CITY OF COMPTON
CONTRACT SERVICES AGREEMENT
BETWEEN THE CITY OF COMPTON AND
R2BUILD (DBA R2B ENGINEERING)
This AGREEMENT is entered by and between the CITY OF COMPTON, a municipal corporation of the State of California (hereinafter referred to as “CITY”) located at 205 South Willowbrook Avenue, Compton, California 90220, and R2BUILD dba R2B Engineering (hereinafter referred to as “CONTRACTOR”), located at 23421 S. Pointe Drive, Suite 230, Laguna Hills CA 92653.
RECITALS
The City of Compton Municipal Water Department has determined that it requires services from a contractor to provide upgrade to the existing Chlorination System that will include design, build and procurement services.
The Contractor represents that it is fully qualified to perform such services by virtue of its experience and the training, education and expertise of its principals and employees.
Contractor further represents that it is willing to accept responsibility for performing such services in accordance with the terms and conditions set forth in this Agreement.
NOW, THEREFORE, for and in consideration of the performance by the Parties of the mutual covenants and conditions herein contained, the Parties hereto agree as follows:
AGREEMENT:
1. Services to be Rendered by Contractor.It is the mutual understanding of the parties that the Contractor shall perform and be responsible for providing and rendering the following services
SCOPE OF WORK:
Contractors will provide design, build and procurement services for the Chlorination System Upgrade and shall include ancillary and scope of work listed in Addendum:
A.Construction of concrete pads (Orenco or equivalent) for pre-fabricated buildings (9x9x11)
B.Construction of equipment pads
C.Project design drawings for each system
D.Procure and Install chlorination equipment, and associated pumps, valves and appurtenances (400-Gallon Assman Storage Tank or equivalent) (MD3 dual diaphragm chemical pump) (Reverse float indicator) and (halogen analyzer) E.Installation of electrical power, signal wiring and control panels F.Installation of minor plumbing for Chlorine Pump/Chemical Storage Tank/Analyzer G.Selective demolition of existing buildings/equipment
ADDENDUM TO SCOPE OF WORK INCLUDES:
Well 16:
Contract Services Agreement
R2Build (dba R2B Engineering)
Install new eyewash station provided by the city using existing plumbing.
Well 18:
Add new doors qty (3) to existing building; Chemical room and Electrical room.
Install new eyewash station provided by the City using existing plumbing, trench well pump condensation line to drain, replace existing fan in Chemical room and add new lower vent & fan and replace existing fan in Electrical room.
Well 19:
Add new doors qty (3) to existing building; Chemical room and Electrical room Install new eyewash station provided by the City using existing plumbing, replace existing fan in Electrical room, replace existing fan in Chemical room and add new lower vent & fan
Well 13:
Install new eyewash station provided by the City using existing plumbing Well 15:
Install new eyewash station provided by the City using existing plumbing Well 17:
Add new doors qty. (2) on Electrical Building (Motor room) and install new eyewash station provided by the City using existing plumbing
Well 11:
Install new eyewash station provided by the City using existing plumbing.
Contractor acknowledges that in entering into this Agreement the City is relying on Contractor's special skills and experience to do and perform the services in accordance with best standards of professional practice. While performing the Services, Contractor agrees to perform all the said work and furnish all the necessary materials at its own cost and expense necessary to complete said services in a manner consistent with that degree of care and skill ordinarily exercised by members of the same profession currently practicing under similar circumstances and to the reasonable satisfaction of the City.
Contractor services hereunder shall be performed in good, workmanlike and professional manner. Contractor shall be responsible for correcting and completing all errors and omissions related to the services provided by the Contractor for this Agreement at no additional cost to the City. “Errors” and “Omissions” for purposes of this paragraph are defined to mean a failure by the Contractor to meet the standards of its profession as set forth in the preceding paragraph. The acceptance of the services by City does not release Contractor from these obligations.
Contractor will be responsible for employing or engaging all persons necessary to perform the services. All of Contractor's staff will be qualified by training and experience to perform their assigned tasks. Contractor will give its personal attention to the fulfillment of the provisions of this Agreement by all of its employees and subcontractors, if any, and will keep the services under its control. On demand of City, if any employee or subcontractor of Contractor fails or refuses to carry out the provisions of this Agreement or appears to be incompetent or to act in a disorderly or improper manner, he or she will Contract Services Agreement
R2Build (dba R2B Engineering)
be discharged immediately from the services performed pursuant to this Agreement.
2.Duration of Contract.Contractor agrees to commence the services provided for herein upon written Notification to Proceed from the City and to continue in a diligent and professional manner, for the duration of the term of this agreement upon completion of the work notated in Scope of Work. The contract duration will end on or before December 31, 2026.
Contractor will generally adhere to the schedule set forth by the City provided, that City will grant reasonable extensions of time for the performance of the services occasioned by unusually lengthy governmental reviews of Contractor’s work product or other unavoidable delays occasioned by unforeseen circumstances; provided, further, that such unavoidable delay will not include strikes, lockouts, work stoppages, or other labor disturbances conducted by, or on behalf of, Contractor’s officers or employees.
Contractor acknowledges the importance to City of City’s project schedule and agrees to put forth its best professional efforts to perform the services in a manner consistent with that schedule. City understands, however, that Contractor’s performance must be governed by sound practices. Contractor will work such overtime or engage such personnel and equipment as necessary to maintain the schedule, without additional compensation.
3. Compensation.The method of payment for this Contract will be on a fixed basis as specified within Contractor’s Cost Proposals (Quotes/Estimates). The total price paid to the Contractor will include compensation for all work, including travel, materials, supplies, vendor services, expenses and subcontracted work. No additional compensation will be paid to the Contractor, unless there is a change in the scope of the work or the scope of the project. In the instance of a change in the scope of work or scope of the project, adjustment to the total compensation will be negotiated between the Contractor and the City. Adjustment in the total compensation will not be effective until authorized and approved in writing by the City.
Progress payments may be made in arrears based on the percentage of work and deliverables completed by the Contractor. If Contractor fails to submit the required deliverable items according to schedule or as required by the Agreement, except for those amounts that are due and not reasonably in dispute, the City shall have the right to delay payment and/or terminate this Agreement in accordance with the provisions noted herein.
Contractor shall be reimbursed within thirty (30) days, or as promptly as fiscal procedures may permit, upon receipt by the City of itemized invoices for services completed. Invoices shall be submitted no later than 45 calendar days after the performance of work for which the Contractor is billing. Invoices shall detail the work performed on each task as applicable. Invoices shall be delivered or mailed to the Director of Compton Municipal Water Department (CMWD) at the following address: City Contract Services Agreement
R2Build (dba R2B Engineering)
of Compton, 205 South Willowbrook Avenue, Compton, California 90220.
As full and complete compensation for performance of all the services performed by the Contractor pursuant to this Agreement, City shall pay, and Contractor agrees to accept, a not-to-exceed maximum sum of Two Million Three Hundred Eighty-Nine Thousand and Six Hundred Dollars ($2,389,600).
In the event of termination, the Contractor shall be entitled to compensation for the undisputed reasonable value of services performed to the effective date of termination, including any noncancelable obligations incurred prior to termination; provided, however, that the City may condition payment of such compensation upon the Contractor’s delivery to the City of any and all City property, documents, reports, records, materials and work product associated with the performance of this Agreement.
4. Ownership of Materials.All product produced by Contractor or its agents, employees, and subcontractors pursuant to this Agreement (the “Work Product”) is the property of City. In the event this Agreement is terminated, all Work Product produced by Contractor or its agents, employees and subcontractors pursuant to this Agreement will be delivered to City pursuant to the termination clause of this Agreement. [Contractor will have the right to make one (1) copy of the Work Product for Contractor’s records.] The Work Product may be used by City and its agents, employees, representatives, and assigns, in whole or in part, or in modified form, for all purposes City may deem advisable, without further employment of or payment of any compensation to Contractor; provided, however, that if this Agreement is terminated for any reason prior to completion of the Project and if under such circumstances City uses, or engages the services of and directs another Contractor to use, the Work Product, City agrees to hold Contractor harmless from any and all liability, costs, and expenses relative to claims arising out of matters and/or events which occur subsequent to the termination of this Agreement as a result of causes other than the fault or negligence of Contractor, or anyone for whose acts it is responsible, in preparation of the Work Product. Contractor will not be responsible for deficiencies solely attributable to modifications of the Work Product performed by others, or that arise from use of the Documents in connection with a project or site other than that shown in the Work Product.
5. Independent Contractor Status. Contractor, its officers, employees, subcontractors, subcontractors, agents and volunteers (collectively hereinafter the “Contractor”), will perform the services in Contractor's own way and pursuant to this Agreement as an independent contractor and in pursuit of Contractor's independent calling, and not as an employee of City. The persons used by Contractor to provide the services under this Agreement will not be considered employees of City for any purposes.
Neither the City nor any of its officers, employees, agents or volunteers shall have any control over the conduct of the Contractor, except as expressly set forth in this Agreement.
Contractor expressly warrants that while engaged in carrying out and complying with any Contract Services Agreement
R2Build (dba R2B Engineering)
terms and conditions of this Agreement that Contractor shall not at any time or in any manner, represent that Contractor is in any manner officers, employees, agents or volunteers of the City. Contractor shall obtain no rights to retirement, health care or any other benefit that accrue to City officials, officers, or employees. Contractor expressly waives any claim to such rights.
The payment made to Contractor pursuant to the Agreement will be the full and complete compensation to which Contractor is entitled. City will not make any federal or state tax withholdings on behalf of Contractor or its agents, employees or subcontractors.
City will not pay any workers' compensation insurance, retirement contributions or unemployment contributions on behalf of Contractor or its employees or subcontractors.
Contractor agrees to indemnify and pay City within thirty (30) days for any tax, retirement contribution, social security, overtime payment, unemployment payment or workers' compensation payment which City may be required to make on behalf of Contractor or any agent, employee, or contractor of Contractor for work done under this Agreement. At the City’s election, City may deduct the amounts paid pursuant to this Section, from any balance owing to Contractor.
6. Successors, Assignment and Delegation.City and the Contractor each binds themselves, their partners, successors, assigns and legal representatives to the other hereto and to partners, successors, assigns and legal representatives of such other party in respect to all covenants, agreements and obligations contained in this Agreement.
The expertise and experience of Contractor are material considerations for this Agreement. Contractor shall not assign or transfer any interest in this Agreement or the performance of any of Contractor’s obligations under this Agreement without the prior written consent of the City. Any attempted assignment or transfer of any of Contractor’s rights, duties or obligations arising under this Agreement shall be null and void.
7. Nondiscriminatory Employment Practices.During the performance of this Agreement, the Contractor agrees not to discriminate against any employee or applicant for employment because of race, sex, creed, color, religion, age, sexual orientation, marital status, national origin, political affiliation, handicap or belief in accordance with requirements of City, State or Federal laws and regulations. Contractor will take affirmative action to ensure that applicants are employed, and that employees are treated during employment without regard to their race, sex, creed, color, religion, age, sexual orientation, marital status, national origin, political affiliation, handicap or belief in accordance with requirements of City, State or Federal laws and regulations. Such actions shall include, but not be limited to the following: employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layoffs or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The Contractor agrees to post in conspicuous places, available to employees, applicants and subcontractors for employment, notices setting forth the Contract Services Agreement
R2Build (dba R2B Engineering)
provisions of this non-discrimination clause.
In the event of the Contractor’s non-compliance with the non-discrimination clause of this Agreement, this Agreement may be immediately canceled, terminated or suspended in whole or in part.
8. Subcontracting.Contractor's services are unique and personal. Except as may be specified in Contractor’s Proposal and agreed to by the City, Contractor will not subcontract any portion of the services without prior written approval of City Manager or his/her designee. If Contractor subcontracts any of the services, Contractor will be fully responsible to City for the acts, errors and omissions of Contractor's subcontractor and of the persons either directly or indirectly employed by the subcontractor, as Contractor is for the acts and omissions of persons directly employed by Contractor. Nothing contained in this Agreement will create any contractual relationship between any subcontractor of Contractor and City. Contractor will be responsible for payment of subcontractors. Contractor will bind every subcontractor and every subcontractor of a subcontractor by the terms of this Agreement applicable to Contractor's work unless specifically noted to the contrary in the subcontract and approved in writing by City.
9. Other Contractors.The City reserves the right to employ other Contractors in connection with the services.
10. Indemnification.Contractor shall indemnify and save harmless the City, its officials, officers, employees, agents and volunteers (collectively hereinafter the “City”), against any and all damages to property or injuries to or death of any person or persons, including property and employees or agents of the City and shall indemnify and save the City from any and all liability and expense including reimbursement of reasonable defense costs and legal fees, and claims, demands, suits, actions or proceedings of any kind or nature, including Workers’ Compensation claims, of or by anyone whomsoever to the extent resulting from or arising out of the negligent, reckless or willful misconduct for the Contractor, its officers, employees, subcontractors, subcontractors or agents in the performance of the duties undertaken by Contractor pursuant to this Agreement.
This indemnification and hold harmless obligation does not extend to claims arising out of the negligence or willful misconduct of the City.
11. Insurance.Without limiting the Contractor’s indemnification of the City, Contractor shall obtain and maintain, at its cost and expense, for the duration of the Agreement and any and all amendments, insurance against claims for injuries to persons or damage to property which may arise out of or in connection with performance of the services by Contractor or Contractor’s agents, representatives, employees or subcontractors. The insurance will be obtained from an insurance carrier admitted and authorized to do business in the State of California. Such evidence shall specifically identify this Agreement and shall contain express conditions that the City is to be given Contract Services Agreement
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written notice at least thirty (30) days in advance of any termination or implementation of a reduction of limits or material change of insurance coverage as specified herein.
Failure on the part of the Contractor to procure or maintain insurance shall constitute a material breach upon which the City may immediately terminate this Agreement. All insurance required hereunder shall be primary with respect to any insurance maintained by the City.
Coverages and Limits. Contractor will maintain the types of coverages and minimum limits indicated below, unless the Risk Manager or City Manager, in consultation with the City Attorney approves a lower amount. These minimum amounts of coverage will not constitute any limitations or cap on Contractor's indemnification obligations under this Agreement. City, its officers, agents, volunteers and employees make no representation that the limits of the insurance specified to be carried by Contractor pursuant to this Agreement are adequate to protect Contractor. The coverage will contain no special limitations on the scope of its protection to the below-indicated insureds except for Workers’ Compensation and errors and omissions insurance. Contractor will obtain occurrence coverage, excluding Professional Liability, which will be written as claims- made coverage. If Contractor believes that any required insurance coverage is inadequate, Contractor will obtain such additional insurance coverage, as Contractor deems adequate, at Contractor's sole expense.
11.1 Commercial General Liability Insurance. $1,000,000 combined single-limit per occurrence for bodily injury, personal injury and property damage. If the submitted policies contain aggregate limits, general aggregate limits will apply separately to the work under this Agreement or the general aggregate will be twice the required per occurrence limit.
11.2 Automobile Liability. $1,000,000 combined single-limit per accident for bodily injury and property damage.
11.3 Workers' Compensation and Employer's Liability. Workers' Compensation limits as required by the California Labor Code and Employer's Liability limits of $1,000,000 per accident for bodily injury. Workers' Compensation and Employer's Liability insurance will not be required if Contractor has no employees and provides, to City's satisfaction, a declaration stating this.
11.4 Professional Liability. Errors and omissions liability appropriate to Contractor’s profession with limits of not less than $1,000,000 per claim. The coverage shall also provide an extended two (2) year reporting period commencing upon termination or cancellation of this Agreement.
Endorsements. For Commercial General Liability Insurance and Automobile Liability Insurance, Contractor will ensure that the policies are endorsed to name the City of Compton and its respective elected and appointed officers, officials, employees, agents Contract Services Agreement
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and volunteers as “additional insureds” with respect to liability arising out of the activities of the Contractor. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to the City. Prior to City's execution of this Agreement, Contractor will furnish certificates of insurance and endorsements to City.
Waiver of Subrogation. The policies shall contain a waiver of subrogation for the benefit of City.
12. Permits and Licenses.Contractor, at its own expense, during the term of this Agreement, shall obtain and maintain all appropriate business and professional permits, licenses and certificates that may be required in connection with the performance of services by the Contractor. Upon execution of this Agreement, the Contractor shall show evidence of a business license permit in conformance with Section 9-1.2 of the Compton Municipal Code.
13. Maintenance of Records. Contractor will maintain complete and accurate records with respect to costs incurred under this Agreement. All records will be clearly identifiable. Contractor will allow a representative of City during normal business hours to examine, audit, and make transcripts or copies of records and any other documents created pursuant to this Agreement. Contractor shall maintain all records and will allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period and to the extent required by laws relating to audits of public agencies and their expenditures, from the date of final payment under this Agreement.
14. Warranties.Contractor represents and warrants (i) that Contractor has no obligations, legal or otherwise, inconsistent with the terms of this Agreement or with Contractor’s undertaking this relationship with City, (ii) that the performance of the services called for by this Agreement do not and will not violate any applicable law, rule or regulation or any proprietary or other right of any third party, (iii) that Contractor will not use in the performance of his responsibilities under this Agreement any confidential information or trade secrets of any other person or entity and (iv) that Contractor has not knowingly entered into or will enter into any agreement (whether oral or written) in conflict with this Agreement.
15. Federal and State Withholding Taxes.Contractor shall be responsible for paying when due all federal and state income withholding taxes for all earning under this Agreement. Contractor agrees to indemnify City for any claims, costs, losses, fees, penalties, interest, or damages suffered by City resulting from Contractor’s failure to comply with this provision.
16. General Compliance with Laws. Contractor will keep fully informed of federal, state and local laws and ordinances and regulations which in any manner affect those employed by Contractor, or in any way affect the performance of the services by Contract Services Agreement
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Contractor. Contractor will at all times observe and comply with these laws, ordinances, and regulations and will be responsible for the compliance of the services with all applicable laws, ordinances and regulations.
17. Termination.In the event of the Contractor's failure to prosecute, deliver, or perform the services, after giving written notice of default and two (2) days to correct the same, then, in addition to any other remedies, City may terminate this Agreement for nonperformance by notifying Contractor in writing. Contractor has five (5) business days to deliver any documents owned by City and all work in progress to City address contained in this Agreement. City will make a determination of fact based upon the work product delivered to City and of the percentage of work that Contractor has performed which is usable and of worth to City in having the Agreement completed. Based upon that finding City will determine the final payment of the Agreement. In the event City elects to terminate, City will have the right to immediate possession of all Work Product and work in progress prepared by Contractor, whether located at the project site, at Contractor's place of business, or at the offices of a subcontractor.
The City’s obligation is payable only from funds appropriated for the purpose of this Agreement. All funds for payments after the end of the current fiscal year are subject to the City’s legislative appropriation for this purpose. In the event this Agreement extends into succeeding fiscal year periods and the City Council does not allocate sufficient funds for the next succeeding fiscal year payments, this Agreement shall terminate immediately upon written notice from the City.
Either Party, upon tendering fifteen (15) calendar days written notice to the other Party, may terminate this Agreement for convenience. In this event and upon request of City, Contractor will assemble the work product without charge and put it in order for proper filing and closing and deliver it to City. Contractor will be paid for work performed to the termination date; however, the total will not exceed the lump sum fee payable under this Agreement. City will make the final determination as to the portions of tasks completed and the compensation to be made.
18. Covenants Against Contingent Fees. Contractor warrants that Contractor has not employed or retained any company or person, other than a bona fide employee working for Contractor, to solicit or secure this Agreement, and that Contractor has not paid or agreed to pay any company or person, other than a bona fide employee, any fee, commission, percentage, brokerage fee, gift, or any other consideration contingent upon, or resulting from, the award or making of this Agreement. For breach or violation of this warranty, City will have the right to terminate this Agreement for nonperformance, or, in its discretion, to deduct from the Agreement price or consideration, or otherwise recover, the full amount of the fee, commission, percentage, brokerage fees, gift, or contingent fee.
19. Claims and Lawsuits.By signing this Agreement, Contractor agrees that any Contract Services Agreement
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Agreement claim submitted to City must be asserted as part of the Agreement process as set forth in this Agreement and not in anticipation of litigation or in conjunction with litigation. Contractor acknowledges that if a false claim is submitted to City by Contractor, it may be considered fraud and Contractor may be subject to criminal prosecution.
Contractor acknowledges that California Government Code sections 12650 et seq., the False Claim Act, applies to this Agreement and provides for civil penalties where a person knowingly submits a false claim to a public entity. These provisions include false claims made with deliberate ignorance of the false information or in reckless disregard of the truth or falsity of information. If City seeks to recover penalties pursuant to the False Claims Act, it is entitled to recover its litigation costs, including attorney’s fees.
Contractor acknowledges that the filing of a false claim may subject Contractor to an administrative proceeding as a result of which Contractor may be prevented to act as a Contractor on any public work or improvement for a period of up to five (5) years.
Contractor acknowledges debarment by another jurisdiction is grounds for City to terminate this Agreement.
20. Certifications.The Contractor, under penalty of perjury, certifies that, except as noted below, he/she or any other person association therewith in the capacity of owner, partner, director, officer, manager;
Is not currently under supervision, voluntary exclusion, or determination of ineligibility by any Federal, State or local agency;
Has not been suspended, voluntarily excluded or determined ineligible by any Federal, State or local agency within the past 3 years; Has not been indicted, convicted or had a civil judgment rendered against he/she/it by a court of competent jurisdiction in any matter involving fraud or official misconduct in connection with obtaining , attempting to obtain, or performing a public (Federal, State or local) transaction or contract under a public transaction; violation of Federal or State antitrust statues or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, or receiving stolen property within the past 3 years. Are not presently indicted or otherwise criminally or civilly charged by a governmental entity (Federal, State or local) with commission of any of the offenses enumerated in the preceding paragraph; and
Have not had one or more public transactions (Federal, State or local) terminated for
cause or default within in the past 3 years.
If there are any exceptions to this certification, inset the exceptions in the following space. [Supply exceptions on separate page]
For any exception noted above, indicate below to whom it applies, initiating agency and dates of action.
Contract Services Agreement
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[Attach separate page]
This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction. The above certifications are part of this contract. Signing this agreement on the signature portion thereof shall also constitute signature of the above certifications.
__________________________________ Date: _________________ Massoud Jami
President
9050 Irvine Center Drive, Irvine, CA 92618
[email protected]
(949) 466-5543
21. Jurisdiction, Venue and Governing Law. Any action at law or in equity brought by either of the Parties for the purpose of enforcing a right or rights provided for by this Agreement will be tried in a court of competent jurisdiction in the County of Los Angeles, State of California, and the Parties waive all provisions of law providing for a change of venue in these proceedings to any other county. This agreement will be governed by the laws of the State of California.
22. Testimony.Contractor will testify at City's request if litigation is brought against City in connection with Contractor's services under this agreement. Unless the action is brought by Contractor, or is based upon Contractor's actual or alleged negligence or other wrongdoing, City, upon prior written agreement with Contractor will compensate Contractor for time spent in preparation for testimony, testimony, and travel at Contractor's standard hourly rates at the time of actual testimony.
23. Waivers.The waiver by either Party of any breach or violation of any term, covenant, or condition of this Agreement or of any applicable law will not be deemed to be a waiver of such term, covenant, condition or law or of any subsequent breach or violation of same or of any other term, covenant, condition or law. The acceptance by either Party of any fee or other payment which may become due under this Agreement will not be deemed to be a waiver of any preceding breach or violation by the other Party of any term, covenant, or condition of this Agreement or any applicable law.
24. Authority.The individuals executing this Agreement and the instruments referenced in it on behalf of Contractor each represent and warrant that they have the legal power, right and actual authority to bind Contractor to the terms and conditions of this Agreement.
Contract Services Agreement
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25. Severability.If any term, provision, condition or covenant of this Agreement or its application to any party or circumstances shall be held, to any extent, invalid or unenforceable, the remainder of this Agreement, or the application of the term, provision, condition or covenant to persons or circumstances other than those as to whom or which it is held invalid or unenforceable, shall not be affected, and shall be valid and enforceable to the fullest extent permitted by law.
26. Amendments.This Agreement may be modified or amended only be written document executed by both Contractor and City’s City Manager and approved as to form by the City Attorney. Such document shall expressly state that it is intended by the parties to amend the terms and conditions of this Agreement.
27. Confidentiality. All documents, reports, information, data, and exhibits prepared or assembled by Contractor in connection with the performance of the Services pursuant to the Agreement are confidential until released by the City to the public, and the Contractor will not make any of these documents or information available to any individual or organization not employed by the Contractor or the City without the written consent of the City before any such release.
28. Entire Agreement. This Agreement, together with any other written document referred to or contemplated by it embody the entire Agreement and understanding between the parties relating to the subject matter of it. The City Manager is authorized, in consultation with the City Attorney, to agree to non-material amendments to this Agreement. Neither this Agreement nor any of its provisions may be amended, modified, waived or discharged except in a writing signed by both parties.
29. Notices.Any notices required or permitted under this Agreement shall be effective when delivered in person; and effective one (1) business day after delivery by facsimile transmission; and effective five (5) days after mailing by U.S. Mail, postage prepaid and properly addressed as follows:
TO CONTRACTOR: ____________________________________
Massoud Jami
President
9050 Irvine Center Drive, Irvine, CA 92618
[email protected]
(949) 466-5543
TO CITY: CITY OF COMPTON
205 South Willowbrook Avenue
Compton, California 90220
Attn: General Manager, Water Department
(310) 605-5555
Contract Services Agreement
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With Copy to: CITY OF COMPTON
205 South Willowbrook Avenue
Compton, California 90220
Attn: City Manager
(310) 605-5585
30. Miscellaneous.No provision of this Agreement is to be interpreted for or against either party because that party or that party’s legal representative drafted such provision.
Should either party hereto, or any representative, successor or assign of either party hereto, resort to litigation to enforce the provisions of this Agreement, the party or parties prevailing in such litigation shall be entitled, in addition to such other relief as may be granted, to recover its or their reasonable attorney’s fees and costs in such litigation from the party or parties against whom enforcement is sought.
IN WITNESS WHEREOF, CONTRACTOR has executed this Agreement, and the CITY, by its City Manager, who is authorized to do so, has executed this Agreement.
TO EFFECTUATE THIS AGREEMENT, the Parties have caused their duly authorized representatives to execute this Agreement on the dates set forth below.
CONTRACTOR:
By_____________________________________ Dated: _____________ Massoud Jami, President
CITY OF COMPTON:
Approved by:
By __________________________________ Dated: ______________ Willie A. Hopkins, City Manager
Approved as to form:
By _________________________________ Dated: ______________ Eric J. Perrodin, City Attorney
Contract Services Agreement
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ATTEST:
Dated: ______________ By ______________________________ Vernell McDaniel, City Clerk
November 26, 2024
TO: HONORABLE MAYOR AND COUNCIL MEMBERS
FROM: CITY CONTROLLER
SUBJECT: A REQUEST TO RECEIVE AND FILE THE FISCAL YEAR 2021-2022 AUDITED FINANCIAL STATEMENTS, THE FISCAL YEAR 2021-2022 SINGLE AUDIT REPORT, AND THE FISCAL YEAR 2021-2022 UNAUDITED MANAGEMENT’S DISCUSSION AND ANALYSIS OF THE CITY OF COMPTON
SUMMARY
Adoption of this Resolution will formally acknowledge the receipt and filing of the Fiscal Year 2021-2022 Single Audit Report and the issuance of related financial statements.
BACKGROUND
Eadie & Payne LLP has audited the Fiscal Year 2021-2022 financial statements for the City of Compton as is required by the City to remain compliant with bond contractual requirements and granting agency requirements.
The audit consisted of the examination of the financial statements of the governmental activities, business related activities, use of each major fund, and the aggregate remaining fund information. The audit report includes the comprised related notes to the financial statements for the City of Compton as of June 30, 2022. The auditor performed tests of the City of Compton’s compliance with provisions of applicable laws, regulations, contracts, and agreements, including grant agreements. The audit additionally included services to report on supplementary information other than the Required Supplementary Information (RSI) that accompanies City of Compton’s financial statements. Services, such as comparing and reconciling accounting information and other records used to prepare the financial statements in accordance with the auditing standards generally accepted in the United States of America, were provided. Upon completion of the audit, Eadie & Payne LLP provided a written report and an opinion of the financial statements.
The objective of their audit was to provide an opinion as to whether the City’s financial statements are appropriately and accurately presented in conformity with U.S. Generally Accepted Accounting Principles (GAAP). The objective also includes reporting on the precedence of internal controls over financial reporting in accordance to the laws and regulations set by the Government Auditing Standards.
The City has prepared its Management’s Discussion and Analysis for Fiscal Year 2021- 2022 (the “MD&A”) to accompany the audited financial statements; however, the MD&A was not prepared and submitted to Eadie & Payne LLP in time to be included in its review of the City’s financial statements. The audit letter submitted by Eadie & Payne LLP states
8.8.8.8.8. Staff Report – Resolution to Receive and File the Fiscal Year 2021-2022 Audit November 26, 2024
2 that, while the missing MD&A is required by the Governmental Accounting Standards Board as an essential part of the financial reporting for placing the City’s basic financial statements in an appropriate operational, economic, or historical context, the opinion provided by Eadie & Payne LLP on the City’s basic financial statements is not affected by the missing information.
STATEMENT OF THE ISSUE
An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. As part of obtaining reasonable assurance about whether the financial statements are free of material misstatements, the auditor performed tests on the City of Compton’s compliance with provisions of applicable laws, regulations, contracts, and agreements, including grant agreements.
The Uniform Guidance requires that the auditor plan and perform the audit to obtain reasonable assurance about whether the City has complied with federal statutes, regulations, and the terms and conditions of federal awards applicable to major programs.
The purpose of these procedures was to express an opinion of the City of Compton’s compliance with requirements applicable to each of its major programs in their report on compliance issued pursuant to the Uniform Guidance.
Financial Highlights:
The assets and the deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources at the close of the Fiscal Year 2021- 2022 by approximately $18.8 million (net position), which is approximately $13.7 million higher than the previous year's net position. This is due primarily to increases in sales tax revenue of $6.0 million and increases in intergovernmental revenue not restricted to specific programs of $7.9 million. The unrestricted portion of net position as of June 30, 2022 increased by approximately $936 thousand to ($256,027,418) million accumulating more resources that may be used to meet the City’s ongoing obligations to citizens and creditors.
As of the close of the current fiscal year, the City’s Governmental Funds (e.g.
General Fund, Capital Projects Funds, Special Revenue Funds, etc.) reported combined fund balances of approximately $190.5 million, an increase of approximately $20.9 million from the prior year. Of this amount, $190.5 million, or approximately 100%, of total fund balances are reported as either “Nonspendable” ($9.1 million), "Assigned" ($141 thousand), “Committed” ($8.5 million), or “Restricted” ($172.8 million) fund balances. The increase in the City's governmental funds combined fund balances reported was primarily driven by increases in tax revenue (by approximately $5.1 million), increases in intergovernmental revenue (by approximately $6.9 million), increases in Licenses and Permit revenue (by approximately $800 thousand), decreases in expenditures in the Compton Housing Successor (by approximately $4.2 million), and by Staff Report – Resolution to Receive and File the Fiscal Year 2021-2022 Audit November 26, 2024
3 decreases in Capital Outlay costs in governmental funds outside of the Compton Housing Successor (by approximately $3.5 million).
The City’s net capital assets (land, buildings, equipment, infrastructure, less accumulated depreciation) were at $208.5 million as of June 30, 2022, decreasing by $253 thousand over the previous year due mainly to depreciation of capital assets.
The City’s net long-term liabilities decreased by $60.6 million to $405.6 million, primarily as a result of the decrease in both the Pension and OPEB liability of approximately $44.6 million and $8.9 million, respectively, for Fiscal Year 2021- 2022.
The City’s deferred inflow on resources increased by $74.9 million to $78.9 million, primarily as a result of $46.5 million in net differences between projected and actual earnings on pension plan investments, as well as $26.0 million from the difference between the expected and actual experience of the OPEB plan. The City’s financial position was elevated during Fiscal Year 2021-2022 with the removal of a “qualified” opinion from the City’s audited financial statements. Prior to Fiscal Year 2021-2022, the City maintained a “qualified” audit opinion on the allocation of cash across all funds. The City hired a consultant for preparation of a cost allocation plan which was implemented for FY 2021-2022. Due to this cost allocation study and the implementation of this plan, the City saw the removal of this “qualified” opinion. This is an escalation from the financial-position-elevation already attained during the prior Fiscal Year 2020-2021 audit, which saw the removal of two “qualified” audit opinions on the City’s FY 2020-2021 Single Audit and FY 2020-2021 audited financial statements regarding the City’s recorded balances of Capital Assets, as well as Section 8 grant reporting. Additionally, during the 2019-2020 Fiscal Year audit, two other “qualified” audit opinions were removed from the City’s audited financial statements regarding the City’s recorded balances of Unearned Revenue and Loan Receivable. As of the Fiscal Year ended June 30, 2022, there are no qualified audit opinions on the City’s audited financial statements.
As of June 30, 2021, Property Taxes reported on the Government-wide Statement of Activities have been adjusted (See Section II. Prior Period Adjustment of the Notes to the Financial Statements). As of June 30, 2021, Property Tax is adjusted from $60,768,875 to $50,979,946. After taking into consideration the prior period adjustment of reducing property tax revenue by $9.8 million for Fiscal Year 2020- 2021, property taxes increased by $4.7 million, or 9.1% during Fiscal Year 2021- 2022. It has been noted that an increase in assessed valuation from new non- residential construction (a 6.52% increase as shown in the Proposition 111 Analysis of the Office of the Assessor of Los Angeles County) has occurred during FY 2021-2022.
Staff Report – Resolution to Receive and File the Fiscal Year 2021-2022 Audit November 26, 2024
4 During FY 2021-2022, Sales Taxes increased by approximately $6.0 million or
20.8%. Though less growth compared to the previous fiscal year (growth of 33%), the City still saw an increase as a result of federal stimulus. Utility User Taxes increased by approximately $268 thousand, 2.2%, during FY 2021-2022, as a result of increased residential utility usage incurred from shut down orders in Los Angeles County during the Covid-19 pandemic. Intergovernmental Revenues not restricted to specific programs increased by $7.9 million or 964.7% during Fiscal Year 2021-2022, primarily due to an American Rescue Plan Act Grant received by the City. The first installment of the award was for $17,212,501.50 received on June 10, 2021. As of June 30, 2022, $8.1 million was spent or obligated towards qualifying expenditures. The second installment was received on September 26, 2022 for an amount of $17,212,501.50. Casino Tax Revenue increased significantly by approximately $812 thousand or
83.6% to $1.8 million during Fiscal Year 2021-2022. This is a result of the rebounding of gaming from the shut-down orders in Los Angeles County in years prior. The gaming industry saw record high growth as gaming continues its reopening and recovery.
Audit Findings:
In addition to the unqualified opinion on the audited financial statements, the City received an updated list of auditor findings. Auditor findings are deficiencies found by the auditors while conducting the audit in areas of internal control, accounting errors, and non- compliance with grant, legal, or contractual requirements.
Corrective Action Plan:
The City Controller and the City Manager have provided responses as well as a corrective action plan to the auditor to address the findings. In order for the City to overcome these findings the City Controller’s Department is currently working with the City Manager’s Department to do the following:
Implement new policies and procedures,
Fiscal Sustainability Plan implementation
Fee Study completion and implementation
Implement new financial accounting software and to program reports where needed
Provide Training to staff
Staff Report – Resolution to Receive and File the Fiscal Year 2021-2022 Audit November 26, 2024
5 Implementing the corrective action plan provided to the auditors, as well as the steps described above will remove audit findings so that the City can operate more efficiently and effectively, obtain more opportunities for outside financing, and become a model for other cities to follow. The audit findings signify that some existing City practices allow for the opportunity for the misappropriation of City assets, as well as the possibility of losing granting opportunities.
FISCAL IMPACT
The impact of completing the Fiscal Year 2021-2022 Audit and releasing the Fiscal Year 2021-2022 Audited Financial Statements as well as the FY 2022 Single Audit Report by the City’s auditors allows the City to remain in compliance with grant and contractual requirements. Adoption will also greatly assist with removing the City from the State of California Auditor Department’s list of cities with the greatest fiscal risk in the State of California.
RECOMMENDATION
It is the recommendation of staff that the City Council receive and file the attached set of Audited Financial Statements for Fiscal Year 2021-2022, the Single Audit Report for Fiscal Year 2021-2022, and the MD&A for Fiscal Year 2021-2022.
SHARON RAHBAN NAVIZADEH
CITY CONTROLLER
APPROVED FOR FORWARDING:
Willie A. Hopkins Jr.
RESOLUTION NO. ___________
A REQUEST TO RECEIVE AND FILE THE FISCAL YEAR 2021-2022 AUDITED FINANCIAL STATEMENTS, THE FISCAL YEAR 2021-2022 SINGLE AUDIT REPORT, AND THE FISCAL YEAR 2021-2022 UNAUDITED
MANAGEMENT’S DISCUSSION AND ANALYSIS OF THE CITY OF
COMPTON
WHEREAS, adoption of this Resolution will formally acknowledge the receipt and filing of the Fiscal Year 2021-2022 Single Audit Report and the issuance of related financial statements; and
WHEREAS, the audit consisted of the examination of the financial statements of the governmental activities, business related activities, use of each major fund, and the aggregate remaining fund information. The audit report includes the comprised related notes to the financial statements for the City of Compton as of June 30, 2022. The auditor performed tests of the City of Compton’s compliance with provisions of applicable laws, regulations, contracts, and agreements, including grant agreements. The audit additionally included services to report on supplementary information other than RSI that accompanies City of Compton’s financial statements. Services, such as comparing and reconciling accounting information and other records used to prepare the financial statements in accordance with the auditing standards generally accepted in the United States of America, were provided. Upon completion of the audit, Eadie & Payne LLP provided a written report and an opinion of the financial statements.
WHEREAS, the objective of the audit was to provide an opinion as to whether the City’s financial statements are appropriately and accurately presented in conformity with U.S.
Generally Accepted Accounting Principles (GAAP). The objective also includes reporting on the precedence of internal controls over financial reporting in accordance to the laws and regulations set by the Government Auditing Standards.
WHEREAS, the City has prepared its Management’s Discussion and Analysis for Fiscal Year 2021-2022 (the “MD&A”) to accompany the audited financial statements; however, the MD&A was not prepared and submitted to Eadie & Payne LLP in time to be included in its review of the City’s financial statements. The audit letter submitted by Eadie & Payne LLP states that, while the missing MD&A is required by the Governmental Accounting Standards Board as an essential part of the financial reporting for placing the City’s basic financial statements in an appropriate operational, economic, or historical context, the opinion provided by Eadie & Payne LLP on the City’s basic financial statements is not affected by the missing information.
WHEREAS, an audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; therefore, their audit involved judgment about the number of transactions to be examined and the areas to be tested. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
WHEREAS, an audit is not designed to provide assurance on internal control or to identify significant deficiencies or material weaknesses. However, during the audit, the auditor communicated to management and those charged with governance internal control related matters that are required to be communicated under AICPA professional standards, Government Auditing Standards, and the Uniform Guidance.
WHEREAS, as part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, the auditor performed tests of City of Compton’s compliance with provisions of applicable laws, regulations, contracts, and agreements, including grant agreements. However, the objective of those procedures was not to provide an opinion on overall compliance and they did not express such an opinion in the City’s report on compliance issued pursuant to Government Auditing Standards.
RESOLUTION NO. ____________
PAGE 2
2 WHEREAS, the Uniform Guidance requires that the auditor also plan and perform the audit to obtain reasonable assurance about whether the City has complied with federal statutes, regulations, and the terms and conditions of federal awards applicable to major programs. Their procedures consisted of tests of transactions and other applicable procedures described in the OMB Compliance Supplement for the types of compliance requirements that could have a direct and material effect on each of City of Compton’s major programs. The purpose of these procedures was to express an opinion on City of Compton’s compliance with requirements applicable to each of its major programs in their report on compliance issued pursuant to the Uniform Guidance.
WHEREAS, the auditors provided an “unqualified” opinion on the financial statements.
WHEREAS, a qualified opinion on the prior financial statements did change to an unqualified opinion in the FY2021-2022 Audit when prior matters were rectified. The City’s Accounting Division performed the accounting research and work necessary to correct these matters.
WHEREAS, in addition to the unqualified opinion on the audited financial statements, the City received an updated list of auditor findings. Auditor findings are deficiencies found by the auditors while conducting the audit in areas of internal control, accounting errors, and non-compliance with grant or contractual requirements.
WHEREAS, the City Controller and the City Manager have provided responses as well as a corrective action plan to the auditor to address the findings. In order for the City to overcome these findings the City Controller’s Department is currently working with the City Manager’s Department to do the following:
Implement new policies and procedures,
Fiscal Sustainability Plan implementation
Fee Study completion and implementation
Implement new financial accounting software and to program reports where needed Provide Training to staff
WHEREAS, implementing the corrective action plan provided to the auditors, as well as the steps described above will remove audit findings so that the City can operate more efficiently and effectively, obtain more opportunities for outside financing, and become a model for other cities to follow. The audit findings signify that some existing City practices allow for the opportunity for the misappropriation of City assets, as well as the possibility of losing granting opportunities.
WHEREAS, the impact of completing the Fiscal Year 2021-2022 Audit and releasing the Fiscal Year 2021-2022 Audited Financial Statements as well as the Fiscal Year 2021-2022 Single Audit Report by the City’s auditors allows the City to remain in compliance with grant and contractual requirements. Adoption will also greatly assist with removing the City from the State of California Auditor Department’s list of cities with the greatest fiscal risk in the State of California.
WHEREAS, it is the recommendation of staff that the City Council adopt this Resolution to receive and file the attached set of Audited Financial Statements for Fiscal Year 2021- 2022, and the Single Audit Report for Fiscal Year 2021-2022.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COMPTON DOES HEREBY RESOLVE AS FOLLOWS:
Section 1. Receive and File the Fiscal Year 2021-2022 Audited Financial Statements, Fiscal Year 2021-2022 Single Audit, and the unaudited MD&A.
RESOLUTION NO. ____________
PAGE 3
3 Section 2. That a copy of this Resolution shall be filed in the offices of the City Clerk, City Attorney, City Manager, and City Controller.
Section 3.That the Mayor shall sign and the City Clerk shall attest to the adoption of this Resolution.
ADOPTED this ____________ day of _____________, 2024.
________________________________
MAYOR OF THE CITY OF COMPTON
ATTEST:
________________________________
CLERK OF THE CITY OF COMPTON
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss
CITY OF COMPTON )
I, Vernell McDaniel, City Clerk of the City of Compton, hereby certify that the foregoing Resolution was adopted by the City Council of the City of Compton, signed by the Mayor and attested by the City Clerk at a regular meeting thereof held on this ___________ day of ________________, 2024.
That said Resolution was adopted by the following vote, to wit:
AYES: COUNCILMEMBERS -
NOES: COUNCILMEMBERS -
ABSTAIN: COUNCILMEMBERS -
ABSENT: COUNCILMEMBERS -
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CITY CLERK OF THE CITY OF COMPTON